H. Rept. 109-447 - 109th Congress (2005-2006)

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House Report 109-447 - SECURITY AND ACCOUNTABILITY FOR EVERY PORT ACT

[House Report 109-447]
[From the U.S. Government Publishing Office]



109th Congress                                            Rept. 109-447
                        HOUSE OF REPRESENTATIVES
 2d Session                                                      Part 1

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



 
             SECURITY AND ACCOUNTABILITY FOR EVERY PORT ACT

                                _______
                                

                 April 28, 2006.--Ordered to be printed

                                _______
                                

    Mr. King of New York, from the Committee on Homeland Security, 
                        submitted the following

                              R E P O R T

                             together with

               MINORITY, DISSENTING, AND ADDITIONAL VIEWS

                        [To accompany H.R. 4954]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Homeland Security, to whom was referred the 
bill (H.R. 4954) to improve maritime and cargo security through 
enhanced layered defenses, and for other purposes, having 
considered the same, report favorably thereon with an amendment 
and recommend that the bill as amended do pass.

                                CONTENTS

                                                                   Page
Purpose and Summary..............................................    33
Background and Need for Legislation..............................    33
Hearings and Briefings...........................................    34
Committee Consideration..........................................    37
Committee Votes..................................................    37
Committee Oversight Findings.....................................    65
Statement of General Performance Goals and Objectives............    65
New Budget Authority, Entitlement Authority, and Tax Expenditures    65
Congressional Budget Office Estimate.............................    65
Federal Mandates Statement.......................................    70
Advisory Committee Statement.....................................    70
Constitutional Authority Statement...............................    70
Applicability to Legislative Branch..............................    70
Section-by-Section Analysis of the Legislation...................    70
Changes in Existing Law Made by the Bill, as Reported............    99
Minority and Dissenting Views....................................   143
Letters and Correspondence.......................................   150

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

  (a) Short Title.--This Act may be cited as the ``Security and 
Accountability For Every Port Act'' or ``SAFE Port Act''.
  (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings.
Sec. 3. Definitions.

              TITLE I--SECURITY OF UNITED STATES SEAPORTS

                     Subtitle A--General Provisions

Sec. 101. Definition of transportation security incident.
Sec. 102. Protocols for resumption of trade.
Sec. 103. Requirements relating to maritime facility security plans.
Sec. 104. Unannounced inspections of maritime facilities.
Sec. 105. Verification of individuals with access to secure areas of 
seaports.
Sec. 106. Clarification on eligibility for transportation security 
cards.
Sec. 107. Long-range vessel tracking.
Sec. 108. Maritime security command centers.

                Subtitle B--Grant and Training Programs

Sec. 111. Port security grant program.
Sec. 112. Port security training program.
Sec. 113. Port security exercise program.
Sec. 114. Reserve officers and junior reserve officers training pilot 
project.

                  Subtitle C--Miscellaneous Provisions

Sec. 121. Increase in port of entry inspection officers.
Sec. 122. Acceleration of Integrated Deepwater System.
Sec. 123. Border Patrol unit for United States Virgin Islands.
Sec. 124. Report on ownership and operation of United States seaports.
Sec. 125. Report on security operations at certain United States 
seaports.
Sec. 126. Report on arrival and departure manifests for certain 
commercial vessels in the United States Virgin Islands.

          TITLE II--SECURITY OF THE INTERNATIONAL SUPPLY CHAIN

Sec. 201. Security of the international supply chain.
Sec. 202. Next generation supply chain security technologies.
Sec. 203. Uniform data system for import and export information.
Sec. 204. Foreign port assessments.
Sec. 205. Pilot program to improve the security of empty containers.
Sec. 206. Study and report on advanced imagery pilot programs.

 TITLE III--DIRECTORATE FOR POLICY, PLANNING, AND INTERNATIONAL AFFAIRS

Sec. 301. Establishment of Directorate.

             TITLE IV--OFFICE OF DOMESTIC NUCLEAR DETECTION

Sec. 401. Establishment of Office.
Sec. 402. Nuclear and radiological detection systems.

SEC. 2. FINDINGS.

  Congress makes the following findings:
          (1) Maritime vessels are the primary mode of transportation 
        for international trade and they carry over 80 percent of 
        international trade by volume.
          (2) In 2004, maritime vessels carried approximately 9,700,000 
        shipping containers into United States seaports at an average 
        of 27,000 containers per day.
          (3) The security of the international container supply chain 
        and the maritime transportation system is critical for the 
        prosperity and liberty of all countries.
          (4) In its final report, the National Commission on Terrorist 
        Attacks Upon the United States noted, ``While commercial 
        aviation remains a possible target, terrorists may turn their 
        attention to other modes of transportation. Opportunities to do 
        harm are as great, or greater in maritime or surface 
        transportation.''.
          (5) In May 2002, the Brookings Institution estimated that 
        costs associated with United States port closures from a 
        detonated terrorist weapon could add up to $1 trillion from the 
        resulting economic slump and changes in our Nation's inability 
        to trade. Anticipated port closures on the west coast of the 
        United States could cost the United States economy $1 billion 
        per day for the first five days after a terrorist attack.
          (6) Significant steps have been taken since the terrorist 
        attacks against the United States that occurred on September 
        11, 2001:
                  (A) Congress passed the Maritime Transportation 
                Security Act of 2002 on November 14, 2002.
                  (B) The Coast Guard issued a comprehensive set of 
                port security regulations on October 22, 2003.
                  (C) The International Maritime Organization adopted 
                the International Ship and Port Facility (ISPS) Code in 
                December 2002.
                  (D) The White House issued Homeland Security 
                Presidential Directive-13 in September 2005 which lays 
                out requirements for a comprehensive maritime security 
                policy.
          (7) Through both public and private projects, the private 
        sector in the United States and overseas has worked with the 
        Department of Homeland Security to improve the security of the 
        movement of cargo through the international supply chain.
          (8) Despite these steps, security gaps in the maritime 
        transportation system remain, resulting in high-risk container 
        systems not being checked overseas or domestically and ports 
        that are vulnerable to terrorist attacks similar to the attack 
        on the U.S.S. Cole.
          (9) Significant enhancements can be achieved by applying a 
        multi-layered approach to supply chain security, in a 
        coordinated fashion. Current supply chain programs within the 
        Federal Government have been independently operated, often 
        falling short of gains which could have been made if such 
        programs were operated in a coordinated manner with clear 
        system standards and a framework that creates incentives for 
        security investments.
          (10) While it is impossible to completely remove the risk of 
        a terrorist attack, security measures in the supply chain can 
        add certainty and stability to the global economy, raise 
        investor confidence, and facilitate trade. Some 
        counterterrorism costs are integral to the price that must be 
        paid to protect society. However, counterterrorism measures 
        also present an opportunity to increase the efficiency of the 
        global trade system through international harmonization of such 
        measures. These efficiency gains are maximized when all 
        countries adopt such counterterrorism measures.
          (11) Increasing transparency in the supply chain will assist 
        in mitigating the impact of a terrorist attack by allowing for 
        a targeted shutdown of the international supply chain and 
        expedited restoration of commercial traffic.

SEC. 3. DEFINITIONS.

  In this Act:
          (1) Appropriate congressional committees.--The term 
        ``appropriate congressional committees'' has the meaning given 
        the term in section 2(2) of the Homeland Security Act of 2002 
        (6 U.S.C. 101(2)).
          (2) Department.--The term ``Department'' means the Department 
        of Homeland Security.
          (3) International supply chain.--The term ``international 
        supply chain'' means the end-to-end process for shipping goods 
        from a point of origin overseas to and from the United States.
          (4) Secretary.--The term ``Secretary'' means the Secretary of 
        Homeland Security.

              TITLE I--SECURITY OF UNITED STATES SEAPORTS

                     Subtitle A--General Provisions

SEC. 101. DEFINITION OF TRANSPORTATION SECURITY INCIDENT.

  Section 70101(6) of title 46, United States Code, is amended by 
inserting after ``economic disruption'' the following ``(other than 
economic disruption caused by acts that are unrelated to terrorism and 
are committed during a labor strike, demonstration, or other type of 
labor unrest)''.

SEC. 102. PROTOCOLS FOR RESUMPTION OF TRADE.

  (a) In General.--Section 70103(a)(2)(J) of title 46, United States 
Code, is amended--
          (1) by striking ``(J)'' and inserting ``(J)(i)''; and
          (2) by adding at the end the following new clause:
          ``(ii) The plan required by clause (i) shall include 
        protocols for the resumption of trade in the event of a 
        transportation security incident that necessitates the 
        suspension of trade through contingency and continuity planning 
        that ensures trade lanes are restored as quickly as possible. 
        The protocols shall provide for--
                  ``(I) coordination with appropriate Federal, State, 
                and local agencies, the private sector, and appropriate 
                overseas entities in developing such contingency and 
                continuity planning;
                  ``(II) coordination with appropriate Federal, State, 
                and local agencies and the private sector on law 
                enforcement actions, inter-modal rerouting plans, and 
                identification and prioritization of goods that may 
                enter the United States; and
                  ``(III) designation of appropriate Federal officials 
                to work with port authorities to reestablish the flow 
                of cargo by prioritizing shipments based on appropriate 
                factors, including factors relating to public health, 
                national security, and economic need.''.
  (b) Effective Date.--The Secretary of Homeland Security shall develop 
the protocols described in section 70103(a)(2)(J)(ii) of title 46, 
United States Code, as added by subsection (a), not later than 180 days 
after the date of the enactment of this Act.

SEC. 103. REQUIREMENTS RELATING TO MARITIME FACILITY SECURITY PLANS.

  (a) Facility Security Plans.--The Secretary of Homeland Security 
shall require that a security plan for a facility required under 
section 70103(c) of title 46, United States Code, shall be resubmitted 
for approval upon transfer of ownership or operation of such facility.
  (b) Facility Security Officers.--
          (1) In general.--The Secretary shall require that the 
        qualified individual having full authority to implement 
        security actions who is required to be identified under section 
        70103(c)(3)(B) of title 46, United States Code, for a facility 
        described in section 70103(c)(2) of that title shall be a 
        citizen of the United States.
          (2) Waiver.--The Secretary may waive the requirement of 
        paragraph (1) with respect to an individual if the Secretary 
        determines that it is appropriate to do so based on a complete 
        background check of the individual and a review of all 
        terrorist watchlists to ensure that the individual is not 
        identified on any such terrorist watchlist.
  (c) Facility Security Access.--Section 70103(c)(3)(C)(ii) of title 
46, United States Code, is amended by adding at the end before the 
semicolon the following: ``, including access by individuals engaged in 
the surface transportation of intermodal containers in or out of a port 
facility''.

SEC. 104. UNANNOUNCED INSPECTIONS OF MARITIME FACILITIES.

  Subparagraph (D) of section 70103(c)(4) of title 46, United States 
Code, is amended to read as follows:
          ``(D) verify the effectiveness of each such facility security 
        plan periodically, but not less than twice annually, at least 
        one of which shall be an inspection of the facility that is 
        conducted without notice to the facility.''.

SEC. 105. VERIFICATION OF INDIVIDUALS WITH ACCESS TO SECURE AREAS OF 
                    SEAPORTS.

  (a) Implementation of Requirements.--Notwithstanding any other 
provision of law, the Secretary of Homeland Security shall--
          (1) not later than July 15, 2006, issue a notice of proposed 
        rulemaking for regulations required to implement section 70105 
        of title 46, United States Code;
          (2) not later than November 15, 2006, issue final regulations 
        required to implement that section; and
          (3) begin issuing transportation security cards to 
        individuals at seaports facilities under subsection (b) of that 
        section in accordance with the schedule contained in subsection 
        (b)(2) of this section.
  (b) Transportation Security Cards.--
          (1) Management.--Final regulations issued under subsection 
        (a)(2) shall provide for Federal management of the system for 
        issuing transportation security cards.
          (2) Schedule for issuing transportation security cards at 
        seaports.--
                  (A) Not later than May 15, 2007, the Secretary shall 
                begin issuing transportation security cards to 
                individuals at the first 25 seaport facilities listed 
                on the facility vulnerability assessment issued by the 
                Secretary under section 70102 of title 46, United 
                States Code.
                  (B) Not later than November 15, 2007, the Secretary 
                shall begin issuing transportation security cards to 
                individuals at the next 30 seaport facilities listed on 
                that assessment.
                  (C) Not later than November 15, 2008, the Secretary 
                shall issue transportation security cards to 
                individuals at all other seaport facilities.
  (c) Interim Verification of Individuals.--
          (1) Terrorist watch list comparison and immigration records 
        check.--Not later than 90 days after the date of enactment of 
        this Act, the Secretary shall--
                  (A) complete a comparison of each individual who has 
                unescorted access to a secure area of a seaport 
                facility (as designated in an approved facility 
                security plan in accordance with section 70103(c) of 
                title 46, United States Code) against terrorist watch 
                lists to determine if the individual poses a threat; 
                and
                  (B) determine whether each such individual may be 
                denied admission to the United States, or removed from 
                the United States, under the Immigration and 
                Nationality Act (8 U.S.C. 1101 et seq.).
          (2) Continuing requirement.--In the case of an individual who 
        is given unescorted access to a secure area of a seaport 
        facility after the date on which the Secretary completes the 
        requirements of paragraph (1) and before the date on which the 
        Secretary begins issuing transportation security cards at the 
        seaport facility, the Secretary shall conduct a comparison of 
        the individual against terrorist watch lists and determine 
        whether the individual is lawfully present in the United 
        States.
          (3) Interim final regulations.--In order to carry out this 
        subsection, the Secretary shall issue interim final regulations 
        to require submission to the Secretary of information necessary 
        to carry out the requirements of paragraph (1).
          (4) Privacy requirements.--Terrorist watch list comparisons 
        and immigration records checks under this subsection shall be 
        carried out in accordance with the requirements of section 552a 
        of title 5, United States Code.
          (5) Restrictions on use and maintenance of information.--
                  (A) Restriction on disclosure.--Information obtained 
                by the Secretary in the course of comparing the 
                individual against terrorist watch lists under this 
                subsection may not be made available to the public, 
                including the individual's employer.
                  (B) Confidentiality; use.--Any information 
                constituting grounds for prohibiting the employment of 
                an individual in a position described in paragraph 
                (1)(A) shall be maintained confidentially by the 
                Secretary and may be used only for making 
                determinations under this section. The Secretary may 
                share any such information with appropriate Federal, 
                State, local, and tribal law enforcement agencies.
          (6) Terrorist watch lists defined.--In this subsection, the 
        term ``terrorist watch lists'' means all available information 
        on known or suspected terrorists or terrorist threats.
  (d) Reporting.--Not later than 120 days after the date of enactment 
of this Act, the Secretary shall submit to the appropriate 
congressional committees a report containing information on--
          (1) the number of matches made in conducting terrorist watch 
        list comparisons, and the number of individuals found to be 
        unlawfully present in the United States, under subsection (c);
          (2) the corresponding seaport facilities at which the matches 
        and unlawfully present individuals were identified; and
          (3) the actions taken as a result of the terrorist watchlist 
        comparisons and immigration records checks under subsection 
        (c).
  (e) Treatment of Individuals Receiving Hazardous Materials 
Endorsements.--
          (1) In general.--To the extent the Secretary determines that 
        the background records check conducted under section 5103a of 
        title 49, United States Code, and the background records check 
        conducted under section 70105 of title 46, United States Code, 
        are equivalent, the Secretary shall determine that an 
        individual does not pose a risk warranting denial of a 
        transportation security card issued under section 70105 of 
        title 46, United States Code, if such individual--
                  (A) has successfully completed a background records 
                check under section 5103a of title 49, United States 
                Code; and
                  (B) possesses a current and valid hazardous materials 
                endorsement in accordance with section 1572 of title 
                49, Code of Federal Regulations.
          (2) Limitations.--Notwithstanding paragraph (1), the 
        Secretary may deny an individual a transportation security card 
        under section 70105 of title 46, United States Code, if the 
        Secretary has substantial evidence that the individual poses a 
        risk to national security.
          (3) Reduction in fees.--The Secretary shall reduce, to the 
        extent practicable, any fees associated with obtaining a 
        transportation security card under section 70105 of title 46, 
        United States Code, for any individual referred to in paragraph 
        (1).
  (f) Authorization of Appropriations.--There is authorized to be 
appropriated $20,000,000 for fiscal year 2007 to carry out this 
section.

SEC. 106. CLARIFICATION ON ELIGIBILITY FOR TRANSPORTATION SECURITY 
                    CARDS.

  Section 70105(c)(2) of title 46, United States Code, is amended by 
inserting ``subparagraph (A), (B), or (D) of'' before ``paragraph 
(1)''.

SEC. 107. LONG-RANGE VESSEL TRACKING.

  (a) Regulations.--Section 70115 of title 46, United States Code is 
amended in the first sentence by striking ``The Secretary'' and 
inserting ``Not later than April 1, 2007, the Secretary''.
  (b) Voluntary Program.--The Secretary of Homeland Security may issue 
regulations to establish a voluntary long-range automated vessel 
tracking system for vessels described in section 70115 of title 46, 
United States Code, during the period before regulations are issued 
under subsection (a) of such section.

SEC. 108. MARITIME SECURITY COMMAND CENTERS.

  (a) In General.--Chapter 701 of title 46, United States Code, is 
amended by adding at the end the following new section:

``Sec. 70122. Maritime security command centers

  ``(a) Establishment.--The Secretary shall establish an integrated 
network of virtual and physical maritime security command centers at 
appropriate United States seaports and maritime regions, as determined 
by the Secretary, to--
          ``(1) enhance information sharing;
          ``(2) facilitate day-to-day operational coordination; and
          ``(3) in the case of a transportation security incident, 
        facilitate incident management and response.
  ``(b) Characteristics.--Each maritime security command center 
described in subsection (a) shall--
          ``(1) be regionally based and utilize where available the 
        compositional and operational characteristics, facilities and 
        information technology systems of current operational centers 
        for port and maritime security and other similar existing 
        facilities and systems;
          ``(2) be adapted to meet the security needs, requirements, 
        and resources of the seaport and maritime region the center 
        will cover; and
          ``(3) to the maximum extent practicable, not involve the 
        construction of new facilities, but shall utilize information 
        technology, virtual connectivity, and existing facilities to 
        create an integrated, real-time communication and information 
        sharing network.
  ``(c) Participation.--The following entities shall participate in the 
integrated network of maritime security command centers described in 
subsection (a):
          ``(1) The Coast Guard.
          ``(2) U.S. Customs and Border Protection.
          ``(3) U.S. Immigration and Customs Enforcement.
          ``(4) Other appropriate Federal, State, and local law 
        enforcement agencies.
  ``(d) Responsibilities.--Each maritime security command center 
described in subsection (a) shall--
          ``(1) assist, as appropriate, in the implementation of 
        maritime transportation security plans developed under section 
        70103;
          ``(2) implement the transportation security incident response 
        plans required under section 70104;
          ``(3) carry out information sharing activities consistent 
        with those activities required under section 1016 of the 
        National Security Intelligence Reform Act of 2004 (6 U.S.C. 
        485) and the Homeland Security Information Sharing Act (6 
        U.S.C. 481 et seq.);
          ``(4) conduct short- and long-range vessel tracking under 
        sections 70114 and 70115; and
          ``(5) carry out such other responsibilities as determined by 
        the Secretary.
  ``(e) Security Clearances.--The Secretary shall sponsor and expedite 
individuals participating in a maritime security command center 
described in subsection (a) in gaining or maintaining their security 
clearances. Through the Captain of the Port, the Secretary may identify 
key individuals who should participate. In addition, the port or other 
entities may appeal to the Captain of the Port for sponsorship.
  ``(f) Security Incidents.--During a transportation security incident 
involving the port, the Coast Guard Captain of the Port designated by 
the Commandant of the Coast Guard in a maritime security command center 
described in subsection (a) shall act as the incident commander, unless 
otherwise directed by the President.
  ``(g) Rule of Construction.--Nothing in this section shall be 
construed to affect the normal command and control procedures for 
operational entities in the Department, unless so directed by the 
Secretary.
  ``(h) Authorization of Appropriations.--There are authorized to be 
appropriated $60,000,000 for each of the fiscal years 2007 through 2012 
to carry out this section and section 108(c) of the Security and 
Accountability For Every Port Act.''.
  (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 701 of title 46, United States Code, is amended by adding at 
the end the following:

``70122. Maritime security command centers.''.
  (c) Implementation Plan and Budget Analysis.--The Secretary of 
Homeland Security shall submit to the appropriate congressional 
committees a plan for the implementation of section 70122 of title 46, 
United States Code, as added by subsection (a), and a budget analysis 
for the implementation of such section, including additional cost-
sharing arrangements with other Federal departments and agencies and 
other participants involved in the maritime security command centers 
described in such section, not later than 180 days after the date of 
the enactment of this Act.

                Subtitle B--Grant and Training Programs

SEC. 111. PORT SECURITY GRANT PROGRAM.

  (a) In General.--Title V of the Homeland Security Act of 2002 (6 
U.S.C. 311 et seq.) is amended--
          (1) by redesignating the second section 510 (as added by 
        section 7303(d) of Public Law 108-458 (118 Stat. 3844)) as 
        section 511; and
          (2) by adding at the end the following new section:

``SEC. 512. PORT SECURITY GRANT PROGRAM.

  ``(a) Grants Authorized.--The Secretary shall establish a grant 
program to allocate Federal financial assistance to United States 
seaports on the basis of risk and need.
  ``(b) Prioritization Process.--In awarding grants under this section, 
the Secretary shall conduct an assessment of United States seaports to 
develop a prioritization for awarding grants authorized under 
subsection (a) based upon--
          ``(1) the most current risk assessment available from the 
        Department;
          ``(2) the national economic and strategic defense 
        considerations of individual ports; and
          ``(3) any other factors that the Secretary determines to be 
        appropriate.
  ``(c) Application.--
          ``(1) In general.--Any entity or facility subject to an Area 
        Maritime Transportation Security Plan required under subsection 
        (b) or (c) of section 70103 of title 46, United States Code, 
        may submit an application for a grant under this section, at 
        such time, in such form, and containing such information and 
        assurances as the Secretary may require.
          ``(2) Minimum standards for payment or reimbursement.--Each 
        application submitted under paragraph (1) shall include--
                  ``(A) a comprehensive description of--
                          ``(i) the purpose of the project for which 
                        the applicant seeks a grant under this section 
                        and why the applicant needs the grant;
                          ``(ii) the applicability of the project to 
                        the Area Maritime Transportation Security Plan 
                        and other homeland security plans;
                          ``(iii) the methodology for coordinating the 
                        project into the security of the greater port 
                        area, as identified in the Area Maritime 
                        Transportation Security Plan;
                          ``(iv) any existing cooperation or mutual aid 
                        agreements with other port facilities, vessels, 
                        organizations, or State, territorial, and local 
                        governments as such agreements relate to port 
                        security; and
                          ``(v) a capital budget showing how the 
                        applicant intends to allocate and expend the 
                        grant funds;
                  ``(B) a determination by the Captain of the Port that 
                the project--
                          ``(i) addresses or corrects port security 
                        vulnerabilities; and
                          ``(ii) helps to ensure compliance with the 
                        Area Maritime Transportation Security Plan.
          ``(3) Procedural safeguards.--The Secretary, in consultation 
        with the Office of the Inspector General and the Office of 
        Grants and Training, shall issue guidelines to establish 
        appropriate accounting, reporting, and review procedures to 
        ensure that--
                  ``(A) grant funds are used for the purposes for which 
                they were made available;
                  ``(B) grantees have properly accounted for all 
                expenditures of grant funds; and
                  ``(C) grant funds not used for such purposes and 
                amounts not obligated or expended are returned.
  ``(d) Use of Funds.--Grants awarded under this section may be used--
          ``(1) to help implement Area Maritime Transportation Security 
        Plans required under section 70103(b) of title 46, United 
        States Code;
          ``(2) to remedy port security vulnerabilities identified 
        through vulnerability assessments approved by the Secretary;
          ``(3) for non-Federal projects contributing to the overall 
        security of a seaport or a system of United States seaports, as 
        determined by the Secretary;
          ``(4) for the salaries, benefits, overtime compensation, and 
        other costs of additional security personnel for State and 
        local agencies for activities required by the Area Maritime 
        Transportation Security Plan for a seaport area if the 
        Secretary--
                  ``(A) increases the threat level under the Homeland 
                Security Advisory System to Code Orange or Code Red; or
                  ``(B) raises the Maritime Security level to MARSEC 
                Level 2 or 3;
          ``(5) for the cost of acquisition, operation, and maintenance 
        of equipment that contributes to the overall security of the 
        port area, as identified in the Area Maritime Transportation 
        Security Plan, if the need is based upon vulnerability 
        assessments approved by the Secretary or identified in the Area 
        Maritime Security Plan;
          ``(6) to conduct vulnerability assessments approved by the 
        Secretary;
          ``(7) to purchase or upgrade equipment, including computer 
        software, to enhance terrorism preparedness;
          ``(8) to conduct exercises or training for prevention and 
        detection of, preparedness for, response to, or recovery from 
        terrorist attacks;
          ``(9) to establish or enhance mechanisms for sharing 
        terrorism threat information;
          ``(10) for the cost of equipment (including software) 
        required to receive, transmit, handle, and store classified 
        information;
          ``(11) for the protection of critical infrastructure against 
        potential attack by the addition of barriers, fences, gates, 
        and other such devices, except that the cost of such measures 
        may not exceed the greater of--
                  ``(A) $1,000,000 per project; or
                  ``(B) such greater amount as may be approved by the 
                Secretary, which may not exceed 10 percent of the total 
                amount of the grant; and
          ``(12) to conduct port-wide exercises to strengthen emergency 
        preparedness of Federal, State, territorial, and local 
        officials responsible for port security, including law 
        enforcement personnel and firefighters and other first 
        responders, in support of the Area Maritime Security Plan.
  ``(e) Prohibited Uses.--Grants awarded under this section may not be 
used to--
          ``(1) supplant State or local funds for activities of the 
        type described in subsection (d);
          ``(2) construct buildings or other physical facilities;
          ``(3) acquire land; or
          ``(4) make any State or local government cost-sharing 
        contribution.
  ``(f) Matching Requirement.--
          ``(1) In general.--Except as provided in subparagraph (A) or 
        (B) of paragraph (2), Federal funds for any eligible project 
        under this section shall not exceed 75 percent of the total 
        cost of such project.
          ``(2) Exceptions.--
                  ``(A) Small projects.--The requirement of paragraph 
                (1) shall not apply with respect to a project with a 
                total cost of not more than $25,000.
                  ``(B) Higher level of federal support required.--The 
                requirement of paragraph (1) shall not apply with 
                respect to a project if the Secretary determines that 
                the project merits support and cannot be undertaken 
                without a higher rate of Federal support than the rate 
                described in paragraph (1).
          ``(3) In-kind contributions.--Each recipient of a grant under 
        this section may meet the requirement of paragraph (1) by 
        making in-kind contributions of goods or services that are 
        directly linked with the purpose for which the grant is made, 
        as determined by the Secretary, including any necessary 
        personnel expenses, contractor services, administrative costs, 
        equipment, fuel, or maintenance, and rental space.
  ``(g) Multiple Phase Projects.--
          ``(1) In general.--The Secretary may award grants under this 
        section for projects that span multiple years.
          ``(2) Funding limitation.--Not more than 20 percent of the 
        total grant funds awarded under this section in any fiscal year 
        may be awarded for projects that span multiple years.
  ``(h) Consistency With Plans.--The Secretary shall ensure that each 
grant awarded under this section--
          ``(1) is used to supplement and support, in a consistent and 
        coordinated manner, the applicable Area Maritime Transportation 
        Security Plan; and
          ``(2) is coordinated with any applicable State or Urban Area 
        Homeland Security Plan.
  ``(i) Coordination and Cooperation.--The Secretary--
          ``(1) shall ensure that all projects that receive grant 
        funding under this section within any area defined in an Area 
        Maritime Transportation Security Plan are coordinated with 
        other projects in such area; and
          ``(2) may require cooperative agreements among users of the 
        seaport and seaport facilities with respect to projects funded 
        under this section.
  ``(j) Review and Audits.--The Secretary shall require all grantees 
under this section to maintain such records as the Secretary may 
require and make such records available for review and audit by the 
Secretary, the Comptroller General of the United States, or the 
Inspector General of the Department.
  ``(k) Authorization of Appropriations.--
          ``(1) In general.--There are authorized to be appropriated 
        $400,000,000 for each of fiscal years 2007 through 2012 to 
        carry out this section.
          ``(2) Source of funds.--Amounts authorized to be appropriated 
        under paragraph (1) shall originate from duties collected by 
        U.S. Customs and Border Protection.''.
  (b) Clerical Amendment.--The table of contents in section 1(b) of the 
Homeland Security Act of 2002 (116 Stat. 2135) is amended by inserting 
after the item relating to section 509 the following:

``Sec. 510. Procurement of security countermeasures for strategic 
national stockpile.
``Sec. 511. Urban and other high risk area communications capabilities.
``Sec. 512. Port security grant program.''.
  (c) Repeal.--
          (1) In general.--Section 70107 of title 46, United States 
        Code, is hereby repealed.
          (2) Clerical amendment.--The table of sections at the 
        beginning of chapter 701 of title 46, United States Code, is 
        amended by striking the item relating to section 70107.

SEC. 112. PORT SECURITY TRAINING PROGRAM.

  (a) In General.--Subtitle A of title VIII of the Homeland Security 
Act of 2002 (6 U.S.C. 361) is amended by adding at the end the 
following new section:

``SEC. 802. PORT SECURITY TRAINING PROGRAM.

  ``(a) In General.--The Secretary, acting through the Assistant 
Secretary for Grants and Training and in coordination with components 
of the Department with maritime security expertise, including the Coast 
Guard, the Transportation Security Administration, and U.S. Customs and 
Border Protection, shall establish a Port Security Training Program 
(hereinafter in this section referred to as the `Program') for the 
purpose of enhancing the capabilities of each of the Nation's 
commercial seaports to prevent, prepare for, respond to, mitigate 
against, and recover from threatened or actual acts of terrorism, 
natural disasters, and other emergencies.
  ``(b) Requirements.--The Program shall provide validated training 
that--
          ``(1) reaches multiple disciplines, including Federal, State, 
        and local government officials, commercial seaport personnel 
        and management, and governmental and nongovernmental emergency 
        response providers;
          ``(2) provides training at the awareness, performance, and 
        management and planning levels;
          ``(3) utilizes multiple training mediums and methods, 
        including--
                  ``(A) direct delivery;
                  ``(B) train-the-trainer;
                  ``(C) computer-based training;
                  ``(D) web-based training; and
                  ``(E) video teleconferencing;
          ``(4) addresses port security topics, including--
                  ``(A) seaport security plans and procedures, 
                including how security plans and procedures are 
                adjusted when threat levels increase;
                  ``(B) seaport security force operations and 
                management;
                  ``(C) physical security and access control at 
                seaports;
                  ``(D) methods of security for preventing and 
                countering cargo theft;
                  ``(E) container security;
                  ``(F) recognition and detection of weapons, dangerous 
                substances, and devices;
                  ``(G) operation and maintenance of security equipment 
                and systems;
                  ``(H) security threats and patterns;
                  ``(I) security incident procedures, including 
                procedures for communicating with governmental and 
                nongovernmental emergency response providers; and
                  ``(J) evacuation procedures;
          ``(5) is consistent with, and supports implementation of, the 
        National Incident Management System, the National Response 
        Plan, the National Infrastructure Protection Plan, the National 
        Preparedness Guidance, the National Preparedness Goal, and 
        other such national initiatives;
          ``(6) is evaluated against clear and consistent performance 
        measures; and
          ``(7) addresses security requirements under facility security 
        plans.
  ``(c) National Voluntary Consensus Standards.--The Secretary shall--
          ``(1) support the development, promulgation, and regular 
        updating as necessary of national voluntary consensus standards 
        for port security training; and
          ``(2) ensure that the training provided under this section is 
        consistent with such standards.
  ``(d) Training Partners.--In developing and delivering training under 
the Program, the Secretary shall--
          ``(1) work with government training facilities, academic 
        institutions, private organizations, employee organizations, 
        and other entities that provide specialized, state-of-the-art 
        training for governmental and nongovernmental emergency 
        responder providers or commercial seaport personnel and 
        management; and
          ``(2) utilize, as appropriate, training courses provided by 
        community colleges, public safety academies, State and private 
        universities, and other facilities.
  ``(e) Consultation.--The Secretary shall ensure that, in carrying out 
the Program, the Office of Grants and Training shall consult with--
          ``(1) a geographic and substantive cross section of 
        governmental and nongovernmental emergency response providers; 
        and
          ``(2) commercial seaport personnel and management.
  ``(f) Commercial Seaport Personnel Defined.--For purposes of this 
section, the term `commercial seaport personnel' means any person 
engaged in an activity relating to the loading or unloading of cargo, 
the movement or tracking of cargo, the maintenance and repair of 
intermodal equipment, the operation of cargo-related equipment (whether 
or not integral to the vessel), and the handling of mooring lines on 
the dock when a vessel is made fast or let go, in the United States or 
the coastal waters thereof.''.
  (b) Clerical Amendment.--The table of contents in section 1(b) of the 
Homeland Security Act of 2002 (116 Stat. 2135) is amended by inserting 
after the item relating to section 801 the following:

``Sec. 802. Port security training program.''.
  (c) Vessel and Facility Security Plans.--Section 70103(c)(3) of title 
46, United States Code, is amended--
          (1) in subparagraph (E), by striking ``the training, periodic 
        unannounced drills, and''
          (2) by redesignating subparagraphs (F) and (G) as 
        subparagraphs (G) and (H), respectively; and
          (3) by inserting after subparagraph (E) the following new 
        subparagraph:
          ``(F) provide a strategy and timeline for conducting training 
        and periodic unannounced drills for persons on the vessel or at 
        the facility to be carried out under the plan to deter, to the 
        maximum extent practicable, a transportation security incident 
        or a substantial threat of such a transportation security 
        incident;''.

SEC. 113. PORT SECURITY EXERCISE PROGRAM.

  (a) In General.--Subtitle A of title VIII of the Homeland Security 
Act of 2002 (6 U.S.C. 361), as amended by section 112, is further 
amended by adding at the end the following new section:

``SEC. 803. PORT SECURITY EXERCISE PROGRAM.

  ``(a) In General.--The Secretary, acting through the Assistant 
Secretary for Grants and Training, shall establish a Port Security 
Exercise Program (hereinafter in this section referred to as the 
`Program') for the purpose of testing and evaluating the capabilities 
of Federal, State, local, and foreign governments, commercial seaport 
personnel and management, governmental and nongovernmental emergency 
response providers, the private sector, or any other organization or 
entity, as the Secretary determines to be appropriate, to prevent, 
prepare for, mitigate against, respond to, and recover from acts of 
terrorism, natural disasters, and other emergencies at commercial 
seaports.
  ``(b) Requirements.--The Secretary, acting through the Assistant 
Secretary for Grants and Training and in coordination with components 
of the Department with maritime security expertise, including the Coast 
Guard, the Transportation Security Administration, and U.S. Customs and 
Border Protection, shall ensure that the Program--
          ``(1) consolidates all existing port security exercise 
        programs administered by the Department;
          ``(2) conducts, on a periodic basis, port security exercises 
        at commercial seaports that are--
                  ``(A) scaled and tailored to the needs of each port;
                  ``(B) live in the case of the most at-risk ports;
                  ``(C) as realistic as practicable and based on 
                current risk assessments, including credible threats, 
                vulnerabilities, and consequences;
                  ``(D) consistent with the National Incident 
                Management System, the National Response Plan, the 
                National Infrastructure Protection Plan, the National 
                Preparedness Guidance, the National Preparedness Goal, 
                and other such national initiatives;
                  ``(E) evaluated against clear and consistent 
                performance measures;
                  ``(F) assessed to learn best practices, which shall 
                be shared with appropriate Federal, State, and local 
                officials, seaport personnel and management; 
                governmental and nongovernmental emergency response 
                providers, and the private sector; and
                  ``(G) followed by remedial action in response to 
                lessons learned; and
          ``(3) assists State and local governments and commercial 
        seaports in designing, implementing, and evaluating exercises 
        that--
                  ``(A) conform to the requirements of paragraph (2); 
                and
                  ``(B) are consistent with any applicable Area 
                Maritime Transportation Security Plan and State or 
                Urban Area Homeland Security Plan.
  ``(c) Remedial Action Management System.--The Secretary, acting 
through the Assistant Secretary for Grants and Training, shall 
establish a Remedial Action Management System to--
          ``(1) identify and analyze each port security exercise for 
        lessons learned and best practices;
          ``(2) disseminate lessons learned and best practices to 
        participants in the Program;
          ``(3) monitor the implementation of lessons learned and best 
        practices by participants in the Program; and
          ``(4) conduct remedial action tracking and long-term trend 
        analysis.
  ``(d) Grant Program Factor.--In evaluating and prioritizing 
applications for Federal financial assistance under section 512, the 
Secretary shall give additional consideration to those applicants that 
have conducted port security exercises under this section.
  ``(e) Consultation.--The Secretary shall ensure that, in carrying out 
the Program, the Office of Grants and Training shall consult with--
          ``(1) a geographic and substantive cross section of 
        governmental and nongovernmental emergency response providers; 
        and
          ``(2) commercial seaport personnel and management.
  ``(f) Commercial Seaport Personnel Defined.--For purposes of this 
section, the term `commercial seaport personnel' means any person 
engaged in an activity relating to the loading or unloading of cargo, 
the movement or tracking of cargo, the maintenance and repair of 
intermodal equipment, the operation of cargo-related equipment (whether 
or not integral to the vessel), and the handling of mooring lines on 
the dock when a vessel is made fast or let go, in the United States or 
the coastal waters thereof.''.
  (b) Clerical Amendment.--The table of contents in section 1(b) of the 
Homeland Security Act of 2002 (116 Stat. 2135), as amended by section 
112, is further amended by inserting after the item relating to section 
802 the following:

``Sec. 803. Port security exercise program.''.

SEC. 114. RESERVE OFFICERS AND JUNIOR RESERVE OFFICERS TRAINING PILOT 
                    PROJECT.

  (a) In General.--The Secretary of the department in which the Coast 
Guard is operating (in this section referred to as the ``Secretary'') 
may carry out a pilot project to establish and maintain a reserve 
officers and a junior reserve officers training program in locations 
determined by the Secretary.
  (b) Criteria for Selection.--The Secretary shall establish and 
maintain a training program under this section in each Coast Guard 
District, preferably in a location that has a Coast Guard district 
headquarters. The Secretary shall ensure that at least one program is 
established at each of an historically black college or university, an 
hispanic serving institution, and a high school with majority-minority 
population.
  (c) Program Requirements.--A pilot program carried out by the 
Secretary under this section shall provide students--
          (1) instruction in subject areas relating to operations of 
        the Coast Guard; and
          (2) training in skills that are useful and appropriate for a 
        career in the Coast Guard.
  (d) Provision of Additional Support.--To carry out a pilot program 
under this section, the Secretary may provide--
          (1) assistance in course development, instruction, and other 
        support activities;
          (2) commissioned, warrant, and petty officers of the Coast 
        Guard to serve as administrators and instructors; and
          (3) necessary and appropriate course materials, equipment, 
        and uniforms.
  (e) Employment of Retired Coast Guard Personnel.--
          (1) In general.--Subject to paragraph (2), the Secretary may 
        authorize a selected college, university, or high school to 
        employ as administrators and instructors for the pilot program 
        retired Coast Guard and Coast Guard Reserve commissioned, 
        warrant, and petty officers who request that employment and who 
        are approved by the Secretary.
          (2) Authorized pay.--
                  (A) In general.--Retired members employed pursuant to 
                paragraph (1) may receive their retired or retainer pay 
                and an additional amount of not more than the 
                difference between--
                          (i) the amount the individual would be paid 
                        as pay and allowance if they were considered to 
                        have been ordered to active duty with the Coast 
                        Guard during that period of employment; and
                          (ii) the amount of retired pay the individual 
                        is entitled to receive during that period.
                  (B) Payment to the school.--The Secretary shall pay 
                to a selected college, university, or high school an 
                amount equal to one half of the amount described in 
                subparagraph (A), from funds appropriated for that 
                purpose.
  (f) Authorization of Appropriations.--To carry out this section there 
is authorized to be appropriated to the Secretary such sums as may be 
necessary for each of fiscal years 2007 through 2010.

                  Subtitle C--Miscellaneous Provisions

SEC. 121. INCREASE IN PORT OF ENTRY INSPECTION OFFICERS.

  (a) In General.--The Secretary of Homeland Security shall increase by 
not less than 200 the number of positions for full-time active duty 
port of entry inspection officers of the Department of Homeland 
Security for each of the fiscal years 2007 through 2012.
  (b) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary to carry out subsection (a) the following 
amounts for the following fiscal years:
          (1) $20,000,000 for fiscal year 2007.
          (2) $40,000,000 for fiscal year 2008.
          (3) $60,000,000 for fiscal year 2009.
          (4) $80,000,000 for fiscal year 2010.
          (5) $100,000,000 for fiscal year 2011.
          (6) $120,000,000 for fiscal year 2012.

SEC. 122. ACCELERATION OF INTEGRATED DEEPWATER SYSTEM.

  In addition to any other amounts authorized by law, there is 
authorized to be appropriated to the Secretary of Homeland Security 
$1,892,000,000 for the acquisition and construction of vessels, 
aircraft, shore and offshore facilities and other components associated 
with the Integrated Deepwater System in accordance with the report 
required by section 888 of the Homeland Security Act of 2002 (116 Stat. 
2250).

SEC. 123. BORDER PATROL UNIT FOR UNITED STATES VIRGIN ISLANDS.

   Not later than 180 days after the date of the enactment of this Act, 
the Secretary of Homeland Security shall establish at least one Border 
Patrol unit for the Virgin Islands of the United States.

SEC. 124. REPORT ON OWNERSHIP AND OPERATION OF UNITED STATES SEAPORTS.

  Not later than 180 days after the date of the enactment of this Act, 
the Secretary of Homeland Security shall submit to the appropriate 
congressional committees a report that contains--
          (1) the name of each individual or entity that leases, 
        operates, manages, or owns real property or facilities at each 
        United States seaport; and
          (2) any other information that the Secretary determines to be 
        appropriate.

SEC. 125. REPORT ON SECURITY OPERATIONS AT CERTAIN UNITED STATES 
                    SEAPORTS.

  (a) Study.--The Secretary of Homeland Security shall conduct a study 
on the adequacy of security operations at the ten United States 
seaports that load and unload the largest amount of containers.
  (b) Report.--Not later than 270 days after the date of the enactment 
of this Act, the Secretary shall submit to the appropriate 
congressional committees a report on the results of the study required 
by subsection (a).

SEC. 126. REPORT ON ARRIVAL AND DEPARTURE MANIFESTS FOR CERTAIN 
                    COMMERCIAL VESSELS IN THE UNITED STATES VIRGIN 
                    ISLANDS.

