[Congressional Record Volume 164, Number 188 (Thursday, November 29, 2018)]
[Senate]
[Pages S7224-S7225]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]



           Chemical Facility Anti-Terrorism Standards Program

  Mr. JOHNSON. Mr. President, I am here today to ask my colleagues to 
approve a bill to reform and reauthorize the Chemical Facility Anti-
Terrorism Standards Program, commonly known as CFATS.
  This CFATS Program regulates chemical facilities to help prevent 
terrorists from carrying out an attack with dangerous chemicals--a 
worthy goal. However, since 2006, watchdogs have identified significant 
problems with the program. In 2013, the Government Accountability 
Office found that CFATS had a 7- to 9-year backlog to review more than 
3,000 security plans and a flawed methodology to assess security.
  The inspector general and Congress have questioned whether the 
program successfully reduces risk, enhances security, and warned of 
serious management problems. That is why each time Congress has 
reauthorized the program, it has done so only for a limited duration. 
Coming from a manufacturing background, I agree with that approach. 
That is exactly how you help ensure continuous improvement.
  In 2014, when the program was last set to expire, the Committee on 
Homeland Security and Governmental Affairs--under the chairmanship of 
Senator Carper--and Congress did their job. They did oversight. They 
made reforms and extended the program for another 4 years, until 
January 2019.
  Under my chairmanship, our committee also took its oversight and 
reauthorization responsibilities seriously. Over the last 2 years, we 
have conducted extensive oversight on CFATS to evaluate the program's 
effectiveness and develop a plan to make it better. We enlisted the 
help of GAO to conduct a nonpartisan review of the CFATS Program to 
help inform our work. We held a roundtable with DHS, GAO, a CFATS 
chemical inspector, and multiple companies and industry groups. We had 
an important, frank discussion about the program's strengths and 
weaknesses. The committee also held numerous briefings with chemical 
facility owners, trade groups, DHS, and other relevant agencies.
  After gathering information and talking directly with stakeholders, 
here is what we have learned: DHS has made significant progress under 
the 2014 reforms by eliminating the backlog and improving management of 
the program, but more work is necessary.
  It is still far from clear that CFATS actually reduces the risk of 
terrorist attack, and DHS does not measure whether it actually does so. 
The program forces some explosive material companies to spend hundreds 
of thousands of dollars complying with CFATS regulations that are 
duplicative of Justice Department regulations and subject companies to 
frequent, unnecessary site inspections. These practices are extremely 
costly and neither reduce risk nor enhance security.
  The program fails to give credit to companies that already comply 
with other private sector-specific programs that require high standards 
of care. Recognizing these exceptional programs would significantly 
reduce the regulatory burden on companies without reducing security.
  DHS needs to do more to make this expedited approval process 
available to reduce unnecessary costs on both the companies and the 
American taxpayers, and it needs to be more transparent about how it 
classifies facilities to help companies understand what rules to even 
follow.
  After conducting this oversight, I introduced a bill to address these 
issues and reauthorize the program for 5 years. Representatives Katko, 
Moolenaar, and Cuellar introduced a similar, bipartisan bill in the 
House.
  Our legislation brings much needed regulatory relief to U.S. 
businesses by exempting explosive materials that are also regulated by 
the Bureau of Alcohol, Tobacco, Firearms and Explosives, reducing the 
frequency of audits and inspections, and reducing the burden of 
compliance for companies that participate in CFATS' recognition 
program, all while ensuring safety and security. It improves 
transparency by requiring DHS to provide information to companies on 
why their regulatory tier changed. It requires more DHS and independent 
assessments of how successful the program is at reducing risk and 
enhancing security. It also reauthorizes the program for 5 years.
  After going through a thorough process of discussion and compromise, 
our committee approved the bill unanimously by voice vote in September.
  The bill is supported by a wide range of private sector stakeholders, 
including the U.S. Chamber of Commerce, the American Chemical Council, 
the National Association of Manufacturers, and numerous others.
  Mr. President, I ask unanimous consent that their letters of support 
be printed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows;

