[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 3405 Reported in Senate (RS)]

<DOC>





                                                       Calendar No. 670
115th CONGRESS
  2d Session
                                S. 3405

                          [Report No. 115-384]

 To reauthorize the Chemical Facility Anti-Terrorism Standards Program 
                of the Department of Homeland Security.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           September 4, 2018

 Mr. Johnson (for himself, Mrs. Capito, and Mr. Daines) introduced the 
 following bill; which was read twice and referred to the Committee on 
               Homeland Security and Governmental Affairs

                           November 26, 2018

               Reported by Mr. Johnson, with an amendment
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

_______________________________________________________________________

                                 A BILL


 
 To reauthorize the Chemical Facility Anti-Terrorism Standards Program 
                of the Department of Homeland Security.

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

<DELETED>SECTION 1. SHORT TITLE; TABLE OF CONTENTS.</DELETED>

<DELETED>    (a) Short Title.--This Act may be cited as the 
``Protecting and Securing Chemical Facilities from Terrorist Attacks 
Act of 2018''.</DELETED>
<DELETED>    (b) Table of Contents.--The table of contents for this Act 
is as follows:</DELETED>

<DELETED>Sec. 1. Short title; table of contents.
<DELETED>Sec. 2. Definitions.
<DELETED>Sec. 3. Risk-based performance standards.
<DELETED>Sec. 4. Expedited approval program.
<DELETED>Sec. 5. CFATS Recognition Program.
<DELETED>Sec. 6. Frequency of audits and inspections.
<DELETED>Sec. 7. Personnel surety program.
<DELETED>Sec. 8. Security risk assessment approach and corresponding 
                            tiering methodology.
<DELETED>Sec. 9. Annual performance reporting.
<DELETED>Sec. 10. CFATS regulations.
<DELETED>Sec. 11. Small covered chemical facilities.
<DELETED>Sec. 12. Explosive materials.
<DELETED>Sec. 13. Changes in Appendix A to part 27 of title 6, Code of 
                            Federal Regulations.
<DELETED>Sec. 14. Assessment, report, briefing, and updated 
                            retrospective estimate on costs.
<DELETED>Sec. 15. Effective date.
<DELETED>Sec. 16. Termination.
<DELETED>Sec. 17. Technical and conforming amendment.

<DELETED>SEC. 2. DEFINITIONS.</DELETED>

<DELETED>    Section 2101 of the Homeland Security Act of 2002 (6 
U.S.C. 621) is amended--</DELETED>
        <DELETED>    (1) in paragraph (2)(A), by striking ``, or that 
        the Secretary has a reasonable basis to believe holds,''; 
        and</DELETED>
        <DELETED>    (2) in paragraph (8), by striking ``section 
        2102(c)(4)(B)(i)'' and inserting ``section 2102(c)(4) by the 
        Secretary that identifies specific security measures that are 
        sufficient to meet the risk-based performance standards for 
        facilities in tiers 3 and 4 that elect to utilize the expedited 
        approval program''.</DELETED>

<DELETED>SEC. 3. RISK-BASED PERFORMANCE STANDARDS.</DELETED>

<DELETED>    Section 2102 of the Homeland Security Act of 2002 (6 
U.S.C. 622) is amended--</DELETED>
        <DELETED>    (1) in subsection (a)--</DELETED>
                <DELETED>    (A) in paragraph (2)(C), by inserting ``, 
                evaluate, and maintain'' after ``establish''; 
                and</DELETED>
                <DELETED>    (B) by adding at the end the 
                following:</DELETED>
        <DELETED>    ``(3) Limitation.--The risk-based performance 
        standards established under paragraph (2)(C) shall not include 
        any standard relating to cybersecurity.'';</DELETED>
        <DELETED>    (2) in subsection (b)(2)--</DELETED>
                <DELETED>    (A) by striking ``at least'' and inserting 
                ``not less than'';</DELETED>
                <DELETED>    (B) by inserting ``not less than'' before 
                ``1 employee representative''; and</DELETED>
                <DELETED>    (C) by striking ``as pertains'' and 
                inserting ``pertaining''; and</DELETED>
        <DELETED>    (3) in subsection (c)(3), by striking subparagraph 
        (B) and inserting the following:</DELETED>
                <DELETED>    ``(B) Previously approved plans.--The 
                Secretary may not require a covered chemical facility 
                to resubmit a site security plan--</DELETED>
                        <DELETED>    ``(i) in the case of a covered 
                        chemical facility for which the Secretary 
                        approved the site security plan before the date 
                        of enactment of the Protecting and Securing 
                        Chemical Facilities from Terrorist Attacks Act 
                        of 2014 (Public Law 113-254; 128 Stat. 2898), 
                        solely by reason of the enactment of that Act; 
                        or</DELETED>
                        <DELETED>    ``(ii) in the case of a covered 
                        chemical facility for which the Secretary 
                        approved the site security plan before the date 
                        of enactment of the Protecting and Securing 
                        Chemical Facilities from Terrorist Attacks Act 
                        of 2018, solely by reason of the enactment of 
                        that Act or any amendment made by that 
                        Act.''.</DELETED>

<DELETED>SEC. 4. EXPEDITED APPROVAL PROGRAM.</DELETED>

<DELETED>    Section 2102(c)(4) of the Homeland Security Act of 2002 (6 
U.S.C. 622(c)(4)) is amended--</DELETED>
        <DELETED>    (1) in subparagraph (A)(i), by striking 
        ``subparagraph (C)'' and inserting ``subparagraph 
        (C)(i)'';</DELETED>
        <DELETED>    (2) in subparagraph (B)--</DELETED>
                <DELETED>    (A) in clause (i), by striking ``Not later 
                than'' and all that follows through ``the Secretary 
                shall issue'' and inserting ``The Secretary shall 
                maintain''; and</DELETED>
                <DELETED>    (B) by striking clause (iii);</DELETED>
        <DELETED>    (3) in subparagraph (C)--</DELETED>
                <DELETED>    (A) in clause (iii), by redesignating 
                subclauses (I) through (III) as items (aa) through 
                (cc), respectively, and adjusting the margins 
                accordingly;</DELETED>
                <DELETED>    (B) by redesignating clauses (i) through 
                (viii) as subclauses (I) through (VIII), respectively, 
                and adjusting the margins accordingly;</DELETED>
                <DELETED>    (C) in the matter preceding subclause (I), 
                as so redesignated, by striking ``The owner'' and 
                inserting the following:</DELETED>
                        <DELETED>    ``(i) In general.--The owner''; 
                        and</DELETED>
                <DELETED>    (D) by adding at the end the 
                following:</DELETED>
                        <DELETED>    ``(ii) Risk-based performance 
                        standards.--In submitting a site security plan 
                        and certification under subparagraph (A)(i), an 
                        owner or operator of an expedited approval 
                        facility should consider using the guidance for 
                        expedited approval facilities to determine 
                        appropriate measures for the site security plan 
                        of the expedited approval 
                        facility.'';</DELETED>
        <DELETED>    (4) in subparagraph (D)--</DELETED>
                <DELETED>    (A) in clause (i), by striking 
                ``subparagraph (C)'' and inserting ``subparagraph 
                (C)(i)''; and</DELETED>
                <DELETED>    (B) in clause (iii)--</DELETED>
                        <DELETED>    (i) by striking ``30'' and 
                        inserting ``7''; and</DELETED>
                        <DELETED>    (ii) by striking ``subparagraph 
                        (C)'' and inserting ``subparagraph 
                        (C)(i)'';</DELETED>
        <DELETED>    (5) in subparagraph (F)(i)(I), by striking 
        ``subparagraph (C)'' and inserting ``subparagraph (C)(i)''; 
        and</DELETED>
        <DELETED>    (6) by striking subparagraph (I) and inserting the 
        following:</DELETED>
                <DELETED>    ``(I) Notice by the secretary.--The 
                Secretary shall provide notice to each covered chemical 
                facility of the expedited approval program under this 
                paragraph.''.</DELETED>