  Not later than 90 days after the date of the enactment of this Act, 
the Secretary of Homeland Security shall submit to the appropriate 
congressional committees a report on the impact of implementing the 
requirements of section 231 of the Immigration and Nationality Act (8 
U.S.C. 1221) (relating to providing United States border officers with 
arrival and departure manifests) with respect to commercial vessels 
that are fewer than 300 gross tons and operate exclusively between the 
territorial waters of the United States Virgin Islands and the 
territorial waters of the British Virgin Islands.

          TITLE II--SECURITY OF THE INTERNATIONAL SUPPLY CHAIN

SEC. 201. SECURITY OF THE INTERNATIONAL SUPPLY CHAIN.

  (a) In General.--The Homeland Security Act of 2002 (6 U.S.C. 101 et 
seq.) is amended by adding at the end the following new title:

       ``TITLE XVIII--SECURITY OF THE INTERNATIONAL SUPPLY CHAIN

                    ``Subtitle A--General Provisions

``SEC. 1801. STRATEGIC PLAN TO ENHANCE THE SECURITY OF THE 
                    INTERNATIONAL SUPPLY CHAIN.

  ``(a) Strategic Plan.--The Secretary, in consultation with 
appropriate Federal, State, local, and tribal government agencies and 
private sector stakeholders responsible for security matters that 
affect or relate to the movement of containers through the 
international supply chain, shall develop and implement, and update as 
appropriate, a strategic plan to enhance the security of the 
international supply chain.
  ``(b) Requirements.--The strategic plan required under subsection (a) 
shall--
          ``(1) describe the roles, responsibilities, and authorities 
        of Federal, State, local, and tribal government agencies and 
        private sector stakeholders that relate to the security of the 
        movement of containers through the international supply chain;
          ``(2) identify and address gaps and unnecessary overlaps in 
        the roles, responsibilities, or authorities described in 
        paragraph (1);
          ``(3) identify and make recommendations regarding 
        legislative, regulatory, and organizational changes necessary 
        to improve coordination among the entities or to enhance the 
        security of the international supply chain;
          ``(4) provide measurable goals, including objectives, 
        mechanisms, and a schedule, for furthering the security of 
        commercial operations from point of origin to point of 
        destination;
          ``(5) build on available resources and consider costs and 
        benefits;
          ``(6) provide incentives for additional voluntary measures to 
        enhance cargo security, as determined by the Secretary;
          ``(7) consider the impact of supply chain security 
        requirements on small and medium size companies;
          ``(8) include a process for sharing intelligence and 
        information with private sector stakeholders to assist in their 
        security efforts;
          ``(9) identify a framework for prudent and measured response 
        in the event of a transportation security incident involving 
        the international supply chain;
          ``(10) provide a plan for the expeditious resumption of the 
        flow of legitimate trade in accordance with section 
        70103(a)(2)(J)(ii) of title 46, United States Code;
          ``(11) consider the linkages between supply chain security 
        and security programs within other systems of movement, 
        including travel security and terrorism finance programs; and
          ``(12) expand upon and relate to existing strategies and 
        plans, including the National Strategy for Maritime Security 
        and the eight supporting plans of the Strategy, as required by 
        Homeland Security Presidential Directive-13 (September 2005).
  ``(c) Utilization of Advisory Committees.--As part of the 
consultations described in subsection (a), the Secretary shall, to the 
extent practicable, utilize the Homeland Security Advisory Committee, 
the National Maritime Security Advisory Committee, and the Commercial 
Operations Advisory Committee to review, as necessary, the draft 
strategic plan and any subsequent updates to the strategic plan.
  ``(d) International Standards and Practices.--In furtherance of the 
strategic plan required under subsection (a), the Secretary is 
encouraged to consider proposed or established standards and practices 
of foreign governments and international organizations, including the 
International Maritime Organization, the World Customs Organization, 
the International Labor Organization, and the International 
Organization for Standardization, as appropriate, to establish 
standards and best practices for the security of containers moving 
through the international supply chain.
  ``(e) Report.--
          ``(1) Initial report.--The Secretary shall submit to the 
        appropriate congressional committees a report that contains the 
        strategic plan required by subsection (a).
          ``(2) Final report.--Not later than three years after the 
        date on which the strategic plan is submitted under paragraph 
        (1), the Secretary shall submit to the appropriate 
        congressional committees a report that contains an update of 
        the strategic plan.
  ``(f) Definition.--In this section, the term `transportation security 
incident' has the meaning given the term in section 70101(6) of title 
46, United States Code.

``SEC. 1802. TRANSMISSION OF ADDITIONAL DATA ELEMENTS FOR IMPROVED HIGH 
                    RISK TARGETING.

  ``(a) Requirement.--The Secretary shall require transmission to the 
Department, through an electronic data interchange system, of 
additional data elements for improved high risk targeting, including 
appropriate security elements of entry data, as determined by the 
Secretary, to be provided as advanced information with respect to cargo 
destined for importation into the United States prior to loading of 
such cargo on vessels at foreign seaports.
  ``(b) Regulations.--The Secretary shall promulgate regulations to 
carry out this section. In promulgating such regulations, the Secretary 
shall adhere to the parameters applicable to the development of 
regulations under section 343(a) of the Trade Act of 2002 (19 U.S.C. 
2071 note), including provisions relating to consultation, technology, 
analysis, use of information, confidentiality, and timing requirements.

``SEC. 1803. PLAN TO IMPROVE THE AUTOMATED TARGETING SYSTEM.

  ``(a) Plan.--The Secretary shall develop and implement a plan to 
improve the Automated Targeting System for the identification of high-
risk containers moving through the international supply chain.
  ``(b) Contents.--
          ``(1) Treatment of recommendations.--The Secretary shall 
        include in the plan required under subsection (a) a schedule to 
        address the recommendations of the Comptroller General of the 
        United States, the Inspector General of the Department of the 
        Treasury, and the Inspector General of the Department of 
        Homeland Security with respect to the operation of the 
        Automated Targeting System.
          ``(2) Information submissions.--In developing the plan 
        required under subsection (a), the Secretary shall consider the 
        cost, benefit, and feasibility of--
                  ``(A) requiring additional nonmanifest documentation 
                for each container;
                  ``(B) adjusting the time period allowed by law for 
                revisions to a container cargo manifest;
                  ``(C) adjusting the time period allowed by law for 
                submission of entry data for vessel or cargo; and
                  ``(D) such other actions the Secretary considers 
                beneficial for improving the information relied upon 
                for the Automated Targeting System and any other 
                targeting systems in furthering the security and 
                integrity of the international supply chain.
          ``(3) Outside review.--The Secretary shall conduct, through 
        an independent panel, a review of the Automated Targeting 
        System. The results of this review shall be included in the 
        plan required under subsection (a).
          ``(4) Smart system.--The Secretary shall consider future 
        iterations of the Automated Targeting System, which would 
        incorporate smart features, such as more complex algorithms and 
        real-time intelligence, instead of relying solely on rule sets 
        that are periodically updated. The Secretary shall also 
        consider how the Automated Targeting System could be improved 
        through linkages with targeting systems in existence on the 
        date of the enactment of the Security and Accountability For 
        Every Port Act for travel security and terrorism finance 
        programs.
  ``(c) New or Expanded Information Submissions.--In considering any 
new or expanded information submission requirements, the Secretary 
shall consult with stakeholders and identify the need for such 
information, appropriate confidentiality requirements with respect to 
such information, and appropriate timing of the submission of such 
information, in the plan required under subsection (a).
  ``(d) Secure Transmission of Certain Information.--All information 
required by the Department from supply chain partners shall be 
transmitted in a secure fashion, as determined by the Secretary, so as 
to protect the information from unauthorized access.
  ``(e) Authorization of Appropriations.--There are authorized to be 
appropriated $5,000,000 for each of the fiscal years 2007 through 2012 
to carry out this section.

``SEC. 1804. CONTAINER STANDARDS AND VERIFICATION PROCEDURES.

  ``(a) Establishment.--
          ``(1) In general.--The Secretary shall establish minimum 
        standards and verification procedures for securing containers 
        in transit to the United States relating to the sealing of 
        containers.
          ``(2) Deadline for enforcement.--Not later than two years 
        after the date on which the standards and procedures are 
        established pursuant to paragraph (1), all containers bound for 
        ports of entry in the United States shall meet such standards 
        and procedures.
  ``(b) Review and Enhancement.--The Secretary shall regularly--
          ``(1) review the standards and procedures established 
        pursuant to subsection (a); and
          ``(2) enhance the security standards and procedures, as 
        appropriate, based on tests of technologies as they become 
        commercially available to detect container intrusion and the 
        highest consequence threats, particularly weapons of mass 
        destruction.
  ``(c) International Cargo Security Standards.--The Secretary, in 
consultation with the Secretary of State, is encouraged to promote and 
establish international standards for the security of containers moving 
through the international supply chain with foreign governments and 
international organizations, including the International Maritime 
Organization and the World Customs Organization.
  ``(d) International Trade and Other Obligations.--In carrying out 
this section, the Secretary shall consult with appropriate Federal 
departments and agencies and private sector stakeholders to ensure that 
actions under this section do not violate international trade 
obligations or other international obligations of the United States.

``SEC. 1805. CONTAINER SECURITY INITIATIVE (CSI).

  ``(a) Authorization.--The Secretary is authorized to establish and 
implement a program (to be known as the `Container Security Initiative' 
or `CSI') to identify and examine maritime containers that pose a risk 
for terrorism at foreign ports before the containers are shipped to the 
United States.
  ``(b) Assessment.--Before the Secretary designates any foreign port 
under CSI, the Secretary, in consultation with other Federal officials, 
as appropriate, shall conduct an assessment of the port, including--
          ``(1) the level of risk for the potential compromise of 
        containers by terrorists or terrorist weapons;
          ``(2) the volume of regular container traffic to United 
        States ports;
          ``(3) the results of the Coast Guard assessments conducted 
        pursuant to section 70108 of title 46, United States Code;
          ``(4) the commitment of the host nation to cooperating with 
        the Department in sharing critical data and risk management 
        information and to maintain programs to ensure employee 
        integrity; and
          ``(5) the potential for validation of security practices by 
        the Department.
  ``(c) Notification.--The Secretary shall notify the appropriate 
congressional committees prior to notifying the public of the 
designation of a foreign port under CSI.
  ``(d) Inspections.--
          ``(1) Requirements and procedures.--The Secretary shall--
                  ``(A) establish technical capability criteria and 
                standard operating procedures for the use of 
                nonintrusive inspection and nuclear and radiological 
                detection systems in conjunction with CSI;
                  ``(B) require each port designated under CSI to 
                operate nonintrusive inspection and nuclear and 
                radiological detection systems in accordance with the 
                technical capability criteria and standard operating 
                procedures established under subparagraph (A); and
                  ``(C) continually monitor the technologies, 
                processes, and techniques used to inspect cargo at 
                ports designated under CSI.
          ``(2) Consistency of standards and procedures.--The Secretary 
        shall ensure that the technical capability criteria and 
        standard operating procedures established under paragraph 
        (1)(A) are consistent with such standards and procedures of any 
        other department or agency of the Federal government with 
        respect to deployment of nuclear and radiological detection 
        systems outside the United States.
          ``(3) Foreign assistance.--
                  ``(A) In general.--The Secretary, in consultation 
                with the Secretary of State, the Secretary of Energy, 
                and the heads of other Federal agencies, shall identify 
                foreign assistance programs that could facilitate the 
                implementation of cargo security antiterrorism measures 
                at ports designated under CSI and foreign ports not 
                designated under CSI that lack effective antiterrorism 
                measures.
                  ``(B) Acquisition.--The Secretary is authorized to 
                loan or otherwise assist in the deployment of 
                nonintrusive inspection or nuclear and radiological 
                detection systems for cargo containers at each 
                designated CSI port under such terms and conditions as 
                the Secretary determines to be appropriate and to 
                provide training for foreign personnel involved in CSI.
  ``(e) Prohibition.--
          ``(1) In general.--The Secretary shall issue a `do not load' 
        order to each port designated under CSI to prevent the onload 
        of any cargo that has been identified as higher risk by the 
        Automated Targeting System unless the cargo--
                  ``(A) is scanned with a non intrusive imagery device 
                and nuclear or radiological detection equipment;
                  ``(B) is devanned and inspected with nuclear or 
                radiological detection equipment; or
                  ``(C) is determined to be of lower risk following 
                additional inquiries by appropriate personnel of U.S. 
                Customs and Border Protection.
          ``(2) Rule of construction.--Nothing in this subsection shall 
        be construed to interfere with the ability of the Secretary to 
        deny entry of any cargo into the United States.
  ``(f) Report.--The Secretary shall submit to the appropriate 
congressional committees not later than March 1 of each year a report 
on the status of CSI, including--
          ``(1) a description of the security improvements gained 
        through CSI;
          ``(2) the rationale for the continuance of each port 
        designated under CSI;
          ``(3) an assessment of the personnel needs at each port 
        designated under CSI; and
          ``(4) a description of the potential for remote targeting to 
        decrease the number of personnel who are deployed at foreign 
        ports under CSI.
  ``(g) Authorization of Appropriations.--There are authorized to be 
appropriated $196,000,000 for each of the fiscal years 2007 through 
2012 to carry out this section.

``SEC. 1806. INFORMATION SHARING RELATING TO SUPPLY CHAIN SECURITY 
                    COOPERATION.

  ``(a)  Purposes.--The purposes of this section are--
          ``(1) to establish continuing liaison and to provide for 
        supply chain security cooperation between Department and the 
        private sector; and
          ``(2) to provide for regular and timely interchange of 
        information between the private sector and the Department 
        concerning developments and security risks in the supply chain 
        environment.
  ``(b) Secure System.--The Secretary shall develop a secure electronic 
data interchange system to collect from and share appropriate risk 
information related to securing the supply chain with the private 
sector entities determined appropriate by the Secretary.
  ``(c) Consultation.--In developing the system under subsection (b), 
the Secretary shall consult with the Commercial Operations Advisory 
Committee and a broad range of public and private sector entities 
likely to utilize the system, including importers, exporters, carriers, 
customs brokers, and freight forwarders, among other parties.
  ``(d) Procedures.--The Secretary shall establish uniform procedures 
for the receipt, care, and storage of supply chain security information 
that is voluntarily submitted to the Department through the system 
developed under subsection (b).
  ``(e) Limitations.--The voluntary information collected through the 
system developed under subsection (b) shall be used exclusively for 
ensuring security and shall not be used for determining entry or for 
any other commercial enforcement purpose. The voluntary information 
submitted to the Department through the system developed under 
subsection (b) shall not be construed to constitute compliance with any 
requirement to submit such information to a Federal agency under any 
other provision of law.
  ``(f) Participants.--The Secretary shall develop protocols for 
determining appropriate private sector personnel who shall have access 
to the system developed under subsection (b). Such personnel shall 
include designated security officers within companies that are 
determined to be low risk through participation in the Customs-Trade 
Partnership Against Terrorism program established pursuant to subtitle 
B of this title.
  ``(g) Confidentiality.--Notwithstanding any other provision of law, 
information that is voluntarily submitted by the private sector to the 
Department through the system developed under subsection (b)--
          ``(1) shall be exempt from disclosure under section 552 of 
        title 5, United States Code (commonly referred to as the 
        Freedom of Information Act);
          ``(2) shall not, without the written consent of the person or 
        entity submitting such information, be used directly by the 
        Department or a third party, in any civil action arising under 
        Federal or State law if such information is submitted in good 
        faith; and
          ``(3) shall not, without the written consent of the person or 
        entity submitting such information, be used or disclosed by any 
        officer or employee of the United States for purposes other 
        than the purposes of this section, except--
                  ``(A) in furtherance of an investigation or other 
                prosecution of a criminal act; or
                  ``(B) when disclosure of the information would be--
                          ``(i) to either House of Congress, or to the 
                        extent of matter within its jurisdiction, any 
                        committee or subcommittee thereof, any joint 
                        committee thereof or subcommittee of any such 
                        joint committee; or
                          ``(ii) to the Comptroller General, or any 
                        authorized representative of the Comptroller 
                        General, in the course of the performance of 
                        the duties of the Comptroller General.
  ``(h)  Independently Obtained Information.--Nothing in this section 
shall be construed to limit or otherwise affect the ability of a 
Federal, State, or local, government entity, under applicable law, to 
obtain supply chain security information, including any information 
lawfully and properly disclosed generally or broadly to the public and 
to use such information in any manner permitted by law.
  ``(i) Penalties.--Whoever, being an officer or employee of the United 
States or of any department or agency thereof, knowingly publishes, 
divulges, discloses, or makes known in any manner or to any extent not 
authorized by law, any supply chain security information protected in 
this section from disclosure, shall be fined under title 18, United 
States Code, imprisoned not more than 1 year, or both, and shall be 
removed from office or employment.
  ``(j) Authority to Issue Warnings.--The Secretary may provide 
advisories, alerts, and warnings to relevant companies, targeted 
sectors, other governmental entities, or the general public regarding 
potential risks to the supply chain as appropriate. In issuing a 
warning, the Secretary shall take appropriate actions to protect from 
disclosure--
          ``(1) the source of any voluntarily submitted supply chain 
        security information that forms the basis for the warning; and
          ``(2) information that is proprietary, business sensitive, 
        relates specifically to the submitting person or entity, or is 
        otherwise not appropriately in the public domain.

   ``Subtitle B--Customs-Trade Partnership Against Terrorism (C-TPAT)

``SEC. 1811. ESTABLISHMENT.

  ``(a) Establishment.--The Secretary is authorized to establish a 
voluntary program (to be known as the `Customs-Trade Partnership 
Against Terrorism' or `C-TPAT') to strengthen and improve the overall 
security of the international supply chain and United States border 
security.
  ``(b) Minimum Security Requirements.--The Secretary shall review the 
minimum security requirements of C-TPAT at least once every year and 
update such requirements as necessary.

``SEC. 1812. ELIGIBLE ENTITIES.

  ``Importers, brokers, forwarders, air, sea, land carriers, and other 
entities in the international supply chain and intermodal 
transportation system are eligible to apply to voluntarily enter into 
partnerships with the Department under C-TPAT.

``SEC. 1813. MINIMUM REQUIREMENTS.

  ``An applicant seeking to participate in C-TPAT shall--
          ``(1) demonstrate a history of moving commerce in the 
        international supply chain;
          ``(2) conduct an assessment of its supply chains based upon 
        security criteria established by the Secretary, including--
                  ``(A) business partner requirements;
                  ``(B) container security;
                  ``(C) physical security and access controls;
                  ``(D) personnel security;
                  ``(E) procedural security;
                  ``(F) security training and threat awareness; and
                  ``(G) information technology security;
          ``(3) implement and maintain security measures and supply 
        chain security practices meeting security criteria; and
          ``(4) meet all other requirements established by the 
        Secretary.

``SEC. 1814. TIER ONE PARTICIPANTS.

  ``(a) Benefits.--The Secretary may offer limited benefits to C-TPAT 
participants whose security measures and supply chain security 
practices have been certified in accordance with the guidelines 
established pursuant to subsection (b).
  ``(b) Guidelines.--The Secretary shall update guidelines for 
certifying a C-TPAT participant's security measures and supply chain 
security practices under this section.

``SEC. 1815. TIER TWO PARTICIPANTS.

  ``(a) In General.--Not later than one year after a C-TPAT participant 
has been certified under section 1814, the Secretary shall validate, 
directly or through third party entities certified in accordance with 
section 1817, the security measures and supply chain security practices 
of that participant. Such validation shall include assessments at 
appropriate foreign locations utilized by the participant as part of 
the supply chain.
  ``(b) Consequences for Failed Validation.--If a C-TPAT participant's 
security measures and supply chain security practices fail to meet the 
validation requirements under this section, the Commissioner of U.S. 
Customs and Border Protection may--
          ``(1) deny the participant benefits under C-TPAT on a 
        temporary or permanent basis; or
          ``(2) suspend or expel the participant from C-TPAT.
  ``(c) Right of Appeal.--A C-TPAT participant described in subsection 
(b) may file an appeal with the Secretary of the Commissioner's 
decision under subsection (b)(1) to deny benefits under C-TPAT or under 
subsection (b)(2) to suspend or expel the participant from C-TPAT.
  ``(d) Benefits.--The Secretary shall extend benefits to each C-TPAT 
participant that has been validated under this section, which may 
include--
          ``(1) reduced examinations; and
          ``(2) priority processing for searches.

``SEC. 1816. TIER THREE PARTICIPANTS.

  ``(a) In General.--The Secretary shall establish a third tier of C-
TPAT that offers additional benefits to C-TPAT participants that 
demonstrate a sustained commitment beyond the minimum criteria for 
participation in C-TPAT.
  ``(b) Additional Criteria.--The Secretary shall designate criteria 
for C-TPAT participants under this section that may include criteria to 
ensure--
          ``(1) cargo is loaded on a vessel with a vessel security plan 
        approved under section 70103(c) of title 46, United States 
        Code, or on a vessel with a valid International Ship Security 
        Certificate as provided for under part 104 of title 33, Code of 
        Federal Regulations;
          ``(2) container security devices and related policies and 
        practices that exceed the standards and procedures established 
        by the Secretary are utilized; and
          ``(3) cargo complies with any other requirements determined 
        by the Secretary.
  ``(c) Benefits.--The Secretary, in consultation with the Commercial 
Operations Advisory Committee and the National Maritime Security 
Advisory Committee, may provide benefits to C-TPAT participants under 
this section, which may include--
          ``(1) the expedited release of tier three cargo into 
        destination ports within the United States during all threat 
        levels designated by the Secretary;
          ``(2) reduced or streamlined bonding requirements that are 
        consistent with obligations under other applicable provisions 
        of law;
          ``(3) preference to vessels;
          ``(4) further reduced examinations;
          ``(5) priority processing for examinations;
          ``(6) further reduced scores in the Automated Targeting 
        System; and
          ``(7) streamlined billing of any customs duties or fees.
  ``(d) Definition.--In this section, the term `container security 
device' means a mechanical or electronic device designed to, at a 
minimum, detect unauthorized intrusion of containers.

``SEC. 1817. CONSEQUENCES FOR LACK OF COMPLIANCE.

  ``(a) In General.--If a C-TPAT participant's security measures and 
supply chain security practices fail to meet any of the requirements 
under this subtitle, the Secretary may deny the participant benefits in 
whole or in part under this subtitle.
  ``(b) False or Misleading Information.--If a C-TPAT participant 
intentionally provides false or misleading information to the Secretary 
or a third party entity during the validation process of the 
participant under this subtitle, the Commissioner of U.S. Customs and 
Border Protection shall suspend or expel the participant from C-TPAT 
for a period of not less than five years.
  ``(c) Right of Appeal.--A C-TPAT participant described in subsection 
(a) may file an appeal with the Secretary of the Secretary's decision 
under subsection (a) to deny benefits under this subtitle. A C-TPAT 
participant described in subsection (b) may file an appeal with the 
Secretary of the Commissioner's decision under subsection (b) to 
suspend or expel the participant from C-TPAT.

``SEC. 1818. VALIDATIONS BY THIRD PARTY ENTITIES.

  ``(a) In General.--In conducting the pilot program under subsection 
(f), and if the Secretary determines to expand the use of third party 
entities to conduct validations of C-TPAT participants upon completion 
of the pilot program under subsection (f), the Secretary shall--
          ``(1) develop, document, and update, as necessary, minimum 
        standard operating procedures and requirements applicable to 
        such entities for the conduct of such validations; and
          ``(2) meet all requirements under subtitle G of the title 
        VIII of this Act to review and designate such minimum standard 
        operating procedures as a qualified anti-terrorism technology 
        for purposes of such subtitle.
  ``(b) Certification of Third Party Entities.--
          ``(1) Issuance of certificate of conformance.--In accordance 
        with section 863(d)(3) of this Act, the Secretary shall issue a 
        certificate of conformance to a third party entity to conduct 
        validations under this subtitle if the entity--
                  ``(A) demonstrates to the satisfaction of the 
                Secretary the ability to perform validations in 
                accordance with standard operating procedures and 
                requirements (or updates thereto) designated as a 
                qualified anti-terrorism technology by the Secretary 
                under subsection (a); and
                  ``(B) agrees--
                          ``(I) to perform validations in accordance 
                        with such standard operating procedures and 
                        requirements (or updates thereto); and
                          ``(ii) to maintain liability insurance 
                        coverage at policy limits and in accordance 
                        with conditions to be established by the 
                        Secretary pursuant to section 864 of this Act; 
                        and
                  ``(C) signs an agreement to protect all proprietary 
                information of C-TPAT participants with respect to 
                which the entity will conduct validations.
          ``(2) Litigation and risk management protections.--A third 
        party entity that maintains liability insurance coverage at 
        policy limits and in accordance with conditions to be 
        established by the Secretary pursuant to section 864 of this 
        Act and receives a certificate of conformance under paragraph 
        (1) shall receive all applicable litigation and risk management 
        protections under sections 863 and 864 of this Act.
          ``(3) Reciprocal waiver of claims.--A reciprocal waiver of 
        claims shall be deemed to have been entered into between a 
        third party entity that receives a certificate of conformance 
        under paragraph (1) and its contractors, subcontractors, 
        suppliers, vendors, customers, and contractors and 
        subcontractors of customers involved in the use or operation of 
        the validation services of the third party entity.
  ``(c) Information for Establishing Limits of Liability Insurance.--A 
third party entity seeking a certificate of conformance under 
subsection (b)(1) shall provide to the Secretary necessary information 
for establishing the limits of liability insurance required to be 
maintained by the entity under section 864(a) of this Act.
  ``(d) Additional Requirements.--The Secretary shall ensure that--
          ``(1) any third party entity under this section--
                  ``(A) has no beneficial interest in or any direct or 
                indirect control over the C-TPAT participant that is 
                contracting for the validation services; and
                  ``(B) has no other conflict of interest with respect 
                to the C-TPAT participant; and
          ``(2) the C-TPAT participant has entered into a contract with 
        the third party entity under which the C-TPAT participant 
        agrees to pay all costs associated with the validation.
  ``(e) Monitoring.--
          ``(1) In general.--The Secretary shall regularly monitor and 
        inspect the operations of a third party entity conducting 
        validations under this subtitle to ensure that the entity is 
        meeting the minimum standard operating procedures and 
        requirements for the validation of C-TPAT participants 
        established under subsection (a) and all other applicable 
        requirements for validation services under this subtitle.
          ``(2) Revocation.--If the Secretary finds that a third party 
        entity is not meeting the minimum standard operating procedures 
        and requirements, the Secretary shall--
                  ``(A) revoke the entity's certificate of conformance 
                issued under subsection (b)(1); and
                  ``(B) review any validations conducted by the entity.
  ``(f) Pilot Program.--
          ``(1) In general.--The Secretary shall carry out a pilot 
        program to test the feasibility, costs, and benefits of 
        utilizing third party entities to conduct validations of C-TPAT 
        participants. In conducting the pilot program, the Secretary 
        shall comply with all applicable requirements of this section 
        with respect to eligibility of third party entities to conduct 
        validations of C-TPAT participants.
          ``(2) Report.--Not later than 30 days after the completion of 
        the pilot program conducted pursuant to paragraph (1), the 
        Secretary shall submit to the appropriate congressional 
        committees a report that contains--
                  ``(A) the results of the pilot program; and
                  ``(B) the determination of the Secretary whether or 
                not to expand the use of third party entities to 
                conduct validations of C-TPAT participants.

``SEC. 1819. REVALIDATION.

  ``The Secretary shall establish a process for revalidating C-TPAT 
participants under this subtitle. Such revalidation shall occur not 
less frequently than once during every 3-year period following the 
initial validation.

``SEC. 1820. NON-CONTAINERIZED CARGO.

  ``The Secretary may consider the potential for participation in C-
TPAT by importers of non-containerized cargoes that otherwise meet the 
requirements under this subtitle.

``SEC. 1821. AUTHORIZATION OF APPROPRIATIONS.

  ``There are authorized to be appropriated $75,000,000 for each of the 
fiscal years 2007 through 2012 to carry out this subtitle.

                 ``Subtitle C--Miscellaneous Provisions

``SEC. 1831. RESEARCH, DEVELOPMENT, TEST, AND EVALUATION EFFORTS IN 
                    FURTHERANCE OF MARITIME AND CARGO SECURITY.

  ``(a) In General.--The Secretary shall--
          ``(1) direct research, development, test, and evaluation 
        efforts in furtherance of maritime and cargo security;
          ``(2) encourage the ingenuity of the private sector in 
        developing and testing technologies and process innovations in 
        furtherance of these objectives; and
          ``(3) evaluate such technologies.
  ``(b) Coordination.--The Secretary, in coordination with the 
Undersecretary for Science and Technology, the Director of the Domestic 
Nuclear Detection Office of the Department, and the heads of other 
appropriate offices or entities of the Department, shall ensure that--
          ``(1) research, development, test, and evaluation efforts 
        funded by the Department in furtherance of maritime and cargo 
        security are coordinated to avoid duplication of efforts; and
          ``(2) the results of such efforts are shared throughout the 
        Department and other Federal, State, and local agencies, as 
        appropriate.

``SEC. 1832. GRANTS UNDER OPERATION SAFE COMMERCE.

  ``(a) In General.--The Secretary shall provide grants, as part of 
Operation Safe Commerce, to--
          ``(1) integrate nonintrusive imaging inspection and nuclear 
        and radiological detection systems with automatic 
        identification methods for containers, vessels, and vehicles;
          ``(2) test physical access control protocols and technologies 
        to include continuous tracking devices that provide real-time 
        monitoring and reporting;
          ``(3) create a data sharing network capable of transmitting 
        data required by entities participating in the international 
        supply chain from every intermodal transfer point to the 
        National Targeting Center of the Department; and
          ``(4) otherwise further maritime and cargo security, as 
        determined by the Secretary.
  ``(b) Supply Chain Security for Special Container and 
Noncontainerized Cargo.--In providing grants under subsection (a), the 
Secretary shall establish demonstration projects that further the 
security of the international supply chain, including refrigerated 
containers, and noncontainerized cargo, including roll-on/roll-off, 
break-bulk, liquid, and dry bulk cargo, through real-time, continuous 
tracking technology for special or high-risk container cargo that poses 
unusual potential for human or environmental harm.
  ``(c) Competitive Selection Process.--The Secretary shall select 
recipients of grants under subsection (a) through a competitive process 
on the basis of the following criteria:
          ``(1) The extent to which the applicant can demonstrate that 
        personnel, laboratory, and organizational resources will be 
        available to the applicant to carry out the activities 
        authorized under this section.
          ``(2) The applicant's capability to provide leadership in 
        making national and regional contributions to the solution of 
        maritime and cargo security issues.
          ``(3) The extent to which the applicant's programs, projects, 
        and activities under the grant will address highest risk 
        priorities as determined by the Secretary.
          ``(4) The extent to which the applicant has a strategic plan 
        for carrying out the programs, projects, and activities under 
        the grant.
          ``(5) Any other criteria the Secretary determines to be 
        appropriate.
  ``(d) Administrative Provisions.--
          ``(1) Prohibition on duplication of effort.--Before providing 
        any grant under subsection (a), the Secretary shall coordinate 
        with other Federal departments and agencies to ensure the grant 
        will not duplicate work already being carried out with Federal 
        funding.
          ``(2) Accounting, reporting, and review procedures.--The 
        Secretary shall establish accounting, reporting, and review 
        procedures to ensure that--
                  ``(A) amounts made available under a grant provided 
                under subsection (a)--
                          ``(i) are used for the purpose for which such 
                        amounts were made available; and
                          ``(ii) are properly accounted for; and
                  ``(B) amounts not used for such purpose and amounts 
                not expended are recovered.
          ``(3) Recordkeeping.--The recipient of a grant under 
        subsection (a) shall keep all records related to expenditures 
        and obligations of amounts provided under the grant and make 
        such records available upon request to the Secretary for audit 
        and examination.
          ``(4) Review.--The Secretary shall annually review the 
        programs, projects, and activities carried out using amounts 
        made available under grants provided under subsection (a) to 
        ensure that obligations and expenditures of such amounts are 
        consistent with the purposes for which such amounts are made 
        available.
  ``(e) Annual Report.--Not later than March 1 of each year, the 
Secretary shall submit to the appropriate congressional committees a 
report detailing the results of Operation Safe Commerce.
  ``(f) Definition.--In this section, the term `Operation Safe 
Commerce' means the research, development, test, and evaluation grant 
program that brings together private sector shareholders, port 
officials, and Federal, State, and local representatives to analyze 
existing security procedures for cargo and develop new security 
protocols that have the potential to increase the security of cargo 
shipments by monitoring the movement and integrity of cargo through the 
international supply chain.
  ``(g) Authorization of Appropriations.--
          ``(1) In general.--Subject to paragraph (2), there are 
        authorized to be appropriated $25,000,000 for each of fiscal 
        years 2007 through 2012 to carry out this section.
          ``(2) Effective date.--Paragraph (1) shall be effective 
        beginning on the date on which the Secretary submits to the 
        appropriate congressional committees a report on the 
        implementation and results of grants provided under Operation 
        Safe Commerce before the date of the enactment of the Security 
        and Accountability For Every Port Act.

``SEC. 1833. DEFINITIONS.

  ``In this title, the following definitions apply:
          ``(1) Automated targeting system.--The term `Automated 
        Targeting System' means the rules-based system incorporating 
        intelligence material and import transaction history, 
        established by U.S. Customs and Border Protection to target 
        high risk shipments of cargo.
          ``(2) Examination.--The term `examination' means a physical 
        inspection or the imaging and radiation screening of a 
        conveyance using non-intrusive inspection (NII) technology, for 
        the presence of contraband.
          ``(3) Inspection.--The term `inspection' means the 
        comprehensive process used by U.S. Customs and Border 
        Protection for assessing goods entering the United States to 
        appraise them for duty purposes, to detect the presence of 
        restricted or prohibited items, and to ensure compliance with 
        all applicable laws. This process may include screening, 
        conducting an examination, or conducting a search.
          ``(4) International supply chain.--The term `international 
        supply chain' means the end-to-end process for shipping goods 
        from a point of origin overseas to and from the United States.
          ``(5) Nuclear and radiological detection system.--The term 
        `nuclear and radiological detection system' means any 
        technology that is capable of detecting or identifying nuclear 
        and radiological material or explosive devices.
          ``(6) Screening.--The term `screening' means a visual or 
        automated review of information about goods, including manifest 
        or entry documentation accompanying a shipment being imported 
        into the United States, to determine or assess the threat of 
        such cargo.
          ``(7) Search.--The term `search' means an intrusive 
        examination in which a container is opened and its contents are 
        de-vanned and visually inspected for the presence of 
        misdeclared, restricted, or prohibited items.''.
  (b) Clerical Amendment.--The table of contents in section 1(b) of the 
Homeland Security Act of 2002 (116 Stat. 2135) is amended by adding at 
the end the following:

       ``TITLE XVIII--SECURITY OF THE INTERNATIONAL SUPPLY CHAIN

                    ``Subtitle A--General Provisions

``Sec. 1801. Strategic plan to enhance the security of the 
international supply chain.
``Sec. 1802. Transmission of additional data elements for improved high 
risk targeting.
``Sec. 1803. Plan to improve the Automated Targeting System.
``Sec. 1804. Container standards and verification procedures.
``Sec. 1805. Container Security Initiative (CSI).
``Sec. 1806. Information sharing relating to supply chain security 
cooperation.

   ``Subtitle B--Customs-Trade Partnership Against Terrorism (C-TPAT)

``Sec. 1811. Establishment.
``Sec. 1812. Eligible entities.
``Sec. 1813. Minimum requirements.
``Sec. 1814. Tier one participants.
``Sec. 1815. Tier two participants.
``Sec. 1816. Tier three participants.
``Sec. 1817. Consequences for lack of compliance.
``Sec. 1818. Validations by third party entities.
``Sec. 1819. Revalidation.
``Sec. 1820. Non-containerized cargo.
``Sec. 1821. Authorization of appropriations.

                 ``Subtitle C--Miscellaneous Provisions

``Sec. 1831. Research, development, test, and evaluation efforts in 
furtherance of maritime and cargo security.
``Sec. 1832. Grants under Operation Safe Commerce.
``Sec. 1833. Definitions.''.
  (c) Effective Dates.--The Secretary of Homeland Security shall--
          (1) submit to the appropriate congressional committees the 
        report required by section 1801(e)(1) of the Homeland Security 
        Act of 2002, as added by subsection (a), not later than 180 
        days after the date of enactment of this Act;
          (2) promulgate regulations under section 1802(b) of the 
        Homeland Security Act of 2002, as added by subsection (a), not 
        later than one year after the date of the enactment of this 
        Act;
          (3) develop and implement the plan to improve the Automated 
        Targeting System under section 1803(a) of the Homeland Security 
        Act of 2002, as added by subsection (a), not later than 180 
        days after the date of the enactment of this Act,
          (4) develop the standards and verification procedures 
        described in section 1804(a)(1) of the Homeland Security Act of 
        2002, as added by subsection (a), not later than 180 days after 
        the date of the enactment of this Act;
          (5) begin exercising authority to issue a ``do not load'' 
        order to each port designated under CSI pursuant to section 
        1805(e) of the Homeland Security Act of 2002, as added by 
        subsection (a), not later than 180 days after the date of the 
        enactment of this Act;
          (6) develop the secure electronic data interchange system 
        under section 1806(b) of the Homeland Security Act of 2002, as 
        added by subsection (a), not later than one year after the date 
        of the enactment of this Act;
          (7) update guidelines for certifying a C-TPAT participant's 
        security measures and supply chain security practices under 
        section 1814(b) of the Homeland Security Act of 2002, as added 
        by subsection (a), not later than 180 days after the date of 
        the enactment of this Act;
          (8) develop a schedule and update guidelines for validating a 
        C-TPAT participant's security measures and supply chain 
        security practices under section 1815 of the Homeland Security 
        Act of 2002, as added by subsection (a), not later than 180 
        days after the date of enactment of this Act;
          (9) provide appropriate benefits described in subsection (d) 
        of section 1816 of the Homeland Security Act of 2002, as added 
        by subsection (a), to C-TPAT participants under section 1816 of 
        such Act beginning not later than two years after the date of 
        the enactment of this Act; and
          (10) carry out the pilot program described in section 1818(f) 
        of the Homeland Security Act of 2002, as added by subsection 
        (a), beginning not later than one year after the date of the 
        enactment of this Act for a duration of not less than a one-
        year period.

SEC. 202. NEXT GENERATION SUPPLY CHAIN SECURITY TECHNOLOGIES.

  (a) Evaluation of Emerging Technologies.--While maintaining the 
current layered, risk-based approach to screening, scanning, and 
inspecting cargo at foreign ports bound for the United States in 
accordance with existing statutory provisions, the Secretary of 
Homeland Security shall evaluate the development of nuclear and 
radiological detection systems and other inspection technologies for 
use at foreign seaports to increase the volume of containers scanned 
prior to loading on vessels bound for the United States.
  (b) Emerging Technology.--Not later than one year after the date of 
the enactment of this Act, the Secretary shall, having evaluated 
emerging technologies under subsection (a), determine if more capable, 
commercially available technology exists, and whether such technology--
          (1) has a sufficiently low false alarm rate for use in the 
        supply chain;
          (2) is capable of being deployed and operated at ports 
        overseas;
          (3) is capable of integrating, where necessary, with existing 
        systems;
          (4) does not significantly impact trade capacity and flow of 
        cargo at foreign or United States ports; and
          (5) provides an automated notification of questionable or 
        high-risk cargo as a trigger for further inspection by 
        appropriately trained personnel.
  (c) Contingent Implementation.--If the Secretary determines the 
available technology meets the criteria outlined in subsection (b), the 
Secretary, in cooperation with the Secretary of State, shall within 180 
days of such determination, seek to secure the cooperation of foreign 
governments to initiate and maximize the use of such technology at 
foreign ports to scan all cargo possible.
  (d) International Cooperation.--If the Secretary determines that a 
proposed technology meets the requirements of subsection (b), but 
cannot be implemented as a result of a foreign government's refusal to 
cooperate in the phased deployment, the Secretary may refuse to accept 
containerized cargo from that port.
  (e) Report.--The Secretary shall submit to the appropriate 
congressional committees on an annual basis a report on the evaluation 
performed under subsections (a) and (b), the status of any 
implementation initiated in accordance with subsection (c), and a 
detailed assessment of the level of cooperation of foreign governments, 
as well as any actions taken by the Secretary under subsection (d).
  (f) Definition.--In this section, the term ``nuclear and radiological 
detection system'' means any technology that is capable of detecting or 
identifying nuclear and radiological material or explosive devices.

SEC. 203. UNIFORM DATA SYSTEM FOR IMPORT AND EXPORT INFORMATION.

  (a) Establishment.--The President shall establish and implement a 
single, uniform data system for the electronic collection, 
dissemination, and sharing of import and export information to increase 
the efficiency of data submission and the security of such data related 
to border security, trade, and public health and safety of 
international cargoes.
  (b) Private Sector Consultation.--The President shall consult with 
private sector stakeholders in developing uniform data submission 
requirements, procedures, and schedules under the system established 
pursuant to subsection (a).
  (c) Report.--Not later than 120 days after the date of the enactment 
of this Act, the President shall transmit to the appropriate 
congressional committees a report on the schedule for full 
implementation of the system established pursuant to subsection (a).
  (d) Rule of Construction.--Nothing in this section shall be construed 
to prevent any Federal department or agency from collecting import and 
export information under any other provision of law.

SEC. 204. FOREIGN PORT ASSESSMENTS.

  Section 70108 of title 46, United States Code, is amended by adding 
at the end the following:
  ``(d) Periodic Reassessment.--The Secretary, acting through the 
Commandant of the Coast Guard, shall reassess the effectiveness of 
antiterrorism measures maintained at ports as described under 
subsection (a) and of procedures described in subsection (b) not less 
than every 3 years.''.

SEC. 205. PILOT PROGRAM TO IMPROVE THE SECURITY OF EMPTY CONTAINERS.

  (a) In General.--The Secretary of Homeland Security shall conduct a 
one-year pilot program to evaluate and improve the security of empty 
containers at United States seaports to ensure the safe and secure 
delivery of cargo and to prevent potential acts of terrorism involving 
such containers. The pilot program shall include the use of visual 
searches of empty containers at United States seaports.
  (b) Report.--Not later than 90 days after the completion of the pilot 
program under paragraph (1), the Secretary shall prepare and submit to 
the appropriate congressional committees a report that contains--
          (1) the results of pilot program; and
          (2) the determination of the Secretary whether or not to 
        expand the pilot program.

SEC. 206. STUDY AND REPORT ON ADVANCED IMAGERY PILOT PROGRAMS.

  (a) Study.--
          (1) In general.--The Secretary of Homeland Security, in 
        consultation with the Commissioner of U.S. Customs and Border 
        Protection, shall conduct a study of the merits of current 
        container inspection pilot programs which include nuclear or 
        radiological detection, non-intrusive imagery, and density 
        scanning capabilities.
          (2) Requirements.--The study required under paragraph (1) 
        shall include, at a minimum--
                  (A) an evaluation of the cost, personnel, and 
                infrastructure required to operate the pilot programs, 
                as well as the cost, personnel, and infrastructure 
                required to move the pilot programs into full-scale 
                deployment to screen all cargo imported from foreign 
                ports;
                  (B) an evaluation of the cost, personnel, and 
                infrastructure required by U.S. Customs and Border 
                Protection to validate the data generated from the 
                pilot programs;
                  (C) a summary of best practices and technological 
                advances of the pilot programs that could be integrated 
                into the Container Security Initiative and other 
                container security programs; and
                  (D) an assessment of the impact of technology or 
                processes utilized in the pilot programs on improving 
                cargo operations and security.
  (b) Report.--Not later than 60 days after the date of the enactment 
of this Act, the Secretary shall submit to the appropriate 
congressional committees a report that contains--
          (1) the results of the study required under subsection (a); 
        and
          (2) recommendations to improve container security programs 
        within the Department of Homeland Security.

