[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5695 Introduced in House (IH)]








109th CONGRESS
  2d Session
                                H. R. 5695

     To amend the Homeland Security Act of 2002 to provide for the 
   regulation of certain chemical facilities, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 28, 2006

   Mr. Daniel E. Lungren of California (for himself, Mr. Thompson of 
Mississippi, Mr. Shays, Ms. Loretta Sanchez of California, Mr. Linder, 
Ms. Harman, Mr. McCaul of Texas, Ms. Jackson-Lee of Texas, Mr. Simmons, 
  Mrs. Christensen, and Mr. Fossella) introduced the following bill; 
   which was referred to the Committee on Homeland Security, and in 
 addition to the Committee on Energy and Commerce, for a period to be 
subsequently determined by the Speaker, in each case for consideration 
  of such provisions as fall within the jurisdiction of the committee 
                               concerned

_______________________________________________________________________

                                 A BILL


 
     To amend the Homeland Security Act of 2002 to provide for the 
   regulation of certain chemical facilities, and for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Chemical Facility Anti-Terrorism Act 
of 2006''.

SEC. 2. REGULATION OF CHEMICAL FACILITIES.

    (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--REGULATION OF CHEMICAL FACILITIES

``SEC. 1801. DEFINITIONS.

    ``In this title, the following definitions apply:
            ``(1) The term `environment' has the meaning given the term 
        in section 101 of the Comprehensive Environmental Response 
        Compensation and Liability Act of 1980 (42 U.S.C. 9601).
            ``(2) The term `owner or operator of a chemical facility' 
        means any person who owns, leases, or operates a chemical 
        facility.
            ``(3) The term `release' has the meaning given the term in 
        section 101 of the Comprehensive Environmental Response 
        Compensation and Liability Act of 1980 (42 U.S.C. 9601).
            ``(4) The term `chemical facility security measure' means 
        any action taken to ensure or enhance the security of a 
        chemical facility against a chemical facility terrorist 
        incident, including--
                    ``(A) employee background checks;
                    ``(B) employee training;
                    ``(C) personnel security measures;
                    ``(D) the limitation and prevention of access to 
                controls of the chemical facility;
                    ``(E) protection of the perimeter of the chemical 
                facility or the portion or sector within the facility 
                in which a substance of concern is stored, used or 
                handled, utilizing fences, barriers, guards, or other 
                means;
                    ``(F) installation and operation of cameras or 
                other intrusion detection sensors;
                    ``(G) the implementation of measures to increase 
                computer or computer network security;
                    ``(H) contingency and evacuation plans;
                    ``(I) the relocation or hardening of storage or 
                containment equipment; and
                    ``(J) other security measures to prevent, protect 
                against, or reduce the consequences of a chemical 
                facility terrorist incident, as determined by the 
                Secretary.
            ``(5) The term `substance of concern' means a chemical 
        substance in quantity and form that--
                    ``(A) is listed under paragraph (3) of section 
                112(r) of the Clean Air Act (42 U.S.C. 7412(r)) and has 
                not been exempted from designation as a substance of 
                concern by the Secretary under section 4(a); or
                    ``(B) is designated by the Secretary by regulation 
                in accordance with section 1802(a).
            ``(6) The term `chemical facility terrorist incident' 
        means--
                    ``(A) an act of terrorism committed against a 
                chemical facility;
                    ``(B) the release of a substance of concern from a 
                chemical facility into the surrounding area as a 
                consequence of an act of terrorism; or
                    ``(C) the obtaining of a substance of concern by 
                any person for the purposes of releasing the substance 
                off-site in furtherance of an act of terrorism.

``SEC. 1802. DESIGNATION AND RANKING OF CHEMICAL FACILITIES.

