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







                                                 Union Calendar No. 250
109th CONGRESS
  2d Session
                                H. R. 4954

                          [Report No. 109-447]

    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

                             April 28, 2006

      Reported with an amendment and referred to the Committee on 
 Transportation and Infrastructure for a period ending not later than 
   May 1, 2006, for consideration of such provisions of the bill and 
amendment as fall within the jurisdiction of that committee pursuant to 
                          clause 1(r), rule X
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

                              May 1, 2006

   Additional sponsors: Mr. Linder, Mr. Foley, Mrs. Jo Ann Davis of 
  Virginia, Mr. Platts, Mr. Bachus, Mr. Weldon of Pennsylvania, Mrs. 
Myrick, Mr. Kline, Mr. Cummings, Ms. Berkley, Mr. Weiner, Mr. McNulty, 
Ms. Wasserman Schultz, Mr. Scott of Virginia, Mr. Case, Mrs. Tauscher, 
 Mr. Baird, Mr. Sweeney, Mr. George Miller of California, Mr. Inslee, 
Mrs. Christensen, Mr. Bishop of New York, Mr. Crowley, Mr. Al Green of 
Texas, Mr. Smith of New Jersey, Ms. Watson, Mr. Reichert, Mr. Fossella, 
 Mrs. Davis of California, Mr. Rothman, Mr. Tom Davis of Virginia, Mr. 
  King of New York, Mr. Smith of Texas, Mr. Moore of Kansas, and Mr. 
                                 Costa

                              May 1, 2006

Committee on Transportation and Infrastructure discharged; committed to 
the Committee of the Whole House on the State of the Union and ordered 
                             to be printed
 [For text of introduced bill, see copy of bill as introduced on March 
                               14, 2006]

_______________________________________________________________________

                                 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,

SEC. 1. SHORT TITLE; TABLE OF CONTENTS.

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

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

              TITLE I--SECURITY OF UNITED STATES SEAPORTS

                     Subtitle A--General Provisions

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

                Subtitle B--Grant and Training Programs

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

                  Subtitle C--Miscellaneous Provisions

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

          TITLE II--SECURITY OF THE INTERNATIONAL SUPPLY CHAIN

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

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

Sec. 301. Establishment of Directorate.

             TITLE IV--OFFICE OF DOMESTIC NUCLEAR DETECTION

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

SEC. 2. FINDINGS.

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

SEC. 3. DEFINITIONS.

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

              TITLE I--SECURITY OF UNITED STATES SEAPORTS

                     Subtitle A--General Provisions

SEC. 101. DEFINITION OF TRANSPORTATION SECURITY INCIDENT.

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

SEC. 102. PROTOCOLS FOR RESUMPTION OF TRADE.

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

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

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

SEC. 104. UNANNOUNCED INSPECTIONS OF MARITIME FACILITIES.

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

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

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

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

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

SEC. 107. LONG-RANGE VESSEL TRACKING.

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

SEC. 108. MARITIME SECURITY COMMAND CENTERS.

    (a) In General.--Chapter 701 of title 46, United States Code, is 
amended by adding at the end the following new section:
``Sec. 70122. Maritime security command centers
    ``(a) Establishment.--The Secretary shall establish an integrated 
network of virtual and physical maritime security command centers at 
appropriate United States seaports and maritime regions, as determined 
by the Secretary, to--
            ``(1) enhance information sharing;
            ``(2) facilitate day-to-day operational coordination; and
            ``(3) in the case of a transportation security incident, 
        facilitate incident management and response.
    ``(b) Characteristics.--Each maritime security command center 
described in subsection (a) shall--
            ``(1) be regionally based and utilize where available the 
        compositional and operational characteristics, facilities and 
        information technology systems of current operational centers 
        for port and maritime security and other similar existing 
        facilities and systems;
            ``(2) be adapted to meet the security needs, requirements, 
        and resources of the seaport and maritime region the center 
        will cover; and
            ``(3) to the maximum extent practicable, not involve the 
        construction of new facilities, but shall utilize information 
        technology, virtual connectivity, and existing facilities to 
        create an integrated, real-time communication and information 
        sharing network.
    ``(c) Participation.--The following entities shall participate in 
the integrated network of maritime security command centers described 
in subsection (a):
            ``(1) The Coast Guard.
            ``(2) U.S. Customs and Border Protection.
            ``(3) U.S. Immigration and Customs Enforcement.
            ``(4) Other appropriate Federal, State, and local law 
        enforcement agencies.
    ``(d) Responsibilities.--Each maritime security command center 
described in subsection (a) shall--
            ``(1) assist, as appropriate, in the implementation of 
        maritime transportation security plans developed under section 
        70103;
            ``(2) implement the transportation security incident 
        response plans required under section 70104;
            ``(3) carry out information sharing activities consistent 
        with those activities required under section 1016 of the 
        National Security Intelligence Reform Act of 2004 (6 U.S.C. 
        485) and the Homeland Security Information Sharing Act (6 
        U.S.C. 481 et seq.);
            ``(4) conduct short- and long-range vessel tracking under 
        sections 70114 and 70115; and
            ``(5) carry out such other responsibilities as determined 
        by the Secretary.
    ``(e) Security Clearances.--The Secretary shall sponsor and 
expedite individuals participating in a maritime security command 
center described in subsection (a) in gaining or maintaining their 
security clearances. Through the Captain of the Port, the Secretary may 
identify key individuals who should participate. In addition, the port 
or other entities may appeal to the Captain of the Port for 
sponsorship.
    ``(f) Security Incidents.--During a transportation security 
incident involving the port, the Coast Guard Captain of the Port 
designated by the Commandant of the Coast Guard in a maritime security 
command center described in subsection (a) shall act as the incident 
commander, unless otherwise directed by the President.
    ``(g) Rule of Construction.--Nothing in this section shall be 
construed to affect the normal command and control procedures for 
operational entities in the Department, unless so directed by the 
Secretary.
    ``(h) Authorization of Appropriations.--There are authorized to be 
appropriated $60,000,000 for each of the fiscal years 2007 through 2012 
to carry out this section and section 108(c) of the Security and 
Accountability For Every Port Act.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 701 of title 46, United States Code, is amended by adding at 
the end the following:

