[House Report 108-746]
[From the U.S. Government Publishing Office]



108th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     108-746
======================================================================


 
  PUBLIC TRANSPORTATION TERRORISM PREVENTION AND RESPONSE ACT OF 2004

                                _______
                                

October 6, 2004.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

     Mr. Young of Alaska, from the Committee on Transportation and 
                Infrastructure, submitted the following

                              R E P O R T

                        [To accompany H.R. 5082]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Transportation and Infrastructure, to whom 
was referred the bill (H.R. 5082) to authorize the Secretary of 
Transportation to award grants to public transportation 
agencies and over-the-road bus operators to improve security, 
and for other purposes, having considered the same, reports 
favorably thereon with an amendment and recommends that the 
bill as amended do pass.

  The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Public Transportation Terrorism 
Prevention and Response Act of 2004''.

                TITLE I--PUBLIC TRANSPORTATION SECURITY

SEC. 101. FINDINGS; PURPOSE; PUBLIC TRANSPORTATION DEFINED.

  (a) Findings.--Congress finds that--
          (1) throughout the world, public transportation systems have 
        been a primary target of terrorist attacks, causing countless 
        deaths and injuries;
          (2) 6,000 public transportation agencies operate in the 
        United States;
          (3) 14,000,000 people in the United States ride public 
        transportation each work day;
          (4) safe and secure public transportation systems are 
        essential to the Nation's economy and for significant national 
        and international public events;
          (5) the Federal Transit Administration has invested 
        $68,700,000,000 since 1992 for construction and improvements to 
        the Nation's public transportation systems;
          (6) the Federal Government appropriately invested 
        $11,000,000,000 in fiscal years 2002 and 2003 to protect our 
        Nation's aviation system and its 1,800,000 daily passengers;
          (7) the Federal Government invested $115,000,000 in fiscal 
        years 2003 and 2004 to protect public transportation systems in 
        the United States;
          (8) the Federal Government has invested $9.16 in aviation 
        security improvements per passenger, but only $0.006 in public 
        transportation security improvements per passenger;
          (9) the General Accounting Office, the Mineta International 
        Institute for Surface Transportation Policy Studies, the 
        American Public Transportation Association, and other experts 
        have reported an urgent need for significant investment in 
        transit security improvements;
          (10) Federal financial assistance for transit security 
        improvements should be separate from and supplementary to 
        funding for longstanding Federal programs for investment in 
        public transportation infrastructure;
          (11) the Final Report of the National Commission on Terrorist 
        Attacks Upon the United States (also known as the ``9/11 
        Commission'') found that the Federal Government should--
                  (A) identify and evaluate the transportation assets 
                that need to be protected, set risk-based priorities 
                for defending them, and select the most practical and 
                cost-effective ways of doing so;
                  (B) develop a plan, a budget, and funding to 
                implement the effort; and
                  (C) assign roles and missions to the relevant 
                authorities (Federal, State, regional, and local) and 
                to private stakeholders;
          (12) the Final Report of the 9/11 Commission also found that 
        homeland security assistance should be based strictly on an 
        assessment of risks and vulnerabilities; and
          (13) the Federal Government has a duty to deter and mitigate, 
        to the greatest extent practicable, threats against the 
        Nation's public transportation systems.
  (b) Purpose.--The purpose of this title is to award grants to public 
transportation agencies and over-the-road bus operators to improve 
security in a manner consistent with the recommendations of the 9/11 
Commission described in subsections (a)(11) and (a)(12).
  (c) Public Transportation Defined.--In this title, the term ``public 
transportation'' has the meaning given such term in section 5302(a) of 
title 49, United States Code.

SEC. 102. MEMORANDUM OF UNDERSTANDING.

  (a) In General.--Not later than 45 days after the date of enactment 
of this Act, the Secretary of Transportation shall enter into a 
memorandum of understanding with the Secretary of Homeland Security to 
define and clarify the respective public transportation security roles 
and responsibilities of the Department of Transportation and the 
Department of Homeland Security.
  (b) Contents.--The memorandum of understanding described in 
subsection (a) shall--
          (1) establish a process to develop security standards for 
        public transportation agencies;
          (2) establish funding priorities for grants for security 
        improvements from the Department of Transportation to public 
        transportation agencies;
          (3) create a method of direct coordination with public 
        transportation agencies on security matters;
          (4) address any other issues determined to be appropriate by 
        the Secretary of Transportation and the Secretary of Homeland 
        Security; and
          (5) include a formal and permanent mechanism to ensure 
        coordination and involvement by the Department of 
        Transportation, as appropriate, in public transportation 
        security.

SEC. 103. SECURITY ASSESSMENTS.

  (a) Public Transportation Security Assessments.--
          (1) Submission.--The Federal Transit Administration of the 
        Department of Transportation shall submit all public 
        transportation security assessments conducted by the Federal 
        Transit Administration and all other relevant information to 
        the Department of Homeland Security.
          (2) Review.--
                  (A) In general.--Not later than 180 days after the 
                date of enactment of this Act, the Secretary of 
                Transportation and the Secretary of Homeland Security 
                shall review and modify, as appropriate, the security 
                assessments received under paragraph (1).
                  (B) Components.--In conducting the reviews, the 
                Secretaries shall ensure that the assessment of each 
                public transportation system identifies--
                          (i) the critical assets of the system;
                          (ii) threats to those assets;
                          (iii) security weaknesses in the system and 
                        its assets;
                          (iv) redundant and backup systems required to 
                        ensure the continued operation of critical 
                        elements of the system in the event of an 
                        attack or other incident; and
                          (v) the extent to which public transportation 
                        employees, including bus and rail operators, 
                        mechanics, customer service personnel, 
                        maintenance employees, transit police, and 
                        security personnel, have received training in 
                        security awareness and public transportation 
                        system emergency response procedures.
          (3) Allocations.--
                  (A) In general.--The Secretary of Transportation 
                shall allocate grants under section 104 among public 
                transportation agencies receiving an assessment 
                referred to in paragraph (1) based on the results of 
                the assessment, as modified under paragraph (2).
                  (B) Response to urgent threats.--After providing 
                written notice to the Committee on Transportation and 
                Infrastructure of the House of Representatives and the 
                Committee on Banking, Housing, and Urban Affairs of the 
                Senate, the Secretary of Transportation may adjust 
                grant allocations under this paragraph if the Secretary 
                determines that the adjustment is necessary to respond 
                to an urgent threat or other significant factors.
          (4) Security improvement priorities.--The Secretary of 
        Transportation shall establish security improvement priorities, 
        in consultation with the management and employee 
        representatives of each public transportation system receiving 
        an assessment. Such priorities shall apply to funds provided to 
        a public transportation agency under section 104.
          (5) Updates.--The Secretary of Transportation and the 
        Secretary of Homeland Security shall update the assessments 
        referred to in this subsection at least once every 3 years and 
        may conduct additional assessments of public transportation 
        agencies considered to be at greatest risk of a terrorist 
        attack.
  (b) Use of Assessment Information.--The Secretary of Transportation 
shall use the information collected under subsection (a)--
          (1) to establish the process for developing security 
        guidelines for public transportation security;
          (2) to design a security improvement strategy that minimizes 
        terrorist threats to public transportation systems; and
          (3) to design a security improvement strategy that maximizes 
        the efforts of public transportation systems to mitigate damage 
        from terrorist attacks.

