[Congressional Record Volume 153, Number 29 (Thursday, February 15, 2007)]
[Senate]
[Pages S2030-S2038]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mrs. FEINSTEIN (for herself, Mr. Cornyn, Mrs. Boxer, Mrs. 
        Hutchison, Mr. Lautenberg, Mr. Schumer, Mrs. Clinton, Mr. 
        Menendez, and Mr. Obama):
  S. 608. A bill to improve the allocation of grants through the 
Department of Homeland Security, and for other purposes; to the 
Committee on Homeland Security and Governmental Affairs.
  Mrs. FEINSTEIN. Mr. President, I rise today to introduce legislation 
that ensures our Nation's homeland security grant resources are 
allocated in the most effective manner possible. I am pleased to be 
joined by my colleague from Texas, Senator John Cornyn, as well as 
Senators Boxer, Hutchison, Lautenberg, Schumer, Clinton, Menendez, and 
Obama.
  Simply put, the current system for allocating homeland security 
grants to States is fundamentally flawed. Proportionate funding is not 
allotted to regions which face the highest risk of a terrorist attack, 
and adequate assessment of threats is not calculated.
  The ``Risk-Based Homeland Security Grants Act of 2007'' addresses 
these

[[Page S2031]]

concerns with a common-sense approach that responsibly directs taxpayer 
dollars to protect our Nation's vital interests.
  The methodology is straightforward and spelled out in the language at 
the beginning of the bill:

       The Secretary of Homeland Security shall ensure that 
     homeland security grants are allocated based on an assessment 
     of threat, vulnerability, and consequence to the maximum 
     extent practicable.

  This direction would apply to the four major first-responder grant 
programs administered by the Department of Homeland Security: the State 
Homeland Security Grant Program; the Urban Area Security Initiative; 
the Law Enforcement Terrorism Prevention Program; and the Citizens 
Corps Program.
  The primary objective of the legislation is accomplished by reducing 
the amount of funding that each State is guaranteed. Current practice 
requires a ``small state minimum,'' giving each State at least 0.75 
percent of much of the grant funding.
  The result is that roughly 38 percent of the funds are marked for 
distribution before any substantive risk analysis has been performed. 
That sends disproportionate money to low-risk, rural areas and 
territories.
  For most, this outcome is not acceptable. Funding to bolster the 
security of our country should go to where the threat is greatest--such 
as seaports, airports, and national landmarks.
  This bill lowers the ``small state minimum'' to 0.25 percent per 
State. A Homeland Security Grants Board, comprised of seven top 
Department of Homeland Security officials, including the Secretary of 
Homeland Security and the Undersecretary of Information Analysis and 
Infrastructure Protection, is established to rank grant applications 
based upon risk. Three factors guide this evaluation: threat, 
vulnerability, and consequence.
  The current system, by contrast, allocates a significant amount of 
funding to states based upon their population.
  To ensure that grant funds are properly accounted for, and utilized 
within an integrated framework to enhance domestic security, grants 
must be designed to meet ``essential'' capabilities.
  ``Essential capabilities'' refers to the ability of regions to 
address risks by reducing vulnerability to attacks and diminishing the 
consequences of such attacks by effective response.
  This legislation assures that States must demonstrate that they have 
a detailed, prioritized plan for emergency preparedness and resource 
allocation, so that Federal funds are assigned to the most effective 
uses.
  States must then quickly distribute the Federal funds to regions and 
localities.
  The notion of risk-based allocation of homeland security grants is 
not novel. This is a bipartisan approach advocated by both the Bush 
Administration and the 9/11 Commission.
  The 9/11 Commission report said: ``Homeland security assistance 
should be based strictly on an assessment of risks and 
vulnerabilities.''
  Four years ago, President Bush signed Homeland Security Presidential 
Directive 8, which required the Department of Homeland Security to 
allocate grant funding ``based on national priorities.''
  In April 2005, Representatives Cox and Turner, the Chair and Ranking 
Member of the House Homeland Security Committee at the time, offered 
similar legislation to reform the grant process by reducing State 
minimums and allocating funds based upon risk assessments.
  That effort, the ``Faster and Smarter Funding for First Responders 
Act of 2005,'' passed the House of Representatives as part of the 
Intelligence Reform bill, but was dropped in conference. This bill is 
based on the House efforts, and closely tracks the previous bill.
  Again, the House has acted, passing legislation last month, by an 
overwhelming vote of 299-128, to implement the recommendations of the 
9/11 Committee. A key component is the risk-based allocation of 
homeland security resources.
  This bill, though updated to reflect recent changes at the Department 
of Homeland Security, marks the continuation of a legislation effort we 
began last session, with the FORWARD Funding Act. That bill was 
unsuccessful. Hopefully, this time will be different.
  In the post-Cold War world, America needs the flexibility to defend 
against a different type of enemy. The amorphous nature of the threat 
and likelihood of asymmetric attacks demands a robust approach.
  But our resources are limited, and difficult choices must be made.
  We will never know exactly how, when or where the next major attack 
may occur. But we can refine our risk-assessment capabilities, and make 
objective analyses and predictions. It follows that our resources 
should be directed based upon our best estimate of where the next 
strike might take place.
  Two guiding principles--the ability to predict future attacks, 
coupled with the necessity of utilizing finite resources effectively--
form the backbone of a comprehensive strategy to make our Nation more 
secure.
  The approach is three-pronged: risks of potential terrorist attacks 
must be accurately assessed; the vulnerability of critical 
infrastructure and potential targets must be measured; and, resources 
should be dispersed based upon these assessments.
  The Department of Homeland Security was created to accomplish these 
goals. Yet we find again and again that scarce resources are allocated 
based on factors unrelated to real security.
  For example, last year California's Urban Area Security Initiative 
grants totaled only $6.81 per capita. Hawaii received $11.55 per 
capita, and Wyoming, $18.06 per capita.
  I recognize the environment in which we are operating, and understand 
this bill is not a panacea. This bill is a first step towards reducing 
the threat of terrorist attacks.
  Congress should not act alone. The Department of Homeland Security 
must embrace the concept of risk-based allocation of resources. And it 
must act on these principles. Slow progress has been made, but the 
Department's intelligence analysis and vulnerability assessment 
capabilities must be improved.
  We can do better. We must put aside pork-barrel politics and take 
action to protect all Americans. The security of our Nation hangs in 
the balance and we cannot afford to wait until it is too late.
  This bill was conceived and put forth in the spirit of 
bipartisanship. I hope that Senators Lieberman and Collins will accept 
this legislation, which is a reasoned alternative to their approach and 
a starting point for continued discussion.
  I ask my colleagues to join me in supporting this simple, 
straightforward approach to effectively distribute our Nation's 
resources and make America secure.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 608

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

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Risk-Based 
     Homeland Security Grants Act of 2007''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Risk-based funding for homeland security.
Sec. 3. Essential capabilities, task forces, and standards.
Sec. 4. Effective administration of homeland security grants.
Sec. 5. Implementation and definitions.

     SEC. 2. RISK-BASED FUNDING FOR HOMELAND SECURITY.

       (a) Risk-Based Funding in General.--The Homeland Security 
     Act of 2002 (Public Law 107-296; 6 U.S.C. 361 et seq.) is 
     amended by adding at the end the following:

          ``TITLE XX--RISK-BASED FUNDING FOR HOMELAND SECURITY

     ``SEC. 2001. RISK-BASED FUNDING FOR HOMELAND SECURITY.

