[Senate Report 118-270]
[From the U.S. Government Publishing Office]
Calendar No. 673
118th Congress } { Report
SENATE
2d Session } { 118-270
_______________________________________________________________________
VESSEL TRACKING FOR SANCTIONS ENFORCEMENT ACT
__________
R E P O R T
of the
COMMITTEE ON HOMELAND SECURITY AND
GOVERNMENTAL AFFAIRS
UNITED STATES SENATE
to accompany
S. 2248
TO REQUIRE A PILOT PROGRAM ON THE USE OF BIG DATA
ANALYTICS TO IDENTIFY VESSELS EVADING SANCTIONS AND
EXPORT CONTROLS AND TO REQUIRE A REPORT ON THE
AVAILABILITY IN THE UNITED STATES OF EMERGING AND
FOUNDATIONAL TECHNOLOGIES SUBJECT TO EXPORT CONTROLS
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
December 9, 2024.--Ordered to be printed
_______
U.S. GOVERNMENT PUBLISHING OFFICE
59-010 WASHINGTON : 2025
COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS
GARY C. PETERS, Michigan, Chairman
THOMAS R. CARPER, Delaware RAND PAUL, Kentucky
MAGGIE HASSAN, New Hampshire RON JOHNSON, Wisconsin
KYRSTEN SINEMA, Arizona JAMES LANKFORD, Oklahoma
JACKY ROSEN, Nevada MITT ROMNEY, Utah
JON OSSOFF, Georgia RICK SCOTT, Florida
RICHARD BLUMENTHAL, Connecticut JOSH HAWLEY, Missouri
LAPHONZA R. BUTLER, California ROGER MARSHALL, Kansas
David M. Weinberg, Staff Director
Alan S. Kahn, Chief Counsel
Christopher J. Mulkins, Director of Homeland Security
Katie A. Conley, Senior Professional Staff Member
William E. Henderson III, Minority Staff Director
Christina N. Salazar, Minority Chief Counsel
Andrew J. Hopkins, Minority Counsel
Megan M. Krynen, Minority Professional Staff Member
Laura W. Kilbride, Chief Clerk
Calendar No. 673
118th Congress } { Report
SENATE
2d Session } { 118-270
======================================================================
VESSEL TRACKING FOR SANCTIONS ENFORCEMENT ACT
_______
December 9, 2024.--Ordered to be printed
_______
Mr. Peters, from the Committee on Homeland Security and Governmental
Affairs, submitted the following
R E P O R T
[To accompany S. 2248]
[Including cost estimate of the Congressional Budget Office]
The Committee on Homeland Security and Governmental
Affairs, to which was referred the bill (S. 2248) to require a
pilot program on the use of big data analytics to identify
vessels evading sanctions and export controls and to require a
report on the availability in the United States of emerging and
foundational technologies subject to export controls, having
considered the same, reports favorably thereon with amendments
and an amendment to the title and recommends that the bill, as
amended, do pass.
CONTENTS
Page
I. Purpose and Summary.............................................. 1
II. Background and Need for the Legislation.......................... 2
III. Legislative History.............................................. 3
IV. Section-by-Section Analysis of the Bill, as Reported............. 4
V. Evaluation of Regulatory Impact.................................. 5
VI. Congressional Budget Office Cost Estimate........................ 5
VII. Changes in Existing Law Made by the Bill, as Reported............ 6
I. PURPOSE AND SUMMARY
S. 2248, the Vessel Tracking for Sanctions Enforcement Act
of 2023, would require the Secretary of Homeland Security,
acting through the Commissioner of U.S. Customs and Border
Protection (CBP), to establish a pilot program under the CBP
National Targeting Center (NTC) to examine the potential use of
big data analytics to identify and predict instances of
manipulation or disablement of the Automatic Identification
System (AIS) by vessels deemed high risk of violating sanctions
or export controls. The bill directs the program to focus on
data related to the vessels of interest, specifically the
goods, destination, ownership and nationality of the vessel and
personnel, and timing of disablement or manipulation of AIS.