 TITLE III--DIRECTORATE FOR POLICY, PLANNING, AND INTERNATIONAL AFFAIRS

SEC. 301. ESTABLISHMENT OF DIRECTORATE.

  (a) Establishment.--The Homeland Security Act of 2002 (6 U.S.C. 101 
et seq.) is amended--
          (1) by redesignating title VI as title XIX, and moving such 
        title so as to appear after title XVIII, as added by section 
        201;
          (2) by striking the heading for such title and inserting the 
        following:

                ``TITLE XIX--MISCELLANEOUS PROVISIONS''.

          (3) by redesignating section 601 as section 1901; and
          (4) by inserting after title V the following new title:

        ``TITLE VI--POLICY, PLANNING, AND INTERNATIONAL AFFAIRS

``SEC. 601. DIRECTORATE FOR POLICY, PLANNING, AND INTERNATIONAL 
                    AFFAIRS.

  ``(a) Establishment.--There shall be in the Department a Directorate 
for Policy, Planning, and International Affairs.
  ``(b) Under Secretary for Policy.--
          ``(1) In general.--The head of the Directorate shall be the 
        Under Secretary for Policy, who shall be appointed by the 
        President.
          ``(2) Qualifications.--No individual shall be appointed Under 
        Secretary for Policy under paragraph (1) unless the individual 
        has, by education and experience, demonstrated knowledge, 
        ability, and skill in the fields of policy and strategic 
        planning.
  ``(c) Responsibilities of Under Secretary.--
          ``(1) Policy responsibilities.--Subject to the direction and 
        control of the Secretary, the policy responsibilities of the 
        Under Secretary for Policy shall be as follows:
                  ``(A) To serve as the principal policy advisor to the 
                Secretary.
                  ``(B) To provide overall direction and supervision of 
                policy development for the programs, offices, and 
                activities of the Department.
                  ``(C) To establish and implement a formal 
                policymaking process for the Department.
                  ``(D) To analyze, evaluate, and review the completed, 
                ongoing, and proposed programs of the Department to 
                ensure they are compatible with the statutory and 
                regulatory responsibilities of the Department and with 
                the Secretary's priorities, strategic plans, and 
                policies.
                  ``(E) To ensure that the budget of the Department 
                (including the development of future year budgets and 
                interaction with the Office of Management and Budget 
                and with Congress) is compatible with the statutory and 
                regulatory responsibilities of the Department and with 
                the Secretary's priorities, strategic plans, and 
                policies.
                  ``(F) To represent the Department in any development 
                of policy that requires the Department to consult with 
                another Federal agency, the Office of the President, a 
                foreign government, or any other governmental or 
                private sector entity.
                  ``(G) To supervise and oversee policy development 
                undertaken by the component agencies and offices of the 
                Department.
          ``(2) Strategic planning responsibilities.--Subject to the 
        direction and control of the Secretary, the strategic planning 
        responsibilities of the Under Secretary for Policy shall be as 
        follows:
                  ``(A) To conduct long-range, strategic planning for 
                the Department.
                  ``(B) To prepare national and Department strategies, 
                as appropriate.
                  ``(C) To conduct net assessments of issues facing the 
                Department.
          ``(3) International responsibilities.--Subject to the 
        direction and control of the Secretary, the international 
        responsibilities of the Under Secretary for Policy shall be as 
        follows:
                  ``(A) To promote the exchange of information and the 
                sharing of best practices and technology relating to 
                homeland security with nations friendly to the United 
                States, including--
                          ``(i) the exchange of information on research 
                        and development on homeland security 
                        technologies;
                          ``(ii) joint training exercises of first 
                        responders in coordination with the Assistant 
                        Secretary for Grants and Training; and
                          ``(iii) exchanging expertise and information 
                        on terrorism prevention, response, and crisis 
                        management.
                  ``(B) To identify any homeland security-related area 
                in which the United States and other nations and 
                appropriate international organizations could 
                collaborate to improve capabilities and to encourage 
                the exchange of information or sharing of best 
                practices and technology relating to that area.
                  ``(C) To plan and participate in international 
                conferences, exchange programs (including the exchange 
                of scientists, engineers, and other experts), and other 
                training activities with friendly nations
                  ``(D) To manage international activities within the 
                Department in coordination with other Federal officials 
                with responsibility for counterterrorism matters.
                  ``(E) To oversee the activities of Department 
                personnel operating in other countries or traveling to 
                other countries,
                  ``(F) To represent the Department in international 
                negotiations, working groups, and standards-setting 
                bodies.
          ``(4) Private sector.--
                  ``(A) To create and foster strategic communications 
                with the private sector to enhance the primary mission 
                of the Department to protect the United States.
                  ``(B) To advise the Secretary on the impact on the 
                private sector of the policies, regulations, processes, 
                and actions of the Department.
                  ``(C) To create and manage private sector advisory 
                councils composed of representatives of industries and 
                associations designated by the Secretary--
                          ``(i) to advise the Secretary on private 
                        sector products, applications, and solutions as 
                        they relate to homeland security challenges; 
                        and
                          ``(ii) to advise the Secretary on homeland 
                        security policies, regulations, processes, and 
                        actions that affect the participating 
                        industries and associations.
                  ``(D) To promote existing public-private partnerships 
                and develop new public-private partnerships to provide 
                for collaboration and mutual support to address 
                homeland security challenges.
                  ``(E) To identify private sector resources and 
                capabilities that could be effective in supplementing 
                functions of the Department and State and local 
                governments to prevent or respond to acts of terrorism.
                  ``(F) To coordinate among the Department's operating 
                entities and with the Assistant Secretary for Trade 
                Development of the Department of Commerce on issues 
                related to the travel and tourism industries.

``SEC. 602. OFFICE OF INTERNATIONAL AFFAIRS.

  ``(a) Establishment.--There is established within the Directorate of 
Policy, Planning, and International Affairs an Office of International 
Affairs. The Office shall be headed by an Assistant Secretary, who 
shall be appointed by the Secretary.
  ``(b) Duties of the Assistant Secretary.--The Assistant Secretary 
shall have the following duties:
          ``(1) To promote information and education exchange with 
        nations friendly to the United States in order to promote 
        sharing of best practices and technologies relating to homeland 
        security. Such exchange shall include the following:
                  ``(A) Exchange of information on research and 
                development on homeland security technologies.
                  ``(B) Joint training exercises of first responders.
                  ``(C) Exchange of expertise on terrorism prevention, 
                response, and crisis management.
          ``(2) To identify areas for homeland security information and 
        training exchange where the United States has a demonstrated 
        weakness and another friendly nation or nations have a 
        demonstrated expertise.
          ``(3) To plan and undertake international conferences, 
        exchange programs, and training activities.
          ``(4) To manage international activities within the 
        Department in coordination with other Federal officials with 
        responsibility for counter-terrorism matters.

``SEC. 603. OTHER OFFICES AND OFFICIALS.

  ``(a) In General.--The Under Secretary for Policy shall establish the 
following offices in the Directorate for Policy, Planning, and 
International Affairs:
          ``(1) The Office of Policy, which shall be administered by an 
        Assistant Secretary for Policy.
          ``(2) The Office of Strategic Plans, which shall be 
        administered by an Assistant Secretary for Strategic Plans and 
        which shall include--
                  ``(A) a Secure Border Initiative Program Office; and
                  ``(B) a Screening Coordination and Operations Office.
          ``(3) The Office of the Private Sector, which shall be 
        administered by an Assistant Secretary for the Private Sector.
          ``(4) The Victim Assistance Officer.
          ``(5) The Tribal Security Officer.
          ``(6) Such other offices as considered necessary by the Under 
        Secretary for Policy.
  ``(b) Director of Cargo Security Policy.--
          ``(1) In general.--There shall be in the Directorate for 
        Policy, Planning, and International Affairs a Director of Cargo 
        Security Policy (hereinafter in this section referred to as the 
        `Director'), who shall be subject to the direction and control 
        of the Under Secretary for Policy.
          ``(2) Responsibilities.--The Director shall--
                  ``(A) advise the Assistant Secretary for Policy 
                regarding all aspects of Department programs relating 
                to cargo security;
                  ``(B) develop Department-wide policies regarding 
                cargo security; and
                  ``(C) coordinate the cargo security policies and 
                programs of the Department with other Federal 
                departments and agencies, including by working with 
                officials of the Department of Energy and the 
                Department of State, as appropriate, in negotiating 
                international agreements relating to cargo security.''.
  (b) Conforming Amendments.--Section 879 of the Homeland Security Act 
of 2002 (6 U.S.C. 459) is repealed.
  (c) Clerical Amendments.--The table of contents in section 1(b) of 
such Act is amended--
          (1) by striking the item relating to section 879;
          (2) by striking the items relating to title VI and inserting 
        the following:

        ``TITLE VI--POLICY, PLANNING, AND INTERNATIONAL AFFAIRS

``Sec. 601. Directorate for Policy, Planning, and International 
Affairs.
``Sec. 602. Office of International Affairs.
``Sec. 603. Other offices and officials.''
          (3) by inserting after the items relating to title XVIII the 
        following:

                 ``TITLE XIX--MISCELLANEOUS PROVISIONS

``Sec. 1901. Treatment of charitable trusts for members of the armed 
forces of the United States and other governmental organizations.''.

             TITLE IV--OFFICE OF DOMESTIC NUCLEAR DETECTION

SEC. 401. ESTABLISHMENT OF OFFICE.

  (a) Establishment.--The Homeland Security Act of 2002 (6 U.S.C. 101 
et seq.) is amended by adding at the end the following new title:

            ``TITLE XX--OFFICE OF DOMESTIC NUCLEAR DETECTION

``SEC. 2001. DOMESTIC NUCLEAR DETECTION OFFICE.

  ``(a) In General.--There shall be in the Department of Homeland 
Security a Domestic Nuclear Detection Office.
  ``(b) Purpose.--The purpose of the Office shall be to protect against 
the unauthorized importation, possession, storage, transportation, 
development, or use of a nuclear explosive device, fissile material, or 
radiological material against the United States.
  ``(c) Director.--The Office shall be headed by a Director of Domestic 
Nuclear Detection, who shall be appointed by the President from among 
individuals nominated by the Secretary.
  ``(d) Limitation.--This title shall not be construed to affect the 
performance, by directorates and agencies of the Department other than 
the Office, of functions that are not related to detection and 
prevention of nuclear and radiological terrorism.

``SEC. 2002. FUNCTIONS OF DIRECTOR OF THE DOMESTIC NUCLEAR DETECTION 
                    OFFICE, GENERALLY.

  ``(a) In General.--The Secretary shall vest in the Director the 
primary responsibility in the Department for--
          ``(1) administering all nuclear and radiological detection 
        and prevention functions and assets of the Department, 
        including those functions vested in the Department before the 
        enactment of the Security and Accountability For Every Port 
        Act; and
          ``(2) for coordinating such administration with nuclear and 
        radiological detection and prevention activities of other 
        Federal departments and agencies.
  ``(b) Transfer of Functions.--The Secretary shall transfer to the 
Director the authority to administer, or supervise the administration 
of, all functions, personnel, assets, and liabilities of all Department 
programs and projects relating to nuclear and radiological detection 
research, development, testing, and evaluation, and nuclear and 
radiological detection system acquisition and deployment, including 
with respect to functions and assets transferred by section 303(1)(B), 
(C), and (E) and functions, assets, and personnel transferred pursuant 
to section 2010(c).

``SEC. 2003. GLOBAL NUCLEAR DETECTION ARCHITECTURE.

  ``(a) In General.--The Director shall coordinate the Federal 
Government's implementation of a global nuclear detection architecture.
  ``(b) Functions of Director.--The Director shall, under subsection 
(a)--
          ``(1) design a strategy that will guide deployment of the 
        global nuclear detection architecture;
          ``(2) implement the strategy in the United States; and
          ``(3) coordinate Department and Federal interagency efforts 
        to deploy the elements of the global nuclear detection 
        architecture outside the United States.
  ``(c) Relationship to Other Departments and Agencies.--The authority 
of the Director under this section shall not affect an authority or 
responsibility of any other department or agency of the Federal 
Government with respect to the deployment of nuclear and radiological 
detection systems outside the United States under any program 
administered by that department or agency.

``SEC. 2004. RESEARCH AND DEVELOPMENT.

  ``(a) In General.--The Director shall carry out a research and 
development program to achieve transformational and evolutionary 
improvements in detection capabilities for shielded and unshielded 
nuclear explosive devices and radiological dispersion devices.
  ``(b) High-Risk Projects.--The program shall include funding for 
transformational research and development projects that may have a high 
risk of failure but have the potential to provide significant benefits.
  ``(c) Long-Term Projects.--In order to reflect a long-term commitment 
to the development of more effective detection technologies, the 
program shall include the provision of funding for projects having a 
duration of more than 3 years, as appropriate.
  ``(d) Coordination With Other Federal Programs.--The Director shall 
coordinate implementation of the program with other Federal agencies 
performing similar research and development in order to accelerate the 
development of effective technologies, promote technology sharing, and 
to avoid duplication, including through the use of the interagency 
coordination council established under section 2013.

``SEC. 2005. SYSTEM ASSESSMENTS.

  ``(a) In General.--The Director shall carry out a program to test and 
evaluate technology for detecting nuclear explosive devices and fissile 
or radiological material.
  ``(b) Performance Metrics.--The Director shall establish performance 
metrics for evaluating the effectiveness of individual detectors and 
detection systems in detecting nuclear explosive devices or fissile or 
radiological material--
          ``(1) under realistic operational and environmental 
        conditions; and
          ``(2) against realistic adversary tactics and 
        countermeasures.
  ``(c) Provision of Testing Services.--
          ``(1) In general.--The Director may, under the program, make 
        available testing services to commercial developers of 
        detection devices.
          ``(2) Fees.--The Director may charge fees, as appropriate, 
        for performance of services under this subsection.
  ``(d) System Assessments.--
          ``(1) In general.--The Director shall periodically perform 
        system-wide assessments of the global nuclear detection 
        architecture to identify vulnerabilities and to gauge overall 
        system performance against nuclear and radiological threats.
          ``(2) Included activities.--The assessments shall include--
                  ``(A) red teaming activities to identify 
                vulnerabilities and possible modes of attack and 
                concealment methods; and
                  ``(B) net assessments to determine architecture 
                performance against adversary tactics and concealment 
                methods.
          ``(3) Use.--The Director shall use the assessments to guide 
        deployment of the global nuclear detection architecture and the 
        research and development activities of the Office.

``SEC. 2006. TECHNOLOGY ACQUISITION, DEPLOYMENT, SUPPORT, AND TRAINING.

  ``(a) Acquisition Strategy.--
          ``(1) In general.--The Director shall develop and, subject to 
        the availability of appropriations, execute a strategy for the 
        acquisition and deployment of detection systems in order to 
        implement the Department components of the global nuclear 
        detection architecture developed under section 2003.
          ``(2) Use of available contracting procedures.--The Director 
        shall make use of all contracting procedures available to the 
        Secretary to implement the acquisition strategy.
          ``(3) Determination of qualified anti-terrorism technology.--
        The Director shall make recommendations based on the criteria 
        included in section 862(b) as to whether the detection systems 
        acquired pursuant to this subsection shall be designated by the 
        Secretary as anti-terrorism technologies that qualify for 
        protection under the system of risk management set forth in 
        subtitle G of title VIII. The Undersecretary for Science and 
        Technology shall consider the Director's recommendations and 
        expedite the process of determining whether such detection 
        systems shall be designated as anti-terrorism technologies that 
        qualify for such protection.
  ``(b) Deployment.--The Director shall deploy detection systems for 
use by Department operational units and other end-users in implementing 
the global nuclear detection architecture.
  ``(c) Operational Support and Protocols.--
          ``(1) Operational support.--The Director shall provide 
        operational support for all systems acquired to implement the 
        acquisition strategy developed under subsection (a).
          ``(2) Operational protocols.--The Director shall develop 
        operational protocols for detection technology acquired and 
        deployed to implement the acquisition strategy, including 
        procedures for alarm resolution and notification of appropriate 
        response agencies in the event that illicit nuclear, 
        radioactive, or fissile materials are detected by such a 
        product or service.
          ``(3) Technical reachback.--The Director will ensure that the 
        expertise necessary to accurately interpret detection data is 
        made available in a timely manner for all technology deployed 
        to implement the global nuclear detection architecture.
  ``(d) Training.--The Director shall develop and distribute training 
materials and provide training to all end-users of technology acquired 
by the Director under the acquisition strategy.
  ``(e) Solicitation of End-User Input.--In developing requirements for 
the research and development program of section 2004 and requirements 
for the acquisition of detection systems to implement the strategy in 
subsection (a), the Director shall solicit input from end-users of such 
systems.
  ``(f) State and Local Support.--Upon request, the Director shall 
provide guidance regarding radiation detection technology acquisitions 
to be made by State, territorial, tribal and local governments and 
emergency response providers.

``SEC. 2007. SITUATIONAL AWARENESS.

  ``(a) Detection Information.--The Director--
          ``(1) shall continuously monitor detection information 
        received from foreign and domestic detection systems to 
        maintain for the Department a situational awareness of all 
        nuclear threats;
          ``(2) shall gather and archive--
                  ``(A) detection data measurements taken of benign 
                activities in the normal flows of commerce; and
                  ``(B) alarm data, including false alarms and nuisance 
                alarms.
  ``(b) Information Sharing.--The Director shall coordinate with other 
governmental agencies to ensure that the detection of unauthorized 
nuclear explosive devices, fissile material, or radiological material 
is promptly reported to all appropriate Federal response agencies 
including the Attorney General, the Director of the Federal Bureau of 
Investigation, the Secretary of Defense, and the Secretary of Energy.
  ``(c) Incident Resolution.--The Director shall assess nuclear threats 
communicated by Federal, State, tribal, or local officials and provide 
adequate technical reachback capability for swift and effective 
incident resolution.
  ``(d) Security.--The Director shall--
          ``(1) develop and implement security standards and protocols 
        for the control and protection of all classified or sensitive 
        information in possession of the Office; and
          ``(2) ensure that relevant personnel of the Office have the 
        required security clearances to properly handle such 
        information.

``SEC. 2008. FORENSIC ANALYSIS.

  ``The Director shall perform all research, development, and 
acquisition activities of the Department pertaining to forensic 
analysis and attribution of nuclear and radiological attacks.

``SEC. 2009. THREAT INFORMATION.

  ``(a) Threat Assessments.--The Director shall utilize classified and 
unclassified nuclear and radiological threat assessments in designing 
the global nuclear detection architecture under section 2003, 
prioritizing detection system deployments, and testing and optimizing 
system performance of that architecture, including assessments of--
          ``(1) smuggling routes;
          ``(2) locations of relevant nuclear and radiological material 
        throughout the world;
          ``(3) relevant terrorist tradecraft and concealment methods;
          ``(4) relevant nuclear and radiological threat objects in 
        terms of possible detection signatures.
  ``(b) Access to Information.--The Secretary shall provide the 
Director access to all information relating to nuclear and radiological 
threats, including reports, assessments, analyses, and unevaluated 
intelligence, that is necessary to successfully design, deploy, and 
support the operation of an effective global detection architecture 
under section 1903.
  ``(c) Analytical Support.--The Director shall request that the 
Secretary provide to the Director, pursuant to section 201(d)(18), the 
requisite intelligence and information analysis support necessary to 
effectively discharge the Director's responsibilities.
  ``(d) Analytical Expertise.--For the purposes of performing any of 
the assessments required under subsection (a), the Director, subject to 
the availability of appropriations, may hire professional personnel who 
are analysts with experience in performing nuclear and radiological 
threat assessments.
  ``(e) Collection Requests.--The Director shall recommend to the 
Secretary consultation that should occur pursuant to section 201(d)(10) 
regarding intelligence collection to design, deploy, and support the 
operation of the global detection architecture under section 2003.

``SEC. 2010. ADMINISTRATIVE AUTHORITIES.

  ``(a) Hiring.--In hiring personnel for the Office, the Secretary 
shall have hiring and management authorities described in section 1101 
of the Strom Thurmond National Defense Authorization Act for Fiscal 
Year 1999 (5 U.S.C. 3104 note; Public Law 105-261). The term of 
appointments for employees under subsection (c)(1) of that section may 
not exceed 5 years before granting any extension under subsection 
(c)(2) of that section.
  ``(b) Detail of Personnel.--In order to assist the Director in 
discharging the Director's responsibilities, personnel of other Federal 
agencies may be detailed to the Office for the performance of analytic 
functions and related duties.
  ``(c) Transfer of Science and Technology Functions, Personnel, and 
Assets.--
          ``(1) Transfer required.--Except as provided in paragraph 
        (2), the Secretary shall transfer to the Director the 
        functions, assets, and personnel of the Department relating to 
        radiological and nuclear countermeasures, including forensics 
        of contaminated evidence and attack attribution.
          ``(2) Exceptions.--The Secretary shall not transfer under 
        paragraph (1) functions, assets, and personnel relating to 
        consequence management and recovery.
          ``(3) Elimination of duplication of effort.--The Secretary 
        shall ensure that to the extent there are complementary 
        functions vested in the Directorate of Science and Technology 
        and the Office with respect to radiological and nuclear 
        countermeasures, the Under Secretary for Science and Technology 
        and the Director coordinate the programs they administer to 
        eliminate duplication and increase integration opportunities, 
        particularly with respect to technology development and test 
        and evaluation.

``SEC. 2011. REPORT REQUIREMENT.

  ``The Director shall submit to the appropriate congressional 
committees an annual report on the following:
          ``(1) The global detection strategy developed under section 
        2003.
          ``(2) The status of implementation of such architecture.
          ``(3) The schedule for future detection system deployments 
        under such architecture.
          ``(4) The research and development program of the Office.
          ``(5) A summary of actions taken by the Office during the 
        reporting period to counter nuclear and radiological threats.

``SEC. 2012. ADVISORY COUNCIL ON NUCLEAR DETECTION.

  ``(a) Establishment.--Pursuant to section 871 of this Act, the 
Secretary shall establish within the Office an Advisory Council on 
Nuclear Detection, which shall report to the Director (in this section 
referred to as the `Advisory Council').
  ``(b) Functions.--The Advisory Council shall, at the request of the 
Director--
          ``(1) advise the Director on recommendations for the global 
        nuclear detection architecture developed under section 2003(a);
          ``(2) identify research areas for development of next-
        generation and transformational nuclear and radiological 
        detection technologies; and
          ``(3) and have such additional responsibilities as the 
        Director may assign in furtherance of the Department's homeland 
        security mission with respect to enhancing domestic and 
        international nuclear and radiological detection capabilities.
  ``(c) Membership.--The Advisory Council shall consist of 5 members 
appointed by the Director, who shall--
          ``(1) be individuals who have an eminent knowledge and 
        technical expertise related to nuclear and radiological 
        detection research and development and radiation detection; and
          ``(2) be selected solely on the basis of their established 
        record of distinguished service; and
          ``(3) not be employees of the Federal Government, other than 
        employees of National Laboratories.
  ``(d) Conflict of Interest Rules.--The Advisory Council shall 
establish rules for determining when one of its members has a conflict 
of interest in a matter being considered by the Advisory Council, and 
the appropriate course of action to address such conflicts of interest.

``SEC. 2013. INTERAGENCY COORDINATION COUNCIL.

  ``The President--
          ``(1) shall establish an interagency coordination council to 
        facilitate interagency cooperation for purposes of implementing 
        this title;
          ``(2) shall appoint the Secretary to chair the interagency 
        coordination council; and
          ``(3) may appoint the Attorney General, the Secretary of 
        Energy, the Secretary of State, the Secretary of Defense, and 
        the heads of other appropriate Federal agencies to designate 
        members to serve on such council.

``SEC. 2014. AUTHORIZATION OF APPROPRIATIONS.

  ``There is authorized to be appropriated to carry out this title--
          ``(1) $536,000,000 for fiscal year 2007; and
          ``(2) such sums as may be necessary for each subsequent 
        fiscal year.

``SEC. 2015. DEFINITIONS.

  ``In this title:
          ``(1) The term `Director' means the Director of the Domestic 
        Nuclear Detection Office.
          ``(2) The term `fissile materials' means materials capable of 
        sustaining a nuclear chain reaction.
          ``(3) The term `global nuclear detection architecture' means 
        a multi-layered system of detectors deployed internationally 
        and domestically to detect and interdict nuclear and 
        radiological materials intended for illicit use.
          ``(4) The term `nuclear and radiological detection system' 
        means any technology that is capable of detecting or 
        identifying nuclear and radiological material or explosive 
        devices.
          ``(5) The term `Office' means the Domestic Nuclear Detection 
        Office.
          ``(6) The term `radiological material' means material that 
        emits nuclear radiation.
          ``(7) The term `nuclear explosive device' means an explosive 
        device capable of producing a nuclear yield.
          ``(8) The term `technical reachback' means technical expert 
        support provided to operational end users for data 
        interpretation and alarm resolution.
          ``(9) The term `transformational' means that, if successful, 
        will produce dramatic technological improvements over existing 
        capabilities in the areas of performance, cost, or ease of 
        use.''.
  (b) Conforming Amendments.--
          (1) Section 103(d) of the Homeland Security Act of 2002 (6 
        U.S.C. 113(d)) is amended by adding at the end the following:
          ``(5) A Director of the Domestic Nuclear Detection Office.''.
          (2) Section 302 of such Act (6 U.S.C. 182) is amended--
                  (A) in paragraph (2) by striking ``radiological, 
                nuclear,''; and
                  (B) in paragraph (5)(A) by striking ``radiological, 
                nuclear,''.
          (3) Section 305 of such Act (6 U.S.C. 185) is amended by 
        inserting ``and the Director of the Domestic Nuclear Detection 
        Office'' after ``Technology''.
          (4) Section 308 of such Act (6 U.S.C. 188) is amended in each 
        of subsections (a) and (b)(1) by inserting ``and the Director 
        of the Domestic Nuclear Detection Office'' after 
        ``Technology''.
  (c) Clerical Amendment.--The table of contents in section 1(b) of the 
Homeland Security Act of 2002 (116 Stat. 2135) is amended by adding at 
the end the following:

            ``TITLE XX--OFFICE OF DOMESTIC NUCLEAR DETECTION

``Sec. 2001. Domestic Nuclear Detection Office.
``Sec. 2002. Functions of Director of the Domestic Nuclear Detection 
Office, generally.
``Sec. 2003. Global nuclear detection architecture.
``Sec. 2004. Research and development.
``Sec. 2005. System assessments.
``Sec. 2006. Technology acquisition, deployment, support, and training.
``Sec. 2007. Situational awareness.
``Sec. 2008. Forensic analysis.
``Sec. 2009. Threat information.
``Sec. 2010. Administrative authorities.
``Sec. 2011. Report requirement.
``Sec. 2012. Advisory Council on Nuclear Detection.
``Sec. 2013. Interagency coordination council.
``Sec. 2014. Authorization of appropriations.
``Sec. 2015. Definitions.''.

SEC. 402. NUCLEAR AND RADIOLOGICAL DETECTION SYSTEMS.

  (a) Deployment.--Not later than September 30, 2007, the Secretary of 
Homeland Security shall deploy nuclear and radiological detection 
systems at 22 United States seaports. To the extent feasible, the 
Secretary shall deploy the next-generation radiation portal monitors 
tested in the pilot program under subsection (d) at such United States 
seaports.
  (b) Strategy.--Not later than 90 days after the date of the enactment 
of this Act, the Secretary, acting through the Director of the Domestic 
Nuclear Detection Office of the Department, shall submit to the 
appropriate congressional committees a strategy for the deployment of 
nuclear and radiological detection systems at all remaining United 
States seaports.
  (c) Contents.--The strategy submitted under subsection (b) shall 
include--
          (1) a risk-based prioritization of United States seaports at 
        which nuclear and radiological detection systems will deployed;
          (2) a proposed timeline of when nuclear and radiological 
        detection systems will be deployed at each of the seaports 
        identified under paragraph (1);
          (3) the type of systems to be used at each of the seaports 
        identified under paragraph (1);
          (4) standard operating procedures for examining containers 
        with such systems;
          (5) the Department policy for using nuclear and radiological 
        detection systems;
          (6) a classified annex that details plans for covert testing; 
        and
          (7) a classified annex that outlines the risk-based 
        prioritization of seaports used under paragraph (1).
  (d) Safety Plan.--Not later than 180 days after the date of the 
enactment of this Act, the Secretary shall submit to the appropriate 
congressional committees a plan that--
          (1) details the health and safety impacts of nuclear and 
        radiological detection systems; and
          (2) describes the policy of U.S. Customs and Border 
        Protection for using nuclear and radiological detection 
        systems.
  (e) Pilot Program.--
          (1) In general.--Not later than January 1, 2007, the 
        Secretary, acting through the Director of the Domestic Nuclear 
        Detection Office of the Department, shall initiate a pilot 
        program to deploy and test the operational performance of next-
        generation radiation portal monitors at one or more United 
        States seaports with a high-volume of containerized cargo.
          (2) Report.--Not later than March 31, 2007, the Secretary 
        shall submit to the appropriate congressional committees a 
        report that contains--
                  (A) a description of the next-generation radiation 
                portal monitors deployed at United States seaports 
                under the pilot program;
                  (B) a description of the operational characteristics 
                of the pilot program at selected United States 
                seaports; and
                  (C) an evaluation of the operational performance of 
                the next-generation radiation portal monitors, 
                including nuisance alarm rates, and a description of 
                the standards used in such evaluation.
  (f) Deployment of Next-Generation Radiation Portal Monitors.--
          (1) In general.--If the Secretary, acting through the 
        Director of the Domestic Nuclear Detection Office of the 
        Department, determines that the operational performance of the 
        next-generation radiation portal monitors under the pilot 
        program carried out under subsection (e) has met the standards 
        described subsection (e)(2)(C), the Secretary shall deploy 
        next-generation radiation portal monitors, in fixed or other 
        configurations, at all United States seaports with a high-
        volume of containerized cargo to improve cargo screening 
        capabilities at such seaports not later than September 30, 
        2007.
          (2) Congressional notification.--If any deployment of next-
        generation radiation portal monitors is deemed by the Secretary 
        to be operationally infeasible or would result in ineffective, 
        inefficient, or otherwise wasteful use of resources, the 
        Secretary shall notify the appropriate congressional committees 
        and recommend alternative actions.
  (g) Enhancing Overseas Detection Capabilities.--The Secretary, acting 
through the Director of the Domestic Nuclear Detection Office of the 
Department, shall work with appropriate Federal departments and 
agencies to coordinate the installation of nuclear and radiological 
detection systems at foreign seaports.
  (h) Definitions.--In this section:
          (1) Next-generation radiation portal monitors.--The term 
        ``next-generation radiation portal monitors'' means non-
        intrusive, containerized cargo examination technologies that 
        possess radionuclide isotope identification capabilities.
          (2) Nuclear and radiological detection system.--The term 
        ``nuclear and radiological detection system'' means any 
        technology that is capable of detecting or identifying nuclear 
        and radiological material or explosive devices.

                          Purpose and Summary

    The purpose of H.R. 4954 is to improve maritime and cargo 
security through enhanced layered defenses, and for other 
purposes.

                  Background and Need for Legislation

    Maritime vessels are the primary mode of transportation for 
international trade, carrying over 80 percent of international 
trade by volume. In 2004, the United States imported 
approximately $1.47 trillion in goods, with $423 billion in 
goods arriving via container ships. Approximately 9,700,000 
containers carried these goods into our seaports where they 
were redirected throughout the nation. United States trade is 
global in nature, and requires an international, layered, and 
risk-based security approach.
    In its final report, the National Commission on Terrorist 
Attacks Upon the United States noted, ``While commercial 
aviation remains a possible target, terrorists may turn their 
attention to other modes of transportation. Opportunities to do 
harm are as great, or greater in maritime or surface 
transportation.'' In May 2002, the Brookings Institution 
estimated that costs associated with United States port 
closures from a detonated terrorist weapon could cost the U.S. 
economy $1 trillion and dramatically affect our trade policies. 
In March 2006, the Congressional Budget Office determined the 
cost of shutting down America's largest container port, Los 
Angeles and Long Beach, for three years would cost the U.S. 
economy one million jobs.
    Since the terrorist attacks of September 11, 2001, the 
Federal Government has taken several significant steps to 
improve our maritime and homeland security, but none have 
improved comprehensive international supply chain and cargo 
security provisions. On November 25, 2002, the President signed 
into law the Maritime Transportation Security Act of 2002 (P.L. 
107-295) to improve domestic port security by requiring the 
completion of detailed vessel and facility security plans, the 
development of a common transportation worker identification 
card, the training of specialized Maritime Safety and Security 
Teams to thwart terrorist activities within the port regions, 
and other purposes. That same day, the President signed the 
Homeland Security Act of 2002 (P.L. 107-296), combining twenty-
two separate agencies or portions of agencies and establishing 
the Department of Homeland Security.
    A series of hearings, site visits, and oversight work by 
the Committee on Homeland Security led to the conclusion that 
the Department of Homeland Security must improve the global 
supply chain and take additional steps to protect our ports. 
While the Committee applauds the Department's efforts to take 
independent action by developing the Container Security 
Initiative and Customs-Trade Partnership Against Terrorism 
programs, it seeks to codify these programs and provide 
guidance to their future operations. The Committee also used 
this legislation to provide the Department the necessary 
authorities to acquire additional data necessary for assessing 
risk of specific cargo shipments, to expand existing maritime 
security command centers, and institute a new, risk-based Port 
Security Grant Program to replace that outlined in the Maritime 
Transportation Security Act. Additionally, the Committee is 
concerned about the proliferation of weapons of mass 
destruction and related materials, and created the Domestic 
Nuclear Detection Office to coordinate the domestic detection 
efforts to counter these high-consequence threats.

                         Hearings and Briefings

    On Tuesday, March 22, 2005, the Committee held a field 
hearing in Vicksburg, Mississippi, entitled ``Protecting Our 
Commerce: Port and Waterways Security.'' The Committee received 
testimony from RADM Robert Duncan, Commander Eighth Coast Guard 
District, United States Coast Guard; Mr. Jimmy Heidel, 
Executive Director, Warren County Port Commission and Vice-
President of the Vicksburg-Warren County Chamber of Commerce; 
Ms. Cynthia Swain, Director of Safety and Security, Port of New 
Orleans; Dr. Deirdre McGowan, Executive Director, Inland 
Rivers, Ports and Terminals Association.
    On April 19 and 20, 2005, the Subcommittee on Prevention of 
Nuclear and Biological Attack held a hearing entitled ``DHS 
Coordination of Nuclear Detection Efforts.'' On Tuesday, April 
19, 2005, the Subcommittee received testimony from Dr. Graham 
Allison, Director of the Belfer Center for Science and 
International Affairs, Harvard University; Dr. Fred Ikle, 
Center for Strategic and International Studies; and Col. Randy 
Larsen (Ret. USAF), Chief Executive Officer, Homeland Security 
Associates, LLC. On Wednesday, April 20, 2005, the Subcommittee 
received testimony from Mr. Vayl Oxford, Acting Director, 
Domestic Nuclear Detection Office, Department of Homeland 
Security.
    On Wednesday, June 8, 2005, the Subcommittee on Economic 
Security, Infrastructure Protection, and Cybersecurity held a 
hearing entitled ``The Homeland Security Missions of the Post-
9/11 Coast Guard.'' Testimony was received from Admiral Thomas 
Collins, Commandant United States Coast Guard, Department of 
Homeland Security.
    On June 21, 2005, the Subcommittee on Prevention of Nuclear 
and Biological Attack and the Subcommittee on Emergency 
Preparedness, Science, and Technology held a joint hearing 
entitled ``Detecting Nuclear Weapons and Radiological 
Materials: How Effective Is Available Technology?'' The 
Subcommittee received testimony from Mr. Gene Aloise, Director, 
Natural Resources and Environment, Government Accountability 
Office; Dr. Richard L. Wagner, Jr., Chair, Defense Science 
Board Task Force on Prevention of, and Defense Against, 
Clandestine Nuclear Attack and Senior Staff Member, Los Alamos 
National Laboratory; Ms. Bethann Rooney, Manager, Port 
Security, Port Authority of New York & New Jersey; Dr. Benn 
Tannenbaum, American Association for the Advancement of 
Science; Mr. Vayl Oxford, Acting Director, Domestic Nuclear 
Detection Office, Department of Homeland Security; Mr. Michael 
K. Evenson, Acting Director, Combat Support Directorate, DTRA, 
Department of Defense; and Mr. David Huizenga, Assistant Deputy 
Administrator, International Materials Protection and 
Cooperation, National Nuclear Security Administration, 
Department of Energy.
    On June 28, 2005, the Subcommittee on Prevention of Nuclear 
and Biological Attack held a hearing, ``Pathways to the Bomb: 
Security of Fissile Materials Abroad.'' The Subcommittee 
received testimony from Mr. David Albright, Director, Institute 
for Science and International Security; and Ms. Rose 
Gottemoeller, Senior Associate, Carnegie Endowment for 
International Peace. On the same date, the Subcommittee also 
received a classified briefing on the same issue from 
representatives from the Administration.
    On July 21, 2005, the Subcommittee on Prevention of Nuclear 
and Biological Attack held a classified briefing on the new 
Domestic Nuclear Detection Office, and the development and 
testing of nuclear detection technology.
    On September 22, 2005, the Subcommittee on Prevention of 
Nuclear and Biological Attack held a hearing entitled ``Trends 
in Illicit Movement of Nuclear Materials.'' The Subcommittee 
received testimony from Dr. Rensselaer Lee, President, Global 
Advisory Services; Dr. Raymond J. Juzaitis, Associate Director, 
Nonproliferation, Arms Control, and International Security, 
Lawrence Livermore National Laboratory, University of 
California; and Mr. Glenn E. Schweitzer, Director for Central 
Europe and Eurasia, The National Academy of Sciences.
    January 23 and 24, 2006, the Members of the Subcommittee on 
Prevention of Nuclear and Biological Attack conducted a site 
visit of the Department of Homeland Security's Radiological/
Nuclear Countermeasures Test and Evaluation Complex (Rad/
NucCTEC) at the Nevada Test Site, Las Vegas, Nevada. The tour 
of the facility included a discussion and analysis of hand-held 
radiation detectors and the development of portal monitors.
    On February 15, 2006, the Subcommittee on Economic 
Security, Infrastructure Protection, and Cybersecurity held a 
hearing entitled ``The President's Fiscal Year 2007 Budget: 
Coast Guard Programs Impacting Maritime Border Security.'' The 
Subcommittee received testimony from Admiral Thomas H. Collins, 
Commandant, U.S. Coast Guard.
    On June 22, 2005, the Members of the Subcommittee on 
Intelligence, Information Sharing, and Terrorism Risk 
Assessment received a closed Member briefing on Assessing the 
Threat to America's Ports. Representatives from the United 
States Coast Guard, and the Office of Information Analysis both 
of the Department of Homeland Security.
    On March 1, 2006, the Members of the Committee on Homeland 
Security and the Members of the Permanent Select Committee on 
Intelligence received a classified briefing on the intelligence 
analysis included in the Committee on Financial Investment in 
the United States (CFIUS) 30-day review of the Dubai Ports 
World (DP World) proposed acquisition of Peninsular & Oriental 
Steam Navigation Co. (P&O). Representatives from the Department 
of Treasury; the Department of Homeland Security; the Office of 
the Director of National Intelligence; and the Defense 
Intelligence Agency were present.
    On March 16, 2006, the Subcommittee on Economic Security, 
Infrastructure Protection, and Cybersecurity held a hearing on 
H.R. 4954. Testimony was received from Mr. Jayson Ahern, 
Assistant Commissioner, Office of Field Operations, Customs and 
Border Protection, Department of Homeland Security; Captain 
Brian Salerno, Deputy Director, Inspections & Compliance, 
United States Coast Guard, Department of Homeland Security; Mr. 
Eugene Pentimonti, Senior Vice President, Government Relations, 
MAERSK Inc.; and Mr. Noel Cunningham, Principal, MARSEC Group.
    On March 17, 2006, the Subcommittee on Economic Security, 
Infrastructure Protection, and Cybersecurity conducted a site 
visit at the Ports of Los Angeles and Long Beach. The site 
visit included a roundtable discussion with port security 
experts and operational entities, as well as a tour of the 
facilities.
    On April 4, 2006, the Full Committee held a hearing on H.R. 
4954. The Committee received testimony from the Honorable 
Michael P. Jackson, Deputy Secretary, Department of Homeland 
Security; Ms. Bethann Rooney, Manager of Port Security, Port 
Authority of New York and New Jersey; Mr. Christopher L. Koch, 
President and CEO, World Shipping Council; Mr. Jonathan E. 
Gold, Vice President, Global Supply Chair Policy, Retail 
Industry Leaders Association; and Mr. Clark Kent Ervin, private 
citizen.
    On April 19, 2006, Staff of the Subcommittee on Prevention 
of Nuclear and Biological Attack conducted a site visit of the 
Edgewater Chemical Biological Center at the Aberdeen Proving 
Ground, Aberdeen, Maryland. Subcommittee staff toured the 
facility and examined a mobile laboratory.
    On April 20, 2006, staff of the Subcommittee on 
Intelligence, Information Sharing, and Terrorism Risk 
Assessment received a briefing from the Customs and Border 
Protection, Office of Intelligence, to observe how Customs and 
Border Protection collects information at the points of Entry.

                        Committee Consideration

    H.R. 4954 was introduced by Mr. Lungren and 45 original co-
sponsors on March 14, 2006, and referred solely to the 
Committee on Homeland Security. Within the Committee, H.R. 4954 
was referred to the Subcommittee on Economic Security, 
Infrastructure Protection, and Cybersecurity on March 15, 2006.
    On March 16, 2006, the Subcommittee on Economic Security, 
Infrastructure Protection, and Cybersecurity held a hearing on 
H.R. 4954. Testimony was received from Mr. Jayson Ahern, 
Assistant Commissioner, Office of Field Operations, Customs and 
Border Protection, Department of Homeland Security; Captain 
Brian Salerno, Deputy Director, Inspections & Compliance, 
United States Coast Guard, Department of Homeland Security; Mr. 
Eugene Pentimonti, Senior Vice President, Government Relations, 
MAERSK Inc.; and Mr. Noel Cunningham, Principal, MARSEC Group.
    On March 30, 2006, the Subcommittee on Economic Security, 
Infrastructure Protection, and Cybersecurity met in open markup 
session, a quorum being present, and ordered H.R. 4954 
favorably forwarded to the Full Committee, as amended, by voice 
vote.
    On April 4, 2006, the Full Committee held a hearing on H.R. 
4954. The Committee received testimony from the Honorable 
Michael P. Jackson, Deputy Secretary, Department of Homeland 
Security; Ms. Bethann Rooney, Manager of Port Security, Port 
Authority of New York and New Jersey; Mr. Christopher L. Koch, 
President and CEO, World Shipping Council; Mr. Jonathan E. 
Gold, Vice President, Global Supply Chair Policy, Retail 
Industry Leaders Association; and Mr. Clark Kent Ervin, private 
citizen.
    On April 26, 2006, the Full Committee met in open markup 
session and ordered H.R. 4954 favorably reported to the House 
of Representatives, as amended, by voice vote.

