[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4954 Introduced in House (IH)]







109th CONGRESS
  2d Session
                                H. R. 4954

    To improve maritime and cargo security through enhanced layered 
                   defenses, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 14, 2006

   Mr. Daniel E. Lungren of California (for himself, Ms. Harman, Mr. 
Pearce, Mr. Thompson of Mississippi, Mr. Boehlert, Ms. Loretta Sanchez 
 of California, Mr. McCaul of Texas, Mr. Dicks, Mr. Souder, Mr. Hoyer, 
  Ms. Harris, Mr. DeFazio, Mr. Jindal, Ms. Jackson-Lee of Texas, Mr. 
Shays, Mr. Langevin, Mr. Dent, Ms. Norton, Mr. Simmons, Mr. Etheridge, 
Ms. Ginny Brown-Waite of Florida, Mr. Brown of South Carolina, Mr. Meek 
  of Florida, Mrs. Bono, Mr. Larsen of Washington, Mr. Ferguson, Mr. 
 Ruppersberger, Mr. Gibbons, Mr. Smith of Washington, Mr. Pallone, Mr. 
Cardoza, Mrs. Maloney, Mrs. Napolitano, Mr. Brown of Ohio, Mr. Schiff, 
Mr. Berry, Ms. Eddie Bernice Johnson of Texas, Ms. Lee, Ms. Kilpatrick 
of Michigan, Mr. Ford, Mr. Price of North Carolina, Mr. McDermott, Ms. 
 Roybal-Allard, Mr. Brady of Pennsylvania, Mr. Bishop of Georgia, and 
   Mr. Wu) introduced the following bill; which was referred to the 
                     Committee on Homeland Security

_______________________________________________________________________

                                 A BILL


 
    To improve maritime and cargo security through enhanced layered 
                   defenses, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

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

Sec. 1. Short title; table of contents.
Sec. 2. Findings.
Sec. 3. Definitions.
Sec. 4. Strategic plan.
Sec. 5. Protocols on the resumption of trade.
Sec. 6. Improvements to Automated Targeting System.
Sec. 7. Uniform data for government-wide usage.
Sec. 8. Employee verification for individuals with access to secure 
                            areas of seaports.
Sec. 9. Director of Cargo Security Policy.
Sec. 10. Container security standards and verification procedures.
Sec. 11. Radiation detection and radiation safety.
Sec. 12. Container Security Initiative.
Sec. 13. Customs-Trade Partnership Against Terrorism.
Sec. 14. GreenLane designation.
Sec. 15. Joint operations centers.
Sec. 16. Research, development, test, and evaluation.
Sec. 17. Port security grant program.
Sec. 18. Authorization of appropriations.

SEC. 2. FINDINGS.

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

SEC. 3. DEFINITIONS.

    In this Act:
            (1) Appropriate congressional committees.--The term 
        ``appropriate congressional committees'' means--
                    (A) the Committee on Homeland Security and the 
                Committee on Appropriations of the House of 
                Representatives; and
                    (B) the Committee on Homeland Security and 
                Governmental Affairs and the Committee on 
                Appropriations of the Senate.
            (2) Automated targeting system.--The term ``Automated 
        Targeting System'' means the system established by U.S. Customs 
        and Border Protection to assess imports and target those 
        imports which pose a high risk of containing contraband.
            (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 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 12 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 
        13 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, which 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 
        comprehensive process used by U.S. Customs and Border 
        Protection for assessing goods entering the United States to 
        appraise them for duty purposes, to detect the presence of 
        restricted or prohibited items, and to ensure compliance with 
        all applicable laws. This process may include screening, 
        conducting an examination, or conducting a search.
            (11) 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.
            (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'', 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.
            (14) 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.
            (15) Search.--The term ``search'' means an intrusive 
        examination in which a container is opened and its contents are 
        de-vanned and visually inspected for the presence of 
        misdeclared, restricted, or prohibited items.
            (16) Secretary.--The term ``Secretary'' means the Secretary 
        of Homeland Security.
            (17) 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).
            (18) 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.
            (19) Transportation security incident.--The term 
        ``transportation security incident'' has the meaning given such 
        term in section 70101(6) of title 46, United States Code.