    ``(a) Substances of Concern.--
            ``(1) Designation by the secretary.--The Secretary may--
                    ``(A) designate any chemical substance as a 
                substance of concern;
                    ``(B) exempt any chemical substance from being 
                designated as a substance of concern;
                    ``(C) establish and revise, for purposes of making 
                determinations under subsection (b), the threshold 
                quantity for a chemical substance; or
                    ``(D) require the submission of information with 
                respect to the quantities of substances of concern that 
                are used, stored, manufactured, processed, or 
                distributed by any chemical facility.
            ``(2) Matters for consideration.--
                    ``(A) In general.--In designating or exempting a 
                chemical substance or establishing or adjusting the 
                threshold quantity for a chemical substance under 
                paragraph (1), the Secretary shall consider the 
                potential extent of death, injury, or serious adverse 
                effects to human health, the environment, critical 
                infrastructure, national security, the national 
                economy, or public welfare that would result from a 
                terrorist release of the chemical substance.
                    ``(B) Adoption of certain threshold quantities.--
                The Secretary may adopt the threshold quantity 
                established under paragraph (5) of subsection (r) of 
                section 112 of the Clean Air Act (42 U.S.C. 7412(r)(5)) 
                for any substance of concern that is also listed under 
                paragraph (3) of that subsection.
    ``(b) List of Significant Chemical Facilities.--
            ``(1) In general.--The Secretary shall maintain a list of 
        significant chemical facilities in accordance with this 
        subsection.
            ``(2) Required facilities.--The Secretary shall include on 
        the list maintained under paragraph (1) a chemical facility 
        that has more than the threshold quantity established by the 
        Secretary of any substance of concern.
            ``(3) Authority to designate chemical facilities.--The 
        Secretary may designate a chemical facility not required to be 
        included under paragraph (2) as a significant chemical facility 
        and shall include such a facility on the list maintained under 
        paragraph (1). In designating a chemical facility under this 
        paragraph, the Secretary shall use the following criteria:
                    ``(A) The potential threat or likelihood that the 
                chemical facility will be the target of terrorism.
                    ``(B) The potential extent of death, serious injury 
                or adverse effects to the health and safety of the 
                surrounding population that could result from a 
                chemical facility terrorist incident.
                    ``(C) The nature and quantity of the substances of 
                concern present at the chemical facility.
                    ``(D) The potential threat caused by a person 
                obtaining a substance of concern in furtherance of an 
                act of terrorism.
                    ``(E) The potential harm to critical 
                infrastructure, national security, and the national 
                economy from a chemical facility terrorist incident.
    ``(c) Assignment of Chemical Facilities to Risk-Based Tiers.--
            ``(1) Assignment.--The Secretary shall assign each chemical 
        facility on the list of significant chemical facilities under 
        subsection (b) to one of at least four risk-based tiers 
        established by the Secretary.
            ``(2) Provision of information.--The Secretary may request, 
        and a chemical facility shall provide, any information the 
        Secretary determines is necessary for the Secretary to assign 
        the chemical facility to the appropriate tier under paragraph 
        (1).
            ``(3) Notification.--Not later than 60 days after assigning 
        a chemical facility to a tier under this subsection, the 
        Secretary shall notify the chemical facility of the tier to 
        which the facility is assigned and shall provide the facility 
        with the reasons for assignment of the facility to such tier.
            ``(4) High-risk chemical facilities.--At least one of the 
        tiers established by the Secretary for the assignment of 
        chemical facilities under this subsection shall be a tier 
        designated for high-risk chemical facilities.
    ``(d) Periodic Review of List of Chemical Facilities.--
            ``(1) Requirement.--Not later than 3 years after the date 
        on which the Secretary develops the list of significant 
        chemical facilities under subsection (b)(1) and every 3 years 
        thereafter, the Secretary shall--
                    ``(A) consider the criteria under subsection 
                (b)(3); and
                    ``(B) determine whether to add a chemical facility 
                to the list of significant chemical facilities 
                maintained under subsection (b)(1) or to remove or 
                change the tier assignment of any chemical facility on 
                such list.
            ``(2) Authority to review.--The Secretary may, at any time, 
        after considering the criteria under subsection (b)(3), add a 
        chemical facility to the list of significant chemical 
        facilities maintained under subsection (b)(1) or remove or 
        change the tier assignment of any chemical facility on such 
        list.
            ``(3) Notification.--Not later than 30 days after the date 
        on which the Secretary adds a facility to the list of 
        significant chemical facilities maintained by the Secretary 
        under subsection (b)(1), removes a facility from such list, or 
        changes the tier assignment of any facility on such list, the 
        Secretary shall notify the owner of that facility of that 
        addition, removal, or change.

``SEC. 1803. VULNERABILITY ASSESSMENTS AND FACILITY SECURITY PLANS.

