< Back to S. 2459 (109th Congress, 2005–2006)

Text of the GreenLane Maritime Cargo Security Act

This bill was introduced on May 2, 2006, in a previous session of Congress, but was not enacted. The text of the bill below is as of May 5, 2006 (Reported by Senate Committee).

Source: GPO

II

Calendar No. 424

109th CONGRESS

2d Session

S. 2459

IN THE SENATE OF THE UNITED STATES

March 27, 2006

(for herself, Mrs. Murray, Mr. Coleman, Mr. Lieberman, Mr. DeWine, Mr. Salazar, and Mr. Santorum) introduced the following bill; which was read twice and referred to the Committee on Homeland Security and Governmental Affairs

May 5, 2006

Reported by , with an amendment

Strike out all after the enacting clause and insert the part printed in italic

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. Under Secretary for 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.

Under Secretary for Policy

(a)

Under Secretary for policy

The Homeland Security Act of 2002 (6 U.S.C. 101 et seq.) is amended—

(1)

by redesignating title VI and section 601 as title XVIII and section 1801, respectively, and transferring that title to the end of the Act; and

(2)

by inserting after title V the following:

VI

Under Secretary for Policy

601.

Under secretary for policy

(a)

In general

There shall be in the Department an Under Secretary for Policy, who shall be appointed by the President, by and with the advice and consent of the Senate.

(b)

Responsibilities

Subject to the direction, authority, and control of the Secretary, the responsibilities of the Under Secretary for Policy shall be as follows:

(1)

Policy

(A)

To serve as the principal policy advisor to the Secretary.

(B)

To provide overall direction and supervision for policy development to programs, offices, and activities of the Department.

(C)

To establish and direct a formal policymaking process for the Department.

(D)

To analyze, evaluate, and review completed, ongoing, and proposed programs, to ensure they are compatible with the Secretary's priorities, strategic plans, and policies.

(2)

Strategic planning

(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.

(D)

To conduct reviews of the Department to ensure the implementation of this paragraph.

(3)

International responsibilities

(A)

To promote informational and educational exchange with nations friendly to the United States in order to promote sharing of best practices and technologies relating to homeland security, including—

(i)

the exchange of information on research and development on homeland security technologies;

(ii)

joint training exercises of first responders; and

(iii)

exchanging expertise and information on terrorism prevention, response, and crisis management.

(B)

To identify areas for homeland security informational and training exchange where the United States has a demonstrated weakness and another friendly nation or nations have a demonstrated expertise.

(C)

To plan and undertake international conferences, exchange programs (including the exchange of scientists, engineers, and other experts), and other training activities.

(D)

To manage international activities within the Department in coordination with other Federal officials with responsibility for counterterrorism matters.

(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 American homeland.

(B)

To advise the Secretary on the impact of the policies, regulations, processes, and actions of the Department on the private sector.

(C)

To interface with other relevant Federal agencies with homeland security missions to assess the impact of the actions of such agencies on the private sector.

(D)

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.

(E)

To work with Federal laboratories, federally funded research and development centers, other federally funded organizations, academia, and the private sector to develop innovative approaches to address homeland security challenges to produce and deploy the best available technologies for homeland security missions.

(F)

To promote existing public-private partnerships and develop new public-private partnerships to provide for collaboration and mutual support to address homeland security challenges.

(G)

To assist in the development and promotion of private sector best practices to secure critical infrastructure.

(H)

To coordinate industry efforts, with respect to functions of the Department, to identify private sector resources and capabilities that could be effective in supplementing Federal, State, and local government agency efforts to prevent or respond to a terrorist attack.

(I)

To coordinate among Department operating entities and with the Assistant Secretary for Trade Development of the Department of Commerce on issues related to the travel and tourism industries.

.

(b)

Technical and conforming amendments

The Homeland Security Act of 2002 (6 U.S.C. 101 et seq.) is amended—

(1)

in section 103—

(A)

by redesignating paragraphs (6) through (10) as paragraphs (7) through (11), respectively; and

(B)

by inserting after paragraph (5) the following:

(6)

An Under Secretary for Policy.

;

(2)

by striking section 879; and

(3)

in the table of contents—

(A)

by redesignating the items relating to title VI and section 601 as items relating to title XVIII and section 1801, respectively, and transferring the items relating to that title and section to the end of the table of contents;

(B)

by striking the item relating to section 879; and

(C)

by inserting before the item relating to title VII the following:

TITLE VI—UNDER SECRETARY FOR POLICY

Sec. 601. Under Secretary for Policy.

.

(c)

Office of Cargo Security Policy

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 Under Secretary for Policy.