SEC. 4. STRATEGIC PLAN.

    (a) Strategic Plan.--The Secretary, in consultation with 
appropriate Federal, State, local, and tribal government agencies and 
private sector stakeholders responsible for security matters that 
affect or relate to the movement of containers through the 
international supply chain, shall develop and implement, and update as 
appropriate, a strategic plan to enhance the security of the maritime 
transportation system.
    (b) Requirements.--The strategic plan required under subsection (a) 
shall--
            (1) describe the roles, responsibilities, and authorities 
        of Federal, State, local, and tribal government agencies and 
        private sector stakeholders that relate to the security of the 
        movement of containers through the international supply chain;
            (2) identify and address gaps and unnecessary overlaps in 
        the roles, responsibilities, or authorities described in 
        paragraph (1);
            (3) identify and make recommendations regarding 
        legislative, regulatory, and organizational changes necessary 
        to improve coordination among the entities or to enhance the 
        security of the international supply chain;
            (4) provide measurable goals, including objectives, 
        mechanisms, and a schedule, for furthering the security of 
        commercial operations from point of origin to point of 
        destination;
            (5) build on available resources and consider costs and 
        benefits;
            (6) identify mandatory, baseline security goals, and the 
        minimum container security standards and verification 
        procedures described in section 10;
            (7) provide incentives for additional voluntary measures to 
        enhance cargo security, as determined by the Secretary and 
        under the GreenLane Program under section 14;
            (8) include a process for sharing intelligence and 
        information with private sector stakeholders to assist in their 
        security efforts;
            (9) identify a framework for prudent and measured response 
        in the event of a transportation security incident involving 
        the international supply chain;
            (10) provide a plan for the expeditious resumption of the 
        flow of legitimate trade in accordance with section 5;
            (11) focus on the secure movement of containerized cargo 
        through the international supply chain; and
            (12) expand upon and relate to existing strategies and 
        plans, including the National Strategy for Maritime Security 
        and the eight supporting plans of the Strategy, as required by 
        Homeland Security Presidential Directive-13 (September 2005).
    (c) Utilization of Advisory Committees.--As part of the 
consultations described in subsection (a), the Secretary 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 updates to the strategic plan.
    (d) International Standards and Practices.--In furtherance of the 
strategic plan required under subsection (a), the Secretary is 
encouraged to consider proposed or established standards and practices 
of foreign governments and international organizations, including the 
International Maritime Organization, the World Customs Organization, 
the International Labor Organization, and the International 
Organization for Standardization, as appropriate, to establish 
standards and best practices for the security of containers moving 
through the international supply chain.
    (e) Report.--
            (1) Initial report.--Not later than 90 days after the date 
        of enactment of this Act, the Secretary shall submit to the 
        appropriate congressional committees a report that contains the 
        strategic plan required by subsection (a).
            (2) Final report.--Not later than three years after the 
        date on which the strategic plan is submitted under paragraph 
        (1), the Secretary shall submit to the appropriate 
        congressional committees a report that contains an update of 
        the strategic plan.

SEC. 5. PROTOCOLS ON THE 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 ensures trade lanes are restored as quickly as 
possible. The protocols shall provide for coordination with appropriate 
Federal, State, and local agencies on law enforcement actions, inter-
modal rerouting plans, and identification and prioritization of goods 
that may enter the United States.
    (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--
            (1) having a vessel security plan approved or accepted 
        under section 70103(c) of title 46, United States Code;
            (2) entering a port of entry directly from a foreign port 
        designated under CSI or from another foreign port, as 
        determined by the Secretary;
            (3) operated by validated C-TPAT participants; and
            (4) carrying GreenLane designated cargo.