       ``(a) Risk-Based Funding.--The Secretary shall ensure that 
     homeland security grants are allocated based on an assessment 
     of threat, vulnerability, and consequence to the maximum 
     extent practicable.
       ``(b) Covered Grants.--This title applies to grants 
     provided by the Department to States, regions, or directly 
     eligible tribes for the primary purpose of improving the 
     ability of first responders to prevent, prepare for, respond 
     to, or mitigate threatened or actual terrorist attacks, 
     especially those involving weapons of mass destruction, and 
     grants provided by the Department for improving homeland 
     security, including the following:

[[Page S2032]]

       ``(1) State homeland security grant program.--The State 
     Homeland Security Grant Program of the Department, or any 
     successor to such grant program.
       ``(2) Urban area security initiative.--The Urban Area 
     Security Initiative of the Department, or any successor to 
     such grant program.
       ``(3) Law enforcement terrorism prevention program.--The 
     Law Enforcement Terrorism Prevention Program of the 
     Department, or any successor to such grant program.
       ``(4) Citizen corps program.--The Citizen Corps Program of 
     the Department, or any successor to such grant program.
       ``(c) Excluded Programs.--This title does not apply to or 
     otherwise affect the following Federal grant programs or any 
     grant under such a program:
       ``(1) Nondepartment programs.--Any Federal grant program 
     that is not administered by the Department.
       ``(2) Fire grant programs.--The fire grant programs 
     authorized by sections 33 and 34 of the Federal Fire 
     Prevention and Control Act of 1974 (15 U.S.C. 2229, 2229a).
       ``(3) Emergency management planning and assistance account 
     grants.--The Emergency Management Performance Grant program 
     and the Urban Search and Rescue Grants program authorized by 
     title VI of the Robert T. Stafford Disaster Relief and 
     Emergency Assistance Act (42 U.S.C. 5195 et seq.), the 
     Departments of Veterans Affairs and Housing and Urban 
     Development, and Independent Agencies Appropriations Act, 
     2000 (113 Stat. 1047 et seq.), and the Earthquake Hazards 
     Reduction Act of 1977 (42 U.S.C. 7701 et seq.).
       ``(d) Effect on Covered Grants.--Nothing in this Act shall 
     be construed to require the elimination of a covered grant 
     program.''.
       (b) Covered Grant Eligibility and Criteria.--The Homeland 
     Security Act of 2002 (Public Law 107-296; 6 U.S.C. 361 et 
     seq.), as amended by subsection (a), is amended by adding at 
     the end the following:

     ``SEC. 2002. COVERED GRANT ELIGIBILITY AND CRITERIA.

       ``(a) Grant Eligibility.--
       ``(1) In general.--
       ``(A) General eligibility.--Except as provided in 
     subparagraphs (B) and (C), any State, region, or directly 
     eligible tribe shall be eligible to apply for a covered 
     grant.
       ``(B) Urban area security initiative.--Only a region shall 
     be eligible to apply for a grant under the Urban Area 
     Security Initiative of the Department, or any successor to 
     such grant program.
       ``(C) State homeland security grant program.--Only a State 
     shall be eligible to apply for a grant under the State 
     Homeland Security Grant Program of the Department, or any 
     successor to such grant program.
       ``(2) Other grant applicants.--
       ``(A) In general.--Grants provided by the Department for 
     improving homeland security, including to seaports, airports, 
     and other transportation facilities, shall be allocated as 
     described in section 2001(a).
       ``(B) Consideration.--Such grants shall be considered, to 
     the extent determined appropriate by the Secretary, pursuant 
     to the procedures and criteria established in this title, 
     except that the eligibility requirements of paragraph (1) 
     shall not apply.
       ``(3) Certification of regions.--
       ``(A) In general.--The Secretary shall certify a geographic 
     area as a region if--
       ``(i) the geographic area meets the criteria under section 
     2007(10)(B) and (C); and
       ``(ii) the Secretary determines, based on an assessment of 
     threat, vulnerability, and consequence, that certifying the 
     geographic area as a region under this title is in the 
     interest of national homeland security.
       ``(B) Existing urban area security initiative areas.--
     Notwithstanding subparagraphs (B) and (C) of section 
     2007(10), a geographic area that, on or before the date of 
     enactment of the Risk-Based Homeland Security Grants Act of 
     2007, was designated as a high-threat urban area for purposes 
     of the Urban Area Security Initiative, shall be certified by 
     the Secretary as a region unless the Secretary determines, 
     based on an assessment of threat, vulnerability, and 
     consequence, that certifying the geographic area as a region 
     is not in the interest of national homeland security.
       ``(b) Grant Criteria.--In awarding covered grants, the 
     Secretary shall assist States, local governments, and 
     operators of airports, ports, or similar facilities in 
     achieving, maintaining, and enhancing the essential 
     capabilities established by the Secretary under section 2003.
       ``(c) State Homeland Security Plans.--
       ``(1) Submission of plans.--The Secretary shall require 
     that any State applying to the Secretary for a covered grant 
     shall submit to the Secretary a 3-year State homeland 
     security plan that--
       ``(A) demonstrates the extent to which the State has 
     achieved the essential capabilities that apply to the State;
       ``(B) demonstrates the needs of the State necessary to 
     achieve, maintain, or enhance the essential capabilities that 
     apply to the State;
       ``(C) includes a prioritization of such needs based on 
     threat, vulnerability, and consequence assessment factors 
     applicable to the State;
       ``(D) describes how the State intends--
       ``(i) to address such needs at the city, county, regional, 
     tribal, State, and interstate level, including a precise 
     description of any regional structure the State has 
     established for the purpose of organizing homeland security 
     preparedness activities funded by covered grants;
       ``(ii) to use all Federal, State, and local resources 
     available for the purpose of addressing such needs; and
       ``(iii) to give particular emphasis to regional planning 
     and cooperation, including the activities of 
     multijurisdictional planning agencies governed by local 
     officials, both within its jurisdictional borders and with 
     neighboring States;
       ``(E) is developed in consultation with and subject to 
     appropriate comment by local governments within the State; 
     and
       ``(F) with respect to the emergency preparedness of first 
     responders, addresses the unique aspects of terrorism as part 
     of a comprehensive State emergency management plan.
       ``(2) Approval by secretary.--The Secretary may not award 
     any covered grant to a State unless the Secretary has 
     approved the applicable State homeland security plan.
       ``(d) Consistency With State Plans.--The Secretary shall 
     ensure that each covered grant is used to supplement and 
     support, in a consistent and coordinated manner, the 
     applicable State homeland security plan or plans.
       ``(e) Application for Grant.--
       ``(1) In general.--Except as otherwise provided in this 
     subsection, any State, region, directly eligible tribe, or 
     operator of an airport, port, or similar facility may apply 
     for a covered grant by submitting to the Secretary an 
     application at such time, in such manner, and containing such 
     information as is required under this subsection, or as the 
     Secretary may reasonably require.
       ``(2) Deadlines for applications and awards.--All 
     applications for covered grants shall be submitted at such 
     time as the Secretary may reasonably require for the fiscal 
     year for which they are submitted. The Secretary shall award 
     covered grants pursuant to all approved applications for such 
     fiscal year as soon as practicable, but not later than March 
     1 of such year.
       ``(3) Availability of funds.--All funds awarded by the 
     Secretary under covered grants in a fiscal year shall be 
     available for obligation through the end of the second 
     subsequent fiscal year.
       ``(4) Minimum contents of application.--The Secretary shall 
     require that each applicant include in its application, at a 
     minimum--
       ``(A) the purpose for which the applicant seeks covered 
     grant funds and the reasons why the applicant needs the 
     covered grant to meet the essential capabilities for 
     terrorism preparedness within the State, region, or directly 
     eligible tribe or at the airport, port, or similar facility 
     to which the application pertains;
       ``(B) a description of how, by reference to the applicable 
     State homeland security plan or plans under subsection (c), 
     the allocation of grant funding proposed in the application, 
     including, where applicable, the amount not passed through 
     under section 2006(g)(1), would assist in fulfilling the 
     essential capabilities specified in such plan or plans;
       ``(C) a statement of whether a mutual aid agreement applies 
     to the use of all or any portion of the covered grant funds;
       ``(D) if the applicant is a State, a description of how the 
     State plans to allocate the covered grant funds to regions, 
     local governments, and Indian tribes;
       ``(E) if the applicant is a region--
       ``(i) a precise geographical description of the region and 
     a specification of all participating and nonparticipating 
     local governments within the geographical area comprising 
     that region;
       ``(ii) a specification of what governmental entity within 
     the region will administer the expenditure of funds under the 
     covered grant;
       ``(iii) a designation of a specific individual to serve as 
     regional liaison; and
       ``(iv) a description of how the governmental entity 
     administering the expenditure of funds under the covered 
     grant plans to allocate the covered grant funds to States, 
     local governments, and Indian tribes;
       ``(F) a capital budget showing how the applicant intends to 
     allocate and expend the covered grant funds; and
       ``(G) if the applicant is a directly eligible tribe, a 
     designation of a specific individual to serve as the tribal 
     liaison.
       ``(5) Regional applications.--
       ``(A) Relationship to state applications.--A regional 
     application--
       ``(i) shall be coordinated with an application submitted by 
     the State or States of which such region is a part;
       ``(ii) shall supplement and avoid duplication with such 
     State application; and
       ``(iii) shall address the unique regional aspects of such 
     region's terrorism preparedness needs beyond those provided 
     for in the application of such State or States.
       ``(B) State review and submission.--To ensure the 
     consistency required under subsection (d) and the 
     coordination required under subparagraph (A) of this 
     paragraph, an applicant that is a region shall submit its 
     application to each State of which any part is included in 
     the region for review and concurrence before the submission 
     of such application to the Secretary. The regional 
     application shall be transmitted to the Secretary through 
     each such State within 30 days after receipt of the 
     application by that State, unless the Governor of such a 
     State notifies the Secretary, in writing, that such regional 
     application is inconsistent with the State's homeland 
     security plan and provides an explanation of the reasons 
     therefor.