<DELETED>SEC. 5. CFATS RECOGNITION PROGRAM.</DELETED>

<DELETED>    Section 2102(c) of the Homeland Security Act of 2002 (6 
U.S.C. 622(c)) is amended by adding the following at the end:</DELETED>
        <DELETED>    ``(5) CFATS recognition program.--</DELETED>
                <DELETED>    ``(A) Definitions.--In this paragraph--
                </DELETED>
                        <DELETED>    ``(i) the term `CFATS Recognition 
                        Program' means the program established under 
                        subparagraph (B);</DELETED>
                        <DELETED>    ``(ii) the term `industry 
                        stewardship program' means an industry 
                        stewardship program that provides regulatory 
                        recognition to covered chemical facilities that 
                        meet industry best practices;</DELETED>
                        <DELETED>    ``(iii) the term `participating 
                        facility' means a covered chemical facility 
                        that is a member of an industry stewardship 
                        program; and</DELETED>
                        <DELETED>    ``(iv) the term `sponsor 
                        organization' means the governing body of an 
                        industry stewardship program.</DELETED>
                <DELETED>    ``(B) Establishment.--</DELETED>
                        <DELETED>    ``(i) In general.--Not later than 
                        180 days after the date of enactment of this 
                        paragraph, the Secretary shall establish a 
                        program that shall be known as the CFATS 
                        Recognition Program--</DELETED>
                                <DELETED>    ``(I) with the goal of 
                                leveraging CFATS regulations and 
                                industry stewardship programs to 
                                further enhance security relating to 
                                hazardous chemicals; and</DELETED>
                                <DELETED>    ``(II) under which the 
                                Secretary shall--</DELETED>
                                        <DELETED>    ``(aa) establish--
                                        </DELETED>

                                                <DELETED>    ``(AA) 
                                                eligibility criteria 
                                                under subparagraph 
                                                (C)(i) for industry 
                                                stewardship programs 
                                                seeking to participate 
                                                in the CFATS 
                                                Recognition Program; 
                                                and</DELETED>

                                                <DELETED>    ``(BB) 
                                                performance 
                                                requirements under 
                                                subparagraph (C)(ii) 
                                                for participating 
                                                facilities; 
                                                and</DELETED>

                                        <DELETED>    ``(bb) provide 
                                        incentives under subparagraph 
                                        (C)(iii) to encourage 
                                        participation in the CFATS 
                                        Recognition Program.</DELETED>
                        <DELETED>    ``(ii) Applicability of other 
                        laws.--During the period before the Secretary 
                        has met the deadline under clause (i), in 
                        developing and issuing, or amending, the 
                        guidance relating to carrying out the CFATS 
                        Recognition Program and collecting information 
                        from industry stewardship programs, sponsor 
                        organizations, and participating facilities, 
                        the Secretary shall not be subject to--
                        </DELETED>
                                <DELETED>    ``(I) section 553 of title 
                                5, United States Code;</DELETED>
                                <DELETED>    ``(II) subchapter I of 
                                chapter 35 of title 44, United States 
                                Code; or</DELETED>
                                <DELETED>    ``(III) section 2107(b) of 
                                this Act.</DELETED>
                <DELETED>    ``(C) Eligibility criteria; facility 
                performance requirements; incentives.--</DELETED>
                        <DELETED>    ``(i) Eligibility criteria for 
                        industry stewardship programs.--Not later than 
                        180 days after the date of enactment of this 
                        paragraph, the Secretary shall establish 
                        minimum eligibility criteria for industry 
                        stewardship programs desiring to be considered 
                        by the Secretary for participation in the CFATS 
                        Recognition Program that shall include--
                        </DELETED>
                                <DELETED>    ``(I) a requirement that 
                                any industry stewardship program 
                                desiring to participate in the CFATS 
                                Recognition Program be governed by an 
                                industry association or technical 
                                organization that is an entity 
                                described in paragraph (3) or (6) of 
                                section 501(c) of the Internal Revenue 
                                Code of 1986;</DELETED>
                                <DELETED>    ``(II) a documented top 
                                management commitment to chemical 
                                facility security; and</DELETED>
                                <DELETED>    ``(III) criteria relating 
                                to--</DELETED>
                                        <DELETED>    ``(aa) program 
                                        auditing requirements and 
                                        frequency;</DELETED>
                                        <DELETED>    ``(bb) security 
                                        vulnerability assessment 
                                        requirements and 
                                        frequency;</DELETED>
                                        <DELETED>    ``(cc) security 
                                        measures, including--</DELETED>

                                                <DELETED>    ``(AA) 
                                                detection 
                                                measures;</DELETED>

                                                <DELETED>    ``(BB) 
                                                delay 
                                                measures;</DELETED>

                                                <DELETED>    ``(CC) 
                                                response measures; 
                                                and</DELETED>

                                                <DELETED>    ``(DD) 
                                                security management; 
                                                and</DELETED>

                                        <DELETED>    ``(dd) reporting 
                                        required to be done by any 
                                        industry stewardship program 
                                        desiring to participate in the 
                                        CFATS Recognition 
                                        Program.</DELETED>
                        <DELETED>    ``(ii) Performance requirements 
                        for participating facilities.--Not later than 
                        180 days after the date of enactment of this 
                        paragraph, the Secretary shall require that 
                        each participating facility--</DELETED>
                                <DELETED>    ``(I) submit an 
                                acknowledgment by the sponsor 
                                organization of the industry steward 
                                program, of which the participating 
                                facility is a member, that the 
                                participating facility is--</DELETED>
                                        <DELETED>    ``(aa) a member in 
                                        good standing of the industry 
                                        stewardship program; 
                                        and</DELETED>
                                        <DELETED>    ``(bb) in full 
                                        compliance with the 
                                        requirements of the industry 
                                        stewardship program;</DELETED>
                                <DELETED>    ``(II) assess any security 
                                vulnerability of the participating 
                                facility using a formal recognized 
                                methodology--</DELETED>
                                        <DELETED>    ``(aa) in the 
                                        initial security vulnerability 
                                        assessment of the participating 
                                        facility;</DELETED>
                                        <DELETED>    ``(bb) not less 
                                        than every 3 years after the 
                                        initial security vulnerability 
                                        assessment of the participating 
                                        facility; and</DELETED>
                                        <DELETED>    ``(cc) if there is 
                                        a significant change to the 
                                        security measures of the 
                                        participating facility; 
                                        and</DELETED>
                                <DELETED>    ``(III) develop and 
                                maintain a site security plan that--
                                </DELETED>
                                        <DELETED>    ``(aa) addresses 
                                        any security vulnerability of 
                                        the participating facility; 
                                        and</DELETED>
                                        <DELETED>    ``(bb) includes 
                                        security measures, including--
                                        </DELETED>

                                                <DELETED>    ``(AA) 
                                                detection 
                                                measures;</DELETED>

                                                <DELETED>    ``(BB) 
                                                delay 
                                                measures;</DELETED>

                                                <DELETED>    ``(CC) 
                                                response measures; 
                                                and</DELETED>

                                                <DELETED>    ``(DD) 
                                                security 
                                                management.</DELETED>