(2)

Responsibilities

The Director shall—

(A)

advise the Secretary and the Under 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.

.

(d)

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)

Reauthorization of Homeland Security Science and Technology Advisory Committee

(1)

In general

Section 311(j) of the Homeland Security Act of 2002 (6 U.S.C. 191(j)) is amended by striking 3 years after the effective date of this Act and inserting on December 31, 2008.

(2)

Effective date and application

The amendment made by paragraph (1) shall be effective as if enacted on the date of enactment of the Homeland Security Act of 2002.

(3)

Advisory committee

The Under Secretary for Science and Technology shall utilize the Homeland Security Science and Technology Advisory Committee, as appropriate, to provide outside expertise in advancing cargo security technology.

(b)

Duties of secretary

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.

(c)

Coordination

The Secretary, acting through the Under Secretary for Science and Technology, in consultation with the Under 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.

(d)

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.

(e)

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.

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. Strategic plan.

Sec. 5. Resumption of trade.

Sec. 6. Enhancement to targeting capabilities.

Sec. 7. Uniform data for governmentwide usage.

Sec. 8. Under Secretary for Policy.

Sec. 9. Container security standards and procedures.

Sec. 10. Domestic radiation detection and imaging.

Sec. 11. Container Security Initiative.

Sec. 12. Customs-Trade Partnership Against Terrorism.

Sec. 13. GreenLane designation.

Sec. 14. Joint operations center.

Sec. 15. Research, development, test, and evaluation.

Sec. 16. Port Security Grant Program.

Sec. 17. Deadline for transportation security cards.

Sec. 18. 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 2005, approximately 11,300,000 shipping containers came into the United States through the Nation's seaports, averaging nearly 31,000 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.

(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 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. Many experts believe that 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.

(6)

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.

(7)

The March 2006 report of the Permanent Subcommittee on Investigations of the Committee on Homeland Security and Governmental Affairs of the Senate entitled, “An Assessment of U.S. Efforts to Secure the Global Supply Chain,” noted several key concerns with the Department’s supply chain security programs, including the following:

(A)

In the Container Security Initiative (CSI), a critical program designed to inspect high-risk shipping containers before they enter United States ports, the Subcommittee found that only 37 percent of such high-risk containers are actually inspected. To make matters worse, the United States Government has not established minimum standards for these inspections.

(B)

Under the Customs-Trade Partnership Against Terrorism (C–TPAT), the United States Government grants benefits to private-sector companies that make specific security commitments. The Subcommittee found, however, that an overwhelming proportion of participating companies receive benefits prior to having their security profile validated. Only 27 percent of the participating companies had been validated as of March 28, 2006. Therefore, 73 percent of the companies have not been subjected to a rigorous, on-site review of their security practices.

(C)

The targeting system employed by the United States Government to identify high-risk shipping containers entering United States ports is largely dependent on preliminary data that is not complete or final. Moreover, the Subcommittee has found that this targeting system has never been tested or validated, and may not discern actual, realistic risks.

(D)

Less than 40 percent of cargo containers entering United States ports are screened for nuclear or radiological materials. One part of the problem is that the deployment of radiation detection equipment is woefully behind schedule.

(8)

The Department of Homeland Security has twice failed to comply with directives from the Subcommittee on Homeland Security of the Committee on Appropriations of the Senate, requiring the Department to submit a report to Congress, which identifies: (1) steps the Department has taken to enhance shipping container security; (2) resources devoted to this in prior years and proposed to continue this security; (3) results of ongoing projects such as OSC, CSI, and C-TPAT; (4) the Departmental entity responsible for implementing improvements in security systems and approaches; and (5) specific steps each entity will take to implement these changes, with associated schedules for development and issuance of standards, policies, procedures, or regulations..

(9)

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.

(10)

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.

(11)

The shipping and trade industries have 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.

(12)

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.

(13)

The special relationship between Canada and the United States has been exemplified through Canada's partnership and commitment to security following the attacks of September 11, 2001.

(14)

Through both public and private initiatives, the private sector has invested time, money and effort, both in the United States and abroad, aimed at improving the security of the international supply chain.

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)

Automated Targeting System

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

(3)

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).

(4)

Container security device

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

(5)

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.

(6)

Customs-Trade Partnership Against Terrorism; C–TPAT

The terms Customs-Trade Partnership Against Terrorism and C–TPAT mean the voluntary program authorized under section 12 to strengthen and improve the overall security of the international supply chain and United States border security.

(7)

Department

The term Department means the Department of Homeland Security.

(8)

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.

(9)

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.

(10)

Inspection

The term inspection means the process used by United States Customs and Border Protection to detect restricted or prohibited items through an examination or a search.