[[Page S2033]]

       ``(C) Distribution of regional awards.--If the Secretary 
     approves a regional application, then the Secretary shall 
     distribute a regional award to the State or States submitting 
     the applicable regional application under subparagraph (B), 
     and each such State shall, not later than the end of the 45-
     day period beginning on the date after receiving a regional 
     award, pass through to the region all covered grant funds or 
     resources purchased with such funds, except those funds 
     necessary for the State to carry out its responsibilities 
     with respect to such regional application; Provided That, in 
     no such case shall the State or States pass through to the 
     region less than 80 percent of the regional award.
       ``(D) Certifications regarding distribution of grant funds 
     to regions.--Any State that receives a regional award under 
     subparagraph (C) shall certify to the Secretary, by not later 
     than 30 days after the expiration of the period described in 
     subparagraph (C) with respect to the grant, that the State 
     has made available to the region the required funds and 
     resources in accordance with subparagraph (C).
       ``(E) Direct payments to regions.--If any State fails to 
     pass through a regional award to a region as required by 
     subparagraph (C) within 45 days after receiving such award 
     and does not request or receive an extension of such period 
     under section 2006(h)(2), the region may petition the 
     Secretary to receive directly the portion of the regional 
     award that is required to be passed through to such region 
     under subparagraph (C).
       ``(F) Regional liaisons.--A regional liaison designated 
     under paragraph (4)(E)(iii) shall--
       ``(i) coordinate with Federal, State, local, regional, and 
     private officials within the region concerning terrorism 
     preparedness;
       ``(ii) develop a process for receiving input from Federal, 
     State, local, regional, and private sector officials within 
     the region to assist in the development of the regional 
     application and to improve the region's access to covered 
     grants; and
       ``(iii) administer, in consultation with State, local, 
     regional, and private officials within the region, covered 
     grants awarded to the region.
       ``(6) Tribal applications.--
       ``(A) Submission to the state or states.--To ensure the 
     consistency required under subsection (d), an applicant that 
     is a directly eligible tribe shall submit its application to 
     each State within the boundaries of which any part of such 
     tribe is located for direct submission to the Department 
     along with the application of such State or States.
       ``(B) Opportunity for state comment.--Before awarding any 
     covered grant to a directly eligible tribe, the Secretary 
     shall provide an opportunity to each State within the 
     boundaries of which any part of such tribe is located to 
     comment to the Secretary on the consistency of the tribe's 
     application with the State's homeland security plan. Any such 
     comments shall be submitted to the Secretary concurrently 
     with the submission of the State and tribal applications.
       ``(C) Final authority.--The Secretary shall have final 
     authority to determine the consistency of any application of 
     a directly eligible tribe with the applicable State homeland 
     security plan or plans, and to approve any application of 
     such tribe. The Secretary shall notify each State within the 
     boundaries of which any part of such tribe is located of the 
     approval of an application by such tribe.
       ``(D) Tribal liaison.--A tribal liaison designated under 
     paragraph (4)(G) shall--
       ``(i) coordinate with Federal, State, and private sector 
     officials to assist in the development of the application of 
     such tribe and to improve the tribe's access to covered 
     grants; and
       ``(ii) administer, in consultation with State, local, 
     regional, and private officials, covered grants awarded to 
     such tribe.
       ``(E) Limitation on the number of direct grants.--The 
     Secretary may make covered grants directly to not more than 
     20 directly eligible tribes per fiscal year.
       ``(F) Tribes not receiving direct grants.--An Indian tribe 
     that does not receive a grant directly under this section is 
     eligible to receive funds under a covered grant from the 
     State or States within the boundaries of which any part of 
     such tribe is located, consistent with the homeland security 
     plan of the State as described in subsection (c). If a State 
     fails to comply with section 2006(g)(1), the tribe may 
     request payment under section 2006(h)(3) in the same manner 
     as a local government.
       ``(7) Equipment standards.--If an applicant for a covered 
     grant proposes to upgrade or purchase, with assistance 
     provided under the grant, new equipment or systems that do 
     not meet or exceed any applicable national voluntary 
     consensus standards established by the Secretary under 
     section 2005(a), the applicant shall include in the 
     application an explanation of why such equipment or systems 
     will serve the needs of the applicant better than equipment 
     or systems that meet or exceed such standards.
       ``(f) Homeland Security Grants Board.--
       ``(1) Establishment of board.--The Secretary shall 
     establish a Homeland Security Grants Board, consisting of--
       ``(A) the Secretary;
       ``(B) the Deputy Secretary of Homeland Security;
       ``(C) the Under Secretary for Emergency Preparedness and 
     Response;
       ``(D) the Under Secretary for Border and Transportation 
     Security;
       ``(E) the Under Secretary for Information Analysis and 
     Infrastructure Protection;
       ``(F) the Under Secretary for Science and Technology; and
       ``(G) the Director of the Office of State and Local 
     Government Coordination.
       ``(2) Chairman.--
       ``(A) In general.--The Secretary shall be the Chairman of 
     the Board.
       ``(B) Exercise of authorities by deputy secretary.--The 
     Deputy Secretary of Homeland Security may exercise the 
     authorities of the Chairman, if the Secretary so directs.
       ``(3) Risk-based ranking of grant applications.--
       ``(A) Prioritization of grants.--The Board--
       ``(i) shall evaluate and annually prioritize all pending 
     applications for covered grants based upon the degree to 
     which they would, by achieving, maintaining, or enhancing the 
     essential capabilities of the applicants on a nationwide 
     basis, lessen the threat to, vulnerability of, and 
     consequences for persons and critical infrastructure; and
       ``(ii) in evaluating the threat to persons and critical 
     infrastructure for purposes of prioritizing covered grants, 
     shall give greater weight to threats of terrorism based on 
     their specificity and credibility, including any pattern of 
     repetition.
       ``(B) Minimum amounts.--
       ``(i) In general.--After evaluating and prioritizing grant 
     applications under subparagraph (A), the Board shall ensure 
     that, for each fiscal year, each State that has an approved 
     State homeland security plan receives no less than 0.25 
     percent of the funds available for the State Homeland 
     Security Grant Program, as described in section 2001(b)(1), 
     for that fiscal year for purposes of implementing its 
     homeland security plan in accordance with the prioritization 
     of additional needs under subsection (c)(1)(C).
       ``(ii) Other entities.--Notwithstanding clause (i), the 
     Board shall ensure that, for each fiscal year, American 
     Samoa, the Commonwealth of the Northern Mariana Islands, 
     Guam, and the Virgin Islands each receive 0.08 percent of the 
     funds available for the State Homeland Security Grant 
     Program, as described in section 2001(b)(1), for that fiscal 
     year for purposes of implementing its homeland security plan 
     in accordance with the prioritization of additional needs 
     under subsection (c)(1)(C).
       ``(4) Functions of under secretaries.--The Under 
     Secretaries referred to in paragraph (1) shall seek to ensure 
     that the relevant expertise and input of the staff of their 
     directorates are available to and considered by the Board.''.

     SEC. 3. ESSENTIAL CAPABILITIES, TASK FORCES, AND STANDARDS.

       The Homeland Security Act of 2002 (Public Law 107-296; 6 
     U.S.C. 361 et seq.), as amended by section 2, is amended by 
     adding at the end the following:

     ``SEC. 2003. ESSENTIAL CAPABILITIES FOR HOMELAND SECURITY.