                        <DELETED>    ``(iii) Program incentives.--Not 
                        later than 180 days after the date of enactment 
                        of this paragraph, the Secretary shall--
                        </DELETED>
                                <DELETED>    ``(I) establish incentives 
                                for participation in the CFATS 
                                Recognition Program, which shall 
                                include--</DELETED>
                                        <DELETED>    ``(aa) a reduction 
                                        of the Chemical Facility Anti-
                                        Terrorism Standards Program 
                                        risk tier level at which a 
                                        participating facility is 
                                        currently tiered;</DELETED>
                                        <DELETED>    ``(bb) a reduction 
                                        in the frequency of compliance 
                                        inspections;</DELETED>
                                        <DELETED>    ``(cc) streamlined 
                                        vulnerability assessment and 
                                        site security plan processes; 
                                        and</DELETED>
                                        <DELETED>    ``(dd) any other 
                                        regulatory relief as determined 
                                        appropriate by the Secretary; 
                                        and</DELETED>
                                <DELETED>    ``(II) provide written 
                                guidance on any incentive established 
                                under subclause (I).</DELETED>
                <DELETED>    ``(D) Implementation.--</DELETED>
                        <DELETED>    ``(i) Applications.--An industry 
                        stewardship program desiring to participate in 
                        the CFATS Recognition Program shall submit an 
                        application to the Secretary that contains 
                        information relating to--</DELETED>
                                <DELETED>    ``(I) the industry 
                                stewardship program submitting the 
                                application and the sponsor 
                                organization of the industry 
                                stewardship program;</DELETED>
                                <DELETED>    ``(II) each participating 
                                facility that is a member of the 
                                industry stewardship program; 
                                and</DELETED>
                                <DELETED>    ``(III) whether the 
                                industry stewardship program meets the 
                                eligibility requirements under 
                                subparagraph (C)(i).</DELETED>
                        <DELETED>    ``(ii) Determination.--</DELETED>
                                <DELETED>    ``(I) In general.--Not 
                                later than 60 days after the date on 
                                which the Secretary receives an 
                                application submitted under clause (i), 
                                the Secretary shall--</DELETED>
                                        <DELETED>    ``(aa) make a 
                                        determination as to whether the 
                                        industry stewardship program is 
                                        eligible to participate in the 
                                        CFATS Recognition Program; 
                                        and</DELETED>
                                        <DELETED>    ``(bb) notify the 
                                        industry stewardship program of 
                                        the determination.</DELETED>
                                <DELETED>    ``(II) Notification 
                                relating to denial.--If the Secretary 
                                denies an application submitted under 
                                clause (i), in the notification of the 
                                determination under subclause (I)(bb), 
                                the Secretary shall include--</DELETED>
                                        <DELETED>    ``(aa) a statement 
                                        of each reason for the denial; 
                                        and</DELETED>
                                        <DELETED>    ``(bb) any action 
                                        that may be taken by the 
                                        applicant to qualify the 
                                        applicant for participation in 
                                        the CFATS Recognition 
                                        Program.</DELETED>
                                <DELETED>    ``(III) Revised 
                                applications.--Not later than 60 days 
                                after the date on which an applicant 
                                receives a notification of denial under 
                                subclause (II), the applicant may 
                                submit a revised application.</DELETED>
                <DELETED>    ``(E) Evaluation.--Not later than 18 
                months after the date of enactment of this paragraph, 
                the Secretary shall provide a briefing to the Committee 
                on Homeland Security and Governmental Affairs of the 
                Senate and the Committees on Homeland Security and 
                Energy and Commerce of the House of Representatives on 
                the progress in carrying out the CFATS Recognition 
                Program.''.</DELETED>

<DELETED>SEC. 6. FREQUENCY OF AUDITS AND INSPECTIONS.</DELETED>

<DELETED>    Section 2102(d)(1) of the Homeland Security Act of 2002 (6 
U.S.C. 622(d)(1)) is amended--</DELETED>
        <DELETED>    (1) in subparagraph (B), by striking ``The 
        Secretary'' and inserting ``Subject to subparagraph (G), the 
        Secretary''; and</DELETED>
        <DELETED>    (2) by adding at the end the following:</DELETED>
                <DELETED>    ``(G) Frequency of audits and 
                inspections.--</DELETED>
                        <DELETED>    ``(i) In general.--Except as 
                        provided in clause (ii), the Secretary may not 
                        conduct any audit or inspection under this 
                        paragraph of a covered chemical facility more 
                        frequently than once every 2 years.</DELETED>
                        <DELETED>    ``(ii) CFATS recognition 
                        program.--In the case of a covered chemical 
                        facility that participates in the CFATS 
                        Recognition Program under subsection (c)(5) and 
                        meets compliance, audit, and inspection 
                        requirements under that program, the Secretary 
                        may not conduct any audit or inspection under 
                        this paragraph of that covered chemical 
                        facility more frequently than once every 3 
                        years.''.</DELETED>

<DELETED>SEC. 7. PERSONNEL SURETY PROGRAM.</DELETED>

<DELETED>    Section 2102(d)(2)(A) of the Homeland Security Act of 2002 
(6 U.S.C. 622(d)(2)(A)) is amended--</DELETED>
        <DELETED>    (1) in the matter preceding clause (i), by 
        inserting ``is mandatory for each owner or operator of a 
        covered chemical facility assigned to tier 1 or 2 and optional 
        for each owner or operator of a covered chemical facility 
        assigned to tier 3 or tier 4 that'' after ``carry out a 
        Personnel Surety Program that''; and</DELETED>
        <DELETED>    (2) in clause (ii), by inserting ``who will have 
        access to any chemical of interest designated under Appendix A 
        to part 27 of title 6, Code of Federal Regulations, or any 
        successor thereto,'' after ``about an individual''.</DELETED>

<DELETED>SEC. 8. SECURITY RISK ASSESSMENT APPROACH AND CORRESPONDING 
              TIERING METHODOLOGY.</DELETED>

<DELETED>    Section 2102(e) of the Homeland Security Act of 2002 (6 
U.S.C. 622(e)) is amended--</DELETED>
        <DELETED>    (1) in paragraph (2)(A), by striking ``develop'' 
        and inserting ``maintain''; and</DELETED>
        <DELETED>    (2) in paragraph (3)--</DELETED>
                <DELETED>    (A) in subparagraph (B)--</DELETED>
                        <DELETED>    (i) by striking the period at the 
                        end and inserting ``, including--''; 
                        and</DELETED>
                        <DELETED>    (ii) by adding at the end the 
                        following:</DELETED>
                        <DELETED>    ``(i) each input and assumption 
                        under the tiering methodology;</DELETED>
                        <DELETED>    ``(ii) the rational for each 
                        input; and</DELETED>
                        <DELETED>    ``(iii) the output of the tiering 
                        methodology.''; and</DELETED>
                <DELETED>    (B) by adding at the end the 
                following:</DELETED>
                <DELETED>    ``(C) Reports.--Not later than 14 days 
                after the Secretary makes a determination that tiering 
                for a covered chemical facility is changed, or that a 
                covered chemical facility is no longer subject to the 
                requirements under this title, the Secretary shall 
                submit to the owner or operator of the covered chemical 
                facility a written report that contains--</DELETED>
                        <DELETED>    ``(i) the information described in 
                        subparagraphs (A) and (B); and</DELETED>
                        <DELETED>    ``(ii) a statement of the criteria 
                        under paragraph (2)(B) and how the security 
                        risk of terrorism associated with the covered 
                        chemical facility was evaluated under those 
                        criteria.''.</DELETED>

<DELETED>SEC. 9. ANNUAL PERFORMANCE REPORTING.</DELETED>

<DELETED>    Section 2102(e)(4) of the Homeland Security Act of 2002 (6 
U.S.C. 622(e)(4)) is amended--</DELETED>
        <DELETED>    (1) in the paragraph heading, by striking 
        ``Semiannual'' and inserting ``Annual'';</DELETED>
        <DELETED>    (2) in the matter preceding subparagraph (A)--
        </DELETED>
                <DELETED>    (A) by striking ``6 months after the 
                date'' and inserting ``1 year after the 
                date'';</DELETED>
                <DELETED>    (B) by striking ``2014'' and inserting 
                ``2018''; and</DELETED>
                <DELETED>    (C) by striking ``once every 6 months'' 
                and inserting ``once each year'';</DELETED>
        <DELETED>    (3) by striking subparagraph (C);</DELETED>
        <DELETED>    (4) by redesignating subparagraph (D) as 
        subparagraph (C);</DELETED>
        <DELETED>    (5) by inserting after subparagraph (C), as so 
        redesignated, the following:</DELETED>
                <DELETED>    ``(D) the effectiveness of the Chemical 
                Facility Anti-Terrorism Standards Program at--
                </DELETED>
                        <DELETED>    ``(i) managing security risks; 
                        and</DELETED>
                        <DELETED>    ``(ii) developing and using 
                        appropriate metrics and analysis capabilities 
                        to measure risk reduction, including--
                        </DELETED>
                                <DELETED>    ``(I) vulnerability and 
                                consequence mitigation indicators; 
                                and</DELETED>
                                <DELETED>    ``(II) outcome metrics 
                                that measure cumulative risk reduction 
                                over time; and'';</DELETED>
        <DELETED>    (6) by striking subparagraph (E); and</DELETED>
        <DELETED>    (7) by redesignating subparagraph (F) as 
        subparagraph (E).</DELETED>

