S. 2008 (109th): GreenLane Maritime Cargo Security Act

109th Congress, 2005–2006. Text as of Nov 16, 2005 (Placed on Calendar in the Senate).

Status & Summary | PDF | Source: GPO

II

Calendar No. 292

109th CONGRESS

1st Session

S. 2008

IN THE SENATE OF THE UNITED STATES

November 15, 2005

(for herself, Ms. Collins, Mr. Lieberman, and Mr. Coleman) introduced the following bill; which was read the first time

November 16, 2005

Read the second time and placed on the calendar

A BILL

To improve cargo security, and for other purposes.

1.

Short title; table of contents

(a)

Short title

This Act may be cited as the GreenLane Maritime Cargo Security 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.

Sec. 4. Strategy.

Sec. 5. Office of Cargo Security Policy.

Sec. 6. Container security standards and procedures.

Sec. 7. Radiation detection and radiation safety.

Sec. 8. Container Security Initiative.

Sec. 9. Customs-Trade Partnership Against Terrorism.

Sec. 10. GreenLane designation.

Sec. 11. Joint operations center.

Sec. 12. Research, development, test, and evaluation.

Sec. 13. Port Security Grant Program.

Sec. 14. Authorization of appropriations.

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. Improving the security of this complex supply chain is critical for the prosperity and liberty of all nations.

(2)

In 2004, approximately 9,700,000 shipping containers came into the United States through the Nation's seaports, averaging nearly 27,000 per day.

(3)

In May 2002, the Brookings Institution estimated that costs associated with United States port closures from a detonated terrorist weapon could add up to $1,000,000,000,000 from the resulting economic slump and changes in our Nation's ability to trade. Although the October 2002 west coast port closures were anticipated, such closures cost the American economy approximately $1,000,000,000 per day for the first 5 days.

(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. Initiatives to secure shipping containers have just begun..

(5)

The April 2005 Government Accountability Office report entitled CONTAINER SECURITY: A Flexible Staffing Model and Minimum Equipment Requirements Would Improve Overseas Targeting and Inspection Efforts reported that the effectiveness of the Container Security Initiative is compromised when containers screened by the Bureau of Customs and Border Protection and identified as high-risk are not properly inspected and examined by foreign governments.

(6)

The March 2005 Government Accountability Office report entitled, CARGO SECURITY: Partnership Program Grants Importers Reduced Scrutiny with Limited Assurance of Improved Security, reports that the terrorist events of September 11, 2001, raised concerns about the potential use of company supply chains, particularly oceangoing cargo containers, to move weapons of mass destruction to the United States. While the likelihood of such use of containers is considered low, the movement of oceangoing containerized cargo is vulnerable to some form of terrorist action. Such action, including attempts to smuggle either fully assembled weapons of mass destruction or their individual components, could lead to widespread death and damage.

(7)

In August 2005, the President issued the National Strategy for Maritime Security, which notes that the probability of a hostile state using a weapon of mass destruction (referred to in this section as WMD) will increase during the next decade. WMD are of great concern since the maritime sector is the most likely to be used to bring a WMD into the United States. In addition, the adoption of a just-in-time delivery approach to shipping by most industries, rather than stockpiling or maintaining operating reserves of energy, raw materials, and key components, means that a disruption or slowing of the flow of almost any item can have widespread implications for the overall market and national economy.

(8)

Significant enhancements can be achieved by applying a layered approach to supply chain security, though such layers must be developed in a coordinated fashion. Current supply chain security programs within the Federal government have been independently operated, often falling short of gains which could be made had coordination taken place.

(9)

In a May 26, 2005, hearing of the Permanent Subcommittee on Investigations of the Committee on Homeland Security and Governmental Affairs of the Senate, key concerns with the Department’s supply chain security programs were noted, including—

(A)

only 17.5 percent of the cargo that the Bureau of Customs and Border Protection had identified as high-risk is inspected overseas;

(B)

equipment, such as radiation detection devices and nonintrusive imaging machines, used overseas for inspections are untested and of unknown quality;

(C)

the Bureau of Customs and Border Protection has failed to develop performance measures for the Container Security Initiative that would validate CSI port designations and justify the deployment of personnel overseas;

(D)

the lack of such performance measures and an assessment for staffing allocations has lead to some CSI ports being overstaffed while others are inadequately staffed;

(E)

substantial benefits including fewer inspections are provided to importers enrolled in the C–TPAT program without a thorough review or validation of their supply chain security profiles; and

(F)

the validation procedures and requirements are not sufficiently rigorous to ensure the C–TPAT member’s security procedures are adequate.