(11)

International supply chain

The term international supply chain means the coordinated network of companies engaged in the movement of goods from a point of origin to a foreign point of destination.

(12)

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.

(13)

Point of origin

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

(14)

Scan

The term scan means utilizing nonintrusive imaging equipment, radiation detection equipment, or both, to capture data, including images of a container.

(15)

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.

(16)

Search

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

(17)

Secretary

The term Secretary means the Secretary of Homeland Security.

(18)

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).

(19)

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, as described on a shipping manifest, from their point of origin to the point of unlading in the United States.

(20)

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.

Strategic plan

(a)

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, public port authorities, and private sector stakeholders responsible for security matters that affect or relate to the movement of containers through the international supply chain, shall submit, to appropriate congressional committees, 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.

(b)

Content

The strategic plan submitted under subsection (a) shall—

(1)

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 arriving in, departing from, or moving through seaports of the United States;

(2)

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

(3)

build on available resources and consider costs and benefits;

(4)

identify mandatory, baseline security goals, and the minimum container security standards and procedures described in section 9;

(5)

provide incentives for additional voluntary measures to enhance cargo security, as determined by the Secretary and under the GreenLane Program under section 13;

(6)

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

(7)

identify a framework for prudent and measured response in the event of a transportation security incident in a United States seaport;

(8)

provide a plan for the expeditious resumption of the flow of legitimate trade in accordance with section 5;

(9)

focus on the secure movement of containerized cargo;

(10)

consider the linkages between supply chain security and security programs within other systems of movement, including travel security and terrorist financing programs;

(11)

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

(12)

ensure that supply chain security mandates and voluntary programs, to the extent practicable, provide even-handed treatment for affected parties of the same type, regardless of the size of the particular business.

(c)

Update

Not less than 3 years after the strategic plan is submitted under subsection (a), the Secretary shall submit an update of the strategic plan to appropriate congressional committees.

(d)

Consultations

Consultations described in subsection (a) shall focus on—

(1)

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

(2)

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

(3)

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

(4)

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.

(e)

Utilization of advisory committees

As part of the consultative process, the Secretary shall utilize the Homeland Security Advisory Committee, the National Maritime Security Advisory Committee, and the Commercial Operations Advisory Committee to review the draft strategic plan and any subsequent update to that plan.

(f)

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, as appropriate, the International Maritime Organization, the World Customs Organization, the International Labor Organization, and the International Organization for Standardization to establish standards and best practices for the security of containers moving through the international supply chain.

5.

Resumption of trade

(a)

In general

The Secretary shall develop protocols for the resumption of trade through contingency and continuity planning that ensure trade lanes are restored as quickly as possible in the event of a transportation security incident that necessitates the suspension of trade.

(b)

Preferences

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

(1)

having a vessel security plan approved or accepted 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)

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

(3)

operated by validated C–TPAT participants;

(4)

carrying GreenLane designated cargo; and

(5)

carrying commodities that the President determines to be critical for response and recovery, such as military shipments or necessary medical supplies.

(c)

Communication

To the extent practicable, the protocols developed under subsection (a) shall provide for coordination with, and lines of communication between, appropriate Federal, State, local and private sector stakeholders on law enforcement actions, intermodal rerouting plans, and other strategic infrastructure issues.

(d)

Consultation

In developing protocols under subsection (a), the Secretary shall consult with Federal, State, local and private sector stakeholders, including the National Maritime Security Advisory Committee and the Commercial Operations Advisory Committee.

6.

Enhancement to targeting capabilities

(a)

Plan for improving the Automated Targeting System

(1)

Development and implementation

Not later than 180 days after the date of enactment of this Act, the Secretary shall develop and implement a plan for improving the Automated Targeting System in accordance with this subsection.

(2)

Corrective actions

The Secretary shall include—

(A)

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; or

(B)

an explanation for not taking corrective actions.

(3)

Assessment of information submission requirements

In determining the viability of additional information submission requirements, either by regulation or voluntary means, the Secretary shall consider the cost, benefit, and feasibility of—

(A)

requiring additional nonmanifest documentation;

(B)

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

(C)

reducing the time period allowed by law for submission of entry data, or certain elements of such 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.

(4)

Consultations

In assessing information submission requirements, the Secretary shall consult with stakeholders, including the Commercial Operations Advisory Committee, and identify to them the need for such information, and the appropriate timing of its submission.

(5)

Outside review

The Secretary shall conduct, through an independent panel, a review of the effectiveness and capabilities of the Automated Targeting System and shall include the results of such review in the report submitted under paragraph (6).

(6)

Report

The Secretary shall submit a report, containing the plan developed under paragraph (1) and the results of the review conducted under paragraph (5), to appropriate congressional committees.