<DELETED>SEC. 10. CFATS REGULATIONS.</DELETED>

<DELETED>    Section 2107(b) of the Homeland Security Act of 2002 (6 
U.S.C. 627(b)) is amended--</DELETED>
        <DELETED>    (1) in paragraph (1), by inserting ``(Public Law 
        113-254; 128 Stat. 2919)'' after ``2014''; and</DELETED>
        <DELETED>    (2) in paragraph (2), by striking ``2014'' and 
        inserting ``2018''.</DELETED>

<DELETED>SEC. 11. SMALL COVERED CHEMICAL FACILITIES.</DELETED>

<DELETED>    Section 2108 of the Homeland Security Act of 2002 (6 
U.S.C. 628) is amended--</DELETED>
        <DELETED>    (1) in subsection (b)--</DELETED>
                <DELETED>    (A) by striking ``tools, methodologies, or 
                computer software'' and inserting ``tools and 
                methodologies''; and</DELETED>
                <DELETED>    (B) by striking ``cybersecurity,''; 
                and</DELETED>
        <DELETED>    (2) by striking subsection (c).</DELETED>

<DELETED>SEC. 12. EXPLOSIVE MATERIALS.</DELETED>

<DELETED>    (a) In General.--Title XXI of the Homeland Security Act of 
2002 (6 U.S.C. 621 et seq.) is amended by striking section 2109 (6 
U.S.C. 629) and inserting the following:</DELETED>

<DELETED>``SEC. 2109. EXPLOSIVE MATERIALS.</DELETED>

<DELETED>    ``The Secretary may not designate any explosive material 
subject to regulation by the Department of Justice under chapter 40 of 
title 18, United States Code, or by the Bureau of Alcohol, Tobacco, 
Firearms, and Explosives under part 555 of title 27, Code of Federal 
Regulations, as a chemical of interest under Appendix A to part 27 of 
title 6, Code of Federal Regulations.''.</DELETED>
<DELETED>    (b) Technical and Conforming Amendment.--The table of 
contents in section 1(b) of the Homeland Security Act of 2002 (Public 
Law 107-196; 116 Stat. 2135) is amended by striking the item relating 
to section 2109 and inserting the following:</DELETED>

<DELETED>``Sec. 2109. Explosive materials.''.

<DELETED>SEC. 13. CHANGES IN APPENDIX A TO PART 27 OF TITLE 6, CODE OF 
              FEDERAL REGULATIONS.</DELETED>

<DELETED>    (a) In General.--Title XXI of the Homeland Security Act of 
2002 (6 U.S.C. 621 et seq.), as amended by section 12 of this Act, is 
amended by adding at the end the following:</DELETED>

<DELETED>``SEC. 2110. CHANGES IN APPENDIX A TO PART 27 OF TITLE 6, CODE 
              OF FEDERAL REGULATIONS.</DELETED>

<DELETED>    ``(a) Definition.--In this section, the term `Appendix A' 
means Appendix A to part 27 of title 6, Code of Federal Regulations, or 
any successor thereto.</DELETED>
<DELETED>    ``(b) Notice of Proposed Rulemaking.--The Secretary shall 
publish a notice of proposed rulemaking in the Federal Register 
relating to any proposed change to Appendix A if the Secretary 
determines that--</DELETED>
        <DELETED>    ``(1) a chemical should be designated as a 
        chemical of interest under Appendix A;</DELETED>
        <DELETED>    ``(2) a chemical designated as a chemical of 
        interest under Appendix A should not be so designated; 
        or</DELETED>
        <DELETED>    ``(3) a chemical amount, concentration, or 
        threshold quantity described in Appendix A should be 
        modified.''.</DELETED>
<DELETED>    (b) Technical and Conforming Amendment.--The table of 
contents in section 1(b) of the Homeland Security Act of 2002 (Public 
Law 107-196; 116 Stat. 2135) is amended by inserting after the item 
relating to section 2109 the following:</DELETED>

<DELETED>``Sec. 2110. Changes in Appendix A to part 27 of title 6, Code 
                            of Federal Regulations.''.

