[Senate Report 110-29]
[From the U.S. Government Publishing Office]




                                                        Calendar No. 26
110th Congress                                                   Report
                                 SENATE
 1st Session                                                     110-29

======================================================================



          SURFACE TRANSPORTATION AND RAIL SECURITY ACT OF 2007

                               __________

                              R E P O R T

                                 of the

           COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION

                                   on

                                 S. 184



                                     

                 March 1, 2007.--Ordered to be printed

       SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION

                       one hundred tenth congress

                             first session

                   DANIEL K. INOUYE, Hawaii, Chairman
                   TED STEVENS, Alaska, Vice-Chairman
JOHN D. ROCKEFELLER IV, West         JOHN McCAIN, Arizona
    Virginia                         TRENT LOTT, Mississippi
JOHN F. KERRY, Massachusetts         KAY BAILEY HUTCHISON, Texas
BYRON L. DORGAN, North Dakota        OLYMPIA J. SNOWE, Maine
BARBARA BOXER, California            GORDON H. SMITH, Oregon
BILL NELSON, Florida                 JOHN ENSIGN, Nevada
MARIA CANTWELL, Washington           JOHN E. SUNUNU, New Hampshire
FRANK R. LAUTENBERG, New Jersey      JIM DeMINT, South Carolina
MARK PRYOR, Arkansas                 DAVID VITTER, Louisiana
THOMAS CARPER, Delaware              JOHN THUNE, South Dakota
CLAIRE McCASKILL, Missouri
AMY KLOBUCHAR, Minnesota

          Margaret Cummisky, Staff Director and Chief Counsel
         Lila Helms, Deputy Staff Director and Policy Director
                    Margaret Spring, General Counsel
               Lisa Sutherland, Republican Staff Director
           Christine Kurth, Republican Deputy Staff Director
               Kenneth Nahigian, Republican Chief Counsel





                                                        Calendar No. 26
110th Congress                                                   Report
                                 SENATE
 1st Session                                                     110-29

======================================================================



 
          SURFACE TRANSPORTATION AND RAIL SECURITY ACT OF 2007

                                _______
                                

                 March 1, 2007.--Ordered to be printed

                                _______
                                

       Mr. Inouye, from the Committee on Commerce, Science, and 
                Transportation, submitted the following

                              R E P O R T

                         [To accompany S. 184]

    The Committee on Commerce, Science, and Transportation, to 
which was referred the bill (S. 184) to provide improved rail 
and surface transportation security, having considered the 
same, reports favorably thereon with an amendment (in the 
nature of a substitute) and recommends that the bill (as 
amended) do pass.

                          Purpose of the Bill

  S. 184 would authorize new security assessments, grant 
programs, and security measures for the Nation's major surface 
transportation modes, including passenger and freight 
railroads, trucks, intercity buses, and pipelines. The bill 
proposes new programs to address known risks and would 
authorize ongoing efforts already underway at the 
Transportation Security Administration (TSA). The bill would 
provide a statutory framework for TSA's surface transportation 
and rail security efforts, with Congress, for the first time, 
setting specific goals, tasks, and timelines for security 
improvements in these critical areas. The legislation also 
would require greater cooperation and coordination between the 
Departments of Homeland Security (DHS) and Transportation (DOT) 
to further clarify the Federal roles and responsibilities for 
surface transportation safety and security. The bill would 
authorize $1.1 billion for DHS, TSA, and DOT over fiscal years 
(FY) 2008 through FY 2011.

                          Background and Needs

  The events of September 11, 2001, brought new attention to 
terrorism risks facing America's transportation systems. As 
both potential delivery methods for terrorist weapons and as 
targets of terrorist attacks themselves, the Nation's intercity 
passenger and freight transportation systems have been the 
focus of significant Federal homeland security interest. 
Congress's principal action to address the security risks posed 
to U.S. transportation assets by international and domestic 
terrorism was the passage of the Aviation and Transportation 
Security Act (ATSA) (P.L. 107-71), which was signed into law on 
November 19, 2001. ATSA mandated a new regime for aviation 
security and created TSA, within DOT, to oversee security for 
all modes of transportation. The subsequent passage of the 
Maritime Transportation Security Act of 2002 (P.L. 107-295), 
the Homeland Security Act of 2002 (P.L. 107-296), which, among 
other things, transferred TSA from DOT to DHS, the Intelligence 
Reform and Terrorism Prevention Act of 2004 (P.L. 108-458), and 
the SAFE Port Act (P.L. 109-347) further committed Federal 
resources and regulatory effort to strengthening the security 
of our transportation system.
  While these laws have done much to address the security needs 
of the aviation and the maritime sectors, comparably little 
Federal attention or resources have been devoted toward 
addressing the security vulnerabilities of the Nation's rail, 
motor carrier, intercity bus, and pipeline industries. A 
cursory examination of Federal homeland security spending 
reflects this reality, revealing minimal investments for 
security in modes of transportation other than aviation. While 
the FY 2007 DOT Appropriations Act provided TSA with $4.7 
billion for aviation security, only $37 million was 
specifically devoted to surface transportation security. 
Additionally, DHS grant funding for surface transportation 
security in FY 2007 only totals approximately $200 million. Of 
this amount, $175 million is available for rail and public 
transit security, of which only $8.3 million is available for 
intercity passenger rail (Amtrak) and no funding is available 
for freight railroads. Out of this FY 2007 funding, DHS grant 
funding for truck and bus security efforts would total only $24 
million.
  The President's FY 2008 budget request looks to continue this 
funding trend, proposing just $41 million for TSA surface 
transportation security initiatives and no increases for 
surface transportation security grants. This limited funding 
request comes despite the President's December 5, 2006, 
issuance of Executive Order 13416, entitled ``Strengthening 
Surface Transportation Security,'' which covers the security of 
domestic mass transit, intercity passenger and freight rail, 
commercial vehicles, intercity buses, pipelines, and related 
infrastructure.
  The order set forth the following policy:
            ``The security of our Nation's surface 
        transportation systems is a national priority, vital to 
        our economy, and essential to the security of our 
        Nation. Federal, State, local, and tribal governments, 
        the private sector, and the public share responsibility 
        for the security of surface transportation. It is the 
        policy of the United States to protect the people, 
        property, and territory of the United States by 
        facilitating the implementation of a comprehensive, 
        coordinated, and efficient security program to protect 
        surface transportation systems within and adjacent to 
        the United States against terrorist attacks.''
  Accompanying this policy statement are directives to the DHS 
Secretary, in coordination with the DOT Secretary, to implement 
the general policy of the Executive Order and to undertake and 
complete a number of specific reporting, planning, and analysis 
initiatives.
  It is against this backdrop of need and priority that the 
Committee drafted S. 184. While the Committee supports the 
important policy set forth by the Executive Order, there is 
concern that the broad mission outlined by the Order cannot be 
achieved with the limited funding and the proposed static 
staffing levels of 288 full-time equivalent employees dedicated 
to surface transportation security within TSA in the 
President's FY 2008 budget request. In addition to more 
resources, the Committee believes that comprehensive risk 
assessments must be completed for surface transportation and 
that new surface transportation security initiatives must be 
developed to address the risks identified by the assessments.

                          I. RAILROAD SECURITY

  The terrorist attacks of September 11, 2001, the March 2004 
bombings of commuter trains in Madrid, Spain, the July 2004 
transit bombings in London, England, and the July 2006 rail 
bombings in Mumbai, India, heightened concerns regarding the 
susceptibility of the passenger and freight rail system in the 
United States to terrorist attack. While no similar attack has 
occurred to date against the rail system in the United States, 
the openness and vast size of the Nation's rail transportation 
network and the public reports that terrorists might be 
targeting U.S. rail assets has raised significant concerns 
regarding the various security efforts in place to prepare and 
defend the Nation's railroads against a terrorist attack.\1\
---------------------------------------------------------------------------
    \1\In 2002, and on several occasions since, the FBI has warned that 
al-Qaeda may directly target U.S. trains, key rail bridges, and 
sections of track to cause train accidents and derailments.
---------------------------------------------------------------------------
  Often as a result of incidents overseas, domestic industries 
increase security on their own. Or, when cued by intelligence, 
DHS may raise the threat level, triggering more stringent 
security requirements under homeland security directives aimed 
at a particular sector, such as the transportation network, 
sometimes also putting into action individual security plans 
voluntarily adopted by many in industry.
  The Nation's freight railroads operate more than 164,000 
miles of track over which 31 million carloads are transported 
annually and provide the primary transportation of essential 
commodities vital to the U.S. economy, including the majority 
of coal used in electricity generation, over nine million 
trailers and containers, and two million carloads of 
chemicals.\2\ There are seven Class I railroads and more than 
560 total freight railroads operating in the United States.\3\ 
This network transports an estimated 42 percent of all domestic 
intercity freight. Intermodal freight rail traffic has more 
than tripled since 1980 from 3.1 million trailers and 
containers to over 11 million in 2005 and DOT projects that 
freight traffic via rail will increase nearly 70 percent by 
2020.
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    \2\Association of American Railroads, Railroad Facts, 2006 Edition.
    \3\U.S. Class I Railroads are line haul freight railroads with 
operating revenue in excess of $277.7 million. In 2005, the U.S. Class 
I railroads were: BNSF Railway, CSX Transportation, Canadian National's 
Grand Trunk Corporation, Kansas City Southern Railway, Norfolk Southern 
Combined Railroad Subsidiaries, Canadian Pacific's Soo Line Railroad, 
and Union Pacific Railroad.
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  The magnitude of freight rail operations precludes constant 
monitoring or hardening of all track and facilities, and the 
problems of securing such a vast system are compounded by the 
variety of freight hauled--with commodity types as diverse as 
grain and chlorine regularly transported together on the same 
trains--and the variety of locations served, from the largest 
metropolitan areas of the Nation to the smallest towns. The 
vulnerability stemming from the freight rail system's openness, 
combined with the critical nature of the transportation service 
provided and the commodities transported, elevates the risks 
facing the freight rail system, particularly in urban areas in 
which there is significant demand for commodities like the 
chlorine used to ensure the potability of water.
  Similarly, the size and scope of the U.S. passenger rail 
network presents security challenges. In 2006, nearly 25 
million passengers rode intercity passenger trains and 
approximately 3.5 billion passengers rode public transit and 
commuter rail services, such as Washington D.C.'s Metrorail 
system, Chicago's Metra commuter system and Maryland's MARC 
service. Along with critical rail infrastructure and equipment, 
passenger rail facilities and stations, which often serve as 
central hubs for multiple public transportation services, may 
represent tempting targets for terrorist attacks. The RAND 
Corporation estimated that there were a total of 181 terrorist 
attacks on trains and rail-related targets worldwide between 
1998 and 2003, an average of 30 per year. RAND noted that, 
``for terrorists determined to kill in quantity and willing to 
kill indiscriminately, public transportation is an ideal 
target. It offers terrorists ease of access and escape. Crowds 
of strangers guarantee anonymity. Contained environments 
enhance the effect of explosives. Attacks on public transport 
also cause disruption and alarm--traditional terrorist goals.''
  The TSA has primary responsibility for the security of the 
Nation's railroads. Additionally, the Federal Railroad 
Administration (FRA) and the Pipeline and Hazardous Materials 
Safety Administration (PHMSA), within DOT, support TSA's 
efforts with personnel and supplemental regulation as part of 
their safety authority over railroads and hazardous materials 
transportation. The relationship among these three agencies is 
governed by annexes signed in 2006 to the DHS-DOT Memorandum of 
Understanding covering respective duties and responsibilities 
for the two Departments. In December 2006, TSA and PHMSA 
proposed their first significant rulemaking for rail security. 
The notice of proposed rulemaking (NPRM) issued by TSA proposes 
new security requirements for freight railroad carriers, 
intercity passenger rail and transit service providers, and 
rail shipment facilities that ship or receive toxic inhalation 
hazard (TIH) hazardous materials, such as chlorine. These 
proposed rules stem, in part, from the March 2006 TSA and FRA 
issuance of rail security guidelines and action items for the 
rail transportation of TIH materials.
  Given the limited funding available to TSA and other agencies 
within DHS and DOT for rail security, only a modest number of 
other rail security efforts have been completed or are 
underway. Most of these efforts to date have consisted of pilot 
programs, limited threat assessments, and other ad-hoc efforts. 
Examples of these include the High Threat Urban ARea (HTUA) 
Rail Corridor Assessments; the Washington, D.C. Rail Security 
Corridor Project; the Surface Transportation Security 
Inspection Program; Visible Intermodal Protection and Response 
(VIPR) Teams; and the TIH Rail Tank Car Vulnerability and 
Consequence Analysis Project. During Committee hearings on the 
subject of rail security, the Government Accountability Office 
(GAO) noted that these security initiatives are being 
undertaken in the absence of a comprehensive risk assessment or 
completion of required sector-specific transportation security 
plans and modal annexes. Until TSA completes this work, the 
agency is limited in its ability to prioritize the risks within 
the rail mode to help guide security investments and resource 
allocation. The GAO also noted that similar DHS and TSA efforts 
to develop a consistent approach for analyzing and comparing 
risks among and across different transportation sectors remain 
unfinished, hampering the ability to compare and prioritize 
risks across different sectors--such as the aviation and rail 
sectors--and allocate resources accordingly.
  While these efforts represent a modest step forward, much 
remains to be done to address the security of the rail sector. 
Recognizing the security challenges facing the rail sector, the 
Committee has held numerous hearings and favorably reported 
several rail security enhancement proposals since 2001. The 
rail security provisions of S.184, contained in title I, 
represent the latest iteration of this effort and incorporate 
updated versions of provisions contained within the Rail 
Security Act of 2004, the Rail Security Improvement Act of 
2005, and the Transportation Security Improvement Act of 2005. 
The rail security legislation passed the Senate by unanimous 
consent in the 108th and 109th Congress, after being favorably 
reported by the Committee.\4\
---------------------------------------------------------------------------
    \4\Versions of the rail and surface transportation security titles 
of S. 1052, The Transportation Security Improvement Act of 2005, were 
added to the Senate's version of H.R. 4954, the SAFE Port Act, through 
amendments offered by Senators McCain and Lautenberg, which passed the 
Senate on September 14, 2006. During negotiations with the Senate, the 
House of Representatives objected to the inclusion of these provisions 
in the Conference Report for H.R. 4954. S. 2273, The Rail Security Act 
of 2004, was passed by the Senate on October 1, 2004. The House of 
Representatives failed to consider the bill.
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   II. MOTOR CARRIER, PIPELINE, HAZARDOUS MATERIALS, AND BUS SECURITY

  While less conspicuous to the general public than other modes 
of transportation, the freight and passenger transportation 
provided by the trucking, pipeline and intercity bus industries 
is critical to the Nation's economy, defense and mobility. 
Collectively, these industries provide most of the goods and 
energy commodities upon which industrial economies rely for 
their daily needs. As such, these transportation systems have 
been the target of terrorist attacks world-wide and significant 
risks to these systems exist in the United States.