The bill also directs the pilot program to deliver actionable
intelligence to appropriate elements at the Department of
Homeland Security (DHS) and other relevant domestic and foreign
law enforcement agencies.
II. BACKGROUND AND THE NEED FOR LEGISLATION
AIS is a navigation communications system in the maritime
environment, used domestically and internationally, that has
been standardized by the International Telecommunications Union
and adopted by the International Maritime Organization. AIS
provides, among other things, vessel information including the
identity, type and location, course, and speed of the vessel as
well as other safety-related information to other AIS equipped
vessels, aircraft, and shore-based facilities.\1\ The Maritime
Transportation Security Act of 2002 required that certain
commercial vessels operate an AIS while operating in U.S.
navigable waters.\2\ The Maritime Transportation Security Act
also required the implementation of a system to collect and
analyze information related to vessels operating in or bound
for U.S. navigable waters related to the vessel's crew,
passengers, and cargo.\3\
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\1\33 CFR Sec. 164.46.
\2\Pub. L. No. 107-295 (2002); 46 U.S.C. Sec. 70114.
\3\46 U.S.C. Sec. 70113.
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While AIS is primarily used for vessel safety to avoid
issues such as collisions, it is also leveraged by federal
agencies to monitor the movement of vessels for security and as
a tool for sanctions and trade enforcement.\4\ In May 2020, the
Department of the Treasury, Department of State, and U.S. Coast
Guard issued an advisory to the maritime industry, energy and
metals sectors, and related communities with guidance on how
these industries can address illicit shipping and sanctions
evasion practices. The guidance also highlighted tactics used
by actors engaging in sanctionable activity, seeking to evade
U.S. trade enforcement, or engaging in otherwise unlawful
activity. The advisory noted that such actors may disable or
manipulate the AIS to prevent the disclosure of the vessel's
location or may ``[spoof]'' the vessel's AIS information in
order to transmit the information for a different vessel.\5\
The Office of Foreign Assets Control's alert on ``Possible
Evasion of the Russian Oil Price Cap'' explained that
manipulation of a vessel's AIS may be used to conceal vessel
stops at Russian ports or instances of ship-to-ship transfers
of oil used to conceal the origin of the oil.\6\
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\4\U.S. Department of Homeland Security, U.S. Coast Guard,
Navigation Center, AIS Frequently Asked Questions (www.navcen.uscg.gov/
ais-frequently-asked-questions) (accessed Sept. 15, 2023); Department
of the Treasury, Department of State, U.S. Coast Guard, Guidance to
Address Illicit Shipping and Sanctions Evasion Practices (May 14, 2020)
(ofac.treasury.gov/media/37751/download?inline).
\5\Department of the Treasury, Department of State, U.S. Coast
Guard, Guidance to Address Illicit Shipping and Sanctions Evasion
Practices (May 14, 2020) (ofac.treasury.gov/media/37751/
download?inline).
\6\U.S. Department of the Treasury, Office of Foreign Assets
Control, OFAC Alert, Possible Evasion of the Russian Oil Price Cap,
(ofac.treasury.gov/media/931641/download?inline).
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CBP is one of the federal agencies responsible for trade
enforcement and sanctions implementation and reviews cargo
entering and exiting the U.S. for both compliance and to ensure
that it does not pose a security risk to the homeland.\7\ CBP's
NTC supports the vetting of travelers and cargo to identify and
mitigate security risks and support trade enforcement by
utilizing various open-source and law enforcement information
sources to identify high-risk entries.\8\
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\7\U.S. Customs and Border Protection: CBP Fact Sheet: Enforcing
the President's Executive Orders Holding the Russian Federation
Accountable for Continued Aggression in Ukraine (Apr. 1, 2022);
Government Accountability Office, Economic Sanctions: Treasury and
State Have Received Increased Resources for Sanctions Implementation
but Face Hiring Challenges (GAO-20-234) (Mar. 2020).