                            Committee Votes

    Clause 3(b) of rule XIII of the Rules of the House of 
Representatives requires the Committee to list the record votes 
on the motion to report legislation and amendments thereto.
    On April 26, 2006, the Full Committee considered H.R. 4954, 
to improve maritime and cargo security through enhanced layered 
defenses, and for other purposes, and ordered the bill 
favorably reported to the House, amended, by voice vote. H.R. 
4954 was AGREED TO, as amended, by a recorded vote of 29 yeas 
and 0 nays (Roll Call Vote No. 34). The vote was as follows:



    The following amendments were offered:
    An Amendment in the Nature of a Substitute (#1) offered by 
Mr. King; was AGREED TO, amended, by voice vote. A unanimous 
consent request by Mr. King to consider the Amendment in the 
Nature of a Substitute as base text for purposes of amendment, 
was objected to.
    An amendment offered by Mr. Thompson to the Amendment in 
the Nature of a Substitute (#1A); in section 103, redesignate 
subsection (f) as subsection (g) and insert after subsection 
(e) the following new subsection entitled ``(f) Appeals Process 
for More Stringent State Standards.''; was WITHDRAWN by 
unanimous consent.
    An amendment offered by Ms. Jackson-Lee to the Amendment in 
the Nature of a Substitute (#1B); in section 510(d)(4) of the 
Homeland Security Act of 2002 (as proposed to be added by 
section 105 of the amendment), strike all after ``Area Maritime 
Security Plan'' and insert a semicolon.; was NOT AGREED TO by 
recorded vote of 12 yeas and 18 nays (Roll Call Vote No. 25). 
The vote was as follows:



    An amendment offered by Mr. Thompson to the Amendment in 
the Nature of a Substitute (#1C); page 30, after line 5, insert 
the following new section entitled ``Sec. 113. Additional 
Customs and Border Protection Officers at United States 
Seaports.''; was NOT AGREED TO by a recorded vote of 13 yeas 
and 17 nays (Roll Call Vote No. 26). The vote was as follows:



    An amendment offered by Mrs. Christensen, to the Amendment 
in the Nature of a Substitute (#1D); page 30, after line 5, 
insert the following new section entitled ``Sec. ___. Border 
Patrol Unit for Virgin Islands.''; was AGREED TO by voice vote.
    An amendment offered by Mr. Reichert to the Amendment in 
the Nature of a Substitute (#1E); at the end of title I, insert 
the following new section entitled ``Sec. 111. Port Security 
Exercise Program.''; was AGREED TO by voice vote.
    An amendment offered by Mr. Reichert to the Amendment in 
the Nature of a Substitute (#1F); at the end of title I, insert 
the following new section entitled ``Sec. 111. Port Security 
Training Program.''; was AGREED TO by voice vote.
    An amendment offered by Ms. Sanchez to the Amendment in the 
Nature of a Substitute (#1G); page 49, line 24, add at the end 
the following new sentence: ``Such benefits may not include 
reduced scores in the Automated Targeting System.''; was NOT 
AGREED TO by a recorded vote of 11 yeas and 17 nays (Roll Call 
Vote No. 24). The vote was as follows:



    An amendment offered by Ms. Brown-Waite to the Amendment in 
the Nature of a Substitute (#1H); at the appropriate place in 
the amendment, insert the following new section entitled 
``Sec.___ Next Generation Supply Chain Security 
Technologies.''; was AGREED TO by a recorded vote of 33 yeas 
and 0 nays (Roll Call Vote No. 27). The vote was as follows:



    An amendment offered by Mr. Markey to the Amendment in the 
Nature of a Substitute (#1I); to strike section 1804 as 
proposed by section 201; and insert a new section 202 entitled 
``Sec. 202. Requirements Relating to Entry of Containers Into 
the United States.''; was NOT AGREED TO by a recorded vote of 
16 yeas and 18 nays (Roll Call Vote No. 28). The vote was as 
follows:



    An amendment offered by Ms. Jackson-Lee to the Amendment in 
the Nature of a Substitute (#1J); at the end of title I, insert 
the following new section entitled ``Sec. ___. Study and Report 
by Comptroller General.''; was NOT AGREED TO by a recorded vote 
of 11 yeas and 13 nays (Roll Call Vote No. 29). The vote was as 
follows:



    An amendment offered by Ms. Jackson-Lee to the Amendment in 
the Nature of a Substitute (#1K); at the end of title I, insert 
the following new section entitled ``Sec. ___. Study and Report 
by Secretary of Homeland Security.''; was AGREED TO by voice 
vote.
    An amendment offered by Ms. Jackson-Lee to the Amendment in 
the Nature of a Substitute (#1L); at the end of title I, insert 
the following new section entitled ``Sec. ___ Moratorium on 
Certain Contracts to Conduct Port Operations In the United 
States.''; was NOT AGREED TO by a recorded vote of 11 yeas and 
13 nays (Roll Call Vote No. 30). The vote was as follows:



    An amendment offered by Ms. Jackson-Lee to the Amendment in 
the Nature of a Substitute (#1M); page 73, line 8, strike ``The 
head'' and insert the following new subsections ``(1) In 
General.''; and ``(2) Qualifications.''; was AGREED TO, as 
modified, by voice vote. A unanimous consent request by Ms. 
Jackson-Lee to modify her amendment by striking on line 7 ``, 
international relations, and business management''; was not 
objected to.
    An amendment offered by Mr. Langevin to the Amendment in 
the Nature of a Substitute (#1N); in section 2006(a) of the 
Homeland Security Act of 2002 (as proposed to be added by 
section 401 of the amendment), add at the end the following new 
paragraphs entitled ``(4) Additional Requirements.''; ``(5) 
Report'' and in section 2014(1) of the Homeland Security Act of 
2002 (as proposed to be added by section 401 of the amendment), 
strike ``$536,000,000'' and insert ``$653,000,000''.''; was NOT 
AGREED TO by a recorded vote of 10 yeas and 14 nays (Roll Call 
Vote No. 31). The vote was as follows:



    An amendment offered by Mr. Langevin to the Amendment in 
the Nature of a Substitute (#1O); In section 2014(1) of the 
Homeland Security Act of 2002 (as proposed to be added by 
section 401 of the amendment), strike ``$536,000,000'' and 
insert ``$1,836,000,000''.; was NOT AGREED TO by a recorded 
vote of 10 yeas and 15 nays (Roll Call Vote No. 32). The vote 
was as follows:



    An amendment offered by Mr. Thompson to the Amendment in 
the Nature of a Substitute (#1P); add the end the following new 
section entitled ``Sec. __. Reserve Officers and Junior Reserve 
Officers Training Pilot Project.''; was AGREED TO by voice 
vote.
    An amendment offered by Ms. Jackson-Lee to the Amendment in 
the Nature of a Substitute (#1Q); page 80, line 21, strike 
``The Office'' and insert the following ``(1) In General.--The 
Office''; and on page 81, after line 2, insert a new paragraph 
(2) entitled ``Qualifications.''; was NOT AGREED TO by a 
recorded vote of 11 yeas and 15 nays (Roll Call Vote No. 33). 
The vote was as follows:



    An amendment offered by Mrs. Christensen to the Amendment 
in the Nature of a Substitute (#1R); add at the end the 
following new section entitled ``Sec. ___. Acceleration of 
Integrated Deepwater Program.''; was AGREED TO by voice vote
    An amendment offered by Mrs. Christensen to the Amendment 
in the Nature of a Substitute (#1S); at the appropriate place 
in the bill, insert the following new section entitled ``Sec. 
___ Study Relating to Impact of Providing Arrival and Departure 
Manifests for Certain Commercial Vessels in the United States 
Virgin Islands.''; was AGREED TO by voice vote.
    An amendment offered by Ms. Harris to the Amendment in the 
Nature of a Substitute (#1T); page 26, line 21, strike 
``overtime'' and insert ``expenses''.; was AGREED TO by voice 
vote.
    On March 30, 2006, the Subcommittee on Economic Security, 
Infrastructure Protection, and Cybersecurity considered H.R. 
4954, to improve maritime and cargo security through enhanced 
layered defenses, and for other purposes; and ordered the bill 
favorably forwarded to the Full Committee for consideration, 
amended, by voice vote.
    The following amendments were offered:
    An Amendment in the Nature of a Substitute (#1) offered by 
Mr. Lungren; was AGREED TO, amended, by voice vote.
    An amendment offered by Ms. Sanchez to the Amendment in the 
Nature of a Substitute (#1A), after section 7, insert the 
following new section entitled ``Review of Waiver Denial; 
Additional Waiver Request.''; was WITHDRAWN by unanimous 
consent.
    An amendment offered by Ms. Sanchez to the Amendment in the 
Nature of a Substitute (#1B), on page 22, after line 13, insert 
the following new subsection ``(d) Pilot Program.''; was AGREED 
TO by voice vote.
    An amendment offered by Ms. Sanchez to the Amendment in the 
Nature of a Substitute (#1C), on page 29, line 14, add at the 
end the following new sentence: ``Such benefits may not include 
reduced scores in the Automated Targeting System.''; was NOT 
AGREED TO by a recorded vote of 5 yeas and 6 nays (Roll Call 
Vote No. 3). The vote was as follows:



    An amendment offered by Mr. Markey to the Amendment in the 
Nature of a Substitute (#1D), on page 21, strike line 7 and all 
that follows through line 13 on page 22 and insert a new 
section entitled ``Requirements Relating to Entry of Containers 
Into the United States.''; was NOT AGREED TO by a recorded vote 
of 6 yeas and 8 nays (Roll Call Vote No. 4). The vote was as 
follows:



    An amendment offered by Ms. Sanchez to the Amendment in the 
Nature of a Substitute (#1E), on page 33, beginning on line 11, 
strike ``If the Secretary utilizes third party entitled to 
conduct validations of C-TPAT participants'' and insert ``If 
the Secretary determined to expand the use of third party 
entitled to conduct validation of C-TPAT Participants upon 
completion of the pilot program under paragraph (6).''; was 
AGREED TO by voice vote.
    An amendment offered by Ms. Sanchez to the Amendment in the 
Nature of a Substitute (#1F), on page 38, line 20, strike ``3-
year period'' and insert ``2-year period.''; was NOT AGREED to 
by voice vote.
    An amendment offered by Mr. Thompson to the Amendment in 
the Nature of a Substitute (#1G), on page 78, before line 1, 
insert the following new section entitled ``Additional Customs 
and Border Protection Officers at United States Seaports.''; 
was NOT AGREED TO by a recorded vote of 6 yeas and 7 nays (Roll 
Call Vote No. 5). The vote was as follows:



    An amendment offered by Mr. Thompson to the Amendment in 
the Nature of a Substitute (#1H), At the appropriate place in 
the bill, insert the following new section entitled ``Transfer 
of Megaports Program to the Department of Homeland Security.''; 
was WITHDRAWN by unanimous consent.
    An amendment offered by Mr. Linder to the Amendment in the 
Nature of a Substitute (#1I), on page 24, line 6, insert new 
subsections entitled ``(C) Pilot Program.''; ``(d) Deployment 
of Next-Generation Radiation Portal Monitors.''; and 
redesignate section (c) as (e); was AGREED TO by voice vote.
    An amendment offered by Mr. Langevin to the Amendment in 
the Nature of a Substitute (#1J), at the appropriate place in 
the bill, insert the following new sections entitled 
``Amendment to the Defense Production Act of 1950.''; and 
``Sense of Congress.''; was WITHDRAWN by unanimous consent.
    An amendment offered by Mr. Jindal to the Amendment in the 
Nature of a Substitute (#1K), at the appropriate place in the 
bill, to insert a new section entitled ``Information 
Sharing.''; was AGREED TO by voice vote.

                      Committee Oversight Findings

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

         Statement of General Performance Goals and Objectives

    The purpose of H.R. 4954, the ``Security and Accountability 
For Every Port Act'' or ``SAFE Port Act'', is to improve 
maritime and cargo security through enhanced layered defenses.

   New Budget Authority, Entitlement Authority, and Tax Expenditures

    In compliance with clause 3(c)(2) of rule XIII of the Rules 
of the House of Representatives, the Committee finds that H.R. 
4954, the SAFE Port Act, would result in no new or increased 
budget authority, entitlement authority, or tax expenditures or 
revenues.

                  Congressional Budget Office Estimate

    The Committee adopts as its own the cost estimate prepared 
by the Director of the Congressional Budget Office pursuant to 
section 402 of the Congressional Budget Act of 1974.
                                     U.S. Congress,
                               Congressional Budget Office,
                                    Washington, DC, April 28, 2006.
Hon. Peter T. King,
Chairman Committee on Homeland Security,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
completed the enclosed cost estimate for H.R. 4954, the 
Security and Accountability For Every Port Act.
    The CBO staff contacts for this estimate are Mark Grabowicz 
(for federal costs), who can be reached at 226-2860, Sarah Puro 
(for the impact on state and local governments), who can be 
reached at 225-3220, and Paige Piper/Bach (for the impact on 
the private sector), who can be reached at 226-2940.
            Sincerely,
                                          Donald B. Marron,
                                                   Acting Director.
    Enclosure.

H.R. 4954--Security and Accountability for Every Port Act

    Summary: CBO estimates that H.R. 4954 would authorize the 
appropriation of $8.9 billion over the 2007-2011 period for 
Department of Homeland Security (DHS) programs to improve the 
security of U.S. ports, for the Domestic Nuclear Detection 
Office within DHS, and for the United States Coast Guard's 
integrated deepwater program (IDP). In addition, the bill would 
specifically authorize the appropriation of an additional $881 
million in 2012 for port security programs. Assuming 
appropriation of the necessary amounts, CBO estimates that 
implementing H.R. 4954 would cost $7.4 billion over the 2007-
2011 period and additional spending of more than $2 billion 
after 2011. Enacting the bill could affect direct spending and 
receipts, but we estimate that any such effects would not be 
significant.
    H.R. 4954 contains intergovernmental mandates as defined in 
the Unfunded Mandates Reform Act (UMRA), but CBO estimates that 
the costs to intergovernmental entities, including public 
ports, would total less than $10 million annually, and would 
not exceed the threshold established in UMRA ($64 million in 
2006, adjusted for inflation).
    H.R. 4954 would impose new private-sector mandates, as 
defined in UMRA, on owners and operators of maritime terminal 
facilities. CBO estimates that the direct cost of complying 
with those mandates would be small and would fall below the 
annual threshold for private-sector mandates ($128 million in 
2006, adjusted annually for inflation). In addition, the bill 
would require the Secretary of DHS to review and issue certain 
regulations. Because those regulations have not been 
established, CBO cannot determine if additional mandates would 
be imposed. Therefore, CBO cannot determine whether the 
aggregate direct cost of complying with all of the private-
sector mandates that may be imposed by the bill would exceed 
the annual threshold.
    Estimated cost to the Federal Government: The estimated 
budgetary impact of H.R. 4954 is shown in the following table. 
The costs of this legislation fall within budget functions 400 
(transportation), 450 (community and regional development), and 
750 (administration of justice).

----------------------------------------------------------------------------------------------------------------
                                                            By fiscal year, in millions of dollars--
                                               -----------------------------------------------------------------
                                                   2006       2007       2008       2009       2010       2011
----------------------------------------------------------------------------------------------------------------
                                        SPENDING SUBJECT TO APPROPRIATION

Spending Under Current Law for Programs:
Authorized by H.R. 4954
    Budget Authority \1\......................      1,441          0          0          0          0          0
    Estimated Outlays.........................        769        534        363        150         70         40
Proposed Changes:
    DHS Programs to Improve Port Security:
        Authorization Level...................          0        801        801        821        841        861
        Estimated Outlays.....................          0        307        520        724        835        855
    Domestic Nuclear Detection Office:
        Estimated Authorization Level.........          0        536        552        569        586        603
        Estimated Outlays.....................          0        268        437        557        574        591
    Integrated Deepwater Program:
        Authorization Level...................          0      1,892          0          0          0          0
        Estimated Outlays.....................          0        189        530        530        284        151
    Other DHS Programs:
        Estimated Authorization Level.........          0          4          2          2          2          2
        Estimated Outlays.....................          0          3          2          2          2          2
        Total Changes:
            Estimated Authorization Level.....          0      3,233      1,355      1,391      1,428      1,466
            Estimated Outlays.................          0        767      1,488      1,812      1,694      1,599
Spending Under H.R. 4954:
    Estimated Authorization Level \1\.........      1,441      3,233      1,355      1,391      1,428      1,466
    Estimated Outlays.........................        769      1,302      1,851      1,962      1,764     1,639
----------------------------------------------------------------------------------------------------------------
\1\ The 2006 level is the amount appropriated for that year for most programs authorized by H.R. 4954. These
  programs include the container security initiative, the customs-trade partnership against terrorism, the
  Domestic Nuclear Detection Office, and the integrated deepwater program. The total does not include any
  funding for maritime security command centers because this information is not available.

    Basis of estimate: For this estimate, CBO assumes that the 
bill will be enacted before the end of 2006. CBO estimates that 
implementing H.R. 4954 would cost about $7.4 billion over the 
2007-2011 period, assuming appropriation of the authorized and 
estimated amounts. Enacting the bill could increase both direct 
spending and receipts, but CBO estimates that any such effects 
would not be significant in any year.

Spending subject to appropriation

    For this estimate, CBO assumes that the amounts authorized 
or estimated to be necessary will be appropriated for each 
year. Estimated outlays are based on historical spending 
patterns for existing or similar programs.
    DHS Programs to Improve Port Security. H.R. 4954 would 
authorize the appropriation of:
           $20 million for fiscal year 2007 for DHS to 
        verify the identity of individuals with access to 
        secure areas of seaports;
           $60 million for each of fiscal years 2007 
        through 2011 for DHS to establish or expand security 
        command centers at selected seaports;
           $400 million for each of fiscal years 2007 
        through 2011 for DHS to make grants to improve the 
        security of U.S. ports, especially those at greatest 
        risk;
           $300 million over the 2007-2011 period for 
        DHS to hire new inspection officers at U.S. ports ($20 
        million for 2007, increasing to $100 million for 2011;
           $5 million for each of fiscal years 2007 
        through 2011 for DHS to identify high-risk containers 
        moving through international commerce;
           $196 million for each of fiscal years 2007 
        through 2011 for the container security initiative, a 
        DHS program to examine containers at foreign ports 
        before they are shipped to the United States;
           $75 million for each of fiscal years 2007 
        through 2011 for DHS to form partnerships with 
        importers and other entities to improve security at 
        U.S. ports; and
           $25 million for each of fiscal years 2007 
        through 2011 for operation safe commerce, a DHS program 
        that would provide grants to improve cargo inspection 
        at U.S. ports.
    Assuming appropriation of the authorized amounts, CBO 
estimates that implementing these programs would cost about 
$3.2 billion over the 2007-2011 period.
    Domestic Nuclear Detection Office. H.R. 4954 would 
authorize the appropriation of $536 million for fiscal year 
2007 and necessary amounts for each subsequent fiscal year for 
the Domestic Nuclear Detection Office in DHS. CBO estimated the 
necessary funding levels in future years by adjusting 2007 
funding for anticipated inflation. Thus, implementing this 
section would cost about $2.4 billion over the 2007-2011 
period.
    Integrated Deepwater Program. H.R. 4954 would authorize the 
appropriation of nearly $1.9 billion for fiscal year 2007 for 
the IDP, the Coast Guard's 25-year, $26 billion program to 
modernize its aircraft and vessel fleets and improve its 
command, control, and logistics systems. CBO estimates that 
implementing this section would cost about $1.7 billion over 
the 2007-2011 period.
    Other Programs. H.R. 4954 would direct DHS to consolidate 
its port security training programs, establish a border patrol 
unit for the U.S. Virgin Islands, and carry out pilot programs 
and reports relating to port security. Based on information 
from DHS, CBO estimates that it would cost about $10 million 
over the 2007-2011 period to implement these provisions.

Receipts and direct spending

    H.R. 4954 would establish new criminal penalties for the 
improper use of certain trade data. Thus, the federal 
government might collect additional fines if the bill is 
enacted. Collections of criminal fines are deposited in the 
Crime Victims Fund and later spent. CBO expects that any 
additional receipts and direct spending would not be 
significant.
    Estimated impact on State, local, and tribal governments: 
H.R. 4954 contains intergovernmental mandates as defined in 
UMRA because it would require state and local entities 
(including law enforcement and port authorities) to participate 
in staffing command centers for maritime security, resubmit 
security plans in certain circumstances, and hire a United 
States citizen for the position of chief security officer. Only 
the provisions that would require state and local entities to 
participate in staffing command centers for maritime security 
would impose significant costs on intergovernmental entities. 
Based on information from industry and governmental sources, 
CBO estimates that the costs to intergovernmental entities of 
these provisions likely would total less than $10 million 
annually and would not exceed the threshold established in UMRA 
($64 million in 2006, adjusted annually for inflation).
    Other provisions of the bill would authorize more than $400 
million annually, for fiscal years 2007 through 2012 to improve 
security and cargo inspection at United States ports. To the 
extent that state, local, or tribal governments apply for and 
receive such grants, these provisions would provide benefits to 
those entities. Any costs resulting from complying with the 
conditions of the grants would be incurred voluntarily.
    Estimated impact on the private sector: H.R. 4954 would 
impose new private-sector mandates, as defined in UMRA, on 
owners and operators of maritime terminal facilities. CBO 
estimates that the direct cost of complying with those mandates 
would be small and would fall below the annual threshold for 
private-sector mandates ($128 million in 2006, adjusted 
annually for inflation). In addition, the bill would require 
the Secretary of DHS to review and issue certain regulations. 
Because those regulations have not been established, CBO cannot 
determine if additional mandates would be imposed. Therefore, 
CBO cannot determine whether the aggregate direct cost of 
complying with all of the private-sector mandates that may be 
imposed by the bill would exceed the annual threshold.
    H.R. 4954 would impose mandates on owners and operators of 
maritime terminal facilities. The bill would require owners and 
operators of maritime terminal facilities to resubmit their 
security plans for approval upon transfer of ownership or 
operation of their facility. The bill also would require that 
the individual having full authority to implement security 
actions at a terminal facility be a citizen of the United 
States. Based on information from industry and government 
sources, CBO expects that the total direct cost of complying 
with those requirements would be small relative to UMRA's 
annual threshold.
    The bill also would require the Secretary of DHS to review 
and promulgate regulations regarding the security of the 
international supply chain. Those regulations could impose new 
mandates on shipping carriers and owners and operators of 
maritime terminal facilities. The provisions would require the 
Secretary to issue rules on:
           The transmission of certain data to DHS 
        prior to the loading of cargo for shipment to the 
        United States;
           Minimum standards and verification 
        procedures for securing and sealing containers in 
        transit to the United States; and
           The identification of high-risk containers 
        in the international supply chain.
    Because those regulations have not been established, CBO 
cannot determine if such regulations would impose new mandates 
on the private sector.
    Previous CBO Estimate: On March 29, 2006, CBO transmitted a 
cost estimate for S. 1052, the Transportation Security 
Improvement Act of 2005, as reported by the Senate Committee on 
Commerce, Science, and Transportation on February 27, 2006. CBO 
estimated that implementing S. 1052 would cost over $3 billion 
in 2007 and nearly $12 billion over the 2007-2011 period, 
assuming appropriation of the necessary amounts. Differences 
between the bills are reflected in the two cost estimates.
    Estimate prepared by: Federal Costs: DHS--Mark Grabowicz; 
Coast Guard--Deborah Reis; Impact on State, local, and tribal 
governments: Sarah Puro; Impact on the private sector: Paige 
Piper/Bach.
    Estimate approved by: Peter H. Fontaine, Deputy Assistant 
Director for Budget Analysis.

                       Federal Mandates Statement

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

                      Advisory Committee Statement

    Section 2012 as created within Section 401 established the 
Advisory Council on Nuclear Detection as defined under section 
5(b) of the Federal Advisory Committee Act. This section 
codifies the establishment of a new Advisory Council on Nuclear 
Detection.
    The Advisory Council is to advise the Director of the 
Domestic Nuclear Detection Office on the global nuclear 
detection architecture. Members of the Advisory Council shall 
consist of individuals who possess expertise in nuclear and 
radiological detection, and are not employees of the Federal 
Government, other than employees of the National Laboratories. 
Members of the Advisory Council shall establish rules relating 
to conflict of interest within the Council.

                   Constitutional Authority Statement

    Pursuant to clause 3(d)(1) of Rule XIII of the Rules of the 
House of Representatives, the Committee finds that the 
Constitutional authority for this legislation is provided in 
Article I, section 8, clause 1, which grants Congress the power 
to provide for the common Defence of the United States.

                  Applicability to Legislative Branch

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

             Section-by-Section Analysis of the Legislation


              TITLE I--SECURITY OF UNITED STATES SEAPORTS


                     Subtitle A--General Provisions


Sec. 101. Definition of transportation security incident

    This section clarifies the meaning of the term 
``transportation security incident'' as defined by 46 U.S.C. 
Sec. 70101(6) to mean ``a security incident resulting in a 
significant loss of life, environmental damage, transportation 
system disruption, or economic disruption in a particular 
area,'' by adding the text, ``(other than economic disruption 
caused by acts that are unrelated to terrorism and are 
committed during a labor strike, demonstration, or other type 
of labor unrest).'' The Committee seeks to ensure cargo and 
freight bound for the United States is not unduly delayed if no 
threat of terrorism or other unlawful activities are suspected 
during instances of labor unrest. Labor disputes, which have 
the potential to cause a transportation system or economic 
disruption, do not typically meet the definition of a 
``security incident.''

Sec. 102. Protocols for resumption of trade

    This section adds to the current requirements of the 
National Maritime Transportation Security Plan (NMTSP) under 46 
U.S.C. Sec. 70103(a)(2)(J), which includes a plan to ensure 
``that the flow of cargo through United States ports is 
reestablished as efficiently and quickly as possible after a 
transportation security incident.'' The section requires that 
the NMTSP also provide guidancenecessary to ensure plans for 
reestablishing the flow of cargo through United States ports are 
coordinated at the local, state, and regional level, and provide clear 
detail on government procedures in the event of a transportation 
security incident to minimize economic damage. A vague national plan 
will not provide adequate direction to allow the private sector to plan 
and respond. In New York Harbor, for example, the regional priority for 
the prioritization of the flow of goods in mid-January might be home 
heating oil products, whereas in the Port of Miami the priority may be 
containerized cargo with building materials.
    The Committee recognizes the intermodal nature of ports, 
and intends that any resumption of trade program include an 
assessment of rail capabilities, rerouting, and other 
transshipment priorities. Setting these protocols will clearly 
involve Federal Government coordination, but also must include 
State and local priorities and integrate private sector 
capabilities.
    It is imperative that port regions have realistic, workable 
resumption of trade plans and priorities established prior to 
an actual incident. Failure to have these plans in place will 
prove extremely costly in the event a transportation security 
incident occurs. Any lack of transparency and coordination will 
cause excessive delays in the resumption of commercial 
operations. The Congressional Budget Office estimates that (in 
2004 dollars) a single day delay in imports at the Ports of Los 
Angeles and Long Beach could cost importers $4 million. If the 
disruption was such that all work stopped at the port, the 
resulting production loss would be between $65 and $150 million 
per day. The Committee believes it is critical that the 
Department of Homeland Security have plans in place to be able 
to quickly restore our ports to their maximum capacity in 
minimal time.

Sec. 103. Requirements relating to maritime facility plans

    Subsection (a) requires that a security plan for a facility 
under 46 U.S.C. 70103(c) must be resubmitted for approval if 
the operation or ownership of the facility is transferred. 
Although the Maritime Transportation and Security Act of 2002 
(MTSA), currently requires that facility and vessel security 
plans be updated every five years and resubmitted, ``for 
approval of each change to the vessel or facility that may 
substantially affect the security of the vessel or facility,'' 
this section would mandate the resubmission of the security 
plan immediately upon the transfer of ownership or operation of 
any facility. The Committee finds that the security 
implications of a transfer of ownership or operation of a port 
facility constitutes sufficient cause for requiring the 
facility security plan to be resubmitted for review and 
approval.
    Subsection (b) requires that the Facility Security Officer 
(FSO), as defined in 46 U.S.C. Sec. 70103(c)(3)(B), be a 
citizen of the United States, unless the Secretary determines, 
after a complete background check of the individual and a check 
of the individual's name or alias against existing terrorist 
watchlists, that a waiver is appropriate. By virtue of the 
position, the FSO has special access to sensitive but 
unclassified information affecting port operations. The 
requirement that the FSO be a United States citizen provides 
some assurance that the person will not improperly divulge such 
information to a terrorist or other enemy of the United States. 
The Secretary is provided waiver authority under this provision 
to accommodate FSO applicants who are not United States 
citizens but may be especially well qualified for the position.
    Subsection (c) requires the facility security plans under 
46 U.S.C. Sec. 70103(c)(3), incorporate provisions addressing 
access to secure areas of a vessel or facility for those 
engaged in surface transportation of containers, including 
truck drivers and those operating within rail facilities--
provided those facilities fall within the boundaries outlined 
by the facility security plan.

Sec. 104. Unannounced inspections of maritime facilities

    This section authorizes the Secretary of Homeland Security 
to conduct unannounced inspection of facilities at least once a 
year to verify the effectiveness of facility security plans. 
While the facility security plans outlined in 46 U.S.C. 
Sec. 70103(c) are required to include a plan for ``periodic 
unannounced drills,'' there is no similar requirement for 
unannounced inspections. Facilities are inspected annually, but 
the facility is usually given advance notice and the inspection 
is well-choreographed. While it is important to take into 
account the impact inspections have on industry, the Committee 
believes unannounced inspections are also required to ensure 
regular compliance. The unannounced inspections envisioned in 
this section are ``spot checks'' and should not be interpreted 
as full evaluations unless during the course of the spot check, 
the Coast Guard finds discrepancies in the execution of the 
facility security plan. If discrepancies arise, the Coast Guard 
should conduct a more thorough review of the facility security 
plan.
    Nothing in this section is designed to preclude similar 
inspections for vessels and vessel security plans. While 
mandated under this section for facilities, the Committee 
recommends that similar actions be taken with vessels provided 
that due regard is given to the ship's schedule and the 
efficient flow of commerce.

Sec. 105. Verification of individuals with access to secure areas of 
        seaports

    This section closes a major gap in port security by 
requiring the Secretary of Homeland Security to implement the 
Transportation Worker Identification Credential (TWIC) as 
required by 45 U.S.C. Sec. 70105. The Committee authorizes $20 
million for Fiscal Year 2007 to begin implementation of the 
program. However, the Committee intends for this program to be 
supported through collected fees in future years.
    This section requires that TWIC use Federally-issued access 
control cards to verify the identity of individuals with 
unescorted access to secure areas of U.S. seaports. The cards 
must be tamper-resistant, interoperable, and contain biometric 
information about the holder. Cardholders must successfully 
undergo a fingerprint-based background investigation. Each 
facility will determine which workers are granted access to 
their secure areas and what level of access is permitted. The 
Committee supports the efforts of the Transportation Security 
Administration (TSA) and the U.S. Coast Guard to jointly 
implement this program and stresses that any further delays in 
implementation are unacceptable.
    Subsection (a) requires the Secretary to issue a notice of 
proposed rulemaking (NPRM) for regulations to implement TWIC by 
July 15, 2006 and a final regulation by November 15, 2006. 
Under Subsection (b), the Secretary must begin issuing TWIC 
cards to individuals with unescorted access to secure areas of 
the 25 highest risk ports by May 15, 2007. The Secretary must 
begin issuing TWIC cards for the next 30 high-risk ports by 
November 15, 2007 and for all remaining seaport by November 15, 
2008.
    Subsection (c) requires the Secretary to complete named-
based checks of all individuals with unescorted access to 
restricted areas of a seaport against the terrorist watchlists 
and relevant immigration databases no later than 90 days after 
the date of enactment. The Secretary shall issue an interim 
final rule to require appropriate entities to submit all 
necessary information for the Secretary to carryout the name-
based checks. This subsection must be implemented in accordance 
with the Privacy Act in title 5 U.S.C. Sec. 552(a). Any 
information obtained under this subsection shall remain 
confidential and may not be made available to the public, 
including the individual's employer. Given recent reports of 
individuals with fraudulent documents gaining access and 
employment at U.S. seaports, the Committee believes that an 
immediate check is essential while the TWIC program is 
implemented over the next several years.
    Subsection (d) requires the Secretary to report to Congress 
within 120 days after enactment on the results of the interim 
check.
    Subsection (e) requires the Secretary to reduce the fees 
associated with obtaining a TWIC card for those individuals who 
have successfully completed a background investigation for a 
Hazardous Material Endorsement (HME) under title 49 U.S.C. 
Sec. 5103(a) and who hold a valid HME under 1572 of title 49 
Code of Federal Regulations. The security threat requirements 
for the TWIC program and for the HME program are essentially 
the same. However, due to incompatible enrollment processes 
established by the Department, truck drivers who have already 
passed the HME background check will still be required to pay a 
large portion of the fees associate with obtaining a TWIC card. 
The Committee is concerned that this is a significant and 
unnecessary burden and directs the Secretary to take all 
necessary steps to consolidate these two programs and reduce 
the costs for drivers required to comply with both programs.
    The Committee is concerned that Section 528 of the 
Department of Homeland SecurityAppropriations Bill (P.L. 109-
90) requires the Secretary to utilize the Transportation Security 
Clearinghouse (TSC) as the central identity management system for 
deployment and operation of the registered traveler program and the 
TWIC program. Because the TSC is a private entity, the Committee is 
concerned about maintaining confidentiality of the personal information 
on TWIC applicants submitted to the TSC. The Committee expects that the 
TSC will not retain personal information on TWIC applicants for any 
period beyond that necessary for the processing of applications. 
Additionally, the Secretary must ensure that the arrangement with the 
TSC complies with all privacy laws and regulations regularly. The 
Committee is aware of existing technology in use at the Department of 
Defense and the U.S. Coast Guard that is able to protect the privacy of 
sensitive data. The Secretary is directed to review and evaluate this 
technology for possible use in the TWIC program.
    While the Committee applauds the Department for moving 
forward with the implementation of TWIC, the Committee is 
concerned about program delays. For this reason, the Committee 
encourages the Department to use, to the maximum extent 
possible, existing technologies and systems that have been 
employed in other venues to promote expeditious implementation 
of the program. Further, the Committee encourages the 
Department to maximize the use of small businesses as part of 
the final TWIC selection process. Small businesses often have 
the ingenuity, technology and flexibility to assist in the 
efficient implementation of a new and challenging program.

Sec. 106. Clarification on eligibility for transportation security 
        cards

    This section amends 46 U.S.C. Sec. 70105(c)(2) to clarify 
that the Secretary has no authority to grant a waiver for 
issuing a transportation security card to an illegal alien. The 
intent of this provision is to close a potential loophole in 
the framework for issuing transportation security cards, and 
eliminate any possible ambiguity over the Secretary's waiver 
authority.

Sec. 107. Long-range vessel tracking

    This section amends title 46 U.S.C. Sec. 70115 to require 
the Secretary of Homeland Security to issue regulations that 
establish and implement a long-range vessel tracking system by 
not later than April 1, 2007. This system will have the 
capability to track vessels up to 2000 nautical miles from 
shore and will compliment the near-shore tracking capabilities 
provided by the Automatic Identification System (AIS). The U.S. 
Coast Guard is currently working through the International 
Maritime Organization (IMO) to develop the components of a 
global system rather than implementing a long-range vessel 
tracking system domestically. The Committee understands that 
the final system will have to be compatible with a system 
implemented by our international partners. However, the 
Committee remains concerned by the Administration's apparent 
decision to delay the development and implementation of this 
system in the United States. The Committee strongly recommends 
that the Coast Guard actively work through the IMO to develop 
standards and procedures. Failure to come to an agreement 
through the IMO should not deter the United States from 
implementing this critical maritime and port security measure 
domestically by the statutory deadline of April 1, 2007.
    Subsection (b) authorizes the Secretary to establish a 
pilot program to track vessels who voluntarily agree to 
participate until such time as the program under this section 
becomes mandatory. The Committee strongly recommends the 
Secretary utilize the pilot program to test and evaluate 
technologies and procedures to further the development of a 
mandatory, nationwide long-range vessel tracking system.

Sec. 108. Maritime Security Command Centers

    This section amends title 46 U.S.C. to add a new Section 
70118. This section requires the Secretary of Homeland Security 
to develop an integrated network of virtual and physical 
maritime security command centers at U.S. seaports and maritime 
regions for the purpose of enhancing information sharing, 
facilitating operational coordination, and facilitating 
incident management and response.
    The U.S. Coast Guard has placed significant emphasis on 
upgrading their capabilities at the regional command centers 
around the country. The U.S. Coast Guard operates a National 
Command Center in Washington, DC, regional Area Command Centers 
on the east and west coasts, nine district command centers in 
regions such as Boston, Miami, Seattle, and Honolulu, and some 
thirty-six sector command centers, primarily focused in the 
port regions such as Baltimore, New York, Los Angeles/Long 
Beach, and Houston. Many of these command centers include video 
teleconferencing capabilities, access to classified 
intelligence community assessments, and extensive secure 
communications suites. Within these same regions, Customs and 
Border Protection, Immigration and Customs Enforcement, and 
their State and local counterparts often have only minimal 
resources in comparason. While this section does not mandate 
that the Coast Guard Sector Command Centers serve as the 
regional Maritime Security Command Center, the Committee has 
found these centers exceptionally capable and a logical 
starting point for this initiative.
    Wherever possible, these integrated command centers should 
not involve building new facilities. It is the sense of the 
Committee that, where the co-location of personnel is 
necessary, the most capable sector, district, or area command 
center within a region utilize existing space to provide for 
the inclusion of appropriate federal agencies. If practicable, 
critical state and local agencies should also be included. It 
is the intent of the Committee that participation in these 
Command Centers will not require hiring of additional 
personnel, but shall focus on designating existing personnel to 
participate and utilize interoperable communications and the 
virtual network. Annual appropriations authorized for these 
facilities may be used to procure computer equipment, 
information technology, office furniture and supplies, and 
other necessary items to improve and expand the capabilities of 
existing centers.
    When simple upgrades or modifications to existing 
facilities are not possible or sufficient office space is not 
available to provide for truly integrated operations, 
appropriations are authorized to develop a virtual, integrated 
communications system to ensure the maximum participation 
possible of other appropriate entities. These systems may 
include but are not limited to intranets, secure chat systems, 
and video teleconferencing capabilities.
    This section also requires the Secretary to sponsor 
appropriate participants in the maritime command centers for 
security clearances. Should security clearances be required 
given the sensitive operations of these centers, those 
clearances will be sponsored by the Secretary of Homeland 
Security and shall include sufficiently detailed background 
investigations to ensure their applicability with the 
Department of Defense requirements. While the Committee is 
aware that some State and local law enforcement officials will 
have already been vetted at the State or local level, the 
exceptionally sensitive nature of national security information 
is such that it requires an extensive, standardized, 
investigative process.
    The section also provides that in the event of a 
transportation security incident involving a port, the Captain 
of the Port as designated by the U.S. Coast Guard, who is the 
head of the maritime security command center will act as the 
incident commander. The Captain of the Port will, therefore, 
direct response and mitigation efforts unless otherwise 
directed by the President in accordance with the National 
Response Plan, National Incident Management System, or the 
Maritime Operational Threat Response Plan applicable in the 
port region.
    For each fiscal year from 2007-2012, $60 million is 
authorized to carry out this section. This section also 
requires the Secretary to submit a budget plan for implementing 
the maritime command centers, and outlining cost-share 
agreements with other Federal agencies.

                Subtitle B--Grant and Training Programs


Sec. 111. Port security grant program

    This section establishes a new grant program under the 
Homeland Security Act (P.L. 107-296) specifically targeted to 
assist United States seaports in making necessary security 
enhancements to deter, prepare for, respond to, and recover 
from a terrorist attack. The total funding available for the 
grant program is $400 million per year over six years. Under 
the terms of this section, funding for this port security grant 
program will be derived from customs duties collected on 
incoming containers.
    The grant program authorized under this section represents 
a substantial increase in the dedication of resources to port 
security. The Department of Homeland Security has awarded over 
$700 million in port security grant money to U.S. ports and an 
additional $168 million in grant awards will soon be announced, 
bringing total port security funding levels since September 11, 
2001, to $870 million, since the September 11, 2001 terrorist 
attacks. This funding has provided significant support for 
needed port security enhancements. The port security grant 
program under this section more than doubles the amount of 
funding that has typically been available for grant awards in 
previous years. The additional support will allow for critical 
port security improvements at high risk and high priority ports 
within the United States to counter growing and immediate 
threats in the maritime sector.
    The program requires the Secretary to allocate grant funds 
on the basis of risk and need, with special consideration given 
to ports with significant economic and defense importance. The 
new port security grant program under this section replaces the 
previous port security grant program established in Section 
70105 of title 46 U.S.C., which required a fair and equitable 
allocation of grant funding.
    While moving toward a risk-based approach, this section 
allows any entity subject to an Area Maritime Transportation 
Security Plan to apply for grants and requires that each 
application meet minimum standards as required in the section. 
The last round of grants provided by the Secretary permitted 
funding for only the top 60 seaports based on a risk 
prioritization. While the Committee supports the risk-based 
allocation, it is important for each port to have the ability 
to apply and present its rationale for requesting grant 
funding.
    This section permits grant money to be used to implement 
Area Maritime Transportation Security Plans, to remedy port 
security vulnerabilities, for salaries and operating expenses 
if the threat level or the Maritime Security (MARSEC) level is 
elevated, for acquisition and maintenance of security 
equipment, to conduct vulnerability assessments, to conduct 
counterterrorism training and exercise programs, to share 
threat information, to protect critical infrastructure, and for 
other security-related improvements. Grants may not be used for 
construction, land acquisition, or to make any State or local 
government cost-sharing contribution. The Secretary is 
authorized to award grants for multi-year projects. To ensure 
coordination within the ports and with the State, each grant 
award must be consistent with requirements of the Area Maritime 
Transportation Security Plan and any applicable State or Urban 
Area Homeland Security plan.
    The Department of Homeland Security Inspector General has 
raised concerns in the past about lack of transparency in how 
grant money is utilized and on the types of projects being 
funded. This section responds to those concerns by requiring 
the Secretary to develop appropriate accounting and reporting 
procedures to track funding and ensure accountability. 
Additionally, all grant recipients are required to retain and 
make their records available to the Secretary for review and 
audit.
    This section also requires the Secretary to limit the 
Federal contribution to port security grant projects to 75 
percent of the total cost for all projects over $25,000, unless 
the Secretary determines it is appropriate to provide a higher 
level of Federal funding. Ports are also allowed to use 
expenses that are directly linked with the purpose for which 
the grant is awarded--including personnel overtime, contractor 
services, administrative costs, equipment fuel and maintenance, 
and rental space--to be counted towards the ports matching 
requirement.