       ``(a) Establishment of Essential Capabilities.--
       ``(1) In general.--For purposes of covered grants, the 
     Secretary shall establish clearly defined essential 
     capabilities for State and local government preparedness for 
     terrorism, in consultation with--
       ``(A) the Task Force on Essential Capabilities established 
     under section 2004;
       ``(B) the Under Secretaries for Emergency Preparedness and 
     Response, Border and Transportation Security, Information 
     Analysis and Infrastructure Protection, and Science and 
     Technology, and the Director of the Office of State and Local 
     Government Coordination;
       ``(C) the Secretary of Health and Human Services;
       ``(D) other appropriate Federal agencies;
       ``(E) State and local first responder agencies and 
     officials; and
       ``(F) consensus-based standard making organizations 
     responsible for setting standards relevant to the first 
     responder community.
       ``(2) Deadlines.--The Secretary shall--
       ``(A) establish essential capabilities under paragraph (1) 
     within 30 days after receipt of the report under section 
     2004(b); and
       ``(B) regularly update such essential capabilities as 
     necessary, but not less than every 3 years.
       ``(3) Provision of essential capabilities.--The Secretary 
     shall ensure that a detailed description of the essential 
     capabilities established under paragraph (1) is provided 
     promptly to the States and to Congress. The States shall make 
     the essential capabilities available as necessary and 
     appropriate to local governments and operators of airports, 
     ports, and other similar facilities within their 
     jurisdictions.
       ``(b) Objectives.--The Secretary shall ensure that 
     essential capabilities established under subsection (a)(1) 
     meet the following objectives:
       ``(1) Specificity.--The determination of essential 
     capabilities specifically shall describe the training, 
     planning, personnel, and equipment that different types of 
     communities in the Nation should possess, or to which they 
     should have access, in order to meet the Department's goals 
     for terrorism preparedness based upon--
       ``(A) the most current risk assessment available by the 
     Directorate for Information Analysis and Infrastructure 
     Protection of the threats of terrorism against the United 
     States;
       ``(B) the types of threats, vulnerabilities, geography, 
     size, and other factors that the Secretary has determined to 
     be applicable to each different type of community; and

[[Page S2034]]

       ``(C) the principles of regional coordination and mutual 
     aid among State and local governments.
       ``(2) Flexibility.--The establishment of essential 
     capabilities shall be sufficiently flexible to allow State 
     and local government officials to set priorities based on 
     particular needs, while reaching nationally determined 
     terrorism preparedness levels within a specified time period.
       ``(3) Measurability.--The establishment of essential 
     capabilities shall be designed to enable measurement of 
     progress toward specific terrorism preparedness goals.
       ``(4) Comprehensiveness.--The determination of essential 
     capabilities for terrorism preparedness shall be made within 
     the context of a comprehensive State emergency management 
     system.
       ``(c) Factors To Be Considered.--
       ``(1) In general.--In establishing essential capabilities 
     under subsection (a)(1), the Secretary specifically shall 
     consider the variables of threat, vulnerability, and 
     consequences with respect to the Nation's population 
     (including transient commuting and tourist populations) and 
     critical infrastructure. Such consideration shall be based 
     upon the most current risk assessment available by the 
     Directorate for Information Analysis and Infrastructure 
     Protection of the threats of terrorism against the United 
     States.
       ``(2) Critical infrastructure sectors.--The Secretary 
     specifically shall consider threats of terrorism against the 
     following critical infrastructure sectors in all areas of the 
     Nation, urban and rural:
       ``(A) Agriculture.
       ``(B) Banking and finance.
       ``(C) Chemical industries.
       ``(D) The defense industrial base.
       ``(E) Emergency services.
       ``(F) Energy.
       ``(G) Food.
       ``(H) Government.
       ``(I) Postal and shipping.
       ``(J) Public health.
       ``(K) Information and telecommunications networks.
       ``(L) Transportation.
       ``(M) Water.
     The order in which the critical infrastructure sectors are 
     listed in this paragraph shall not be construed as an order 
     of priority for consideration of the importance of such 
     sectors.
       ``(3) Types of threat.--The Secretary specifically shall 
     consider the following types of threat to the critical 
     infrastructure sectors described in paragraph (2), and to 
     populations in all areas of the Nation, urban and rural:
       ``(A) Biological threats.
       ``(B) Nuclear threats.
       ``(C) Radiological threats.
       ``(D) Incendiary threats.
       ``(E) Chemical threats.
       ``(F) Explosives.
       ``(G) Suicide bombers.
       ``(H) Cyber threats.
       ``(I) Any other threats based on proximity to specific past 
     acts of terrorism or the known activity of any terrorist 
     group.
     The order in which the types of threat are listed in this 
     paragraph shall not be construed as an order of priority for 
     consideration of the importance of such threats.
       ``(4) Consideration of additional factors.--In establishing 
     essential capabilities under subsection (a)(1), the Secretary 
     shall take into account any other specific threat to a 
     population (including a transient commuting or tourist 
     population) or critical infrastructure sector that the 
     Secretary has determined to exist.

     ``SEC. 2004. TASK FORCE ON ESSENTIAL CAPABILITIES.

       ``(a) Establishment.--To assist the Secretary in 
     establishing essential capabilities under section 2003(a)(1), 
     the Secretary shall establish an advisory body pursuant to 
     section 871(a) not later than 60 days after the date of the 
     enactment of this section, which shall be known as the Task 
     Force on Essential Capabilities.
       ``(b) Report.--
       ``(1) In general.--The Task Force shall submit to the 
     Secretary, not later than 9 months after its establishment by 
     the Secretary under subsection (a) and every 3 years 
     thereafter, a report on its recommendations for essential 
     capabilities for preparedness for terrorism.
       ``(2) Contents.--The report shall--
       ``(A) include a priority ranking of essential capabilities 
     in order to provide guidance to the Secretary and to Congress 
     on determining the appropriate allocation of, and funding 
     levels for, first responder needs;
       ``(B) set forth a methodology by which any State or local 
     government will be able to determine the extent to which it 
     possesses or has access to the essential capabilities that 
     States and local governments having similar risks should 
     obtain;
       ``(C) describe the availability of national voluntary 
     consensus standards, and whether there is a need for new 
     national voluntary consensus standards, with respect to first 
     responder training and equipment;
       ``(D) include such additional matters as the Secretary may 
     specify in order to further the terrorism preparedness 
     capabilities of first responders; and
       ``(E) include such revisions to the contents of past 
     reports as are necessary to take into account changes in the 
     most current risk assessment available by the Directorate for 
     Information Analysis and Infrastructure Protection or other 
     relevant information as determined by the Secretary.
       ``(3) Consistency with federal working group.--The Task 
     Force shall ensure that its recommendations for essential 
     capabilities are, to the extent feasible, consistent with any 
     preparedness goals or recommendations of the Federal working 
     group established under section 319F(a) of the Public Health 
     Service Act (42 U.S.C. 247d-6(a)).
       ``(4) Comprehensiveness.--The Task Force shall ensure that 
     its recommendations regarding essential capabilities for 
     terrorism preparedness are made within the context of a 
     comprehensive State emergency management system.
       ``(5) Prior measures.--The Task Force shall ensure that its 
     recommendations regarding essential capabilities for 
     terrorism preparedness take into account any capabilities 
     that State or local officials have determined to be essential 
     and have undertaken since September 11, 2001, to prevent or 
     prepare for terrorist attacks.
       ``(c) Membership.--
       ``(1) In general.--The Task Force shall consist of 35 
     members appointed by the Secretary, and shall, to the extent 
     practicable, represent a geographic and substantive cross 
     section of governmental and nongovernmental first responder 
     disciplines from the State and local levels, including as 
     appropriate--
       ``(A) members selected from the emergency response field, 
     including fire service and law enforcement, hazardous 
     materials response, emergency medical services, and emergency 
     management personnel (including public works personnel 
     routinely engaged in emergency response);
       ``(B) health scientists, emergency and inpatient medical 
     providers, and public health professionals, including experts 
     in emergency health care response to chemical, biological, 
     radiological, and nuclear terrorism, and experts in providing 
     mental health care during emergency response operations;
       ``(C) experts from Federal, State, and local governments, 
     and the private sector, representing standards-setting 
     organizations, including representation from the voluntary 
     consensus codes and standards development community, 
     particularly those with expertise in first responder 
     disciplines; and
       ``(D) State and local officials with expertise in terrorism 
     preparedness, subject to the condition that if any such 
     official is an elected official representing 1 of the 2 major 
     political parties, an equal number of elected officials shall 
     be selected from each such party.
       ``(2) Coordination with the department of health and human 
     services.--In the selection of members of the Task Force who 
     are health professionals, including emergency medical 
     professionals, the Secretary shall coordinate the selection 
     with the Secretary of Health and Human Services.
       ``(3) Ex officio members.--The Secretary and the Secretary 
     of Health and Human Services shall each designate 1 or more 
     officers of their respective Departments to serve as ex 
     officio members of the Task Force. One of the ex officio 
     members from the Department of Homeland Security shall be the 
     designated officer of the Federal Government for purposes of 
     subsection (e) of section 10 of the Federal Advisory 
     Committee Act (5 App. U.S.C.).
       ``(d) Applicability of Federal Advisory Committee Act.--
     Notwithstanding section 871(a), the Federal Advisory 
     Committee Act (5 U.S.C. App.), including subsections (a), 
     (b), and (d) of section 10 of such Act, and section 552b(c) 
     of title 5, United States Code, shall apply to the Task 
     Force.

     ``SEC. 2005. NATIONAL STANDARDS FOR FIRST RESPONDER EQUIPMENT 
                   AND TRAINING.