    ``(a) Vulnerability Assessment and Facility Security Plan Required 
for Chemical Facilities.--
            ``(1) Requirement for vulnerability assessment and security 
        plan.--
                    ``(A) Regulations required.--The Secretary shall 
                prescribe regulations to--
                            ``(i) establish standards, protocols, and 
                        procedures for vulnerability assessments and 
                        facility security plans to be required for 
                        chemical facilities on the list maintained by 
                        the Secretary under section 1802(b)(1); and
                            ``(ii) require the owner or operator of 
                        each such facility assigned to the high-risk 
                        tier under section 1802(c)(4), to--
                                    ``(I) conduct an assessment of the 
                                vulnerability of the chemical facility 
                                to a chemical facility terrorist 
                                incident in accordance with section 
                                1803(b)(1); and
                                    ``(II) prepare and implement a 
                                facility security plan that addresses 
                                the results of the vulnerability 
                                assessment in accordance with section 
                                1803(b)(2); and
                            ``(iii) set deadlines for the completion of 
                        vulnerability assessments and facility security 
                        plans.
                    ``(B) Deadline for high-risk chemical facilities.--
                The owner or operator of a facility assigned to the 
                high-risk tier under section 1802(c)(4) shall submit to 
                the Secretary a vulnerability assessment and facility 
                security plan not later than 6 months after the date on 
                which the Secretary prescribes regulations under this 
                subsection.
            ``(2) Criteria for regulations.--The regulations required 
        under paragraph (1) shall--
                    ``(A) be risk-based;
                    ``(B) be performance-based; and
                    ``(C) take into consideration--
                            ``(i) the cost and technical feasibility of 
                        the compliance by a chemical facility with the 
                        requirements under this title;
                            ``(ii) the different quantities and forms 
                        of substances of concern stored, used, and 
                        handled at chemical facilities; and
                            ``(iii) the matters for consideration under 
                        section 1802(a)(2).
            ``(3) Provision of assistance and guidance.--The Secretary 
        shall provide assistance and guidance to a chemical facility 
        conducting a vulnerability assessment or facility security plan 
        required under this section.
    ``(b) Additional Requirements for High-Risk Chemical Facilities.--
            ``(1) Requirements for vulnerability assessments.--In the 
        case of a facility assigned to the high-risk tier under section 
        1802(c)(4), the Secretary shall require that the vulnerability 
        assessment required under this section include each of the 
        following:
                    ``(A) The identification of any hazard that could 
                result from a chemical facility terrorist incident at 
                the facility.
                    ``(B) The number of individuals at risk of death, 
                injury, or severe adverse effects to human health as a 
                result of a chemical facility terrorist incident at the 
                facility.
                    ``(C) Information related to the criticality of the 
                facility for purposes of assessing the degree to which 
                the facility is critical to the economy or national 
                security of the United States.
                    ``(D) The proximity or interrelationship of the 
                facility to other critical infrastructure.
                    ``(E) Any vulnerability of the facility with 
                respect to--
                            ``(i) physical security;
                            ``(ii) programmable electronic devices, 
                        computers, computer or communications networks, 
                        or other automated systems used by the 
                        facility;
                            ``(iii) alarms, cameras, and other 
                        protection systems;
                            ``(iv) communication systems;
                            ``(v) any utility or infrastructure 
                        (including transportation) upon which the 
                        facility relies to operate safely and securely; 
                        or
                            ``(vi) the structural integrity of 
                        equipment for storage, handling, and other 
                        purposes.
                    ``(F) Any information relating to threats relevant 
                to the facility that is provided by the Secretary in 
                accordance with paragraph (3).
                    ``(G) Such other information as the Secretary 
                determines is appropriate.
            ``(2) Requirements for facility security plans.--In the 
        case of a facility assigned to the high-risk tier under section 
        1802(c)(4), the Secretary shall require that the facility 
        security plan required under this section include each of the 
        following:
                    ``(A) Chemical facility security measures to 
                address the vulnerabilities of the facility to a 
                chemical facility terrorist incident.
                    ``(B) A plan for periodic drills and exercises to 
                be conducted at the facility that include participation 
                by local law enforcement agencies and first responders, 
                as appropriate.
                    ``(C) Equipment, plans, and procedures to be 
                implemented or used by or at the chemical facility in 
                the event of a chemical facility terrorist incident 
                that affects the facility, including site evacuation, 
                release mitigation, and containment plans.
                    ``(D) An identification of any steps taken to 
                coordinate with State and local law enforcement 
                agencies, first responders, and Federal officials on 
                security measures and plans for response to a chemical 
                facility terrorist incident.
                    ``(E) A description of other actions or procedures 
                the Secretary determines are appropriate to address the 
                vulnerability of the facility to a chemical facility 
                terrorist incident.
            ``(3) Provision of threat-related information.--The 
        Secretary shall provide in a timely manner, to the maximum 
        extent practicable under applicable authority and in the 
        interests of national security, to an owner or operator of a 
        facility assigned to the high-risk tier under section 
        1802(c)(4), threat information that is relevant to the 
        facility, including an assessment of the most likely method 
        that could be used by terrorists to exploit any vulnerabilities 
        of the facility and the likelihood of the success of such 
        method.
            ``(4) Red team exercises.--The Secretary shall conduct red 
        team exercises at facilities selected by the Secretary that 
        have been assigned to the high-risk tier under section 