SEC. 104. SECURITY ASSISTANCE GRANTS.

  (a) Capital Security Assistance Program.--
          (1) In general.--The Secretary of Transportation shall award 
        grants directly to public transportation agencies for allowable 
        capital security improvements.
          (2) Priorities.--A public transportation agency receiving a 
        grant under this subsection shall use the grant to fund 
        projects based on the priorities established under section 
        103(a)(4).
          (3) Allowable use of funds.--Grants awarded under paragraph 
        (1) may be used for--
                  (A) tunnel protection systems;
                  (B) perimeter protection systems;
                  (C) redundant critical operations control systems;
                  (D) chemical, biological, radiological, or explosive 
                detection systems;
                  (E) surveillance equipment;
                  (F) inspection technology;
                  (G) communications equipment;
                  (H) emergency response equipment;
                  (I) fire suppression and decontamination equipment;
                  (J) global positioning or automated vehicle locator 
                type system equipment;
                  (K) evacuation improvements; and
                  (L) other capital security improvements.
          (4) Government's share.--A grant for a capital security 
        improvement project under this subsection shall be for 80 
        percent of the net project cost of the project. The recipient 
        may provide additional local matching amounts.
  (b) Operational Security Assistance Program.--
          (1) In general.--The Secretary of Transportation shall award 
        grants directly to public transportation agencies for allowable 
        operational security improvements.
          (2) Priorities.--A public transportation agency receiving a 
        grant under this subsection shall use the grant to fund 
        projects based on the priorities established under section 
        103(a)(4).
          (3) Allowable use of funds.--Grants awarded under paragraph 
        (1) may be used for--
                  (A) security training for transit employees, 
                including bus and rail operators, mechanics, customer 
                service employees, maintenance employees, transit 
                police, and security personnel;
                  (B) live or simulated drills;
                  (C) public awareness campaigns for enhanced public 
                transportation security;
                  (D) canine patrols for chemical, biological, or 
                explosives detection;
                  (E) overtime reimbursement for enhanced security 
                personnel during significant national and international 
                public events, consistent with the priorities 
                established under section 103(a)(4); and
                  (F) other appropriate security improvements 
                identified under section 103(a)(4), including hiring 
                additional security personnel determined necessary 
                under section 103(a)(4), but excluding routine, ongoing 
                personnel costs.
          (4) Government's share.--A grant for an operating security 
        improvement project under this subsection may not exceed 50 
        percent of the net project cost of the project.
  (c) Transit Agency Responsibilities.--Each public transportation 
agency that receives a grant under this section shall--
          (1) identify a security coordinator to coordinate security 
        improvements;
          (2) develop a comprehensive plan that demonstrates the 
        agency's capacity for operating and maintaining the equipment 
        purchased under this section; and
          (3) report annually to the Department of Transportation on 
        the use of grant funds received under this section.
  (d) Grant Requirements.--Except as otherwise specifically provided in 
this Act, a grant provided under this section shall be subject to the 
terms and conditions applicable to grants made under section 5307 of 
title 49, United States Code, and to such other terms and conditions as 
are determined by the Secretary.

SEC. 105. INTELLIGENCE SHARING.

  (a) Intelligence Sharing.--The Secretary of Homeland Security shall 
ensure that the Department of Transportation receives appropriate and 
timely notification of all credible terrorist threats against public 
transportation assets in the United States.
  (b) Information Sharing Analysis Center.--
          (1) Establishment.--The Secretary of Transportation shall 
        fund the reasonable costs of the Information Sharing and 
        Analysis Center for Public Transportation (referred to in this 
        subsection as the ``ISAC'') established pursuant to 
        Presidential Directive 63 to protect critical infrastructure.
          (2) Public transportation agency participation.--The 
        Secretary of Transportation--
                  (A) shall require those public transportation 
                agencies that the Secretary determines to be at 
                significant risk of terrorist attack to participate in 
                the ISAC;
                  (B) shall encourage all other public transportation 
                agencies to participate in the ISAC; and
                  (C) shall not charge any public transportation agency 
                a fee for participation in the ISAC.

SEC. 106. REPORTING REQUIREMENT.

  (a) In General.--Not later than September 30, 2006, the Secretary of 
Transportation shall submit to the Committee on Transportation and 
Infrastructure of the House of Representatives and the Committee on 
Banking, Housing, and Urban Affairs of the Senate a report that 
describes the implementation of sections 103 through 105. The Secretary 
may submit the report in classified and unclassified forms.
  (b) Contents.--Based on security assessments and updates conducted 
under section 103, the report shall include--
          (1) a description of the state of public transportation 
        security in the United States; and
          (2) a description of actions taken by Federal, State, 
        regional, and local governments and private stakeholders to 
        address threats to, and security weaknesses in, the public 
        transportation system and its assets.

SEC. 107. PUBLIC TRANSPORTATION EMPLOYEE SECURITY TRAINING PROGRAM.