<DELETED>SEC. 14. ASSESSMENT, REPORT, BRIEFING, AND UPDATED 
              RETROSPECTIVE ESTIMATE ON COSTS.</DELETED>

<DELETED>    (a) Definitions.--In this section--</DELETED>
        <DELETED>    (1) the term ``applicable committee'' means--
        </DELETED>
                <DELETED>    (A) the Committee on Homeland Security and 
                Governmental Affairs of the Senate;</DELETED>
                <DELETED>    (B) the Committee on Homeland Security of 
                the House of Representatives; and</DELETED>
                <DELETED>    (C) the Committee on Energy and Commerce 
                of the House of Representatives;</DELETED>
        <DELETED>    (2) the terms ``CFATS regulation'' and ``covered 
        chemical facility'' have the meanings given those terms in 
        section 2101 of the Homeland Security Act of 2002 (6 U.S.C. 
        621);</DELETED>
        <DELETED>    (3) the term ``Chemical Facility Anti-Terrorism 
        Standards Program'' means--</DELETED>
                <DELETED>    (A) the Chemical Facility Anti-Terrorism 
                Standards Program initially authorized under section 
                550 of the Department of Homeland Security 
                Appropriations Act, 2007 (Public Law 109-295; 120 Stat. 
                1355); and</DELETED>
                <DELETED>    (B) the Chemical Facility Anti-Terrorism 
                Standards Program subsequently authorized under section 
                2102(a) of the Homeland Security Act of 2002 (6 U.S.C. 
                622(a));</DELETED>
        <DELETED>    (4) the term ``Department'' means the Department 
        of Homeland Security;</DELETED>
        <DELETED>    (5) the term ``inspector'' means an individual 
        used by the Department as an inspector for purposes of ensuring 
        compliance with title XXI of the Homeland Security Act of 2002 
        (6 U.S.C. 621 et seq.); and</DELETED>
        <DELETED>    (6) the term ``Secretary'' means the Secretary of 
        Homeland Security.</DELETED>
<DELETED>    (b) Third-Party Assessment.--</DELETED>
        <DELETED>    (1) In general.--Not later than 90 days after the 
        date of enactment of this Act, using amounts appropriated to 
        the Department before the date of enactment of this Act, the 
        Secretary shall commission a third-party study, which shall be 
        completed not later than 1 year after the date on which the 
        third-party study is commissioned, to assess the effectiveness 
        of the Chemical Facility Anti-Terrorism Standards Program in--
        </DELETED>
                <DELETED>    (A) managing security risks; and</DELETED>
                <DELETED>    (B) developing and using appropriate 
                metrics and analysis capabilities to measure risk 
                reduction, including--</DELETED>
                        <DELETED>    (i) vulnerability and consequence 
                        mitigation indicators; and</DELETED>
                        <DELETED>    (ii) outcome metrics that measure 
                        cumulative risk reduction over time.</DELETED>
        <DELETED>    (2) Briefing and submission of study.--Not later 
        than 90 days after the date on which the third-party study 
        described in paragraph (1) is completed, the Secretary shall--
        </DELETED>
                <DELETED>    (A) brief each applicable committee on the 
                results of the third-party study; and</DELETED>
                <DELETED>    (B) submit a copy of the completed third-
                party study to each applicable committee.</DELETED>
<DELETED>    (c) GAO Report.--Not later than 2 years after the date of 
enactment of this Act, the Comptroller General of the United States 
shall submit to each applicable committee a report on inspector 
training that contains recommendations for improving inspector 
training, including recommendations relating to--</DELETED>
        <DELETED>    (1) how the Department selects 
        inspectors;</DELETED>
        <DELETED>    (2) initial training required for inspectors 
        before the inspectors are selected by the Department to be used 
        to conduct inspections;</DELETED>
        <DELETED>    (3) qualification standards required to be met by 
        inspectors before they are selected by the Department to be 
        used to conduct inspections;</DELETED>
        <DELETED>    (4) on-the-job training required for inspectors 
        and how that training is documented;</DELETED>
        <DELETED>    (5) final qualification and approval standards 
        required to be met by inspectors before the inspectors are 
        initially used by the Department to conduct 
        inspections;</DELETED>
        <DELETED>    (6) continuing qualification standards required to 
        be met by inspectors while the inspectors are used by the 
        Department to conduct inspections; and</DELETED>
        <DELETED>    (7) continuous training required for inspectors 
        while the inspectors are used by the Department to conduct 
        inspections.</DELETED>
<DELETED>    (d) Annual Briefing.--Not later than 1 year after the date 
of enactment of this Act, and each year thereafter for 5 years, the 
Secretary shall brief each applicable committee on the activities 
carried out under this section and under title XXI of the Homeland 
Security Act of 2001 (6 U.S.C. 621 et seq.) that shall include--
</DELETED>
        <DELETED>    (1) detailed information relating to--</DELETED>
                <DELETED>    (A) as of the date on which the briefing 
                is made--</DELETED>
                        <DELETED>    (i) threats to covered chemical 
                        facilities; and</DELETED>
                        <DELETED>    (ii) how chemicals of interest are 
                        being utilized by bad actors in the threat 
                        environment--</DELETED>
                                <DELETED>    (I) in the United States; 
                                and</DELETED>
                                <DELETED>    (II) globally;</DELETED>
                <DELETED>    (B) how CFATS regulations play a role in 
                making the United States safer; and</DELETED>
                <DELETED>    (C) how the Chemical Facility Anti-
                Terrorism Standards Program is effectively addressing 
                the threat landscape; and</DELETED>
        <DELETED>    (2) data, rationale, and metrics on how the 
        Chemical Facility Anti-Terrorism Standards Program effectively 
        reduces risks.</DELETED>
<DELETED>    (e) Updated Retrospective Estimate on Costs.--Not later 
than 1 year after the date of enactment of this Act, the Secretary 
shall complete a retrospective estimate of the costs, including costs 
to the Government, regulated entities, and the public, of carrying out 
the Chemical Facility Anti-Terrorism Standards Program during the 
period beginning on the first day of fiscal year 2006 and ending on the 
last day of fiscal year 2018.</DELETED>
<DELETED>    (f) Repeal.--Section 3 of the Protecting and Securing 
Chemical Facilities from Terrorist Attacks Act of 2014 (Public Law 113-
254; 128 Stat. 2917) is repealed.</DELETED>

<DELETED>SEC. 15. EFFECTIVE DATE.</DELETED>

<DELETED>    This Act, and the amendments made by this Act, shall take 
effect on the date that is 30 days after the date of enactment of this 
Act.</DELETED>

<DELETED>SEC. 16. TERMINATION.</DELETED>

<DELETED>    The authority provided under title XXI of the Homeland 
Security Act of 2002 (6 U.S.C. 621 et seq.), as amended by this Act, 
shall terminate on the date that is 5 years after the date of enactment 
of this Act.</DELETED>

<DELETED>SEC. 17. TECHNICAL AND CONFORMING AMENDMENT.</DELETED>

<DELETED>    The table of contents in section 1(b) of the Homeland 
Security Act of 2002 (Public Law 107-196; 116 Stat. 2135) is amended, 
in the item relating to section 2103, by striking the em dash at the 
end.</DELETED>

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Protecting and 
Securing Chemical Facilities from Terrorist Attacks Act of 2018''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
Sec. 3. Expedited approval program.
Sec. 4. CFATS Recognition Program.
Sec. 5. Frequency of audits and inspections.
Sec. 6. Personnel surety program.
Sec. 7. Security risk assessment approach and corresponding tiering 
                            methodology.
Sec. 8. Annual performance reporting.
Sec. 9. Specific products and mixtures containing chemicals of 
                            interest.
Sec. 10. CFATS regulations.
Sec. 11. Explosive materials.
Sec. 12. Changes to Appendix A to part 27 of title 6, Code of Federal 
                            Regulations.
Sec. 13. Assessment, report, briefing, and updated retrospective 
                            estimate on costs.
Sec. 14. Effective date.
Sec. 15. Termination.
Sec. 16. Technical and conforming amendment.

SEC. 2. DEFINITIONS.

    Section 2101(8) of the Homeland Security Act of 2002 (6 U.S.C. 
621(8)) is amended by striking ``section 2102(c)(4)(B)(i)'' and 
inserting ``section 2102(c)(4) by the Secretary that identifies 
specific security measures that are sufficient to meet the risk-based 
performance standards for facilities in tiers 3 and 4 that elect to 
utilize the expedited approval program''.

SEC. 3. EXPEDITED APPROVAL PROGRAM.

    Section 2102(c)(4) of the Homeland Security Act of 2002 (6 U.S.C. 
622(c)(4)) is amended--
            (1) in subparagraph (A)(i), by striking ``subparagraph 
        (C)'' and inserting ``subparagraph (C)(i)'';
            (2) in subparagraph (B)--
                    (A) in clause (i), by striking ``Not later than'' 
                and all that follows through ``the Secretary shall 
                issue'' and inserting ``The Secretary shall maintain''; 
                and
                    (B) by striking clause (iii);
            (3) in subparagraph (C)--
                    (A) in clause (iii), by redesignating subclauses 
                (I) through (III) as items (aa) through (cc), 
                respectively, and adjusting the margins accordingly;
                    (B) by redesignating clauses (i) through (viii) as 
                subclauses (I) through (VIII), respectively, and 
                adjusting the margins accordingly;
                    (C) in the matter preceding subclause (I), as so 
                redesignated, by striking ``The owner'' and inserting 
                the following:
                            ``(i) In general.--The owner''; and
                    (D) by adding at the end the following:
                            ``(ii) Risk-based performance standards.--
                        In submitting a site security plan and 
                        certification under subparagraph (A)(i), an 
                        owner or operator of an expedited approval 
                        facility should consider using the guidance for 
                        expedited approval facilities to determine 
                        appropriate measures for the site security plan 
                        of the expedited approval facility.'';
            (4) in subparagraph (D)--
                    (A) in clause (i), by striking ``subparagraph (C)'' 
                and inserting ``subparagraph (C)(i)''; and
                    (B) in clause (iii)--
                            (i) by striking ``30'' and inserting ``7''; 
                        and
                            (ii) by striking ``subparagraph (C)'' and 
                        inserting ``subparagraph (C)(i)'';
            (5) in subparagraph (F)(i)(I), by striking ``subparagraph 
        (C)'' and inserting ``subparagraph (C)(i)''; and
            (6) by striking subparagraph (I) and inserting the 
        following:
                    ``(I) Notice by the secretary.--The Secretary shall 
                provide notice to each covered chemical facility of the 
                expedited approval program under this paragraph.''.

SEC. 4. CFATS RECOGNITION PROGRAM.