Sec. 112. Port security training program

    This section directs the Secretary to establish a Port 
Security Training Program for the purpose of ensuring that our 
Nation's emergency response providers, longshoremen, seaport 
management, the private sector, and others learn and master the 
skills necessary to prevent, prepare for, respond to, mitigate 
against, and recover from acts of terrorism, especially those 
involving weapons of mass destruction, natural disasters, and 
other emergencies.
    The Port Security Training Program created by this section 
will use multiple mediums to provide validated training at the 
awareness, performance, and planning levels to emergency 
response providers and commercial seaport personnel and 
management. Specifically, the training program will address a 
variety of seaport security issues, including: (1) seaport 
security plans and procedures; (2) seaport security force 
operations and management; (3) physical security and access 
control at seaports; (4) methods of security for preventing and 
countering cargo theft; (5) container security; (6) recognition 
and detection of weapons, dangerous substances, and devices; 
(7) security threats and patterns; (8) procedures for 
communication with emergency response providers; and (9) 
evacuation procedures.
    This section also amends the Maritime Transportation 
Security Act (P.L. 107-295) to require that all Vessel and 
Facility Security Plans include a strategy and timeline for 
conducting training and periodic unannounced exercises with 
respect to transportation security incidents. The Committee 
intends for each facility to fulfill the requirement under the 
Maritime Transportation Security Act, as amended by section 
111(c) of this Act, to conduct training and periodic 
unannounced drills for persons on the vessel or at the facility 
through the use of, at a minimum, the courses, materials, and 
activities created or administered as part of the Port Security 
Training Program.
    The Committee also intends that the level and type of 
training provided by the Department for government officials, 
commercial seaport personnel and management, and emergency 
response providers as part of the Port Security Training 
Program shall be in accordance with the duties and functions to 
be performed by each person in the event of an incident or 
emergency. The Secretary is expected to provide guidance to 
grant recipients and training partners under this program to 
ensure proper training levels. Training programs for emergency 
response providers should, at a minimum, include training at 
the performance and operations levels.

Sec. 113. Port security exercise program

    This section requires the Secretary of Homeland Security to 
establish a Port Security Exercise Program for the purpose of 
testing and evaluating the emergency capabilities of Federal, 
State, local, and international governments, longshoremen, 
commercial seaport management, emergency response providers, 
and the private sector. Specifically, this section directs the 
Secretary to consolidate all of the Department of Homeland 
Security's existing port security exercise programs. It also 
requires the Department to conduct, on a periodic basis, port 
security exercises that are: (1) tailored to the needs of each 
port; (2) as realistic as possible; (3) evaluated against clear 
and consistent performance measures; (4) assessed to learn best 
practices; and (5) followed by remedial action.
    This section directs the Secretary to ensure that all port 
security exercises are consistent with the National Incident 
Management System, the National Response Plan, the National 
Infrastructure Protection Plan, the National Infrastructure 
Protection Plan, and other such national initiatives. Moreover, 
such exercises must be consistent with any applicable Area 
Maritime Security Transportation Plans and State or urban area 
homeland security strategy or plan.
    Finally, this section directs the Secretary to establish a 
Remedial Action Management System to: (1) identify and analyze 
each port security exercise for lessons learned and best 
practices; (2) disseminate lessons learned and best practices 
to participants in the exercise program; (3) monitor the 
implementation of lessons learned and best practices by program 
participants; and (4) conduct remedial action tracking and 
long-term trend analysis.
    The Committee has repeatedly heard from emergency response 
providers across our Nation about the importance of conducting 
table-top and full-scale exercises to test and evaluate our 
preparedness and response capabilities. The value of exercises 
cannot be understated. The success or failure of our response 
to acts of terrorism, natural disasters, or other emergencies 
depends on effective coordination and cooperation. It is simply 
too late for emergency response providers to develop working 
relationships during an actual event.

Sec. 114. Reserve officers and junior reserve officers training pilot 
        project

    This section permits the Secretary to initiate a pilot 
project and establish and maintain reserve officer and a junior 
reserve officers training program at nine locations (Coast 
Guard Districts) around the country. The provision requires at 
least one location be at a historically black college or 
university, and a second at a high-school with a large minority 
population.

                  Subtitle C--Miscellaneous Provisions


Sec. 121. Increase in port of entry inspection officers

    This section authorizes 1,200 additional U.S. Customs and 
Border Protection (CBP) Officers at U.S. ports of entry over 
six years. There are currently 19,000 inspectors responsible 
for 317 ports of entry, 14 pre-clearance stations, and 
assignments to the 44 foreign ports under the Container 
Security Initiative. While other border security positions in 
the Department of Homeland Security were enhanced in the 
Intelligence Reform and Terrorism Prevention Act of 2004 (P.L. 
108-458), the number of CBP Officers was not increased. The 
Committee supports additional staffing at ports of entry to 
ensure that thorough security screenings for individuals and 
cargo are maintained without disrupting the legitimate flow of 
goods. Additionally, more personnel will be necessary to carry 
out new requirements established under this measure, including 
enhancing targeting capabilities, collection of additional 
advanced data, and expansion of the Container Security 
Initiative (CSI).
    This section mirrors a provision included by the Committee 
in Section 107 of H.R. 4437, the Border Protection, 
Antiterrorism and Illegal Immigration Control Act of 2005, 
which passed the House of Representatives on December 16, 2005. 
This provision was also included in H.R. 4312, the Border 
Security and Terrorism Prevention Act of 2005, which was 
reported by the Committee on Homeland Security on December 6, 
2005.
    This section authorizes $20 million for Fiscal Year 2007, 
and increases that authorization by $20 million each subsequent 
fiscal year through 2012 for a total funding amount of $420 
million over six years.

Sec. 122. Acceleration of Integrated Deepwater System.

    This section increases the authorized funding for the Coast 
Guard's Deepwater System by $1.892 billion. The Integrated 
Deepwater System is the Coast Guard's largest capital 
acquisition program, touted as a ``system of systems'' approach 
to rebuilding and replacing its aging fleet of ships and 
aircraft. The President's budget request for the Deepwater 
System is $934 million in 2007, and increase in $11 million 
from 2006 funding levels. This funding level supports the 25-
year recapitalization timeline.
    The Committee supports the acceleration of the Deepwater 
System in concept and recognizes the important multi-mission 
role which requires the service to use the same aircraft and 
vessels for port and waterways security as it uses for search 
and rescue, drug interdiction, and general law enforcement 
activities.

Sec. 123. Border Patrol unit for United States Virgin Islands

    This section establishes a Border Patrol unit for the 
United States Virgin Islands as a means to enhance security and 
awareness. No Border Patrol station currently exists within the 
territory of U.S. Virgin Islands and the station responsible 
for covering this area is located in Puerto Rico. The United 
States Virgin Islands has 175 miles of coastal borders and is a 
gateway to the continental U.S. This region has been 
increasingly exploited by human and drug smugglers to move 
people and narcotics, undetected, into the U.S. mainland. A 
dedicated Border Patrol unit will assist the Department of 
Homeland Security in gaining operational control over the 
border.

Sec. 124. Report on ownership and operation of United States seaports

    This section requires the Secretary of Homeland Security to 
submit a report to Congress within 180 days with the name of 
each individual or entity that leases, operates, manages or 
owns property or facilities at seaports. During a recent review 
of the Committee on Financial Investment in the United States' 
(CFIUS) approval of Dubai Ports World acquisition of several 
terminal operations in the United Sates, the Committee became 
concerned about the inability of the Department of Homeland 
Security or any other entity to provide data on the number of 
foreign operated terminals in the United States. The purpose of 
this section is to ensure that Congress and the Department have 
the all necessary information to evaluate security at United 
States seaports.

Sec. 125. Report on security operations at certain United States 
        seaports

    This section requires the Secretary of Homeland Security to 
conduct a study and provide a report to Congress within 270 
days on the adequacy of security operations at the ten largest 
container ports in the United States as a means of reviewing 
current vulnerability assessments completed by the Coast Guard 
to ensure they are sufficient in scope and accurately assess 
the security of our ports with the largest volumes of container 
traffic.

Sec. 126. Report on arrival and departure manifests for certain 
        commercial vessels in the United States Virgin Islands

    This section requires the Secretary of Homeland Security to 
provide a report to Congress on how the requirements under 
section 231 of the Immigration and Nationality Act (8 U.S.C. 
1221) relating to filing of arrival and departure manifests, 
impacts small commercial vessels operating between the U.S. and 
British Virgin Islands. The Committee is concerned that the 
Department does not fully consider the impact of small 
businesses when implementing nationwide security requirements 
and directs the Secretary to fully consider the impact on 
charter boats and small yachts of requirements to file manifest 
data one hour prior to arrival and departure.

          TITLE II--SECURITY OF THE INTERNATIONAL SUPPLY CHAIN


Sec. 201. Security of the international supply chain

    This section amends the Homeland Security Act of 2002 (P.L. 
107-296) to establish Title XVIII, designated as ``Security of 
the International Supply Chain.'' The provisions in this 
section reinforce the importance of improving security and 
providing the Secretary with clear direction and enhanced 
authorities to prevent, detect, respond to and recover from a 
terrorist threat to the international supply chain and the 
maritime transportation system.

                     Subtitle A--General Provisions


Sec. 1801. Strategic plan to enhance the security of the international 
        supply chain

    This section requires the Secretary of Homeland Security to 
establish a strategic plan for enhancing the security of the 
international supply chain. Over 11 million containers are 
expected to enter the United States this year through U.S. 
seaports. The importance of maintaining the flow of commerce 
and the consequences of a weapon of mass destruction being 
smuggled into the U.S. in one of those containers requires 
focused attention on container and supply chain security.
    The strategic plan required under this section is required 
to address the roles and responsibilities for each public and 
private stakeholder responsible for the security of the 
movement of containers, identify and address security gaps, 
provide legislative recommendations, provide goals for 
improving security from the point of origin to the point of 
destinations, recommend incentives for additional voluntary 
measures, consider the impact on small businesses of security 
requirements, include a process for sharing security 
information with the private sector, identify a response plan, 
and consider possible linkages between supply chain security 
and travel and financial security. Recognizing the strategic 
planning already underway in the National Strategy for Maritime 
Security (NSMS), this section requires that the International 
Supply Chain Strategy expand upon and relate to the goals and 
priorities established in the NSMS. Section 201(c)(1) requires 
that the Strategy be complete and provided to the Committee 
within 180 days of enactment.

Sec. 1802. Transmission of additional data elements for improved high 
        risk targeting

    This section requires the Secretary to issue regulations 
within one year to require additional data elements, including 
entry data to be provided electronically to the Department 
prior to loading cargo on vessels bound for the United States. 
This regulatory authority includes determining the appropriate 
security elements of entry data. The intent of this provision 
is to improve the capability of Secretary to identify high risk 
cargo, an essential element of the U.S. maritime security 
strategy. This provision provides the Secretary with clear 
authority and direction to collect additional data 
andsufficient flexibility to determine what data should be required to 
enhance capabilities to detect high risk cargo.
    The Committee has conducted extensive oversight of 
Automated Targeted System and the data elements utilized by 
U.S. Customs and Border Protection (CBP) to identify high risk 
containers, and determined that the existing reliance on 
carrier manifest data is insufficient to ensure robust 
targeting capabilities. This section takes steps to resolve 
this issue by empowering the Secretary to improve the risk-
based targeting system through the collection of additional 
data.
    Currently, no data is required to be filed prior to loading 
by a U.S. importer or foreign exporter that can be used in the 
security screening process. However, these parties possess 
shipment data that security experts testified would add 
significant targeting capabilities. Today, cargo entry data is 
required to be filed with CBP by the importer, but is not 
required to be filed until after the cargo shipment is in the 
United States, which is too late to be used for security 
screening purposes. However, the Department has not acted to 
require this information be submitted.

Sec. 1803. Plan to improve the Automated Targeting System

    This section requires the Secretary, within 180 days to 
develop a plan to improve the Automated Targeting System (ATS) 
to enhance capabilities to detect high-risk containers. The 
plan may include requiring additional non-manifest 
documentation and reducing reporting timelines for each 
container. Additionally, the Secretary shall require an outside 
peer review of the system. This section is intended to ensure 
that additional consideration is provided to improving ATS in 
addition to the additional data required in Section 1802 of 
this subtitle. To provide for necessary improvements to ATS, 
the Committee authorizes $5 million to be dedicated to the 
system for each fiscal year from 2007-2012.
    The Government Accountability Office (GAO) issued a report 
titled, ``Homeland Security: Summary of Challenges Faced in 
Targeting Oceangoing Cargo Containers for Inspection'' (GAO-04-
557T), and noted that U.S. Customs and Border Protection (CBP) 
``has not performed a comprehensive set of threat, criticality, 
vulnerability, and risk assessment,'' nor has CBP ``subjected 
the targeting system to external peer review or testing.'' In 
the context of implementing a plan to improve ATS, the 
Secretary is directed to address the recommendations made in 
the GAO report to and evaluate the need for other changes to 
ATS including requiring additional data and adjusting the 
timing for submitting the additional data.
    The Committee also supports the recommendations made by the 
Commercial Operations Advisory Council (COAC) Maritime 
Transportation Security Act Advisory Subcommittee in September 
2004. The Committee directs the Secretary to evaluate these 
recommendations, which specify that importers should provide 
CBP additional data elements before vessel loading, including 
(1) a better cargo description; (2) the identity of the party 
that is selling the goods to the importer; (3) the identity of 
the party that is purchasing the goods; (4) point of origin of 
the goods; (5) country from which the goods are exported; (6) 
identity of the ultimate consignee; (7) identity of the 
exporter representative; (8) identity of the broker; and (9) 
the origin of the container shipment.
    The Secretary shall continually review ATS and upgrade the 
system as more complex targeting capabilities become available 
and seek to incorporate real-time intelligence into the system. 
The Committee specifically directs the Secretary to review 
whether ATS can, and should, be linked with existing terrorist 
travel and finance programs to allow for patterns and 
connections that may otherwise be missed.
    Finally, the Committee directs the Secretary to consult 
with appropriate stakeholders, including the Homeland Security 
Advisory Committee, the National Maritime Security Advisory 
Committee, and the Commercial Operations Advisory Committee, 
when considering what additional information may be required 
and to ensure that all information submitted be transmitted and 
stored in a secure fashion.

Sec. 1804. Container standards and verification procedures

    This section requires the Secretary of Homeland Security to 
establish minimum standards and verification procedures for 
sealing containers imported into the United States within 180 
days of enactment. Two years from enactment, the Secretary must 
require the enforcement of those standards on all containers 
entering the United States. Currently the U.S. imports over 11 
million containers annually. The current internationally 
approved method for sealing those containers is a small, 
serialized bolt seal. Relatively easy to circumvent, these 
seals do not provide adequate security. As regional instability 
continues in Eastern Europe, portions of Asia, Africa, and the 
Middle East, the threat of independent terrorist activities by 
non-state actors grows. Many security experts believe that the 
container supply chain is vulnerable to being exploited by 
terrorists.
    The Committee is concerned that the state of current 
technology in this realm is currently insufficient. 
Technologies that can detect the unauthorized opening or 
exploitation of a container are still evolving. Ideally, 
container security devices could provide advanced warning of 
evidence of tampering and be tracked real time. Current 
container security devices show significant improvements over 
the serialized bolts but still only protect the container door. 
Advanced devices and electronic seals being tested are 
currently too expensive to be widely used in the supply chain. 
The Secretary is directed to continue to test commercially 
available technology and develop the best available standards 
for sealing and protecting containers that can be implemented 
in the supply chain. The Committee understands that these 
capabilities may not be available immediately, but directs 
industry to lead the way, as these systems will also prevent 
theft of increasingly high-cost items shipped in these 
containers. It is critical that new technologies for securing 
containers minimize false positive readings, and ideally 
incorporate a false-positive of less than one percent. It is 
equally critical that the Secretary incorporate procedures for 
reconciling alarm data which would not unduly disrupt commerce. 
In developing standards under this section, the Secretary shall 
consult with private sector stakeholders, including the 
Homeland Security Advisory Committee, the National Maritime 
Security Advisory Committee, and the Commercial Operations 
Advisory Committee.
    Given that the container supply chain is global in scope, 
the Committee encourages the Secretary to work with 
international organizations and foreign governments to ensure 
that the standards established by the Department are consistent 
with those being developed internationally. However, the 
Secretary shall not delay action if international consensus 
cannot be reached. While the Committee requires that the 
Secretary not violate international trade obligations, the 
United States must lead the effort to improve global supply 
chain security.

Sec. 1805. Container Security Initiative

    This section authorizes the establishment and 
implementation of the Container Security Initiative (CSI) to 
identify and examine maritime containers at foreign ports that 
may pose a risk for terrorism before the containers are shipped 
to the United States. This program has been operational since 
2002 and has processed nearly 20 million containers through 44 
foreign ports. By the end of 2006, approximately 82 percent of 
all imported containerized cargo will pass through a CSI-
designated port. The CSI program effectively pushes our 
security effort out beyond the geographic borders of the United 
States to increase opportunities to detect high risk containers 
before they are loaded overseas and arrive at our ports. The 
Committee commends the Department of Homeland Security for 
establishing this outreach program and supports its 
continuation and expansion by authorizing $196 million each 
year for fiscal year 2007-2012.
    This section provides that, as a prerequisite for 
designating a CSI port, the Secretary of Homeland Security must 
ensure an appropriate port assessment is completed and that CSI 
assessments are coordinated with the U.S. Coast Guard's regular 
foreign port assessments to ensure that all available 
information is utilized in determining the location of CSI 
ports and to minimize disruptions with the host nation. The 
Committee directs the Secretary to notify Congress of the 
designation of any CSI port prior to the public announcement.
    This section also allows the Secretary to provide foreign 
assistance and equipment loans to host nations that are unable 
to purchase inspection equipment that meet the standards 
established by the Department. Non-intrusive imagery and 
radiation detection equipment can prove cost prohibitive for 
some nations. The systems currently cost between $1.5 million 
and $3.0 million. The Secretary may loan, purchase, or 
otherwise offset the costs of these technologies and provide 
necessary training and refresher training to foreign personnel 
involved in the CSI program.
    With the continuously improving technology in the fields of 
non-intrusive imagery and radiation and nuclear detection, the 
Committee directs the Secretary to periodically reassess 
available technology and utilize the enhanced systems as old 
systems become obsolete. At a minimum, the Secretary is 
directed to ensure that each CSI port have capabilities for 
non-intrusive imaging (i.e. x-ray or gamma ray) and nuclear and 
radiological detection.
    The Committee is concerned that several CSI host nations 
are not compliant with requests to scan containers that the 
U.S. deems to be high risk. For example, at the Port of 
Shanghai, China, U.S. Customs and Border Protection (CBP) 
selected 2,103 containers for scanning, but the host government 
refused to scan 586 of the requests. To address this issue, the 
Committee requires the Secretary to issue a ``do not load'' 
order for any container targeted as high risk if the host 
government refuses to inspect.
    The Committee requires the Secretary of Homeland Security 
to submit an annual report on the progress of the CSI program. 
The report must include a description of security improvements 
to the program, the rationale for continuation at each CSI 
port, and an assessment of personnel needs. The Committee is 
concerned that the program may expand beyond the need and 
directs the Secretary to evaluate options for utilizing CBP 
targeters in the United States when possible rather than 
assigning large CSI teams overseas, which nearly triples 
personnel costs. Additionally, the Committee directs the 
Secretary to assess opportunities to enhance CSI through 
exploring capabilities to electronically send images and data 
between the U.S. and CSI ports for use in the Automated 
Targeting System.

Sec. 1806. Information sharing relating to supply chain security 
        cooperation

    This section requires the Secretary to establish a secure 
system to share and receive supply chain security information 
from the private sector. The Committee is concerned that the 
Department provides little or no risk information to the 
private sector to assist them in hardening and adjusting their 
supply routes. This section will enhance cooperation between 
the Department and the private sector in a secure, web-based 
system that will protect data and the identity of the private 
sector entities providing information. The Secretary shall 
consult with the private sector in developing the system.
    The Secretary is directed to review the web system 
established by the Department of State's Overseas Security 
Advisory Council. The Committee directs the Secretary to build 
on this model to establish a continuing liaison with the 
private sector and to provide regular interchange of 
information.
    Information shared through this system may be sensitive and 
proprietary. The Secretary shall exempt information received 
through the system from public disclosure. Any warnings that 
the Secretary may issue through the system based upon 
information received, shall not include identifiable 
information related to the submitting entity.

   Subtitle B--Customs--Trade Partnership Against Terrorism (C-TPAT)


Sec. 1811. Establishment

    This section authorizes the Customs-Trade Partnership 
Against Terrorism (C-TPAT) program. C-TPAT was initiated in 
November 2001, and involves voluntary agreements with major 
importers, shippers and other entities whereby they agree to 
establish certain protocols and processes for improving 
international supply chain security at their facilities and the 
federal government provides benefits in the form of decreased 
cargo inspection rates and other commercial benefits. Today, 
the program has over 10,000 applicants and more than 5,600 
certified participants.
    The Committee, while supportive of the program, has 
identified several problems with the C-TPAT program, and 
requires the Secretary to evaluate and, where appropriate, 
implement the recommendations of the Government Accountability 
Office (GAO) report entitled ``Cargo Security: Partnership 
Program Grants Importers Reduced Scrutiny with Limited 
Assurance of Improved Security'' (GAO-05-404). The Secretary is 
also required to develop minimum security requirements for C-
TPAT participation and review the requirements at least once a 
year and update as necessary.

Sec. 1812. Eligible entities

    This section includes a list of private sector entities 
that are eligible to participate in the Customs-Trade 
Partnership Against Terrorism (C-TPAT). Participants include 
importers, brokers, freight forwarders, air, sea, land 
carriers, and any other entity in the international supply 
chain or intermodal transportation system can apply to enter 
the C-TPAT program.

Sec. 1813. Minimum requirements

    This section identifies specific criteria for applicants to 
participate in the Customs-Trade Partnership Against Terrorism 
(C-TPAT). In addition to other requirements identified and 
established by the Secretary of Homeland Security, the criteria 
include a demonstrated history of international commerce. The 
Committee intends that C-TPAT participants have a two-year 
history at a minimum, which would provide adequate historical 
data for the Department to determine whether the applicant has 
a good track record and if any derogatory intelligence has been 
found regarding the entity. The applicant must also complete an 
assessment of supply chains under the C-TPAT program which must 
consider, at a minimum, business partner requirements, 
container security, physical security and access controls, 
personnel security, procedural security, security training and 
threat awareness, and information technology security. The 
Committee intends for the Secretary to use the minimum 
requirements as a baseline and establish additional criteria as 
appropriate. It is through the minimum requirements of site 
access, training, and other security measures that the supply 
chain back to the point of origin is strengthened and 
transparency is attained.

Sec. 1814. Tier One Participants

    This section establishes an initial level, or ``Tier One'' 
of the Customs-Trade Partnership Against Terrorism (C-TPAT) 
program. A C-TPAT member is eligible to receive Tier One status 
after applying for the program and being certified by the 
Secretary of Homeland Security. The Secretary is required to 
establish criteria and guidelines for the certification 
process. The Committee intends the certification process to 
consist of more than a paperwork review. It is essential that 
the certification include a thorough review of the all 
available information on the entity and its primary managers, 
owners, and decision makers.
    Since Tier One members have not received a validation as 
required under Section 1815 of this subtitle, any program 
benefits should be limited in nature and should be commensurate 
with the level of scrutiny received in the certification 
process. The Committee intends that Tier One participants 
receive significantly few benefits than for Tier Two 
(established in Section 1815) or Tier Three (established in 
Section 1816). The Tier One benefit is to provide an incentive 
for eligible entities to sign up and should not greatly impact 
a Tier One participant's number of inspections.

Sec. 1815. Tier Two Participants

    This section establishes a second level or ``Tier Two'' of 
the Customs-Trade Partnership Against Terrorism (C-TPAT) 
program. Within one year of becoming a Tier One member 
(established in Section 1814), the Secretary of Homeland 
Security must conduct a validation of the security measures of 
the participant. The validation must include on-site checks at 
various points along the participants supply chain, including 
foreign locations. The Committee is concerned that some foreign 
countries are refusing to provide access to U.S. Customs and 
Border Protection (CBP) personnel conducting the validations. 
The Committee directs the Secretary of Homeland Security, in 
consultation with the Secretary of State, to work with those 
nations to open up access to ensure security to the point of 
origin to the extent feasible.
    If a C-TPAT participant fails the validation, the CBP 
Commissioner may expel the participant or deny benefits under 
the program, which may include reduced examinations and 
priority for searches. The Secretary of Homeland Security shall 
establish a mechanism for a C-TPAT participant to appeal a 
denial of benefits or expulsion.

Sec. 1816 Tier Three Participants

    This section establishes a third level or ``Tier Three'' of 
the Customs-Trade Partnership Against Terrorism (C-TPAT) 
program. The Committee realizes that some C-TPAT members 
establish procedures above and beyond the minimum requirements 
and may demonstrate a sustained, superior effort through 
investing independently in advanced technologies or instituting 
process which further improve supply chain security. Those 
participants exceeding the minimum criteria established by the 
Secretary should receive greater benefits. The Secretary shall 
consult with the Commercial Operations Advisory Committee and 
the National Maritime Security Advisory Committee to determine 
appropriate benefits and within two years of enactment, the 
Secretary shall determine which additional benefits to provide.
    Among the benefit options, the Secretary shall consider 
providing the participant expedited release of their goods 
provided such actions are consistent with the Protocols for the 
Resumption of Trade outlined in 46 U.S.C. Sec. 70103(a)(2)(J), 
reduced or streamlined bonding requirements if consistent with 
obligations under other applicable provisions of law, a higher 
level of reduced examinations, priority over Tier One and Tier 
Two participants if selected for additional scanning or 
inspection, further reduced scores in the Automated Targeting 
Systems, and streamlined billing of customs duties or fees.

Sec. 1817. Consequences for lack of compliance

    This section establishes consequences if a Customs-Trade 
Partnership Against Terrorism (C-TPAT) member is not in 
compliance with the guidelines of the program. Subsection (a) 
allows the Secretary to deny benefits to the C-TPAT 
participants if their security measures fail to meet the 
program requirements. Subsection (b) provides penalties for 
participants who intentionally provide false or misleading 
information. If the Secretary determines that a C-TPAT member 
intentionally provided false information, that member shall be 
removed from the program for not less than five years. 
Subsection (c) provides an opportunity for appeal for a C-TPAT 
member who has been found to be in violation of the rules of 
the program and denied benefits or removed from the program.

Sec. 1818. Validations by third party entities

    This section authorizes the Secretary of Homeland Security 
to C-TPAT members to contract with certified third parties to 
conduct validations of Customs-Trade Partnership Against 
Terrorism (C-TPAT) members. The requirements of this section 
apply to both the pilot program authorized under this subtitle 
as well as the expanded general use of third parties to conduct 
validations upon the successful completion of the pilot 
program.
    The Committee believes that the authorizing of third 
parties to conduct C-TPAT validations will harness the 
potential efficiencies and cost savings of involving 
responsible non-federal organizations in the validation 
process. Currently, U.S. Customs and Border Protection (CBP) 
has a limited number of inspectors and contract employees 
available to perform validations, and a significant backlog of 
participants awaiting validation. Expanding the validation 
effort through the use of third parties should accelerate the 
timetable for validation and hasten the availability of Tier 
Two benefits available to validated C-TPAT participants.
    Prior to initiating the pilot program under this section, 
the Secretary is required to develop and update minimum 
standard operating procedures for third party validations. 
These procedures should replicate and where possible improve 
upon the processes and procedures currently utilized by CBP in 
carrying out the C-TPAT validations. The Secretary must submit 
the standard operating procedures (along with necessary 
supporting information) for a technical review by the Office of 
SAFETY Act Implementation (or other appropriate components of 
the Department), and ensure that all necessary steps are taken 
to secure the designation of the standard operating procedures 
as a qualified anti-terrorism technology under the SAFETY Act 
[Subtitle G of title VIII of the Homeland Security Act of 2002 
(P.L. 107-296).
    Once the standard operating procedures have been developed 
and designated, the Secretary shall make them available to 
third parties who seek to perform validations as part of the C-
TPAT program. The Secretary shall then issue certificates of 
conformance to third parties who demonstrate the ability to 
perform and agree to perform validations in accordance with 
those standard operating procedures, maintain liability 
insurance in the amount established by the Secretary as part of 
a request for certification; and agree to protect all 
proprietary information of C-TPAT participants from disclosure.
    The issuance of the certificate of conformance entitles the 
third party validator to all of the litigation and risk 
management protections of the SAFETY Act. The Secretary is 
required to monitor and inspect the operations of third party 
entities conducting validations to ensure they continue to meet 
minimum standard operating procedures. If the Secretary finds a 
third party validator is not meeting the minimum requirements, 
the Secretary shall revoke the certificate of conformance and 
review any validation conducted by the entity.
    This section further clarifies that parties to the third 
party validation contracts are to involve the third party 
validator and the C-TPAT participant. The Department is not to 
be a party to the validation contract, nor responsible for the 
cost of the validations. The participant will pay all costs 
associated with the validation. In order to eliminate conflicts 
of interest and possible collusion, this section also requires 
that third party validators be independent of the C-TPAT 
participants they are validating.

Sec. 1819. Revalidation

    This section requires the Secretary of Homeland Security to 
establish a process for revalidation of participants in the 
Customs-Trade Partnership Against Terrorism (C-TPAT) program 
not less than once every three years following the initial 
validation as required in Section 1818 of this subtitle.

Sec. 1820. Non-containerized cargo

    This section authorizes the Secretary of Homeland Security 
to consider expanding the Customs-Trade Partnership Against 
Terrorism (C-TPAT) to allow participation from importers of 
non-containerized cargoes that meet the requirements in this 
subtitle. The Committee directs the Secretary to specifically 
review if the C-TPAT program would provide significant 
improvements for liquid cargo, such as oil and gas, as well as 
roll-on/roll-off cargo.

Sec. 1821. Authorization of appropriations

    This section authorizes $75,000,000 to be provided for each 
of the fiscal years 2007 through 2012 to carry out this 
subtitle on the Customs-Trade Partnership Against Terrorism.

                  Subtitle C--Miscellaneous Provisions


Sec. 1831. Research, Development, Testing & Evaluation efforts in 
        furtherance of maritime and cargo security

    This section requires the Secretary of Homeland Security to 
direct research and development efforts to improve maritime and 
cargo security, encourage ingenuity and participation of the 
private sector, and evaluate technologies. The Committee is 
concerned about the lack of progress in developing and 
utilizing new container security technologies and the lack of 
transparency in the Department's current efforts. This section 
is intended to ensure that the Science and Technology 
Directorate, working with the Director of the Domestic Nuclear 
Detection Office of the Department (established in Section 301) 
and other appropriate Department components coordinate these 
research and development efforts, and that results are shared 
across the Department, as well as with other appropriate 
Federal, State and local agencies.
    Recognizing that we must be aggressive in protecting United 
States seaports, the Committee recommends that the Secretary 
conduct research and development on technology to automatically 
scan identification devices on containers entering and exit 
U.S. ports and to cross reference the appropriate 
identification device to the proper commercial data filed with 
U.S. Customs and Border Protection. Additionally, the Committee 
recommends that the Secretary establish a pilot program to 
evaluate the security benefit of such technology with 
appropriate port security and law enforcement agencies with 
responsibilities for the tracking, monitoring and security of 
cargocontainers and securing port perimeters.

Sec. 1832. Operation Safe Commerce

    This section requires the Secretary of Homeland Security to 
provide grants to the private sector under Operation Safe 
Commerce. The goal of this program is to encourage the 
integration of technologies, test access controls and create 
data sharing capabilities. The Secretary should utilize this 
program to promote public-private partnerships between ports, 
federal, state and local governments, and the private sector to 
identify, test and implement next-generation technologies 
related to supply chain security in the operational 
environment. As part of Operation Safe Commerce, the Secretary 
shall establish demonstration projects to enhance security and 
shall include projects on securing refrigerated containers, 
non-containerized cargo, roll-on/roll-off, and liquid cargo.
    The Secretary shall award grants under this section on a 
competitive process based on criteria set forth in the 
legislation. Additionally, the Secretary shall ensure that 
grants are coordinated with other federally funded research 
projects in this area to avoid duplication and wasteful 
spending. Grant recipients must maintain records of 
expenditures and the Secretary shall annually review projects 
carried out under the program and report to Congress detailing 
the results of Operation Safe Commerce.
    This section authorizes $25,000,000 for Operation Safe 
Commerce for each of fiscal years 2007 through 2012. However, 
this section requires that before new grants may be awarded 
under Operation Safe Commerce, the Secretary must report to 
Congress on the implementation and results of grants previously 
awarded under the program prior to the enactment of this Act. 
The Committee has been frustrated with the lack of information 
available on the status and lessons learned from Operation Safe 
Commerce grant projects funded in fiscal year 2002 and 2003, 
and this reporting requirement is intended to bring 
accountability to the program.

Sec. 1833. Definitions

    This section defines key terms used in this title, 
including ``Automated Targeting System,'' ``examination,'' 
``inspection,'' ``international supply chain,'' ``nuclear and 
radiological detection system,'' ``screening,'' and ``search.''

Sec. 202. Next generation supply chain security technologies

    This section requires the Secretary of Homeland Security to 
continue risk-based screening, scanning, and inspecting of 
cargo while simultaneously evaluating nuclear and radiological 
detection, imagery, density, and other appropriate technologies 
for their commercial viability and use at foreign ports. Not 
later than one year after enactment of this provision, the 
Secretary is required to determine if technology is available 
that has a sufficiently low false alarm rate for use in the 
supply chain; is capable of being deployed and operated at 
ports overseas; is capable of integrating, where necessary, 
with existing systems; does not significantly impact trade 
capacity and flow of cargo at foreign or United States ports; 
and provides an automated notification of questionable or high-
risk cargo as a trigger for further inspection by appropriately 
trained personnel. If such technology is available, this 
section requires that the Secretary, in cooperation with the 
Secretary of State, seek international cooperation to implement 
the use of the technology at foreign ports. In order to secure 
international cooperation, the Secretary is empowered to refuse 
containerized cargo from ports that refuse to cooperate. This 
section also requires the Secretary to submit a report to 
appropriate congressional committees on the evaluation and 
implementation of suitable technology, and an assessment of the 
level of cooperation of foreign governments.
    The intent of these provisions is to provide a realistic 
framework for moving forward with technology capable of 
inspecting higher volumes of cargo at foreign ports than is 
currently available. Some members of the Committee have 
suggested that Congress should require 100 percent inspection 
and scanning of cargo bound for the United States within a 
fixed time frame. The Committee opposes such a requirement. 
While such a goal is admirable, it is simply unrealistic in the 
current environment, given the need for international 
cooperation, shortcomings in existing technology, and the need 
to avoid disrupting the flow of commerce and damaging the 
global economy. The framework established under this section 
provides a more realistic way forward on this important issue.

Sec. 203. Uniform data system for import and export information

    This section requires the President to establish a single, 
uniform data sharing system for collection, dissemination, and 
sharing of import and export information. Since 1995, the 
federal government has been in the process of developing the 
International Trade Data System (ITDS) to be a government-wide 
system for the electronic collection and dissemination of 
international trade and transportation data for use by 
appropriate Federal agencies. The idea behind ITDS is to be a 
clearinghouse of information and facilitate private sector 
reporting mandates by providing a single interface and common 
data requirements. Currently, trade entities are required to 
submit data to multiple federal agencies in different formats, 
with different data requirements, and on different timelines. 
The United Nations Conference on Trade Development has 
estimated that the submission of redundant information and 
preparation of documentation is equal to 4-6 percent of the 
cost of the merchandise.
    The Committee has been frustrated by the lack of progress 
in establishing ITDS. The Committee directs the President to 
push other federal agencies to participate in the system and to 
consult with private sector stakeholders, including the 
National Maritime Security Advisory Committee and the 
Commercial Operations Advisory Committee, to develop uniform 
data requirements and procedures for ITDS. The President shall 
report to Congress on the status and implementation of ITDS 
within 120 days of enactment.

Sec. 204. Foreign Port Assessments

    The Secretary of Homeland Security is required to conduct 
foreign port assessments to determine the effectiveness of 
antiterrorism measures under title 46 U.S.C. Sec. 70108. The 
current statute does not require a reassessment, though the 
U.S. Coast Guard had planned on conducting reassessments every 
five years. The Coast Guard has approximately 20 inspectors who 
complete these assessments. This section requires the Coast 
Guard to conduct reassessments every three years. It is this 
Committee's intent the Coast Guard reallocate the required 
resources to meet this mandate, anticipating a need to double 
the number of inspectors to meet the new three-year mandate.

Sec. 205. Pilot program to improve the security of empty containers

    This section requires the Secretary of Homeland Security to 
conduct a one-year pilot program to evaluate the need to 
provide additional security of empty containers using visual 
inspections. Under current regulations, containers declared as 
empty are not generally inspected by Customs and Border 
Protection officials to ensure that they are actually empty. 
Within 90 days of the completion of the pilot program, the 
Secretary shall provide a report to Congress which must include 
recommendations on what actions are necessary to close this gap 
in our maritime border security.

Sec. 206. Study and report on advanced imagery pilot programs

    This section requires the Secretary of Homeland Security to 
conduct a study on current container inspections pilot 
programs. The study should evaluate the cost, personnel and 
other resources that would be required to implement such 
programs to screen all cargo imported from foreign ports and to 
validate the data by U.S. Customs and Border Protection (CBP) 
personnel. The Secretary shall summarize best practices found 
in the pilots that could be integrated into the Container 
Security Initiative and other U.S. security programs. The 
Committee is interested in how existing security programs could 
be improved through refined targeting capabilities and 
increased container inspection rates. The Committee is 
concerned that insufficient information and modeling exists to 
fully understand the impact of such programs on the supply 
chain and the actual security value that would be provided. The 
Committee was encouraged to receive testimony before the 
Subcommittee on Economic Security, Infrastructure Protection, 
and Cybersecurity on March 16, 2006, from Mr. Jayson Ahern 
regarding CBP's plans to evaluate existing programs. The 
Committeeintends for the study and report, which shall be 
submitted to Congress not later than 60 days after enactment, to 
include the results of that evaluation.

 TITLE III--DIRECTORATE FOR POLICY, PLANNING, AND INTERNATIONAL AFFAIRS


Sec. 301. Establishment of Directorate for Policy, Planning, and 
        International Affairs

    This section authorizes the establishment of a Directorate 
for Policy, Planning, and International Affairs within the 
Department of Homeland Security. In March 2005, the Secretary 
of Homeland Security initiated a comprehensive review of the 
Department's structure, operations, and activities. Pursuant to 
this review--referred to as the Second Stage Review or 2SR--the 
Secretary recommended the establishment of a Department-wide 
policy office headed by an Under Secretary for Policy who would 
report directly to the Secretary.
    This provision establishes the recommended policy office as 
the Directorate for Policy, Planning, and International 
Affairs, to be administered by an Under Secretary for Policy. 
The individual appointed as Under Secretary shall have, by 
education and experience, demonstrated knowledge, ability and 
skill in the fields of policy and strategic planning.
    Among other things, the Under Secretary for Policy shall be 
responsible for: policy development and coordination, including 
providing overall direction and supervision of policy 
development, establishing and implementing a formal 
policymaking process, and ensuring that the Department's budget 
is aligned with its statutory and regulatory responsibilities 
and the Secretary's priorities; strategic planning, including 
conducting long-range planning, preparing national and 
Departmental strategies, and conducting net assessments of 
issues facing the Department; international activities of the 
Department, including promoting information exchange, planning 
and participating in international conferences and exchange 
programs, and overseeing the activities of Department personnel 
operating overseas; and communication with the private sector, 
including fostering strategic communications to enhance the 
Department's primary protective mission, advising the Secretary 
on the impact on the private sector of Departmental policies 
and regulations, and creating and managing private sector 
advisory councils.
    This section transfers the Office of International Affairs, 
established in Section 879 of the Homeland Security Act of 2002 
(P.L. 107-296), and elevates the office's director to the rank 
of Assistant Secretary. This section also establishes the 
following offices and positions within the Directorate: an 
Office of Policy, to be administered by an Assistant Secretary 
for Policy; an Office of Strategic Plans, to be administered by 
an Assistant Secretary for Strategic Plans, and which will 
include a Secure Border Initiative Program Office and a 
Screening Coordination and Operations Office; an Office of the 
Private Sector; a Victim Assistance Officer; a Tribal Security 
Officer; and a Director of Cargo Security Policy.
    The Victim Assistance Officer will coordinate and serve as 
the point of contact for individuals affected by a terrorist 
attack or natural disaster and their families. The Victim 
Assistance Officer will coordinate with relevant officials 
throughout the Department to facilitate the dissemination of 
information regarding assistance programs and other forms of 
aid that may be available in the wake of a disaster, as well as 
to coordinate other concerns raised by affected individuals. 
The Victim Assistance Officer also will coordinate Departmental 
responses to victims with similarly situated officials at the 
Federal Bureau of Investigation, the National Transportation 
Safety Board, and other Federal agencies which respond to an 
act of terrorism or natural disaster.
    The Tribal Security Officer will serve as the single point 
of contact for tribal governments across the United States and 
its territories. Currently, Indian tribes, as defined by 
section 4(e) of the Indian Self-Determination and Education 
Assistance Act, 25 U.S.C. 450b(3), many of which are located 
along the Nation's borders and in border states, have unique 
concerns to address with the Department, and have difficulty 
sharing and receiving important information from the 
Department. The Tribal Security Officer shall coordinate the 
flow of information and ensure that tribal concerns are 
appropriately considered in the development and implementation 
of Departmental policies and programs.
    The Director of Cargo Security Policy will operate under 
the direction and control of the Under Secretary for Policy. 
The responsibilities of the Director will include: advising the 
Assistant Secretary for Policy regarding all Departmental cargo 
security programs, policies, and initiatives; developing 
Department-wide cargo security policies; and coordinating 
Departmental cargo security policies and programs with other 
Federal departments and agencies. The Director's coordination 
role includes working with officials of the Departments of 
Energy and State in the negotiation of international cargo 
security agreements.

             TITLE IV--OFFICE OF DOMESTIC NUCLEAR DETECTION


Section 401. Establishment of Office

Section 2001--Domestic Nuclear Detection Office

    This section establishes the Domestic Nuclear Detection 
Office (DNDO) within the Department of Homeland Security, which 
shall be administered by a Director, who shall be appointed by 
the President. The DNDO will be focused on detecting and 
preventing the unauthorized importation, possession, storage, 
transportation, development, or use of a nuclear explosive 
device, fissile material, or radiological material against the 
United States.
    The Committee strongly supports the establishment of the 
Domestic Nuclear Detection Office. Should terrorists gain 
access to the requisite material for a nuclear explosive, it is 
essential that we develop and utilize the best possible 
technology to assist interdiction prior to attack. Detection 
technologies, particularly when combined with timely 
intelligence, can be vitally important in this regard.