SEC. 6. IMPROVEMENTS TO AUTOMATED TARGETING SYSTEM.

    (a) 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 the identification of 
high-risk containers moving through the international supply chain.
    (b) Contents.--
            (1) Treatment of recommendations.--The Secretary shall 
        include in the plan required under subsection (a) a schedule to 
        implement the recommendations of the Comptroller General of the 
        United States, the Inspector General of the Department of the 
        Treasury, and the Inspector General of the Department with 
        respect to the operation of the Automated Targeting System.
            (2) Information submissions.--In developing the plan 
        required under subsection (a), the Secretary shall consider the 
        cost, benefit, and feasibility of--
                    (A) requiring additional nonmanifest documentation 
                for each container, 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;
                    (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 for vessel or cargo; and
                    (D) such other actions the Secretary considers 
                beneficial for improving the information relied upon 
                for the Automated Targeting System and any other 
                targeting systems in furthering the security and 
                integrity of the international supply chain.
            (3) Outside review.--The Secretary shall conduct, through 
        an independent panel, a review of the Automated Targeting 
        System. The results of this review shall be included in the 
        plan required under subsection (a).
            (4) Smart system.--The Secretary shall consider future 
        iterations of the Automated Targeting System, which would 
        incorporate smart features, such as more complex algorithms and 
        real-time intelligence, instead of relying solely on rule sets 
        that are periodically updated.
    (c) New or Expanded Information Submissions.--In considering any 
new or expanded information submission requirements, the Secretary 
shall consult with stakeholders and identify the need for such 
information, and the appropriate timing of its submission, in the plan 
required under subsection (a).
    (d) Secure Transmission of Certain Information.--All information 
required by the Department from supply chain partners shall be 
transmitted in a secure fashion, as determined by the Secretary, so as 
to protect the information from unauthorized access.

SEC. 7. UNIFORM DATA FOR GOVERNMENT-WIDE USAGE.

    (a) Establishment.--The Secretary, in cooperation with 
representatives from 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.
    (b) Private Sector Consultation.--The Secretary shall consult with 
private sector stakeholders in developing uniform data submission 
requirements, procedures, and schedules under the system established 
pursuant to subsection (a).

SEC. 8. EMPLOYEE VERIFICATION FOR INDIVIDUALS WITH ACCESS TO SECURE 
              AREAS OF SEAPORTS.