       ``(a) Equipment Standards.--
       ``(1) In general.--The Secretary, in consultation with the 
     Under Secretaries for Emergency Preparedness and Response and 
     Science and Technology and the Director of the Office of 
     State and Local Government Coordination, shall, not later 
     than 6 months after the date of enactment of this section, 
     support the development of, promulgate, and update as 
     necessary national voluntary consensus standards for the 
     performance, use, and validation of first responder equipment 
     for purposes of section 2002(e)(7). Such standards--
       ``(A) shall be, to the maximum extent practicable, 
     consistent with any existing voluntary consensus standards;
       ``(B) shall take into account, as appropriate, new types of 
     terrorism threats that may not have been contemplated when 
     such existing standards were developed;
       ``(C) shall be focused on maximizing interoperability, 
     interchangeability, durability, flexibility, efficiency, 
     efficacy, portability, sustainability, and safety; and
       ``(D) shall cover all appropriate uses of the equipment.
       ``(2) Required categories.--In carrying out paragraph (1), 
     the Secretary shall specifically consider the following 
     categories of first responder equipment:
       ``(A) Thermal imaging equipment.
       ``(B) Radiation detection and analysis equipment.
       ``(C) Biological detection and analysis equipment.
       ``(D) Chemical detection and analysis equipment.
       ``(E) Decontamination and sterilization equipment.
       ``(F) Personal protective equipment, including garments, 
     boots, gloves, and hoods, and other protective clothing.

[[Page S2035]]

       ``(G) Respiratory protection equipment.
       ``(H) Interoperable communications, including wireless and 
     wireline voice, video, and data networks.
       ``(I) Explosive mitigation devices and explosive detection 
     and analysis equipment.
       ``(J) Containment vessels.
       ``(K) Contaminant-resistant vehicles.
       ``(L) Such other equipment for which the Secretary 
     determines that national voluntary consensus standards would 
     be appropriate.
       ``(b) Training Standards.--
       ``(1) In general.--The Secretary, in consultation with the 
     Under Secretaries for Emergency Preparedness and Response and 
     Science and Technology and the Director of the Office of 
     State and Local Government Coordination, shall support the 
     development of, promulgate, and regularly update as necessary 
     national voluntary consensus standards for first responder 
     training carried out with amounts provided under covered 
     grant programs, that will enable State and local government 
     first responders to achieve optimal levels of terrorism 
     preparedness as quickly as practicable. Such standards shall 
     give priority to providing training to--
       ``(A) enable first responders to prevent, prepare for, 
     respond to, and mitigate terrorist threats, including threats 
     from chemical, biological, nuclear, and radiological weapons 
     and explosive devices capable of inflicting significant human 
     casualties; and
       ``(B) familiarize first responders with the proper use of 
     equipment, including software, developed pursuant to the 
     standards established under subsection (a).
       ``(2) Required categories.--In carrying out paragraph (1), 
     the Secretary specifically shall include the following 
     categories of first responder activities:
       ``(A) Regional planning.
       ``(B) Joint exercises.
       ``(C) Intelligence collection, analysis, and sharing.
       ``(D) Emergency notification of affected populations.
       ``(E) Detection of biological, nuclear, radiological, and 
     chemical weapons of mass destruction.
       ``(F) Such other activities for which the Secretary 
     determines that national voluntary consensus training 
     standards would be appropriate.
       ``(3) Consistency.--In carrying out this subsection, the 
     Secretary shall ensure that such training standards are 
     consistent with the principles of emergency preparedness for 
     all hazards.
       ``(c) Consultation With Standards Organizations.--In 
     establishing national voluntary consensus standards for first 
     responder equipment and training under this section, the 
     Secretary shall consult with relevant public and private 
     sector groups, including--
       ``(1) the National Institute of Standards and Technology;
       ``(2) the National Fire Protection Association;
       ``(3) the National Association of County and City Health 
     Officials;
       ``(4) the Association of State and Territorial Health 
     Officials;
       ``(5) the American National Standards Institute;
       ``(6) the National Institute of Justice;
       ``(7) the Inter-Agency Board for Equipment Standardization 
     and Interoperability;
       ``(8) the National Public Health Performance Standards 
     Program;
       ``(9) the National Institute for Occupational Safety and 
     Health;
       ``(10) ASTM International;
       ``(11) the International Safety Equipment Association;
       ``(12) the Emergency Management Accreditation Program;
       ``(13) the National Domestic Preparedness Consortium; and
       ``(14) to the extent the Secretary considers appropriate, 
     other national voluntary consensus standards development 
     organizations, other interested Federal, State, and local 
     agencies, and other interested persons.
       ``(d) Coordination With Secretary of HHS.--In establishing 
     any national voluntary consensus standards under this section 
     for first responder equipment or training that involve or 
     relate to health professionals, including emergency medical 
     professionals, the Secretary shall coordinate activities 
     under this section with the Secretary of Health and Human 
     Services.''.

     SEC. 4. EFFECTIVE ADMINISTRATION OF HOMELAND SECURITY GRANTS.

       (a) Use of Grant Funds and Accountability.--The Homeland 
     Security Act of 2002 (Public Law 107-296; 6 U.S.C. 361 et 
     seq.), as amended by sections 2 and 3, is amended by adding 
     at the end the following:

     ``SEC. 2006. USE OF FUNDS AND ACCOUNTABILITY REQUIREMENTS.

       ``(a) In General.--A covered grant may be used for--
       ``(1) purchasing, upgrading, or maintaining equipment, 
     including computer software, to enhance terrorism 
     preparedness and response;
       ``(2) exercises to strengthen terrorism preparedness and 
     response;
       ``(3) training for prevention (including detection) of, 
     preparedness for, or response to attacks involving weapons of 
     mass destruction, including training in the use of equipment 
     and computer software;
       ``(4) developing or updating response plans;
       ``(5) establishing or enhancing mechanisms for sharing 
     terrorism threat information;
       ``(6) systems architecture and engineering, program 
     planning and management, strategy formulation and strategic 
     planning, life-cycle systems design, product and technology 
     evaluation, and prototype development for terrorism 
     preparedness and response purposes;
       ``(7) additional personnel costs resulting from--
       ``(A) elevations in the threat alert level of the Homeland 
     Security Advisory System by the Secretary, or a similar 
     elevation in threat alert level issued by a State, region, or 
     local government with the approval of the Secretary;
       ``(B) travel to and participation in exercises and training 
     in the use of equipment and on prevention activities;
       ``(C) the temporary replacement of personnel during any 
     period of travel to and participation in exercises and 
     training in the use of equipment and on prevention 
     activities; and
       ``(D) participation in information, investigative, and 
     intelligence-sharing activities specifically related to 
     terrorism prevention;
       ``(8) the costs of equipment (including software) required 
     to receive, transmit, handle, and store classified 
     information;
       ``(9) target hardening to reduce the vulnerability of high-
     value targets, as determined by the Secretary;
       ``(10) protecting critical infrastructure against potential 
     attack by the addition of barriers, fences, gates, and other 
     such devices, except that the cost of such measures may not 
     exceed the greater of--
       ``(A) $1,000,000 per project; or
       ``(B) such greater amount as may be approved by the 
     Secretary, which may not exceed 10 percent of the total 
     amount of the covered grant;
       ``(11) the costs of commercially available interoperable 
     communications equipment (which, where applicable, is based 
     on national, voluntary consensus standards) that the 
     Secretary, in consultation with the Chairman of the Federal 
     Communications Commission, deems best suited to facilitate 
     interoperability, coordination, and integration between and 
     among emergency communications systems, and that complies 
     with prevailing grant guidance of the Department for 
     interoperable communications;
       ``(12) educational curricula development for first 
     responders to ensure that they are prepared for terrorist 
     attacks;
       ``(13) training and exercises to assist public elementary 
     and secondary schools in developing and implementing programs 
     to instruct students regarding age-appropriate skills to 
     prepare for and respond to an act of terrorism;
       ``(14) paying of administrative expenses directly related 
     to administration of the grant, except that such expenses may 
     not exceed 3 percent of the amount of the grant; and
       ``(15) other appropriate activities as determined by the 
     Secretary.
       ``(b) Prohibited Uses.--Funds provided as a covered grant 
     may not be used--
       ``(1) to supplant State or local funds that have been 
     obligated for a homeland security or other first responder-
     related project;
       ``(2) to construct buildings or other physical facilities, 
     except for--
       ``(A) activities under section 611 of the Robert T. 
     Stafford Disaster Relief and Emergency Assistance Act (42 
     U.S.C. 5196); and
       ``(B) upgrading facilities to protect against, test for, 
     and treat the effects of biological agents, which shall be 
     included in the homeland security plan approved by the 
     Secretary under section 2002(c);
       ``(3) to acquire land; or
       ``(4) for any State or local government cost-sharing 
     contribution.
       ``(c) Multiple-Purpose Funds.--Nothing in this section 
     shall be construed to preclude State and local governments 
     from using covered grant funds in a manner that also enhances 
     first responder preparedness for emergencies and disasters 
     unrelated to acts of terrorism, if such use assists such 
     governments in achieving essential capabilities for terrorism 
     preparedness established by the Secretary under section 2003.
       ``(d) Reimbursement of Costs.--In addition to the 
     activities described in subsection (a), a covered grant may 
     be used to provide a reasonable stipend to paid-on-call or 
     volunteer first responders who are not otherwise compensated 
     for travel to or participation in training covered by this 
     section. Any such reimbursement shall not be considered 
     compensation for purposes of rendering such a first responder 
     an employee under the Fair Labor Standards Act of 1938 (29 
     U.S.C. 201 et seq.).
       ``(e) Assistance Requirement.--The Secretary may not 
     request that equipment paid for, wholly or in part, with 
     funds provided as a covered grant be made available for 
     responding to emergencies in surrounding States, regions, and 
     localities, unless the Secretary undertakes to pay the costs 
     directly attributable to transporting and operating such 
     equipment during such response.
       ``(f) Flexibility in Unspent Homeland Security Grant 
     Funds.--Upon request by the recipient of a covered grant, the 
     Secretary may authorize the grantee to transfer all or part 
     of funds provided as the covered grant from uses specified in 
     the grant agreement to other uses authorized under this 
     section, if the Secretary determines that such transfer is in 
     the interests of homeland security.
       ``(g) State, Regional, and Tribal Responsibilities.--
       ``(1) Pass-through.--The Secretary shall require a 
     recipient of a covered grant that is a State to obligate or 
     otherwise make available to local governments, first 
     responders,