(b)

New or expanded information submissions

(1)

In general

Any additional information submissions allowable within the Secretary’s existing authority or submitted voluntarily by supply chain participants shall be transmitted in a secure fashion, as determined by the Secretary and in accordance with this subsection, to protect the information from unauthorized access.

(2)

Confidentiality of information

Notwithstanding any other provision of law, information that is required of, or voluntarily submitted by, supply chain participants to the Department for purposes of this section—

(A)

shall be exempt from disclosure under section 552 of title 5, United States Code (commonly referred to as the Freedom of Information Act);

(B)

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

(C)

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—

(i)

in furtherance of an investigation or other prosecution of a criminal act; or

(ii)

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.

(3)

Independently obtained information

Nothing in this subsection 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.

(4)

Penalties

Any person who is an officer or employee of the United States and 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—

(A)

fined under title 18, United States Code, imprisoned not more than 1 year, or both; and

(B)

removed from office or employment.

(5)

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 under this paragraph, the Secretary shall take appropriate actions to protect from disclosure—

(A)

the source of any voluntarily submitted supply chain security information that forms the basis for the warning; and

(B)

information that is proprietary, business sensitive, relates specifically to the submitting person or entity, or is otherwise not appropriately in the public domain.

(c)

Next generation targeting system

(1)

In general

The Secretary shall consider future iterations of the Automated Targeting System, which would incorporate smart features, such as more rigorous algorithms and real-time intelligence, instead of relying solely on rule sets that are periodically updated.

(2)

Cooperation

The Secretary shall work closely with supply chain participants and foreign governments, to the maximum extent practicable, in developing the next generation targeting system.

(3)

Secure freight

To implement the next generation targeting system, the Secretary is authorized to initiate the Secure Freight Program to improve the data collection process by using alternative methods including third parties to capture, collect, and transmit data related to the movement of goods through the international supply chain.

(4)

Report

Not later than 30 days before the initiation of the Secure Freight Program in a pilot phase, the Secretary shall submit a report, to appropriate congressional committees, that contains a plan for the next generation targeting system, including a schedule and concept of operations for initial and full operating capability.

7.

Uniform data for governmentwide usage

(a)

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).

(b)

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, interagency steering group (referred to in this subsection as the Interagency 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.

(c)

Harmonized data set

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

(d)

Implementation

(1)

In general

The Secretary and the Interagency Steering Group, in consultation with private sector stakeholders, including the Commercial Operations Advisory Committee, shall develop the uniform data submission requirements, procedures, and schedules for implementation.

(2)

Considerations

In developing the submission requirements, procedures and schedules, the Secretary shall consider—

(A)

the unique features of each mode of transportation by which goods may be traveling;

(B)

the appropriate timing for submission of data during the importation or exportation process; and

(C)

the appropriate party engaged in a particular transaction to submit the data.

(e)

Joint inspections procedures

The Deputy Director, through the Interagency 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 in a more efficient manner.

8.

Under Secretary for Policy

(a)

Under Secretary for Policy

The Homeland Security Act of 2002 (6 U.S.C. 101 et seq.) is amended—

(1)

by redesignating title VI as title XVIII, and transferring that title to the end of the Act;

(2)

in title XVIII, as redesignated, by redesignating section 601 as section 1801; and

(3)

by inserting after title V the following:

VI

Under Secretary for Policy

601.

Under secretary for policy

(a)

In general

There shall be in the Department an Under Secretary for Policy, who shall be appointed by the President, by and with the advice and consent of the Senate.

(b)

Responsibilities

Subject to the direction, authority, and control of the Secretary, the Under Secretary for Policy shall be responsible for—

(1)

policy development within the Department, by—

(A)

serving as the principal policy advisor to the Secretary;

(B)

providing overall direction and supervision for policy development to programs, offices, and activities of the Department;

(C)

establishing and directing a formal policymaking process for the Department;

(D)

analyzing, evaluating, and reviewing completed, ongoing, and proposed programs, to ensure they are compatible with the statutory and regulatory responsibilities of the Department and with the Secretary's priorities, strategic plans, and policies; and

(E)

ensuring, in conjunction with other Department officials, that the budget of the Department (including the development of future year budgets) is compatible with the statutory and regulatory responsibilities of the Department and with the Secretary’s priorities, strategic plans, and policies;

(2)

strategic planning for the Department, by—

(A)

conducting long-range, strategic planning for the Department;

(B)

preparing national and Department strategies, as appropriate;

(C)

conducting net assessments of issues facing the Department; and

(D)

conducting reviews of the Department to ensure the implementation of this paragraph;