MOTOR CARRIER SECURITY

  Truck security, in particular, has become an important issue 
due to the size and critical role of the industry, which 
carries 85 percent of domestic cargo by value and 70 percent by 
weight. In 2002, U.S. trucking hauled 11 billion tons of 
freight and directly employed 1.3 million people in 2005.\5\ 
Trucking is also an essential part of North American 
international trade, hauling two-thirds of all U.S.- Canadian 
trade and more than four-fifths of all U.S.-Mexican trade.
---------------------------------------------------------------------------
    \5\U.S. Department of Transportation, Bureau of Transportation 
Statistics, Pocket Guide to Transportation 2006. 2006.
---------------------------------------------------------------------------
  While the September 11, 2001, terrorist attacks defined our 
recent transportation security efforts, prior to this incident, 
most serious contemporary domestic terrorist attacks in times 
involved trucks. The 1993 and 1995 truck bomb attacks at the 
World Trade Center and Oklahoma City Federal Building killed a 
total of 174 people and injured another 1,292 people. 
Similarly, trucks have been the delivery method of choice for 
several terrorist attacks against U.S. assets overseas. Despite 
this evidence that terrorists will and do use trucks and 
commercial vehicles against U.S. targets, Federal involvement 
in truck security has been limited, with the bulk of the 
responsibility for truck security efforts left to individual 
companies or groups representing sectors of the motor carrier 
industry.
  At present, there are few Federal truck security programs 
specifically mandated by statute. The most significant statute, 
enacted in 2002 out of concern for the security of the 
transportation of hazardous materials (HAZMAT) by truck, 
required DHS to implement a program to ensure that commercial 
drivers who transport HAZMAT do not pose a security threat to 
the Nation. Under regulations stemming from a provision in the 
USA PATRIOT Act (P.L. 107-56), a driver must undergo a fee-
based security background check as a prerequisite for a HAZMAT 
endorsement (HME) on a commercial driver's license. The initial 
implementation of this requirement required that all HME 
holders receive name-based background checks. Presently, all 
new HME applicants and HME renewals must undergo fingerprint-
based background checks.
  Additionally, two other general transportation security 
regulations apply to certain motor carriers and their drivers. 
Under DOT regulations, hazardous material motor carriers must 
comply with DOT security regulations requiring carriers of 
HAZMAT to develop and implement security plans. Under new rules 
issued by TSA in January 2007, all truck drivers, and other 
surface transportation employees, such as rail workers who need 
unescorted access to restricted areas of a port facility, must 
undergo a fee-based background check and receive a 
Transportation Worker Identification Credential (TWIC) by 
January 1, 2009. The TWIC concept is to provide positive 
identification to all eligible transportation-related workers, 
ensuring that only authorized personnel gain unescorted access 
to secure areas of the country's transportation network. TWIC 
was originally authorized under ATSA, then supplemented by 
language in MTSA. This program, once fully implemented in the 
maritime sector, is expected to be expanded to other modes of 
transportation, possibly including all motor carriers. As an 
interim step to the TWIC requirements for port truck drivers, 
the SAFE Port Act, which was enacted in December 2006, required 
that drivers who access secure areas of a seaport but have not 
undergone a HME background check must receive threat assessment 
screenings, including name-based checks against terrorist watch 
lists and immigration status check.
  The TSA, the Federal Motor Carrier Safety Administration 
(FMCSA), and DHS have a limited number of truck security 
initiatives currently underway. The most significant of these 
include the Highway Watch program and the Customs-Trade 
Partnership Against Terrorism (C-TPAT) program. Highway Watch 
is a joint truck security program developed by TSA and the 
trucking industry, which trains drivers to recognize and report 
potential safety and security threats and is administered by 
the American Trucking Association (ATA). Federal funding in FY 
2007 for this program is $12 million. Motor carriers that 
voluntarily participate in the C-TPAT program agree to follow a 
set of security guidelines which, in turn, reduce delays at 
border crossings relating to Customs and other security 
inspections. To gain additional expedited treatment at U.S. 
borders, motor carriers may choose to participate in the Free 
and Secure Trade (FAST) program, which utilizes electronic 
transmission of shipping data and use of transponder and 
barcode technologies for verification. Other ongoing efforts 
that impact truck security include the Highway and Motor 
Carrier (HMC) Program; TSA's HAZMAT Truck Security Pilot; 
FMCSA's Corporate Security Reviews (CSR); and the Hazmat Motor 
Carrier Security Self-Assessment Training Project.
  These security programs begin to address the security 
concerns of the 85 percent of domestic cargo that moves by 
trucks. However, these modest steps highlight the need for more 
robust action. The truck security provisions contained in title 
II of S.184 include the latest Committee-developed measures 
adopted by the Senate in the SAFE Port Act in the 109th 
Congress. S. 184 would authorize many of the ongoing TSA and 
DOT truck security efforts and provide additional goals 
focusing on the key issues related to the secure transportation 
of HAZMAT, such as routing, tracking, training, and 
enforcement.

INTERCITY BUS SECURITY

  Along with automobile, air, and rail services, intercity bus 
service has long been one of the primary modes of 
transportation within the United States. The ``over-the-road'' 
(OTR) bus industry, made up of fixed-route, intercity, 
community services, charter/tour, and airport shuttle bus 
operators, serves more than 5,000 destinations nationwide. The 
industry comprises mostly small businesses, with 65 percent of 
known carriers operating fewer than 10 buses. According to the 
American Bus Association (ABA), OTR buses transport 
approximately 660 million passengers annually, serving 
thousands of communities that have no other form of intercity 
public transportation and providing an affordable and 
convenient means of transportation for millions in urban areas.
  After September 11, 2001, Congress noted the prevalence of 
terrorist attacks against buses in other nations\6\ and began 
providing grant funding to the OTR bus industry, totaling 
nearly $50 million since FY 2002. The TSA's Intercity Bus 
Security Grant Program (IBSGP) has been used for security 
technology upgrades, facility security enhancements, drive 
security, and security training, but this grant program has 
never been authorized by the Congress, despite such an 
authorization twice passing the Senate.\7\ Congress 
appropriated $12 million in funding for the IBSGP in FY 2007. 
In addition to this grant program, other Federal bus security 
efforts include TSA's CSR program, through which TSA reviews 
the security of motor carrier and OTR bus physical assets and 
operations, and TSA's Passenger Security Division's limited bus 
and school bus reviews.
---------------------------------------------------------------------------
    \6\Since 1980, there have been several hundred terrorist attacks 
against transit and OTR buses. A chronology of terrorist attacks 
against public transit is contained with the Federal Transit 
Administration's (FTA) report entitled ``Transit Security Design 
Considerations''. http://transitsafety.volpe.dot.gov/security/
SecurityInitiatives/DesignConsiderations/CD/appa.htm.
    \7\A version of the bus security provisions of S. 1052, The 
Transportation Security Improvement Act of 2005, were added to the 
Senate's version of H.R. 4954, the SAFE Port Act, through an amendment 
offered by Senator Lautenberg, which passed the Senate on September 14, 
2006. During negotiations with the Senate, the House of Representatives 
objected to the inclusion of these provisions in the Conference Report 
for H.R. 4954. S. 929, The Max Cleland Over-the-Road Bus Security and 
Safety Act of 2003 was passed by the Senate on July 30, 2003. The House 
of Representatives failed to consider the bill.
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PIPELINE AND HAZMAT SECURITY

  The U.S. pipeline industry is a large, diverse and vital part 
of the Nation's economy. Comprised of approximately 1.5 million 
miles of lines in all 50 States, liquid and natural gas 
transmission and distribution pipelines carry the energy 
commodities that fuel our Nation. Similarly, the transportation 
of hazardous material is essential to U.S. manufacturing 
industries and public health and agriculture sectors, which 
rely on hazardous chemicals to purify water and fertilize 
crops. The majority of the over 2 billion tons of HAZMAT that 
move annually are transported by trucks, pipelines, and 
railroads, and such shipments present one of the most serious 
security concerns for the Nation. As evidenced by the 2005 rail 
accident (not terrorism-related) in Granitville, South 
Carolina, where a tank car containing chlorine derailed, 
breached, and killed 9 people, a security incident with HAZMAT 
could pose significant danger to major population centers. 
While the pipeline industry transports HAZMAT, few of these 
commodities could themselves be used as a terrorist weapon. 
Instead, the main security vulnerability comes from acts which 
could cause the loss of transportation capacity for essential 
energy commodities.
  The TSA has lead jurisdiction for the security of pipelines 
and HAZMAT transportation, but much of the regulatory 
foundation and daily work of overseeing the security of these 
sectors is done in partnership with PHMSA, which regulates the 
safety of the pipeline and HAZMAT industries, and other DOT 
modal agencies, such as FRA and FMCSA, that regulate the safety 
of individual transportation modes. A PHMSA predecessor agency 
within DOT issued the primary security regulation regarding the 
secure shipment of HAZMAT, HM 232, which requires shippers and 
carriers of certain highly HAZMAT to develop and implement 
security plans and to train workers accordingly. Other TSA and 
PHMSA pipeline and HAZMAT security initiatives include Pipeline 
Corporate Security Reviews (CSR); Cross-Border Pipeline 
Security Assessments; and Pipeline Security Forums; and 
pipeline security training.

                         Summary of Provisions

  The major provisions of the rail security title of S. 184 
would: create a new grant program within DHS and TSA to assist 
Amtrak, freight railroads, and other stakeholders in upgrading 
security across the railroad system; provide funding through 
DOT for security and safety enhancements to Amtrak railroad 
tunnels in New York, New Jersey, Washington, D.C., and 
Maryland; create a rail security research and development 
program; encourage the deployment of rail car tracking 
equipment for high-hazard materials rail shipments; require 
railroads shipping high hazard materials to create threat 
mitigation plans; issue guidance for a rail worker security 
training program; and provide for a whistleblower protection 
program for rail workers who report security concerns.
  The major provisions of the motor carriers, bus, pipeline, 
and HAZMAT security title would: require FMCSA to provide 
guidance to motor carriers and States regarding HAZMAT routing 
and to assess the addition of certain high-HAZMAT to the list 
of existing HAZMAT required to be transported by motor carriers 
with highway routing plans; require DHS to develop a program to 
encourage the equipping of trucks carrying certain HAZMAT with 
communications and tracking technology; establish a program for 
reviewing and enforcing HAZMAT security plans; require DHS to 
design a pipeline security and incident recovery plan and 
create a program for pipeline security inspections and 
enforcement; and authorize the existing grant program for 
intercity bus and bus terminal security.

                          Legislative History

  Chairman Inouye and Vice-Chairman Stevens introduced S. 184, 
``The Surface Transportation and Rail Security Act of 2007,'' 
known as the ``STARS Act'', on January 4, 2007. Senators 
Lautenberg, Snowe, Boxer, Rockefeller, Kerry, Carper, Pryor, 
Baucus, Lieberman, Biden, Clinton, Schumer, Dorgan, Durbin, 
Mikulski, Menendez, Hutchison, Specter, Klobuchar, Collins, and 
Cantwell cosponsored the bill. The Committee held a hearing on 
S. 184 and the current Federal efforts to secure the Nation's 
railroad and surface transportation system on January 18, 2007. 
The Committee received testimony from TSA, FRA, FMCSA, PHMSA, 
GAO, and the State of New Jersey.
  The Committee also held several hearings related to surface 
transportation and rail security in the 109th Congress. On 
February 15, 2005, and April 22, 2005, the Committee held 
hearings to examine the President's FY 2006 budget request for 
TSA. Those testifying before the Committee were representatives 
of TSA, GAO, and various trade and industry associations. On 
October 17, 2005, the Committee held a hearing on the state of 
passenger and freight rail security and relevant provisions of 
S.1052, the Transportation Security Improvement Act of 2005. 
Those testifying before the Committee were representatives of 
TSA, FRA, GAO, Amtrak, and various industry and labor 
representatives.
  On February 13, 2007, the Committee met in Executive Session 
during which S. 184 was considered. A substitute amendment that 
made technical and perfecting changes to the provisions of S. 
184 was offered by Chairman Inouye and Vice-Chairman Stevens. 
The substitute amendment also added several new provisions to 
S. 184 at the request of TSA, DOT, and others. These 
provisions: clarify the DHS Secretary's legal authority to 
initiate administrative enforcement proceeding, for violations 
to non-aviation transportation security regulations and 
requirements; expand the authority of private railroad police 
to allow police officers who works for one railroad to help 
other railroads in carrying out enforcement duties; require DOT 
to transmit model legislation to the States to prevent the 
bestowing of railroad police authority to ``scam railroads''; 
require DHS and DOT to develop a truck security memorandum of 
agreement (MOA) annex between the two Departments to clarify 
their respective roles for truck security; and require the DHS 
Secretary to study the need and feasibility of establishing a 
system of maritime and surface transportation-related user fees 
to provide funding for improvements to maritime and surface 
transportation security.
  No additional amendments were filed. The substitute and 
underlying bill were adopted unanimously by the Committee and 
amended to the bill; the Committee ordered the bill reported.

                            Estimated Costs

  
  In accordance with paragraph 11(a) of rule XXVI of the 
Standing Rules of the Senate and section 403 of the 
Congressional Budget Act of 1974, the Committee provides the 
following cost estimate, prepared by the Congressional Budget 
Office:

                                                 February 28, 2007.
Hon. Daniel K. Inouye,
Chairman, Committee on Commerce, Science, and Transportation,
U.S. Senate, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for S. 184, the Surface 
Transportation and Rail Security Act of 2007.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contacts are Matthew 
Pickford and Sarah Puro (for federal costs and the state and 
local impact), and Fatimot Ladipo (for the private-sector 
impact).
            Sincerely,
                                                   Peter R. Orszag.
    Enclosure.

S. 184--Surface Transportation and Rail Security Act of 2007

    Summary: S. 184 would authorize the appropriation of $1.1 
billion over the 2008-2012 period for security-related programs 
carried out by the Department of Homeland Security (DHS) and 
the Department of Transportation (DOT) involving railroads, 
buses, trucks, and pipelines. Assuming appropriation of the 
amounts specified in the legislation, CBO estimates that 
providing the grants would cost about $280 million in 2008 and 
nearly $1.1 billion over the 2008-2012 period. Enacting the 
bill would not affect direct spending. CBO estimates that the 
civil monetary penalties authorized by the bill would have a 
negligible effect on revenues.
    In addition to authorizing appropriations for security-
related grants, the bill would require DHS to assess the 
security of the transportation of certain hazardous materials 
by rail and motor carriers, to create a public awareness 
campaign for rail security issues, and to issue security 
training guidance for certain rail personnel. Finally, the bill 
would require DHS to report to the Congress on the security of 
rail, pipeline, and bus transportation. Assuming appropriation 
of the necessary amounts, CBO estimates that implementing those 
provisions would cost about $22 million over the 2008-2012 
period.
    S. 184 contains several intergovernmental and private-
sector mandates as defined in the Unfunded Mandates Reform Act 
(UMRA) because it would require rail and motor carriers to 
comply with reporting requirements and certain security 
procedures. The bill also would preempt certain state laws. The 
aggregate cost to public entities and the private-sector for 
complying with those mandates is uncertain and would depend on 
future regulations. Because of the small number of entities 
involved, however, CBO estimates that the aggregate costs for 
public entities to comply with those mandates would not exceed 
the annual threshold established by UMRA for intergovernmental 
mandates ($66 million in 2007, adjusted annually for 
inflation). In contrast, CBO cannot determine whether the 
aggregate costs to the private sector would exceed the annual 
threshold for private-sector mandates ($131 million in 2007, 
adjusted annually for inflation). Other provisions of the bill 
would authorize about $1 billion in grants for which state, 
local, tribal and private-sector entities would be eligible. 
Any costs those entities would incur to comply with conditions 
of federal assistance would be incurred voluntarily.
    Estimated cost to the Federal Government: The estimated 
budgetary impact of S. 184 is shown in the following table. The 
costs of this legislation fall within budget functions 400 
(transportation).