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

                Subtitle B--Grant and Training Programs

SEC. 111. PORT SECURITY GRANT PROGRAM.

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

``SEC. 512. PORT SECURITY GRANT PROGRAM.

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

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

SEC. 112. PORT SECURITY TRAINING PROGRAM.

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

``SEC. 802. PORT SECURITY TRAINING PROGRAM.

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

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

SEC. 113. PORT SECURITY EXERCISE PROGRAM.

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

``SEC. 803. PORT SECURITY EXERCISE PROGRAM.

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

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

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

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

                  Subtitle C--Miscellaneous Provisions

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

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

SEC. 122. ACCELERATION OF INTEGRATED DEEPWATER SYSTEM.

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

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

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

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

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

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

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

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

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

          TITLE II--SECURITY OF THE INTERNATIONAL SUPPLY CHAIN

SEC. 201. SECURITY OF THE INTERNATIONAL SUPPLY CHAIN.

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

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

                    ``Subtitle A--General Provisions

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

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

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

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

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

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

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

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

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

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

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

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

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

``SEC. 1811. ESTABLISHMENT.

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

``SEC. 1812. ELIGIBLE ENTITIES.

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

``SEC. 1813. MINIMUM REQUIREMENTS.

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

``SEC. 1814. TIER ONE PARTICIPANTS.

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

``SEC. 1815. TIER TWO PARTICIPANTS.

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

``SEC. 1816. TIER THREE PARTICIPANTS.

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

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

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

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

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

``SEC. 1819. REVALIDATION.

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

``SEC. 1820. NON-CONTAINERIZED CARGO.

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

``SEC. 1821. AUTHORIZATION OF APPROPRIATIONS.

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

                 ``Subtitle C--Miscellaneous Provisions

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

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

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

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

``SEC. 1833. DEFINITIONS.

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

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

                    ``Subtitle A--General Provisions

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

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

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

                 ``Subtitle C--Miscellaneous Provisions

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

SEC. 202. NEXT GENERATION SUPPLY CHAIN SECURITY TECHNOLOGIES.

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

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

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

SEC. 204. FOREIGN PORT ASSESSMENTS.

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

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

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

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

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

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

SEC. 301. ESTABLISHMENT OF DIRECTORATE.

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

                ``TITLE XIX--MISCELLANEOUS PROVISIONS''.

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

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

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

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

``SEC. 602. OFFICE OF INTERNATIONAL AFFAIRS.

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

``SEC. 603. OTHER OFFICES AND OFFICIALS.

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

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

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

                 ``TITLE XIX--MISCELLANEOUS PROVISIONS

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

             TITLE IV--OFFICE OF DOMESTIC NUCLEAR DETECTION

SEC. 401. ESTABLISHMENT OF OFFICE.

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

            ``TITLE XX--OFFICE OF DOMESTIC NUCLEAR DETECTION

``SEC. 2001. DOMESTIC NUCLEAR DETECTION OFFICE.

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

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

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

``SEC. 2003. GLOBAL NUCLEAR DETECTION ARCHITECTURE.

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

``SEC. 2004. RESEARCH AND DEVELOPMENT.

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

``SEC. 2005. SYSTEM ASSESSMENTS.

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

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

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

``SEC. 2007. SITUATIONAL AWARENESS.

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

``SEC. 2008. FORENSIC ANALYSIS.

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

``SEC. 2009. THREAT INFORMATION.

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

``SEC. 2010. ADMINISTRATIVE AUTHORITIES.

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

``SEC. 2011. REPORT REQUIREMENT.