  (a) In General.--Not later than 90 days after the date of enactment 
of this Act, the Secretary of Transportation, in consultation with the 
Secretary of Homeland Security, appropriate law enforcement, security, 
and terrorism experts, representatives of public transportation 
agencies, and representatives of public transportation employees, shall 
develop and issue guidelines for a public transportation employee 
security training program to prepare public transportation employees 
for potential threat conditions.
  (b) Public Transportation Agency Programs.--
          (1) In general.--Not later than 90 days after the date on 
        which Secretary issues guidance under subsection (a) in final 
        form, each public transportation agency that has received or is 
        undergoing a security assessment under section 103 shall 
        develop an employee training program in accordance with such 
        guidance.
          (2) Review and approval.--Each public transportation agency 
        referred to in paragraph (1) shall submit its employee training 
        program to the Secretary for review and approval or amendment.
          (3) Implementation.--Not later than one year after the date 
        on which the Secretary approves an employee training program of 
        a public transportation agency under paragraph (2), the agency 
        shall complete employee training in accordance with such 
        program at least with respect to the employees of the agency 
        identified in the agency's security assessment under section 
        103.
  (c) Reporting.--As part of the Secretary's report to Congress under 
section 106, the Secretary shall include an analysis of the extent to 
which public transportation agencies are successfully carrying out the 
employee training programs described in this section.

SEC. 108. AUTHORIZATION OF APPROPRIATIONS.

  (a) Capital Security Assistance Program.--There is authorized to be 
appropriated to carry out section 104(a)--
          (1) $775,000,000 for fiscal year 2005;
          (2) $825,000,000 for fiscal year 2006; and
          (3) $880,000,000 for fiscal year 2007.
  (b) Operational Security Assistance Program.--There is authorized to 
be appropriated to carry out section 104(b)--
          (1) $400,000,000 for fiscal year 2005;
          (2) $300,000,000 for fiscal year 2006; and
          (3) $200,000,000 for fiscal year 2007.
  (c) Information Sharing and Analysis Center.--There is authorized to 
be appropriated to carry out section 105(b) $1,000,000 for each of 
fiscal years 2005 through 2007.
  (d) Period of Availability.--Sums appropriated pursuant to this 
section shall remain available until expended.

            TITLE II--OVER-THE-ROAD BUS SECURITY ASSISTANCE

SEC. 201. EMERGENCY OVER-THE-ROAD BUS SECURITY ASSISTANCE.

  (a) In General.--The Secretary of Transportation, acting through the 
Administrator of the Federal Motor Carrier Safety Administration, shall 
establish a program for making grants to private operators of over-the-
road buses for system-wide security improvements to their operations, 
including--
          (1) constructing and modifying terminals, garages, 
        facilities, or over-the-road buses to assure their security;
          (2) protecting or isolating the driver;
          (3) acquiring, upgrading, installing, or operating equipment, 
        software, or accessorial services for collection, storage, or 
        exchange of passenger and driver information through ticketing 
        systems or otherwise, and information links with government 
        agencies;
          (4) training employees in recognizing and responding to 
        security threats, evacuation procedures, passenger screening 
        procedures, and baggage inspection;
          (5) hiring and training security officers;
          (6) installing cameras and video surveillance equipment on 
        over-the-road buses and at terminals, garages, and over-the-
        road bus facilities;
          (7) creating a program for employee identification or 
        background investigation;
          (8) establishing an emergency communications system linked to 
        law enforcement and emergency personnel; and
          (9) implementing and operating passenger screening programs 
        at terminals and on over-the-road buses.
  (b) Reimbursement.--
          (1) In general.--A grant under this section may be used to 
        provide reimbursement to private operators of over-the-road 
        buses for extraordinary security-related costs for improvements 
        described in paragraphs (1) through (9) of subsection (a), 
        determined by the Secretary to have been incurred by such 
        operators since September 11, 2001.
          (2) Limitation.--Not more than 20 percent of the amounts 
        appropriated for a fiscal year to carry out this title may be 
        used to provide reimbursements under this subsection.
  (c) Federal Share.--The Federal share of the cost for which any grant 
is made under this section shall be 80 percent.
  (d) Due Consideration.--In making grants under this section, the 
Secretary shall give due consideration to private operators of over-
the-road buses that have taken measures to enhance bus transportation 
security from those in effect before September 11, 2001.
  (e) Grant Requirements.--A grant under this section shall be subject 
to all the terms and conditions that a grant is subject to under 
section 3038(f) of the Transportation Equity Act for the 21st Century 
(49 U.S.C. 5310 note; 112 Stat. 393).
  (f) Report on Industry Priorities.--
          (1) Study.--The Administrator of the Federal Motor Carrier 
        Safety Administration shall conduct a study of--
                  (A) the critical assets and systems of the nationwide 
                over-the-road bus industry;
                  (B) security threats to the assets and systems;
                  (C) security weaknesses in the assets and systems; 
                and
                  (D) redundant and backup systems required to ensure 
                the continued operation of critical elements of the 
                assets and systems in the event of an attack or other 
                incident.
          (2) Consultation.--In conducting the study, the Administrator 
        shall consult with private over-the-road bus operators and 
        their trade association representatives.
          (3) Report.--Not later than 180 days after the date of 
        enactment of this Act, the Administrator shall submit to the 
        Secretary of Transportation and the Secretary of Homeland 
        Security a report, based on the results of the study, detailing 
        the critical assets, threats, and weaknesses in the over-the-
        road bus industry. The Administrator shall update the report on 
        an annual basis.
  (g) Allocation of Grants.--The Secretary of Transportation, in 
consultation with the Secretary of Homeland Security, shall establish 
priorities for the allocation of grants under this section based on the 
report required by subsection (f)(3) and shall make grants under this 
section in accordance with those priorities.

SEC. 202. PLAN REQUIREMENT.