------------------------------------------------------------------------
                                      By fiscal year, in millions of
                                                 dollars--
                                 ---------------------------------------
                                   2008    2009    2010    2011    2012
------------------------------------------------------------------------
              CHANGES IN SPENDING SUBJECT TO APPROPRIATION

Grants to Amtrak:
    Authorization Level.........     185     148     148     118       0
    Estimated Outlays...........     185     148     148     118       0
Grants for Rail Security:
    Authorization Level.........     133     133     133       0       0
    Estimated Outlays...........      83     118     133      50      15
Grants for Over-the-Road Bus
 Security:
    Authorization Level.........      12      25      25       0       0
    Estimated Outlays...........       2       9      17      17      11
Other Authorized Programs:
    Authorization Level.........      11      11       9       0       0
    Estimated Outlays...........      10      11       9       1       0
Reports, Assessments, and
 Guidance:
    Estimated Authorization           10       4       4       4       4
     Level......................
    Estimated Outlays...........       3       7       4       4       4
    Total Proposed Changes:
        Estimated Authorization      351     321     319     122       4
         Level..................
        Estimated Outlays.......     283     293     311     190      30
------------------------------------------------------------------------

    Basis of estimate: For this estimate, CBO assumes that S. 
184 will be enacted in fiscal year 2007 and that the authorized 
amounts will be appropriated each year. Estimates of spending 
are based on historical spending patterns of similar programs.
    S. 184 would authorize the appropriation of $1.1 billion 
over the 2008-2012 period for federal programs related to 
transportation security. That amount includes funds to support 
programs aimed at improving the security of rail and surface 
transportation through programs administered by DOT and DHS. In 
addition, CBO estimates that complying with the bill's 
reporting and other administrative requirements would add $22 
million in discretionary costs over the next five years.

Spending subject to appropriation

    Grants to Amtrak. S. 184 would authorize the appropriation 
of $599 million over the 2008-2011 period for grants to Amtrak 
to improve the security of the Amtrak rail system. That amount 
includes $472 million to support projects to improve the safety 
of tunnels in New York, Maryland, and the District of Columbia 
and $3 million for the preliminary design of a new tunnel in 
Baltimore, Maryland. It also includes $124 million to implement 
physical changes to stations and trains so that they are more 
secure from attack, obtain additional communications equipment, 
and provide security training to Amtrak employees. CBO 
estimates that implementing these provisions would cost $185 
million in 2008 and $599 million over the 2008-2011 period.
    Grants for Rail Security. The bill would authorize the 
appropriation of $399 million over the 2008-2010 period for 
grants to improve rail security. That amount includes $300 
million to upgrade the security of the national freight and 
passenger rail system by improving emergency communications, 
securing capital assets, and training employees. The bill also 
would authorize the appropriation of $99 million over the 2008-
2010 period for grants to research and develop methods to 
improve the security of freight and intercity rail 
transportation. CBO estimates implementing those provisions 
would cost $83 million in 2008 and $399 million over the 2008-
2012 period.
    Grants for Bus Security. S. 184 would authorize the 
appropriation of $62 million over the 2008-2010 period for 
grants to operators of over-the-road buses and bus terminals to 
improve the security of this transportation system. (Over-the-
road buses are characterized by an elevated passenger deck 
above a baggage compartment.) These amounts include funds for 
security training, emergency drills, and upgrading certain 
capital assets. Assuming appropriation of the specified 
amounts, CBO estimates implementing those provisions would cost 
$2 million in 2008 and $56 million over the 2008-2012 period.
    Other Authorized Programs. Other provisions of the bill 
would authorize the appropriation of $31 million over the 2008-
2012 period, including:
           $9 million for DHS to develop a program to 
        encourage the use of wireless tracking systems for rail 
        cars that are transporting certain hazardous material;
           $9 million for DHS to develop a program to 
        encourage the tracking of certain hazardous materials 
        transported by motor carrier;
           $6 million for DHS to review motor carriers' 
        security plans for the transportation of hazardous 
        materials;
           $3 million for DHS to consider developing a 
        system to monitor security and emergency alerts about 
        the transportation of certain hazardous materials and 
        to disseminate that information to the public; and
           $4 million for DHS to develop and implement 
        a plan to review the security plans for certain 
        pipeline systems.
    Assuming appropriation of the specified amounts, CBO 
estimates implementing those provisions would cost $10 million 
in 2008 and $31 million over the 2008-2012 period.
    Reports, Assessments, and Guidance. S. 184 would require 
DHS to assess the security of rail and pipeline transportation 
and to prepare several reports to the Congress on that issue. 
The bill would authorize the appropriation of $5 million in 
2008 to complete a risk assessment of freight and passenger 
rail transportation. DHS would prepare subsequent annual 
updates to that assessment.
    The bill would require DHS to develop, issue, and update, 
as necessary, detailed guidance for a program to train certain 
rail workers in security procedures and to review the security 
plans of rail carriers.
    The bill also would require DHS to complete a report on the 
status of rail security at the Canadian border, review the 
hazardous materials security plans for operators of rail 
transportation, and develop and implement a plan to make the 
public aware of rail security issues. Further, the bill would 
require DHS to assess and report on the existing and proposed 
routes for the transportation--by motor carrier--of certain 
hazardous material, and to study the security of the trucking 
industry and establishing security fees for use of the maritime 
and surface transportation system.
    Based on information from DHS, CBO estimates that 
implementing those provisions would cost $3 million in 2008 and 
$22 million over the 2008-2012 period.

Revenues

    S. 184 would establish new civil penalties for violating 
certain regulations established by DHS and for failing to 
comply with the requirement to supply DHS with certain security 
plans. Thus, the federal government might collect additional 
fines if the bill is enacted. Collections of civil fines are 
recorded as revenues and deposited in the Treasury; however, 
CBO expects that any increase in revenues related to those 
penalties would not be significant.
    Intergovernmental and private-sector impact: S. 184 
contains several intergovernmental and private-sector mandates 
as defined in the Unfunded Mandates Reform Act because it would 
require rail and motor carriers to comply with reporting 
requirements and certain security procedures. The bill also 
would preempt certain state laws. The aggregate cost to public 
entities and the private sector for complying with those 
mandates is uncertain and would depend on future regulations. 
Because of the small number of entities involved, however, CBO 
estimates that the aggregate costs for public entities to 
comply with those mandates would not exceed the annual 
threshold established by UMRA for intergovernmental mandates 
($66 million in 2007, adjusted annually for inflation). In 
contrast, CBO cannot determine whether the aggregate costs to 
the private sector would exceed the annual threshold for 
private-sector mandates ($131 million in 2007, adjusted 
annually for inflation). Other provisions of the bill would 
authorize about $1 billion in grants for which state, local, 
tribal, and private-sector entities would be eligible. Any 
costs those entities would incur to comply with conditions of 
federal assistance would be incurred voluntarily.

Mandates that affect both the public and private sectors

    S. 184 would require rail carriers to train certain workers 
in security procedures and would grant whistle-blower 
protections to their employees.
    Rail Worker Security Training. Through regulations to be 
established by the Department of Homeland Security, section 109 
would require rail carriers to create and submit plans for 
security training and then complete the training for all front-
line workers. Front-line workers are defined in the bill as 
security personnel, dispatchers, train operators, other onboard 
employees, maintenance and maintenance support personnel, 
bridge tenders as well as other appropriate employees of rail 
carriers as defined by the Secretary. CBO estimates that 
approximately 190,000 public and private-sector employees--
about 85 percent of which are private-sector employees--would 
fit that definition.
    According to experts from the rail industry, the amount of 
training required varies depending on the industry sector 
(passenger vs. freight). It is likely that in either sector, 
the regulations issued by the Department of Homeland Security 
would require additional training over and above current 
practice. Further, it is likely that many employees would need 
to be trained more than once over a five-year period. 
Therefore, it is likely that under new regulations, costs to 
train workers would exceed the current costs for security 
training. Because this mandate depends upon the future actions 
of DHS, for which information is not available, CBO cannot 
provide an estimate for the total cost of this mandate. CBO 
expects, however, that the incremental cost would be small for 
public entities, while the additional cost for the private 
sector could be substantial, depending on the guidelines set 
forth by DHS.
    Whistle Blower Protection. Section 110 would prohibit rail 
carriers from discharging or discriminating against any 
employee who reports a perceived threat to security.
    Under current law, employees are protected if they report 
any safety issues. The granting of additional whistle-blower 
protections would impose both an intergovernmental and a 
private-sector mandate on rail carriers, as defined in UMRA. 
Because compliance with those broader whistle-blower 
protections likely would involve only a small adjustment in 
administrative procedures, however, CBO estimates that the 
provision would impose only minimal additional costs on rail 
carriers.

Mandates that affect only the private sector

    S. 184 contains several private-sector mandates, as defined 
in UMRA, on motor carriers, rail carriers, and pipeline 
operators. The bill would require that rail carriers and motor 
carriers develop various security plans, as well as authorize 
new requirements to be imposed on operators of transmission 
pipelines in the future.
    Requirements on Motor Carriers. Section 201 would expand 
the number of hazardous materials for which transporters must 
prepare and maintain a written route plan. Under current law, 
transporters of certain hazardous materials must prepare a 
written route plan and supply a copy to both the motor vehicle 
driver and the shipper. The bill would expand that requirement 
to include transporters of the remaining hazardous materials 
for which DOT requires motor carriers to hold a safety permit 
to transport. According to industry sources, the cost to comply 
with this requirement would be significant, resulting from the 
time-intensive nature of preparing a route plan for each 
shipment of the covered hazardous materials. Industry sources 
estimate the cost to develop each route plan could average 
about $50. CBO has been unable to obtain data on the annual 
number of shipments of the hazardous materials referred to in 
section 201. Consequently, CBO has no basis for estimating the 
cost of complying with this mandate.
    Amtrak. S. 184 would require Amtrak to submit a plan to the 
Chairman of the National Transportation Safety Board that would 
be invoked in case of a railway accident involving loss of 
life. According to industry sources, Amtrak has a contingency 
plan in place for responding to the needs of families of rail 
accident passengers that is similar to the provisions contained 
in the bill. The bill would authorize $500,000 to be 
appropriated in fiscal year 2007 to complete the required plan. 
The bill also would require that Amtrak participate in a 
working group that would be required to submit a report on 
securing the northern border. CBO estimates that the cost of 
providing that report would be nominal.
    Requirements on Hazmat Carriers. Section 111 would require 
rail carriers who transport high hazard materials, as defined 
in the bill, to develop a security threat mitigation plan for 
high hazard material. Currently, the Department of 
Transportation requires rail carriers who transport those 
hazardous materials to submit a security plan. However, the 
bill would expand current requirements on rail carriers to 
include submitting a list of routes used to transport high 
hazard materials, addressing temporary shipment suspension 
options, and assessing risks to high-consequence targets. 
According to railroad industry sources, rail carriers are 
complying with current DOT regulations. Because rail carriers 
are already complying with many of the provisions in the 
legislation, CBO estimates that the additional cost to comply 
with the mandate would be minimal.
    Requirements on Operators of Transmission Pipelines. 
Section 209 would authorize the Secretary of Homeland Security 
to establish and enforce new security regulations on operators 
of transmission pipelines. According to industry sources in 
both the natural gas and oil pipeline industries, all pipeline 
operators are abiding by current guidelines as set forth in the 
DOT September 5, 2002, Pipeline Security Information Circular. 
If the Secretary were to impose more stringent security 
regulations on pipeline operators, those entities could face 
increased costs; however, without information about such 
requirements CBO cannot determine the cost of compliance.

Other impacts: security grants

    The bill would authorize about $1 billion over four years 
for grants to improve the security of both passenger and 
freight rail as well as over-the-road buses and over-the-road 
bus terminals, establish a rail security and research program, 
and upgrade Amtrak tunnels in New Yark, Baltimore, and 
Washington, D.C. To the extent that state, local, or tribal 
governments, or private-sector entities apply for and receive 
such grants, those provisions would provide benefits to those 
entities. Any costs resulting from complying with the 
conditions of the grants would be incurred voluntarily.
    Previous CBO estimate: On February 22, 2007, CBO 
transmitted a cost estimate for the Public Transportation 
Terrorism Prevention Act of 2007 as ordered reported by the 
Senate Committee on Banking, Housing, and Urban Affairs on 
February 8, 2007. That bill would authorize DHS to provide $3.5 
billion in grants over the 2008-2010 period to public 
transportation agencies to improve the security of transit 
systems and grants and contracts to public and private entities 
to study methods of deterring terrorist attacks against transit 
systems and mitigating damages from such attacks. That bill 
would require DHS to cover the costs of an Information Sharing 
and Analysis Center and would not authorize grants to Amtrak. 
The differences between the bills are reflected in CBO's cost 
estimates.
    Estimate prepared by: Federal Costs: Matthew Pickford and 
Sarah Puro. Impact on State, Local, and Tribal Governments: 
Sarah Puro. Impact on the Private Sector: Fatimot Ladipo.
    Estimate approved by: Peter H. Fontaine, Deputy Assistant 
Director for Budget Analysis.

                      Regulatory Impact Statement

  In accordance with paragraph 11(b) of rule XXVI of the 
Standing Rules of the Senate, the Committee provides the 
following evaluation of the regulatory impact of the 
legislation, as reported:

                       NUMBER OF PERSONS COVERED

  S. 184 is intended to improve rail and surface transportation 
security by establishing new Federal programs and modifying 
existing law. The bill affects TSA, DOT, and other entities 
already subject to TSA and DOT rules and regulations, and 
therefore the number of persons covered should be consistent 
with the current levels of individuals impacted under existing 
TSA and DOT regulations.

                            ECONOMIC IMPACT

  S. 184 is not expected to have an adverse impact on the U.S. 
economy. It is anticipated that titles I and II would have 
positive economic impacts to their respective areas and should 
provide significant support to the corresponding transportation 
sector modes. The bill would authorize the necessary funding to 
establish a more secure system by requiring DHS, and in some 
cases DOT, as well as the corresponding industries to take 
steps to protect the system.

                                PRIVACY

  S. 184 would have minimal effect on the privacy rights of 
individuals.

                               PAPERWORK

  The Committee anticipates a slight increase in paperwork 
burdens on requirements for private individuals or businesses. 
In those areas where the bill does require additional 
paperwork, it is aimed at improving the security of 
transportation infrastructure, assets, and operations. S. 184 
would require a range of plans, communications, budget 
analyses, agreements, and rulemakings. In certain sections, 
such as section 101, the DHS Secretary would be required to 
issue a report containing recommendations and plans to 
Congress, or in the case of sections 109 and 111, the DHS and 
DOT Secretaries would be required to develop and issue detailed 
guidance to the pertinent industry stakeholders. Section 114 
would require the DHS and DOT Secretaries to develop a national 
plan for improved public outreach, which would entail 
communication with citizens, although not necessarily in print 
format. Section 201 would require a report and possible 
revisions to existing rules. Section 203 would require that the 
Secretaries of DHS and DOT enter into an annex of a previously 
established Memorandum of Agreement to delineate roles and 
responsibilities. Sections 205, 208 and 212 would require new 
reports, studies, and plans.
  The paperwork burden on industry or private individuals stems 
from plans that would be developed and/or submitted for review 
to DHS and DOT: these plans would be used for strategic 
security purposes or would be a pre-requisite for distributing 
grants. For example, in section 111, rail carriers would be 
required to develop and submit security threat mitigation plans 
which would be updated and resubmitted for review, while 
section 201 could require certain motor carriers to develop and 
maintain written route plans. Illustrations of grant 
requirements are found in sections 103, where the DOT Secretary 
would have to approve plans submitted by Amtrak before 
distributing grants for fire and life-safety improvements; in 
section 106, which requires the DHS Secretary to establish 
procedures applicants or grant awards; and in section 207, 
where the DHS Secretary would not be required to award grants 
until private bus operators submitted a plan for making 
security improvements.