(3)

international issues of the Department, by—

(A)

promoting informational and educational exchange with nations friendly to the United States in order to promote sharing of best practices and technologies relating to homeland security, including—

(i)

the exchange of information on research and development on homeland security technologies;

(ii)

joint training exercises of first responders; and

(iii)

exchanging expertise and information on terrorism prevention, response, and crisis management;

(B)

identifying areas for homeland security informational and training exchange where the United States has a demonstrated weakness and another friendly nation or nations have a demonstrated expertise;

(C)

planning and carrying out international conferences, exchange programs (including the exchange of scientists, engineers, and other experts), and other training activities; and

(D)

managing international activities within the Department in coordination with other Federal officials with responsibility for counterterrorism matters; and

(4)

private sector coordination, by—

(A)

creating and fostering strategic communications with the private sector to enhance the primary mission of the Department to protect the United States;

(B)

advising the Secretary on the impact of the policies, regulations, processes, and actions of the Department on the private sector;

(C)

interfacing with other relevant Federal agencies with homeland security missions to assess the impact of the actions of such agencies on the private sector;

(D)

creating and managing 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.

(E)

working with Federal laboratories, federally funded research and development centers, other federally funded organizations, academia, and the private sector to develop innovative approaches to address homeland security challenges to produce and deploy the best available technologies for homeland security missions;

(F)

promoting existing public-private partnerships and develop new public-private partnerships to provide for collaboration and mutual support to address homeland security challenges;

(G)

assisting in the development and promotion of private sector best practices to secure critical infrastructure;

(H)

coordinating industry efforts, with respect to functions of the Department, to identify private sector resources and capabilities that could be effective in supplementing Federal, State, and local government agency efforts to prevent or respond to a terrorist attack; and

(I)

coordinating among Department operating entities and with the Assistant Secretary for Trade Development of the Department of Commerce on issues related to the travel and tourism industries.

.

(b)

Technical and conforming amendments

The Homeland Security Act of 2002 (6 U.S.C. 101 et seq.) is amended—

(1)

in section 103—

(A)

by redesignating paragraphs (6) through (10) as paragraphs (7) through (11), respectively; and

(B)

by inserting after paragraph (5) the following:

(6)

An Under Secretary for Policy.

;

(2)

by striking section 879; and

(3)

in the table of contents—

(A)

by redesignating the items relating to title VI and section 601 as items relating to title XVIII and section 1801, respectively, and transferring such items to the end of the table of contents;

(B)

by striking the item relating to section 879; and

(C)

by inserting before the item relating to title VII the following:

TITLE VI—UNDER SECRETARY FOR POLICY

Sec. 601. Under Secretary for Policy.

.

(c)

Office of Cargo Security Policy

(1)

In general

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 Under Secretary for Policy.

(2)

Responsibilities

The Director shall—

(A)

advise the Secretary and the Under 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, 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; and

(D)

coordinate all programs of the Department relating to cargo security.

.

(2)

Clerical amendment

The table of contents of the Homeland Security Act of 2002 (6 U.S.C. 101 et seq.) is amended by inserting after the item relating to section 430 the following:

Sec. 431. Office of Cargo Security Policy.

.

(d)

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—

(1)

negotiating international agreements related to cargo security;

(2)

conducting activities under this Act; and

(3)

carrying out related responsibilities, as assigned by the Secretary of State.

9.

Container security standards and procedures

(a)

Establishment

(1)

Rulemaking

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 for Science and Technology of the Department, and other security initiatives to establish the standards and procedures described in paragraph (1). Such standards and procedures 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 15.

(c)

International cargo security standards

The Secretary, in consultation with the Secretary of State and the Secretary of Energy, 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.

10.

Domestic radiation detection and imaging

(a)

Examining containers

Not later than December 31, 2007, all containers entering the United States through the busiest 22 seaports of entry shall be examined for radiation.

(b)

Strategy

The Secretary shall develop a strategy for the deployment of radiation detection capabilities that includes—

(1)

a risk-based prioritization of ports of entry at which radiation detection equipment will be deployed;

(2)

a proposed time line of when radiation detection equipment will be deployed at each of the ports of entry identified under paragraph (1);

(3)

the type of equipment to be used at each of the ports of entry identified under paragraph (1), including the joint deployment and utilization of radiation detection equipment and nonintrusive imaging equipment;

(4)

standard operating procedures for examining containers with such equipment, including sensor alarming, networking and communications and response protocols;

(5)

operator training plans;

(6)

an evaluation of the environmental health and safety impacts of nonintrusive inspection technology;

(7)

the Department policy for the using nonintrusive inspection equipment;

(8)

a classified annex that—

(A)

details plans for covert testing; and

(B)

outlines the risk-based prioritization of ports of entry used under paragraph (1).