  (a) In General.--The Secretary of Transportation may not make a grant 
under section 201 to a private operator of over-the-road buses until 
the operator has first submitted to the Secretary an application 
containing--
          (1) a plan for making security improvements described in 
        section 201 and the Secretary has approved the plan; and
          (2) such additional information as the Secretary may require 
        to ensure accountability for the obligation and expenditure of 
        amounts made available to the operator under the grant.
  (b) Coordination.--To the extent that an application for a grant 
submitted under this section proposes security improvements within a 
specific terminal owned and operated by an entity other than the 
applicant, the applicant shall demonstrate to the satisfaction of the 
Secretary that the applicant has coordinated the security improvements 
for the terminal with that entity.
  (c) Consultation With DHS.--In approving plans under subsection 
(a)(1), the Secretary may consult with the Secretary of Homeland 
Security.

SEC. 203. OVER-THE-ROAD BUS DEFINED.

  In this title, the term ``over-the-road bus'' means a bus 
characterized by an elevated passenger deck located over a baggage 
compartment.

SEC. 204. BUS SECURITY ASSESSMENT.

  (a) In General.--Not later than 180 days after the date of enactment 
of this Act, the Secretary of Transportation shall transmit to the 
Committee on Transportation and Infrastructure of the House of 
Representatives and the Committee on Commerce, Science, and 
Transportation of the Senate a preliminary report in accordance with 
the requirements of this section.
  (b) Contents of Preliminary Report.--The preliminary report shall 
include--
          (1) an assessment of the over-the-road bus security grant 
        program;
          (2) an assessment of actions already taken to address 
        identified security issues by both public and private entities 
        and recommendations on whether additional safety and security 
        enforcement actions are needed;
          (3) an assessment of whether additional legislation is needed 
        to provide for the security of Americans traveling on over-the-
        road buses;
          (4) an assessment of the economic impact that security 
        upgrades of buses and bus facilities may have on the over-the-
        road bus transportation industry and its employees;
          (5) an assessment of ongoing research and the need for 
        additional research on over-the-road bus security, including 
        engine shut-off mechanisms, chemical and biological weapon 
        detection technology, and the feasibility of 
        compartmentalization of the driver; and
          (6) an assessment of industry best practices to enhance 
        security.
  (c) Consultation With Industry, Labor, and Other Groups.--In carrying 
out this section, the Secretary shall consult with over-the-road bus 
management and labor representatives, public safety and law enforcement 
officials, and the National Academy of Sciences.

SEC. 205. FUNDING.

  There is authorized to be appropriated to the Secretary of 
Transportation to carry out this title $50,000,000 for each of fiscal 
years 2005 through 2007. Such sums shall remain available until 
expended.

                       PURPOSE OF THE LEGISLATION

    H.R. 5082 authorizes the Secretary of Transportation to 
award grants to public transportation agencies and over-the-
road bus operators to improve security, in a manner consistent 
with the recommendations of the Final Report of the National 
Commission on Terrorist Attacks upon the United States (the 9/
11 Commission Report).

                BACKGROUND AND NEED FOR THE LEGISLATION

    Throughout the world, public transportation systems have 
been primary targets of terrorist attacks, causing thousands of 
deaths and injuries. On March 11, 2004, four separate bombs 
detonated on three commuter trains traveling toward Madrid, 
Spain, killing 198 people. Transit systems have been popular 
targets of terrorist attacks worldwide. From 1991 to 2001, 42 
percent of all terrorist incidents were carried out on rail 
systems or buses. Transit systems have open access with 
frequent stops and transfer points and are thus difficult to 
protect. They also serve high concentrations of people in 
relatively crowded quarters, an environment with a high 
probability of death or injury.
    In the U.S., there are 6,000 public transportation agencies 
that provide 9.4 billion transit trips annually. Every day, 
more than 14 million people use public transportation to get to 
and from work, as well as using transit to get to school, go 
shopping, visit medical facilities, or go out for an evening's 
entertainment. By comparison, the U.S. aviation industry serves 
1.8 million daily passengers; Amtrak serves only about 63,000 
passengers each day. Despite the fact that so many people use 
transit, there has been very little federal investment in 
improving the security of America's public transportation 
facilities and systems. Over two years (fiscal years 2002 and 
2003), there was $11 billion spent on aviation security, an 
average of $9.16 was spent per passenger. In fiscal years 2003 
and 2004, only $115 million was provided by the Department of 
Homeland Security for transit security grants, an average of 
\6/10\ of one cent per passenger.
    Publicly owned and operated transit systems represent a 
sizeable investment of highway trust funds and federal, state, 
and local general revenues. Since 1992, the Federal Transit 
Administration has provided $68.7 billion in federal funds for 
construction and improvements to transit systems throughout the 
country. This critical infrastructure and the safety of the 
traveling public must be protected from deliberate harm to the 
greatest extent possible, whether the threat is from 
international terrorists or domestic sources.
    The purpose of the bill is to authorize grants to transit 
agencies and bus operators to improve security in a manner 
consistent with the recommendations of the Final Report of the 
National Commission on Terrorist Attacks upon the United States 
(the 9/11 Commission Report). Although the 9/11 Commission 
Report does not specifically address transit security issues, 
the chapter regarding how to protect against and prepare for 
terrorist attacks makes four recommendations that are directly 
applicable to improving security of our nation's public 
transportation systems:
          1. Identify and evaluate transportation assets that 
        need to be protected, and set risk-based priorities for 
        defending them.
          2. Develop a plan, budget, and funding to implement 
        this effort.
          3. Assign roles and missions to relevant Federal, 
        State, regional, local and private stakeholders.
          4. Provide transportation security assistance based 
        strictly on assessments of risk and vulnerability.
    The over-the-road bus industry transports 773 million 
passengers annually. These intercity buses are as vulnerable to 
terrorist attack as public transportation systems, for many of 
the same reasons. There has been a very small amount of federal 
funding appropriated for bus security grants, $35 million ($15 
million in fiscal year 2002, $10 million in fiscal year 2003, 
and $10 million in fiscal year 2004). However, Congress has not 
successfully authorized the grants program to date, and a risk-
based legislative framework is needed to ensure that funds 
provided for intercity bus security needs are allocated to 
projects that will best improve security.
    For fiscal years 2005 through 2007, H.R. 5082 as reported 
authorizes $2,480,000,000 for capital security grants and 
$900,000,000 for operating security grants to public 
transportation providers. These funds are authorized out of 
non-defense discretionary general funds and are subject to 
appropriations. The bill also authorizes over the same three-
year period $150,000,000 for grants to over-the-road bus 
operators for security improvements to their operations. These 
grants are to be allocated based on risk and vulnerability, 
consistent with the recommendations of the 9/11 Commission 
Report.