    (a) Definitions.--In this section, the following definitions apply:
            (1) Secretary.--The term ``Secretary'' means the Secretary 
        of Homeland Security acting through the Assistant Secretary of 
        Homeland Security (Transportation Security Administration).
            (2) Terrorist watch lists.--The term ``terrorist watch 
        lists'' means all available information on known or suspected 
        terrorist threats.
    (b) Employee Verification for Current Employees.--
            (1) Security directive.--Not later than 30 days after the 
        date of enactment of this Act, the Secretary shall issue a 
        security directive requiring States to submit to the Secretary 
        biographic information on each individual employed, as of the 
        date of issuance of the security directive, in a position in 
        which the individual has access to a secure area of a seaport 
        in the United States.
            (2) Determination of secure areas.--The Secretary shall 
        work with the Commandant of the Coast Guard to determine which 
        areas will be treated as secure areas for the purposes of this 
        subsection.
            (3) Deadline for submission of information.--The security 
        directive shall require that States submit the biographic 
        information by not later than 30 days after the date of 
        issuance of the security directive.
            (4) Comparison of biographic information against 
        information on known or suspected terrorist threats.--
                    (A) Requirement.--Not later than 75 days after the 
                date of enactment of this Act, the Secretary shall 
                compare the biographic information received on each 
                individual against terrorist watch lists.
                    (B) Limitation.--The Secretary may omit from any 
                comparison under this subsection information regarding 
                an individual who has previously been compared against 
                terrorist watch lists.
            (5) Process.--
                    (A) Manner of collection and storage of 
                information.--The Secretary shall determine the manner 
                in which the biographic information will be collected 
                and stored.
                    (B) Costs of comparisons.--The Secretary may not 
                charge any fee for conducting comparisons under this 
                subsection.
    (c) Employee Verification for Future Employees.--
            (1) Requirement.--Not later than 75 days after the date of 
        enactment of this Act, the Secretary shall establish and begin 
        implementing a process for--
                    (A) obtaining biographic information on individuals 
                employed, beginning after the date of issuance of the 
                security directive under subsection (b)(1), in a 
                position described in subsection (b)(1); and
                    (B) comparing the biographic information on such 
                individuals against all available information on known 
                or suspected terrorist threats.
            (2) Costs of comparisons.--The Secretary shall determine 
        how to cover costs of comparisons conducted pursuant to this 
        subsection.
    (d) Prohibited Employment.--The Secretary shall specify security 
factors that are sufficient to prohibit the employment of an individual 
in a position described in subsection (b)(1).
    (e) Protections for Individuals.--The Secretary shall issue 
regulations to establish protections for individuals subject to 
comparisons under this section. The protections shall be substantially 
equivalent to the protections for individuals under sections 
70105(c)(2), 70105(c)(3), and 70105(e) of title 46, United States Code.
    (f) Restrictions on Use and Maintenance of Information.--
            (1) Restriction on disclosure.--Information obtained by the 
        Secretary on an individual under this section may not be made 
        available to the public, including the individual's employer.
            (2) Confidentiality; use.--Any information constituting 
        grounds for prohibiting the employment of an individual in a 
        position described in subsection (b)(1) shall be maintained 
        confidentially by the Secretary and may be used only for making 
        determinations under this section. The Secretary may share any 
        such information with other Federal law enforcement agencies. 
        The Secretary may not share any such information with an 
        individual's employer, except to inform the employer of whether 
        or not the individual has been prohibited under this section 
        from employment in a position described in subsection (b)(1).
    (g) Reporting.--Not later than 90 days after the date of enactment 
of this Act, the Secretary shall submit to the Committee on Homeland 
Security of the House of Representatives and the Committee on Homeland 
Security and Governmental Reform of the Senate a report containing 
information on--
            (1) the number of matches made in conducting comparisons 
        under subsection (b);
            (2) the corresponding ports at which the matches were 
        identified; and
            (3) the actions taken to determine necessary corrective 
        actions, as well as any corrective actions taken.

SEC. 9. DIRECTOR OF CARGO SECURITY POLICY.

    (a) In General.--There shall be in the Department a Director of 
Cargo Security Policy (hereinafter in this section referred to as the 
``Director'').
    (b) Responsibilities.--The Director shall--
            (1) advise the Secretary regarding all aspects of 
        Department programs relating to cargo security;
            (2) develop Department-wide policies regarding cargo 
        security; and
            (3) coordinate the cargo security policies and programs of 
        the Department with other executive agencies, including by 
        working with officials of the Department of State, as 
        appropriate, in negotiating international agreements relating 
        to cargo security.

SEC. 10. CONTAINER SECURITY STANDARDS AND VERIFICATION 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 verification 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 15.
    (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.

SEC. 11. RADIATION DETECTION AND RADIATION SAFETY.

    (a) Strategy.--Not later than 90 days after the date of enactment 
of this Act, the Secretary, acting through the Director of the Domestic 
Nuclear Detection Office of the Department, shall submit to the 
appropriate congressional committees a strategy for the deployment of 
radiation detection equipment at all ports of entry.
    (b) Contents.--The strategy submitted under subsection (a) shall 
include--
            (1) a risk-based prioritization of maritime ports of entry 
        at which radiation detection equipment will deployed;
            (2) a proposed timeline of when radiation detection 
        equipment will be deployed at each of the maritime ports of 
        entry identified under paragraph (1);
            (3) the type of equipment to be used at each of the 
        maritime ports of entry identified under paragraph (1);
            (4) standard operating procedures for examining containers 
        with such equipment;
            (5) an evaluation of the environmental health and safety 
        impacts of nonintrusive inspection technology;
            (6) the Department policy for using nonintrusive inspection 
        equipment;
            (7) a classified annex that details plans for covert 
        testing;
            (8) a classified annex that outlines the risk-based 
        prioritization of maritime ports of entry used under paragraph 
        (1); and
            (9) a plan that--
                    (A) details the health and safety impacts of 
                nonintrusive inspection technology; and
                    (B) describes the policy of U.S. Customs and Border 
                Protection for using nonintrusive inspection equipment.