                      Section-by-Section Analysis


Section 1. Short title.

  Section 1 would provide that this Act may be cited as the 
``Surface Transportation and Rail Security Act of 2007''.

Section 2. Table of contents.

  This section provides a table of contents for this Act.

Section 3. Definitions.

  This section defines the terms ``High Hazard Materials'' and 
``Secretary'' for the purposes of this Act.

                    TITLE I--IMPROVED RAIL SECURITY

Section 101. Rail transportation security and risk assessment

  This section would require the DHS Secretary to establish a 
task force to complete a risk assessment of freight and 
passenger rail transportation. The Secretary would be required 
to take into account actions taken or planned by both public 
and private entities. Based on the findings of the task force, 
within 1 year after the date of enactment of this Act, the 
Secretary would be required to develop and report to Congress 
prioritized recommendations for improving rail security, 
including recommendations related to: tunnels, bridges, and 
other rail infrastructure security; explosive, chemical, 
biological, and radiological detection technologies; 
surveillance equipment; railroad or railroad shipper employee 
training; public outreach and security awareness; immediate and 
long-term costs associated with addressing risks; and public 
and private sector rail security funding efforts.
  The Secretary would be required to include in the 
recommendations a plan for the Federal government to provide 
security support at high threat levels of alert; a plan for 
coordinating existing and planned rail security initiatives 
undertaken by the public and private sectors; and a contingency 
plan developed in conjunction with the intercity and commuter 
passenger railroads to ensure the continued movement of freight 
and passengers in the event of a terrorist attack. The 
Secretary would be required to provide Congress with annual 
assessments and recommendations concerning the security of the 
domestic rail system.
  In developing the risk assessment, recommendations, and plans 
required under this section, the Secretary shall consult with 
industry stakeholders and other relevant entities and shall 
utilize existing risk assessments completed by DHS or other 
Federal entities, and, as appropriate, assessments completed by 
other stakeholders. This section would authorize $5,000,000 for 
FY 2008 to carry out this section.
  The Committee notes its frustration with the inability of TSA 
to complete a comprehensive risk assessment of the railroad 
sector. The Committee believes fulfillment of this section is 
an absolute priority, so that the results of the assessment may 
be used to guide the ongoing rail security efforts and the new 
programs called for in this bill. In completing the assessment 
required by this section, it is not the Committee's intention 
that TSA unnecessarily redo existing assessment work, of 
sufficient quality and relevance, already completed by the 
agency or other Federal, private or public stakeholders. 
However, the Committee expects any existing assessments used to 
be synthesized into a comprehensive and coherent total 
assessment, not simply compiled into a single document.

Section 102. System-wide Amtrak security upgrades

  This section would authorize the Secretary of DHS to make 
security grants to Amtrak for the general purposes of: 
protecting underwater/underground assets and systems; 
protecting high risk/high consequence assets identified through 
system-wide risk assessments; counter-terrorism training for 
front line staff; use of visible/unpredictable deterrence; 
emergency preparedness drills and exercises; and public 
awareness and preparedness campaigns. Specific grant 
eligibilities include: securing major tunnel access points in 
New York, New Jersey, Maryland, and Washington, D.C.; securing 
Amtrak trains and stations; obtaining a watch list 
identification system and interoperable communication system; 
and hiring additional police and security officers.
  The DHS Secretary would authorize grants to Amtrak for 
projects contained in a system-wide security plan approved by 
the DHS Secretary and the DOT Secretary would disburse the 
grant funds to Amtrak through DOT's existing Amtrak grant 
process. The DHS Secretary would be required to ensure that 
grants are appropriately distributed to areas outside of the 
Northeast Corridor, consistent with the highest security needs 
of the Amtrak system. This section would authorize $63,500,000 
for FY 2008 and $30,000,000 for FYs 2009 and 2010 to carry out 
this section.
  The Committee expects the DOT Secretary to function as a 
pass-through for grants awarded under this section to Amtrak, 
using the quarterly grant process currently used by DOT to 
provide Federal funds to Amtrak. The Committee does not expect 
DOT to establish any additional grant requirements, and this 
section does not provide DOT any additional authority by which 
to deal or withhold grants made to Amtrak.

Section 103. Fire and life-safety improvements

  This section would authorize the DOT Secretary to make grants 
to Amtrak for the purpose of making fire and life-safety 
improvements to Amtrak tunnels on the Northeast Corridor.
  This section would authorize $100,000,000 in funding for DOT 
for each of FYs 2008 through 2011 to make fire and life-safety 
improvements to the New York/New Jersey tunnels; $10,000,000 
for each of FYs 2008 through 2011 for improvements of the 
Baltimore & Potomac and Union tunnels in Baltimore, Maryland; 
and $8,000,000 for each of FYs 2008 through 2011 for 
improvements of the Washington, D.C., Union Station tunnels. 
The DOT Secretary would be required to approve plans submitted 
by Amtrak before distributing grants. In addition, the 
Secretary would be authorized to consider the feasibility of 
seeking a financial contribution from other rail carriers 
towards the cost of the project. This section also authorizes 
$3,000,000 in FY 2008 for preliminary design of a new railroad 
tunnel in Baltimore, Maryland.

Section 104. Freight and passenger rail security upgrades

  This section would authorize the DHS Secretary to make grants 
to freight railroads, the Alaska Railroad, HAZMAT shippers, 
owners of rail cars used to transport HAZMAT, institutions of 
higher education, State and local governments, and Amtrak, for 
full or partial reimbursement of costs incurred to prevent or 
respond to acts of terrorism, sabotage, or other risks. The DHS 
Secretary would be required to adopt necessary procedures to 
ensure that grants made under this section are expended in 
accordance with the purposes of this Act. This section would 
authorize $100,000,000 for DHS for each of FYs 2008 through 
2010 for the DHS Secretary to carry out this section. Grants to 
Amtrak are limited to $45,000,000 over the authorization period 
and grants for HAZMAT rail security are limited to $80,000,000 
in total over the authorization period.
  The Committee believes the authorization of the program is 
particularly important because very little of the existing DHS 
rail security grant funds have been available to intercity 
passenger rail security and no funds have been made available 
for freight railroad security.

Section 105. Rail security research and development

  This section would require the DHS Secretary, in conjunction 
with the DHS Undersecretary for Science and Technology and the 
Assistant Secretary for TSA, and in consultation with the DOT 
Secretary, to carry out a research and development program for 
the purpose of improving freight and intercity passenger rail 
security. In carrying out this section, the DHS Secretary would 
be required to coordinate with other research and development 
initiatives at DOT. The DHS Secretary would also be allowed to 
award research and development grants to certain entities 
described in this section. This section would authorize 
$33,000,000 for DHS for each of FYs 2008 through 2011 for the 
DHS Secretary to carry out this section.

Section 106. Oversight and grant procedures

  This section would authorize the DHS Secretary to enter into 
contracts to audit and review grants awarded under this Act. 
The DHS Secretary would be required to prescribe procedures and 
schedules for the awarding of grants under this Act, including 
application and qualification procedures. In awarding grants, 
the DHS Secretary may issue letters of intent (LOI) to 
recipients of grant awarded under this bill, as the Secretary 
may do now for aviation security funding through TSA. The 
Committee included this LOI authority because of the multi-year 
nature of some of the capital projects that may be funded 
through grants under this bill. In such instances, it is 
important that public and private sector partners in security 
improvements receive indications from TSA that the agency 
believes multi-year funding is appropriate. The Committee 
acknowledges an LOI is not a commitment of future funds by an 
agency.

Section 107. Amtrak plan to assist families of passengers involved in 
        rail accidents

  This section would require Amtrak, not later than 6 months 
after the date of enactment of this Act, to submit to the 
Chairman of the National Transportation Safety Board, the DOT 
Secretary and the DHS Secretary, a plan for addressing the 
needs of families of passengers involved in any rail passenger 
accident involving an Amtrak intercity train and resulting in 
loss of life. This section authorizes $500,000 for FY 2008 for 
the DOT Secretary to carry out this new section.

Section 108. Northern border rail passenger report

  This section would require the DHS Secretary, in consultation 
with the DOT Secretary, heads of other appropriate Federal 
departments and agencies, and Amtrak, within 180 days after the 
date of enactment, to submit a report to Congress that 
contains: a description of the current system for screening 
passengers and baggage on rail service between the United 
States and Canada; an assessment of the current program to 
provide pre-clearance of airline passengers between the United 
States and Canada; an assessment of the current program to 
provide pre-clearance of freight railroad traffic between the 
United States and Canada; information on progress by DHS and 
other Federal agencies towards finalizing a bilateral protocol 
with Canada that would provide for pre-clearance of passengers 
on trains operating between the United States and Canada; a 
description of legislative, regulatory, budgetary, or policy 
barriers to providing pre-screened passenger lists for such 
passengers; a description of the Canadian position with respect 
to pre-clearance; a draft of any changes to Federal law 
necessary to allow for pre-screening; and a feasibility 
analysis of reinstating in-transit inspections onboard 
international Amtrak trains.

Section 109. Rail worker security training program

  This section would require the DHS and DOT Secretaries, not 
later than 1 year after the date of enactment of this Act, to 
work with law enforcement officials, as well as terrorism and 
rail experts, to develop and issue detailed guidance for a 
railroad worker security training program to prepare front-line 
workers for potential threat conditions. This section also 
would require railroad carriers to adopt a worker security 
training program in accordance with the guidance and submit it 
to the DHS Secretary for approval. Within one year after the 
DHS Secretary reviews rail carriers' training programs, 
railroad carriers would be required to complete the training of 
all front-line workers consistent with the approved program.

Section 110. Whistleblower protection program

  This section would preclude rail carriers from discharging, 
or otherwise discriminating against, a railroad employee 
because the employee, or the employee's representative: 
provided, caused to be provided, or is about to provide, to the 
employer or the Federal government information relating to a 
reasonably perceived threat to security; provided, caused to be 
provided, or is about to provide testimony before a Federal or 
State proceeding; or refused to violate or assist in violation 
of any law or regulation related to rail security.

Section 111. High hazard material security threat mitigation plans

  This section would direct the DHS and DOT Secretaries to 
require rail carriers transporting a high hazard material to 
develop security threat mitigation plans, including alternative 
routing and temporary shipments suspension options, and to 
address assessed risks to high consequence targets. These 
threat mitigation plans would be implemented when the threat 
levels of the Homeland Security Advisory System are raised to 
high or severe or specific intelligence of probable or imminent 
threat exists toward high-consequence rail targets or 
infrastructure. Within 60 days of enactment of this Act, a list 
of routes used to transport high hazard materials would be 
required to be submitted to the DHS Secretary. Within 180 days 
after receiving the notice of high consequence targets on such 
routes by the DHS Secretary, each rail carrier would be 
required to develop and submit a high hazard material security 
threat mitigation plan to the DHS Secretary. Any revisions must 
be submitted to the DHS Secretary within 30 days of the 
revisions being made. The DHS Secretary, with the assistance of 
the DOT Secretary would be directed to review and transmit 
comments on the plans to the railroad carrier. A railroad 
carrier would be required to respond to those comments within 
30 days. The plans would be required to be updated by the 
railroad carrier every two years. This section also defines the 
following terms: ``high-consequence target,'' ``catastrophic 
impact zone,'' and ``rail carrier.''

Section 112. Enforcement authority

  This section would amend current law to clarify the DHS 
Secretary's legal authority for initiating an administrative 
enforcement proceeding for violations of transportation 
security regulations and requirements relating to modes of 
transportation other than aviation. Presently, TSA can enforce 
aviation security-related regulations and requirements 
administratively, but ambiguity exists regarding such 
administrative enforcement authority for non-aviation related 
enforcement actions. This provision would extend the existing 
aviation enforcement authority to the DHS Secretary for non-
aviation transportation modes.

Section 113. Rail security enhancements

  This section would allow police officers employed by a 
railroad to be deputized to help a second railroad in carrying 
out enforcement duties on the second railroad. In addition, the 
provision would require the DOT Secretary to write and 
distribute to States model railroad police commissioning laws 
to help prevent the problems posed by ``scam railroads.'' 
``Scam railroads'' are companies that are organized as 
railroads in order to obtain police powers but are not actually 
engaged in the railroad business.

Section 114. Public awareness

  This section would require the DHS Secretary, in consultation 
with the DOT Secretary, within 90 days after the date of 
enactment of this Act, to develop a national plan for improved 
public outreach and awareness of measures that the general 
public, railroad passengers, and railroad employees can take to 
increase railroad system security. Not later than 9 months 
after the date of enactment of this Act, the DHS Secretary 
would be directed to implement this plan.

Section 115. Railroad high hazard material tracking

  This section would require the DHS Secretary, within 6 months 
after the date of enactment of this Act, to develop a program 
to encourage the equipping of rail cars transporting high 
hazard materials with communications technology that provides 
information concerning car position, depressurization, and the 
release of HAZMAT. This section would authorize $3,000,000 in 
funding for FYs 2008 through 2010 for the DHS Secretary to 
carry out this section.

Section 116. Authorization of appropriations

  This section would authorize $205,000,000 in funding for FY 
2008 and $166,000,000 for FYs 2009 to 2010 for the DHS 
Secretary for this title. This section also would authorize 
$121,000,000 for FY 2008 and $118,000,000 for FYs 2009 to 2011 
for the DOT Secretary to carry out DOT's responsibilities under 
this Act.

 TITLE II--IMPROVED MOTOR CARRIER, BUS, AND HAZARDOUS MATERIAL SECURITY

Section 201. HAZMAT highway routing

  This section would require the DOT Secretary, within one year 
of enactment of this Act, in consultation with the DHS 
Secretary, to: document existing and proposed routes for the 
transportation of radioactive and non-radioactive HAZMAT by 
motor carrier and develop a framework by using a Geographic 
Information System-based approach to characterize routes in the 
National HAZMAT Route Registry; assess and characterize 
existing and proposed routes for the transportation of 
radioactive and non-radioactive HAZMAT by motor carrier for the 
purpose of identifying measurable criteria for selecting routes 
based on safety and security concerns; analyze current route-
related HAZMAT regulations in the United States, Canada, and 
Mexico to identify cross-border differences and conflicting 
regulations; document the concerns of the public, motor 
carriers, and State, local, territorial, and tribal governments 
about the highway routing of HAZMAT for the purpose of 
identifying and mitigating security risks associated with 
hazardous material routes; prepare guidance materials for State 
officials to assist them in identifying and reducing both 
safety concerns and security risks when designating highway 
routes for HAZMAT; develop a tool that will enable State 
officials to examine potential routes for the highway 
transportation of HAZMAT; transmit to the Senate Committee on 
Commerce, Science and Transportation, and the House of 
Representatives Committee on Transportation and Infrastructure 
a report on the actions taken to fulfill all the requirements 
of this section and any recommended changes to the routing 
requirements for the highway transportation of HAZMAT.
  Within 1 year, the DOT Secretary would be required to 
complete an assessment of the safety and national security 
benefits achieved under existing requirements for route plans 
for explosives and radioactive materials and shall submit a 
report to the Senate Commerce Committee and the House 
Infrastructure and Transportation Committee with the findings 
and conclusions of the assessment. The DHS Secretary also would 
be directed to assess, and potentially require, the addition of 
certain high-HAZMAT to the list of existing HAZMAT that are 
required to be transported by motor carriers who use highway 
routing plans.