(10)

The statement of managers accompanying the conference report on the Department of Homeland Security Appropriations Act, 2005 (Public Law 108–334) directed the Under Secretary for Border and Transportation Security to submit a report to the Congress no later than February 8, 2005, which identified: (1) the steps the Department has taken to date to enhance shipping container security, (2) the resources that have been devoted to shipping container security in prior fiscal years and the proposed resources to continue this security, (3) the results of on-going projects, such as Operation Safe Commerce, CSI, C–TPAT and others, (4) which departmental entity has primary responsibility for implementing the needed changes, and (5) the steps the entity with primary responsibility will take to implement these changes, including a specific schedule for the development and issuance of standards, policies, procedures, or regulations.. The statement of managers accompanying the conference report on the Department of Homeland Security Appropriations Act, 2006 (Public Law 109–90) directed the Department of Homeland Security to conduct a new review regarding cargo container security, stating on June 9, 2005, the Department submitted a report on cargo container security which was 4 months overdue and did not meet the needs outlined in the statement of managers accompanying the conference report on the Department of Homeland Security Appropriations Act, 2005 (Public Law 108–334)..

(11)

While it is impossible to completely remove the risk of terrorist attacks, security measures in the transport sector designed to counter terrorism 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, counter-terrorism measures can also present an opportunity to find and agree on measures that combine the imperative to fight terrorism with the possibility of increased efficiency in the system. These efficiency gains are maximized when all nations adopt them.

(12)

The World Customs Organization has taken a positive step in furtherance of international supply chain security in publishing the Framework of Standards to Secure and Facilitate Global Trade, which outlines a set of minimum standards designed to—

(A)

establish standards for security and trade facilitation;

(B)

enable integrated supply chain management;

(C)

enhance the capabilities of customs administrations; and

(D)

promote cooperation between the customs and business communities.

(13)

The shipping industry has a responsibility to monitor, self-assess, and report on the risks associated with goods under their control or use. The public sector must offer incentives for companies to invest in security in order to promote information sharing and other public-benefit outcomes.

(14)

Increasing the transparency of the supply chain will assist in mitigating the impact of an incident by allowing for targeted shutdown of the international supply chain and expedited restoration of commercial traffic.

3.

Definitions

In this Act:

(1)

Automated Targeting System

The term Automated Targeting System means the system established by the Bureau of Customs and Border Protection to assess imports and target those imports which pose a high risk of containing contraband.

(2)

Container

The term container has the meaning given the term in the International Convention for Safe Containers, with annexes, done at Geneva December 2, 1972 (29 UST 3707).

(3)

Container security device

The term container security device means a device or system to track and monitor containers for, and secure them against, tampering or compromise throughout the international supply chain.

(4)

Container Security Initiative; CSI

The terms Container Security Initiative and CSI mean the program authorized under section 8 to identify and examine maritime containers that pose a risk for terrorism at foreign ports before they are shipped to the United States.

(5)

Customs-Trade Partnership Against Terrorism; C–TPAT

The terms Customs-Trade Partnership Against Terrorism and C–TPAT mean the voluntary program authorized under section 9 to strengthen and improve the overall security of the international supply chain and United States border security.

(6)

Department

The term Department means the Department of Homeland Security.

(7)

Examination

The term examination means an inspection of cargo to detect the presence of misdeclared, restricted, or prohibited items, including an inspection using nonintrusive imaging and detection technology.

(8)

GreenLane

The term GreenLane refers to the third tier of C–TPAT, that offers additional benefits to validated C–TPAT participants that demonstrate a sustained commitment beyond the minimum requirements for participation in C–TPAT.

(9)

Inspection

The term inspection means the comprehensive process used by the Bureau of 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.

(10)

International supply chain

The term international supply chain means the end-to-end process for shipping goods from a point of origin overseas to the United States.

(11)

Operation safe commerce

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.

(12)

Point of origin

The term point of origin, in the case of goods, means the point at which such goods are assembled into the smallest exterior packaging unit for movement through the international supply chain.

(13)

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.

(14)

Search

The term search means an intrusive examination in which a container is opened and its contents are de-vanned and visually inspected by inspectional personnel for the presence of misdeclared, restricted, or prohibited items.

(15)

Secretary

The term Secretary means the Secretary of Homeland Security.

(16)

Smallest exterior packaging unit

The term smallest exterior packaging unit has the meaning given such term in section 4.7a of title 19, Code of Federal Regulations (as in effect on the date of enactment of this Act).

(17)

Supply chain visibility procedure

The term supply chain visibility procedure means a system or process capable of tracking goods at the smallest exterior packaging unit level from their point of origin to the point of loading into a container entering the international supply chain.

(18)

Transportation security incident

The term transportation security incident has the meaning given such term in section 70101(6) of title 46, United States Code.

4.