SEC. 12. 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 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; and
            (6) 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 to the appropriate congressional committees a 
report, in classified or unclassified form, detailing the assessment of 
each foreign port the Secretary is considering designating under CSI.
    (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) 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 consultation 
                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, loan, or 
                otherwise provide foreign authorities nonintrusive 
                inspection equipment or radiation detection equipment 
                for examining conveyances and intermodal shipping 
                containers at any foreign or domestic port, under such 
                terms and conditions the Secretary may determine 
                (including nonreimbursable transfer of ownership), if 
                provision of such equipment is determined by the 
                Secretary to help secure and facilitate international 
                trade and is in the interests of the United States.
                    (C) Training.--The Secretary may provide training 
                on the use of equipment to domestic or foreign 
                personnel at each port designated under CSI.
    (g) 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 to decrease 
        the number of personnel who are deployed at foreign ports.

SEC. 13. 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) GAO recommendations.--The Secretary shall address, and 
        to the extent appropriate implement, the recommendations 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 establish 
        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).
    (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, the 
        Commissioner of U.S. Customs and Border Protection may--
                    (A) deny the participant all benefits under C-TPAT 
                on a temporary or permanent basis; or
                    (B) suspend or expel the participant from C-TPAT.
            (4) Right of appeal.--A C-TPAT participant described under 
        paragraph (3) may file an appeal with the Secretary of the 
        Commissioner's decision under paragraph (3)(A) to deny benefits 
        under C-TPAT and under paragraph (3)(B) to suspend or expel the 
        participant from C-TPAT.
            (5) Tier two benefits.--The Secretary shall extend benefits 
        to each participant who has been validated under this 
        subsection, which may include--
                    (A) reduced examinations; and
                    (B) priority processing for searches.
    (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.

SEC. 14. 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 on a vessel with a vessel security plan 
        approved or accepted under section 70103(c) of title 46, United 
        States Code, or the International Ship and Port Facility (ISPS) 
        Code;
            (3) container security devices that exceed the standards 
        and procedures established by the Secretary are utilized;
            (4) cargo security practices exceed the security criteria 
        established by the Secretary beyond the minimum requirements 
        for C-TPAT participation under section 13(c), particularly in 
        the area of access controls; and
            (5) 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) Policies.--
            (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 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 13(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, may provide 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 
                5(b));
                    (D) further reduced examinations;
                    (E) priority processing for examinations;
                    (F) further reduced scores in the Automated 
                Targeting System; and
                    (G) streamlined billing of any customs duties or 
                fees.

SEC. 15. JOINT OPERATIONS CENTERS.

    (a) Establishment.--Not later than three years after the date of 
the enactment of this Act, the Secretary shall expand existing and 
establish new joint operations 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) Participation.--The following entities shall participate in 
each joint operations center for maritime and cargo security:
            (1) The United States Coast Guard.
            (2) U.S. Customs and Border Protection.
            (3) U.S. 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.
    (c) 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.
    (d) 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.
    (e) 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.
    (f) Implementation.--
            (1) In general.--Not later than 180 days after the date of 
        enactment of this Act, the Secretary shall submit to the 
        appropriate congressional committees an implementation plan for 
        this section.
            (2) Contents.--The plan submitted under paragraph (1) shall 
        describe, for each joint operations center--
                    (A) the location;
                    (B) the specific participating entities;
                    (C) the implementation costs;
                    (D) the necessary resources for operation and 
                maintenance, including the cost-sharing requirements 
                for other agencies and participants; and
                    (E) in the case of an existing joint operations 
                center, the enhancements to such center that are 
                necessary to meet the requirements of subsection (d).