                       SUMMARY OF THE LEGISLATION

Section 1. Short title

    This section states the bill title as the ``Public 
Transportation Terrorism Prevention and Response Act of 2004.''

                TITLE I--PUBLIC TRANSPORTATION SECURITY


Section 101. Findings; purpose; public transportation defined

    This section lists the findings of Congress regarding: the 
need for improvements to public transportation security; the 
inequity of federal financial assistance for aviation security 
improvements versus assistance for public transportation 
security; the need to make security funding supplemental to and 
separate from funding for capacity-based infrastructure 
improvements; and the activities that the Government should 
undertake in response to the findings of the 9/11 Commission 
Report. This section states that the purpose of the Act is to 
authorize grants to public transportation agencies and over-
the-road bus operators to improve security in a manner 
consistent with the recommendations of the 9/11 Commission 
Report. The section also defines public transportation as 
havingthe same meaning such term is given in section 5302(a) of 
title 49, United States Code, as transportation by a conveyance that 
provides regular and continuing general or special transportation to 
the public, but does not include school bus, charter, or sightseeing 
transportation.

Section 102. Memorandum of understanding

    This section directs that within 45 days of enactment of 
this Act, the Secretary of Transportation shall enter into a 
memorandum of understanding (MOU) with the Secretary of 
Homeland Security to define and clarify the public 
transportation security roles and responsibilities of the 
respective departments. The Department of Homeland Security 
(DHS) maintains authority over the Transportation Security 
Administration (TSA), which was vested in section 114(d) of the 
Aviation and Transportation Security Act (P.L. 107-71) with 
lead responsibility ``for security in all modes of 
transportation, including * * * security responsibilities over 
other modes of transportation that are exercised by the 
Department of Transportation.'' However, the roles and 
responsibilities of TSA, other offices within DHS, and the 
Department of Transportation (DOT) regarding public 
transportation security implementation and oversight have not 
been clearly defined by the administration. As a result, there 
is a strong sense among the transit community and other 
stakeholder groups that there is not consistent, risk-based 
management of public transportation security issues, 
particularly in the allocation of security improvement grants 
funding.
    It is the Committee's position that transportation grants 
programs must be authorized to the agency most capable of 
efficient and effective grants management. Thus, this grants 
authorization bill designates DOT as the lead department 
(acting through the Federal Transit Administration for public 
transportation grants and through the Federal Motor Carrier 
Safety Administration for over-the-road bus grants). However, 
the Committee recognizes that DHS has jurisdiction for security 
in all modes of transportation. So it is necessary that the 
specific roles and responsibilities of DOT and DHS be formally 
established in a legal document, such as an MOU. This will be 
the basis for a more effective and functional relationship 
between the two departments in a manner that effectively 
improves public transportation and over-the-road bus security.

Section 103. Security assessments

    In the months immediately following September 11, 2001, the 
Federal Transit Administration (FTA) deployed an aggressive, 
nationwide security program. The agency performed vulnerability 
assessments of the 37 largest transit systems. This section 
directs FTA to submit the original assessments, which are now 
more than two years old, to DHS. Using this base of the 37 
largest transit systems, DHS and DOT are directed to jointly 
review and modify, as appropriate, these security assessments. 
Under section 103(a)(5), the two departments are authorized to 
conduct additional assessments of other public transportation 
agencies beyond the original group of systems, if they are 
considered to be at a high risk of terrorist attack. The 
assessments are to include identifications of: the critical 
assets of the system; threats to those assets; security 
weaknesses in the system; redundant and backup systems required 
to ensure continued operations; and the extent to which transit 
employees have received adequate security training. The 
Secretary of Transportation is directed to establish security 
improvement priorities for each agency receiving an assessment, 
based on the agency's specific security needs. On a national 
basis, the assessment information shall be used to establish a 
process for developing industry-wide security guidelines; and 
design security improvement strategies that minimize the threat 
of attacks and that mitigate damage from attacks. These 
assessments are to be updated at least once every three years.
    The allocation of security grant funds is managed by the 
Secretary of Transportation. Only agencies that have received 
an assessment are eligible for grants, although allocations of 
funds may be adjusted if an urgent threat or other significant 
factors deem such adjustment necessary.

Section 104. Security assistance grants

    This section authorizes two kinds of security assistance 
grants for public transportation agencies: capital and 
operating. Capital security grants require a 20 percent local 
or state match. They are available for a number of activities, 
including tunnel and perimeter protection; redundant and backup 
control systems; detection systems (for chemical, biological, 
radiological, or explosive weapons); surveillance equipment; 
inspection technologies (including verified visual inspection 
technologies using handheld readers and discs); communications 
equipment; emergency response equipment; fire suppression and 
decontamination equipment; vehicle locator equipment; 
evacuation improvements; and other capital security 
improvements. Operational security grants require a 50 percent 
local or state match. They are available for security training 
of transit employees; live or simulated drills; public 
awareness campaigns; canine patrols; overtime reimbursement for 
security personnel during significant national and 
international events; and other appropriate security 
improvements identified in the public transit agency's security 
assessment (which may include hiring additional security 
personnel determined necessary by such assessment), excluding 
routine and ongoing personnel costs. Grants shall be made 
directly to transit agencies and are subject to the terms and 
conditions applicable to grants under the Urbanized Area 
Formula Grants program (section 5307 of title 49, United States 
Code). Transit agencies are required to have a security 
coordinator and a comprehensive plan for operating and 
maintaining equipment purchased under this section. Agencies 
that receive security grants must also report to DOT annually 
on the use of grant funds received under this section.