[[Page S2036]]

     and other local groups, to the extent required under the 
     State homeland security plan or plans specified in the 
     application for the grant, not less than 80 percent of the 
     grant funds, resources purchased with the grant funds having 
     a value equal to at least 80 percent of the amount of the 
     grant, or a combination thereof, by not later than the end of 
     the 45-day period beginning on the date the grant recipient 
     receives the grant funds.
       ``(2) Certifications regarding distribution of grant funds 
     to local governments.--Any State that receives a covered 
     grant shall certify to the Secretary, by not later than 30 
     days after the expiration of the period described in 
     paragraph (1) with respect to the grant, that the State has 
     made available for expenditure by local governments, first 
     responders, and other local groups the required amount of 
     grant funds pursuant to paragraph (1).
       ``(3) Quarterly report on homeland security spending.--Each 
     recipient of a covered grant shall submit a quarterly report 
     to the Secretary not later than 30 days after the end of each 
     fiscal quarter. Each such report shall include, for each 
     recipient of a covered grant or a pass-through under 
     paragraph (1)--
       ``(A) the amount obligated to that recipient in that 
     quarter;
       ``(B) the amount expended by that recipient in that 
     quarter; and
       ``(C) a summary description of the items purchased by such 
     recipient with such amount.
       ``(4) Annual report on homeland security spending.--Each 
     recipient of a covered grant shall submit an annual report to 
     the Secretary not later than 60 days after the end of each 
     fiscal year. Each recipient of a covered grant that is a 
     region shall simultaneously submit its report to each State 
     of which any part is included in the region. Each recipient 
     of a covered grant that is a directly eligible tribe shall 
     simultaneously submit its report to each State within the 
     boundaries of which any part of such tribe is located. Each 
     report shall include the following:
       ``(A) The amount, ultimate recipients, and dates of receipt 
     of all funds received under the grant during the previous 
     fiscal year.
       ``(B) The amount and the dates of disbursements of all such 
     funds expended in compliance with paragraph (1) or pursuant 
     to mutual aid agreements or other sharing arrangements that 
     apply within the State, region, or directly eligible tribe, 
     as applicable, during the previous fiscal year.
       ``(C) How the funds were utilized by each ultimate 
     recipient or beneficiary during the preceding fiscal year.
       ``(D) The extent to which essential capabilities identified 
     in the applicable State homeland security plan or plans were 
     achieved, maintained, or enhanced as the result of the 
     expenditure of grant funds during the preceding fiscal year.
       ``(E) The extent to which essential capabilities identified 
     in the applicable State homeland security plan or plans 
     remain unmet.
       ``(5) Inclusion of restricted annexes.--A recipient of a 
     covered grant may submit to the Secretary an annex to the 
     annual report under paragraph (4) that is subject to 
     appropriate handling restrictions, if the recipient believes 
     that discussion in the report of unmet needs would reveal 
     sensitive but unclassified information.
       ``(6) Provision of reports.--The Secretary shall ensure 
     that each annual report under paragraph (4) is provided to 
     the Under Secretary for Emergency Preparedness and Response 
     and the Director of the Office of State and Local Government 
     Coordination.
       ``(h) Incentives to Efficient Administration of Homeland 
     Security Grants.--
       ``(1) Penalties for delay in passing through local share.--
     If a recipient of a covered grant that is a State fails to 
     pass through to local governments, first responders, and 
     other local groups funds or resources required by subsection 
     (g)(1) within 45 days after receiving funds under the grant, 
     the Secretary may--
       ``(A) reduce grant payments to the grant recipient from the 
     portion of grant funds that is not required to be passed 
     through under subsection (g)(1);
       ``(B) terminate payment of funds under the grant to the 
     recipient, and transfer the appropriate portion of those 
     funds directly to local first responders that were intended 
     to receive funding under that grant; or
       ``(C) impose additional restrictions or burdens on the 
     recipient's use of funds under the grant, which may include--
       ``(i) prohibiting use of such funds to pay the grant 
     recipient's grant-related overtime or other expenses;
       ``(ii) requiring the grant recipient to distribute to local 
     government beneficiaries all or a portion of grant funds that 
     are not required to be passed through under subsection 
     (g)(1); or
       ``(iii) for each day that the grant recipient fails to pass 
     through funds or resources in accordance with subsection 
     (g)(1), reducing grant payments to the grant recipient from 
     the portion of grant funds that is not required to be passed 
     through under subsection (g)(1), except that the total amount 
     of such reduction may not exceed 20 percent of the total 
     amount of the grant.
       ``(2) Extension of period.--The Governor of a State may 
     request in writing that the Secretary extend the 45-day 
     period under section 2002(e)(5)(E) or paragraph (1) for an 
     additional 15-day period. The Secretary may approve such a 
     request, and may extend such period for additional 15-day 
     periods, if the Secretary determines that the resulting delay 
     in providing grant funding to the local government entities 
     that will receive funding under the grant will not have a 
     significant detrimental impact on such entities' terrorism 
     preparedness efforts.
       ``(3) Provision of non-local share to local government.--
       ``(A) In general.--The Secretary may upon request by a 
     local government pay to the local government a portion of the 
     amount of a covered grant awarded to a State in which the 
     local government is located, if--
       ``(i) the local government will use the amount paid to 
     expedite planned enhancements to its terrorism preparedness 
     as described in any applicable State homeland security plan 
     or plans;
       ``(ii) the State has failed to pass through funds or 
     resources in accordance with subsection (g)(1); and
       ``(iii) the local government complies with subparagraph 
     (B).
       ``(B) Showing required.--To receive a payment under this 
     paragraph, a local government must demonstrate that--
       ``(i) it is identified explicitly as an ultimate recipient 
     or intended beneficiary in the approved grant application;
       ``(ii) it was intended by the grantee to receive a 
     severable portion of the overall grant for a specific purpose 
     that is identified in the grant application;
       ``(iii) it petitioned the grantee for the funds or 
     resources after expiration of the period within which the 
     funds or resources were required to be passed through under 
     subsection (g)(1); and
       ``(iv) it did not receive the portion of the overall grant 
     that was earmarked or designated for its use or benefit.
       ``(C) Effect of payment.--Payment of grant funds to a local 
     government under this paragraph--
       ``(i) shall not affect any payment to another local 
     government under this paragraph; and
       ``(ii) shall not prejudice consideration of a request for 
     payment under this paragraph that is submitted by another 
     local government.
       ``(D) Deadline for action by secretary.--The Secretary 
     shall approve or disapprove each request for payment under 
     this paragraph by not later than 15 days after the date the 
     request is received by the Department.
       ``(i) Reports to Congress.--The Secretary shall submit an 
     annual report to Congress by December 31 of each year--
       ``(1) describing in detail the amount of Federal funds 
     provided as covered grants that were directed to each State, 
     region, and directly eligible tribe in the preceding fiscal 
     year;
       ``(2) containing information on the use of such grant funds 
     by grantees; and
       ``(3) describing--
       ``(A) the Nation's progress in achieving, maintaining, and 
     enhancing the essential capabilities established under 
     section 2003(a) as a result of the expenditure of covered 
     grant funds during the preceding fiscal year; and
       ``(B) an estimate of the amount of expenditures required to 
     attain across the United States the essential capabilities 
     established under section 2003(a).''.
       (b) Sense of Congress Regarding Interoperable 
     Communications.--
       (1) Finding.--Congress finds that--
       (A) many emergency response providers (as defined under 
     section 2 of the Homeland Security Act of 2002 (6 U.S.C. 
     101), as amended by this Act) working in the same 
     jurisdiction or in different jurisdictions cannot effectively 
     and efficiently communicate with one another; and
       (B) their inability to do so threatens the public's safety 
     and may result in unnecessary loss of lives and property.
       (2) Sense of congress.--It is the sense of Congress that 
     interoperable emergency communications systems and radios 
     should continue to be deployed as soon as practicable for use 
     by the emergency response provider community, and that 
     upgraded and new digital communications systems and new 
     digital radios should meet prevailing national voluntary 
     consensus standards for interoperability.
       (c) Sense of Congress Regarding Citizen Corps Councils.--
       (1) Finding.--Congress finds that Citizen Corps councils 
     help to enhance local citizen participation in terrorism 
     preparedness by coordinating multiple Citizen Corps programs, 
     developing community action plans, assessing possible 
     threats, and identifying local resources.
       (2) Sense of congress.--It is the sense of Congress that 
     individual Citizen Corps councils should seek to enhance the 
     preparedness and response capabilities of all organizations 
     participating in the councils, including by providing funding 
     to as many of their participating organizations as 
     practicable to promote local terrorism preparedness programs.
       (d) Required Coordination.--The Secretary of Homeland 
     Security shall ensure that there is effective and ongoing 
     coordination of Federal efforts to prevent, prepare for, and 
     respond to acts of terrorism and other major disasters and 
     emergencies among the divisions of the Department of Homeland 
     Security, including the Directorate of Emergency Preparedness 
     and Response and the Office for State and Local Government 
     Coordination and Preparedness.