Section 202. Motor carrier high hazard material tracking

  This section would require the DHS Secretary, through TSA, 
and in consultation with the DOT Secretary, to develop a 
program to encourage the equipping of motor carriers 
transporting high hazard materials in with communications 
technology that provides frequent or continuous communications, 
vehicle position and location and tracking capabilities, and an 
emergency broadcast capability. This section would authorize 
$3,000,000 to carry out this Act for each of FYs 2008 through 
2010.

Section 203. Memorandum of agreement

  This provision would require DHS and DOT to develop a truck 
security memorandum of agreement (MOA) annex between the two 
Departments within 1 year after the date of enactment. The 
Departments currently have security MOA annexes in place for 
rail, transit, and HAZMAT security. The annex would delineate 
the roles, resources, and commitments of DHS and DOT in 
addressing truck security matters, including the processes the 
Departments will follow to promote communication, efficiency, 
and non-duplication of effort.

Section 204. HAZMAT security inspections and enforcement

  This section would require the DHS Secretary to establish a 
program within TSA, in consultation with the DOT Secretary, for 
reviewing HAZMAT security plans, within 1 year after the 
enactment of this Act. Failure by any covered person to comply 
within 180 days after being notified by the DHS Secretary would 
be punishable by a civil penalty. In reviewing compliance with 
part 172, the DHS Secretary would be required to utilize risk 
assessment methodologies to prioritize review and enforcement 
actions to the highest risk HAZMAT transportation operations.
  This section also would require within one year, the DOT 
Secretary, in coordination with the DHS Secretary, to study to 
what extent the insurance, security, and safety costs borne by 
carriers of HAZMAT are reflected in the rates paid by shippers 
of such commodities, as compared to those for the 
transportation of non-HAZMAT. This section would authorize 
$2,000,000 to carry out this Act for each of FYs 2008 through 
2010.

Section 205. Truck security assessment

  The DHS Secretary would be required to submit a report on 
security issues related to the trucking industry that includes 
an assessment of actions already taken by both public and 
private entities; an assessment of the economic impact that 
security upgrades on trucks, truck equipment, or truck 
facilities may have on the trucking industry and its employees; 
an assessment of ongoing research and need for additional 
research on truck security; an assessment of industry best 
practices to enhance security; and an assessment of the current 
status of secure parking facilities for trucks.

Section 206. National public sector response system

  This section would require the DHS Secretary, in coordination 
with the DOT Secretary, to develop a national public sector 
response system to receive security alerts, which can provide 
actionable information to appropriate first responder, law 
enforcement and public safety, and homeland security officials. 
The DHS Secretary would be required to consult with public and 
private stakeholders in developing this system. The system 
would be required to have certain capabilities and 
characteristics as described in this Act.
  This section would also require the DHS Secretary within 180 
days of enactment of this Act to transmit to Congress a report 
on the estimated public and private costs to establish and 
annually operate the system. This section would authorize 
$1,000,000 to carry out this Act for each of FYs 2008 through 
2010.

Section 207. Over-the-road bus security assistance

  This section would authorize the DHS Secretary to establish 
within TSA a program for making grants to private operators of 
over-the-road buses (characterized by an elevated passenger 
deck located over a baggage compartment) or over-the-road bus 
terminals for system-wide security improvements to their 
operations. General purposes for the grants would include: 
protecting underwater/underground assets and systems; 
protecting high risk/high consequence assets identified through 
system-wide risk assessments; counter-terrorism training for 
front line staff; use of visible/unpredictable deterrence; 
emergency preparedness drills and exercises; and public 
awareness and preparedness campaigns. Grants made under this 
section would be subject to certain terms and conditions. No 
grant would be made under this section to a private bus 
operator until the operator has first submitted a plan for 
making security improvements to the DHS Secretary, along with 
any other information the DHS Secretary may require.
  This section would require that, within one year of enactment 
of this Act, the DHS Secretary to submit to Congress a report 
containing an assessment of bus security actions already taken 
by public and private entities, whether additional legislation 
is necessary, the economic impact of security upgrades on the 
bus industry, ongoing research on bus security, best practices 
to enhance bus security, and school bus security, if 
appropriate. This section would authorize $12,000,000 to carry 
out this Act for FY 2008 and $25,000,000 for FY 2009 to 2010.

Section 208. Pipeline security and incident recovery plan

  This section would require the DHS Secretary, in consultation 
with the DOT Secretary and the PHMSA, and in accordance with 
the MOU Annex executed on August 9, 2006, to develop a Pipeline 
Security and Incident Recovery Protocols Plan. The Plan would 
be required to include a plan for the Federal Government to 
provide increased security support to the most critical natural 
gas and hazardous liquid transmission pipeline infrastructures 
and operations during periods of elevated threat levels and 
when specific threat information relating to such pipeline 
infrastructure or operations exists. The Plan also would be 
required to include an incident recovery protocol plan.
  This section also would require that the DHS Secretary 
transmit to Congress a report containing the plan required in 
this section, along with an estimate of the private and public 
sector costs to implement any recommendations.

Section 209. Pipeline security inspections and enforcement

  This section would require the DHS Secretary, in consultation 
with the DOT Secretary, to establish a program to review 
pipeline operator adoption of recommendations in the September 
5, 2002, DOT Research and Special Programs Administration 
Pipeline Security Information Circular. The DHS Secretary would 
be required to complete within nine months of enactment of this 
Act a review of pipeline security plan and inspection of the 
100 most critical pipeline operators covered by the Circular. 
In reviewing operator compliance, the DHS Secretary would be 
required to utilize risk assessment methodologies.
  This section also would require the DHS Secretary and the DOT 
Secretary to jointly develop recommendations for pipeline 
operators for securing natural gas and hazardous liquid 
pipelines and pipeline facilities. If the DOT or DHS Secretary 
deem security regulations appropriate, either Secretary would 
be authorized to promulgate such regulations and carry out 
necessary inspection and enforcement actions, in accordance 
with the MOU Annex executed on August 9, 2006 between the two 
agencies. This section would authorize $2,000,000 to carry out 
this Act for each of FYs 2008 and 2009.

Secton 210. Technical corrections

  This section makes technical corrections to title 49, United 
States Code, and title 46, United States Code.

Section 211. Certain personnel limitations not to apply

  This section makes clear that any statutory limitation on the 
number of TSA employees does not apply to employees 
implementing provisions of this Act.

Section 212. Maritime and surface transportation security fee study

  This section would require the DHS Secretary to study the 
need for, and feasibility of, establishing a system of maritime 
and surface transportation-related user fees that may be 
imposed and collected to fund maritime and surface 
transportation security improvements. In developing the study, 
the DHS Secretary would be directed to consult with maritime 
and surface transportation carriers, shippers, passengers, 
facility owners and operators, and other persons as determined 
by the DHS Secretary. The study would include an assessment of 
current security-related fees in the United States, Canada, and 
Mexico; an analysis of the impact of fees on transportation 
carriers and shippers; and an evaluation of current private and 
public sector expenditures on maritime and surface 
transportation security. Within 1 year after the date of 
enactment, the DHS Secretary would be required to transmit a 
report to Congress on the results of the study.

                        Changes in Existing Law

  In compliance with paragraph 12 of rule XXVI of the Standing 
Rules of the Senate, changes in existing law made by the bill, 
as reported, are shown as follows (existing law proposed to be 
omitted is enclosed in black brackets, new material is printed 
in italic, existing law in which no change is proposed is shown 
in roman):