Section 105. Intelligence sharing

    This section requires the Secretary of Homeland Security to 
ensure that DOT receives appropriate and timely notification of 
all credible terrorist threats against public transportation 
assets in the United States. Pursuant to Presidential Directive 
63, ``Protecting America's Critical Infrastructures'' (May 22, 
1998), intelligence sharing and analysis centers have been 
established in different sectors of U.S. industry, such as 
telecommunications, banking and finance, energy, essential 
government services, and transportation. These centers manage 
intelligence information flow regarding potential terrorist 
threats and disseminate that information to the appropriate 
stakeholders. Currently, FTA funds the intelligence sharing and 
analysis center (ISAC) for transit, which is managed under 
contract by the American Public Transportation Association 
(APTA). This section directs the Secretary of Transportation to 
require transit agencies determined to be at significant risk 
of attack to participate in the ISAC and to encourage all other 
transit agencies to participate as well. No fee may be charged 
to a public transit agency for participation in the ISAC.

Section 106. Reporting requirement

    In this section, the Secretary of Transportation is 
directed to submit a report by September 30, 2006 on the 
implementation of sections 103 through 105. Because some of the 
information regarding public transportation agency security 
assessments may be sensitive, the Secretary is authorized to 
submit the report in both classified and unclassified forms. 
The report must include a description of the state of public 
transportation security in the United States and a description 
of actions that have been and are being taken by Federal, 
State, regional and local governments to address security 
threats and public transportation system security weaknesses.

Section 107. Public transportation employee security training program

    This section establishes a public transportation employee 
security training program, to be developed by DOT in 
consultation with DHS, appropriate law enforcement, security, 
and terrorism experts, and representatives of public 
transportation agencies and their employees. This new training 
program must be released with appropriate guidance within 90 
days of enactment of this Act. All public transit agencies that 
have received or are undergoing security assessments under 
section 103 must develop individual employee training programs 
in accordance with the DOT guidance within 90 days of such 
guidance being issued. The Secretary of Transportation must 
review and approve (or amend) the individual agencies' training 
programs. Within one year of the date of the Secretary's 
approval, each agency must complete training of the employees 
who were employed when the security assessment was performed, 
in accordance with the employee training program.

Section 108. Authorization of appropriations

    This section lists the amounts authorized for the capital 
security assistance program, operational security assistance 
program, and the transit ISAC authorized in section 105 for 
fiscal years 2005, 2006 and 2007. Funds that are appropriated 
pursuant to this authorization shall remain available until 
expended.

            TITLE II--OVER-THE-ROAD BUS SECURITY ASSISTANCE


Section 201. Emergency over-the-road bus security assistance

    This section directs the Secretary of Transportation, 
acting through the Administrator of the Federal Motor Carrier 
Safety Administration (FMCSA), to establish a program for 
making grants to private operators of over-the-road buses for 
system-wide security improvements to their operations. Grants 
are eligible for: construction and modification of terminals, 
garages, and other facilities to improve security; protecting 
or isolating the bus driver; buying equipment that will help 
collect, store or exchange passenger manifests and provide 
informational links with government agencies; training 
employees; hiring and training security officers; installing 
surveillance equipment on buses and in bus facilities; creating 
programs for employee identification or background 
investigations; establishing emergency communications links to 
local law enforcement and emergency responders; and 
implementing passenger screening programs. Up to 20 percent of 
a grant amount may be used for reimbursement to private 
operators for extraordinary security improvement costs that 
have already been incurred by the operators since September 11, 
2001. The Federal share of these grants is 80 percent; 20 
percent of the grant amount must be paid by the bus operator or 
a state or local funding source. Grants are subject to the 
terms and conditions of the Rural Transportation Accessibility 
Incentive Program under section 3038 of the Transportation 
Equity Act for the 21st Century (TEA 21).
    The FMCSA Administrator is directed to conduct a study of 
industry security priorities, including an assessment of 
critical assets and systems of the nationwide over-the-road bus 
industry; security threats to those assets and systems; 
security weaknesses in those assets and systems; and redundant 
and backup systems required to ensure continued operations. The 
report on this study shall be submitted to the Secretaries of 
Transportation and of Homeland Security, and shall update the 
report on an annual basis. The allocation of grants by DOT, in 
consultation with DHS, shall be based on priorities identified 
in this report.

Section 202. Plan requirement

    Over-the-road bus operators are required to submit to the 
Secretary of Transportation a plan for making security 
improvements authorized in section 201, and such plan must be 
approved by the Secretary before making a security improvement 
grant to an operator. When the Secretary approves security 
improvement plans for an over-the-road bus operator, he may 
consult with the Secretary of Homeland Security. In cases where 
terminals or facilities that are proposed for security 
improvements are owned and operated by a different entity, the 
applicant must demonstrate that such improvements have been 
coordinated with the entity that owns the facility.

Section 203. Over-the-road bus defined

    This section defines an over-the-road bus as a bus 
characterized by an elevated passenger deck located over a 
baggage compartment. Although such buses are often operated by 
public transportation entities, especially for commuter bus 
services, the Committee does not expect such public operators 
to be eligible for grants authorized under this title. Such 
public transportation agencies are eligible for grants under 
title I of this bill, if they are assessed as being at risk for 
terrorist attack.

Section 204. Bus security assessment

    This section requires a preliminary report by the Secretary 
of Transportation to Congress not later than 180 days after 
enactment of this Act on the status of the over-the-road 
security grant program, which shall include an assessment of 
actions that have been taken to address security issues and 
whether additional actions are still needed, and assessments 
of: whether additional legislation is needed, what the economic 
impact of security improvements to the over-the-road bus fleet 
have on that industry, what research has been undertaken on 
over-the-road bus security and whether more is needed, and what 
are the best practices of the industry to enhance security.

Section 205. Funding

    This section authorizes $50 million a year for fiscal years 
2005, 2006 and 2007 to be appropriated to carry out this title. 
Such sums shall remain available until expended.