    Section 2102(c) of the Homeland Security Act of 2002 (6 U.S.C. 
622(c)) is amended by adding the following at the end:
            ``(5) CFATS recognition program.--
                    ``(A) Definitions.--In this paragraph--
                            ``(i) the term `CFATS Recognition Program' 
                        means the program established under 
                        subparagraph (B);
                            ``(ii) the term `participating facility' 
                        means a covered chemical facility that is a 
                        member of a participating industry stewardship 
                        program;
                            ``(iii) the term `participating industry 
                        stewardship program' means an industry 
                        stewardship program that--
                                    ``(I) meets the eligibility 
                                requirements under subparagraph (C)(i); 
                                and
                                    ``(II) is accepted by the Secretary 
                                to participate in the CFATS Recognition 
                                Program; and
                            ``(iv) the term `sponsor organization' 
                        means the governing body of a participating 
                        industry stewardship program.
                    ``(B) Establishment.--
                            ``(i) In general.--Not later than 270 days 
                        after the date of enactment of this paragraph, 
                        the Secretary shall establish a program that 
                        shall be known as the CFATS Recognition 
                        Program--
                                    ``(I) with the goal of leveraging 
                                CFATS regulations and industry 
                                stewardship programs to further enhance 
                                security relating to hazardous 
                                chemicals; and
                                    ``(II) under which the Secretary 
                                shall--
                                            ``(aa) establish--

                                                    ``(AA) eligibility 
                                                criteria under 
                                                subparagraph (C)(i) for 
                                                industry stewardship 
                                                programs seeking to 
                                                participate in the 
                                                CFATS Recognition 
                                                Program; and

                                                    ``(BB) performance 
                                                requirements under 
                                                subparagraph (C)(ii) 
                                                for participating 
                                                facilities;

                                            ``(bb) provide incentives 
                                        under subparagraph (C)(iii) to 
                                        encourage participation in the 
                                        CFATS Recognition Program; and
                                            ``(cc) issue such guidance 
                                        as the Secretary deems 
                                        necessary or appropriate for 
                                        the implementation of the CFATS 
                                        Recognition Program.
                            ``(ii) Applicability of other laws.--During 
                        the period before the Secretary has met the 
                        deadline under clause (i), in developing and 
                        issuing, or amending, the guidance relating to 
                        carrying out the CFATS Recognition Program and 
                        collecting information from industry 
                        stewardship programs, sponsor organizations, 
                        and participating facilities, the Secretary 
                        shall not be subject to--
                                    ``(I) section 553 of title 5, 
                                United States Code;
                                    ``(II) subchapter I of chapter 35 
                                of title 44, United States Code; or
                                    ``(III) section 2107(b) of this 
                                Act.
                    ``(C) Eligibility criteria; facility performance 
                requirements; incentives.--
                            ``(i) Eligibility criteria for industry 
                        stewardship programs.--Not later than 270 days 
                        after the date of enactment of this paragraph, 
                        the Secretary shall establish minimum 
                        eligibility criteria for industry stewardship 
                        programs desiring to be considered by the 
                        Secretary for participation in the CFATS 
                        Recognition Program that shall include--
                                    ``(I) a requirement that any 
                                industry stewardship program desiring 
                                to participate in the CFATS Recognition 
                                Program be governed by an industry 
                                association or technical organization 
                                that is an entity described in 
                                paragraph (3) or (6) of section 501(c) 
                                of the Internal Revenue Code of 1986;
                                    ``(II) a documented top management 
                                commitment to chemical facility 
                                security;
                                    ``(III) criteria relating to--
                                            ``(aa) program auditing 
                                        requirements and frequency;
                                            ``(bb) security 
                                        vulnerability assessment 
                                        requirements and frequency; and
                                            ``(cc) security measures 
                                        that align with the risk-based 
                                        performance standards 
                                        established under subsection 
                                        (a)(2)(C), including--

                                                    ``(AA) detection 
                                                measures;

                                                    ``(BB) delay 
                                                measures;

                                                    ``(CC) 
                                                cybersecurity measures;

                                                    ``(DD) response 
                                                measures; and

                                                    ``(EE) security 
                                                management; and

                                            ``(dd) reporting required 
                                        to be done by any industry 
                                        stewardship program desiring to 
                                        participate in the CFATS 
                                        Recognition Program.
                            ``(ii) Performance requirements for 
                        participating facilities.--The Secretary shall 
                        require that each participating facility--
                                    ``(I) submit an acknowledgment by 
                                the sponsor organization of the 
                                participating industry steward program, 
                                of which the participating facility is 
                                a member, that the participating 
                                facility is--
                                            ``(aa) a member in good 
                                        standing of the participating 
                                        industry stewardship program; 
                                        and
                                            ``(bb) in full compliance 
                                        with the requirements of the 
                                        participating industry 
                                        stewardship program; and
                                    ``(II) promptly notify the 
                                Secretary if the participating facility 
                                ceases to be--
                                            ``(aa) a member in good 
                                        standing of the participating 
                                        industry stewardship program; 
                                        or
                                            ``(bb) in full compliance 
                                        with the requirements of the 
                                        participating industry 
                                        stewardship program.
                            ``(iii) Program incentives.--Not later than 
                        270 days after the date of enactment of this 
                        paragraph, the Secretary shall--
                                    ``(I) establish incentives for 
                                participation in the CFATS Recognition 
                                Program, which shall include--
                                            ``(aa) a reduction in the 
                                        frequency of compliance 
                                        inspections, except--

                                                    ``(AA) in the case 
                                                of any inspection 
                                                relating to any planned 
                                                measure in the site 
                                                security plan of a 
                                                participating facility 
                                                that has not been fully 
                                                implemented; or

                                                    ``(BB) in a case in 
                                                which a participating 
                                                facility is not in full 
                                                compliance with the 
                                                requirements under the 
                                                Chemical Facility Anti-
                                                Terrorism Standards 
                                                Program;

                                            ``(bb) streamlined 
                                        vulnerability assessment and 
                                        site security plan processes; 
                                        and
                                            ``(cc) any other regulatory 
                                        relief as determined 
                                        appropriate by the Secretary; 
                                        and
                                    ``(II) provide written guidance on 
                                any incentive established under 
                                subclause (I).
                    ``(D) Evaluation.--Not later than 1 year after the 
                date on which the CFATS Recognition Program is 
                established under subparagraph (B)(i), the Secretary 
                shall provide a briefing to the Committee on Homeland 
                Security and Governmental Affairs of the Senate and the 
                Committees on Homeland Security and Energy and Commerce 
                of the House of Representatives on the progress in 
                carrying out the CFATS Recognition Program.''.

SEC. 5. FREQUENCY OF AUDITS AND INSPECTIONS.

    Section 2102(d)(1) of the Homeland Security Act of 2002 (6 U.S.C. 
622(d)(1)) is amended--
            (1) in subparagraph (B), in the matter preceding clause 
        (i), by striking ``The Secretary'' and inserting ``Subject to 
        subparagraph (G), the Secretary''; and
            (2) by adding at the end the following:
                    ``(G) Frequency of audits and inspections.--
                            ``(i) In general.--Except as provided in 
                        clauses (ii) and (iii), the Secretary may not 
                        conduct any audit or inspection under this 
                        paragraph of a covered chemical facility more 
                        frequently than once every 2 years.
                            ``(ii) CFATS recognition program.--Except 
                        as provided in clause (iii), in the case of a 
                        covered chemical facility that participates in 
                        the CFATS Recognition Program under subsection 
                        (c)(5) and meets compliance, audit, and 
                        inspection requirements under that program, the 
                        Secretary may not conduct any audit or 
                        inspection under this paragraph of that covered 
                        chemical facility more frequently than once 
                        every 3 years.
                            ``(iii) Increased frequency of audits and 
                        inspections.--The Secretary may conduct audits 
                        and inspections more frequently than provided 
                        in clauses (i) and (ii) when--
                                    ``(I) the covered chemical facility 
                                has identified planned enhancements 
                                that have not yet been validated by an 
                                audit or inspection;
                                    ``(II) a deficiency or infraction 
                                at the covered chemical facility has 
                                been identified that may result in an 
                                enforcement action against the covered 
                                chemical facility;
                                    ``(III) an elevated or specific 
                                threat has been identified;
                                    ``(IV) a security incident or 
                                suspicious activity has occurred at the 
                                covered chemical facility; or
                                    ``(V) the Secretary determines that 
                                an inspection or audit is warranted by 
                                exigent circumstances.''.