                      TITLE 49, UNITED STATES CODE

                SUBTITLE I--DEPARTMENT OF TRANSPORTATION

                        CHAPTER 1. ORGANIZATION

Sec. 114. Transportation Security Administration

  (a) In General.--The Transportation Security Administration 
shall be an administration of the Department of Transportation.
  (b) Under Secretary.--
          (1) Appointment.--The head of the Administration 
        shall be the Under Secretary of Transportation for 
        Security. The Under Secretary shall be appointed by the 
        President, by and with the advice and consent of the 
        Senate.
          (2) Qualifications.--The Under Secretary must--
                  (A) be a citizen of the United States; and
                  (B) have experience in a field directly 
                related to transportation or security.
          (3) Term.--The term of office of an individual 
        appointed as the Under Secretary shall be 5 years.
  (c) Limitation on Ownership of Stocks and Bonds.--The Under 
Secretary may not own stock in or bonds of a transportation or 
security enterprise or an enterprise that makes equipment that 
could be used for security purposes.
  (d) Functions.--The Under Secretary shall be responsible for 
security in all modes of transportation, including--
          (1) carrying out chapter 449, relating to civil 
        aviation security, and related research and development 
        activities; and
          (2) security responsibilities over other modes of 
        transportation that are exercised by the Department of 
        Transportation.
  (e) Screening Operations.--The Under Secretary shall--
          (1) be responsible for day-to-day Federal security 
        screening operations for passenger air transportation 
        and intrastate air transportation under sections 44901 
        and 44935;
          (2) develop standards for the hiring and retention of 
        security screening personnel;
          (3) train and test security screening personnel; and
          (4) be responsible for hiring and training personnel 
        to provide security screening at all airports in the 
        United States where screening is required under section 
        44901, in consultation with the Secretary of 
        Transportation and the heads of other appropriate 
        Federal agencies and departments.
  (f) Additional Duties and Powers.--In addition to carrying 
out the functions specified in subsections (d) and (e), the 
Under Secretary shall--
          (1) receive, assess, and distribute intelligence 
        information related to transportation security;
          (2) assess threats to transportation;
          (3) develop policies, strategies, and plans for 
        dealing with threats to transportation security;
          (4) make other plans related to transportation 
        security, including coordinating countermeasures with 
        appropriate departments, agencies, and 
        instrumentalities of the United States Government;
          (5) serve as the primary liaison for transportation 
        security to the intelligence and law enforcement 
        communities;
          (6) on a day-to-day basis, manage and provide 
        operational guidance to the field security resources of 
        the Administration, including Federal Security Managers 
        as provided by section 44933;
          (7) enforce security-related regulations and 
        requirements;
          (8) identify and undertake research and development 
        activities necessary to enhance transportation 
        security;
          (9) inspect, maintain, and test security facilities, 
        equipment, and systems;
          (10) ensure the adequacy of security measures for the 
        transportation of cargo;
          (11) oversee the implementation, and ensure the 
        adequacy, of security measures at airports and other 
        transportation facilities;
          (12) require background checks for airport security 
        screening personnel, individuals with access to secure 
        areas of airports, and other transportation security 
        personnel;
          (13) work in conjunction with the Administrator of 
        the Federal Aviation Administration with respect to any 
        actions or activities that may affect aviation safety 
        or air carrier operations;
          (14) work with the International Civil Aviation 
        Organization and appropriate aeronautic authorities of 
        foreign governments under section 44907 to address 
        security concerns on passenger flights by foreign air 
        carriers in foreign air transportation; and
          (15) carry out such other duties, and exercise such 
        other powers, relating to transportation security as 
        the Under Secretary considers appropriate, to the 
        extent authorized by law.
  (g) National Emergency Responsibilities.--
          (1) In general.--Subject to the direction and control 
        of the Secretary, the Under Secretary, during a 
        national emergency, shall have the following 
        responsibilities:
                  (A) To coordinate domestic transportation, 
                including aviation, rail, and other surface 
                transportation, and maritime transportation 
                (including port security).
                  (B) To coordinate and oversee the 
                transportation-related responsibilities of 
                other departments and agencies of the Federal 
                Government other than the Department of Defense 
                and the military departments.
                  (C) To coordinate and provide notice to other 
                departments and agencies of the Federal 
                Government, and appropriate agencies of State 
                and local governments, including departments 
                and agencies for transportation, law 
                enforcement, and border control, about threats 
                to transportation.
                  (D) To carry out such other duties, and 
                exercise such other powers, relating to 
                transportation during a national emergency as 
                the Secretary shall prescribe.
          (2) Authority of other departments and agencies.--The 
        authority of the Under Secretary under this subsection 
        shall not supersede the authority of any other 
        department or agency of the Federal Government under 
        law with respect to transportation or transportation-
        related matters, whether or not during a national 
        emergency.
          (3) Circumstances.--The Secretary shall prescribe the 
        circumstances constituting a national emergency for 
        purposes of this subsection.
  (h) Management of Security Information.--In consultation with 
the Transportation Security Oversight Board, the Under 
Secretary shall--
          (1) enter into memoranda of understanding with 
        Federal agencies or other entities to share or 
        otherwise cross-check as necessary data on individuals 
        identified on Federal agency databases who may pose a 
        risk to transportation or national security;
          (2) establish procedures for notifying the 
        Administrator of the Federal Aviation Administration, 
        appropriate State and local law enforcement officials, 
        and airport or airline security officers of the 
        identity of individuals known to pose, or suspected of 
        posing, a risk of air piracy or terrorism or a threat 
        to airline or passenger safety;
          (3) in consultation with other appropriate Federal 
        agencies and air carriers, establish policies and 
        procedures requiring air carriers--
                  (A) to use information from government 
                agencies to identify individuals on passenger 
                lists who may be a threat to civil aviation or 
                national security; and
                  (B) if such an individual is identified, 
                notify appropriate law enforcement agencies, 
                prevent the individual from boarding an 
                aircraft, or take other appropriate action with 
                respect to that individual; and
          (4) consider requiring passenger air carriers to 
        share passenger lists with appropriate Federal agencies 
        for the purpose of identifying individuals who may pose 
        a threat to aviation safety or national security.
  (i) View of NTSB.--In taking any action under this section 
that could affect safety, the Under Secretary shall give great 
weight to the timely views of the National Transportation 
Safety Board.
  (j) Acquisitions.--
          (1) In general.--The Under Secretary is authorized--
                  (A) to acquire (by purchase, lease, 
                condemnation, or otherwise) such real property, 
                or any interest therein, within and outside the 
                continental United States, as the Under 
                Secretary considers necessary;
                  (B) to acquire (by purchase, lease, 
                condemnation, or otherwise) and to construct, 
                repair, operate, and maintain such personal 
                property (including office space and patents), 
                or any interest therein, within and outside the 
                continental United States, as the Under 
                Secretary considers necessary;
                  (C) to lease to others such real and personal 
                property and to provide by contract or 
                otherwise for necessary facilities for the 
                welfare of its employees and to acquire, 
                maintain, and operate equipment for these 
                facilities;
                  (D) to acquire services, including such 
                personal services as the Secretary determines 
                necessary, and to acquire (by purchase, lease, 
                condemnation, or otherwise) and to construct, 
                repair, operate, and maintain research and 
                testing sites and facilities; and
                  (E) in cooperation with the Administrator of 
                the Federal Aviation Administration, to utilize 
                the research and development facilities of the 
                Federal Aviation Administration.
          (2) Title.--Title to any property or interest therein 
        acquired pursuant to this subsection shall be held by 
        the Government of the United States.
  (k) Transfers of Funds.--The Under Secretary is authorized to 
accept transfers of unobligated balances and unexpended 
balances of funds appropriated to other Federal agencies (as 
such term is defined in section 551(1) of title 5) to carry out 
functions transferred, on or after the date of enactment of the 
Aviation and Transportation Security Act, by law to the Under 
Secretary.
  (l) Regulations.--
          (1) In general.--The Under Secretary is authorized to 
        issue, rescind, and revise such regulations as are 
        necessary to carry out the functions of the 
        Administration.
          (2) Emergency procedures.--
                  (A) In general.--Notwithstanding any other 
                provision of law or executive order (including 
                an executive order requiring a cost-benefit 
                analysis), if the Under Secretary determines 
                that a regulation or security directive must be 
                issued immediately in order to protect 
                transportation security, the Under Secretary 
                shall issue the regulation or security 
                directive without providing notice or an 
                opportunity for comment and without prior 
                approval of the Secretary.
                  (B) Review by Transportation Security 
                Oversight Board.--Any regulation or security 
                directive issued under this paragraph shall be 
                subject to review by the Transportation 
                Security Oversight Board established under 
                section 115. Any regulation or security 
                directive issued under this paragraph shall 
                remain effective for a period not to exceed 90 
                days unless ratified or disapproved by the 
                Board or rescinded by the Under Secretary.
          (3) Factors to consider.--In determining whether to 
        issue, rescind, or revise a regulation under this 
        section, the Under Secretary shall consider, as a 
        factor in the final determination, whether the costs of 
        the regulation are excessive in relation to the 
        enhancement of security the regulation will provide. 
        The Under Secretary may waive requirements for an 
        analysis that estimates the number of lives that will 
        be saved by the regulation and the monetary value of 
        such lives if the Under Secretary determines that it is 
        not feasible to make such an estimate.
          (4) Airworthiness objections by faa.--
                  (A) In general.--The Under Secretary shall 
                not take an aviation security action under this 
                title if the Administrator of the Federal 
                Aviation Administration notifies the Under 
                Secretary that the action could adversely 
                affect the airworthiness of an aircraft.
                  (B) Review by Secretary.--Notwithstanding 
                subparagraph (A), the Under Secretary may take 
                such an action, after receiving a notification 
                concerning the action from the Administrator 
                under subparagraph (A), if the Secretary of 
                Transportation subsequently approves the 
                action.
  (m) Personnel and Services; Cooperation by Under Secretary.--
          (1) Authority of under secretary.--In carrying out 
        the functions of the Administration, the Under 
        Secretary shall have the same authority as is provided 
        to the Administrator of the Federal Aviation 
        Administration under subsections (l) and (m) of section 
        106.
          (2) Authority of agency heads.--The head of a Federal 
        agency shall have the same authority to provide 
        services, supplies, equipment, personnel, and 
        facilities to the Under Secretary as the head has to 
        provide services, supplies, equipment, personnel, and 
        facilities to the Administrator of the Federal Aviation 
        Administration under section 106(m).
  (n) Personnel Management System.--The personnel management 
system established by the Administrator of the Federal Aviation 
Administration under section 40122 shall apply to employees of 
the Transportation Security Administration, or, subject to the 
requirements of such section, the Under Secretary may make such 
modifications to the personnel management system with respect 
to such employees as the Under Secretary considers appropriate, 
such as adopting aspects of other personnel systems of the 
Department of Transportation.
  (o) Acquisition Management System.--The acquisition 
management system established by the Administrator of the 
Federal Aviation Administration under section 40110 shall apply 
to acquisitions of equipment, supplies, and materials by the 
Transportation Security Administration, or, subject to the 
requirements of such section, the Under Secretary may make such 
modifications to the acquisition management system with respect 
to such acquisitions of equipment, supplies, and materials as 
the Under Secretary considers appropriate, such as adopting 
aspects of other acquisition management systems of the 
Department of Transportation.
  (p) Authority of Inspector General.--The Transportation 
Security Administration shall be subject to the Inspector 
General Act of 1978 (5 U.S.C. App.) and other laws relating to 
the authority of the Inspector General of the Department of 
Transportation.
  (q) Law Enforcement Powers.--
          (1) In general.--The Under Secretary may designate an 
        employee of the Transportation Security Administration 
        or other Federal agency to serve as a law enforcement 
        officer.
          (2) Powers.--While engaged in official duties of the 
        Administration as required to fulfill the 
        responsibilities under this section, a law enforcement 
        officer designated under paragraph (1) may--
                  (A) carry a firearm;
                  (B) make an arrest without a warrant for any 
                offense against the United States committed in 
                the presence of the officer, or for any felony 
                cognizable under the laws of the United States 
                if the officer has probable cause to believe 
                that the person to be arrested has committed or 
                is committing the felony; and
                  (C) seek and execute warrants for arrest or 
                seizure of evidence issued under the authority 
                of the United States upon probable cause that a 
                violation has been committed.
          (3) Guidelines on exercise of authority.--The 
        authority provided by this subsection shall be 
        exercised in accordance with guidelines prescribed by 
        the Under Secretary, in consultation with the Attorney 
        General of the United States, and shall include 
        adherence to the Attorney General's policy on use of 
        deadly force.
          (4) Revocation or suspension of authority.--The 
        powers authorized by this subsection may be rescinded 
        or suspended should the Attorney General determine that 
        the Under Secretary has not complied with the 
        guidelines prescribed in paragraph (3) and conveys the 
        determination in writing to the Secretary of 
        Transportation and the Under Secretary.
  (r) Authority to Exempt.--The Under Secretary may grant an 
exemption from a regulation prescribed in carrying out this 
section if the Under Secretary determines that the exemption is 
in the public interest.
  (s) Nondisclosure of Security Activities.--
          (1) In general.--Notwithstanding section 552 of title 
        5, the Under Secretary shall prescribe regulations 
        prohibiting the disclosure of information obtained or 
        developed in carrying out security under authority of 
        the Aviation and Transportation Security Act (Public 
        Law 107-71) or under chapter 449 of this title if the 
        Under Secretary decides that disclosing the information 
        would--
                  (A) be an unwarranted invasion of personal 
                privacy;
                  (B) reveal a trade secret or privileged or 
                confidential commercial or financial 
                information; or
                  (C) be detrimental to the security of 
                transportation.
          (2) Availability of information to Congress.--
        Paragraph (1) does not authorize information to be 
        withheld from a committee of Congress authorized to 
        have the information.
          (3) Limitation on transferability of duties.--Except 
        as otherwise provided by law, the Under Secretary may 
        not transfer a duty or power under this subsection to 
        another department, agency, or instrumentality of the 
        United States.
  (t) Transportation Security Strategic Planning.--
          (1) In general.--The Secretary of Homeland Security 
        shall develop, prepare, implement, and update, as 
        needed--
                  (A) a National Strategy for Transportation 
                Security; and
                  (B) transportation modal security plans.
          (2) Role of Secretary of Transportation.--The 
        Secretary of Homeland Security shall work jointly with 
        the Secretary of Transportation in developing, 
        revising, and updating the documents required by 
        paragraph (1).
          (3) Contents of national strategy for transportation 
        security.--The National Strategy for Transportation 
        Security shall include the following:
                  (A) An identification and evaluation of the 
                transportation assets in the United States 
                that, in the interests of national security and 
                commerce, must be protected from attack or 
                disruption by terrorist or other hostile 
                forces, including modal security plans for 
                aviation, bridge and tunnel, commuter rail and 
                ferry, highway, maritime, pipeline, rail, mass 
                transit, over-the-road bus, and other public 
                transportation infrastructure assets that could 
                be at risk of such an attack or disruption.
                  (B) The development of risk-based priorities 
                across all transportation modes and realistic 
                deadlines for addressing security needs 
                associated with those assets referred to in 
                subparagraph (A).
                  (C) The most appropriate, practical, and 
                cost-effective means of defending those assets 
                against threats to their security.
                  (D) A forward-looking strategic plan that 
                sets forth the agreed upon roles and missions 
                of Federal, State, regional, and local 
                authorities and establishes mechanisms for 
                encouraging private sector cooperation and 
                participation in the implementation of such 
                plan.
                  (E) A comprehensive delineation of response 
                and recovery responsibilities and issues 
                regarding threatened and executed acts of 
                terrorism within the United States.
                  (F) A prioritization of research and 
                development objectives that support 
                transportation security needs, giving a higher 
                priority to research and development directed 
                toward protecting vital transportation assets.
          (4) Submissions of plans to congress.--
                  (A) Initial strategy.--The Secretary of 
                Homeland Security shall submit the National 
                Strategy for Transportation Security, including 
                the transportation modal security plans, 
                developed under this subsection to the 
                appropriate congressional committees not later 
                than April 1, 2005.
                  (B) Subsequent versions.--After December 31, 
                2005, the Secretary of Homeland Security shall 
                submit the National Strategy for Transportation 
                Security, including the transportation modal 
                security plans and any revisions to the 
                National Strategy for Transportation Security 
                and the transportation modal security plans, to 
                appropriate congressional committees not less 
                frequently than April 1 of each even-numbered 
                year.
                  (C) Periodic progress report.--
                          (i) Requirement for report.--Each 
                        year, in conjunction with the 
                        submission of the budget to Congress 
                        under section 1105(a) of title 31, 
                        United States Code, the Secretary of 
                        Homeland Security shall submit to the 
                        appropriate congressional committees an 
                        assessment of the progress made on 
                        implementing the National Strategy for 
                        Transportation Security.
                          (ii) Content.--Each progress report 
                        under this subparagraph shall include, 
                        at a minimum, recommendations for 
                        improving and implementing the National 
                        Strategy for Transportation Security 
                        and the transportation modal security 
                        plans that the Secretary, in 
                        consultation with the Secretary of 
                        Transportation, considers appropriate.
                  (D) Classified material.--Any part of the 
                National Strategy for Transportation Security 
                or the transportation modal security plans that 
                involve information that is properly classified 
                under criteria established by Executive order 
                shall be submitted to the appropriate 
                congressional committees separately in a 
                classified format.
                  (E) Appropriate congressional committees 
                defined.--In this subsection, the term 
                ``appropriate congressional committees'' means 
                the Committee on Transportation and 
                Infrastructure and the Select Committee on 
                Homeland Security of the House of 
                Representatives and the Committee on Commerce, 
                Science, and Transportation and the Committee 
                on Homeland Security and Governmental Affairs 
                of the Senate.
          (5) Priority status.--
                  (A) In general.--The National Strategy for 
                Transportation Security shall be the governing 
                document for Federal transportation security 
                efforts.
                  (B) Other plans and reports.--The National 
                Strategy for Transportation Security shall 
                include, as an integral part or as an 
                appendix--
                          (i) the current National Maritime 
                        Transportation Security Plan under 
                        section 70103 of title 46;
                          (ii) the report required by section 
                        44938 of this title;
                          (iii) transportation modal security 
                        plans required under this section; and
                          (iv) any other transportation 
                        security plan or report that the 
                        Secretary of Homeland Security 
                        determines appropriate for inclusion.
  (u) Authorization of Appropriations.--There are authorized to 
be appropriated to the Secretary of Homeland Security for rail 
security--
          (1) $205,000,000 for fiscal year 2008;
          (2) $166,000,000 for fiscal year 2009; and
          (3) $166,000,000 for fiscal year 2010.
  (v) Enforcement of Regulations and Orders of the Secretary of 
Homeland Security Issued under this Title.--
          (1) Application of subsection.--
                  (A) In general.--This subsection applies to 
                the enforcement of regulations prescribed, and 
                orders issued, by the Secretary of Homeland 
                Security under a provision of this title other 
                than a provision of chapter 449.
                  (B) Violations of chapter 449.--The penalties 
                for violations of regulations prescribed, and 
                orders issued, by the Secretary of Homeland 
                Security under chapter 449 of this title are 
                provided under chapter 463 of this title.
                  (C) Nonapplication to certain violations.--
                          (i) Paragraphs (2) through (5) of 
                        this subsection do not apply to 
                        violations of regulations prescribed, 
                        and orders issued, by the Secretary of 
                        Homeland Security under a provision of 
                        this title--
                                  (I) involving the 
                                transportation of personnel or 
                                shipments of materials by 
                                contractors where the 
                                Department of Defense has 
                                assumed control and 
                                responsibility;
                                  (II) by a member of the armed 
                                forces of the United States 
                                when performing official 
                                duties; or
                                  (III) by a civilian employee 
                                of the Department of Defense 
                                when performing official 
                                duties.
                          (ii) Violations described in 
                        subclause (I), (II), or (III) of clause 
                        (i) shall be subject to penalties as 
                        determined by the Secretary of Defense 
                        or the Secretary's designee.
          (2) Civil penalty.--
                  (A) In general.--A person is liable to the 
                United States Government for a civil penalty of 
                not more than $10,000 for a violation of a 
                regulation prescribed, or order issued, by the 
                Secretary of Homeland Security under this 
                title.
                  (B) Repeat violations.--A separate violation 
                occurs under this paragraph for each day the 
                violation continues.
          (3) Administrative imposition of civil penalties.--
                  (A) In general.--The Secretary of Homeland 
                Security may impose a civil penalty for a 
                violation of a regulation prescribed, or order 
                issued, under this title. The Secretary shall 
                give written notice of the finding of a 
                violation and the penalty.
                  (B) Scope of civil action.--In a civil action 
                to collect a civil penalty imposed by the 
                Secretary under this subsection, the court may 
                not re-examine issues of liability or the 
                amount of the penalty.
                  (C) Jurisdiction.--The district courts of the 
                United States have exclusive jurisdiction of 
                civil actions to collect a civil penalty 
                imposed by the Secretary under this subsection 
                if--
                          (i) the amount in controversy is more 
                        than--
                                  (I) $400,000, if the 
                                violation was committed by a 
                                person other than an individual 
                                or small business concern; or
                                  (II) $50,000, if the 
                                violation was committed by an 
                                individual or small business 
                                concern;
                          (ii) the action is in rem or another 
                        action in rem based on the same 
                        violation has been brought; or
                          (iii) another action has been brought 
                        for an injunction based on the same 
                        violation.
                  (D) Maximum penalty.--The maximum penalty the 
                Secretary may impose under this paragraph is--
                          (i) $400,000, if the violation was 
                        committed by a person other than an 
                        individual or small business concern; 
                        or
                          (ii) $50,000, if the violation was 
                        committed by an individual or small 
                        business concern.
          (4) Compromise and setoff.--
                  (A) The Secretary may compromise the amount 
                of a civil penalty imposed under this 
                subsection. If the Secretary compromises the 
                amount of a civil penalty under this 
                subparagraph, the Secretary shall--
                          (i) notify the Senate Committee on 
                        Commerce, Science, and Transportation 
                        and the House of Representatives 
                        Committee on Homeland Security of the 
                        compromised penalty and explain the 
                        rationale therefor; and
                          (ii) make the explanation available 
                        to the public to the extent feasible 
                        without compromising security.
                  (B) The Government may deduct the amount of a 
                civil penalty imposed or compromised under this 
                subsection from amounts it owes the person 
                liable for the penalty.
          (5) Investigations and proceedings.--Chapter 461 of 
        this title shall apply to investigations and 
        proceedings brought under this subsection to the same 
        extent that it applies to investigations and 
        proceedings brought with respect to aviation security 
        duties designated to be carried out by the Secretary.
          (6) Definitions.--In this subsection:
                  (A) Person.--The term ``person'' does not 
                include--
                          (i) the United States Postal Service; 
                        or
                          (ii) the Department of Defense.
                  (B) Small business concern.--The term ``small 
                business concern'' has the meaning given that 
                term in section 3 of the Small Business Act (15 
                U.S.C. 632).