Strategy

(a)

Strategic Plan

(1)

In general

Not later than 180 days after the date of enactment of this Act, 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 submit a comprehensive strategic plan to enhance international supply chain security for all modes of transportation by which containers arrive in, depart from, or move through seaports of the United States to—

(A)

the Committee on Homeland Security and Governmental Affairs of the Senate;

(B)

the Committee on Appropriations of the Senate;

(C)

the Committee on Homeland Security of the House of Representatives; and

(D)

the Committee on Appropriations of the House of Representatives.

(2)

Content

The strategic plan submitted under paragraph (1) shall—

(A)

clarify and delineate 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;

(B)

provide measurable goals, including objectives, mechanisms, and a schedule, for furthering the security of commercial operations from point of origin to point of destination;

(C)

build on available resources and consider costs and benefits;

(D)

identify mandatory, baseline security goals, and the minimum container security standards and procedures described in section 6;

(E)

provide incentives for additional voluntary measures to enhance cargo security, as determined by the Secretary and under the GreenLane Program under section 10;

(F)

include a process for sharing intelligence and information with private sector stakeholders to assist in their security efforts;

(G)

identify a framework for prudent and measured response in the event of a transportation security incident involving the international supply chain;

(H)

provide a plan for the expeditious resumption of the flow of legitimate trade in accordance with paragraph (3);

(I)

focus on the secure movement of containerized cargo through the international supply chain; and

(J)

expand upon and relate to existing strategies and plans, including the National Strategy for Maritime Security.

(3)

Resumption of trade

(A)

In general

The Secretary shall develop 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 ensure trade lanes are restored as quickly as possible.

(B)

Preferences

In reestablishing the flow of cargo through ports of entry in the United States after a transportation security incident, the Secretary shall give preference to vessels—

(i)

having a vessel security plan approved or accepted under section 70103(c) of title 46, United States Code;

(ii)

entering a port of entry directly from a foreign port designated under CSI or from another foreign port, as determined by the Secretary;

(iii)

operated by validated C–TPAT participants; and

(iv)

carrying GreenLane designated cargo.

(4)

Update

Not less than 3 years after the strategic plan is submitted under paragraph (1), the Secretary shall submit an update of the strategic plan to the Committee on Homeland Security and Governmental Affairs of the Senate, the Committee on Homeland Security of the House of Representatives, the Committee on Appropriations of the Senate, and the Committee on Appropriations of the House of Representatives.

(5)

Consultations

Consultations described in paragraph (1) shall focus on—

(A)

designing measurable goals, including objectives, mechanisms, and a schedule, for furthering the security of the international supply chain;

(B)

identifying and addressing gaps in capabilities, responsibilities, or authorities;

(C)

identifying and streamlining unnecessary overlaps in capabilities, responsibilities, or authorities; and

(D)

identifying and making recommendations regarding legislative, regulatory, and organizational changes necessary to improve coordination among the entities or to enhance the security of the international supply chain.

(6)

Utilization of advisory committees

As part of the consultative process, the Secretary is encouraged to 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 update to that plan.

(7)

International standards and practices

In furtherance of the strategic plan, 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.

(b)

Improvements to Automated Targeting System

(1)

Plan

Not later than 90 days after the date of enactment of this Act, the Secretary shall develop and implement a plan for improving the Automated Targeting System for identifying high-risk containers moving through the international supply chain.

(2)

Contents

(A)

Treatment of recommendations

The Secretary shall include in the plan required under paragraph (1) a schedule for completing all outstanding corrective actions recommended by the Comptroller General of the United States, the Inspector General of the Department of the Treasury, and the Inspector General of the Department with respect to the operation of the Automated Targeting System.

(B)

Information submissions

In developing the plan under paragraph (1), the Secretary shall consider the cost, benefit, and feasibility of—

(i)

requiring additional nonmanifest documentation for each container, including purchase orders, shipper's letters of instruction, commercial invoices, letters of credit, certificates of origin, advance shipping notices, vessel stow plans, and certain container status messages, when created;

(ii)

reducing the time period allowed by law for revisions to a container cargo manifest;

(iii)

reducing the time period allowed by law for submission of entry data for vessel or cargo; and

(iv)

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.

(C)

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 submitted under paragraph (1).

(D)

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.

(3)

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, and the appropriate timing of its submission, in the plan submitted under paragraph (1).

(4)

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.

(c)

Uniform data for government-wide usage

(1)

Establishment

The Secretary, in conjunction with representatives from the Department, the Department of Transportation, the Department of Health and Human Services, the Department of Agriculture, the Department of Commerce, the Department of State, the Department of Defense, the Department of Justice, the Department of the Interior, and other appropriate Federal agencies, as determined by the Secretary, 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 (referred to in this subsection as the International Trade Data System).