SEC. 6. PERSONNEL SURETY PROGRAM.

    Section 2102(d)(2)(A) of the Homeland Security Act of 2002 (6 
U.S.C. 622(d)(2)(A)) is amended--
            (1) in the matter preceding clause (i), by inserting ``is 
        mandatory for each owner or operator of a covered chemical 
        facility assigned to tier 1 or 2 and optional for each owner or 
        operator of a covered chemical facility assigned to tier 3 or 
        tier 4 that'' after ``carry out a Personnel Surety Program 
        that''; and
            (2) in clause (ii), by inserting ``who will have access to 
        any chemical of interest designated under Appendix A to part 27 
        of title 6, Code of Federal Regulations, or any successor 
        thereto,'' after ``about an individual''.

SEC. 7. SECURITY RISK ASSESSMENT APPROACH AND CORRESPONDING TIERING 
              METHODOLOGY.

    Section 2102(e) of the Homeland Security Act of 2002 (6 U.S.C. 
622(e)) is amended--
            (1) in paragraph (2)(A), by striking ``develop'' and 
        inserting ``maintain''; and
            (2) in paragraph (3)--
                    (A) in subparagraph (B)--
                            (i) by striking the period at the end and 
                        inserting ``, including--''; and
                            (ii) by adding at the end the following:
                            ``(i) each input and assumption under the 
                        tiering methodology;
                            ``(ii) the rationale for each input; and
                            ``(iii) the output of the tiering 
                        methodology.''; and
                    (B) by adding at the end the following:
                    ``(C) Reports.--Not later than 30 days after the 
                Secretary makes a determination that tiering for a 
                covered chemical facility is changed, or that a covered 
                chemical facility is no longer subject to the 
                requirements under this title, the Secretary shall 
                submit to the owner or operator of the covered chemical 
                facility a written report that contains--
                            ``(i) the information described in 
                        subparagraphs (A) and (B); and
                            ``(ii) a controlled unclassified 
                        statement--
                                    ``(I) of the criteria under 
                                paragraph (2)(B) and how the security 
                                risk of terrorism associated with the 
                                covered chemical facility was evaluated 
                                under those criteria; and
                                    ``(II) that includes any chemical-
                                terrorism vulnerability information (as 
                                defined in section 27.105 of title 6, 
                                Code of Federal Regulations, or any 
                                successor thereto) relating to the 
                                determination.
                    ``(D) Public disclosure.--Reports submitted to the 
                owner or operator of the covered chemical facility to 
                which the report pertains under subparagraph (C) shall 
                be protected from public disclosure under section 
                2103.''.

SEC. 8. ANNUAL PERFORMANCE REPORTING.

    Section 2102(e)(4) of the Homeland Security Act of 2002 (6 U.S.C. 
622(e)(4)) is amended--
            (1) in the paragraph heading, by striking ``Semiannual'' 
        and inserting ``Annual'';
            (2) in the matter preceding subparagraph (A)--
                    (A) by striking ``6 months after the date'' and 
                inserting ``1 year after the date'';
                    (B) by striking ``2014'' and inserting ``2018''; 
                and
                    (C) by striking ``once every 6 months'' and 
                inserting ``once each year'';
            (3) by striking subparagraph (C);
            (4) by redesignating subparagraph (D) as subparagraph (C);
            (5) by inserting after subparagraph (C), as so 
        redesignated, the following:
                    ``(D) the effectiveness of the Chemical Facility 
                Anti-Terrorism Standards Program at--
                            ``(i) managing security risks; and
                            ``(ii) developing and using appropriate 
                        metrics and analysis capabilities to measure 
                        risk reduction, including--
                                    ``(I) vulnerability and consequence 
                                mitigation indicators; and
                                    ``(II) outcome metrics that measure 
                                cumulative risk reduction over time; 
                                and'';
            (6) by striking subparagraph (E); and
            (7) by redesignating subparagraph (F) as subparagraph (E).

SEC. 9. SPECIFIC PRODUCTS AND MIXTURES CONTAINING CHEMICALS OF 
              INTEREST.

    Section 2102(e) of the Homeland Security Act of 2002 (6 U.S.C. 
622(e)) is amended by adding at the end the following:
            ``(5) Specific products and mixtures containing chemicals 
        of interest.--
                    ``(A) Definitions.--In this paragraph--
                            ``(i) the term `chemical of interest' means 
                        a chemical designated as a chemical of interest 
                        under Appendix A to part 27 of title 6, Code of 
                        Federal Regulations, or any successor thereto; 
                        and
                            ``(ii) the term `covered product or 
                        mixture' means a specific product or mixture 
                        that contains a chemical of interest at or 
                        above the minimum concentration listed under 
                        Appendix A to part 27 of title 6, Code of 
                        Federal Regulations, or any successor thereto.
                    ``(B) In general.--The Secretary may exclude a 
                covered product or mixture from the designation as a 
                chemical of interest for the purposes of the definition 
                of the term `chemical facility of interest' if, in the 
                sole and unreviewable discretion of the Secretary, the 
                Secretary determines that the covered product or 
                mixture does not present the same hazards for which the 
                chemical of interest contained in the covered product 
                or mixture was designated as a chemical of interest.
                    ``(C) Regulations.--
                            ``(i) Promulgation.--Not later than 1 year 
                        after the date of enactment of this paragraph, 
                        the Secretary shall promulgate regulations to 
                        prescribe a process under which an interested 
                        party may petition the Secretary for exclusion 
                        of a covered product or mixture under 
                        subparagraph (B).
                            ``(ii) Federal information policy.--In 
                        collecting information from petitioners 
                        pursuant to this subparagraph, the Secretary 
                        shall not be subject to subchapter I of chapter 
                        35 of title 44, United States Code.''.

SEC. 10. CFATS REGULATIONS.

    Section 2107(b) of the Homeland Security Act of 2002 (6 U.S.C. 
627(b)) is amended--
            (1) in paragraph (1), by inserting ``(Public Law 113-254; 
        128 Stat. 2919)'' after ``2014''; and
            (2) in paragraph (2), by striking ``2014'' and inserting 
        ``2018''.

SEC. 11. EXPLOSIVE MATERIALS.

    (a) In General.--Title XXI of the Homeland Security Act of 2002 (6 
U.S.C. 621 et seq.) is amended by striking section 2109 (6 U.S.C. 629) 
and inserting the following:

``SEC. 2109. EXPLOSIVE MATERIALS.

    ``(a) In General.--The Secretary may not designate any explosive 
material regulated by the Department of Justice under chapter 40 of 
title 18, United States Code, or by the Bureau of Alcohol, Tobacco, 
Firearms, and Explosives under part 555 of title 27, Code of Federal 
Regulations, as a chemical of interest under Appendix A to part 27 of 
title 6, Code of Federal Regulations, or any successor thereto.
    ``(b) Explosive Material Regulated After Designation.--If any 
explosive material that is designated as a chemical of interest under 
Appendix A to part 27 of title 6, Code of Federal Regulations, or any 
successor thereto, becomes regulated by the Department of Justice under 
chapter 40 of title 18, United States Code, or by the Bureau of 
Alcohol, Tobacco, Firearms, and Explosives under part 555 of title 27, 
Code of Federal Regulations, or any successor thereto, the Secretary 
shall remove the designation of such explosive material as a chemical 
of interest.''.
    (b) Technical and Conforming Amendment.--The table of contents in 
section 1(b) of the Homeland Security Act of 2002 (Public Law 107-196; 
116 Stat. 2135) is amended by striking the item relating to section 
2109 and inserting the following:

``Sec. 2109. Explosive materials.''.