(c)

Report

Not later than 90 days after the date of enactment of this Act, the Secretary shall submit the strategy developed under subsection (b) to appropriate congressional committees.

(d)

Update

Not later than 180 days after the date of enactment of this Act, the Secretary may update the strategy submitted under subsection (c) to provide a more complete evaluation under subsection (b)(6).

(e)

Other WMD threats

Not later than 180 days after the date of enactment of this Act, the Secretary shall submit a strategy for the deployment of equipment to detect chemical, biological, and other weapons at all ports of entry into the United States to appropriate congressional committees.

(f)

Implementation

Not later than 3 years after the date of enactment of this Act, the Secretary shall fully implement the strategy developed under subsection (b).

11.

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 security risk 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 other Federal officials, as appropriate, shall conduct an assessment of the port to evaluate the costs, benefits, and other factors associated with such 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 to the United States 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 government of the intended host country;

(5)

the willingness of the government of the intended host country to permit validation of security practices within the country in which the foreign port is located, for the purposes of C-TPAT or similar programs; and

(6)

the potential for C–TPAT and GreenLane cargo traveling through 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 appropriate congressional committees.

(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 may request that the Secretary of State, in conjunction with the United States Trade Representative, 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 that the equipment operated at each port designated under CSI be operated 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)

Considerations

(A)

Consistency of standards and procedures

In establishing the technical capability requirements and standard operating procedures under paragraph (1)(A), the Secretary shall take into account any such relevant standards and procedures utilized by other Federal departments or agencies as well as those developed by international bodies.

(B)

Applicability

The technical capability requirements and standard operating procedures established pursuant to paragraph (1)(A) shall not apply to activities conducted under the Megaports Initiative of the Department of Energy.

(3)

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

Notwithstanding any other provision of law, the Secretary may—

(i)

lease, loan, provide, or otherwise assist in the deployment of non-intrusive inspection and handheld radiation detection equipment at foreign air, land, and sea ports under such terms and conditions as the Secretary prescribes, including nonreimbursable loans or the transfer of ownership of equipment; and

(ii)

provide training and technical assistance for domestic or foreign personnel responsible for operating or maintaining such equipment.

(C)

Training

The Secretary may provide training on the use of inspection equipment, or other training that the Secretary determines to be appropriate to secure the international supply chain, 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.

(i)

Pilot integrated scanning system

(1)

Designations

Not later than 90 days after the date of the enactment of this Act, the Secretary shall designate 3 foreign seaports through which containers pass or are transshipped to the United States to pilot an integrated scanning system that couples nonintrusive inspection equipment and radiation detection equipment, which may be provided by the Megaports Initiative of the Department of Energy. In making designations under this paragraph, the Secretary shall consider 3 distinct ports with unique features and differing levels of trade volume.

(2)

Collaboration and cooperation

The Secretary shall collaborate with the Secretary of Energy and cooperate with the private sector and host foreign government to implement this pilot.

(3)

Implementation

Not later than 1 year after the date of enactment of this Act, the Secretary shall achieve a full-scale implementation of the pilot integrated screening system, which shall—

(A)

scan all containers destined for the United States that transit through the port;

(B)

electronically transmit the images and information to CSI personnel in the host country and the National Targeting Center for evaluation and analysis;

(C)

utilize, to the maximum extent practicable, container security devices or other container sealing devices on all containers;

(D)

resolve every radiation alarm according to established Department procedures;

(E)

utilize the information collected to enhance the Automated Targeting System or other relevant programs; and

(F)

store the information for later retrieval and analysis.

(4)

Report

Not later than 120 days after achieving full-scale implementation under paragraph (3), the Secretary, in consultation with the Secretary of Energy and the Secretary of State, shall submit a report, to appropriate congressional committees, that includes—

(A)

an evaluation of the lessons derived from the pilot program implemented under this subsection;

(B)

an analysis of the efficacy of the Automated Targeted System or other relevant programs in utilizing the images captured to examine high-risk containers;

(C)

an evaluation of software that is capable of automatically identifying potential anomalies in scanned containers; and

(D)

a plan and schedule to expand this integrated scanning system to other CSI ports.

(5)

Implementation

As soon as practicable and possible, an integrated scanning system shall be implemented to scan all containers entering the United States prior to arrival in the United States.

12.

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)

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 to and from the United States;

(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 C–TPAT participant has been certified under subsection (d)(1), the Secretary shall validate, directly or through certified third parties (as provided under subsection (f)), the security measures and supply chain security practices of that participant. Such validation shall include visits to foreign locations utilized by the C–TPAT participant as part of the participant’s supply chain or chains.