Section 2002--Functions of the Director of the Domestic Nuclear 
        Detection Office

    This section directs the Secretary of Homeland Security to 
vest in the Director of the Domestic Nuclear Detection Office 
(DNDO) the primary responsibility for implementing the 
Department's programs related to the detection and prevention 
of nuclear and radiological terrorism. The Director is also 
responsible for coordinating such programs with other Federal 
agencies performing related activities.
    The authority to administer all of the Department's 
research and development as well as acquisition and deployment 
programs for nuclear and radiological detection systems that 
had previously existed in other elements of the Department is 
transferred to DNDO. This includes the Department of Energy's 
Nuclear Assessment Program and the Environmental Measurements 
Laboratory which were transferred to the Department in 2002. 
Section 2010(c) provides for the transfer of relevant nuclear 
and radiological programs that were previously in the Science 
and Technology Directorate to DNDO.

Section 2003--Global Nuclear Detection Architecture

    This section requires the Director of the Domestic Nuclear 
Detection Office to develop a global strategy for interdicting 
illicit nuclear and radiological material. This strategy will 
be used to guide detector deployments under the ``global 
nuclear detection architecture.'' The architecture is a multi-
layered system of detectors deployed internationally and 
domestically to detect and interdict nuclear materials intended 
for illicit use. The Director is assigned the responsibility of 
implementing the architecture within U.S. borders. The 
Department of Energy, Department of State, the Department of 
Defense, and others will continue to implement foreign 
deployments as part of their missions, but the Director has the 
authority to perform such deployments as necessary. The 
Director must ensure that the efforts of all participants are 
coordinated in order to create a fully integrated detection 
system.

Section 2004--Research and development

    This section requires the Director of the Domestic Nuclear 
Detection Office to develop and execute a research and 
development program focused on achieving dramatically improved 
detection capabilities for nuclear explosive devices as well as 
radiological dispersion devices. Thisrequirement recognizes and 
attempts to correct the current deficiencies in radiation detection 
technologies. This section promotes ``transformational'' research and 
development by requiring support for high-risk as well as long term 
projects. As other Federal agencies are engaged in radiation detection 
research there is a requirement for coordination to avoid duplication 
and encourage technology sharing. This should allow for more strategic 
investments across the Federal government.

Section 2005--System assessments

    This section requires the technology development and 
acquisition programs within the Domestic Nuclear Detection 
Office (DNDO) to make use of a rigorous testing program to 
provide a ``bottom line'' assessment of capabilities prior to 
deployment. Problems have existed in the past where 
technologies have been acquired and deployed without knowledge 
of their true capabilities. The required testing will ensure 
that performance capabilities under realistic operating 
conditions will be known. For newly developed, advanced 
detection systems, it will also enable the verification that 
desired capabilities have been attained.
    The design of the global detection architecture will also 
be evaluated. This evaluation will look at the effectiveness of 
the system of detectors as a whole, rather than individual 
detectors. Red teaming activities will be used to develop an 
understanding of possible adversary strategies and concealment 
methods. Net assessments can then gauge the overall system 
performance against these tactics. Results will be used to 
optimize detection system deployment and to guide the research 
programs within the Office.

Section 2006--Technology acquisition, deployment, support and training

    This section authorizes the Domestic Nuclear Detection 
Office (DNDO) to purchase the requisite detection systems to 
implement the domestic portion of the detection architecture as 
well as any foreign deployments. The Director will acquire such 
systems for all of the Department's operational units that 
require them, including Customs and Border Protection. The 
Director will make recommendations to the Undersecretary for 
Science and Technology as to whether the acquired detection 
systems fulfill the existing criteria for protection under the 
SAFETY Act , Subtitle G of title VIII of the Homeland Security 
Act of 2002 (P.L. 107-296).
    As systems are deployed, a key element of their 
effectiveness will be competent operational support. The 
Director is required to provide training to end users to ensure 
that the systems will be operated properly. Technical 
reachback, assistance by technical experts in interpreting 
detector data, is critical and must also be provided. Alarms 
must be reviewed to determine if they are valid or they result 
from a benign source of radiation or detector malfunction.

Section 2007--Situational awareness

    The Director of the Domestic Nuclear Detection Office 
(DNDO) is made responsible for monitoring the global network of 
detection systems for valid alarms. Should an alarm be verified 
as an actual smuggling event, the Director must immediately 
inform the relevant response entities of the Federal 
government. The DNDO must also be ready to assist in resolving 
alarms or incidents reported by any Federal, State, tribal or 
local officials.
    It will be important for the DNDO to gather and archive the 
data from the routine operation of its detection systems. This 
information can be used to better characterize the radiation 
signatures associated with benign flows of commerce and 
understand the impact of naturally occurring radioactive 
material. This knowledge can then be used to strengthen the 
effectiveness of the global architecture in detecting illicit 
nuclear and radiological material.

Section 2008--Forensic analysis

    The Domestic Nuclear Detection Office (DNDO) is given the 
authority in this section to implement the Department of 
Homeland Security (DHS) programs as necessary to develop the 
analytical capabilities required to determine the nature of any 
seized nuclear or radiological material and its likely source. 
Through its Nuclear Assessment Program, the DNDO is already 
engaged in investigating nuclear smuggling events.

Section 2009--Threat information

    This section gives the Director of the Domestic Nuclear 
Detection Office (DNDO) access, through the Secretary of 
Homeland Security, to all information, including intelligence, 
necessary to successfully fulfill the Director's 
responsibilities. The Director will also request the necessary 
analytic support from the Chief Intelligence Officer. The 
Director is authorized to hire professional analysts to perform 
the requisite work within the Office. The Director will submit 
intelligence collection requests through the Chief Intelligence 
Officer as needed.
    All aspects of the Director's functions must be informed 
with the best available intelligence information. The design 
and implementation of an effective global detection 
architecture requires strategic placement of detectors. Such 
decisions must be informed, and require insight into known 
smuggling routes, global locations of nuclear material, and 
known terrorist tactics. Similarly, the detection signatures of 
various nuclear and radiological devices and materials must be 
identified to support research and development efforts and to 
test detection systems.

Section 2010--Administrative authorities

    This section gives the Director of the Domestic Nuclear 
Detection Office (DNDO) the same hiring authorities as the 
Homeland Security Advanced Research Projects Agency (HSARPA) 
which are designed to attract highly qualified technical 
personnel.

Section 2011--Report requirement

    This section requires the Director of the Domestic Nuclear 
Detection Office to submit to the appropriate Congressional 
committees an annual report containing the following 
information: the global detection strategy developed under 
section 2003 the status of implementation of such architecture, 
the schedule for future detection system deployments under such 
architecture, the research and development program of the 
Office, and a summary of actions taken by the Office during the 
reporting period to counter nuclear and radiological threats. 
This will give the congress the information it needs to review 
budgets and evaluate progress.

Section 2012--Advisory council on nuclear detection

    The Director of the Domestic Nuclear Detection Office 
(DNDO) shall form a five member advisory council on nuclear 
detection which will, at the request of the Director, provide 
advice on the design of the global detection architecture and 
the DNDO research and development program. The Council will be 
made up of nongovernmental experts on nuclear detection and 
related topics. The Secretary of Homeland Security is 
authorized under Section 871 of the Homeland Security Act of 
2002 (P.L. 107-296) to exempt the Council from requirements 
under the Federal Advisory Committee Act (Public Law 92-463). 
The Committee believes such an exemption would be appropriate 
for this Council given the sensitive nature of its mission.

Section 2013--Interagency coordination council

    This section requires the Director of the Domestic Nuclear 
Detection Office (DNDO) to coordinate the implementation of the 
global nuclear detection architecture and the DNDO research and 
development program with other relevant Federal agencies. 
Through its Container Security Initiative, the Department of 
Homeland Security oversees the examination of high risk cargo 
in foreign ports. However, other Federal agencies, such as the 
Department of Energy and the Department of Defense, have been 
engaged in complementary activities in many countries and 
perform related detection research and development. The 
Director will chair an interagency coordination council to be 
established by the President. The President will direct 
representatives from all relevant agencies to join the 
interagency council to ensure that the work of each agency 
contributes to the deployment of an effective and efficient 
global detection architecture. The precise operation of the 
council is left for the President to determine.

Section 2014--Authorization of appropriations

    This section authorizes the full budget request of $536 
million for the Domestic Nuclear Detection Office (DNDO) to 
perform its duties in Fiscal Year 2007 and such sums as 
necessary for each subsequent fiscal year. This funding is 
sufficient to support the full spectrum of activities described 
in this title.

Section 2015--Definitions

    The section contains the definitions of the terms used in 
this title. It also contains necessary conforming and clerical 
amendments.
    This section defines ``nuclear and radiological detection 
systems'' as any technology ``capable of detecting or 
identifying nuclear and radiological material or explosive 
devices.'' This definition focuses on the matter to be detected 
and not the means of detection. This is done to provide the 
widest possible latitude in the selection of detection 
technology.

Section 402. Nuclear and radiological detection systems

    This section will promote the development of next 
generation, radiation detection capabilities and make this 
capability available at high volume seaports where it is most 
needed. As the Fiscal Year 2007 Domestic Nuclear Detection 
Office (DNDO) budget includes funds for the requisite number of 
deployments, additional funds should not be needed to implement 
this section.
    This section requires nuclear and radiological detection 
capabilities to be deployed at 22 United States seaports by the 
end of Fiscal Year 2007. If selected on a basis of volume, the 
22 seaports would represent sites where 98 percent of all 
containerized cargo enters the United States. A report shall be 
submitted to Congress within 90 days of enactment describing 
the risk-based prioritization of U.S. seaports used to guide 
nuclear and radiological detection system deployment. The 
timeline of deployment, type of systems, standard operating 
procedures and policy for use of such system shall be included 
in the report. Classified annexes will be included that 
describe any plans for covert testing of the systems and the 
risk based approach utilized to identify the priority seaports. 
Within 180 days of enactment, a safety plan shall also be 
submitted to Congress which describes the potential health and 
safety risks in using any of these systems.
    This section requires the pilot deployment and operational 
testing of next generation radiation portal monitor (RPM) 
technology at one or more seaports by January 1, 2007, and if 
the desired level of performance is attained after 3 months of 
testing, it requires DNDO to make the advanced capability 
available to all high volume, U.S. seaports before September 
30, 2007. (Next generation RPMs possess radioisotope 
identification capabilities.) The Director of DNDO shall report 
to Congress the results of the pilot testing program and any 
implementation problems with the subsequent deployments. Should 
such deployments be judged to be inefficient or wasteful, e.g., 
the benefits of the next-generation technology are insufficient 
or do not outweigh the costs when compared to existing systems, 
the Secretary shall notify Congress and recommend alternative 
actions.
    The nature of operations at high volume seaports limits the 
effectiveness and feasibility of operation of current 
generation radiation portal monitors (RPMs). As current RPMs 
detect any radiation, they will alarm when a naturally 
occurring radiation source is in a container, e.g., bananas. 
These so-called ``nuisance alarms'' can be intolerable at large 
volume seaports, leading operators to turn down the sensitivity 
of the RPM, essentially rendering them useless. Next generation 
RPMs will be capable of measuring the energy of the radiation 
emitted, so they can distinguish a benign radiation source from 
actual threats. Nuisance alarm rates should therefore be 
dramatically reduced. When proven effective, they will enable a 
much larger fraction of cargo to be examined without slowing 
the flow of commerce.
    The section does not require 100 percent screening of 
containerized cargo at these seaports. In fact it does not 
specify any cargo screening quota. Decisions to screen will 
still be based on a risk based approach. It does require that 
better screening capabilities, when proven, be made widely 
available. The proven technology will be available for foreign 
deployment as well. The reduction in nuisance alarms may ease 
concerns of foreign port operators over disruptions in 
operations.

         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):

              CHAPTER 701 OF TITLE 46, UNITED STATES CODE


                       CHAPTER 701--PORT SECURITY

Sec.
70101. Definitions.
     * * * * * * *
[70107. Grants.]
     * * * * * * *
70122. Maritime security command centers.

Sec. 70101. Definitions

  For the purpose of this chapter:
          (1) * * *

           *       *       *       *       *       *       *

          (6) The term ``transportation security incident'' 
        means a security incident resulting in a significant 
        loss of life, environmental damage, transportation 
        system disruption, or economic disruption (other than 
        economic disruption caused by acts that are unrelated 
        to terrorism and are committed during a labor strike, 
        demonstration, or other type of labor unrest) in a 
        particular area.

           *       *       *       *       *       *       *


Sec. 70103. Maritime transportation security plans

  (a) National Maritime Transportation Security Plan.--(1)  * * 
*
  (2) The National Maritime Transportation Security Plan shall 
provide for efficient, coordinated, and effective action to 
deter and minimize damage from a transportation security 
incident, and shall include the following:
          (A)  * * *

           *       *       *       *       *       *       *

          (J)(i) A plan for ensuring that the flow of cargo 
        through United States ports is reestablished as 
        efficiently and quickly as possible after a 
        transportation security incident.
          (ii) The plan required by clause (i) shall include 
        protocols for the resumption of trade in the event of a 
        transportation security incident that necessitates the 
        suspension of trade through contingency and continuity 
        planning that ensures trade lanes are restored as 
        quickly as possible. The protocols shall provide for--
                  (I) coordination with appropriate Federal, 
                State, and local agencies, the private sector, 
                and appropriate overseas entities in developing 
                such contingency and continuity planning;
                  (II) coordination with appropriate Federal, 
                State, and local agencies and the private 
                sector on law enforcement actions, inter-modal 
                rerouting plans, and identification and 
                prioritization of goods that may enter the 
                United States; and
                  (III) designation of appropriate Federal 
                officials to work with port authorities to 
                reestablish the flow of cargo by prioritizing 
                shipments based on appropriate factors, 
                including factors relating to public health, 
                national security, and economic need.

           *       *       *       *       *       *       *

  (c) Vessel and Facility Security Plans.--(1)  * * *

           *       *       *       *       *       *       *

  (3) A security plan required under this subsection shall--
          (A)  * * *

           *       *       *       *       *       *       *

          (C) include provisions for--
                  (i)  * * *
                  (ii) establishing and controlling access to 
                secure areas of the vessel or facility, 
                including access by individuals engaged in the 
                surface transportation of intermodal containers 
                in or out of a port facility;

           *       *       *       *       *       *       *

          (E) describe [the training, periodic unannounced 
        drills, and] security actions of persons on the vessel 
        or at the facility, to be carried out under the plan to 
        deter to the maximum extent practicable a 
        transportation security incident, or a substantial 
        threat of such a security incident;
          (F) provide a strategy and timeline for conducting 
        training and periodic unannounced drills for persons on 
        the vessel or at the facility to be carried out under 
        the plan to deter, to the maximum extent practicable, a 
        transportation security incident or a substantial 
        threat of such a transportation security incident;
          [(F)] (G) be updated at least every 5 years; and
          [(G)] (H) be resubmitted for approval of each change 
        to the vessel or facility that may substantially affect 
        the security of the vessel or facility.
  (4) The Secretary shall--
          (A)  * * *

           *       *       *       *       *       *       *

          [(D) review each plan periodically thereafter.]
          (D) verify the effectiveness of each such facility 
        security plan periodically, but not less than twice 
        annually, at least one of which shall be an inspection 
        of the facility that is conducted without notice to the 
        facility.

           *       *       *       *       *       *       *


Sec. 70105. Transportation security cards

  (a)  * * *

           *       *       *       *       *       *       *

  (c) Determination of Terrorism Security Risk.--(1) * * *
  (2) The Secretary shall prescribe regulations that establish 
a waiver process for issuing a transportation security card to 
an individual found to be otherwise ineligible for such a card 
under subparagraph (A), (B), or (D) of paragraph (1). In 
deciding to issue a card to such an individual, the Secretary 
shall--
          (A)  * * *

           *       *       *       *       *       *       *


[Sec. 70107. Grants

  [(a) In General.--The Secretary shall establish a grant 
program for making a fair and equitable allocation of funds to 
implement Area Maritime Transportation Security Plans and 
facility security plans among port authorities, facility 
operators, and State and local government agencies required to 
provide port security services. Before awarding a grant under 
the program, the Secretary shall provide for review and comment 
by the appropriate Federal Maritime Security Coordinators and 
the Maritime Administrator. In administering the grant program, 
the Secretary shall take into account national economic and 
strategic defense concerns.
  [(b) Eligible Costs.--The following costs of funding the 
correction of Coast Guard identified vulnerabilities in port 
security and ensuring compliance with Area Maritime 
Transportation Security Plans and facility security plans are 
eligible to be funded:
          [(1) Salary, benefits, overtime compensation, 
        retirement contributions, and other costs of additional 
        Coast Guard mandated security personnel.
          [(2) The cost of acquisition, operation, and 
        maintenance of security equipment or facilities to be 
        used for security monitoring and recording, security 
        gates and fencing, marine barriers for designated 
        security zones, security-related lighting systems, 
        remote surveillance, concealed video systems, security 
        vessels, and other security-related infrastructure or 
        equipment that contributes to the overall security of 
        passengers, cargo, or crewmembers.
          [(3) The cost of screening equipment, including 
        equipment that detects weapons of mass destruction and 
        conventional explosives, and of testing and evaluating 
        such equipment, to certify secure systems of 
        transportation.
          [(4) The cost of conducting vulnerability assessments 
        to evaluate and make recommendations with respect to 
        security.
  [(c) Matching Requirements.--
          [(1) 75-percent federal funding.--Except as provided 
        in paragraph (2), Federal funds for any eligible 
        project under this section shall not exceed 75 percent 
        of the total cost of such project.
          [(2) Exceptions.--
                  [(A) Small projects.--There are no matching 
                requirements for grants under subsection (a) 
                for projects costing not more than $25,000.
                  [(B) Higher level of support required.--If 
                the Secretary determines that a proposed 
                project merits support and cannot be undertaken 
                without a higher rate of Federal support, then 
                the Secretary may approve grants under this 
                section with a matching requirement other than 
                that specified in paragraph (1).
  [(d) Coordination and Cooperation Agreements.--The Secretary 
shall ensure that projects paid for, or the costs of which are 
reimbursed, under this section within any area or port are 
coordinated with other projects, and may require cooperative 
agreements among users of the port and port facilities with 
respect to projects funded under this section.
  [(e) Administration.--
          [(1) In general.--The program shall require eligible 
        port authorities, facility operators, and State and 
        local agencies required to provide security services, 
        to submit an application, at such time, in such form, 
        and containing such information and assurances as the 
        Secretary may require, and shall include appropriate 
        application, review, and delivery mechanisms.
          [(2) Minimum standards for payment or 
        reimbursement.--Each application for payment or 
        reimbursement of eligible costs shall include, at a 
        minimum, the following:
                  [(A) A copy of the applicable Area Maritime 
                Transportation Security Plan or facility 
                security plan.
                  [(B) A comprehensive description of the need 
                for the project, and a statement of the 
                project's relationship to the applicable Area 
                Maritime Transportation Security Plan or 
                facility security plan.
                  [(C) A determination by the Captain of the 
                Port that the security project addresses or 
                corrects Coast Guard identified vulnerabilities 
                in security and ensures compliance with Area 
                Maritime Transportation Security Plans and 
                facility security plans.
          [(3) Procedural safeguards.--The Secretary shall by 
        regulation establish appropriate accounting, reporting, 
        and review procedures to ensure that amounts paid or 
        reimbursed under this section are used for the purposes 
        for which they were made available, all expenditures 
        are properly accounted for, and amounts not used for 
        such purposes and amounts not obligated or expended are 
        recovered.
          [(4) Project approval required.--The Secretary may 
        approve an application for the payment or reimbursement 
        of costs under this section only if the Secretary is 
        satisfied that--
                  [(A) the project is consistent with Coast 
                Guard vulnerability assessments and ensures 
                compliance with Area Maritime Transportation 
                Security Plans and facility security plans;
                  [(B) enough money is available to pay the 
                project costs that will not be reimbursed by 
                the United States Government under this 
                section;
                  [(C) the project will be completed without 
                unreasonable delay; and
                  [(D) the recipient has authority to carry out 
                the project as proposed.
  [(f) Audits and Examinations.--A recipient of amounts made 
available under this section shall keep such records as the 
Secretary may require, and make them available for review and 
audit by the Secretary, the Comptroller General of the United 
States, or the Inspector General of the department in which the 
Coast Guard is operating.
  [(g) Reports on Security Funding and Compliance.--
          [(1) Initial report.--Within 6 months after the date 
        of enactment of this Act, the Secretary shall transmit 
        an unclassified report to the Senate Committee on 
        Commerce, Science, and Transportation and the House of 
        Representatives Committee on Transportation and 
        Infrastructure, that--
                  [(A) includes a funding proposal and 
                rationale to fund the correction of Coast Guard 
                identified vulnerabilities in port security and 
                to help ensure compliance with Area Maritime 
                Transportation Security Plans and facility 
                security plans for fiscal years 2003 through 
                2008; and
                  [(B) includes projected funding proposals for 
                fiscal years 2003 through 2008 for the 
                following security programs:
                          [(i) The Sea Marshall program.
                          [(ii) The Automated Identification 
                        System and a system of polling vessels 
                        on entry into United States waters.
                          [(iii) The maritime intelligence 
                        requirements in this Act.
                          [(iv) The issuance of transportation 
                        security cards required by section 
                        70105.
                          [(v) The program of certifying secure 
                        systems of transportation.
          [(2) Other expenditures.--The Secretary shall, as 
        part of the report required by paragraph (1) report, in 
        coordination with the Commissioner of Customs, on 
        projected expenditures of screening and detection 
        equipment and on cargo security programs over fiscal 
        years 2003 through 2008.
          [(3) Annual reports.--Annually, beginning 1 year 
        after transmittal of the report required by paragraph 
        (1) until October 1, 2009, the Secretary shall transmit 
        an unclassified annual report to the Senate Committee 
        on Commerce, Science, and Transportation and the House 
        of Representatives Committee on Transportation and 
        Infrastructure, on progress in achieving compliance 
        with the correction of Coast Guard identified 
        vulnerabilities in port security and compliance with 
        Area Maritime Transportation Security Plans and 
        facility security plans that--
                  [(A) identifies any modifications necessary 
                in funding to ensure the correction of Coast 
                Guard identified vulnerabilities and ensure 
                compliance with Area Maritime Transportation 
                Security Plans and facility security plans;
                  [(B) includes an assessment of progress in 
                implementing the grant program established by 
                subsection (a);
                  [(C) includes any recommendations the 
                Secretary may make to improve these programs; 
                and
                  [(D) with respect to a port selected by the 
                Secretary, describes progress and enhancements 
                of applicable Area Maritime Transportation 
                Security Plans and facility security plans and 
                how the Maritime Transportation Security Act of 
                2002 has improved security at that port.
  [(h) Authorization of Appropriations.--There are authorized 
to be appropriated to the Secretary for each of fiscal years 
2003 through 2008 such sums as are necessary to carry out 
subsections (a) through (g).
  [(i) Investigations.--
          [(1) In general.--The Secretary shall conduct 
        investigations, fund pilot programs, and award grants, 
        to examine or develop--
                  [(A) methods or programs to increase the 
                ability to target for inspection vessels, 
                cargo, crewmembers, or passengers that will 
                arrive or have arrived at any port or place in 
                the United States;
                  [(B) equipment to detect accurately 
                explosives, chemical, or biological agents that 
                could be used in a transportation security 
                incident against the United States;
                  [(C) equipment to detect accurately nuclear 
                or radiological materials, including 
                scintillation-based detection equipment capable 
                of signalling the presence of nuclear or 
                radiological materials;
                  [(D) improved tags and seals designed for use 
                on shipping containers to track the 
                transportation of the merchandise in such 
                containers, including sensors that are able to 
                track a container throughout its entire supply 
                chain, detect hazardous and radioactive 
                materials within that container, and transmit 
                that information to the appropriate law 
                enforcement authorities;
                  [(E) tools, including the use of satellite 
                tracking systems, to increase the awareness of 
                maritime areas and to identify potential 
                transportation security incidents that could 
                have an impact on facilities, vessels, and 
                infrastructure on or adjacent to navigable 
                waterways, including underwater access;
                  [(F) tools to mitigate the consequences of a 
                transportation security incident on, adjacent 
                to, or under navigable waters of the United 
                States, including sensor equipment, and other 
                tools to help coordinate effective response to 
                a transportation security incident;
                  [(G) applications to apply existing 
                technologies from other areas or industries to 
                increase overall port security;
                  [(H) improved container design, including 
                blast-resistant containers; and
                  [(I) methods to improve security and 
                sustainability of port facilities in the event 
                of a maritime transportation security incident, 
                including specialized inspection facilities.
          [(2) Implementation of technology.--
                  [(A) In general.--In conjunction with ongoing 
                efforts to improve security at United States 
                ports, the Secretary may conduct pilot projects 
                at United States ports to test the 
                effectiveness and applicability of new port 
                security projects, including--
                          [(i) testing of new detection and 
                        screening technologies;
                          [(ii) projects to protect United 
                        States ports and infrastructure on or 
                        adjacent to the navigable waters of the 
                        United States, including underwater 
                        access; and
                          [(iii) tools for responding to a 
                        transportation security incident at 
                        United States ports and infrastructure 
                        on or adjacent to the navigable waters 
                        of the United States, including 
                        underwater access.
                  [(B) Authorization of appropriations.--There 
                is authorized to be appropriated to the 
                Secretary $35,000,000 for each of fiscal years 
                2005 through 2009 to carry out this subsection.
          [(3) National port security centers.--
                  [(A) In general.--The Secretary may make 
                grants or enter into cooperative agreements 
                with eligible nonprofit institutions of higher 
                learning to conduct investigations in 
                collaboration with ports and the maritime 
                transportation industry focused on enhancing 
                security of the Nation's ports in accordance 
                with this subsection through National Port 
                Security Centers.
                  [(B) Applications.--To be eligible to receive 
                a grant under this paragraph, a nonprofit 
                institution of higher learning, or a consortium 
                of such institutions, shall submit an 
                application to the Secretary in such form and 
                containing such information as the Secretary 
                may require.
                  [(C) Competitive selection process.--The 
                Secretary shall select grant recipients under 
                this paragraph through a competitive process on 
                the basis of the following criteria:
                          [(i) Whether the applicant can 
                        demonstrate that personnel, laboratory, 
                        and organizational resources will be 
                        available to the applicant to carry out 
                        the investigations authorized in this 
                        paragraph.
                          [(ii) The applicant's capability to 
                        provide leadership in making national 
                        and regional contributions to the 
                        solution of immediate and long-range 
                        port and maritime transportation 
                        security and risk mitigation problems.
                          [(iii) Whether the applicant can 
                        demonstrate that is has an established, 
                        nationally recognized program in 
                        disciplines that contribute directly to 
                        maritime transportation safety and 
                        education.
                          [(iv) Whether the applicant's 
                        investigations will involve major 
                        United States ports on the East Coast, 
                        the Gulf Coast, and the West Coast, and 
                        Federal agencies and other entities 
                        with expertise in port and maritime 
                        transportation.
                          [(v) Whether the applicant has a 
                        strategic plan for carrying out the 
                        proposed investigations under the 
                        grant.
          [(4) Administrative provisions.--
                  [(A) No duplication of effort.--Before making 
                any grant, the Secretary shall coordinate with 
                other Federal agencies to ensure the grant will 
                not duplicate work already being conducted with 
                Federal funding.
                  [(B) Accounting.--The Secretary shall by 
                regulation establish accounting, reporting, and 
                review procedures to ensure that funds made 
                available under paragraph (1) are used for the 
                purpose for which they were made available, 
                that all expenditures are properly accounted 
                for, and that amounts not used for such 
                purposes and amounts not expended are 
                recovered.
                  [(C) Recordkeeping.--Recipients of grants 
                shall keep all records related to expenditures 
                and obligations of funds provided under 
                paragraph (1) and make them available upon 
                request to the Inspector General of the 
                department in which the Coast Guard is 
                operating and the Secretary for audit and 
                examination.
          [(5) Annual review and report.--The Inspector General 
        of the department in which the Coast Guard is operating 
        shall annually review the programs established under 
        this subsection to ensure that the expenditures and 
        obligations of funds are consistent with the purposes 
        for which they are provided, and report the findings to 
        the Committee on Commerce, Science, and Transportation 
        of the Senate and the Committee on Transportation and 
        Infrastructure of the House of Representatives.]

Sec. 70108. Foreign port assessment

  (a)  * * *

           *       *       *       *       *       *       *

  (d) Periodic Reassessment.--The Secretary, acting through the 
Commandant of the Coast Guard, shall reassess the effectiveness 
of antiterrorism measures maintained at ports as described 
under subsection (a) and of procedures described in subsection 
(b) not less than every 3 years.

           *       *       *       *       *       *       *


Sec. 70115. Long-range vessel tracking system

  [The Secretary] Not later than April 1, 2007, the Secretary 
shall, consistent with international treaties, conventions, and 
agreements to which the United States is a party, develop and 
implement a long-range automated vessel tracking system for all 
vessels in United States waters that are equipped with the 
Global Maritime Distress and Safety System or equivalent 
satellite technology. The system shall be designed to provide 
the Secretary the capability of receiving information on vessel 
positions at interval positions appropriate to deter 
transportation security incidents. The Secretary may use 
existing maritime organizations to collect and monitor tracking 
information under the system.

           *       *       *       *       *       *       *


Sec. 70122. Maritime security command centers

  (a) Establishment.--The Secretary shall establish an 
integrated network of virtual and physical maritime security 
command centers at appropriate United States seaports and 
maritime regions, as determined by the Secretary, to--
          (1) enhance information sharing;
          (2) facilitate day-to-day operational coordination; 
        and
          (3) in the case of a transportation security 
        incident, facilitate incident management and response.
  (b) Characteristics.--Each maritime security command center 
described in subsection (a) shall--
          (1) be regionally based and utilize where available 
        the compositional and operational characteristics, 
        facilities and information technology systems of 
        current operational centers for port and maritime 
        security and other similar existing facilities and 
        systems;
          (2) be adapted to meet the security needs, 
        requirements, and resources of the seaport and maritime 
        region the center will cover; and
          (3) to the maximum extent practicable, not involve 
        the construction of new facilities, but shall utilize 
        information technology, virtual connectivity, and 
        existing facilities to create an integrated, real-time 
        communication and information sharing network.
  (c) Participation.--The following entities shall participate 
in the integrated network of maritime security command centers 
described in subsection (a):
          (1) The Coast Guard.
          (2) U.S. Customs and Border Protection.
          (3) U.S. Immigration and Customs Enforcement.
          (4) Other appropriate Federal, State, and local law 
        enforcement agencies.
  (d) Responsibilities.--Each maritime security command center 
described in subsection (a) shall--
          (1) assist, as appropriate, in the implementation of 
        maritime transportation security plans developed under 
        section 70103;
          (2) implement the transportation security incident 
        response plans required under section 70104;
          (3) carry out information sharing activities 
        consistent with those activities required under section 
        1016 of the National Security Intelligence Reform Act 
        of 2004 (6 U.S.C. 485) and the Homeland Security 
        Information Sharing Act (6 U.S.C. 481 et seq.);
          (4) conduct short- and long-range vessel tracking 
        under sections 70114 and 70115; and
          (5) carry out such other responsibilities as 
        determined by the Secretary.
  (e) Security Clearances.--The Secretary shall sponsor and 
expedite individuals participating in a maritime security 
command center described in subsection (a) in gaining or 
maintaining their security clearances. Through the Captain of 
the Port, the Secretary may identify key individuals who should 
participate. In addition, the port or other entities may appeal 
to the Captain of the Port for sponsorship.
  (f) Security Incidents.--During a transportation security 
incident involving the port, the Coast Guard Captain of the 
Port designated by the Commandant of the Coast Guard in a 
maritime security command center described in subsection (a) 
shall act as the incident commander, unless otherwise directed 
by the President.
  (g) Rule of Construction.--Nothing in this section shall be 
construed to affect the normal command and control procedures 
for operational entities in the Department, unless so directed 
by the Secretary.
  (h) Authorization of Appropriations.--There are authorized to 
be appropriated $60,000,000 for each of the fiscal years 2007 
through 2012 to carry out this section and section 108(c) of 
the Security and Accountability For Every Port Act.
                              ----------                              


                     HOMELAND SECURITY ACT OF 2002

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

  (a) Short Title.--This Act may be cited as the ``Homeland 
Security Act of 2002''.
  (b) Table of Contents.--The table of contents for this Act is 
as follows:

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

              TITLE V--EMERGENCY PREPAREDNESS AND RESPONSE

Sec. 501. Under Secretary for Emergency Preparedness and Response.
     * * * * * * *
Sec. 510. Procurement of security countermeasures for strategic national 
          stockpile.
Sec. 511. Urban and other high risk area communications capabilities.
Sec. 512. Port security grant program.

   [TITLE VI--TREATMENT OF CHARITABLE TRUSTS FOR MEMBERS OF THE ARMED 
    FORCES OF THE UNITED STATES AND OTHER GOVERNMENTAL ORGANIZATIONS

[Sec. 601. Treatment of charitable trusts for members of the Armed 
          Forces of the United States and other governmental 
          organizations.]

          TITLE VI--POLICY, PLANNING, AND INTERNATIONAL AFFAIRS

Sec. 601. Directorate for Policy, Planning, and International Affairs.
Sec. 602. Office of International Affairs.
Sec. 603. Other offices and officials.
     * * * * * * *

 TITLE VIII--COORDINATION WITH NON-FEDERAL ENTITIES; INSPECTOR GENERAL; 
      UNITED STATES SECRET SERVICE; COAST GUARD; GENERAL PROVISIONS

           Subtitle A--Coordination with Non-Federal Entities

Sec. 801. Office for State and Local Government Coordination.
Sec. 802. Port security training program.
Sec. 803. Port security exercise program.
     * * * * * * *

                  Subtitle H--Miscellaneous Provisions

     * * * * * * *
[Sec. 879. Office of International Affairs.]
     * * * * * * *

         TITLE XVIII--SECURITY OF THE INTERNATIONAL SUPPLY CHAIN

                     Subtitle A--General Provisions

Sec. 1801. Strategic plan to enhance the security of the international 
          supply chain.
Sec. 1802. Transmission of additional data elements for improved high 
          risk targeting.
Sec. 1803. Plan to improve the Automated Targeting System.
Sec. 1804. Container standards and verification procedures.
Sec. 1805. Container Security Initiative (CSI).
Sec. 1806. Information sharing relating to supply chain security 
          cooperation.

    Subtitle B--Customs-Trade Partnership Against Terrorism (C-TPAT)

Sec. 1811. Establishment.
Sec. 1812. Eligible entities.
Sec. 1813. Minimum requirements.
Sec. 1814. Tier one participants.
Sec. 1815. Tier two participants.
Sec. 1816. Tier three participants.
Sec. 1817. Consequences for lack of compliance.
Sec. 1818. Validations by third party entities.
Sec. 1819. Revalidation.
Sec. 1820. Non-containerized cargo.
Sec. 1821. Authorization of appropriations.

                  Subtitle C--Miscellaneous Provisions

Sec. 1831. Research, development, test, and evaluation efforts in 
          furtherance of maritime and cargo security.
Sec. 1832. Grants under Operation Safe Commerce.
Sec. 1833. Definitions.

                   TITLE XIX--MISCELLANEOUS PROVISIONS

Sec. 1901. Treatment of charitable trusts for members of the armed 
          forces of the United States and other governmental 
          organizations.

             TITLE XX--OFFICE OF DOMESTIC NUCLEAR DETECTION

Sec. 2001. Domestic Nuclear Detection Office.
Sec. 2002. Functions of Director of the Domestic Nuclear Detection 
          Office, generally.
Sec. 2003. Global nuclear detection architecture.
Sec. 2004. Research and development.
Sec. 2005. System assessments.
Sec. 2006. Technology acquisition, deployment, support, and training.
Sec. 2007. Situational awareness.
Sec. 2008. Forensic analysis.
Sec. 2009. Threat information.
Sec. 2010. Administrative authorities.
Sec. 2011. Report requirement.
Sec. 2012. Advisory Council on Nuclear Detection.
Sec. 2013. Interagency coordination council.
Sec. 2014. Authorization of appropriations.
Sec. 2015. Definitions.

           *       *       *       *       *       *       *


TITLE I--DEPARTMENT OF HOMELAND SECURITY

           *       *       *       *       *       *       *


SEC. 103. OTHER OFFICERS.

  (a) * * *

           *       *       *       *       *       *       *

  (d) Other Officers.--To assist the Secretary in the 
performance of the Secretary's functions, there are the 
following officers, appointed by the President:
          (1) * * *

           *       *       *       *       *       *       *

          (5) A Director of the Domestic Nuclear Detection 
        Office.

           *       *       *       *       *       *       *


TITLE III--SCIENCE AND TECHNOLOGY IN SUPPORT OF HOMELAND SECURITY

           *       *       *       *       *       *       *


SEC. 302. RESPONSIBILITIES AND AUTHORITIES OF THE UNDER SECRETARY FOR 
                    SCIENCE AND TECHNOLOGY.

  The Secretary, acting through the Under Secretary for Science 
and Technology, shall have the responsibility for--
          (1) * * *
          (2) developing, in consultation with other 
        appropriate executive agencies, a national policy and 
        strategic plan for, identifying priorities, goals, 
        objectives and policies for, and coordinating the 
        Federal Government's civilian efforts to identify and 
        develop countermeasures to chemical, biological, 
        [radiological, nuclear,] and other emerging terrorist 
        threats, including the development of comprehensive, 
        research-based definable goals for such efforts and 
        development of annual measurable objectives and 
        specific targets to accomplish and evaluate the goals 
        for such efforts;

           *       *       *       *       *       *       *

          (5) establishing priorities for, directing, funding, 
        and conducting national research, development, test and 
        evaluation, and procurement of technology and systems 
        for--
                  (A) preventing the importation of chemical, 
                biological, [radiological, nuclear,] and 
                related weapons and material; and

           *       *       *       *       *       *       *


SEC. 305. FEDERALLY FUNDED RESEARCH AND DEVELOPMENT CENTERS.

  The Secretary, acting through the Under Secretary for Science 
and Technology and the Director of the Domestic Nuclear 
Detection Office, shall have the authority to establish or 
contract with 1 or more federally funded research and 
development centers to provide independent analysis of homeland 
security issues, or to carry out other responsibilities under 
this Act, including coordinating and integrating both the 
extramural and intramural programs described in section 308.

           *       *       *       *       *       *       *


SEC. 308. CONDUCT OF RESEARCH, DEVELOPMENT, DEMONSTRATION, TESTING AND 
                    EVALUATION.

  (a) In General.--The Secretary, acting through the Under 
Secretary for Science and Technology and the Director of the 
Domestic Nuclear Detection Office, shall carry out the 
responsibilities under section 302(4) through both extramural 
and intramural programs.
  (b) Extramural Programs.--
          (1) In general.--The Secretary, acting through the 
        Under Secretary for Science and Technology and the 
        Director of the Domestic Nuclear Detection Office, 
        shall operate extramural research, development, 
        demonstration, testing, and evaluation programs so as 
        to--
                  (A) * * *

           *       *       *       *       *       *       *


TITLE V--EMERGENCY PREPAREDNESS AND RESPONSE

           *       *       *       *       *       *       *


SEC. [510] 511. URBAN AND OTHER HIGH RISK AREA COMMUNICATIONS 
                    CAPABILITIES.

  (a) * * *

           *       *       *       *       *       *       *


SEC. 512. PORT SECURITY GRANT PROGRAM.

  (a) Grants Authorized.--The Secretary shall establish a grant 
program to allocate Federal financial assistance to United 
States seaports on the basis of risk and need.
  (b) Prioritization Process.--In awarding grants under this 
section, the Secretary shall conduct an assessment of United 
States seaports to develop a prioritization for awarding grants 
authorized under subsection (a) based upon--
          (1) the most current risk assessment available from 
        the Department;
          (2) the national economic and strategic defense 
        considerations of individual ports; and
          (3) any other factors that the Secretary determines 
        to be appropriate.
  (c) Application.--
          (1) In general.--Any entity or facility subject to an 
        Area Maritime Transportation Security Plan required 
        under subsection (b) or (c) of section 70103 of title 
        46, United States Code, may submit an application for a 
        grant under this section, at such time, in such form, 
        and containing such information and assurances as the 
        Secretary may require.
          (2) Minimum standards for payment or reimbursement.--
        Each application submitted under paragraph (1) shall 
        include--
                  (A) a comprehensive description of--
                          (i) the purpose of the project for 
                        which the applicant seeks a grant under 
                        this section and why the applicant 
                        needs the grant;
                          (ii) the applicability of the project 
                        to the Area Maritime Transportation 
                        Security Plan and other homeland 
                        security plans;
                          (iii) the methodology for 
                        coordinating the project into the 
                        security of the greater port area, as 
                        identified in the Area Maritime 
                        Transportation Security Plan;
                          (iv) any existing cooperation or 
                        mutual aid agreements with other port 
                        facilities, vessels, organizations, or 
                        State, territorial, and local 
                        governments as such agreements relate 
                        to port security; and
                          (v) a capital budget showing how the 
                        applicant intends to allocate and 
                        expend the grant funds;
                  (B) a determination by the Captain of the 
                Port that the project--
                          (i) addresses or corrects port 
                        security vulnerabilities; and
                          (ii) helps to ensure compliance with 
                        the Area Maritime Transportation 
                        Security Plan.
          (3) Procedural safeguards.--The Secretary, in 
        consultation with the Office of the Inspector General 
        and the Office of Grants and Training, shall issue 
        guidelines to establish appropriate accounting, 
        reporting, and review procedures to ensure that--
                  (A) grant funds are used for the purposes for 
                which they were made available;
                  (B) grantees have properly accounted for all 
                expenditures of grant funds; and
                  (C) grant funds not used for such purposes 
                and amounts not obligated or expended are 
                returned.
  (d) Use of Funds.--Grants awarded under this section may be 
used--
          (1) to help implement Area Maritime Transportation 
        Security Plans required under section 70103(b) of title 
        46, United States Code;
          (2) to remedy port security vulnerabilities 
        identified through vulnerability assessments approved 
        by the Secretary;
          (3) for non-Federal projects contributing to the 
        overall security of a seaport or a system of United 
        States seaports, as determined by the Secretary;
          (4) for the salaries, benefits, overtime 
        compensation, and other costs of additional security 
        personnel for State and local agencies for activities 
        required by the Area Maritime Transportation Security 
        Plan for a seaport area if the Secretary--
                  (A) increases the threat level under the 
                Homeland Security Advisory System to Code 
                Orange or Code Red; or
                  (B) raises the Maritime Security level to 
                MARSEC Level 2 or 3;
          (5) for the cost of acquisition, operation, and 
        maintenance of equipment that contributes to the 
        overall security of the port area, as identified in the 
        Area Maritime Transportation Security Plan, if the need 
        is based upon vulnerability assessments approved by the 
        Secretary or identified in the Area Maritime Security 
        Plan;
          (6) to conduct vulnerability assessments approved by 
        the Secretary;
          (7) to purchase or upgrade equipment, including 
        computer software, to enhance terrorism preparedness;
          (8) to conduct exercises or training for prevention 
        and detection of, preparedness for, response to, or 
        recovery from terrorist attacks;
          (9) to establish or enhance mechanisms for sharing 
        terrorism threat information;
          (10) for the cost of equipment (including software) 
        required to receive, transmit, handle, and store 
        classified information;
          (11) for the protection of critical infrastructure 
        against potential attack by the addition of barriers, 
        fences, gates, and other such devices, except that the 
        cost of such measures may not exceed the greater of--
                  (A) $1,000,000 per project; or
                  (B) such greater amount as may be approved by 
                the Secretary, which may not exceed 10 percent 
                of the total amount of the grant; and
          (12) to conduct port-wide exercises to strengthen 
        emergency preparedness of Federal, State, territorial, 
        and local officials responsible for port security, 
        including law enforcement personnel and firefighters 
        and other first responders, in support of the Area 
        Maritime Security Plan.
  (e) Prohibited Uses.--Grants awarded under this section may 
not be used to--
          (1) supplant State or local funds for activities of 
        the type described in subsection (d);
          (2) construct buildings or other physical facilities;
          (3) acquire land; or
          (4) make any State or local government cost-sharing 
        contribution.
  (f) Matching Requirement.--
          (1) In general.--Except as provided in subparagraph 
        (A) or (B) of paragraph (2), Federal funds for any 
        eligible project under this section shall not exceed 75 
        percent of the total cost of such project.
          (2) Exceptions.--
                  (A) Small projects.--The requirement of 
                paragraph (1) shall not apply with respect to a 
                project with a total cost of not more than 
                $25,000.
                  (B) Higher level of federal support 
                required.--The requirement of paragraph (1) 
                shall not apply with respect to a project if 
                the Secretary determines that the project 
                merits support and cannot be undertaken without 
                a higher rate of Federal support than the rate 
                described in paragraph (1).
          (3) In-kind contributions.--Each recipient of a grant 
        under this section may meet the requirement of 
        paragraph (1) by making in-kind contributions of goods 
        or services that are directly linked with the purpose 
        for which the grant is made, as determined by the 
        Secretary, including any necessary personnel expenses, 
        contractor services, administrative costs, equipment, 
        fuel, or maintenance, and rental space.
  (g) Multiple Phase Projects.--
          (1) In general.--The Secretary may award grants under 
        this section for projects that span multiple years.
          (2) Funding limitation.--Not more than 20 percent of 
        the total grant funds awarded under this section in any 
        fiscal year may be awarded for projects that span 
        multiple years.
  (h) Consistency With Plans.--The Secretary shall ensure that 
each grant awarded under this section--
          (1) is used to supplement and support, in a 
        consistent and coordinated manner, the applicable Area 
        Maritime Transportation Security Plan; and
          (2) is coordinated with any applicable State or Urban 
        Area Homeland Security Plan.
  (i) Coordination and Cooperation.--The Secretary--
          (1) shall ensure that all projects that receive grant 
        funding under this section within any area defined in 
        an Area Maritime Transportation Security Plan are 
        coordinated with other projects in such area; and
          (2) may require cooperative agreements among users of 
        the seaport and seaport facilities with respect to 
        projects funded under this section.
  (j) Review and Audits.--The Secretary shall require all 
grantees under this section to maintain such records as the 
Secretary may require and make such records available for 
review and audit by the Secretary, the Comptroller General of 
the United States, or the Inspector General of the Department.
  (k) Authorization of Appropriations.--
          (1) In general.--There are authorized to be 
        appropriated $400,000,000 for each of fiscal years 2007 
        through 2012 to carry out this section.
          (2) Source of funds.--Amounts authorized to be 
        appropriated under paragraph (1) shall originate from 
        duties collected by U.S. Customs and Border Protection.