                                               September 25, 2018.
     Hon. Ron Johnson.
     Chairman, Committee on Homeland Security and Governmental 
         Affairs, U.S. Senate, Washington, DC.
       Dear Chairman Johnson: The Chemical Facility Anti-Terrorism 
     Standards (CFATS) Coalition comprises a diverse group of 
     trade associations and companies impacted by CFATS 
     regulations. Coalition members represent major sectors of the 
     American economy, including chemical production, chemical 
     distribution and storage, manufacturing, oil and gas 
     refining, utilities, mining, and agricultural goods and 
     services. The businesses we represent are an integral part of 
     the American economy, making our modern society possible. Our 
     members have no higher priority than ensuring the safety and 
     security of our products, our people, and our communities.
       We applaud your leadership on this important security issue 
     by introducing the ``Protecting and Securing Chemical 
     Facilities from Terrorist Attacks Act of 2018'' (S. 3405). 
     This legislation is an important marker in the 
     reauthorization process, and we look forward to working with 
     you and your colleagues to develop legislation that will 
     provide additional improvements and efficiencies to the CFATS 
     program. By reauthorizing the program for five years, S. 3405 
     would provide needed certainty to the regulated community and 
     enhance the security of our nation.
       Since the inception of the CFATS program in 2007, our 
     industries have invested millions of dollars and instituted 
     thousands of new security measures at our facilities. The 
     ``Protecting and Securing Chemical Facilities from Terrorist 
     Attacks Act'' of 2014 (P.L. 113-254), which for the first 
     time provided CFATS a multi-year authorization, further 
     enhanced these efforts by establishing regulatory certainty 
     to both industry and the Department of Homeland Security 
     (DHS). This stability allowed DHS to increase efficiencies in 
     the program while streamlining the information submission 
     process for regulated facilities.
       On January 19, 2019, the current authorization will expire. 
     The CFATS Coalition wants to ensure the continued viability 
     of the CFATS program without interruption and the 
     introduction of S. 3405 is a significant first step in this 
     process. Thank you for your leadership on this issue and we 
     look forward to working with you towards a successful CFATS 
     reauthorization.
           Sincerely,
       Agricultural Retailers Association, American Fuel & 
     Petrochemical Manufacturers, American Petroleum Institute, 
     Institute of Makers of Explosives, International Warehouse 
     Logistics Association, National Association of Chemical 
     Distributors, Society of Chemical Manufacturers & Affiliates, 
     U S Chamber of Commerce, American Chemistry Council, American 
     Gas Association, Edison Electric Institute, International 
     Liquid Terminals Association, Interstate Natural Gas 
     Association of America, National Association of 
     Manufacturers, National Mining Association, The Fertilizer 
     Institute.
                                  ____

                                               September 21, 2018.
     Re ARA and TFI Support for Protecting and Securing Chemical 
         Facilities from Terrorist Attacks Act of 2018 (S. 3405).

     Hon. Ron Johnson,
     Chairman, Committee on Homeland Security and Governmental 
         Affairs, U.S. Senate, Washington, DC.
     Hon. Claire McCaskill,
     Ranking Member, Committee on Homeland Security and 
         Governmental Affairs, U.S. Senate, Washington, DC.
       Dear Chairman Johnson and Ranking Member McCaskill: The 
     Agricultural Retailers Association (ARA) and The Fertilizer 
     Institute (TFI) strongly support the ``Protecting and 
     Securing Chemical Facilities from Terrorist Attacks Act of 
     2018'' (S. 3405).
       Thousands of ARA and TFI member facilities are subject to 
     the Chemical Facility Anti-Terrorism Standards (CFATS) 
     program administered by the Department of Homeland Security 
     (DHS) because they store, handle, and sell certain CFATS 
     chemicals of interest (COI), such as anhydrous ammonia and 
     ammonium nitrate.
       Safety and security of facilities--to protect workers and 
     the surrounding communities--is paramount to ARA and TFI 
     members. That is why ARA, TFI, and our members created the 
     ResponsibleAg stewardship program. ResponsibleAg is a 
     voluntary, industry-led initiative committed to helping

[[Page S7225]]

     agribusinesses properly store and handle farm input supplies. 
     The program helps members ensure they are compliant with 
     federal environmental, health, safety, security, and 
     transportation regulations, including CFATS, to keep 
     employees, customers and communities safe.
       The CFATS program provides an important framework to ensure 
     facilities are taking appropriate steps to be safe and 
     secure. The current Congressional authorization for CFATS is 
     set to expire in January of 2019. Any lapse in authorization 
     of the CFATS program would subject our members to uncertainty 
     in an already volatile agricultural market and environment.
       S. 3405 makes several improvements to the CFATS program. We 
     are pleased to see the legislation requires DHS to conduct 
     notice and comment rulemakings to make changes to Appendix A. 
     This requirement will ensure a thorough exchange of 
     information is done so the most informed decisions can be 
     made.
       ARA and TFI also appreciate the inclusion of Section 7, 
     which would make the Personnel Surety Program requirements of 
     CFATS optional for tier 3 and 4 facilities. Tiers 3 and 4 
     facilities do not face the same insider threat possibility as 
     tiers 1 and 2. This provision gives industry the flexibility 
     to find a personnel surety solution that best fits their 
     facility and security needs.
       ARA and TFI also strongly support Section 5, entitled, 
     ``CFATS Recognition Program.'' This portion of the 
     legislation will allow DHS to utilize and focus limited 
     resources, while incentivizing other facilities to 
     voluntarily come into compliance through stewardship 
     programs. Stewardship programs, like ResponsibleAg, are 
     already working to identify gaps in CFATS compliance at 
     agricultural retail facilities. When gaps in compliance are 
     identified, ResponsibleAg works with the facility on a timely 
     and thorough corrective action plan to bring that facility 
     into compliance. A ``CFATS Recognition Program'' would be a 
     great ``win-win'' and strengthen the collaborative 
     partnership between industry and government.
       Finally, thank you for your leadership regarding 
     reauthorization of the CFATS program. We appreciate all of 
     you and your staffs' efforts to make a good government 
     program better.
       Should you have any questions, please reach out to our 
     staff, Kyle Liske at ARA.
           Sincerely,
     Daren Coppock,
       President and CEO, Agricultural Retailers Association.
     Chris Jahn,
       President and CEO, The Fertilizer Institute.
                                  ____