(2)

Interagency steering group

The Deputy Director for Management of the Office of Management and Budget (referred to in this subsection as the Deputy Director), pursuant to responsibilities under chapter 36 of title 44, United States Code, shall establish an executive level, interdepartmental steering group (referred to in this subsection as the Interdepartmental Steering Group), comprised of representatives of the departments listed in paragraph (1), to coordinate, the establishment, investment in, and implementation of the International Trade Data System.

(3)

Implementation

Not later than 1 year after the date of enactment of this Act, the Deputy Director, through the Interdepartmental Steering Group, shall complete the development of the harmonized data set of import and export information submitted to agencies with a presence at the international border of the United States.

(4)

Private sector consultation

The Secretary and the Interdepartmental Steering Group shall consult with private sector stakeholders in developing the uniform data submission requirements, procedures, and schedules.

(5)

Joint inspections procedures

The Deputy Director, through the Interdepartmental Steering Group, shall develop plans for longer term uses of the International Trade Data System, including facilitating joint cargo inspections by multiple Federal agencies to meet their respective requirements.

5.

Office of Cargo Security Policy

(a)

Establishment

Subtitle C of title IV of the Homeland Security Act of 2002 (6 U.S.C. 231 et seq.) is amended by adding at the end the following:

431.

Office of cargo security policy

(a)

Establishment

There is established within the Department an Office of Cargo Security Policy (referred to in this section as the Office).

(b)

Purpose

The Office shall—

(1)

coordinate all Department policies and programs relating to cargo security; and

(2)

consult with stakeholders and work with other Federal agencies to establish standards and regulations and to promote best practices.

(c)

Director

(1)

Appointment

The Office shall be headed by a Director, who shall—

(A)

be appointed by the Secretary; and

(B)

report to the Assistant Secretary for Policy.

(2)

Responsibilities

The Director shall—

(A)

advise the Secretary and the Assistant Secretary for Policy regarding all aspects of Department programs relating to cargo security;

(B)

develop Department-wide policies regarding cargo security;

(C)

coordinate the cargo security policies and programs of the Department with other executive agencies; and

(D)

coordinate all programs of the Department relating to cargo security.

.

(b)

Designation of liaison office of department of state

The Secretary of State shall designate a liaison office within the Department of State to assist the Secretary, as appropriate in negotiating cargo security related international agreements; in conducting activities under this Act; and other responsibilities as assigned by the Secretary of State.

6.

Container security standards and procedures

(a)

Establishment

(1)

In general

Not later than 180 days after the date of enactment of this Act, the Secretary shall establish, by regulation, minimum standards and procedures for securing containers in transit to an importer in the United States.

(2)

Information sources

The Secretary shall use information from C–TPAT, Operation Safe Commerce, any container security program of the Directorate of Science and Technology, and other security initiatives to establish the standards and procedures described in paragraph (1). Such standards may address operation, technology use, and performance.

(3)

Deadline for enforcement

Not later than 2 years after the establishment of standards and procedures under subsection (a), 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, in accordance with section 11.

(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.

7.

Radiation detection and radiation safety

(a)

Examining containers

Not later than 1 year after the date of enactment of this Act, all containers entering the United States shall be examined for radiation.

(b)

Strategy

(1)

In general

Not later than 90 days after the date of enactment of this Act, the Secretary shall submit a strategy for the deployment of radiation detection equipment at all ports of entry to—

(A)

the Committee on Homeland Security and Governmental Affairs of the Senate;

(B)

the Committee on Appropriations of the Senate;

(C)

the Committee on Homeland Security of the House of Representatives; and

(D)

the Committee on Appropriations of the House of Representatives.

(2)

Contents

The strategy submitted under paragraph (1) shall include—

(A)

the type of equipment to be used;

(B)

standard operating procedures for examining containers with such equipment;

(C)

a plan detailing the environmental health and safety impacts of nonintrusive inspection technology;

(D)

the Department policy for the using nonintrusive inspection equipment; and

(E)

a classified annex that details plans for covert testing.

(c)

Radiation safety

Not later than 90 days after the date of enactment of this Act, the Secretary shall submit a plan, to the Committee on Homeland Security and Governmental Affairs of the Senate, the Committee on Appropriations of the Senate, the Committee on Homeland Security of the House of Representatives, and the Committee on Appropriations of the House of Representatives, that—

(1)

details the health and safety impacts of nonintrusive inspection technology; and

(2)

describes the policy of the Bureau of Customs and Border Protection for using nonintrusive inspection equipment.

8.