         TITLE VI--POLICY, PLANNING, AND INTERNATIONAL AFFAIRS

SEC. 601. DIRECTORATE FOR POLICY, PLANNING, AND INTERNATIONAL AFFAIRS.

  (a) Establishment.--There shall be in the Department a 
Directorate for Policy, Planning, and International Affairs.
  (b) Under Secretary for Policy.--
          (1) In general.--The head of the Directorate shall be 
        the Under Secretary for Policy, who shall be appointed 
        by the President.
          (2) Qualifications.--No individual shall be appointed 
        Under Secretary for Policy under paragraph (1) unless 
        the individual has, by education and experience, 
        demonstrated knowledge, ability, and skill in the 
        fields of policy and strategic planning.
  (c) Responsibilities of Under Secretary.--
          (1) Policy responsibilities.--Subject to the 
        direction and control of the Secretary, the policy 
        responsibilities of the Under Secretary for Policy 
        shall be as follows:
                  (A) To serve as the principal policy advisor 
                to the Secretary.
                  (B) To provide overall direction and 
                supervision of policy development for the 
                programs, offices, and activities of the 
                Department.
                  (C) To establish and implement a formal 
                policymaking process for the Department.
                  (D) To analyze, evaluate, and review the 
                completed, ongoing, and proposed programs of 
                the Department to ensure they are compatible 
                with the statutory and regulatory 
                responsibilities of the Department and with the 
                Secretary's priorities, strategic plans, and 
                policies.
                  (E) To ensure that the budget of the 
                Department (including the development of future 
                year budgets and interaction with the Office of 
                Management and Budget and with Congress) is 
                compatible with the statutory and regulatory 
                responsibilities of the Department and with the 
                Secretary's priorities, strategic plans, and 
                policies.
                  (F) To represent the Department in any 
                development of policy that requires the 
                Department to consult with another Federal 
                agency, the Office of the President, a foreign 
                government, or any other governmental or 
                private sector entity.
                  (G) To supervise and oversee policy 
                development undertaken by the component 
                agencies and offices of the Department.
          (2) Strategic planning responsibilities.--Subject to 
        the direction and control of the Secretary, the 
        strategic planning responsibilities of the Under 
        Secretary for Policy shall be as follows:
                  (A) To conduct long-range, strategic planning 
                for the Department.
                  (B) To prepare national and Department 
                strategies, as appropriate.
                  (C) To conduct net assessments of issues 
                facing the Department.
          (3) International responsibilities.--Subject to the 
        direction and control of the Secretary, the 
        international responsibilities of the Under Secretary 
        for Policy shall be as follows:
                  (A) To promote the exchange of information 
                and the sharing of best practices and 
                technology relating to homeland security with 
                nations friendly to the United States, 
                including--
                          (i) the exchange of information on 
                        research and development on homeland 
                        security technologies;
                          (ii) joint training exercises of 
                        first responders in coordination with 
                        the Assistant Secretary for Grants and 
                        Training; and
                          (iii) exchanging expertise and 
                        information on terrorism prevention, 
                        response, and crisis management.
                  (B) To identify any homeland security-related 
                area in which the United States and other 
                nations and appropriate international 
                organizations could collaborate to improve 
                capabilities and to encourage the exchange of 
                information or sharing of best practices and 
                technology relating to that area.
                  (C) To plan and participate in international 
                conferences, exchange programs (including the 
                exchange of scientists, engineers, and other 
                experts), and other training activities with 
                friendly nations
                  (D) To manage international activities within 
                the Department in coordination with other 
                Federal officials with responsibility for 
                counterterrorism matters.
                  (E) To oversee the activities of Department 
                personnel operating in other countries or 
                traveling to other countries,
                  (F) To represent the Department in 
                international negotiations, working groups, and 
                standards-setting bodies.
          (4) Private sector.--
                  (A) To create and foster strategic 
                communications with the private sector to 
                enhance the primary mission of the Department 
                to protect the United States.
                  (B) To advise the Secretary on the impact on 
                the private sector of the policies, 
                regulations, processes, and actions of the 
                Department.
                  (C) To create and manage private sector 
                advisory councils composed of representatives 
                of industries and associations designated by 
                the Secretary--
                          (i) to advise the Secretary on 
                        private sector products, applications, 
                        and solutions as they relate to 
                        homeland security challenges; and
                          (ii) to advise the Secretary on 
                        homeland security policies, 
                        regulations, processes, and actions 
                        that affect the participating 
                        industries and associations.
                  (D) To promote existing public-private 
                partnerships and develop new public-private 
                partnerships to provide for collaboration and 
                mutual support to address homeland security 
                challenges.
                  (E) To identify private sector resources and 
                capabilities that could be effective in 
                supplementing functions of the Department and 
                State and local governments to prevent or 
                respond to acts of terrorism.
                  (F) To coordinate among the Department's 
                operating entities and with the Assistant 
                Secretary for Trade Development of the 
                Department of Commerce on issues related to the 
                travel and tourism industries.

SEC. 602. OFFICE OF INTERNATIONAL AFFAIRS.

  (a) Establishment.--There is established within the 
Directorate of Policy, Planning, and International Affairs an 
Office of International Affairs. The Office shall be headed by 
an Assistant Secretary, who shall be appointed by the 
Secretary.
  (b) Duties of the Assistant Secretary.--The Assistant 
Secretary shall have the following duties:
          (1) To promote information and education exchange 
        with nations friendly to the United States in order to 
        promote sharing of best practices and technologies 
        relating to homeland security. Such exchange shall 
        include the following:
                  (A) Exchange of information on research and 
                development on homeland security technologies.
                  (B) Joint training exercises of first 
                responders.
                  (C) Exchange of expertise on terrorism 
                prevention, response, and crisis management.
          (2) To identify areas for homeland security 
        information and training exchange where the United 
        States has a demonstrated weakness and another friendly 
        nation or nations have a demonstrated expertise.
          (3) To plan and undertake international conferences, 
        exchange programs, and training activities.
          (4) To manage international activities within the 
        Department in coordination with other Federal officials 
        with responsibility for counter-terrorism matters.

SEC. 603. OTHER OFFICES AND OFFICIALS.

  (a) In General.--The Under Secretary for Policy shall 
establish the following offices in the Directorate for Policy, 
Planning, and International Affairs:
          (1) The Office of Policy, which shall be administered 
        by an Assistant Secretary for Policy.
          (2) The Office of Strategic Plans, which shall be 
        administered by an Assistant Secretary for Strategic 
        Plans and which shall include--
                  (A) a Secure Border Initiative Program 
                Office; and
                  (B) a Screening Coordination and Operations 
                Office.
          (3) The Office of the Private Sector, which shall be 
        administered by an Assistant Secretary for the Private 
        Sector.
          (4) The Victim Assistance Officer.
          (5) The Tribal Security Officer.
          (6) Such other offices as considered necessary by the 
        Under Secretary for Policy.
  (b) Director of Cargo Security Policy.--
          (1) In general.--There shall be in the Directorate 
        for Policy, Planning, and International Affairs a 
        Director of Cargo Security Policy (hereinafter in this 
        section referred to as the ``Director''), who shall be 
        subject to the direction and control of the Under 
        Secretary for Policy.
          (2) Responsibilities.--The Director shall--
                  (A) advise the Assistant Secretary for Policy 
                regarding all aspects of Department programs 
                relating to cargo security;
                  (B) develop Department-wide policies 
                regarding cargo security; and
                  (C) coordinate the cargo security policies 
                and programs of the Department with other 
                Federal departments and agencies, including by 
                working with officials of the Department of 
                Energy and the Department of State, as 
                appropriate, in negotiating international 
                agreements relating to cargo security.

           *       *       *       *       *       *       *


TITLE VIII--COORDINATION WITH NON-FEDERAL ENTITIES; INSPECTOR GENERAL; 
     UNITED STATES SECRET SERVICE; COAST GUARD; GENERAL PROVISIONS

Subtitle A--Coordination with Non-Federal Entities

           *       *       *       *       *       *       *


SEC. 802. PORT SECURITY TRAINING PROGRAM.

  (a) In General.--The Secretary, acting through the Assistant 
Secretary for Grants and Training and in coordination with 
components of the Department with maritime security expertise, 
including the Coast Guard, the Transportation Security 
Administration, and U.S. Customs and Border Protection, shall 
establish a Port Security Training Program (hereinafter in this 
section referred to as the ``Program'') for the purpose of 
enhancing the capabilities of each of the Nation's commercial 
seaports to prevent, prepare for, respond to, mitigate against, 
and recover from threatened or actual acts of terrorism, 
natural disasters, and other emergencies.
  (b) Requirements.--The Program shall provide validated 
training that--
          (1) reaches multiple disciplines, including Federal, 
        State, and local government officials, commercial 
        seaport personnel and management, and governmental and 
        nongovernmental emergency response providers;
          (2) provides training at the awareness, performance, 
        and management and planning levels;
          (3) utilizes multiple training mediums and methods, 
        including--
                  (A) direct delivery;
                  (B) train-the-trainer;
                  (C) computer-based training;
                  (D) web-based training; and
                  (E) video teleconferencing;
          (4) addresses port security topics, including--
                  (A) seaport security plans and procedures, 
                including how security plans and procedures are 
                adjusted when threat levels increase;
                  (B) seaport security force operations and 
                management;
                  (C) physical security and access control at 
                seaports;
                  (D) methods of security for preventing and 
                countering cargo theft;
                  (E) container security;
                  (F) recognition and detection of weapons, 
                dangerous substances, and devices;
                  (G) operation and maintenance of security 
                equipment and systems;
                  (H) security threats and patterns;
                  (I) security incident procedures, including 
                procedures for communicating with governmental 
                and nongovernmental emergency response 
                providers; and
                  (J) evacuation procedures;
          (5) is consistent with, and supports implementation 
        of, the National Incident Management System, the 
        National Response Plan, the National Infrastructure 
        Protection Plan, the National Preparedness Guidance, 
        the National Preparedness Goal, and other such national 
        initiatives;
          (6) is evaluated against clear and consistent 
        performance measures; and
          (7) addresses security requirements under facility 
        security plans.
  (c) National Voluntary Consensus Standards.--The Secretary 
shall--
          (1) support the development, promulgation, and 
        regular updating as necessary of national voluntary 
        consensus standards for port security training; and
          (2) ensure that the training provided under this 
        section is consistent with such standards.
  (d) Training Partners.--In developing and delivering training 
under the Program, the Secretary shall--
          (1) work with government training facilities, 
        academic institutions, private organizations, employee 
        organizations, and other entities that provide 
        specialized, state-of-the-art training for governmental 
        and nongovernmental emergency responder providers or 
        commercial seaport personnel and management; and
          (2) utilize, as appropriate, training courses 
        provided by community colleges, public safety 
        academies, State and private universities, and other 
        facilities.
  (e) Consultation.--The Secretary shall ensure that, in 
carrying out the Program, the Office of Grants and Training 
shall consult with--
          (1) a geographic and substantive cross section of 
        governmental and nongovernmental emergency response 
        providers; and
          (2) commercial seaport personnel and management.
  (f) Commercial Seaport Personnel Defined.--For purposes of 
this section, the term ``commercial seaport personnel'' means 
any person engaged in an activity relating to the loading or 
unloading of cargo, the movement or tracking of cargo, the 
maintenance and repair of intermodal equipment, the operation 
of cargo-related equipment (whether or not integral to the 
vessel), and the handling of mooring lines on the dock when a 
vessel is made fast or let go, in the United States or the 
coastal waters thereof.

SEC. 803. PORT SECURITY EXERCISE PROGRAM.

  (a) In General.--The Secretary, acting through the Assistant 
Secretary for Grants and Training, shall establish a Port 
Security Exercise Program (hereinafter in this section referred 
to as the ``Program'') for the purpose of testing and 
evaluating the capabilities of Federal, State, local, and 
foreign governments, commercial seaport personnel and 
management, governmental and nongovernmental emergency response 
providers, the private sector, or any other organization or 
entity, as the Secretary determines to be appropriate, to 
prevent, prepare for, mitigate against, respond to, and recover 
from acts of terrorism, natural disasters, and other 
emergencies at commercial seaports.
  (b) Requirements.--The Secretary, acting through the 
Assistant Secretary for Grants and Training and in coordination 
with components of the Department with maritime security 
expertise, including the Coast Guard, the Transportation 
Security Administration, and U.S. Customs and Border 
Protection, shall ensure that the Program--
          (1) consolidates all existing port security exercise 
        programs administered by the Department;
          (2) conducts, on a periodic basis, port security 
        exercises at commercial seaports that are--
                  (A) scaled and tailored to the needs of each 
                port;
                  (B) live in the case of the most at-risk 
                ports;
                  (C) as realistic as practicable and based on 
                current risk assessments, including credible 
                threats, vulnerabilities, and consequences;
                  (D) consistent with the National Incident 
                Management System, the National Response Plan, 
                the National Infrastructure Protection Plan, 
                the National Preparedness Guidance, the 
                National Preparedness Goal, and other such 
                national initiatives;
                  (E) evaluated against clear and consistent 
                performance measures;
                  (F) assessed to learn best practices, which 
                shall be shared with appropriate Federal, 
                State, and local officials, seaport personnel 
                and management; governmental and 
                nongovernmental emergency response providers, 
                and the private sector; and
                  (G) followed by remedial action in response 
                to lessons learned; and
          (3) assists State and local governments and 
        commercial seaports in designing, implementing, and 
        evaluating exercises that--
                  (A) conform to the requirements of paragraph 
                (2); and
                  (B) are consistent with any applicable Area 
                Maritime Transportation Security Plan and State 
                or Urban Area Homeland Security Plan.
  (c) Remedial Action Management System.--The Secretary, acting 
through the Assistant Secretary for Grants and Training, shall 
establish a Remedial Action Management System to--
          (1) identify and analyze each port security exercise 
        for lessons learned and best practices;
          (2) disseminate lessons learned and best practices to 
        participants in the Program;
          (3) monitor the implementation of lessons learned and 
        best practices by participants in the Program; and
          (4) conduct remedial action tracking and long-term 
        trend analysis.
  (d) Grant Program Factor.--In evaluating and prioritizing 
applications for Federal financial assistance under section 
512, the Secretary shall give additional consideration to those 
applicants that have conducted port security exercises under 
this section.
  (e) Consultation.--The Secretary shall ensure that, in 
carrying out the Program, the Office of Grants and Training 
shall consult with--
          (1) a geographic and substantive cross section of 
        governmental and nongovernmental emergency response 
        providers; and
          (2) commercial seaport personnel and management.
  (f) Commercial Seaport Personnel Defined.--For purposes of 
this section, the term ``commercial seaport personnel'' means 
any person engaged in an activity relating to the loading or 
unloading of cargo, the movement or tracking of cargo, the 
maintenance and repair of intermodal equipment, the operation 
of cargo-related equipment (whether or not integral to the 
vessel), and the handling of mooring lines on the dock when a 
vessel is made fast or let go, in the United States or the 
coastal waters thereof.

Subtitle H--Miscellaneous Provisions

           *       *       *       *       *       *       *


[SEC. 879. OFFICE OF INTERNATIONAL AFFAIRS.

  [(a) Establishment.--There is established within the Office 
of the Secretary an Office of International Affairs. The Office 
shall be headed by a Director, who shall be a senior official 
appointed by the Secretary.
  [(b) Duties of the Director.--The Director shall have the 
following duties:
          [(1) To promote information and education exchange 
        with nations friendly to the United States in order to 
        promote sharing of best practices and technologies 
        relating to homeland security. Such exchange shall 
        include the following:
                  [(A) Exchange of information on research and 
                development on homeland security technologies.
                  [(B) Joint training exercises of first 
                responders.
                  [(C) Exchange of expertise on terrorism 
                prevention, response, and crisis management.
          [(2) To identify areas for homeland security 
        information and training exchange where the United 
        States has a demonstrated weakness and another friendly 
        nation or nations have a demonstrated expertise.
          [(3) To plan and undertake international conferences, 
        exchange programs, and training activities.
          [(4) To manage international activities within the 
        Department in coordination with other Federal officials 
        with responsibility for counter-terrorism matters.]

           *       *       *       *       *       *       *


        TITLE XVIII--SECURITY OF THE INTERNATIONAL SUPPLY CHAIN

                     Subtitle A--General Provisions

SEC. 1801. STRATEGIC PLAN TO ENHANCE THE SECURITY OF THE INTERNATIONAL 
                    SUPPLY CHAIN.

  (a) Strategic Plan.--The Secretary, in consultation with 
appropriate Federal, State, local, and tribal government 
agencies and private sector stakeholders responsible for 
security matters that affect or relate to the movement of 
containers through the international supply chain, shall 
develop and implement, and update as appropriate, a strategic 
plan to enhance the security of the international supply chain.
  (b) Requirements.--The strategic plan required under 
subsection (a) shall--
          (1) describe the roles, responsibilities, and 
        authorities of Federal, State, local, and tribal 
        government agencies and private sector stakeholders 
        that relate to the security of the movement of 
        containers through the international supply chain;
          (2) identify and address gaps and unnecessary 
        overlaps in the roles, responsibilities, or authorities 
        described in paragraph (1);
          (3) identify and make recommendations regarding 
        legislative, regulatory, and organizational changes 
        necessary to improve coordination among the entities or 
        to enhance the security of the international supply 
        chain;
          (4) provide measurable goals, including objectives, 
        mechanisms, and a schedule, for furthering the security 
        of commercial operations from point of origin to point 
        of destination;
          (5) build on available resources and consider costs 
        and benefits;
          (6) provide incentives for additional voluntary 
        measures to enhance cargo security, as determined by 
        the Secretary;
          (7) consider the impact of supply chain security 
        requirements on small and medium size companies;
          (8) include a process for sharing intelligence and 
        information with private sector stakeholders to assist 
        in their security efforts;
          (9) identify a framework for prudent and measured 
        response in the event of a transportation security 
        incident involving the international supply chain;
          (10) provide a plan for the expeditious resumption of 
        the flow of legitimate trade in accordance with section 
        70103(a)(2)(J)(ii) of title 46, United States Code;
          (11) consider the linkages between supply chain 
        security and security programs within other systems of 
        movement, including travel security and terrorism 
        finance programs; and
          (12) expand upon and relate to existing strategies 
        and plans, including the National Strategy for Maritime 
        Security and the eight supporting plans of the 
        Strategy, as required by Homeland Security Presidential 
        Directive-13 (September 2005).
  (c) Utilization of Advisory Committees.--As part of the 
consultations described in subsection (a), the Secretary shall, 
to the extent practicable, utilize the Homeland Security 
Advisory Committee, the National Maritime Security Advisory 
Committee, and the Commercial Operations Advisory Committee to 
review, as necessary, the draft strategic plan and any 
subsequent updates to the strategic plan.
  (d) International Standards and Practices.--In furtherance of 
the strategic plan required under subsection (a), the Secretary 
is encouraged to consider proposed or established standards and 
practices of foreign governments and international 
organizations, including the International Maritime 
Organization, the World Customs Organization, the International 
Labor Organization, and the International Organization for 
Standardization, as appropriate, to establish standards and 
best practices for the security of containers moving through 
the international supply chain.
  (e) Report.--
          (1) Initial report.--The Secretary shall submit to 
        the appropriate congressional committees a report that 
        contains the strategic plan required by subsection (a).
          (2) Final report.--Not later than three years after 
        the date on which the strategic plan is submitted under 
        paragraph (1), the Secretary shall submit to the 
        appropriate congressional committees a report that 
        contains an update of the strategic plan.
  (f) Definition.--In this section, the term ``transportation 
security incident'' has the meaning given the term in section 
70101(6) of title 46, United States Code.

SEC. 1802. TRANSMISSION OF ADDITIONAL DATA ELEMENTS FOR IMPROVED HIGH 
                    RISK TARGETING.

  (a) Requirement.--The Secretary shall require transmission to 
the Department, through an electronic data interchange system, 
of additional data elements for improved high risk targeting, 
including appropriate security elements of entry data, as 
determined by the Secretary, to be provided as advanced 
information with respect to cargo destined for importation into 
the United States prior to loading of such cargo on vessels at 
foreign seaports.
  (b) Regulations.--The Secretary shall promulgate regulations 
to carry out this section. In promulgating such regulations, 
the Secretary shall adhere to the parameters applicable to the 
development of regulations under section 343(a) of the Trade 
Act of 2002 (19 U.S.C. 2071 note), including provisions 
relating to consultation, technology, analysis, use of 
information, confidentiality, and timing requirements.

SEC. 1803. PLAN TO IMPROVE THE AUTOMATED TARGETING SYSTEM.

  (a) Plan.--The Secretary shall develop and implement a plan 
to improve the Automated Targeting System for the 
identification of high-risk containers moving through the 
international supply chain.
  (b) Contents.--
          (1) Treatment of recommendations.--The Secretary 
        shall include in the plan required under subsection (a) 
        a schedule to address the recommendations of the 
        Comptroller General of the United States, the Inspector 
        General of the Department of the Treasury, and the 
        Inspector General of the Department of Homeland 
        Security with respect to the operation of the Automated 
        Targeting System.
          (2) Information submissions.--In developing the plan 
        required under subsection (a), the Secretary shall 
        consider the cost, benefit, and feasibility of--
                  (A) requiring additional nonmanifest 
                documentation for each container;
                  (B) adjusting the time period allowed by law 
                for revisions to a container cargo manifest;
                  (C) adjusting the time period allowed by law 
                for submission of entry data for vessel or 
                cargo; and
                  (D) such other actions the Secretary 
                considers beneficial for improving the 
                information relied upon for the Automated 
                Targeting System and any other targeting 
                systems in furthering the security and 
                integrity of the international supply chain.
          (3) Outside review.--The Secretary shall conduct, 
        through an independent panel, a review of the Automated 
        Targeting System. The results of this review shall be 
        included in the plan required under subsection (a).
          (4) Smart system.--The Secretary shall consider 
        future iterations of the Automated Targeting System, 
        which would incorporate smart features, such as more 
        complex algorithms and real-time intelligence, instead 
        of relying solely on rule sets that are periodically 
        updated. The Secretary shall also consider how the 
        Automated Targeting System could be improved through 
        linkages with targeting systems in existence on the 
        date of the enactment of the Security and 
        Accountability For Every Port Act for travel security 
        and terrorism finance programs.
  (c) New or Expanded Information Submissions.--In considering 
any new or expanded information submission requirements, the 
Secretary shall consult with stakeholders and identify the need 
for such information, appropriate confidentiality requirements 
with respect to such information, and appropriate timing of the 
submission of such information, in the plan required under 
subsection (a).
  (d) Secure Transmission of Certain Information.--All 
information required by the Department from supply chain 
partners shall be transmitted in a secure fashion, as 
determined by the Secretary, so as to protect the information 
from unauthorized access.
  (e) Authorization of Appropriations.--There are authorized to 
be appropriated $5,000,000 for each of the fiscal years 2007 
through 2012 to carry out this section.

SEC. 1804. CONTAINER STANDARDS AND VERIFICATION PROCEDURES.

  (a) Establishment.--
          (1) In general.--The Secretary shall establish 
        minimum standards and verification procedures for 
        securing containers in transit to the United States 
        relating to the sealing of containers.
          (2) Deadline for enforcement.--Not later than two 
        years after the date on which the standards and 
        procedures are established pursuant to paragraph (1), 
        all containers bound for ports of entry in the United 
        States shall meet such standards and procedures.
  (b) Review and Enhancement.--The Secretary shall regularly--
          (1) review the standards and procedures established 
        pursuant to subsection (a); and
          (2) enhance the security standards and procedures, as 
        appropriate, based on tests of technologies as they 
        become commercially available to detect container 
        intrusion and the highest consequence threats, 
        particularly weapons of mass destruction.
  (c) International Cargo Security Standards.--The Secretary, 
in consultation with the Secretary of State, is encouraged to 
promote and establish international standards for the security 
of containers moving through the international supply chain 
with foreign governments and international organizations, 
including the International Maritime Organization and the World 
Customs Organization.
  (d) International Trade and Other Obligations.--In carrying 
out this section, the Secretary shall consult with appropriate 
Federal departments and agencies and private sector 
stakeholders to ensure that actions under this section do not 
violate international trade obligations or other international 
obligations of the United States.

SEC. 1805. CONTAINER SECURITY INITIATIVE (CSI).

  (a) Authorization.--The Secretary is authorized to establish 
and implement a program (to be known as the ``Container 
Security Initiative'' or ``CSI'') to identify and examine 
maritime containers that pose a risk for terrorism at foreign 
ports before the containers are shipped to the United States.
  (b) Assessment.--Before the Secretary designates any foreign 
port under CSI, the Secretary, in consultation with other 
Federal officials, as appropriate, shall conduct an assessment 
of the port, including--
          (1) the level of risk for the potential compromise of 
        containers by terrorists or terrorist weapons;
          (2) the volume of regular container traffic to United 
        States ports;
          (3) the results of the Coast Guard assessments 
        conducted pursuant to section 70108 of title 46, United 
        States Code;
          (4) the commitment of the host nation to cooperating 
        with the Department in sharing critical data and risk 
        management information and to maintain programs to 
        ensure employee integrity; and
          (5) the potential for validation of security 
        practices by the Department.
  (c) Notification.--The Secretary shall notify the appropriate 
congressional committees prior to notifying the public of the 
designation of a foreign port under CSI.
  (d) Inspections.--
          (1) Requirements and procedures.--The Secretary 
        shall--
                  (A) establish technical capability criteria 
                and standard operating procedures for the use 
                of nonintrusive inspection and nuclear and 
                radiological detection systems in conjunction 
                with CSI;
                  (B) require each port designated under CSI to 
                operate nonintrusive inspection and nuclear and 
                radiological detection systems in accordance 
                with the technical capability criteria and 
                standard operating procedures established under 
                subparagraph (A); and
                  (C) continually monitor the technologies, 
                processes, and techniques used to inspect cargo 
                at ports designated under CSI.
          (2) Consistency of standards and procedures.--The 
        Secretary shall ensure that the technical capability 
        criteria and standard operating procedures established 
        under paragraph (1)(A) are consistent with such 
        standards and procedures of any other department or 
        agency of the Federal government with respect to 
        deployment of nuclear and radiological detection 
        systems outside the United States.
          (3) Foreign assistance.--
                  (A) In general.--The Secretary, in 
                consultation with the Secretary of State, the 
                Secretary of Energy, and the heads of other 
                Federal agencies, shall identify foreign 
                assistance programs that could facilitate the 
                implementation of cargo security antiterrorism 
                measures at ports designated under CSI and 
                foreign ports not designated under CSI that 
                lack effective antiterrorism measures.
                  (B) Acquisition.--The Secretary is authorized 
                to loan or otherwise assist in the deployment 
                of nonintrusive inspection or nuclear and 
                radiological detection systems for cargo 
                containers at each designated CSI port under 
                such terms and conditions as the Secretary 
                determines to be appropriate and to provide 
                training for foreign personnel involved in CSI.
  (e) Prohibition.--
          (1) In general.--The Secretary shall issue a ``do not 
        load'' order to each port designated under CSI to 
        prevent the onload of any cargo that has been 
        identified as higher risk by the Automated Targeting 
        System unless the cargo--
                  (A) is scanned with a non intrusive imagery 
                device and nuclear or radiological detection 
                equipment;
                  (B) is devanned and inspected with nuclear or 
                radiological detection equipment; or
                  (C) is determined to be of lower risk 
                following additional inquiries by appropriate 
                personnel of U.S. Customs and Border 
                Protection.
          (2) Rule of construction.--Nothing in this subsection 
        shall be construed to interfere with the ability of the 
        Secretary to deny entry of any cargo into the United 
        States.
  (f) Report.--The Secretary shall submit to the appropriate 
congressional committees not later than March 1 of each year a 
report on the status of CSI, including--
          (1) a description of the security improvements gained 
        through CSI;
          (2) the rationale for the continuance of each port 
        designated under CSI;
          (3) an assessment of the personnel needs at each port 
        designated under CSI; and
          (4) a description of the potential for remote 
        targeting to decrease the number of personnel who are 
        deployed at foreign ports under CSI.
  (g) Authorization of Appropriations.--There are authorized to 
be appropriated $196,000,000 for each of the fiscal years 2007 
through 2012 to carry out this section.

SEC. 1806. INFORMATION SHARING RELATING TO SUPPLY CHAIN SECURITY 
                    COOPERATION.

  (a)  Purposes.--The purposes of this section are--
          (1) to establish continuing liaison and to provide 
        for supply chain security cooperation between 
        Department and the private sector; and
          (2) to provide for regular and timely interchange of 
        information between the private sector and the 
        Department concerning developments and security risks 
        in the supply chain environment.
  (b) Secure System.--The Secretary shall develop a secure 
electronic data interchange system to collect from and share 
appropriate risk information related to securing the supply 
chain with the private sector entities determined appropriate 
by the Secretary.
  (c) Consultation.--In developing the system under subsection 
(b), the Secretary shall consult with the Commercial Operations 
Advisory Committee and a broad range of public and private 
sector entities likely to utilize the system, including 
importers, exporters, carriers, customs brokers, and freight 
forwarders, among other parties.
  (d) Procedures.--The Secretary shall establish uniform 
procedures for the receipt, care, and storage of supply chain 
security information that is voluntarily submitted to the 
Department through the system developed under subsection (b).
  (e) Limitations.--The voluntary information collected through 
the system developed under subsection (b) shall be used 
exclusively for ensuring security and shall not be used for 
determining entry or for any other commercial enforcement 
purpose. The voluntary information submitted to the Department 
through the system developed under subsection (b) shall not be 
construed to constitute compliance with any requirement to 
submit such information to a Federal agency under any other 
provision of law.
  (f) Participants.--The Secretary shall develop protocols for 
determining appropriate private sector personnel who shall have 
access to the system developed under subsection (b). Such 
personnel shall include designated security officers within 
companies that are determined to be low risk through 
participation in the Customs-Trade Partnership Against 
Terrorism program established pursuant to subtitle B of this 
title.
  (g) Confidentiality.--Notwithstanding any other provision of 
law, information that is voluntarily submitted by the private 
sector to the Department through the system developed under 
subsection (b)--
          (1) shall be exempt from disclosure under section 552 
        of title 5, United States Code (commonly referred to as 
        the Freedom of Information Act);
          (2) shall not, without the written consent of the 
        person or entity submitting such information, be used 
        directly by the Department or a third party, in any 
        civil action arising under Federal or State law if such 
        information is submitted in good faith; and
          (3) shall not, without the written consent of the 
        person or entity submitting such information, be used 
        or disclosed by any officer or employee of the United 
        States for purposes other than the purposes of this 
        section, except--
                  (A) in furtherance of an investigation or 
                other prosecution of a criminal act; or
                  (B) when disclosure of the information would 
                be--
                          (i) to either House of Congress, or 
                        to the extent of matter within its 
                        jurisdiction, any committee or 
                        subcommittee thereof, any joint 
                        committee thereof or subcommittee of 
                        any such joint committee; or
                          (ii) to the Comptroller General, or 
                        any authorized representative of the 
                        Comptroller General, in the course of 
                        the performance of the duties of the 
                        Comptroller General.
  (h)  Independently Obtained Information.--Nothing in this 
section shall be construed to limit or otherwise affect the 
ability of a Federal, State, or local, government entity, under 
applicable law, to obtain supply chain security information, 
including any information lawfully and properly disclosed 
generally or broadly to the public and to use such information 
in any manner permitted by law.
  (i) Penalties.--Whoever, being an officer or employee of the 
United States or of any department or agency thereof, knowingly 
publishes, divulges, discloses, or makes known in any manner or 
to any extent not authorized by law, any supply chain security 
information protected in this section from disclosure, shall be 
fined under title 18, United States Code, imprisoned not more 
than 1 year, or both, and shall be removed from office or 
employment.
  (j) Authority to Issue Warnings.--The Secretary may provide 
advisories, alerts, and warnings to relevant companies, 
targeted sectors, other governmental entities, or the general 
public regarding potential risks to the supply chain as 
appropriate. In issuing a warning, the Secretary shall take 
appropriate actions to protect from disclosure--
          (1) the source of any voluntarily submitted supply 
        chain security information that forms the basis for the 
        warning; and
          (2) information that is proprietary, business 
        sensitive, relates specifically to the submitting 
        person or entity, or is otherwise not appropriately in 
        the public domain.

    Subtitle B--Customs-Trade Partnership Against Terrorism (C-TPAT)

SEC. 1811. ESTABLISHMENT.

  (a) Establishment.--The Secretary is authorized to establish 
a voluntary program (to be known as the ``Customs-Trade 
Partnership Against Terrorism'' or ``C-TPAT'') to strengthen 
and improve the overall security of the international supply 
chain and United States border security.
  (b) Minimum Security Requirements.--The Secretary shall 
review the minimum security requirements of C-TPAT at least 
once every year and update such requirements as necessary.

SEC. 1812. ELIGIBLE ENTITIES.

  Importers, brokers, forwarders, air, sea, land carriers, and 
other entities in the international supply chain and intermodal 
transportation system are eligible to apply to voluntarily 
enter into partnerships with the Department under C-TPAT.

SEC. 1813. MINIMUM REQUIREMENTS.

  An applicant seeking to participate in C-TPAT shall--
          (1) demonstrate a history of moving commerce in the 
        international supply chain;
          (2) conduct an assessment of its supply chains based 
        upon security criteria established by the Secretary, 
        including--
                  (A) business partner requirements;
                  (B) container security;
                  (C) physical security and access controls;
                  (D) personnel security;
                  (E) procedural security;
                  (F) security training and threat awareness; 
                and
                  (G) information technology security;
          (3) implement and maintain security measures and 
        supply chain security practices meeting security 
        criteria; and
          (4) meet all other requirements established by the 
        Secretary.

SEC. 1814. TIER ONE PARTICIPANTS.

  (a) Benefits.--The Secretary may offer limited benefits to C-
TPAT participants whose security measures and supply chain 
security practices have been certified in accordance with the 
guidelines established pursuant to subsection (b).
  (b) Guidelines.--The Secretary shall update guidelines for 
certifying a C-TPAT participant's security measures and supply 
chain security practices under this section.

SEC. 1815. TIER TWO PARTICIPANTS.

  (a) In General.--Not later than one year after a C-TPAT 
participant has been certified under section 1814, the 
Secretary shall validate, directly or through third party 
entities certified in accordance with section 1817, the 
security measures and supply chain security practices of that 
participant. Such validation shall include assessments at 
appropriate foreign locations utilized by the participant as 
part of the supply chain.
  (b) Consequences for Failed Validation.--If a C-TPAT 
participant's security measures and supply chain security 
practices fail to meet the validation requirements under this 
section, the Commissioner of U.S. Customs and Border Protection 
may--
          (1) deny the participant benefits under C-TPAT on a 
        temporary or permanent basis; or
          (2) suspend or expel the participant from C-TPAT.
  (c) Right of Appeal.--A C-TPAT participant described in 
subsection (b) may file an appeal with the Secretary of the 
Commissioner's decision under subsection (b)(1) to deny 
benefits under C-TPAT or under subsection (b)(2) to suspend or 
expel the participant from C-TPAT.
  (d) Benefits.--The Secretary shall extend benefits to each C-
TPAT participant that has been validated under this section, 
which may include--
          (1) reduced examinations; and
          (2) priority processing for searches.

SEC. 1816. TIER THREE PARTICIPANTS.

  (a) In General.--The Secretary shall establish a third tier 
of C-TPAT that offers additional benefits to C-TPAT 
participants that demonstrate a sustained commitment beyond the 
minimum criteria for participation in C-TPAT.
  (b) Additional Criteria.--The Secretary shall designate 
criteria for C-TPAT participants under this section that may 
include criteria to ensure--
          (1) cargo is loaded on a vessel with a vessel 
        security plan approved under section 70103(c) of title 
        46, United States Code, or on a vessel with a valid 
        International Ship Security Certificate as provided for 
        under part 104 of title 33, Code of Federal 
        Regulations;
          (2) container security devices and related policies 
        and practices that exceed the standards and procedures 
        established by the Secretary are utilized; and
          (3) cargo complies with any other requirements 
        determined by the Secretary.
  (c) Benefits.--The Secretary, in consultation with the 
Commercial Operations Advisory Committee and the National 
Maritime Security Advisory Committee, may provide benefits to 
C-TPAT participants under this section, which may include--
          (1) the expedited release of tier three cargo into 
        destination ports within the United States during all 
        threat levels designated by the Secretary;
          (2) reduced or streamlined bonding requirements that 
        are consistent with obligations under other applicable 
        provisions of law;
          (3) preference to vessels;
          (4) further reduced examinations;
          (5) priority processing for examinations;
          (6) further reduced scores in the Automated Targeting 
        System; and
          (7) streamlined billing of any customs duties or 
        fees.
  (d) Definition.--In this section, the term ``container 
security device'' means a mechanical or electronic device 
designed to, at a minimum, detect unauthorized intrusion of 
containers.

SEC. 1817. CONSEQUENCES FOR LACK OF COMPLIANCE.

  (a) In General.--If a C-TPAT participant's security measures 
and supply chain security practices fail to meet any of the 
requirements under this subtitle, the Secretary may deny the 
participant benefits in whole or in part under this subtitle.
  (b) False or Misleading Information.--If a C-TPAT participant 
intentionally provides false or misleading information to the 
Secretary or a third party entity during the validation process 
of the participant under this subtitle, the Commissioner of 
U.S. Customs and Border Protection shall suspend or expel the 
participant from C-TPAT for a period of not less than five 
years.
  (c) Right of Appeal.--A C-TPAT participant described in 
subsection (a) may file an appeal with the Secretary of the 
Secretary's decision under subsection (a) to deny benefits 
under this subtitle. A C-TPAT participant described in 
subsection (b) may file an appeal with the Secretary of the 
Commissioner's decision under subsection (b) to suspend or 
expel the participant from C-TPAT.

SEC. 1818. VALIDATIONS BY THIRD PARTY ENTITIES.