SEC. 16. RESEARCH, DEVELOPMENT, TEST, AND EVALUATION.

    (a) In General.--The Secretary shall--
            (1) direct research, development, test, and evaluation 
        efforts in furtherance of maritime and cargo security;
            (2) encourage the ingenuity of the private sector in 
        developing and testing technologies and process innovations in 
        furtherance of these objectives; and
            (3) evaluate such technologies.
    (b) Coordination.--The Secretary, acting through the Undersecretary 
for Science and Technology, in consultation with the Assistant 
Secretary for Policy, the Director of Cargo Security Policy, the 
Director of the Domestic Nuclear Detection Office of the Department, 
and the Chief Financial Officer, shall ensure that--
            (1) research, development, test, and evaluation efforts 
        funded by the Department in furtherance of maritime and cargo 
        security are coordinated to avoid duplication of efforts; and
            (2) the results of such efforts are shared throughout the 
        Department, as appropriate.
    (c) Operation Safe Commerce.--
            (1) In general.--Not later than 1 year after the date of 
        enactment of this Act, the Secretary shall initiate grant 
        projects, as part of Operation Safe Commerce, that--
                    (A) integrate nonintrusive inspection and radiation 
                detection equipment with automatic identification 
                methods for containers, vessels, and vehicles;
                    (B) test physical access control protocols and 
                technologies to include continuous tracking devices 
                that provide real-time monitoring and reporting;
                    (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 to the appropriate congressional 
        committees a report detailing the results of Operation Safe 
        Commerce.
    (d) GreenLane Technology.--The Secretary shall, not less frequently 
than once every 2 years--
            (1) review the technology requirements and standards 
        established under section 14; 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.

SEC. 17. PORT SECURITY GRANT PROGRAM.