Container Security Initiative

(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 coordination with the Secretary of State and other Federal officials, as appropriate, shall conduct an assessment of the port to evaluate costs, benefits, and other factors associated with designation, including—

(1)

the level of risk for the potential compromise of containers by terrorists or terrorist weapons;

(2)

the economic impact of cargo traveling from the foreign port in terms of trade value and volume;

(3)

the results of the Coast Guard assessments conducted pursuant to section 70108 of title 46, United States Code;

(4)

the capabilities and level of cooperation expected of the intended host country;

(5)

the potential for validation of security practices by the Department, directly or through certified third parties within the country in which the foreign port is located;

(6)

the potential for amending trade agreements to reflect participation in CSI; and

(7)

the potential for C–TPAT and GreenLane cargo traveling from the foreign port.

(c)

Annual report

Not later than March 1 of each year in which the Secretary proposes to designate a foreign port under CSI, the Secretary shall submit a report, in classified or unclassified form, detailing the assessment of each foreign port the Secretary is considering designating under CSI, to—

(1)

the Committee on Homeland Security and Governmental Affairs of the Senate;

(2)

the Committee on Appropriations of the Senate;

(3)

the Committee on Homeland Security of the House of Representatives; and

(4)

the Committee on Appropriations of the House of Representatives.

(d)

Current CSI ports

The report under subsection (c) shall include an annual assessment justifying the continuance of each port designated under CSI as of the date of enactment of this Act.

(e)

Designation of new ports

The Secretary shall not designate a foreign port under CSI unless the Secretary has completed the assessment required in subsection (b) for that port and submitted a report under subsection (c) that includes that port.

(f)

Negotiations

The Secretary of State, in conjunction with the United States Trade Representative, shall enter into trade negotiations with the government of each foreign country with a port designated under CSI, as appropriate, to ensure full compliance with the requirements under CSI.

(g)

Inspections

(1)

Requirements and procedures

The Secretary shall—

(A)

establish technical capability requirements and standard operating procedures for the use of nonintrusive inspection and radiation detection equipment in conjunction with CSI;

(B)

require each port designated under CSI to operate the equipment in accordance with the requirements and procedures established under subparagraph (A); and

(C)

continually monitor the technologies, processes, and techniques used to inspect cargo at ports designated under CSI.

(2)

Foreign assistance

(A)

In general

The Secretary, in coordination with the Secretary of State, the Secretary of Energy, and 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 may lease or loan nonintrusive inspection and radiation detection equipment for containers to the government of a foreign country for use in ports participating in CSI.

(C)

Training

The Secretary may provide training on the use of equipment to foreign personnel at each port designated under CSI.

(h)

Personnel

The Secretary shall—

(1)

annually assess the personnel needs at each port designated under CSI;

(2)

deploy personnel in accordance with the assessment under paragraph (1); and

(3)

consider the potential for remote targeting in decreasing the number of personnel.

9.

Customs-Trade Partnership Against Terrorism

(a)

In general

(1)

Authorization

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.

(2)

Correction of deficiencies

The Secretary shall correct the deficiencies of the C–TPAT program that were identified in the Government Accountability Office report entitled CARGO SECURITY: Partnership Program Grants Importers Reduced Scrutiny with Limited Assurance of Improved Security (GAO–05–404).

(3)

Minimum requirements

The Secretary shall promulgate regulations that describe the minimum requirements, program tiers, and program benefits of C–TPAT.

(b)

Participation

Importers, brokers, 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.

(c)

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.

(d)

Certification

(1)

Guidelines

Not later than 180 days after the date of enactment of this Act, the Secretary shall update guidelines for certifying a participant’s security measures and supply chain security practices.

(2)

Tier one 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 paragraph (1). Such benefits may not include reduced scores in the Automated Targeting System.

(e)

Validation

(1)

In general

Not later than 1 year after a participant has been certified under subsection (d)(1), the Secretary shall validate, directly or through certified third parties, the security measures and supply chain security practices of that participant. Such validation shall include a visit to foreign locations utilized by the C–TPAT participant as part of the supply chain.

(2)

Guidelines

Not later than 180 days after the date of enactment of this Act, the Secretary shall update guidelines for validating a participant’s security measures and supply chain security practices.

(3)

Consequences for failed validation

If a C–TPAT participant’s security measures and supply chain security practices fail to meet validation requirements—

(A)

the participant may not receive the benefits of validation; and

(B)

the Commissioner of the Bureau of Customs and Border Protection may deny the participant all benefits under C–TPAT.

(4)

Right of appeal

A C–TPAT participant described under paragraph (3) may—

(A)

file an appeal with the Secretary of the Commissioner’s decision under paragraph (3)(B) to deny benefits under C–TPAT; and

(B)

request revalidation.

(5)

Tier two benefits

The Secretary shall extend benefits to each participant who has been validated under this subsection, which may include—

(A)

reduced searches;

(B)

priority processing for searches; and

(C)

reduced scores in the Automated Targeting System.

(f)

Revalidation

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

10.