  (a) In General.--In conducting the pilot program under 
subsection (f), and if the Secretary determines to expand the 
use of third party entities to conduct validations of C-TPAT 
participants upon completion of the pilot program under 
subsection (f), the Secretary shall--
          (1) develop, document, and update, as necessary, 
        minimum standard operating procedures and requirements 
        applicable to such entities for the conduct of such 
        validations; and
          (2) meet all requirements under subtitle G of the 
        title VIII of this Act to review and designate such 
        minimum standard operating procedures as a qualified 
        anti-terrorism technology for purposes of such 
        subtitle.
  (b) Certification of Third Party Entities.--
          (1) Issuance of certificate of conformance.--In 
        accordance with section 863(d)(3) of this Act, the 
        Secretary shall issue a certificate of conformance to a 
        third party entity to conduct validations under this 
        subtitle if the entity--
                  (A) demonstrates to the satisfaction of the 
                Secretary the ability to perform validations in 
                accordance with standard operating procedures 
                and requirements (or updates thereto) 
                designated as a qualified anti-terrorism 
                technology by the Secretary under subsection 
                (a); and
                  (B) agrees--
                          (I) to perform validations in 
                        accordance with such standard operating 
                        procedures and requirements (or updates 
                        thereto); and
                          (ii) to maintain liability insurance 
                        coverage at policy limits and in 
                        accordance with conditions to be 
                        established by the Secretary pursuant 
                        to section 864 of this Act; and
                  (C) signs an agreement to protect all 
                proprietary information of C-TPAT participants 
                with respect to which the entity will conduct 
                validations.
          (2) Litigation and risk management protections.--A 
        third party entity that maintains liability insurance 
        coverage at policy limits and in accordance with 
        conditions to be established by the Secretary pursuant 
        to section 864 of this Act and receives a certificate 
        of conformance under paragraph (1) shall receive all 
        applicable litigation and risk management protections 
        under sections 863 and 864 of this Act.
          (3) Reciprocal waiver of claims.--A reciprocal waiver 
        of claims shall be deemed to have been entered into 
        between a third party entity that receives a 
        certificate of conformance under paragraph (1) and its 
        contractors, subcontractors, suppliers, vendors, 
        customers, and contractors and subcontractors of 
        customers involved in the use or operation of the 
        validation services of the third party entity.
  (c) Information for Establishing Limits of Liability 
Insurance.--A third party entity seeking a certificate of 
conformance under subsection (b)(1) shall provide to the 
Secretary necessary information for establishing the limits of 
liability insurance required to be maintained by the entity 
under section 864(a) of this Act.
  (d) Additional Requirements.--The Secretary shall ensure 
that--
          (1) any third party entity under this section--
                  (A) has no beneficial interest in or any 
                direct or indirect control over the C-TPAT 
                participant that is contracting for the 
                validation services; and
                  (B) has no other conflict of interest with 
                respect to the C-TPAT participant; and
          (2) the C-TPAT participant has entered into a 
        contract with the third party entity under which the C-
        TPAT participant agrees to pay all costs associated 
        with the validation.
  (e) Monitoring.--
          (1) In general.--The Secretary shall regularly 
        monitor and inspect the operations of a third party 
        entity conducting validations under this subtitle to 
        ensure that the entity is meeting the minimum standard 
        operating procedures and requirements for the 
        validation of C-TPAT participants established under 
        subsection (a) and all other applicable requirements 
        for validation services under this subtitle.
          (2) Revocation.--If the Secretary finds that a third 
        party entity is not meeting the minimum standard 
        operating procedures and requirements, the Secretary 
        shall--
                  (A) revoke the entity's certificate of 
                conformance issued under subsection (b)(1); and
                  (B) review any validations conducted by the 
                entity.
  (f) Pilot Program.--
          (1) In general.--The Secretary shall carry out a 
        pilot program to test the feasibility, costs, and 
        benefits of utilizing third party entities to conduct 
        validations of C-TPAT participants. In conducting the 
        pilot program, the Secretary shall comply with all 
        applicable requirements of this section with respect to 
        eligibility of third party entities to conduct 
        validations of C-TPAT participants.
          (2) Report.--Not later than 30 days after the 
        completion of the pilot program conducted pursuant to 
        paragraph (1), the Secretary shall submit to the 
        appropriate congressional committees a report that 
        contains--
                  (A) the results of the pilot program; and
                  (B) the determination of the Secretary 
                whether or not to expand the use of third party 
                entities to conduct validations of C-TPAT 
                participants.

SEC. 1819. REVALIDATION.

  The Secretary shall establish a process for revalidating C-
TPAT participants under this subtitle. Such revalidation shall 
occur not less frequently than once during every 3-year period 
following the initial validation.

SEC. 1820. NON-CONTAINERIZED CARGO.

  The Secretary may consider the potential for participation in 
C-TPAT by importers of non-containerized cargoes that otherwise 
meet the requirements under this subtitle.

SEC. 1821. AUTHORIZATION OF APPROPRIATIONS.

  There are authorized to be appropriated $75,000,000 for each 
of the fiscal years 2007 through 2012 to carry out this 
subtitle.

                  Subtitle C--Miscellaneous Provisions

SEC. 1831. RESEARCH, DEVELOPMENT, TEST, AND EVALUATION EFFORTS IN 
                    FURTHERANCE OF MARITIME AND CARGO SECURITY.

  (a) In General.--The Secretary shall--
          (1) direct research, development, test, and 
        evaluation efforts in furtherance of maritime and cargo 
        security;
          (2) encourage the ingenuity of the private sector in 
        developing and testing technologies and process 
        innovations in furtherance of these objectives; and
          (3) evaluate such technologies.
  (b) Coordination.--The Secretary, in coordination with the 
Undersecretary for Science and Technology, the Director of the 
Domestic Nuclear Detection Office of the Department, and the 
heads of other appropriate offices or entities of the 
Department, shall ensure that--
          (1) research, development, test, and evaluation 
        efforts funded by the Department in furtherance of 
        maritime and cargo security are coordinated to avoid 
        duplication of efforts; and
          (2) the results of such efforts are shared throughout 
        the Department and other Federal, State, and local 
        agencies, as appropriate.

SEC. 1832. GRANTS UNDER OPERATION SAFE COMMERCE.

  (a) In General.--The Secretary shall provide grants, as part 
of Operation Safe Commerce, to--
          (1) integrate nonintrusive imaging inspection and 
        nuclear and radiological detection systems with 
        automatic identification methods for containers, 
        vessels, and vehicles;
          (2) test physical access control protocols and 
        technologies to include continuous tracking devices 
        that provide real-time monitoring and reporting;
          (3) create a data sharing network capable of 
        transmitting data required by entities participating in 
        the international supply chain from every intermodal 
        transfer point to the National Targeting Center of the 
        Department; and
          (4) otherwise further maritime and cargo security, as 
        determined by the Secretary.
  (b) Supply Chain Security for Special Container and 
Noncontainerized Cargo.--In providing grants under subsection 
(a), the Secretary shall establish demonstration projects that 
further the security of the international supply chain, 
including refrigerated containers, and noncontainerized cargo, 
including roll-on/roll-off, break-bulk, liquid, and dry bulk 
cargo, through real-time, continuous tracking technology for 
special or high-risk container cargo that poses unusual 
potential for human or environmental harm.
  (c) Competitive Selection Process.--The Secretary shall 
select recipients of grants under subsection (a) through a 
competitive process on the basis of the following criteria:
          (1) The extent to which the applicant can demonstrate 
        that personnel, laboratory, and organizational 
        resources will be available to the applicant to carry 
        out the activities authorized under this section.
          (2) The applicant's capability to provide leadership 
        in making national and regional contributions to the 
        solution of maritime and cargo security issues.
          (3) The extent to which the applicant's programs, 
        projects, and activities under the grant will address 
        highest risk priorities as determined by the Secretary.
          (4) The extent to which the applicant has a strategic 
        plan for carrying out the programs, projects, and 
        activities under the grant.
          (5) Any other criteria the Secretary determines to be 
        appropriate.
  (d) Administrative Provisions.--
          (1) Prohibition on duplication of effort.--Before 
        providing any grant under subsection (a), the Secretary 
        shall coordinate with other Federal departments and 
        agencies to ensure the grant will not duplicate work 
        already being carried out with Federal funding.
          (2) Accounting, reporting, and review procedures.--
        The Secretary shall establish accounting, reporting, 
        and review procedures to ensure that--
                  (A) amounts made available under a grant 
                provided under subsection (a)--
                          (i) are used for the purpose for 
                        which such amounts were made available; 
                        and
                          (ii) are properly accounted for; and
                  (B) amounts not used for such purpose and 
                amounts not expended are recovered.
          (3) Recordkeeping.--The recipient of a grant under 
        subsection (a) shall keep all records related to 
        expenditures and obligations of amounts provided under 
        the grant and make such records available upon request 
        to the Secretary for audit and examination.
          (4) Review.--The Secretary shall annually review the 
        programs, projects, and activities carried out using 
        amounts made available under grants provided under 
        subsection (a) to ensure that obligations and 
        expenditures of such amounts are consistent with the 
        purposes for which such amounts are made available.
  (e) Annual Report.--Not later than March 1 of each year, the 
Secretary shall submit to the appropriate congressional 
committees a report detailing the results of Operation Safe 
Commerce.
  (f) Definition.--In this section, the term ``Operation Safe 
Commerce'' means the research, development, test, and 
evaluation grant program that brings together private sector 
shareholders, port officials, and Federal, State, and local 
representatives to analyze existing security procedures for 
cargo and develop new security protocols that have the 
potential to increase the security of cargo shipments by 
monitoring the movement and integrity of cargo through the 
international supply chain.
  (g) Authorization of Appropriations.--
          (1) In general.--Subject to paragraph (2), there are 
        authorized to be appropriated $25,000,000 for each of 
        fiscal years 2007 through 2012 to carry out this 
        section.
          (2) Effective date.--Paragraph (1) shall be effective 
        beginning on the date on which the Secretary submits to 
        the appropriate congressional committees a report on 
        the implementation and results of grants provided under 
        Operation Safe Commerce before the date of the 
        enactment of the Security and Accountability For Every 
        Port Act.

SEC. 1833. DEFINITIONS.

  In this title, the following definitions apply:
          (1) Automated targeting system.--The term ``Automated 
        Targeting System'' means the rules-based system 
        incorporating intelligence material and import 
        transaction history, established by U.S. Customs and 
        Border Protection to target high risk shipments of 
        cargo.
          (2) Examination.--The term ``examination'' means a 
        physical inspection or the imaging and radiation 
        screening of a conveyance using non-intrusive 
        inspection (NII) technology, for the presence of 
        contraband.
          (3) Inspection.--The term ``inspection'' means the 
        comprehensive process used by U.S. Customs and Border 
        Protection for assessing goods entering the United 
        States to appraise them for duty purposes, to detect 
        the presence of restricted or prohibited items, and to 
        ensure compliance with all applicable laws. This 
        process may include screening, conducting an 
        examination, or conducting a search.
          (4) International supply chain.--The term 
        ``international supply chain'' means the end-to-end 
        process for shipping goods from a point of origin 
        overseas to and from the United States.
          (5) Nuclear and radiological detection system.--The 
        term ``nuclear and radiological detection system'' 
        means any technology that is capable of detecting or 
        identifying nuclear and radiological material or 
        explosive devices.
          (6) Screening.--The term ``screening'' means a visual 
        or automated review of information about goods, 
        including manifest or entry documentation accompanying 
        a shipment being imported into the United States, to 
        determine or assess the threat of such cargo.
          (7) Search.--The term ``search'' means an intrusive 
        examination in which a container is opened and its 
        contents are de-vanned and visually inspected for the 
        presence of misdeclared, restricted, or prohibited 
        items.

  [TITLE VI--TREATMENT OF CHARITABLE TRUSTS FOR MEMBERS OF THE ARMED 
   FORCES OF THE UNITED STATES AND OTHER GOVERNMENTAL ORGANIZATIONS]

                  TITLE XIX--MISCELLANEOUS PROVISIONS

SEC. [601.] 1901. TREATMENT OF CHARITABLE TRUSTS FOR MEMBERS OF THE 
                    ARMED FORCES OF THE UNITED STATES AND OTHER 
                    GOVERNMENTAL ORGANIZATIONS.

  (a) * * *

           *       *       *       *       *       *       *


             TITLE XX--OFFICE OF DOMESTIC NUCLEAR DETECTION

SEC. 2001. DOMESTIC NUCLEAR DETECTION OFFICE.

  (a) In General.--There shall be in the Department of Homeland 
Security a Domestic Nuclear Detection Office.
  (b) Purpose.--The purpose of the Office shall be to protect 
against the unauthorized importation, possession, storage, 
transportation, development, or use of a nuclear explosive 
device, fissile material, or radiological material against the 
United States.
  (c) Director.--The Office shall be headed by a Director of 
Domestic Nuclear Detection, who shall be appointed by the 
President from among individuals nominated by the Secretary.
  (d) Limitation.--This title shall not be construed to affect 
the performance, by directorates and agencies of the Department 
other than the Office, of functions that are not related to 
detection and prevention of nuclear and radiological terrorism.

SEC. 2002. FUNCTIONS OF DIRECTOR OF THE DOMESTIC NUCLEAR DETECTION 
                    OFFICE, GENERALLY.

  (a) In General.--The Secretary shall vest in the Director the 
primary responsibility in the Department for--
          (1) administering all nuclear and radiological 
        detection and prevention functions and assets of the 
        Department, including those functions vested in the 
        Department before the enactment of the Security and 
        Accountability For Every Port Act; and
          (2) for coordinating such administration with nuclear 
        and radiological detection and prevention activities of 
        other Federal departments and agencies.
  (b) Transfer of Functions.--The Secretary shall transfer to 
the Director the authority to administer, or supervise the 
administration of, all functions, personnel, assets, and 
liabilities of all Department programs and projects relating to 
nuclear and radiological detection research, development, 
testing, and evaluation, and nuclear and radiological detection 
system acquisition and deployment, including with respect to 
functions and assets transferred by section 303(1)(B), (C), and 
(E) and functions, assets, and personnel transferred pursuant 
to section 2010(c).

SEC. 2003. GLOBAL NUCLEAR DETECTION ARCHITECTURE.

  (a) In General.--The Director shall coordinate the Federal 
Government's implementation of a global nuclear detection 
architecture.
  (b) Functions of Director.--The Director shall, under 
subsection (a)--
          (1) design a strategy that will guide deployment of 
        the global nuclear detection architecture;
          (2) implement the strategy in the United States; and
          (3) coordinate Department and Federal interagency 
        efforts to deploy the elements of the global nuclear 
        detection architecture outside the United States.
  (c) Relationship to Other Departments and Agencies.--The 
authority of the Director under this section shall not affect 
an authority or responsibility of any other department or 
agency of the Federal Government with respect to the deployment 
of nuclear and radiological detection systems outside the 
United States under any program administered by that department 
or agency.

SEC. 2004. RESEARCH AND DEVELOPMENT.

  (a) In General.--The Director shall carry out a research and 
development program to achieve transformational and 
evolutionary improvements in detection capabilities for 
shielded and unshielded nuclear explosive devices and 
radiological dispersion devices.
  (b) High-Risk Projects.--The program shall include funding 
for transformational research and development projects that may 
have a high risk of failure but have the potential to provide 
significant benefits.
  (c) Long-Term Projects.--In order to reflect a long-term 
commitment to the development of more effective detection 
technologies, the program shall include the provision of 
funding for projects having a duration of more than 3 years, as 
appropriate.
  (d) Coordination With Other Federal Programs.--The Director 
shall coordinate implementation of the program with other 
Federal agencies performing similar research and development in 
order to accelerate the development of effective technologies, 
promote technology sharing, and to avoid duplication, including 
through the use of the interagency coordination council 
established under section 2013.

SEC. 2005. SYSTEM ASSESSMENTS.

  (a) In General.--The Director shall carry out a program to 
test and evaluate technology for detecting nuclear explosive 
devices and fissile or radiological material.
  (b) Performance Metrics.--The Director shall establish 
performance metrics for evaluating the effectiveness of 
individual detectors and detection systems in detecting nuclear 
explosive devices or fissile or radiological material--
          (1) under realistic operational and environmental 
        conditions; and
          (2) against realistic adversary tactics and 
        countermeasures.
  (c) Provision of Testing Services.--
          (1) In general.--The Director may, under the program, 
        make available testing services to commercial 
        developers of detection devices.
          (2) Fees.--The Director may charge fees, as 
        appropriate, for performance of services under this 
        subsection.
  (d) System Assessments.--
          (1) In general.--The Director shall periodically 
        perform system-wide assessments of the global nuclear 
        detection architecture to identify vulnerabilities and 
        to gauge overall system performance against nuclear and 
        radiological threats.
          (2) Included activities.--The assessments shall 
        include--
                  (A) red teaming activities to identify 
                vulnerabilities and possible modes of attack 
                and concealment methods; and
                  (B) net assessments to determine architecture 
                performance against adversary tactics and 
                concealment methods.
          (3) Use.--The Director shall use the assessments to 
        guide deployment of the global nuclear detection 
        architecture and the research and development 
        activities of the Office.

SEC. 2006. TECHNOLOGY ACQUISITION, DEPLOYMENT, SUPPORT, AND TRAINING.

  (a) Acquisition Strategy.--
          (1) In general.--The Director shall develop and, 
        subject to the availability of appropriations, execute 
        a strategy for the acquisition and deployment of 
        detection systems in order to implement the Department 
        components of the global nuclear detection architecture 
        developed under section 2003.
          (2) Use of available contracting procedures.--The 
        Director shall make use of all contracting procedures 
        available to the Secretary to implement the acquisition 
        strategy.
          (3) Determination of qualified anti-terrorism 
        technology.--The Director shall make recommendations 
        based on the criteria included in section 862(b) as to 
        whether the detection systems acquired pursuant to this 
        subsection shall be designated by the Secretary as 
        anti-terrorism technologies that qualify for protection 
        under the system of risk management set forth in 
        subtitle G of title VIII. The Undersecretary for 
        Science and Technology shall consider the Director's 
        recommendations and expedite the process of determining 
        whether such detection systems shall be designated as 
        anti-terrorism technologies that qualify for such 
        protection.
  (b) Deployment.--The Director shall deploy detection systems 
for use by Department operational units and other end-users in 
implementing the global nuclear detection architecture.
  (c) Operational Support and Protocols.--
          (1) Operational support.--The Director shall provide 
        operational support for all systems acquired to 
        implement the acquisition strategy developed under 
        subsection (a).
          (2) Operational protocols.--The Director shall 
        develop operational protocols for detection technology 
        acquired and deployed to implement the acquisition 
        strategy, including procedures for alarm resolution and 
        notification of appropriate response agencies in the 
        event that illicit nuclear, radioactive, or fissile 
        materials are detected by such a product or service.
          (3) Technical reachback.--The Director will ensure 
        that the expertise necessary to accurately interpret 
        detection data is made available in a timely manner for 
        all technology deployed to implement the global nuclear 
        detection architecture.
  (d) Training.--The Director shall develop and distribute 
training materials and provide training to all end-users of 
technology acquired by the Director under the acquisition 
strategy.
  (e) Solicitation of End-User Input.--In developing 
requirements for the research and development program of 
section 2004 and requirements for the acquisition of detection 
systems to implement the strategy in subsection (a), the 
Director shall solicit input from end-users of such systems.
  (f) State and Local Support.--Upon request, the Director 
shall provide guidance regarding radiation detection technology 
acquisitions to be made by State, territorial, tribal and local 
governments and emergency response providers.

SEC. 2007. SITUATIONAL AWARENESS.

  (a) Detection Information.--The Director--
          (1) shall continuously monitor detection information 
        received from foreign and domestic detection systems to 
        maintain for the Department a situational awareness of 
        all nuclear threats;
          (2) shall gather and archive--
                  (A) detection data measurements taken of 
                benign activities in the normal flows of 
                commerce; and
                  (B) alarm data, including false alarms and 
                nuisance alarms.
  (b) Information Sharing.--The Director shall coordinate with 
other governmental agencies to ensure that the detection of 
unauthorized nuclear explosive devices, fissile material, or 
radiological material is promptly reported to all appropriate 
Federal response agencies including the Attorney General, the 
Director of the Federal Bureau of Investigation, the Secretary 
of Defense, and the Secretary of Energy.
  (c) Incident Resolution.--The Director shall assess nuclear 
threats communicated by Federal, State, tribal, or local 
officials and provide adequate technical reachback capability 
for swift and effective incident resolution.
  (d) Security.--The Director shall--
          (1) develop and implement security standards and 
        protocols for the control and protection of all 
        classified or sensitive information in possession of 
        the Office; and
          (2) ensure that relevant personnel of the Office have 
        the required security clearances to properly handle 
        such information.

SEC. 2008. FORENSIC ANALYSIS.

  The Director shall perform all research, development, and 
acquisition activities of the Department pertaining to forensic 
analysis and attribution of nuclear and radiological attacks.

SEC. 2009. THREAT INFORMATION.

  (a) Threat Assessments.--The Director shall utilize 
classified and unclassified nuclear and radiological threat 
assessments in designing the global nuclear detection 
architecture under section 2003, prioritizing detection system 
deployments, and testing and optimizing system performance of 
that architecture, including assessments of--
          (1) smuggling routes;
          (2) locations of relevant nuclear and radiological 
        material throughout the world;
          (3) relevant terrorist tradecraft and concealment 
        methods;
          (4) relevant nuclear and radiological threat objects 
        in terms of possible detection signatures.
  (b) Access to Information.--The Secretary shall provide the 
Director access to all information relating to nuclear and 
radiological threats, including reports, assessments, analyses, 
and unevaluated intelligence, that is necessary to successfully 
design, deploy, and support the operation of an effective 
global detection architecture under section 1903.
  (c) Analytical Support.--The Director shall request that the 
Secretary provide to the Director, pursuant to section 
201(d)(18), the requisite intelligence and information analysis 
support necessary to effectively discharge the Director's 
responsibilities.
  (d) Analytical Expertise.--For the purposes of performing any 
of the assessments required under subsection (a), the Director, 
subject to the availability of appropriations, may hire 
professional personnel who are analysts with experience in 
performing nuclear and radiological threat assessments.
  (e) Collection Requests.--The Director shall recommend to the 
Secretary consultation that should occur pursuant to section 
201(d)(10) regarding intelligence collection to design, deploy, 
and support the operation of the global detection architecture 
under section 2003.

SEC. 2010. ADMINISTRATIVE AUTHORITIES.

  (a) Hiring.--In hiring personnel for the Office, the 
Secretary shall have hiring and management authorities 
described in section 1101 of the Strom Thurmond National 
Defense Authorization Act for Fiscal Year 1999 (5 U.S.C. 3104 
note; Public Law 105-261). The term of appointments for 
employees under subsection (c)(1) of that section may not 
exceed 5 years before granting any extension under subsection 
(c)(2) of that section.
  (b) Detail of Personnel.--In order to assist the Director in 
discharging the Director's responsibilities, personnel of other 
Federal agencies may be detailed to the Office for the 
performance of analytic functions and related duties.
  (c) Transfer of Science and Technology Functions, Personnel, 
and Assets.--
          (1) Transfer required.--Except as provided in 
        paragraph (2), the Secretary shall transfer to the 
        Director the functions, assets, and personnel of the 
        Department relating to radiological and nuclear 
        countermeasures, including forensics of contaminated 
        evidence and attack attribution.
          (2) Exceptions.--The Secretary shall not transfer 
        under paragraph (1) functions, assets, and personnel 
        relating to consequence management and recovery.
          (3) Elimination of duplication of effort.--The 
        Secretary shall ensure that to the extent there are 
        complementary functions vested in the Directorate of 
        Science and Technology and the Office with respect to 
        radiological and nuclear countermeasures, the Under 
        Secretary for Science and Technology and the Director 
        coordinate the programs they administer to eliminate 
        duplication and increase integration opportunities, 
        particularly with respect to technology development and 
        test and evaluation.

SEC. 2011. REPORT REQUIREMENT.

  The Director shall submit to the appropriate congressional 
committees an annual report on the following:
          (1) The global detection strategy developed under 
        section 2003.
          (2) The status of implementation of such 
        architecture.
          (3) The schedule for future detection system 
        deployments under such architecture.
          (4) The research and development program of the 
        Office.
          (5) A summary of actions taken by the Office during 
        the reporting period to counter nuclear and 
        radiological threats.

SEC. 2012. ADVISORY COUNCIL ON NUCLEAR DETECTION.

  (a) Establishment.--Pursuant to section 871 of this Act, the 
Secretary shall establish within the Office an Advisory Council 
on Nuclear Detection, which shall report to the Director (in 
this section referred to as the ``Advisory Council'').
  (b) Functions.--The Advisory Council shall, at the request of 
the Director--
          (1) advise the Director on recommendations for the 
        global nuclear detection architecture developed under 
        section 2003(a);
          (2) identify research areas for development of next-
        generation and transformational nuclear and 
        radiological detection technologies; and
          (3) and have such additional responsibilities as the 
        Director may assign in furtherance of the Department's 
        homeland security mission with respect to enhancing 
        domestic and international nuclear and radiological 
        detection capabilities.
  (c) Membership.--The Advisory Council shall consist of 5 
members appointed by the Director, who shall--
          (1) be individuals who have an eminent knowledge and 
        technical expertise related to nuclear and radiological 
        detection research and development and radiation 
        detection; and
          (2) be selected solely on the basis of their 
        established record of distinguished service; and
          (3) not be employees of the Federal Government, other 
        than employees of National Laboratories.
  (d) Conflict of Interest Rules.--The Advisory Council shall 
establish rules for determining when one of its members has a 
conflict of interest in a matter being considered by the 
Advisory Council, and the appropriate course of action to 
address such conflicts of interest.

SEC. 2013. INTERAGENCY COORDINATION COUNCIL.

  The President--
          (1) shall establish an interagency coordination 
        council to facilitate interagency cooperation for 
        purposes of implementing this title;
          (2) shall appoint the Secretary to chair the 
        interagency coordination council; and
          (3) may appoint the Attorney General, the Secretary 
        of Energy, the Secretary of State, the Secretary of 
        Defense, and the heads of other appropriate Federal 
        agencies to designate members to serve on such council.

SEC. 2014. AUTHORIZATION OF APPROPRIATIONS.

  There is authorized to be appropriated to carry out this 
title--
          (1) $536,000,000 for fiscal year 2007; and
          (2) such sums as may be necessary for each subsequent 
        fiscal year.

SEC. 2015. DEFINITIONS.

  In this title:
          (1) The term ``Director'' means the Director of the 
        Domestic Nuclear Detection Office.
          (2) The term ``fissile materials'' means materials 
        capable of sustaining a nuclear chain reaction.
          (3) The term ``global nuclear detection 
        architecture'' means a multi-layered system of 
        detectors deployed internationally and domestically to 
        detect and interdict nuclear and radiological materials 
        intended for illicit use.
          (4) The term ``nuclear and radiological detection 
        system'' means any technology that is capable of 
        detecting or identifying nuclear and radiological 
        material or explosive devices.
          (5) The term ``Office'' means the Domestic Nuclear 
        Detection Office.
          (6) The term ``radiological material'' means material 
        that emits nuclear radiation.
          (7) The term ``nuclear explosive device'' means an 
        explosive device capable of producing a nuclear yield.
          (8) The term ``technical reachback'' means technical 
        expert support provided to operational end users for 
        data interpretation and alarm resolution.
          (9) The term ``transformational'' means that, if 
        successful, will produce dramatic technological 
        improvements over existing capabilities in the areas of 
        performance, cost, or ease of use.

                     MINORITY AND DISSENTING VIEWS

                              Introduction

    The Committee on Homeland Security marked-up and reported 
H.R. 4954, the ``Security and Accountability For Every Port 
Act,'' or SAFE Port Act, on Wednesday, April 26, 2006.
    The Committee's bipartisan and thoughtful effort to address 
port security, one of the most significant homeland security 
challenges of our time, should be commended. The Dubai Ports 
World scandal finally focused the attention of the public and 
Congress on the issue of port security, but Democrats on this 
Committee and its predecessor, the Select Committee on Homeland 
Security, have long advocated addressing security 
vulnerabilities at our nation's ports. Indeed, many of the 
bill's provisions closely mirror H.R. 4355 introduced by 
Economic Security, Infrastructure Protection, and Cybersecurity 
(ESIP&C) Ranking Member Loretta Sanchez (D-CA) in the 108th 
Congress; H.R. 1731 introduced by Rep. Jane Harman (D-CA) in 
this Congress; and an amendment offered by Rep. Sanchez during 
the Committee's mark-up of H.R. 1817, the Department of 
Homeland Security Authorization Act for Fiscal Year 2006. Rep. 
Harman deserves praise for her successful effort to get H.R. 
4954 introduced on a bipartisan basis, and along with other 
leaders involved in further shaping the bill, including Rep. 
Sanchez and Ranking Member Bennie G. Thompson (D-MS), we are 
glad to have had a role in pushing the Majority to conclude 
work on it. We believe that H.R. 4954 represents an important 
step towards improving our nation's port security.
    Specifically, the bill provides $400 million in much needed 
assistance to port operators to help offset the costs of 
security regulations. It also requires the development of 
minimum security standards for containers so that terrorists 
cannot tamper with shipments in route to our ports. We are also 
pleased that the bill makes some enhancements to the Container 
Security Initiative (CSI) and Customs Trade Partnership Against 
Terrorism (C-TPAT) programs. These changes will close dangerous 
security gaps that Democrats identified years ago. Finally, we 
appreciate the investments this bill makes in U.S. Coast Guard 
command centers and to advance research and development of 
next-generation screening and detection systems.
    H.R. 4954 was further strengthened during the mark-up by 
the adoption of several important Democratic amendments, 
including one to dramatically accelerate by ten years the 
completion of the Deepwater Program, the Coast Guard's effort 
to modernize its outdated ships and equipment. This would cut 
by half the anticipated timeframe for completion of the 
Deepwater Program.
    At the same time, we are disappointed by the rejection of 
several key amendments that would have further strengthened 
supply chain security and our nation's protections against the 
threat of terrorists smuggling nuclear or radiological 
materials into this country's ports. For example, an amendment 
offered by Representative Edward J. Markey (D-MA) would have 
required all containers entering the United States to be 
screened within three to five years. We will continue to 
advocate for the inclusion of these measures as the bill 
progresses through the legislative process.

              TITLE I--SECURITY OF UNITED STATES SEAPORTS

    The recent Dubai Ports World controversy finally brought 
attention to seaport security. We are pleased that Title I of 
the bill increases funding in the port security grant program 
by over $200 million a year. Democratic Members of the 
Committee have long called for additional funding to assist 
ports with the cost of complying with federal security 
mandates, which the Coast Guard estimates could be $5.4 billion 
over the next ten years. Following 9/11 a number of our major 
seaports conducted assessments and exercises that revealed the 
extent of their vulnerabilities. Additionally, a number of 
studies revealed the economic cost of a terrorist attack at our 
ports. We recognize that effective security practices must be 
developed with the understanding of the critical role that the 
flow of commerce plays in this nation's economic life. In a 
post-9/11 world, robust security practices are part and parcel 
of best business practices.
    We are also pleased that this title requires the Secretary 
of Homeland Security to complete deployment of the 
Transportation Worker Identification Card (TWIC) on a specific 
time schedule. Congress originally required the Department of 
Homeland Security to begin developing TWIC in 2002, so a 
timeline for its implementation is long overdue. Finally, other 
sections in this bill will improve port security by requiring 
the Department to develop a long-range vessel tracking system, 
maritime security command centers, and protocols to resume port 
operations in the event of a terrorist attack.
    We are pleased that a number of amendments that strengthen 
port security provisions in Title I were accepted. First, the 
bipartisan amendments offered by Reps. David Reichert (R-WA) 
and Bill Pascrell (D-NJ) represent a major effort to ensure 
that longshoreman and other personnel at ports receive the 
training they need to prevent and respond to terrorist attacks. 
Second, the amendment offered by Rep. Donna Christensen (D-
USVI) to accelerate completion by more than ten years of the 
Deepwater Program, the Coast Guard's effort to acquire new 
ships and equipment, is a dramatic recognition of the need to 
quickly provide that agency with modern tools needed to fulfill 
ever-increasing demands. Third, we are pleased that three 
amendments that seek to enhance the flow of commerce were 
accepted on voice vote--(1) Rep. Christensen's amendment to 
create a permanent Border Patrol presence in the U.S. Virgin 
Islands (2) Rep. Christensen's amendment to address the 
unintended consequences on travelers of certain departure 
manifest requirements and (3) Rep. Sheila Jackson-Lee's (D-TX) 
amendment to require a report from the Department on the 
security of operations at the ten United States ports that load 
and unload the largest numbers of containers.
    Additionally, Ranking Member Thompson successfully secured 
an agreement with Economic Security, Infrastructure Protection, 
and Cybersecurity Chairman Dan Lungren (R-CA) to address 
concerns about the adequacy of appeal rights for port workers 
in states that set stricter background requirements than those 
set by the Federal government. We note that the Safe, 
Accountable, Flexible, Efficient Transportation Equity Act: A 
Legacy for Users (P.L. 109-59) already provides these appeal 
rights to truckers carrying hazardous materials in states that 
set stricter standards than thoserequired by the Federal 
government. We will work to reach an agreement with the Majority on 
this issue before this bill reaches the floor.
    On the other hand, we were disappointed by the rejection of 
several Democratic amendments that would have greatly 
strengthened port security. First, we were disappointed that an 
amendment offered by Ranking Member Thompson to hire 1,600 
Customs and Border Protection inspectors over the next four 
years was rejected. We strongly believe that the hiring of 
these new inspectors would greatly enhance the Department's 
ability to ensure that far more high risk containers actually 
get inspected. Undoubtedly, many more inspectors will be 
necessary when security standards and programs are improved, 
and next generation screening technology is finally deployed.
    We were also disappointed by the rejection of several 
amendments to Title I offered by Rep. Jackson-Lee. Her 
amendment would have allowed the use of port security grant 
funds to defray personnel costs during periods of elevated 
threat level. This would have addressed one of the largest 
costs ports are incurring as a result of security regulations 
put in place after the 9/11 attacks. Indeed, the President of 
the American Association of Port Authorities has asked for this 
flexibility in the port security grant program, writing in a 
letter to Chairman Peter T. King (R-NY) and Ranking Member 
Thompson that, ``Personnel costs are a large unfunded mandate 
for many public ports.''
    Rep. Jackson-Lee's other two amendments would also have 
strengthened port security by focusing directly on the issue at 
the heart of the Dubai Ports World controversy--the security 
implications of foreign firms overseeing operations at American 
ports. One of her amendments called for a moratorium on any 
contracts for port operations with individuals or entities with 
terrorist ties. The other required the Government 
Accountability Office (GAO) to produce a report on the 
activities of foreign nationals at United States ports.

          TITLE II--SECURITY OF THE INTERNATIONAL SUPPLY CHAIN

    Title II contains the core of the SAFE Port Act. It would 
begin to address the largest gap in our port security--the 
security of containers transiting the global supply chain. This 
bill requires the Department to create a comprehensive strategy 
for securing maritime container traffic--the completion of 
which will provide crucial direction to the Department and the 
international community's efforts to improve security.
    We are also pleased that this title requires the submission 
of entry data to Customs and Border Protection (CBP) as part of 
the Automated Targeting System (ATS). The ATS system determines 
a container's level of risk by analyzing manifest data to 
assess whether it should be inspected. This program is at the 
heart of the Department's risk-based container security policy 
but has been roundly criticized by both the GAO and the 
Department's own Inspector General (IG) for its over-reliance 
on manifest data for targeting. The IG found that entry data 
produced a more accurate risk score compared to manifest data, 
and recommended that the Department target containers using 
entry data in addition to manifests and other information. This 
bill requires the Department to implement the IG's 
recommendation.
    Another vulnerability that H.R. 4954 addresses is the risk 
that a terrorist will tamper with a container and place a 
weapon of mass destruction in it at some point after its 
departure from a foreign port. The bill's mandate that the 
Department issue regulations for container seals will make it 
harder for a terrorist to break into a container. It will also 
protect normal commerce by preventing goods from being stolen.
    We are also heartened that this bill authorizes and 
improves the C-TPAT program. ESIP&C Ranking Member Sanchez has 
been at the forefront of efforts to ensure that the security 
plans of C-TPAT participants are actually validated. Currently, 
only 1,545 of the 5,800 companies entitled to benefits under 
the program have had their security plans validated. This bill 
requires the Secretary to initiate a pilot project to conduct 
C-TPAT validations using certified-third party validators. 
Additionally, H.R. 4954 clarifies the steps each C-TPAT 
participant must take to improve security practices and the 
benefits that participants will be entitled to receive.
    This bill also directs the Department to launch a pilot 
project to discover ways to inspect empty containers without 
disrupting commerce. Rep. Sanchez became concerned about the 
security risks posed by empty containers after conducting a 
tour of a port on the West Coast, and she requested this pilot 
project as a way to further examine the issue.
    We are also pleased that this bill restores the Operation 
Safe Commerce program. Operation Safe Commerce is a pilot 
project that tests commercial off-the-shelf technology designed 
to improve container security in operational supply chains. 
Restoring this program allows the Department to leverage the 
private sector to develop technology and have it tested in a 
real-world environment.
    Although H.R. 4954's efforts to strengthen the security of 
the international supply chain are considerable, we are 
disappointed by the Chairman's departure from Committee 
practice and tradition when he failed to use the pre-filed 
amendment roster system to consider a supply chain amendment by 
Rep. Ginny Brown-Waite (R-FL) that had not been shared with 
Democrats on the Committee prior to its introduction. While we 
unanimously supported Rep. Brown-Waite's amendment, the context 
in which it was introduced--as an obvious effort to undermine 
another amendment offered by Rep. Markey--was disappointing. 
Rep. Brown-Waite's amendment would require the Department to 
fully evaluate emerging screening technologies, such as 
technology being used in Hong Kong, and would provide some new 
authority to the Secretary to refuse entry to containers that 
come from foreign ports. While Rep. Brown-Waite's amendment is 
admirable, it is not a substitute for instituting aggressive 
scanning of U.S.-bound containers. Our nation simply cannot 
continue to advance supply chain security at a snail's pace.
    Rep. Markey's amendment, which was defeated largely along 
party lines, is a forward-looking security measure, requiring 
that all containers be scanned and sealed,using the best 
available technology, within a three to five year timeframe. The 
amendment also gives the Secretary authority to extend these deadlines 
by up to a year, if necessary. Under this reasonable and feasible 
approach, our nation can move closer to deploying a system to screen 
all containers entering the United States without hindering commerce. 
This position was affirmed by the Committee on Transportation and 
Infrastructure when it approved the same amendment, offered by Rep. 
Jerrold Nadler (D-NY), without controversy. Indeed, several Members of 
this Committee who also sit on the Committee on Transportation and 
Infrastructure voted against Rep. Markey's amendment, but did not 
oppose that same amendment when it was offered by Rep. Nadler.
    The reality is that by the time a weapon of mass 
destruction arrives in a United States port, it is too late. We 
must address our security vulnerabilities long before the 
containers are unloaded on our soil. We have the technology to 
do this--the ports of Hong Kong and Boston already screen most 
inbound cargo, using commercially available technology without 
interrupting the flow of commerce. According to security expert 
Stephen Flynn of the Council on Foreign Relations, the cost of 
screening would be about $50 to $100 per container--a fraction 
of the standard ($4,000) cost of shipping a container from Asia 
to the United States, and to the average ($66,000) value of 
each container. Our nation must put in place this type of 
reasonable container screening system to protect all our ports, 
but Congress will have to pass Rep. Markey's amendment in order 
to force the Department to take this step.
    We were also disappointed that Rep. Sanchez's amendment 
dealing with the benefits available to those companies in the 
first tier of the C-TPAT program was rejected. At present, 
companies enrolled in the C-TPAT program receive a reduced 
score in the ATS, thereby reducing the likelihood that their 
containers will be inspected. Companies receive this benefit 
even before the Department verifies that they are actually 
following their registered security plan. Although this bill 
creates a three-tiered system of benefits for C-TPAT 
participants that depends on the steps they have taken to 
improve security, those companies in the first tier will still 
receive a reduced ATS score even when their security plans have 
not been validated. As a result, a company with lax security 
measures that leave its shipments open to terrorist 
exploitation would still receive less scrutiny than its 
competitors. Rep. Sanchez's amendment prohibits companies from 
receiving a reduced ATS score until their security plan is 
validated--thereby strengthening the overall security and 
effectiveness of the C-TPAT program. We will continue to work 
to address this vulnerability.

 TITLE III--DIRECTORATE FOR POLICY, PLANNING, AND INTERNATIONAL AFFAIRS

    Under H.R. 4954, the Department's strategic planning and 
program coordination under the direction of an Under Secretary 
of Policy would be put in statute. We supported Secretary 
Michael Chertoff 's decision to create this office after the 
completion of his Second Stage Review last year, and are 
pleased to authorize the creation of the Policy Directorate. We 
will be closely monitoring the activities of this office and 
will continue to call upon the Department to adopt 
comprehensive strategic planning and integrated policies. This 
portion of the bill was greatly strengthened by the acceptance 
of Rep. Jackson-Lee's amendment requiring that anyone appointed 
Under Secretary of Policy has the necessary qualifications. The 
President's decision to fill high-level positions at the 
Federal Emergency Management Agency (FEMA) with unqualified 
individuals, instead of seasoned professionals, contributed to 
the poor response to Hurricane Katrina. The responsibility for 
coordinating Department programs adequately and thinking about 
long-term strategies must be put on the shoulders of an 
individual who has a record of leadership in developing and 
implementing policy. We are also supportive of the creation of 
an Office of Cargo Security within the Policy Directorate to 
improve coordination of supply-chain security initiatives among 
Coast Guard, CBP, and Transportation Security Administration 
(TSA).

             TITLE IV--OFFICE OF DOMESTIC NUCLEAR DETECTION

    We are pleased that the Domestic Nuclear Detection Office 
(DNDO), another Second Stage Review provision that we 
supported, is authorized at $536 million in Title IV. The DNDO 
is authorized to develop a global nuclear detection 
architecture; implement the domestic portion of the 
architecture; perform transformational research and development 
to improve detection; and provide operational support and 
maintain situational awareness of the nuclear and radiological 
threat. In addition, we are pleased with the bill's creation of 
a next-generation portal monitor pilot project to place the 
best available detection equipment in high volume ports.
    Although the DNDO provisions in the bill will improve 
security, the rejection of amendments offered by Prevention of 
Nuclear and Biological Attack Ranking Member James Langevin (D-
RI) represent missed opportunities to further enhance our 
radiation detection capabilities. Rep. Langevin's first 
amendment strengthened the planning provisions in the base bill 
by requiring the DNDO to develop a more comprehensive, risk-
based deployment strategy for radiological and nuclear 
detection equipment, including a timeline and analysis of 
costs. This amendment also would increase funds for placing 
radiation portal monitors at ports-of-entry by $117 million. In 
recent testimony before the Committee, Department officials 
stated that funding is one of the reasons that the deployment 
of radiation portal monitors is behind schedule. The threat of 
a terrorist detonating a dirty bomb, or worse, a nuclear 
weapon, requires this country to have a comprehensive detection 
and deterrent capability in place. Rep. Langevin's amendment 
would be a large step in that direction.
    We are also disappointed that Rep. Langevin's Advanced 
Radiation Portal Monitor Amendment was defeated. The DNDO is in 
the process of awarding a contract for the Advanced 
Spectroscopic Portal (ASP) project. The ASP portal monitors are 
next-generation technology that allow security officers to 
determine the radiological source that causes a monitor to 
trigger an alarm. Knowing the cause of an alarm will permit 
officers to keep monitors at a high level of sensitivity 
without triggering false alarms and slowing commerce. While 
there are production issues associated with this program, the 
primary obstacle is the cost to deploy these systems at ports-
of-entry. The Departmentestimates this cost at $1.3 billion. 
Rep. Langevin's amendment authorizes this funding, thereby enabling the 
Department to purchase and install these systems.

                               Conclusion

    The SAFE Port Act represents a major achievement for the 
Committee on Homeland Security in its bipartisan efforts to 
secure our nation's seaports. The comprehensive nature of this 
legislation sets it apart from previous endeavors. We are 
pleased that the Majority, led by Chairman King, adopted many 
of the legislative ideas that Democratic Committee Members have 
been championing for years. The inclusion of Democratic 
provisions greatly enhanced the final Committee product. As 
this legislation weaves its way through the Congress, we will 
continue to seek opportunities to further strengthen H.R. 4954, 
the SAFE Port Act.

                                   Bennie G. Thompson.
                                   Zoe Lofgren.
                                   Bob Etheridge.
                                   Kendrick B. Meek.
                                   Loretta Sanchez.
                                   Bill Pascrell, Jr.
                                   Jim Langevin.
                                   Edward J. Markey.
                                   Jane Harman.
                                   Nita Lowey.
                                   Donna M. Christensen.
                                   Norm Dicks.
                                   Peter DeFazio.
                                   Sheila Jackson-Lee.
                                   Eleanor H. Norton.