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

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

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

``SEC. 2013. INTERAGENCY COORDINATION COUNCIL.

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

``SEC. 2014. AUTHORIZATION OF APPROPRIATIONS.

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

``SEC. 2015. DEFINITIONS.

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

            ``TITLE XX--OFFICE OF DOMESTIC NUCLEAR DETECTION

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

SEC. 402. NUCLEAR AND RADIOLOGICAL DETECTION SYSTEMS.

    (a) Deployment.--Not later than September 30, 2007, the Secretary 
of Homeland Security shall deploy nuclear and radiological detection 
systems at 22 United States seaports. To the extent feasible, the 
Secretary shall deploy the next-generation radiation portal monitors 
tested in the pilot program under subsection (d) at such United States 
seaports.
    (b) Strategy.--Not later than 90 days after the date of the 
enactment of this Act, the Secretary, acting through the Director of 
the Domestic Nuclear Detection Office of the Department, shall submit 
to the appropriate congressional committees a strategy for the 
deployment of nuclear and radiological detection systems at all 
remaining United States seaports.
    (c) Contents.--The strategy submitted under subsection (b) shall 
include--
            (1) a risk-based prioritization of United States seaports 
        at which nuclear and radiological detection systems will 
        deployed;
            (2) a proposed timeline of when nuclear and radiological 
        detection systems will be deployed at each of the seaports 
        identified under paragraph (1);
            (3) the type of systems to be used at each of the seaports 
        identified under paragraph (1);
            (4) standard operating procedures for examining containers 
        with such systems;
            (5) the Department policy for using nuclear and 
        radiological detection systems;
            (6) a classified annex that details plans for covert 
        testing; and
            (7) a classified annex that outlines the risk-based 
        prioritization of seaports used under paragraph (1).
    (d) Safety Plan.--Not later than 180 days after the date of the 
enactment of this Act, the Secretary shall submit to the appropriate 
congressional committees a plan that--
            (1) details the health and safety impacts of nuclear and 
        radiological detection systems; and
            (2) describes the policy of U.S. Customs and Border 
        Protection for using nuclear and radiological detection 
        systems.
    (e) Pilot Program.--
            (1) In general.--Not later than January 1, 2007, the 
        Secretary, acting through the Director of the Domestic Nuclear 
        Detection Office of the Department, shall initiate a pilot 
        program to deploy and test the operational performance of next-
        generation radiation portal monitors at one or more United 
        States seaports with a high-volume of containerized cargo.
            (2) Report.--Not later than March 31, 2007, the Secretary 
        shall submit to the appropriate congressional committees a 
        report that contains--
                    (A) a description of the next-generation radiation 
                portal monitors deployed at United States seaports 
                under the pilot program;
                    (B) a description of the operational 
                characteristics of the pilot program at selected United 
                States seaports; and
                    (C) an evaluation of the operational performance of 
                the next-generation radiation portal monitors, 
                including nuisance alarm rates, and a description of 
                the standards used in such evaluation.
    (f) Deployment of Next-Generation Radiation Portal Monitors.--
            (1) In general.--If the Secretary, acting through the 
        Director of the Domestic Nuclear Detection Office of the 
        Department, determines that the operational performance of the 
        next-generation radiation portal monitors under the pilot 
        program carried out under subsection (e) has met the standards 
        described subsection (e)(2)(C), the Secretary shall deploy 
        next-generation radiation portal monitors, in fixed or other 
        configurations, at all United States seaports with a high-
        volume of containerized cargo to improve cargo screening 
        capabilities at such seaports not later than September 30, 
        2007.
            (2) Congressional notification.--If any deployment of next-
        generation radiation portal monitors is deemed by the Secretary 
        to be operationally infeasible or would result in ineffective, 
        inefficient, or otherwise wasteful use of resources, the 
        Secretary shall notify the appropriate congressional committees 
        and recommend alternative actions.
    (g) Enhancing Overseas Detection Capabilities.--The Secretary, 
acting through the Director of the Domestic Nuclear Detection Office of 
the Department, shall work with appropriate Federal departments and 
agencies to coordinate the installation of nuclear and radiological 
detection systems at foreign seaports.
    (h) Definitions.--In this section:
            (1) Next-generation radiation portal monitors.--The term 
        ``next-generation radiation portal monitors'' means non-
        intrusive, containerized cargo examination technologies that 
        possess radionuclide isotope identification capabilities.
            (2) Nuclear and radiological detection system.--The term 
        ``nuclear and radiological detection system'' means any 
        technology that is capable of detecting or identifying nuclear 
        and radiological material or explosive devices.
                                                 Union Calendar No. 250

109th CONGRESS

  2d Session

                               H. R. 4954

                          [Report No. 109-447]

_______________________________________________________________________

                                 A BILL

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

_______________________________________________________________________

                              May 1, 2006

Committee on Transportation and Infrastructure discharged; committed to 
the Committee of the Whole House on the State of the Union and ordered 
                             to be printed