SEC. 12. CHANGES TO APPENDIX A TO PART 27 OF TITLE 6, CODE OF FEDERAL 
              REGULATIONS.

    (a) In General.--Title XXI of the Homeland Security Act of 2002 (6 
U.S.C. 621 et seq.), as amended by section 11 of this Act, is amended 
by adding at the end the following:

``SEC. 2110. CHANGES TO APPENDIX A TO PART 27 OF TITLE 6, CODE OF 
              FEDERAL REGULATIONS.

    ``(a) Definition.--In this section, the term `Appendix A' means 
Appendix A to part 27 of title 6, Code of Federal Regulations, or any 
successor thereto.
    ``(b) Notice of Proposed Rulemaking.--The Secretary shall publish a 
notice of proposed rulemaking in the Federal Register relating to any 
proposed change to Appendix A if the Secretary determines that--
            ``(1) a chemical should be designated as a chemical of 
        interest under Appendix A;
            ``(2) a chemical designated as a chemical of interest under 
        Appendix A should not be so designated; or
            ``(3) a chemical amount, concentration, or threshold 
        quantity described in Appendix A should be modified.''.
    (b) Technical and Conforming Amendment.--The table of contents in 
section 1(b) of the Homeland Security Act of 2002 (Public Law 107-196; 
116 Stat. 2135) is amended by inserting after the item relating to 
section 2109 the following:

``Sec. 2110. Changes to Appendix A to part 27 of title 6, Code of 
                            Federal Regulations.''.

SEC. 13. ASSESSMENT, REPORT, BRIEFING, AND UPDATED RETROSPECTIVE 
              ESTIMATE ON COSTS.

    (a) Definitions.--In this section--
            (1) the term ``applicable committee'' means--
                    (A) the Committee on Homeland Security and 
                Governmental Affairs of the Senate;
                    (B) the Committee on Homeland Security of the House 
                of Representatives; and
                    (C) the Committee on Energy and Commerce of the 
                House of Representatives;
            (2) the terms ``CFATS regulation'' and ``covered chemical 
        facility'' have the meanings given those terms in section 2101 
        of the Homeland Security Act of 2002 (6 U.S.C. 621);
            (3) the term ``Chemical Facility Anti-Terrorism Standards 
        Program'' means--
                    (A) the Chemical Facility Anti-Terrorism Standards 
                Program initially authorized under section 550 of the 
                Department of Homeland Security Appropriations Act, 
                2007 (Public Law 109-295; 120 Stat. 1355); and
                    (B) the Chemical Facility Anti-Terrorism Standards 
                Program subsequently authorized under section 2102(a) 
                of the Homeland Security Act of 2002 (6 U.S.C. 622(a));
            (4) the term ``Department'' means the Department of 
        Homeland Security;
            (5) the term ``inspector'' means an individual used by the 
        Department as an inspector for purposes of ensuring compliance 
        with title XXI of the Homeland Security Act of 2002 (6 U.S.C. 
        621 et seq.); and
            (6) the term ``Secretary'' means the Secretary of Homeland 
        Security.
    (b) Third-party Assessment.--
            (1) In general.--Not later than 90 days after the date of 
        enactment of this Act, using amounts appropriated to the 
        Department before the date of enactment of this Act, the 
        Secretary shall commission a third-party study, which shall be 
        completed not later than 1 year after the date on which the 
        third-party study is commissioned, to assess the effectiveness 
        of the Chemical Facility Anti-Terrorism Standards Program in--
                    (A) managing security risks;
                    (B) developing and using appropriate metrics and 
                analysis capabilities to measure risk reduction, 
                including--
                            (i) vulnerability and consequence 
                        mitigation indicators; and
                            (ii) outcome metrics that measure 
                        cumulative risk reduction over time; and
                    (C) engaging with and making necessary information 
                available to first responders and emergency planners 
                and, if necessary, improving the degree of situational 
                awareness of first responders and emergency planners 
                that is needed to prepare for and respond to security 
                incidents at high-risk chemical facilities.
            (2) Briefing and submission of study.--Not later than 90 
        days after the date on which the third-party study described in 
        paragraph (1) is completed, the Secretary shall--
                    (A) brief each applicable committee on the results 
                of the third-party study; and
                    (B) submit a copy of the completed third-party 
                study to each applicable committee.
    (c) GAO Report.--Not later than 2 years after the date of enactment 
of this Act, the Comptroller General of the United States shall submit 
to each applicable committee a report on inspector training that 
contains recommendations for improving inspector training, including 
recommendations relating to--
            (1) how the Department selects inspectors;
            (2) initial training required for inspectors before the 
        inspectors are selected by the Department to be used to conduct 
        inspections;
            (3) qualification standards required to be met by 
        inspectors before they are selected by the Department to be 
        used to conduct inspections;
            (4) on-the-job training required for inspectors and how 
        that training is documented;
            (5) final qualification and approval standards required to 
        be met by inspectors before the inspectors are initially used 
        by the Department to conduct inspections;
            (6) continuing qualification standards required to be met 
        by inspectors while the inspectors are used by the Department 
        to conduct inspections;
            (7) continuous training required for inspectors while the 
        inspectors are used by the Department to conduct inspections; 
        and
            (8) improving cybersecurity training.
    (d) Annual Briefing.--Not later than 1 year after the date of 
enactment of this Act, and each year thereafter for 5 years, the 
Secretary shall brief each applicable committee on the activities 
carried out under this section and under title XXI of the Homeland 
Security Act of 2002 (6 U.S.C. 621 et seq.) that shall include--
            (1) detailed information relating to--
                    (A) as of the date on which the briefing is made--
                            (i) threats to covered chemical facilities; 
                        and
                            (ii) how chemicals of interest are being 
                        utilized by bad actors in the threat 
                        environment--
                                    (I) in the United States; and
                                    (II) globally;
                    (B) how CFATS regulations play a role in making the 
                United States safer; and
                    (C) how the Chemical Facility Anti-Terrorism 
                Standards Program is effectively addressing the threat 
                landscape; and
            (2) data, rationale, and metrics on how the Chemical 
        Facility Anti-Terrorism Standards Program effectively reduces 
        risks.
    (e) Updated Retrospective Estimate on Costs.--Not later than 1 year 
after the date of enactment of this Act, the Secretary shall complete a 
retrospective estimate of the costs, including costs to the Government, 
regulated entities, and the public, of carrying out the Chemical 
Facility Anti-Terrorism Standards Program during the period beginning 
on the first day of fiscal year 2006 and ending on the last day of 
fiscal year 2018.
    (f) Repeal.--Section 3 of the Protecting and Securing Chemical 
Facilities from Terrorist Attacks Act of 2014 (Public Law 113-254; 128 
Stat. 2917) is repealed.

SEC. 14. EFFECTIVE DATE.

    This Act, and the amendments made by this Act, shall take effect on 
the date that is 30 days after the date of enactment of this Act.

SEC. 15. TERMINATION.

    The authority provided under title XXI of the Homeland Security Act 
of 2002 (6 U.S.C. 621 et seq.), as amended by this Act, shall terminate 
on the date that is 5 years after the date of enactment of this Act.

SEC. 16. TECHNICAL AND CONFORMING AMENDMENT.

    The table of contents in section 1(b) of the Homeland Security Act 
of 2002 (Public Law 107-196; 116 Stat. 2135) is amended, in the item 
relating to section 2103, by striking the em dash at the end.
                                                       Calendar No. 670

115th CONGRESS

  2d Session

                                S. 3405

                          [Report No. 115-384]

_______________________________________________________________________

                                 A BILL

 To reauthorize the Chemical Facility Anti-Terrorism Standards Program 
                of the Department of Homeland Security.

_______________________________________________________________________

                           November 26, 2018

                       Reported with an amendment