            LEGISLATIVE HISTORY AND COMMITTEE CONSIDERATION

    The Subcommittee on Highways, Transit and Pipelines held a 
hearing on public transportation security on June 22, 2004. The 
hearing involved witnesses from the Department of 
Transportation and the Department of Homeland Security, as well 
as other industry stakeholders (including the American Public 
Transportation Association and the American Bus Association).
    The main text of title II of this bill has been previously 
introduced and reported by the Committee on Transportation and 
Infrastructure in the 108th Congress. H.R. 875 was reported by 
the Committee in March 2003, but was not scheduled for floor 
consideration. Because time has passed and the authorizations 
have become outdated, the bill has been updated to authorize 
funds for fiscal years 2005 through 2007, and makes the grants 
more risk-based to reflect the recommendations of the 9/11 
Commission Report.
    H.R. 5082 was introduced by Messrs. Young, Oberstar, Petri, 
Lipinski, Shuster, and Menendez on September 15, 2004. The bill 
was referred to the Committee on Transportation and 
Infrastructure. The Subcommittee on Highways, Transit and 
Pipelines reported H.R. 5082 to the full committee without 
amendment by voice vote on September 28, 2004. The Committee on 
Transportation and Infrastructure met in open markup session on 
September 29, 2004 and approved H.R. 5082 as amended by an 
amendment in the nature of a substitute offered by Mr. Petri. 
The bill was approved by voice vote.

                             ROLLCALL VOTES

    Clause 3(b) of rule XIII of the House of Representatives 
requires each committee report to include the total number of 
votes cast for and against on each roll call vote on a motion 
to report and on any amendment offered to the measure or 
matter, and the names of those members voting for and against. 
There were no roll call votes in subcommittee or full committee 
consideration of H.R. 5082.

                      COMMITTEE OVERSIGHT FINDINGS

    With respect to the requirements of clause 3(c)(1) of rule 
XIII of the Rules of the House of Representatives, the 
Committee's oversight findings and recommendations are 
reflected in this report.

                          COST OF LEGISLATION

    Clause 3(c)(2) of rule XIII of the Rules of the House of 
Representatives does not apply where a cost estimate and 
comparison prepared by the Director of the Congressional Budget 
Office under section 402 of the Congressional Budget Act of 
1974 has been timely submitted prior to the filing of the 
report and is included in the report. Such a cost estimate is 
included in this report.

                    COMPLIANCE WITH HOUSE RULE XIII

    1. With respect to the requirement of clause 3(c)(2) of 
rule XIII of the Rules of the House of Representatives, and 
308(a) of the Congressional Budget Act of 1974, the Committee 
references the report of the Congressional Budget Office 
included below.
    2. With respect to the requirement of clause 3(c)(4) of 
rule XIII of the Rules of the House of Representatives, the 
performance goals and objectives of this legislation are for 
the Secretary of Transportation to award grants to public 
transportation agencies and over-the-road bus operators to 
improve security, in a manner consistent with the 
recommendations of the Final Report of the National Commission 
on Terrorist Attacks upon the United States (the 9/11 
Commission Report).
    3. With respect to the requirement of clause 3(c)(3) of 
rule XIII of the Rules of the House of Representatives and 
section 402 of the Congressional Budget Act of 1974, the 
Committee has received the following cost estimate for H.R. 
5082 from the Director of the Congressional Budget Office.

                                     U.S. Congress,
                               Congressional Budget Office,
                                   Washington, DC, October 5, 2004.
Hon. Don Young,
Chairman, Committee on Transportation and Infrastructure,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 5082, the Public 
Transportation Terrorism Prevention and Response Act of 2004.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Rachel 
Milberg, who can be reached at 226-2860.
            Sincerely,
                                         Elizabeth Robinson
                               (For Douglas Holtz-Eakin, Director).
    Enclosure.

H.R. 5082--Public Transportation Terrorism Prevention and Response Act 
        of 2004

    Summary: H.R. 5082 would authorize the Secretary of 
Transportation to provide grants to transit agencies to improve 
the security of transit systems and grants to operators of 
over-the-road buses to improve the security of buses and bus 
terminals. (Over-the-road buses are characterized by an 
elevated passenger deck above a baggage compartment.) The bill 
also would authorize the Secretary to cover the costs of the 
Information Sharing and Analysis Center (ISAC) for Public 
Transportation. For these activities, H.R. 5082 would authorize 
the appropriation of $3.5 billion over the 2005-2007 period. 
Assuming appropriation of the authorized amounts, CBO estimates 
that implementing H.R. 5082 would cost almost $3 billion over 
the 2005-2009 period and about $500 million after 2009.
    In addition to authorizing appropriations for grants and 
for the ISAC, the bill would require the Department of 
Transportation to assess the security of transit systems and 
over-the-road bus facilities, report to the Congress on the use 
of the grants for transit security, and issue guidelines for 
training transit employees to respond to threat conditions. 
Assuming appropriation of the necessary amounts, CBO estimates 
that implementing these provisions would cost about $1 million 
each year over the 2005-2007 period.
    CBO estimates that enacting the legislation would not 
affect direct spending or revenues.
    H.R. 5082 contains intergovernmental mandates as defined in 
the Unfunded Mandates Reform Act (UMRA), because it would 
require certain public transportation agencies to participate 
in an information clearinghouse and to conduct security 
training of employees. COB cannot estimate the aggregate costs 
of these requirements, but based on government and industry 
sources, we expect that they would exceed the threshold 
established in that act ($60 million in 2004, adjusted annually 
for inflation) in at least one of the first five years after 
enactment. The bill would authorized appropriations of funds to 
cover these costs. The legislation contains no private-sector 
mandates.
    Estimated cost to the Federal Government: The estimated 
budgetary impact of H.R. 5082 is shown in the following table. 
The costs of this legislation fall within budget function 400 
(transportation).

----------------------------------------------------------------------------------------------------------------
                                                                     By fiscal year, in million of dollars--
                                                               -------------------------------------------------
                                                                  2005      2006      2007      2008      2009
----------------------------------------------------------------------------------------------------------------
                                  CHANGES IN SPENDING SUBJECT TO APPROPRIATION

Estimated Authorization Level.................................     1,227     1,177     1,132         0         0
Estimated Outlays.............................................       272       633       877       760       443
----------------------------------------------------------------------------------------------------------------

    Basis of estimate: H.R. 5082 would authorize the Secretary 
of Transportation to provide grants to transit agencies and 
operators of over-the-road buses for security-related 
activities. The bill also would authorize the Secretary to 
cover the costs of the ISAC for Public Transportation. Finally, 
the bill also would require the government to conduct security 
assessments, report on grant activities, and issue guidance for 
a training program.
    For this estimate, CBO assumes H.R. 5082 will be enacted in 
early fiscal year 2005 and that the authorized amounts will be 
appropriated for each year. Estimates of spending are based on 
information from the Department of Transportation and 
historical spending patterns of similar programs.