(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 United States 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)

Third party certification

(1)

In general

Not later than 1 year after the date of enactment of this Act, the Secretary shall develop and issue minimum standard operating procedures and requirements for third parties to conduct validations of C-TPAT participants. These third parties shall be certified and monitored as outlined in this subsection.

(2)

Certification of third party entities

The Secretary shall issue a certificate of conformance to a third party to conduct validations under this section if the third party—

(A)

demonstrates to the satisfaction of the Secretary that the third party is capable of performing validations in accordance with standard operating procedures and requirements;

(B)

agrees to perform validations in accordance with such standard operating procedures and requirements;

(C)

signs an agreement to protect all proprietary information of C–TPAT participants with respect to which the entity will conduct validations;

(D)

has no beneficial interest in or any direct or indirect control over the C–TPAT participant that is contracting for the validation services; and

(E)

has no other conflict of interest with respect to the C–TPAT participant.

(3)

Monitoring

The Secretary shall regularly monitor and inspect the operations of a third party conducting validations under this section to ensure that the third party is meeting the minimum standard operating procedures and requirements for the validation of C–TPAT participants established under subsection (e) and all other applicable requirements for validation services as determined by the Secretary.

(4)

Revocation

If the Secretary finds that a third party is not meeting the minimum standard operating procedures and requirements, the Secretary shall—

(A)

revoke the entity’s certificate of conformance issued under subsection; and

(B)

review any validations conducted by the entity.

(5)

Validation decision

The decision to designate a C–TPAT participant as a tier 2 or GreenLane member is solely within the discretion of the Secretary or the Secretary’s designee.

(6)

Exclusion

A certified third party may not determine the status of a C–TPAT participant.

(g)

Revalidation

The Secretary shall establish a process for revalidating C–TPAT participants. Such revalidation shall occur on the basis of risk not less frequently than once during every 4-year period following validation.

13.

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

The Secretary shall designate requirements for GreenLane participants, which shall include—

(1)

voluntary submission of additional data elements, as determined by the Secretary and as informed by the plan required under section 6 submitted on shipments before loading;

(2)

cargo is loaded at a port designated under CSI, or other designated 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, or on a vessel with a valid International Ship Security Certificate as provided for under part 104 of title 33, Code of Federal Regulations;

(4)

the supply chain visibility procedures established by the Secretary under subsection (f)(1)(A) are utilized;

(5)

container security devices meeting the standards and procedures established by the Secretary under subsection (f)(1)(B) are utilized;

(6)

cargo complies with additional security criteria established by the Secretary beyond the minimum requirements for C–TPAT participation under section 12(c), particularly in the area of access controls; and

(7)

cargo complies with any other requirements determined by the Secretary.

(c)

Non-containerized cargo

The Secretary shall designate requirements for GreenLane participation specific to non-containerized cargoes. Nothing in this section shall be construed to preclude participation in GreenLane by importers of non-containerized cargoes that otherwise meet the requirements under this section.

(d)

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 scrutiny, through screening, examination, or search, as containers arriving at a United States port of entry from a foreign seaport, and as provided by bilateral commitments between the United States and Canada and the United States and Mexico, respectively.

(e)

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 GreenLane 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.

(f)

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; and

(C)

any other GreenLane 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 12(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 GreenLane, 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 5(b));

(D)

further reduced inspections;

(E)

priority processing for inspections;

(F)

further reduced scores in the Automated Targeting System; and

(G)

streamlined billing of any customs duties or fees.

(3)

Other modes of transportation

The Secretary shall consider establishment of GreenLane requirements and benefits for cargo entering the United States by non-maritime modes of transportation.

14.

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 maritime transportation security incident, facilitate incident management and response.

(b)

Organization

To the extent practicable, a joint operations center shall be colocated with the command center for each Coast Guard sector and shall utilize existing facilities. The Secretary may utilize virtual connectivity to accomplish the goals of this section.

(c)

Participation

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

(1)

The United States Coast Guard.

(2)

United States Customs and Border Protection.

(3)

United States 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)

assist, as appropriate, in the implementation of 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, as appropriate to the vessel traffic criteria within the center’s area of responsibility, short- and long-range vessel tracking under sections 70114 and 70115 of such title 46, United States Code;

(5)

facilitate communication and coordination with private sector stakeholders during a transportation security incident involving the port; and

(6)

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 shall act as the initial incident commander, unless otherwise directed by the President.

(g)

Rule of construction

Nothing in this section shall be construed to affect the standard command and control procedures for operational entities in the Department, unless so directed by the Secretary.