        1802(c)(4). The exercises shall be conducted after informing 
        the owner or operator of the facility selected and shall be 
        designed to identify at each selected facility--
                    ``(A) any vulnerabilities of the facility;
                    ``(B) possible modes by which the facility could be 
                attacked; and
                    ``(C) any weaknesses in the security plan of the 
                facility.
    ``(c) Security Performance Requirements.--
            ``(1) In general.--The Secretary shall, by regulation, 
        establish security performance requirements for the facility 
        security plans required by chemical facilities assigned to each 
        risk-based tier established under section 1802(c). The 
        regulations shall:
                    ``(A) require separate and increasingly stringent 
                security performance requirements for facility security 
                plans as the level of risk associated with the tier 
                increases; and
                    ``(B) permit each chemical facility submitting a 
                facility security plan to select a combination of 
                chemical facility security measures that satisfy the 
                security performance requirements established by the 
                Secretary under this subsection.
            ``(2) Criteria.--In establishing the security performance 
        requirements under paragraph (1), the Secretary shall consider 
        the criteria under subsection (a)(2).
            ``(3) Guidance.--The Secretary shall provide guidance to 
        each chemical facility on the list maintained by the Secretary 
        under section 1802(b)(1) regarding the types of chemical 
        facility security measures that, if applied, could satisfy the 
        requirements under this section.
            ``(4) Enhanced security measures.--The Secretary may 
        require chemical facilities to maintain the capability to 
        enhance security measures during periods of time when the 
        Secretary determines that heightened threat conditions exist.
    ``(d) Co-Located Chemical Facilities.--The Secretary shall allow 
the owners or operators of two or more chemical facilities that are 
located geographically close to each other or otherwise co-located to 
develop and implement coordinated vulnerability assessments and 
facility security plans, at the discretion of the owner or operator of 
the chemical facilities.
    ``(e) Procedures, Protocols, and Standards Satisfying Requirements 
for Vulnerability Assessment and Security Plan.--
            ``(1) Determination by the secretary.--In response to a 
        petition by any person, or at the discretion of the Secretary, 
        the Secretary may endorse or recognize procedures, protocols, 
        and standards that the Secretary determines meet all or part of 
        the requirements of this section.
            ``(2) Use of procedures, protocols, and standards.--
                    ``(A) Use by individual facilities.--Upon review 
                and written determination by the Secretary under 
                paragraph (1) that the procedures, protocols, or 
                standards of a chemical facility subject to the 
                requirements of this section satisfy some or all of the 
                requirements of this section, the chemical facility may 
                elect to comply with those procedures, protocols, or 
                standards.
                    ``(B) Use by classes of facilities.--At the 
                discretion of the Secretary, the Secretary may identify 
                a class or category of chemical facilities subject to 
                the requirements of this section that may use the 
                procedures, protocols, or standards recognized under 
                this section in order to comply with all or part of the 
                requirements of this section.
            ``(3) Partial approval.--If the Secretary finds that a 
        procedure, protocol, or standard satisfies only part of the 
        requirements of this section, the Secretary may allow a 
        chemical facility subject to the requirements of this section 
        to comply with that procedure, protocol, or standard for 
        purposes of that requirement, but shall require the facility to 
        submit of any additional information required to satisfy the 
        requirements of this section not met by that procedure, 
        protocol, or standard.
            ``(4) Notification.--If the Secretary does not endorse or 
        recognize a procedure, protocol, or standard for which a 
        petition is submitted under paragraph (1), the Secretary shall 
        provide to the person submitting a petition under paragraph (1) 
        written notification that includes an explanation of the 
        reasons why the endorsement or recognition was not made.
            ``(5) Review.--Nothing in this subsection shall relieve the 
        Secretary (or a designee of the Secretary which may be a third 
        party auditor certified by the Secretary) of the obligation--
                    ``(A) to review a vulnerability assessment and 
                facility security plan submitted by a high-risk 
                chemical facility under this section; and
                    ``(B) to approve or disapprove each assessment or 
                plan on an individual basis.
    ``(f) Other Authorities.--
            ``(1) Existing authorities.--A chemical facility on the 
        list maintained by the Secretary under section 1802(a)(1) that 
        is required to prepare a vulnerability assessment and facility 
        security plan under the provisions of chapter 701 of title 46, 
        United States Code, or section 1433 of the Safe Drinking Water 
        Act (42 U.S.C. 300i-2) shall not be subject to the requirements 
        of this section, unless the Secretary, after reviewing the 
        vulnerability assessment or facility security plan prepared by 
        the chemical facility, finds, in consultation with the 
        appropriate authorities, that the chemical facility requires 
        more stringent security measures.
            ``(2) Coordination.--In the case of any facility required 
        to be licensed under chapter 40 of title 18, United States 
        Code, the Secretary shall prescribe the rules and regulations 
        for the implementation of this section with the concurrence of 
        the Attorney General and avoid unnecessary duplication of 
        regulatory requirements.
    ``(g) Periodic Review by Chemical Facility Required.--
            ``(1) Submission of review.--Not later than 3 years after 
        the date on which a vulnerability assessment or facility 
        security plan required under this section is submitted, and at 
        least once every 5 years thereafter (or on such a schedule as 
        the Secretary may establish by regulation), the owner or 
        operator of the chemical facility covered by the vulnerability 
        assessment or facility security plan shall submit to the 
        Secretary a review of the adequacy of the vulnerability 
        assessment or facility security plan that includes a 
        description of any changes made to the vulnerability assessment 
        or facility security plan.
            ``(2) Review of review.--The Secretary shall--
                    ``(A) ensure that a review required under paragraph 
                (1) is submitted not later than the applicable date; 
                and
                    ``(B) not later than 6 months after the date on 
                which a review is submitted under paragraph (1), review 
                the review and notify the facility submitting the 
                review of the Secretary's approval or disapproval of 
                the review.