Security grants

    H.R. 5082 would authorize the appropriation of about $2.5 
billion over the 2005-2007 period for grants to transit 
agencies for capital investments to improve the security of 
transit systems. The bill would authorize the appropriation of 
another $900 million over the same period for grants to transit 
agencies for operational improvements to security such as 
training, emergency drills, or public awareness campaigns. 
Finally, the bill would authorize the appropriation of $150 
million over the same period for grants to operators of over-
the-road buses for improvements to the security of their buses 
and bus terminals. Assuming appropriation of the authorized 
amounts, CBO estimates these provisions would cost almost $3 
billion over the 2005-2009 period and about $500 million after 
2009.

ISAC for public transportation

    The ISAC for Public Transportation distributes information 
to public transit agencies on security threats and helps 
transit agencies share security-related information. H.R. 582 
would authorize the appropriation of $1 million for each year 
over the 2005-2007 period for the Secretary of Transportation 
to cover the costs of the ISAC. Assuming appropriation of the 
authorized amounts, CBO estimates that implementing this 
provision would cost $3 million over the 2005-2007 period.

Assessments, reports, and guidance

    H.R. 5082 would require the Department of Transportation to 
assess the security of transit systems and over-the-road bus 
facilities. The bill also would require the Department to 
report to the Congress on the use of the grants for transit 
security. Finally, the bill would require the department to 
issue guidelines for training transit employees to respond to 
threat conditions. Assuming appropriation of the necessary 
amounts, CBO estimates that implementing these provisions would 
cost about $1 million each year over the 2005-2007 period.
    Estimated impact on state, local, and tribal governments: 
Section 105 would require public transportation agencies that 
the Secretary of Homeland Security determines to be at 
significant risk of terrorist attack to participate in the 
Information Sharing and Analysis Center for Public 
Transportation. Section 107 would require public transportation 
agencies that are subject to security assessments to develop 
and train employees on security procedures. Those requirements 
are intergovernmental mandates as defined in UMRA. CBO cannot 
estimate the costs of meeting these requirements primarily 
because the security assessments have not been completed and it 
is not clear how many agencies would have to conduct employee 
training. Based on government and industry sources, however, we 
expect that those costs likely would exceed the threshold as 
defined in UMRA ($60 million in 2004, adjusted annually for 
inflation) in at least one of the first five years after 
enactment. The bill would authorize appropriations of funds to 
cover these costs.
    Public transportation agencies also would benefit from 
grants to upgrade transit security; any requirements would be 
conditions of receiving federal assistance.
    Estimated impact on the private sector: H.R. 5082 contains 
no private-sector mandates as defined in UMRA.
    Previous CBO estimate: On May 27, 2004, CBO transmitted a 
cost estimate for the Public Transportation Terrorism 
Prevention Act of 2004 as ordered reported by the Senate 
Committee on Banking, Housing, and Urban Affairs on May 6, 
2004. The Senate version of this bill would authorize the 
appropriation of $5.2 billion for grants to transit agencies to 
improve the security of their systems, but it would not 
authorize grants to operators of over-the-road buses. The cost 
estimates reflect these differences.
    On May 22, 2003, CBO transmitted a cost estimate for S. 
929, the Max Cleland Over-the-Road Bus Security and Safety Act 
of 2003, as ordered reported by the Senate Committee on 
Commerce, Science, and Transportation on May 1, 2003. S. 929 
would authorize the appropriation of $124 million for grants to 
operators of over-the-road buses to improve the security of 
their facilities, but it would not authorize grants to transit 
agencies. The cost estimates reflect these differences.
    On May 10, 2003, CBO transmitted a cost estimate for H.R. 
875, the Over-the-Road Bus Security and Safety Act of 2003, as 
ordered reported by the House Committee on Transportation and 
Infrastructure on Febuary 26, 2003. H.R. 875 would authorize 
the appropriation of $99 million for grants to operators of 
over-the-road buses to improve the security of their 
facilities, but it would not authorize grants to transit 
agencies. The cost estimates reflect these differences.
    Estimate prepared by: Federal Costs: Rachel Milberg; Impact 
on State, Local, and Tribal Governments: Greg Waring; and 
Impact on the Private Sector: Jean Talarico.
    Estimate approved by: Peter H. Fontaine, Deputy Assistant 
Director for Budget Analysis.

                   CONSTITUTIONAL AUTHORITY STATEMENT

    Pursuant to clause (3)(d)(1) of rule XIII of the Rules of 
the House of Representatives, committee reports on a bill or 
joint resolution of a public character shall include a 
statement citing the specific powers granted to the Congress in 
the Constitution to enact the measure. The Committee on 
Transportation and Infrastructure finds that Congress has the 
authority to enact this measure pursuant to its powers granted 
under article I, section 8 of the Constitution.

                       FEDERAL MANDATES STATEMENT

    The Committee adopts as its own the estimate of federal 
mandates prepared by the Director of the Congressional Budget 
Office pursuant to section 423 of the Unfunded Mandates Reform 
Act. (Public Law 104-4).

                        PREEMPTION CLARIFICATION

    Section 423 of the Congressional Budget Act of 1974 
requires the report of any Committee on a bill or joint 
resolution to include a statement on the extent to which the 
bill or joint resolution is intended to preempt state, local, 
or tribal law. The Committee states that H.R. 5082 does not 
preempt any state, local, or tribal law.

                      ADVISORY COMMITTEE STATEMENT

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act are created by this 
legislation.

                APPLICABILITY TO THE LEGISLATIVE BRANCH

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act. (Public Law 
104-1).

         CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

    H.R. 5082 makes no changes in existing law.

                                  
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