(h)

Implementation

Not later than 180 days after the date of enactment of this Act, the Secretary shall submit an implementation plan for this section, to appropriate congressional committees, which describes, for each joint operations center—

(1)

the location;

(2)

the specific participating entities;

(3)

the implementation costs; and

(4)

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

15.

Research, development, test, and evaluation

(a)

Reauthorization of Homeland Security Science and Technology Advisory Committee

(1)

In general

Section 311(j) of the Homeland Security Act of 2002 (6 U.S.C. 191(j)) is amended by striking 3 years after the effective date of this Act and inserting on December 31, 2008.

(2)

Effective date and application

The amendment made by paragraph (1) shall be effective as if enacted on the date of enactment of the Homeland Security Act of 2002.

(3)

Advisory committee

The Under Secretary for Science and Technology shall utilize the Homeland Security Science and Technology Advisory Committee, as appropriate, to provide outside expertise in advancing cargo security technology.

(b)

Duties of Secretary

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.

(c)

Coordination

The Secretary, acting through the Under Secretary for Science and Technology, in consultation with the Under 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.

(d)

Operation safe commerce

(1)

In general

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

(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 in a secure manner, data regarding the movement of cargo in the international supply chain submitted by entities participating in the international supply chain to the Department for use in targeting efforts; 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)

Competitive selection process

The Secretary shall select grant recipients under paragraph (1) through a competitive process based on—

(A)

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 subsection;

(B)

the applicant’s capability to provide leadership in making national and regional contributions to the solution of maritime and cargo security issues;

(C)

the extent to which the applicant’s programs, projects, and activities under the grant will address highest risk priorities as determined by the Secretary; and

(D)

any other criteria the Secretary determines to be appropriate.

(4)

Administrative provisions

(A)

Prohibition on duplication of effort

Before awarding any grant under this subsection, 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.

(B)

Accounting, reporting, and review procedures

The Secretary shall establish accounting, reporting, and review procedures to ensure that—

(i)

amounts made available under this subsection are used for the purpose for which such amounts were made available;

(ii)

amounts made available under this subsection are properly accounted for; and

(iii)

amounts not used for such purpose and amounts not expended are recovered.

(C)

Record keeping

Grant recipients under this subsection shall—

(i)

maintain all records related to expenditures and obligations of amounts provided under the grant; and

(ii)

make such records available upon request to the Secretary for audit and examination.

(D)

Review

The Secretary shall annually review the programs, projects, and activities carried out using amounts made available under grants awarded under this subsection to ensure that obligations and expenditures of such amounts are consistent with the purposes for which such amounts are made available.

(5)

Annual report

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

(e)

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.

16.

Port Security Grant Program

(a)

Grants authorized

The Secretary, acting through the Office for Domestic Preparedness, shall establish a grant program to allocate Federal financial assistance, on the basis of risk and need—

(1)

to mitigate risks as identified by the Secretary;

(2)

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

(3)

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

(4)

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 mitigate risks, as identified by the Secretary;

(2)

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

(3)

to correct port security vulnerabilities identified through vulnerability assessments approved 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 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;

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

(6)

to purchase or upgrade equipment, including computer software;

(7)

to establish or enhance mechanisms for information sharing, including classified information;

(8)

to develop joint operations centers (as described in section 14) that bring together Federal, State, and local officials and stakeholders into a common operation center that is focused on area maritime and cargo security;

(9)

to conduct vulnerability assessments approved by the Secretary; and

(10)

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 the progress made in meeting the objectives of the port security grant program established under this section to appropriate congressional committees.

(k)

Risk assessments

The Secretary shall make available to grant applicants a risk assessment tool, which uses standardized risk criteria, such as the Maritime Security Risk Assessment Model used by the Coast Guard.

17.

Deadline for transportation security cards

Section 70105 of title 46, United States Code, is amended—

(1)

in subsection (a)(1), by striking The Secretary shall prescribe and inserting Not later than December 1, 2006, the Secretary shall prescribe final; and

(2)

in subsection (c)—

(A)

in paragraph (2), by striking The Secretary shall prescribe and inserting Not later than December 1, 2006, the Secretary shall prescribe final; and

(B)

in paragraph (3), by striking The Secretary and inserting Not later than December 1, 2006, the Secretary.

18.

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 6(a).

(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 8(c); and

(2)

$1,000,000 to carry out the provisions of section 8(d).

(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 11.

(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 12.

(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 13.

(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 14.

(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 14, including additional cost-sharing arrangements with other Federal departments and other participants involved in the joint operation centers, to appropriate congressional committees.

(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 15(d).

(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 16.

(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 United States Customs and Border Protection.

May 5, 2006

Reported with an amendment