``SEC. 1804. RECORD KEEPING; SITE INSPECTIONS.

    ``(a) Record Keeping.--The Secretary shall require each chemical 
facility required to submit a vulnerability assessment or facility 
security plan under section 1803 to maintain a current copy of the 
assessment and the plan at the facility.
    ``(b) Right of Entry.--For purposes of carrying out this title, the 
Secretary (or a designee of the Secretary) shall have, on presentation 
of credentials, a right of entry to, on, or through any property of a 
chemical facility on the list maintained by the Secretary under section 
1802(a)(1) or any property on which any record required to be 
maintained under this section is located.
    ``(c) Inspections and Verifications.--The Secretary shall, at such 
time and place as the Secretary determines to be appropriate, conduct 
or require the conduct of facility security inspections and 
verifications and may, by regulation, authorize third party inspections 
and verifications by persons trained and certified by the Secretary for 
that purpose. Such an inspection or verification shall ensure and 
evaluate compliance with--
            ``(1) this title and any regulations prescribed to carry 
        out this title; and
            ``(2) any security standards or requirements adopted by the 
        Secretary in furtherance of the purposes of this title.
    ``(d) Requests for Records.--In carrying out this title, the 
Secretary (or a designee of the Secretary) may require the submission 
of or, on presentation of credentials, may at reasonable times obtain 
access to and copy any documentation necessary for--
            ``(1) reviewing or analyzing a vulnerability assessment or 
        facility security plan submitted under section 1803; or
            ``(2) implementing such a facility security plan.
    ``(e) Compliance.--If the Secretary determines that an owner or 
operator of a chemical facility required to submit a vulnerability 
assessment or facility security plan under section 1803 fails to 
maintain, produce, or allow access to records or to the property of the 
chemical facility as required by this section, the Secretary shall 
issue an order requiring compliance with this section.

``SEC. 1805. ENFORCEMENT.

    ``(a) Submission of Information.--
            ``(1) Initial submission.--The Secretary shall specify in 
        regulations prescribed under section 1803(a), specific 
        deadlines for the submission of the vulnerability assessments 
        and facility security plans required under this title to the 
        Secretary. The Secretary may establish different submission 
        requirements for the different tiers of chemical facilities 
        under section 1802(c).
            ``(2) Major changes requirement.--The Secretary shall 
        specify in regulations prescribed under section 1803(a), 
        specific deadlines and requirements for the submission by a 
        facility required to submit a vulnerability assessment or 
        facility security plan under that section of information 
        describing--
                    ``(A) any change in the use by the facility of more 
                than a threshold amount of any substance of concern; 
                and
                    ``(B) any significant change in a vulnerability 
                assessment or facility security plan submitted by the 
                facility.
            ``(3) Failure to comply.--If an owner or operator of a 
        chemical facility fails to submit a vulnerability assessment or 
        facility security plan in accordance with this title, the 
        Secretary shall issue an order requiring the submission of a 
        vulnerability assessment or facility security plan in 
        accordance with section 1804(e).
    ``(b) Review of Security Plan.--
            ``(1) In general.--
                    ``(A) Deadline for review.--Not later than 180 days 
                after the date on which the Secretary receives a 
                vulnerability assessment or facility security plan 
                under this title, the Secretary shall review and 
                approve or disapprove such assessment or plan.
                    ``(B) Designee.--The Secretary may designate a 
                person (including a third party entity certified by the 
                Secretary) to conduct a review under this subsection.
            ``(2) Disapproval.--The Secretary shall disapprove a 
        vulnerability assessment or facility security plan if the 
        Secretary determines that--
                    ``(A) the vulnerability assessment or facility 
                security plan does not comply with regulations 
                prescribed under section 1803; or
                    ``(B) in the case of a facility security plan, the 
                plan or the implementation of the plan is insufficient 
                to address--
                            ``(i) any vulnerabilities identified in a 
                        vulnerability assessment of the chemical 
                        facility or associated oversight actions taken 
                        under section 1803; or
                            ``(ii) the threat of a chemical facility 
                        terrorist incident at the chemical facility.
            ``(3) Specific security measures not required.--The 
        Secretary shall not disapprove a facility security plan under 
        this section based solely on the specific chemical facility 
        security measures that the chemical facility selects to meet 
        the security performance requirements established by the 
        Secretary under section 1803(c).
            ``(4) Provision of notification of disapproval.--If the 
        Secretary disapproves the vulnerability assessment or facility 
        security plan submitted by a chemical facility under this title 
        or the implementation of a facility security plan by such a 
        facility, the Secretary shall--
                    ``(A) provide the owner or operator of the facility 
                a written notification of the disapproval that includes 
                a clear explanation of deficiencies in the assessment, 
                plan, or implementation of the plan;
                    ``(B) provide guidance to assist the facility in 
                addressing such deficiency;
                    ``(C) in the case of a facility for which the owner 
                or operator of the facility does not address such 
                deficiencies by such date as the Secretary determines 
                to be appropriate, issue an order requiring the owner 
                or operator to correct specified deficiencies by a 
                specified date; and
                    ``(D) in the case of a facility assigned to the 
                high-risk tier under section 1802(c)(4), consult with 
                the owner or operator the facility to identify 
                appropriate steps to be taken by the owner or operator 
                to address the deficiencies identified by the 
                Secretary.
            ``(5) Revision of disapproved assessment or plan.--If the 
        Secretary disapproves a vulnerability assessment or facility 
        security plan submitted under this title, the Secretary shall 
        require the owner or operator of the chemical facility that 
        submitted the assessment or plan to revise the assessment or 
        plan to address any deficiencies identified by the Secretary 
        and to submit to the Secretary the revised assessment or plan.
            ``(6) No private right of action.--Nothing in this title 
        confers upon any private person a right of action against an 
        owner or operator of a chemical facility to enforce any 
        provision of this title.
    ``(c) Reporting Process.--
            ``(1) Establishment.--The Secretary shall establish, and 
        provide information to the public regarding, a process by which 
        any person may submit a report to the Secretary regarding 
        problems, deficiencies, or vulnerabilities at a chemical 
        facility.
            ``(2) Confidentiality.--The Secretary shall keep 
        confidential the identity of a person that submits a report 
        under paragraph (1) and any such report shall be treated as 
        protected information under section 1808(f) to the extent that 
        it does not consist of publicly available information.
            ``(3) Acknowledgment of receipt.--If a report submitted 
        under paragraph (1) identifies the person submitting the 
        report, the Secretary shall respond promptly to such person to 
        acknowledge receipt of the report.
            ``(4) Steps to address problems.--The Secretary shall 
        review and consider the information provided in any report 
        submitted under paragraph (1) and shall take appropriate steps 
        under this title to address any problem, deficiency, or 
        vulnerability identified in the report.
            ``(5) Retaliation prohibited.--
                    ``(A) Prohibition.--No employer may discharge any 
                employee or otherwise discriminate against any employee 
                with respect to the compensation of, or terms, 
                conditions, or privileges of the employment of, such 
                employee because the employee (or a person acting 
                pursuant to a request of the employee) submitted a 
                report under paragraph (1).
                    ``(B) Enforcement process.--The Secretary shall 
                establish--
                            ``(i) a process by which an employee can 
                        notify the Secretary of any retaliation 
                        prohibited under this paragraph; and
                            ``(ii) a process by which the Secretary may 
                        take action as appropriate to enforce this 
                        section.