[[Page S2037]]

       (e) Coordination of Industry Efforts.--Section 102(f) of 
     the Homeland Security Act of 2002 (6 U.S.C. 112(f)) is 
     amended--
       (1) in paragraph (9), by striking ``and'' after the 
     semicolon;
       (2) in paragraph (10), by striking the period and inserting 
     ``; and''; and
       (3) by adding at the end the following:
       ``(11) coordinating industry efforts, with respect to 
     functions of the Department of Homeland Security, to identify 
     private sector resources and capabilities that could be 
     effective in supplementing Federal, State, and local 
     government agency efforts to prevent or respond to a 
     terrorist attack.''.
       (f) Study Regarding Nationwide Emergency Notification 
     System.--
       (1) Study.--The Secretary of Homeland Security, in 
     consultation with the heads of other appropriate Federal 
     agencies and representatives of providers and participants in 
     the telecommunications industry, shall conduct a study to 
     determine whether it is cost effective, efficient, and 
     feasible to establish and implement an emergency telephonic 
     alert notification system that will--
       (A) alert persons in the United States of imminent or 
     current hazardous events caused by acts of terrorism; and
       (B) provide information to individuals regarding 
     appropriate measures that may be undertaken to alleviate or 
     minimize threats to their safety and welfare posed by such 
     events.
       (2) Technologies to consider.--In conducting the study 
     under paragraph (1), the Secretary shall consider the use of 
     the telephone, wireless communications, and other existing 
     communications networks to provide such notification.
       (3) Report.--Not later than 9 months after the date of 
     enactment of this Act, the Secretary shall submit to Congress 
     a report regarding the conclusions of the study conducted 
     under paragraph (1).
       (g) Study of Expansion of Area of Jurisdiction of Office of 
     National Capital Region Coordination.--
       (1) Study.--The Secretary of Homeland Security, acting 
     through the Director of the Office of National Capital Region 
     Coordination, shall conduct a study of the feasibility and 
     desirability of modifying the definition of ``National 
     Capital Region'' applicable under section 882 of the Homeland 
     Security Act of 2002 (6 U.S.C. 462) to expand the geographic 
     area under the jurisdiction of the Office of National Capital 
     Region Coordination.
       (2) Factors.--In conducting the study under paragraph (1), 
     the Secretary shall analyze whether expanding the geographic 
     area under the jurisdiction of the Office of National Region 
     Coordination will--
       (A) promote coordination among State and local governments 
     within the Region, including regional governing bodies, and 
     coordination of the efforts of first responders; and
       (B) enhance the ability of such State and local governments 
     and the Federal Government to prevent and respond to a 
     terrorist attack within the Region.
       (3) Report.--Not later than 6 months after the date of the 
     enactment of this Act, the Secretary shall submit a report to 
     Congress on the study conducted under paragraph (1), and 
     shall include in the report such recommendations (including 
     recommendations for legislation to amend section 882 of the 
     Homeland Security Act of 2002 (6 U.S.C. 462)) as the 
     Secretary considers appropriate.
       (h) Study of Risk Allocation for Port Security Grants.--
       (1) Study.--The Secretary of Homeland Security shall 
     conduct a study of the factors to be used for the allocation 
     of funds based on risk for port security grants made under 
     section 70107 of title 46, United States Code.
       (2) Factors.--In conducting the study, the Secretary shall 
     analyze the volume of international trade and economic 
     significance of each port.
       (3) Report.--Not later than 90 days after the enactment of 
     the Act, the Secretary shall submit a report to Congress on 
     the study and shall include recommendations for using such 
     factors in allocating grant funds to ports.
       (i) Study of Allocation of Assistance to Firefighter 
     Grants.--
       (1) Study.--The Secretary of Homeland Security shall 
     conduct a study of the allocation of grant fund awards made 
     under the Assistance to Firefighter Grants program and shall 
     analyze the distribution of awards by State.
       (2) Factors.--In conducting the study, the Secretary shall 
     analyze the number of awards and the per capita amount of 
     grant funds awarded to each State and the level of unmet 
     firefighting equipment needs in each State. The study shall 
     also analyze whether allowing local departments to submit 
     more than 1 annual application and expanding the list of 
     eligible applicants for such grants to include States will 
     enhance the ability of State and local governments to respond 
     to fires.
       (3) Report.--Not later than 90 days after the date of 
     enactment of the Act, the Secretary shall submit a report to 
     Congress on the study and shall include recommendations for 
     legislation amending the factors used in allocating grant 
     funds to insure that critical firefighting needs are 
     addressed by the program in all areas of the Nation.

     SEC. 5. IMPLEMENTATION; DEFINITIONS; TABLE OF CONTENTS.

       (a) Technical and Conforming Amendment.--Section 1014 of 
     the USA PATRIOT ACT (42 U.S.C. 3714) is amended--
       (1) by striking subsection (c)(3);
       (2) by redesignating subsection (c) as subsection (d); and
       (3) by inserting after subsection (b) the following:
       ``(c) Administration.--Grants under this section shall be 
     administered in accordance with title XX of the Homeland 
     Security Act of 2002.''.
       (b) Temporary Limitations on Application.--
       (1) 1-year delay in application.--The following provisions 
     of title XX of the Homeland Security Act of 2002, as added by 
     this Act, shall not apply during the 1-year period beginning 
     on the date of enactment of this Act--
       (A) Subsections (b), (c), and (e)(4) (A) and (B) of section 
     2002; and
       (B) In section 2002(f)(3)(A)(i), the phrase ``by achieving, 
     maintaining, or enhancing the essential capabilities of the 
     applicants on a nationwide basis,''.
       (2) 2-year delay in application.--The following provisions 
     of title XX of the Homeland Security Act of 2002, as added by 
     this Act, shall not apply during the 2-year period beginning 
     on the date of enactment of this Act--
       (A) Subparagraphs (D) and (E) of section 2006(g)(4); and
       (B) Section 2006(i)(3).
       (c) Definitions.--
       (1) Title xx.--Title XX of the Homeland Security Act of 
     2002, as amended by sections 2, 3, and 4, is amended by 
     adding at the end the following:

     ``SEC. 2007. DEFINITIONS.