                            Institute of Makers of Explosives,

                               Washington, DC, September 12, 2018.
     Hon. Ron Johnson,
     U.S. Senate,
     Washington, DC.
       Dear Senator Johnson: Yesterday our nation marked another 
     somber milestone, the 17th anniversary of the terrorist 
     attacks of September 11, 2001. That tragedy led to great 
     changes in our government, including the establishment of the 
     Department of Homeland Security (DHS). As directed by 
     Congress, DHS focuses on securing high-risk chemical plants 
     through the Chemical Facility Anti-Terrorism Standards 
     (CFATS) program. The members of the Institute of Makers of 
     Explosives (IME) fully support your legislation that 
     reauthorizes this important program, the Protecting and 
     Securing Chemical Facilities from Terrorist Attacks Act of 
     2018 (S. 3405), and we urge the Senate to approve the 
     legislation.
       Founded in 1913, IME is the safety and security institute 
     for the commercial explosives industry, a charge we do not 
     take lightly, as evidenced by the industry's excellent 
     security track record and work with the Bureau of Alcohol, 
     Tobacco, Firearms, and Explosives, among other agencies. IME 
     represents manufacturers of commercial explosives and other 
     companies that distribute explosives or provide related 
     services. Commercial explosives are used in every state and 
     are distributed worldwide. The ability to manufacture and 
     distribute these products safely and securely is critical to 
     this industry and to the mining, construction, and oil & gas 
     industries that use our products. IME takes an active role in 
     promoting responsible practices through the full life cycle 
     of commercial explosives and regularly publishes, updates, 
     and distributes free of charge, our series of Safety Library 
     Publications (SLPs), including SLP 27, Security in 
     Manufacturing, Transportation, Storage and Use of Commercial 
     Explosives, to the benefit of our workers and the general 
     public.
       Your leadership, as demonstrated by including improvements 
     identified during the June CFATS roundtable oversight hearing 
     which you chaired, is greatly appreciated. The commercial 
     explosives industry looks forward to work with you and the 
     Committee to reauthorize the CFATS program. We believe that 
     S. 3405 enhances national security while reducing blatantly 
     duplicative regulations; clearing the path for government to 
     focus resources on highest priority threats to our national 
     security while allowing industry to invest their time and 
     resources in a regulatory system that has proven to be 
     effective.
       IME fully endorses S. 3405 and urge the Senate to pass this 
     common-sense solution without delay. We welcome the 
     opportunity to work with you to advance this important 
     legislation.
           Respectfully,
                                                      John Boling,
                             Vice President of Government Affairs.

  Mr. JOHNSON. Having gone through all this work, all this oversight, 
taking that responsibility seriously, I recently have been asked to 
support a 1-year reauthorization of the program without any reforms. 
Without any consultation, Secretary Nielsen just sent me a letter 
completely ignoring the work our committee has done and informing of 
her support for a ``short-term'' extension.
  Today, I was told the House plans to pass not a 1-year but a 2-year 
extension with no reforms. The House is claiming they cannot possibly 
consider reforms because there is simply not enough time, because they 
haven't done any oversight, because they didn't mark up a bill in this 
Congress. Yet the House Committee on Homeland Security has had years to 
act.
  My committee did the work. We did act. Now I am being threatened with 
a false choice: Either reauthorize the program as is, without much 
needed reforms, or let it die. In fact, there is a much better third 
choice: Pass S. 3405, the bill our committee passed unanimously, the 
bill that provides unanimous reforms that strike the right balance 
between security and efficiency.
  Again, our committee did the work. We did act. And I have to tell all 
my colleagues here, this is the only option I will support.

                          ____________________