``SEC. 1806. PENALTIES.

    ``(a) Administrative Penalties.--
            ``(1) In general.--The Secretary may issue an 
        administrative penalty of not more than $250,000 for failure to 
        comply with an order issued by the Secretary under this title.
            ``(2) Provision of notice.--Before issuing a penalty under 
        paragraph (1), the Secretary shall provide to the person 
        against which the penalty is to be assessed--
                    ``(A) written notice of the proposed penalty; and
                    ``(B) the opportunity to request, not later than 30 
                days after the date on which the notice is received, a 
                hearing on the proposed penalty.
            ``(3) Procedures for review.--The Secretary may prescribe 
        regulations outlining the procedures for administrative 
        hearings and appropriate review, including necessary deadlines.
    ``(b) Civil Penalties.--
            ``(1) In general.--The Secretary may bring an action in a 
        United States district court against any owner or operator of a 
        chemical facility that violates or fails to comply with--
                    ``(A) any order or directive issued by the 
                Secretary under this title; or
                    ``(B) any facility security plan approved by the 
                Secretary under this title.
            ``(2) Relief.--In any action under paragraph (1), a court 
        may issue an order for injunctive relief and may award a civil 
        penalty of not more than $50,000 for each day on which a 
        violation occurs or a failure to comply continues.
    ``(c) Criminal Penalties.--An owner or operator of a chemical 
facility who knowingly and intentionally violates any order issued by 
the Secretary under this title shall be fined not more than $100,000, 
imprisoned for not more than 1 year, or both.
    ``(d) Treatment of Information in Adjudicative Proceedings.--In a 
proceeding under this section, vulnerability assessments, facility 
security plans, and other information submitted to or obtained by the 
Secretary under this title, or related vulnerability or security 
information, shall be treated in any judicial or administrative action 
as if the information were classified material.

``SEC. 1807. FEDERAL PREEMPTION.

    ``(a) In General.--A State or local government may not prescribe, 
issue, or continue in effect a law, regulation, standard or order that 
may frustrate the purposes of this title or any regulations or 
standards prescribed under this title.
    ``(b) Application for Review.--A person, State, or local government 
directly affected by a requirement of a State or local government may 
submit to the Secretary, as provided in regulations that the Secretary 
shall prescribe, an application asking the Secretary to decide whether 
the requirement is preempted by this title.

``SEC. 1808. PROTECTION OF INFORMATION.