                        TITLE 49. TRANSPORTATION

             SUBTITLE III. GENERAL AND INTERMODAL PROGRAMS

            CHAPTER 51. TRANSPORTATION OF HAZARDOUS MATERIAL

Sec. 5103a. Limitation on issuance of hazmat licenses

  (a) Limitation.--
          (1) Issuance of licenses.--A State may not issue to 
        any individual a license to operate a motor vehicle 
        transporting in commerce a hazardous material unless 
        the Secretary of Homeland Security has first 
        determined, upon receipt of a notification under 
        subsection (d)(1)(B), that the individual does not pose 
        a security risk warranting denial of the license.
          (2) Renewals included.--For the purposes of this 
        section, the term ``issue'', with respect to a license, 
        includes renewal of the license.
  (b) Hazardous Materials Described.--The limitation in 
subsection (a) shall apply with respect to any material defined 
as hazardous material by the Secretary for which the Secretary 
requires placarding of a commercial motor vehicle transporting 
that material in commerce.
  (c) Recommendations on Chemical and Biological Materials.--
The Secretary of Health and Human Services shall recommend to 
the Secretary of Transportation any chemical or biological 
material or agent for regulation as a hazardous material under 
section 5103(a) if the Secretary of Health and Human Services 
determines that such material or agent poses a significant risk 
to the health of individuals.
  (d) Background Records Check--
          (1) In general.--Upon the request of a State 
        regarding issuance of a license described in subsection 
        (a)(1) to an individual, the Attorney General--
                  (A) shall carry out a background records 
                check regarding the individual; and
                  (B) upon completing the background records 
                check, shall notify the Secretary of Homeland 
                Security of the completion and results of the 
                background records check.
          (2) Scope.--A background records check regarding an 
        individual under this subsection shall consist of the 
        following:
                  (A) A check of the relevant criminal history 
                data bases.
                  (B) In the case of an alien, a check of the 
                relevant data bases to determine the status of 
                the alien under the immigration laws of the 
                United States.
                  (C) As appropriate, a check of the relevant 
                international data bases through Interpol-U.S. 
                National Central Bureau or other appropriate 
                means.
  (e) Reporting Requirement.--Each State shall submit to the 
Secretary of Homeland Security, at such time and in such manner 
as the Secretary of Homeland Security may prescribe, the name, 
address, and such other information as the Secretary of 
Homeland Security may require, concerning--
          (1) each alien to whom the State issues a license 
        described in subsection (a); and
          (2) each other individual to whom such a license is 
        issued, as the Secretary of Homeland Security may 
        require.
  (f) Alien Defined.--In this section, the term ``alien'' has 
the meaning given the term in section 101(a)(3) of the 
Immigration and Nationality Act.
  (g) Background Checks for Drivers Hauling Hazardous 
Materials.--
          (1) In general.--
                  (A) Employer notification.--Not later than 90 
                days after the date of enactment of this 
                subsection, the Director of the Transportation 
                Security Administration, after receiving 
                comments from interested parties, shall develop 
                and implement a process for notifying hazmat 
                employers designated by an applicant of the 
                results of the applicant's background record 
                check, if--
                          (i) such notification is appropriate 
                        considering the potential security 
                        implications; and
                          (ii) the Director, in a final 
                        notification of threat assessment, 
                        served on the applicant determines that 
                        the applicant does not meet the 
                        standards set forth in regulations 
                        issued to carry out this section.
                  (B) Relationship to other background records 
                checks.--
                          (i) Elimination of redundant 
                        checks.--An individual with respect to 
                        whom the Transportation Security 
                        Administration--
                                  (I) has performed a security 
                                threat assessment under this 
                                section; and
                                  (II) has issued a final 
                                notification of no security 
                                threat,
                        is deemed to have met the requirements 
                        of any other background check that is 
                        required for purposes of any Federal 
                        law applicable to transportation 
                        workers if that background check is 
                        equivalent to, or less stringent than, 
                        the background check required under 
                        this section.
                          (ii) Determination by Director.--Not 
                        later than 60 days after the date of 
                        issuance of the report under paragraph 
                        (5), but no later than 120 days after 
                        the date of enactment of this Act, the 
                        Director shall initiate a rulemaking 
                        proceeding, including notice and 
                        opportunity for comment, to determine 
                        which background checks required for 
                        purposes of Federal laws applicable to 
                        transportation workers are equivalent 
                        to, or less stringent than, those 
                        required under this section.
                          (iii) Future rulemakings.--The 
                        Director shall make a determination 
                        under the criteria established under 
                        clause (ii) with respect to any 
                        rulemaking proceeding to establish or 
                        modify required background checks for 
                        transportation workers initiated after 
                        the date of enactment of this 
                        subsection.
          (2) Appeals process for more stringent state 
        procedures.--If a State establishes its own standards 
        for applicants for a hazardous materials endorsement to 
        a commercial driver's license, the State shall also 
        provide--
                  (A) an appeals process similar to and to the 
                same extent as the process provided under part 
                1572 of title 49, Code of Federal Regulations, 
                by which an applicant denied a hazardous 
                materials endorsement to a commercial driver's 
                license by that State may appeal that denial; 
                and
                  (B) a waiver process similar to and to the 
                same extent as the process provided under part 
                1572 of title 49, Code of Federal Regulations, 
                by which an applicant denied a hazardous 
                materials endorsement to a commercial driver's 
                license by that State may apply for a waiver.
          (3) Clarification of term defined in regulations.--
        The term ``transportation security incident'', as 
        defined in part 1572 of title 49, Code of Federal 
        Regulations, does not include a work stoppage or other 
        nonviolent employee-related action resulting from an 
        employer-employee dispute. Not later than 30 days after 
        the date of enactment of this subsection, the Director 
        shall modify the definition of that term to reflect the 
        preceding sentence.
          (4) Background check capacity.--Not later than 
        October 1, 2005, the Director shall transmit to the 
        Committee on Commerce, Science, and Transportation of 
        the Senate and the Committees on Transportation and 
        Infrastructure and Homeland Security of the House of 
        Representatives a report on the implementation of 
        fingerprint-based security threat assessments and the 
        adequacy of fingerprinting locations, personnel, and 
        resources to accomplish the timely processing of 
        fingerprint-based security threat assessments for 
        individuals holding commercial driver's licenses who 
        are applying to renew hazardous materials endorsements.
          (5) Report.--
                  (A) In general.--Not later than 60 days after 
                the date of enactment of this subsection, the 
                Director shall transmit to the committees 
                referred to in paragraph (4) a report on the 
                Director's plans to reduce or eliminate 
                redundant background checks for holders of 
                hazardous materials endorsements performed 
                under this section.
                  (B) Contents.--The report shall--
                          (i) include a list of background 
                        checks and other security or threat 
                        assessment requirements applicable to 
                        transportation workers under Federal 
                        laws for which the Department of 
                        Homeland Security is responsible and 
                        the process by which the Secretary of 
                        Homeland Security will determine 
                        whether such checks or assessments are 
                        equivalent to, or less stringent than, 
                        the background check performed under 
                        this section; and
                          (ii) provide an analysis of how the 
                        Director plans to reduce or eliminate 
                        redundant background checks in a manner 
                        that will continue to ensure the 
                        highest level of safety and security.
  (h) Relationship to Transportation Security Cards.--Upon 
application, a State shall issue to an individual a license to 
operate a motor vehicle transporting in commerce a hazardous 
material without the security assessment required by this 
section, provided the individual meets all other applicable 
requirements for such a license, if the Secretary of Homeland 
Security has previously determined, under section 70105 of 
title 46, United States Code, that the individual does not pose 
a security risk.
  [(h)] (i) Commercial Motor Vehicle Operators Registered to 
Operate in Mexico or Canada.--
          (1) In general.--Beginning on the date that is 6 
        months after the date of enactment of this subsection, 
        a commercial motor vehicle operator registered to 
        operate in Mexico or Canada shall not operate a 
        commercial motor vehicle transporting a hazardous 
        material in commerce in the United States until the 
        operator has undergone a background records check 
        similar to the background records check required for 
        commercial motor vehicle operators licensed in the 
        United States to transport hazardous materials in 
        commerce.
          (2) Extension.--The Director of the Transportation 
        Security Administration may extend the deadline 
        established by paragraph (1) for a period not to exceed 
        6 months if the Director determines that such an 
        extension is necessary.
          (3) Commercial motor vehicle defined.--In this 
        subsection, the term ``commercial motor vehicle'' has 
        the meaning given that term by section 31101.

                       SUBTITLE V--RAIL PROGRAMS

                             PART A--SAFETY

                          CHAPTER 201. GENERAL

                         SUBCHAPTER I. GENERAL

Sec. 20103. General authority

  (a) Regulations and Orders.--The Secretary of Transportation, 
as necessary, shall prescribe regulations and issue orders for 
every area of railroad [safety] safety, including security, 
supplementing laws and regulations in effect on October 16, 
1970. When prescribing a security regulation or issuing a 
security order that affects the safety of railroad operations, 
the Secretary of Homeland Security shall consult with the 
Secretary.
  (b) Regulations of Practice for Proceedings.--The Secretary 
shall prescribe regulations of practice applicable to each 
proceeding under this chapter. The regulations shall reflect 
the varying nature of the proceedings and include time limits 
for disposition of the proceedings. The time limit for 
disposition of a proceeding may not be more than 12 months 
after the date it begins.
  (c) Consideration of Information and Standards.--In 
prescribing regulations and issuing orders under this section, 
the Secretary shall consider existing relevant safety 
information and standards.
  (d) Waivers.--The Secretary may waive compliance with any 
part of a regulation prescribed or order issued under this 
chapter if the waiver is in the public interest and consistent 
with railroad safety. The Secretary shall make public the 
reasons for granting the waiver.
  (e) Hearings.--The Secretary shall conduct a hearing as 
provided by section 553 of title 5 when prescribing a 
regulation or issuing an order under this chapter, including a 
regulation or order establishing, amending, or waiving 
compliance with a railroad safety regulation prescribed or 
order issued under this chapter. An opportunity for an oral 
presentation shall be provided.
  (f) Tourist Railroad Carriers.--In prescribing regulations 
that pertain to railroad safety that affect tourist, historic, 
scenic, or excursion railroad carriers, the Secretary of 
Transportation shall take into consideration any financial, 
operational, or other factors that may be unique to such 
railroad carriers. The Secretary shall submit a report to 
Congress not later than September 30, 1995, on actions taken 
under this subsection.

``Sec. 20118. Whistleblower protection for rail security matters

  (a) Discrimination Against Employee.--A railroad carrier 
engaged in interstate or foreign commerce may not discharge or 
in any way discriminate against an employee because the 
employee, whether acting for the employee or as a 
representative, has--
          (1) provided, caused to be provided, or is about to 
        provide or cause to be provided, to the employer or the 
        Federal Government information relating to a reasonably 
        perceived threat, in good faith, to security; or
          (2) provided, caused to be provided, or is about to 
        provide or cause to be provided, testimony before 
        Congress or at any Federal or State proceeding 
        regarding a reasonably perceived threat, in good faith, 
        to security; or
          (3) refused to violate or assist in the violation of 
        any law, rule or regulation related to rail security.
  (b) Dispute Resolution.--A dispute, grievance, or claim 
arising under this section is subject to resolution under 
section 3 of the Railway Labor Act (45 U.S.C. 153). In a 
proceeding by the National Railroad Adjustment Board, a 
division or delegate of the Board, or another board of 
adjustment established under section 3 to resolve the dispute, 
grievance, or claim the proceeding shall be expedited and the 
dispute, grievance, or claim shall be resolved not later than 
180 days after it is filed. If the violation is a form of 
discrimination that does not involve discharge, suspension, or 
another action affecting pay, and no other remedy is available 
under this subsection, the Board, division, delegate, or other 
board of adjustment may award the employee reasonable damages, 
including punitive damages, of not more than $20,000.
  (c) Procedural Requirements.--Except as provided in 
subsection (b), the procedure set forth in section 
42121(b)(2)(B) of this subtitle, including the burdens of 
proof, applies to any complaint brought under this section.
  (d) Election of Remedies.--An employee of a railroad carrier 
may not seek protection under both this section and another 
provision of law for the same allegedly unlawful act of the 
carrier.
  (e) Disclosure of Identity.--
          (1) Except as provided in paragraph (2) of this 
        subsection, or with the written consent of the 
        employee, the Secretary of Transportation or Secretary 
        of Homeland Security may not disclose the name of an 
        employee of a railroad carrier who has provided 
        information about an alleged violation of this section.
          (2) The Secretary shall disclose to the Attorney 
        General the name of an employee described in paragraph 
        (1) of this subsection if the matter is referred to the 
        Attorney General for enforcement.

``Sec. 24316. Plans to address needs of families of passengers involved 
                    in rail passenger accidents

  (a) Submission of Plan.--Not later than 6 months after the 
date of the enactment of the Surface Transportation and Rail 
Security Act of 2007, Amtrak shall submit to the Chairman of 
the National Transportation Safety Board, the Secretary of 
Transportation, and the Secretary of Homeland Security a plan 
for addressing the needs of the families of passengers involved 
in any rail passenger accident involving an Amtrak intercity 
train and resulting in a loss of life.
  (b) Contents of Plans.--The plan to be submitted by Amtrak 
under subsection (a) shall include, at a minimum, the 
following:
          (1) A process by which Amtrak will maintain and 
        provide to the National Transportation Safety Board, 
        the Secretary of Transportation, and the Secretary of 
        Homeland Security, immediately upon request, a list 
        (which is based on the best available information at 
        the time of the request) of the names of the passengers 
        aboard the train (whether or not such names have been 
        verified), and will periodically update the list. The 
        plan shall include a procedure, with respect to 
        unreserved trains and passengers not holding 
        reservations on other trains, for Amtrak to use 
        reasonable efforts to ascertain the number and names of 
        passengers aboard a train involved in an accident.
          (2) A plan for creating and publicizing a reliable, 
        toll-free telephone number within 4 hours after such an 
        accident occurs, and for providing staff, to handle 
        calls from the families of the passengers.
          (3) A process for notifying the families of the 
        passengers, before providing any public notice of the 
        names of the passengers, by suitably trained 
        individuals.
          (4) A process for providing the notice described in 
        paragraph (2) to the family of a passenger as soon as 
        Amtrak has verified that the passenger was aboard the 
        train (whether or not the names of all of the 
        passengers have been verified).
          (5) A process by which the family of each passenger 
        will be consulted about the disposition of all remains 
        and personal effects of the passenger within Amtrak's 
        control; that any possession of the passenger within 
        Amtrak's control will be returned to the family unless 
        the possession is needed for the accident investigation 
        or any criminal investigation; and that any unclaimed 
        possession of a passenger within Amtrak's control will 
        be retained by the rail passenger carrier for at least 
        18 months.
          (6) A process by which the treatment of the families 
        of nonrevenue passengers will be the same as the 
        treatment of the families of revenue passengers.
          (7) An assurance that Amtrak will provide adequate 
        training to its employees and agents to meet the needs 
        of survivors and family members following an accident.
  (c) Use of Information.--Neither National Transportation 
Safety Board, the Secretary of Transportation, the Secretary of 
Homeland Security, nor Amtrak may release any personal 
information on a list obtained under subsection (b)(1) but may 
provide information on the list about a passenger to the family 
of the passenger to the extent that the Board or Amtrak 
considers appropriate.
  (d) Limitation on Liability.--Amtrak shall not be liable for 
damages in any action brought in a Federal or State court 
arising out of the performance of Amtrak under this section in 
preparing or providing a passenger list, or in providing 
information concerning a train reservation, pursuant to a plan 
submitted by Amtrak under subsection (b), unless such liability 
was caused by Amtrak's conduct.
  (e) Limitation on Statutory Construction.--Nothing in this 
section may be construed as limiting the actions that Amtrak 
may take, or the obligations that Amtrak may have, in providing 
assistance to the families of passengers involved in a rail 
passenger accident.
  (f) Funding.--Out of funds appropriated pursuant to section 
116(b) of the Surface Transportation and Rail Security Act of 
2007, there shall be made available to the Secretary of 
Transportation for the use of Amtrak $500,000 for fiscal year 
2008 to carry out this section. Amounts made available pursuant 
to this subsection shall remain available until expended.