       ``In this title:
       ``(1) Board.--The term `Board' means the Homeland Security 
     Grants Board established under section 2002(f).
       ``(2) Consequence.--The term `consequence' means the 
     assessment of the effect of a completed attack.
       ``(3) Covered grant.--The term `covered grant' means any 
     grant to which this title applies under section 2001(b).
       ``(4) Directly eligible tribe.--The term `directly eligible 
     tribe' means any Indian tribe or consortium of Indian tribes 
     that--
       ``(A) meets the criteria for inclusion in the qualified 
     applicant pool for self-governance that are set forth in 
     section 402(c) of the Indian Self-Determination and Education 
     Assistance Act (25 U.S.C. 458bb(c));
       ``(B) employs at least 10 full-time personnel in a law 
     enforcement or emergency response agency with the capacity to 
     respond to calls for law enforcement or emergency services; 
     and
       ``(C)(i) is located on, or within 5 miles of, an 
     international border or waterway;
       ``(ii) is located within 5 miles of a facility designated 
     as high-risk critical infrastructure by the Secretary;
       ``(iii) is located within or contiguous to 1 of the 50 
     largest metropolitan statistical areas in the United States; 
     or
       ``(iv) has more than 1,000 square miles of Indian country, 
     as that term is defined in section 1151 of title 18, United 
     States Code.
       ``(5) Elevations in the threat alert level.--The term 
     `elevations in the threat alert level' means any designation 
     (including those that are less than national in scope) that 
     raises the homeland security threat level to either the 
     highest or second-highest threat level under the Homeland 
     Security Advisory System referred to in section 201(d)(7).
       ``(6) Emergency preparedness.--The term `emergency 
     preparedness' shall have the same meaning that term has under 
     section 602 of the Robert T. Stafford Disaster Relief and 
     Emergency Assistance Act (42 U.S.C. 5195a).
       ``(7) Essential capabilities.--The term `essential 
     capabilities' means the levels, availability, and competence 
     of emergency personnel, planning, training, and equipment 
     across a variety of disciplines needed to effectively and 
     efficiently prevent, prepare for, and respond to acts of 
     terrorism consistent with established practices.
       ``(8) First responder.--The term `first responder' shall 
     have the same meaning as the term `emergency response 
     provider' under section 2.
       ``(9) Indian tribe.--The term `Indian tribe' means any 
     Indian tribe, band, nation, or other organized group or 
     community, including any Alaskan Native village or regional 
     or village corporation as defined in or established pursuant 
     to the Alaskan Native Claims Settlement Act (43 U.S.C. 1601 
     et seq.), which is recognized as eligible for the special 
     programs and services provided by the United States to 
     Indians because of their status as Indians.
       ``(10) Region.--The term `region' means any geographic 
     area--
       ``(A) certified by the Secretary under section 2002(a)(3);
       ``(B) consisting of all or parts of 2 or more counties, 
     municipalities, or other local governments and including a 
     city with a core population exceeding 500,000 according to 
     the most recent estimate available from the United States 
     Census; and
       ``(C) that, for purposes of an application for a covered 
     grant--
       ``(i) is represented by 1 or more local governments or 
     governmental agencies within such geographic area; and
       ``(ii) is established by law or by agreement of 2 or more 
     such local governments or governmental agencies, such as 
     through a mutual aid agreement.
       ``(11) Risk-based funding.--The term `risk-based funding' 
     means the allocation of funds based on an assessment of 
     threat, vulnerability, and consequence.

[[Page S2038]]

       ``(12) Task force.--The term `Task Force' means the Task 
     Force on Essential Capabilities established under section 
     2004.
       ``(13) Threat.--The term `threat' means the assessment of 
     the plans, intentions, and capability of an adversary to 
     implement an identified attack scenario.
       ``(14) Vulnerability.--The term `vulnerability' means the 
     degree to which a facility is available or accessible to an 
     attack, including the degree to which the facility is 
     inherently secure or has been hardened against such an 
     attack.''.
       (2) Definition of emergency response providers.--Paragraph 
     (6) of section 2 of the Homeland Security Act of 2002 (6 
     U.S.C. 101(6)) is amended by striking ``includes'' and all 
     that follows and inserting ``includes Federal, State, and 
     local governmental and nongovernmental emergency public 
     safety, law enforcement, fire, emergency response, emergency 
     medical (including hospital emergency facilities), and 
     related personnel, organizations, agencies, and 
     authorities.''.
       (d) Table of Contents.--Section 1(b) of the Homeland 
     Security Act of 2002 (6 U.S.C. 101 note) is amended in the 
     table of contents by adding at the end the following:

          ``TITLE XX--RISK-BASED FUNDING FOR HOMELAND SECURITY

``Sec. 2001. Risk-based funding for homeland security
``Sec. 2002. Covered grant eligibility and criteria
``Sec. 2003. Essential capabilities for homeland security
``Sec. 2004. Task Force on Essential Capabilities
``Sec. 2005. National standards for first responder equipment and 
              training
``Sec. 2006. Use of funds and accountability requirements
``Sec. 2007. Definitions''.

  Mr. CORNYN. Mr. President, I rise today to join with my colleague, 
Sen. Dianne Feinstein of California, and several of our distinguished 
colleagues in introducing The Risk-Based Homeland Security Grants Act 
of 2007.
  Senator Feinstein, myself, and other Senators have been working now 
for several years on changing how our homeland security dollars are 
distributed throughout the country. Some have been talking about the 
need for a risk-based allocation of assistance as long as the 
Department of Homeland Security has been in existence. Throughout these 
debates, Senator Feinstein has been a tireless advocate in this effort, 
and I would like to thank her for her fine leadership and collaboration 
in crafting this legislation.
  The attacks on our country on September 11, 2001 were unprecedented 
in our history, and they brought with them the need for similarly 
unprecedented security measures. Our Nation needed to respond quickly 
to the devastation that day delivered to our country, so the Federal 
Government created a system that worked to raise overall national 
emergency preparedness to ensure we could better guard against another 
such terrorist attack.
  And so, we embarked on the task of shoring up our airline, 
transportation, border, and port security. We worked to protect our 
critical infrastructure, to protect our cyber security, our agriculture 
and food-supply systems.
  But taxpayer dollars are not limitless, and Congress must work to 
ensure every penny be directed where it will do the most good. It is 
imperative that we guard the places across our Nation where terrorists 
are most likely to strike, and where such strikes could do the most 
damage to our people, our government, and our national economy. We 
believe this is the most responsible way to prepare for any future 
attack.
  We need to have a system that will protect our most vulnerable assets 
and populations--one that recognizes the need to protect the critical 
infrastructure and vital components of our national economy. I am 
reminded of this often when I travel around my home State of Texas. 
Recently, I met with officials and business leaders from Houston and 
Southeast Texas and discussed their homeland security needs. Their 
needs are enormous considering the vast amount of critical 
infrastructure and energy facilities in and among large population 
centers. The potential consequences of a terrorist attack on any of 
these facilities would be devastating, not only to the local 
communities, but to the economic engine of the whole country. 
Unfortunately, we got a small taste of effects of a disaster along 
America's energy coast during the storms of 2005--hurricanes Katrina 
and Rita.
  The legislation that Senator Feinstein and I are proposing would 
require that Federal Homeland Security funds be allocated to States 
according to a risk-based assessment. It is vital that we better 
allocate our limited resources to the vulnerable places in the country 
we most need to protect, and that that these funds are distributed in 
an efficient and timely manner.
  Since we began this effort, I am pleased that there has been progress 
made. The considerations of threat, vulnerability, and consequence have 
been incorporated into more homeland security programs. But I'm 
concerned that we haven't done enough. And I'm concerned that our 
homeland security dollars are being treated as a pie in which all 
States get to claim a piece, regardless of risk.
  This approach is inconsistent if we truly evaluate the 9/11 
Commission recommendations. They clearly call for allocation of money 
based on an assessment of risks.
  Our legislation provides for a distribution formula for homeland 
security grants based on risk, which considers three main criteria: 
threat, vulnerability, and consequence. It requires States to quickly 
pass on Federal funds to areas where they are most needed. It provides 
greater flexibility in using the funds, allowing a State to use them 
for other hazards consistent with federally established capability 
standards. And it allows States to retain authority to administer grant 
programs, but there are penalties for states that do not pass funds to 
local governments within 45 days, and if a State fails to pass the 
funds through, local governments may petition the Department of 
Homeland Security to receive the funds directly.
  It is our hope and intent that, by introducing this bill, we can 
positively contribute and enrich the public discourse on this critical 
issue, and help move the Nation toward a more rational and effective 
distribution of our homeland security resources.
  Continuing to spread Homeland Security funds throughout the Nation--
irrespective of the actual risk to particular states and communities--
would be to ignore much of what we have learned as part of our effort 
to assess our vulnerabilities since the attacks of September 11. So I 
would urge that we swiftly work to pass this legislation, to better 
ensure the safety of our citizens.
                                 ______