    ``(a) Prohibition of Public Disclosure of Protected Information.--
            ``(1) In general.--The Secretary shall ensure that 
        protected information, as described in subsection (f), is not 
        disclosed except as provided in this title.
            ``(2) Specific prohibitions.--In carrying out paragraph 
        (1), the Secretary shall ensure that protected information is 
        not disclosed--
                    ``(A) by any Federal agency under section 552 of 
                title 5, United States Code; or
                    ``(B) under any State or local law.
    ``(b) Regulations.--
            ``(1) In general.--Not later than 1 year after the date of 
        enactment of the Chemical Facility Anti-Terrorism Act of 2006, 
        the Secretary shall prescribe such regulations, or issue such 
        orders, as necessary to prohibit the unauthorized disclosure of 
        protected information, as described in subsection (f).
            ``(2) Requirements.--The regulations prescribed under 
        paragraph (1) shall--
                    ``(A) permit information sharing, on a confidential 
                basis, with Federal, State and local law enforcement 
                officials and first responders and chemical facility 
                personnel, as necessary to further the purposes of this 
                title;
                    ``(B) provide for the confidential use of protected 
                information in any administrative or judicial 
                proceeding, including placing under seal any such 
                information that is contained in any filing, order, or 
                other document used in such proceedings that could 
                otherwise become part of the public record; and
                    ``(C) limit access to protected information to 
                persons designated by the Secretary.
    ``(c) Other Obligations Unaffected.--Nothing in this section 
affects any obligation of the owner or operator of a chemical facility 
to submit or make available information to a Federal, State, or local 
government agency under, or otherwise to comply with, any other law.
    ``(d) Submission of Information to Congress.--Nothing in this title 
shall be construed as authorizing the withholding of any information 
from Congress.
    ``(e) Disclosure of Independently Furnished Information.--Nothing 
in this title shall be construed as affecting any authority or 
obligation of a Federal agency to disclose any record or information 
that the Federal agency obtains from a chemical facility under any 
other law.
    ``(f) Protected Information.--For purposes of this section, 
protected information includes the following:
            ``(1) The criteria and data used by the Secretary to assign 
        chemical facilities to risk-based tiers under section 1802 and 
        the tier to which each such facility is assigned.
            ``(2) The vulnerability assessments and facility security 
        plans submitted to the Secretary under this title.
            ``(3) Information concerning the security performance 
        requirements for a chemical facility under section 1803(c).
            ``(4) Any other information generated or collected by a 
        Federal, State, or local government agency or by a chemical 
        facility for the purpose of carrying out or complying with this 
        title that--
                    ``(A) describes any vulnerability of a chemical 
                facility to an act of terrorism;
                    ``(B) describes the assignment of any chemical 
                facility to a risk-based tier under this title;
                    ``(C) describes any security measure (including any 
                procedure, equipment, training, or exercise) for the 
                protection of a chemical facility from an act of 
                terrorism; or
                    ``(D) the disclosure of which the Secretary 
                determines would be detrimental to the security of any 
                chemical facility.

``SEC. 1809. CERTIFICATION OF THIRD-PARTY ENTITIES.

    ``(a) Certification of Third-Party Auditors.--The Secretary may 
designate a third-party entity to carry out any function under 
subsection (e)(5) of section 1803, subsection (b) or (c) of section 
1804, or subsection (b)(1) of section 1805.
    ``(b) Procedures and Requirements for Private Entities.--Before 
designating a third-party entity to carry out a function under 
subsection (a), the Secretary shall--
            ``(1) develop, document, and update, as necessary, minimum 
        standard operating procedures and requirements applicable to 
        such entities designated under subsection (a), including--
                    ``(A) conducting a 90-day independent review of the 
                procedures and requirements (or updates thereto) and 
                the results of the analyses of such procedures (or 
                updates thereto) pursuant to subtitle G; and
                    ``(B) upon completion of the independent review 
                under subparagraph (A), designating any procedure or 
                requirement (or any update thereto) as a qualified 
                anti-terrorism technology pursuant to section 862(b); 
                and
            ``(2) conduct safety and hazard analyses of the standard 
        operating procedures and requirements developed under paragraph 
        (1).
    ``(c) Technical Review and Approval.--Not later than 60 days after 
the date on which the results of the safety and hazard analysis of the 
standard operating procedures and requirements are completed under 
paragraph (1)(B), the Secretary shall
            ``(1) complete a technical review of the procedures and 
        requirements (or updates thereto) under sections 862(b) and 
        863(d)(2); and
            ``(2) approve or disapprove such procedures and 
        requirements (or updates thereto).
    ``(d) Effect of Approval.--
            ``(1) Issuance of certificate of conformance.--In 
        accordance with section 863(d)(3), the Secretary shall issue a 
        certificate of conformance to a third-party entity to perform a 
        function under subsection (a) 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) approved by the 
                Secretary under subsection (c)(2); and
                    ``(B) agrees to--
                            ``(i) perform such function in accordance 
                        with such standard operating procedures and 
                        requirements (or updates thereto); and
                            ``(ii) maintain liability insurance 
                        coverage at policy limits and in accordance 
                        with conditions to be established by the 
                        Secretary pursuant to section 864; and
                    ``(C) signs an agreement to protect the proprietary 
                and confidential information of any chemical facility 
                with respect to which the entity will perform such 
                function.
            ``(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 and 
        receives a certificate of conformance under paragraph (1) shall 
        receive all applicable litigation and risk management 
        protections under sections 863 and 864.
            ``(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 
        any function performed by the third-party entity under 
        subparagraph (a).
            ``(4) Information for establishing limits of liability 
        insurance.--A third-party entity seeking a certificate of 
        conformance under paragraph (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).
    ``(e) Monitoring.--The Secretary shall regularly monitor and 
inspect the operations of a third-party entity that performs a function 
under subparagraph (a) to ensure that the entity is meeting the minimum 
standard operating procedures and requirements established under 
subsection (b) and any other applicable requirement under this section.