                       SUBTITLE V--RAIL PROGRAMS

                         PART E--MISCELLANEOUS

                      CHAPTER 281. LAW ENFORCEMENT

Sec. 28101. Rail police officers

  (a) In General._Under regulations prescribed by the Secretary 
of Transportation, a rail police officer who is employed by a 
rail carrier and certified or commissioned as a police officer 
under the laws of a State may enforce the laws of any 
jurisdiction in which the rail carrier owns property, to the 
extent of the authority of a police officer certified or 
commissioned under the laws of that jurisdiction, to protect--
          (1) employees, passengers, or patrons of the rail 
        carrier;
          (2) property, equipment, and facilities owned, 
        leased, operated, or maintained by the rail carrier;
          (3) property moving in interstate or foreign commerce 
        in the possession of the rail carrier; and
          (4) personnel, equipment, and material moving by rail 
        that are vital to the national defense.
  (b) Assignment.--A rail police officer employed by a rail 
carrier and certified or commissioned as a police officer under 
the laws of a State may be temporarily assigned to assist a 
second rail carrier in carrying out law enforcement duties upon 
the request of the second rail carrier, at which time the 
police officer shall be considered to be an employee of the 
second rail carrier and shall have authority to enforce the 
laws of any jurisdiction in which the second rail carrier owns 
property to the same extent as provided in subsection (a).

                    SUBTITLE VII--AVIATION PROGRAMS

                    PART A--AIR COMMERCE AND SAFETY

                 SUBPART IV--ENFORCEMENT AND PENALTIES

Sec. 46301. Civil penalties

  (a) General Penalty.--
          (1) A person is liable to the United States 
        Government for a civil penalty of not more than $25,000 
        (or $1,100 if the person is an individual or small 
        business concern) for violating--
                  (A) chapter 401 (except sections 40103(a) and 
                (d), 40105, 40116, and 40117), chapter 411, 
                chapter 413 (except sections 41307 and 
                41310(b)-(f)), chapter 415 (except sections 
                41502, 41505, and 41507-41509), chapter 417 
                (except sections 41703, 41704, 41710, 41713, 
                and 41714), chapter 419, subchapter II or III 
                of chapter 421, chapter 441 (except section 
                44109), 44502(b) or (c), chapter 447 (except 
                sections 44717 and 44719-44723), chapter 449 
                (except sections 44902, 44903(d), 44904, 
                44907(a)-(d)(1)(A) and (d)(1)(C)-(f), and 
                44908), section 47107(b) (including any 
                assurance made under such section), or section 
                47133 of this title;
                  (B) a regulation prescribed or order issued 
                under any provision to which clause (A) of this 
                paragraph applies;
                  (C) any term of a certificate or permit 
                issued under section 41102, 41103, or 41302 of 
                this title; or
                  (D) a regulation of the United States Postal 
                Service under this part.
          (2) A separate violation occurs under this subsection 
        for each day the violation (other than a violation of 
        section 41719) continues or, if applicable, for each 
        flight involving the violation (other than a violation 
        of section 41719).
          (3) Penalty for diversion of aviation revenues.--The 
        amount of a civil penalty assessed under this section 
        for a violation of section 47107(b) of this title (or 
        any assurance made under such section) or section 47133 
        of this title may be increased above the otherwise 
        applicable maximum amount under this section to an 
        amount not to exceed 3 times the amount of revenues 
        that are used in violation of such section.
          (4) Aviation security violations.--Notwithstanding 
        paragraph (1) of this subsection, the maximum civil 
        penalty for violating chapter 449 [or another 
        requirement under this title administered by the Under 
        Secretary of Transportation for Security] shall be 
        $10,000; except that the maximum civil penalty shall be 
        $25,000 in the case of a person operating an aircraft 
        for the transportation of passengers or property for 
        compensation (except an individual serving as an 
        airman).
          (5) Penalties applicable to individuals and small 
        business concerns.--
                  (A) An individual (except an airman serving 
                as an airman) or small business concern is 
                liable to the Government for a civil penalty of 
                not more than $10,000 for violating--
                          (i) chapter 401 (except sections 
                        40103(a) and (d), 40105, 40106(b), 
                        40116, and 40117), section 44502 (b) or 
                        (c), chapter 447 (except sections 
                        44717-44723), or chapter 449 (except 
                        sections 44902, 44903(d), 44904, and 
                        44907-44909) of this title; or
                          (ii) a regulation prescribed or order 
                        issued under any provision to which 
                        clause (i) applies.
                  (B) A civil penalty of not more than $10,000 
                may be imposed for each violation under 
                paragraph (1) committed by an individual or 
                small business concern related to--
                          (i) the transportation of hazardous 
                        material;
                          (ii) the registration or recordation 
                        under chapter 441 of an aircraft not 
                        used to provide air transportation;
                          (iii) a violation of section 
                        44718(d), relating to the limitation on 
                        construction or establishment of 
                        landfills;
                          (iv) a violation of section 44725, 
                        relating to the safe disposal of life-
                        limited aircraft parts; or
                          (v) a violation of section 40127 or 
                        section 41705, relating to 
                        discrimination.
                  (C) Notwithstanding paragraph (1), the 
                maximum civil penalty for a violation of 
                section 41719 committed by an individual or 
                small business concern shall be $5,000 instead 
                of $1,000.
                  (D) Notwithstanding paragraph (1), the 
                maximum civil penalty for a violation of 
                section 41712 (including a regulation 
                prescribed or order issued under such section) 
                or any other regulation prescribed by the 
                Secretary by an individual or small business 
                concern that is intended to afford consumer 
                protection to commercial air transportation 
                passengers shall be $2,500 for each violation.
  (b) Smoke Alarm Device Penalty.--
          (1) A passenger may not tamper with, disable, or 
        destroy a smoke alarm device located in a lavatory on 
        an aircraft providing air transportation or intrastate 
        air transportation.
          (2) An individual violating this subsection is liable 
        to the Government for a civil penalty of not more than 
        $2,000.
  (c) Procedural Requirements.--
          (1) The Secretary of Transportation may impose a 
        civil penalty for the following violations only after 
        notice and an opportunity for a hearing:
                  (A) a violation of subsection (b) of this 
                section or chapter 411, chapter 413 (except 
                sections 41307 and 41310(b)-(f)), chapter 415 
                (except sections 41502, 41505, and 41507-
                41509), chapter 417 (except sections 41703, 
                41704, 41710, 41713, and 41714), chapter 419, 
                subchapter II of chapter 421, or section 44909 
                of this title.
                  (B) a violation of a regulation prescribed or 
                order issued under any provision to which 
                clause (A) of this paragraph applies.
                  (C) a violation of any term of a certificate 
                or permit issued under section 41102, 41103, or 
                41302 of this title.
                  (D) a violation under subsection (a)(1) of 
                this section related to the transportation of 
                hazardous material.
          (2) The Secretary shall give written notice of the 
        finding of a violation and the civil penalty under 
        paragraph (1) of this subsection.
  (d) Administrative Imposition of Penalties.--
          (1) In this subsection--
                  (A) ``flight engineer'' means an individual 
                who holds a flight engineer certificate issued 
                under part 63 of title 14, Code of Federal 
                Regulations.
                  (B) ``mechanic'' means an individual who 
                holds a mechanic certificate issued under part 
                65 of title 14, Code of Federal Regulations.
                  (C) ``pilot'' means an individual who holds a 
                pilot certificate issued under part 61 of title 
                14, Code of Federal Regulations.
                  (D) ``repairman'' means an individual who 
                holds a repairman certificate issued under part 
                65 of title 14, Code of Federal Regulations.
          (2) The Administrator of the Federal Aviation 
        Administration may impose a civil penalty for a 
        violation of chapter 401 (except sections 40103(a) and 
        (d), 40105, 40106(b), 40116, and 40117), chapter 441 
        (except section 44109), section 44502(b) or (c), 
        chapter 447 (except sections 44717 and 44719-44723) or 
        section 46301(b), 46302 (for a violation relating to 
        section 46504), 46318, or 47107(b) (as further defined 
        by the Secretary under section 47107(l) and including 
        any assurance made under section 47107(b)) of this 
        title or a regulation prescribed or order issued under 
        any of those provisions. The Secretary of Homeland 
        Security may impose a civil penalty for a violation of 
        chapter 449 (except sections 44902, 44903(d), 44907(a)-
        (d)(1)(A), 44907(d)(1)(C)-(f), 44908, and 44909 [49 
        USCS Sec. Sec. 44902, 44903(d), 44907(a)-(d)(1)(A), 
        44907(d)(1)(C)-(f), 44908, and 44909]), 46302 (except 
        for a violation relating to section 46504), 46303, or a 
        regulation prescribed or order issued under such 
        chapter 449. The Secretary of Homeland Security or 
        Administrator shall give written notice of the finding 
        of a violation and the penalty.
          (3) In a civil action to collect a civil penalty 
        imposed by the Secretary of Homeland Security or 
        Administrator under this subsection, the issues of 
        liability and the amount of the penalty may not be 
        reexamined.
          (4) Notwithstanding paragraph (2) of this subsection, 
        the district courts of the United States have exclusive 
        jurisdiction of a civil action involving a penalty the 
        Secretary of Homeland Security or Administrator 
        initiates if--
                  (A) the amount in controversy is more than--
                          (i) $50,000 if the violation was 
                        committed by any person before the date 
                        of enactment of the Vision 100--Century 
                        of Aviation Reauthorization Act;
                          (ii) $400,000 if the violation was 
                        committed by a person other than an 
                        individual or small business concern on 
                        or after that date; or
                          (iii) $50,000 if the violation was 
                        committed by an individual or small 
                        business concern on or after that date;
                  (B) the action is in rem or another action in 
                rem based on the same violation has been 
                brought;
                  (C) the action involves an aircraft subject 
                to a lien that has been seized by the 
                Government; or
                  (D) another action has been brought for an 
                injunction based on the same violation.
          (5)(A) The Administrator may issue an order imposing 
        a penalty under this subsection against an individual 
        acting as a pilot, flight engineer, mechanic, or 
        repairman only after advising the individual of the 
        charges or any reason the Administrator relied on for 
        the proposed penalty and providing the individual an 
        opportunity to answer the charges and be heard about 
        why the order shall not be issued.
          (B) An individual acting as a pilot, flight engineer, 
        mechanic, or repairman may appeal an order imposing a 
        penalty under this subsection to the National 
        Transportation Safety Board. After notice and an 
        opportunity for a hearing on the record, the Board 
        shall affirm, modify, or reverse the order. The Board 
        may modify a civil penalty imposed to a suspension or 
        revocation of a certificate.
          (C) When conducting a hearing under this paragraph, 
        the Board is not bound by findings of fact of the 
        Administrator but is bound by all validly adopted 
        interpretations of laws and regulations the 
        Administrator carries out and of written agency policy 
        guidance available to the public related to sanctions 
        to be imposed under this section unless the Board finds 
        an interpretation is arbitrary, capricious, or 
        otherwise not according to law.
          (D) When an individual files an appeal with the Board 
        under this paragraph, the order of the Administrator is 
        stayed.
          (6) An individual substantially affected by an order 
        of the Board under paragraph (5) of this subsection, or 
        the Administrator when the Administrator decides that 
        an order of the Board under paragraph (5) will have a 
        significant adverse impact on carrying out this part, 
        may obtain judicial review of the order under section 
        46110 of this title. The Administrator shall be made a 
        party to the judicial review proceedings. Findings of 
        fact of the Board are conclusive if supported by 
        substantial evidence.
          (7)(A) The Administrator may impose a penalty on a 
        person (except an individual acting as a pilot, flight 
        engineer, mechanic, or repairman) only after notice and 
        an opportunity for a hearing on the record.
          (B) In an appeal from a decision of an administrative 
        law judge as the result of a hearing under subparagraph 
        (A) of this paragraph, the Administrator shall consider 
        only whether--
                  (i) each finding of fact is supported by a 
                preponderance of reliable, probative, and 
                substantial evidence;
                  (ii) each conclusion of law is made according 
                to applicable law, precedent, and public 
                policy; and
                  (iii) the judge committed a prejudicial error 
                that supports the appeal.
          (C) Except for good cause, a civil action involving a 
        penalty under this paragraph may not be initiated later 
        than 2 years after the violation occurs.
          (D) In the case of a violation of section 47107(b) of 
        this title or any assurance made under such section--
                  (i) a civil penalty shall not be assessed 
                against an individual;
                  (ii) a civil penalty may be compromised as 
                provided under subsection (f); and
                  (iii) judicial review of any order assessing 
                a civil penalty may be obtained only pursuant 
                to section 46110 of this title.
          (8) The maximum civil penalty the Under Secretary, 
        Administrator, or Board may impose under this 
        subsection is--
                  (A) $50,000 if the violation was committed by 
                any person before the date of enactment of the 
                Vision 100--Century of Aviation Reauthorization 
                Act;
                  (B) $400,000 if the violation was committed 
                by a person other than an individual or small 
                business concern on or after that date; or
                  (C) $50,000 if the violation was committed by 
                an individual or small business concern on or 
                after that date.
          (9) This subsection applies only to a violation 
        occurring after August 25, 1992.
  (e) Penalty Considerations.--In determining the amount of a 
civil penalty under subsection (a)(3) of this section related 
to transportation of hazardous material, the Secretary shall 
consider--
          (1) the nature, circumstances, extent, and gravity of 
        the violation;
          (2) with respect to the violator, the degree of 
        culpability, any history of prior violations, the 
        ability to pay, and any effect on the ability to 
        continue doing business; and
          (3) other matters that justice requires.
  (f) Compromise and Setoff.--
          (1)(A) The Secretary may compromise the amount of a 
        civil penalty imposed for violating--
                  (i) chapter 401 (except sections 40103(a) and 
                (d), 40105, 40116, and 40117), chapter 441 
                (except section 44109), section 44502(b) or 
                (c), chapter 447 (except 44717 and 44719-
                44723), or chapter 449 (except sections 44902, 
                44903(d), 44904, 44907(a)-(d)(1)(A) and 
                (d)(1)(C)-(f), 44908, and 44909) of this title; 
                or
                  (ii) a regulation prescribed or order issued 
                under any provision to which clause (i) of this 
                subparagraph applies.
          (B) The Postal Service may compromise the amount of a 
        civil penalty imposed under subsection (a)(1)(D) of 
        this section.
          (2) The Government may deduct the amount of a civil 
        penalty imposed or compromised under this subsection 
        from amounts it owes the person liable for the penalty.
  (g) Judicial Review.--An order of the Secretary or the 
Administrator imposing a civil penalty may be reviewed 
judicially only under section 46110 of this title.
  (h) Nonapplication.--
          (1) This section does not apply to the following when 
        performing official duties:
                  (A) a member of the armed forces of the 
                United States.
                  (B) a civilian employee of the Department of 
                Defense subject to the Uniform Code of Military 
                Justice.
          (2) The appropriate military authority is responsible 
        for taking necessary disciplinary action and submitting 
        to the Secretary (or the Under Secretary of 
        Transportation for Security with respect to security 
        duties and powers designated to be carried out by the 
        Under Secretary or the Administrator with respect to 
        aviation safety duties and powers designated to be 
        carried out by the Administrator) a timely report on 
        action taken.
  (i) Small Business Concern Defined.--In this section, the 
term ``small business concern'' has the meaning given that term 
in section 3 of the Small Business Act (15 U.S.C. 632).

                                  
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