    (a) Grants Authorized.--The Secretary shall establish a grant 
program to allocate Federal financial assistance to ports in the United 
States on the basis of risk and need.
    (b) Prioritization Process.--In awarding grants under this section, 
the Secretary shall conduct an assessment of ports in the United States 
to develop a prioritization for awarding grants authorized under 
subsection (a) based upon--
            (1) the most current risk assessment available from the 
        Department;
            (2) the national economic and strategic defense 
        considerations of individual ports; and
            (3) any other factors that the Secretary determines to be 
        appropriate.
    (c) Application.--
            (1) In general.--Any entity subject to an Area Maritime 
        Transportation Security Plan required under section 70103(b) of 
        title 46, United States Code, may submit an application for a 
        grant under this section, at such time, in such form, and 
        containing such information and assurances as the Secretary may 
        require.
            (2) Minimum standards for payment or reimbursement.--Each 
        application submitted under paragraph (1) shall include--
                    (A) a comprehensive description of--
                            (i) the purpose of the project for which 
                        the applicant seeks a grant under this section 
                        and why the applicant needs the grant;
                            (ii) the applicability of the project to 
                        the Area Maritime Transportation Security Plan 
                        and other homeland security plans;
                            (iii) the methodology for coordinating the 
                        project into the security of the greater port 
                        area, as identified in the Area Maritime 
                        Security Plan;
                            (iv) any existing cooperation or mutual aid 
                        agreements with other port facilities, vessels, 
                        organizations, or State, territorial, and local 
                        governments as such agreements relate to port 
                        security; and
                            (v) a capital budget showing how the 
                        applicant intends to allocate and expend the 
                        grant funds;
                    (B) a determination by the Captain of the Port that 
                the project--
                            (i) addresses or corrects port security 
                        vulnerabilities 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 and the Office of 
        Grants and Training, shall issue guidelines to establish 
        appropriate accounting, reporting, and review procedures to 
        ensure that--
                    (A) grant funds are used for the purposes for which 
                they were made available;
                    (B) grantees have properly accounted for all 
                expenditures of grant funds; and
                    (C) grant funds not used for such purposes and 
                amounts not obligated or expended are returned.
    (d) Use of Funds.--Grants awarded under this section may be used--
            (1) to help implement Area Maritime Transportation Security 
        Plans required under section 70103(b) of title 46, United 
        States Code;
            (2) to remedy port security vulnerabilities identified 
        through vulnerability assessments approved by the Secretary;
            (3) for non-Federal projects contributing to the overall 
        security of a port or a system of ports in the Untied States, 
        as determined by the Secretary;
            (4) for the salaries, benefits, overtime compensation, and 
        other costs of additional security personnel for State and 
        local agencies for activities required by the Area Maritime 
        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 conduct vulnerability assessments approved by the 
        Secretary;
            (7) to purchase or upgrade equipment, including computer 
        software, to enhance terrorism preparedness;
            (8) to conduct exercises to strengthen terrorism 
        preparedness;
            (9) to conduct training for prevention and detection of, 
        preparedness for, response to, or recovery from attacks 
        involving weapons of mass destruction, including training in 
        the use of equipment and computer software;
            (10) to establish or enhance mechanisms for sharing 
        terrorism threat information;
            (11) for the cost of equipment (including software) 
        required to receive, transmit, handle, and store classified 
        information;
            (12) for the protection of critical infrastructure against 
        potential attack by the addition of barriers, fences, gates, 
        and other such devices, except that the cost of such measures 
        may not exceed the greater of--
                    (A) $1,000,000 per project; or
                    (B) such greater amount as may be approved by the 
                Secretary, which may not exceed 10 percent of the total 
                amount of the grant; and
            (13) to conduct port-wide exercises to strengthen emergency 
        preparedness of Federal, State, territorial, and local 
        officials responsible for port security, including law 
        enforcement personnel and firefighters and other first 
        responders, in support of the Area Maritime Security Plan.
    (e) Prohibited Uses.--Grants awarded under this section may not be 
used to--
            (1) supplant State or local funds for activities of the 
        type described in subsection (d);
            (2) construct buildings or other physical facilities, 
        acquire land; or
            (3) make any State or local government cost-sharing 
        contribution.
    (f) Multiple Phase Projects.--
            (1) Sense of congress.--It is the sense of Congress that 
        the Secretary should consider awarding grants under this 
        section for projects that span multiple years.
            (2) Funding limitation.--Not more than 20 percent of the 
        total grant funds awarded under this section in any fiscal year 
        may be awarded for projects that span multiple years.
    (g) Consistency With Plans.--The Secretary shall ensure that each 
grant awarded under this section --
            (1) is used to supplement and support, in a consistent and 
        coordinated manner, the applicable Area Maritime Transportation 
        Security Plan; and
            (2) is used to supplement and support any applicable State 
        or Urban Area Homeland Security Plan.
    (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.

SEC. 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.
    (b) Container Security Initiative.--There are authorized to be 
appropriated $196,000,000 for each of the fiscal years 2007 through 
2012 to carry out the provisions of section 12.
    (c) 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 sections 13 and 14.
    (d) Joint Operations Centers.--
            (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 15.
            (2) Budget analysis.--Not later than 180 days after the 
        date of enactment of this Act, the Secretary shall submit to 
        the appropriate congressional committees a budget analysis for 
        implementing the provisions of section 15, including additional 
        cost-sharing arrangements with other Federal departments and 
        other participants involved in the joint operation centers.
    (e) 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 16(c).
    (f) Port Security Grant Program.--
            (1) In general.--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 17.
            (2) Source of funds.--Amounts authorized to be appropriated 
        under paragraph (1) shall originate from duties collected by 
        U.S. Customs and Border Protection.
    (g) 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.
                                 <all>