``SEC. 1810. ANNUAL REPORT TO CONGRESS.

    ``(a) Annual Report.--Not later than one year after the date of 
enactment of the Chemical Facility Anti-Terrorism Act of 2006 and 
annually thereafter, the Secretary shall publish a report on progress 
in achieving compliance with this title, including--
            ``(1) an assessment of the effectiveness of the facility 
        security plans developed under this title;
            ``(2) any lessons learned in implementing this title; and
            ``(3) any recommendations of the Secretary to improve the 
        programs, plans, and procedures under this title.
    ``(b) Protected Information.--A report under this section may not 
include information protected under section 1808.

``SEC. 1811. APPLICABILITY.

    ``This title shall not apply to--
            ``(1) any facility that is owned and operated by the 
        Department of Defense, the Department of Justice, or the 
        Department of Energy;
            ``(2) the transportation in commerce, including incidental 
        storage, of any substance of concern regulated as a hazardous 
        material under chapter 51 of title 49, United States Code; or
            ``(3) any facility that is owned or operated by a licensee 
        or certificate holder of the Nuclear Regulatory Commission.

``SEC. 1812. SAVINGS CLAUSE.

    ``Nothing in this title is intended to affect section 112 of the 
Clean Air Act (42 U.S.C. 7412), the Clean Water Act, the Resource 
Conservation and Recovery Act, and the National Environmental Policy 
Act of 1969.''.
    (b) Clerical Amendment.--The table of contents in section 1(b) of 
such Act is amended by adding at the end the following:

            ``TITLE XVIII--REGULATION OF CHEMICAL FACILITIES

        ``Sec. 1801. Definitions.
        ``Sec. 1802. Designation and ranking of chemical facilities.
        ``Sec. 1803. Vulnerability assessments and facility security 
                            plans.
        ``Sec. 1804. Record keeping; site inspections.
        ``Sec. 1805. Enforcement.
        ``Sec. 1806. Penalties.
        ``Sec. 1807. Federal preemption.
        ``Sec. 1808. Protection of information.
        ``Sec. 1809. Certification of third-party auditors.
        ``Sec. 1810. Annual report to Congress.
        ``Sec. 1811. Applicability.
        ``Sec. 1812. Savings clause.

SEC. 3. REPORT TO CONGRESS.

    (a) Updated Report.--Not later than 1 year after the date of 
enactment of this Act, the Secretary of Homeland Security shall submit 
to the Committee on Homeland Security of the House of Representatives 
and the Committee on Homeland Security and Governmental Affairs of the 
Senate an update of the national strategy for the chemical sector that 
is required to be submitted by the Secretary to the Committee on 
Appropriations of the House of Representatives and the Committee of 
Appropriations of the Senate by not later than February 10, 2006.
    (b) Protected Information.--A report under this section may not 
include information protected under section 1808 of the Homeland 
Security Act of 2002, as added by section 3.

SEC. 4. INSPECTOR GENERAL REPORT.

    (a) Report Required.--Not later than 1 year after the date on which 
the regulations required to be prescribed under this Act are 
prescribed, the Inspector General of the Department of Homeland 
Security shall submit a report to the Committee on Homeland Security of 
the House of Representatives and the Committee on Homeland Security and 
Governmental Affairs of the Senate that reviews the effectiveness of 
the implementation of this Act, including the effectiveness of facility 
security plans required under this Act and any recommendations to 
improve the programs, plans, and procedures required under this Act.
    (b) Classified Annex.--The Inspector General may issue a classified 
annex to the report if the Inspector General determines a classified 
annex is necessary.

SEC. 5. DEADLINE FOR REGULATIONS.

    The Secretary shall prescribe the regulations required to be 
prescribed under section 1803(a) of the Homeland Security Act of 2002, 
as added by section 1(a), by not later than one year after the date of 
the enactment of this Act.
                                 <all>