GreenLane designation

(a)

Establishment

The Secretary shall establish a third tier of C–TPAT (referred to in this section as the GreenLane) that offers additional benefits to validated C–TPAT participants that demonstrate a sustained commitment beyond the minimum requirements for participation in C–TPAT.

(b)

Basic requirements

Designated GreenLane participants shall ensure that—

(1)

entry data is submitted on shipments before loading;

(2)

cargo is loaded at a port designated under CSI, or other foreign port as determined by the Secretary, for transit to the United States;

(3)

cargo is loaded on a vessel with a vessel security plan approved or accepted under section 70103(c) of title 46, United States Code;

(4)

cargo is made available for screening and examination before loading using technologies, processes or techniques, as determined by the Secretary;

(5)

the supply chain visibility procedures established by the Secretary are utilized;

(6)

container security devices meeting the standards and procedures established by the Secretary are utilized;

(7)

cargo complies with additional security criteria established by the Secretary beyond the minimum requirements for C–TPAT participation under section 9(c), particularly in the area of access controls; and

(8)

cargo complies with any other requirements determined by the Secretary.

(c)

Containers transhipped through Canada or Mexico under GreenLane

Containers entering the United States under GreenLane at a land border port of entry shall undergo the equivalent, appropriate level of inspection and screening for potential compromise by terrorists or terrorist weapons as containers arriving at a United States port of entry from a foreign port.

(d)

Consequences for lack of compliance

(1)

In general

Any participant whose security measures and supply chain security practices have been found by the Secretary to be out of compliance with any requirements of the GreenLane program shall be denied all benefits under GreenLane.

(2)

Right of appeal

GreenLane participants under paragraph (1) shall have the right to appeal denial of benefits decisions to the Secretary and request redesignation under GreenLane.

(e)

Non-containerized cargo

The Secretary may consider the potential for participation in the GreenLane Program by importers of non-containerized cargoes that otherwise meet the requirements under this section.

(f)

Overseas screening and examinations

Not later than 180 days after the date of enactment of this Act, the Secretary shall submit a strategy for screening and examining GreenLane containers overseas before they are loaded on to vessels destined for the United States to—

(1)

the Committee on Homeland Security and Governmental Affairs of the Senate;

(2)

the Committee on Appropriations of the Senate;

(3)

the Committee on Homeland Security of the House of Representatives; and

(4)

the Committee on Appropriations of the House of Representatives.

(g)

Rulemaking

(1)

In general

Not later than 1 year after the date of enactment of this Act, the Secretary, in consultation with private sector stakeholders, shall promulgate regulations that establish—

(A)

requirements for supply chain visibility procedures;

(B)

performance standards for container security devices and protocols for their use;

(C)

procedures for overseas screening and examination of GreenLane containers; and

(D)

any other GreenLane Program requirements that the Secretary considers appropriate, including requirements building upon security measures and supply chain security best practices contained in the C–TPAT minimum requirements set forth in section 9(c).

(2)

Benefits

Not later than 2 years after the date of enactment of this Act, the Secretary, in consultation with the Commercial Operations Advisory Committee, shall promulgate regulations providing benefits for participation in the GreenLane Program, which may include—

(A)

the expedited release of GreenLane cargo into destination ports within the United States during all threat levels designated by the Secretary or the Commandant of the Coast Guard;

(B)

reduced or eliminated bonding requirements for GreenLane cargo;

(C)

preference to vessels (as described in section 4(e)(B));

(D)

further reduced searches;

(E)

priority processing for searches;

(F)

further reduced scores in the Automated Targeting System; and

(G)

streamlined billing of any customs duties or fees.

11.

Joint operations center

(a)

Establishment

Not later than 3 years after the date of enactment of this Act, the Secretary shall establish joint operation centers for maritime and cargo security 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)

Organization

At a minimum, a joint operations center shall be colocated with the command center for each Coast Guard sector. If a particular port is covered by a command center that is not located at that port, the Secretary shall consider virtual connectivity to maintain awareness of activities of that port and to provide other agency participation in accordance with subsection (c).

(c)

Participation

The following entities shall participate in each joint operations center for maritime and cargo security:

(1)

The United States Coast Guard.

(2)

The Bureau of Customs and Border Protection.

(3)

The Bureau of Immigration and Customs Enforcement.

(4)

The Department of Defense, as appropriate.

(5)

The Federal Bureau of Investigation.

(6)

Other Federal agencies with a presence at a particular port, as appropriate, or as otherwise selected by the Secretary.

(7)

State, local, and international law enforcement and first responder agencies responsible for the port, as appropriate, or as otherwise selected by the Secretary.

(8)

Port authority representatives, maritime exchanges, private sector stakeholders, and other entities subject to an Area Maritime Security Plan, as selected by the Secretary.

(d)

Responsibilities

Each joint operations center for maritime and cargo security shall—

(1)

assist, as appropriate, in the implementation of maritime transportation security plans developed under section 70103 of title 46, United States Code;

(2)

implement the transportation security incident response plans required under section 70104 of such title;

(3)

carry out information sharing activities consistent with those 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 of such title 46, United States Code; and

(5)

carry out such other responsibilities as determined by the Secretary.

(e)

Security clearances

The Secretary shall sponsor and expedite individuals participating in the joint operations centers 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 each joint operations center for maritime security shall act as the incident commander, unless otherwise directed under the National Response Plan.

(g)

Implementation

(1)

In general

Not later than 180 days after the date of enactment of this Act, the Secretary shall submit an implementation plan for this section to—

(A)

the Committee on Homeland Security and Governmental Affairs of the Senate;

(B)

the Committee on Appropriations of the Senate;

(C)

the Committee on Homeland Security of the House of Representatives; and

(D)

the Committee on Appropriations of the House of Representatives.

(2)

Contents

The report submitted under paragraph (1) shall describe, for each joint operations center—

(A)

the location;

(B)

the specific participating entities;

(C)

the implementation costs; and

(D)

the necessary resources for operation and maintenance, including the cost-sharing requirements for other agencies and participants.

12.

Research, development, test, and evaluation

(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, acting through the Undersecretary for Science and Technology, in consultation with the Assistant Secretary for Policy, the Director of Cargo Security Policy, and the Chief Financial Officer, 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, as appropriate.

(c)

Operation safe commerce

(1)

In general

Not later than 1 year after the date of enactment of this Act, the Secretary shall initiate grant projects, as part of Operation Safe Commerce, that—

(A)

integrate nonintrusive inspection and radiation detection equipment with automatic identification methods for containers, vessels, and vehicles;

(B)

test physical access control protocols and technologies;

(C)

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

(D)

otherwise further maritime and cargo security, as determined by the Secretary.

(2)

Supply chain security for special container and noncontainerized cargo

The Secretary shall consider demonstration projects that further the security of the international supply chain for special container cargo, including refrigerated containers, and noncontainerized cargo, including roll-on/roll-off, break-bulk, liquid, and dry bulk cargo.

(3)

Annual report

Not later than March 1 of each year, the Secretary shall submit a report detailing the results of Operation Safe Commerce to—

(A)

the Committee on Homeland Security and Governmental Affairs of the Senate;

(B)

the Committee on Homeland Security of the House of Representatives;

(C)

the Committee on Appropriations of the Senate; and

(D)

the Committee on Appropriations of the House of Representatives.

(d)

GreenLane technology

The Secretary shall, not less frequently than once every 2 years—

(1)

review the technology requirements and standards established under section 10; and

(2)

test future supply chain visibility procedures, container security devices, and other systems as they become commercially available to track and secure containers and the smallest exterior packaging units loaded into containers.

13.

Port Security Grant Program

(a)

Grants authorized

The Secretary, acting through the Office for Domestic Preparedness, shall establish a grant program to fairly and equitably allocate Federal financial assistance—

(1)

to help implement Area Maritime Transportation Security plans required under section 70103(b) of title 46, United States Code;

(2)

to correct port security vulnerabilities identified through vulnerability assessments approved by the Secretary; or

(3)

to non-Federal projects contributing to the overall security of an individual port or the system of ports in the United States, as determined by the Secretary.

(b)

Grantee selection

In awarding grants under this Act, the Secretary shall—

(1)

take into account national economic and strategic defense considerations of individual ports;

(2)

strongly encourage efforts to promote—

(A)

integration of port-wide security, including supply chain initiatives;

(B)

information and intelligence sharing; and

(C)

joint efforts, such as joint operations centers, among all port stakeholders; and

(3)

consider funding major projects in phases over multiple years.

(c)

Multiple phase projects

(1)

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.

(2)

Priority

In determining grant recipients under this section, the Secretary may give preference to continuing to fund multiyear projects that have previously received funding under this section.

(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 correct port security vulnerabilities identified through vulnerability assessments approved by the Secretary;

(3)

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 Security Plan for a port area if—

(A)

the Secretary increases the threat level under the Homeland Security Advisory System to Code Orange or Code Red;

(B)

the Commandant of the Coast Guard raises the Maritime Security level to MARSEC Level 2 or 3; or

(C)

the Secretary otherwise authorizes such costs;

(4)

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 Security Plan if the need is based upon vulnerability assessments approved by the Secretary or identified in the Area Maritime Security Plan;

(5)

to develop joint operations centers, as described under section 10, that bring together Federal, State, and local officials and stakeholders into a common operation center that is focused on area maritime and cargo security;

(6)

to conduct vulnerability assessments approved by the Secretary; and

(7)

to conduct port-wide exercises to strengthen emergency preparedness of Federal, State, 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)

construct buildings or other physical facilities, except those otherwise authorized under section 611 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.), including those facilities in support of subsection (d)(5), and specifically approved by the Secretary; or

(2)

acquire land, unless such use is specifically approved by the Secretary in support of subsection (d)(5).

(f)

Matching requirements

Except as provided in paragraph (2), Federal funds for any eligible project under this section shall be determined by the Secretary.

(g)

Application

(1)

In general

Any entity subject to an Area Maritime Transportation Security Plan 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, working through the Office for Domestic Preparedness, may require.

(2)

Minimum standards for payment or reimbursement

Each application submitted under paragraph (1) shall include—

(A)

a comprehensive description of—

(i)

the need for the project;

(ii)

the methodology for coordinating the project into the security of the greater port area, as identified in the Area Maritime Security Plan;

(iii)

any existing cooperation agreements with other port facilities, vessels, or organizations that benefit security of the entire port; and

(iv)

the applicability of the project to the Area Maritime Transportation Security Plan; and

(B)

a determination by the Captain of the Port that the security project—

(i)

addresses or corrects port security vulnerabilities identified by the Coast Guard, or through port security vulnerability assessments approved by the Secretary; 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, 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.

(4)

Project approval required

The Secretary may not award a grant under this section unless the Secretary determines that—

(A)

the project to be carried out with such grant funding—

(i)

is consistent with vulnerability assessments approved by the Secretary;

(ii)

supports cooperation or integration of Federal, State, local, and industry stakeholders in the port area; and

(iii)

helps to implement the Area Maritime Transportation Security Plan;

(B)

sufficient funding is available to meet the matching requirement described under subsection (d);

(C)

the project will be completed without unreasonable delay; and

(D)

the recipient has authority to carry out the proposed project.

(h)

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 port and port facilities with respect to projects funded under this section.

(i)

Audits and examinations

All grantees under this section shall 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.

(j)

Annual reports

Not later than 1 year after the date of enactment of this Act, and annually thereafter until October 1, 2013, the Secretary shall submit an unclassified report describing regarding the progress made in meeting the objectives of the port security grant program established under this section to—

(1)

the Committee on Homeland Security and Governmental Affairs of the Senate;

(2)

the Committee on Homeland Security of the House of Representatives;

(3)

the Committee on Appropriations of the Senate; and

(4)

the Committee on Appropriations of the House of Representatives.

14.

Authorization of appropriations

(a)

Improvements to automated targeting system

There are authorized to be appropriated $5,000,000 for each of the fiscal years 2007 through 2012 to carry out the provisions of section 4(b).

(b)

Office of cargo security policy

There are authorized to be appropriated for each of the fiscal years 2007 through 2012—

(1)

$4,000,000 to carry out the amendment made by section 5(a); and

(2)

$1,000,000 to carry out the provisions of section 5(b).

(c)

Container security initiative

There are authorized to be appropriated $175,000,000 for each of the fiscal years 2007 through 2012 to carry out the provisions of section 8.

(d)

Customs-trade partnership against terrorism

There are authorized to be appropriated $75,000,000 for each of the fiscal years 2007 through 2012 to carry out the provisions of section 9.

(e)

GreenLane designation

There are authorized to be appropriated $50,000,000 for each of the fiscal years 2007 through 2012 to carry out the provisions of section 10.

(f)

Incident response

(1)

In general

There are authorized to be appropriated $100,000,000 for each of the fiscal years 2007 through 2012 to carry out the provisions of section 11.

(2)

Budget analysis

Not later than 180 days after the date of enactment of this Act, the Secretary shall submit a budget analysis for implementing the provisions of section 11, including additional cost-sharing arrangements with other Federal departments and other participants involved in the joint operation centers, to—

(A)

the Committee on Homeland Security and Governmental Affairs of the Senate;

(B)

the Committee on Appropriations of the Senate;

(C)

the Committee on Homeland Security of the House of Representatives; and

(D)

the Committee on Appropriations of the House of Representatives.

(g)

Operation Safe Commerce

There are authorized to be appropriated $25,000,000 for each of fiscal years 2007 through 2012 to carry out the provisions of section 12(c).

(h)

Port Security Grant Program

There are authorized to be appropriated $400,000,000 for each of fiscal years 2007 through 2012 to carry out the grant program established under section 13.

(i)

Other provisions

There are authorized to be appropriated such sums as may be necessary for each of fiscal years 2007 through 2012 to carry out the provisions of this Act not otherwise provided for under this section.

(j)

Source of funds

Amounts authorized to be appropriated under this section shall originate from duties collected by the Bureau of Customs and Border Protection.

November 16, 2005

Read the second time and placed on the calendar