\8\6 U.S.C. Sec. 211(g)(4); U.S. Customs and Border Protection,
Budget Overview Fiscal Year 2024 (Mar. 13, 2023).
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Big data analytics offers the capability to aggregate vast
amounts of data on vessel movements and activities. This data
can then be used, through techniques such as machine learning,
to train algorithms to identify patterns and correlations
between various data points, and thereby help law enforcement
and other international partners predict and flag suspicious
behaviors and vessels for review.\9\
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\9\How Fake GPS Coordinates Are Leading to Lawlessness on the High
Seas, The New York Times (Sept. 3, 2022) (www.nytimes.com/2022/09/03/
world/americas/ships-gps-international-law.html).
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The Vessel Tracking for Sanctions Enforcement Act of 2023
seeks to improve enforcement of evasion of sanctions and export
controls by requiring a pilot program at the NTC to assess the
use of big data analytics to identify and predict vessels
engaging in such behavior. The pilot program directs the
Secretary of Homeland Security, acting through the CBP
Commissioner, to use big data analytics to identify and predict
instances in which disabling or manipulating a vessel's AIS is
an indication that the vessel poses a high risk of engaging in
sanctionable activities or those subject to export controls.
The bill also requires the pilot program to share actionable
intelligence collected through the pilot program with relevant
federal law enforcement and international partners.
III. LEGISLATIVE HISTORY
Senator Margaret Hassan (D-NH) introduced S. 2248, the
Vessel Tracking for Sanctions Enforcement Act of 2023 on July
11, 2023 with original cosponsor Senator James Lankford (R-OK).
The bill was referred to the Committee on Homeland Security and
Governmental Affairs. Senator Roger Wicker (R-MS) joined as a
cosponsor on July 27, 2023.
The Committee considered S. 2248 at a business meeting on
July 26, 2023. During the business meeting, Senator Hassan
offered Hassan Amendment 1 to the bill to amend the long title
of the bill. The Committee adopted Hassan Amendment 1 by voice
vote, with Senators Peters, Hassan, Sinema, Rosen, Blumenthal,
Paul, Lankford, and Scott present.
Senator Hassan offered Hassan Amendment 2 to the bill, as
well as a modification to the amendment. Hassan Amendment 2, as
modified, added the Secretary of the Treasury for consultation
of the report, language prohibiting additional funds from being
appropriated to carry out the bill, and a rule of construction
relating to the collection or acquisition of information. The
Committee adopted the modification to Hassan Amendment 2 by
unanimous consent, with Senators Peters, Hassan, Sinema, Rosen,
Blumenthal, Paul, Lankford, and Scott present. Hassan Amendment
2, as modified, was adopted by voice vote with Senators Peters,
Hassan, Sinema, Rosen, Blumenthal, Paul, Lankford, and Scott
present.
The bill, as amended by Hassan Amendments 1 and 2, was
ordered reported favorably by a roll call vote with 8 yeas to 1
nay, with Senators Peters, Hassan, Sinema, Rosen, Ossoff,
Blumenthal, Lankford, and Scott voting in the affirmative, and
Senator Paul voting in the negative. Senators Carper, Padilla,
Johnson, Romney, Hawley, and Marshall voted yea by proxy, for
the record only.
IV. SECTION-BY-SECTION ANALYSIS OF THE BILL, AS REPORTED
Section 1. Short title
The section establishes the short title of the bill as the
``Vessel Tracking for Sanctions Enforcement Act of 2023''.
Section 2. Pilot program on use of big data analytics to identify
vessels evading sanctions and export controls
Subsection (a) requires the Secretary of Homeland Security,
acting through the CBP Commissioner, to establish a pilot
program at the NTC to assess the feasibility and advisability
of using big data analytics to identify and predict instances
in which disabling or manipulating a vessel's AIS is an
indication that there is high risk of the vessel transporting
goods while evading sanction of export controls.
Subsection (b) requires the DHS Secretary, through the CBP
Commissioner to design the pilot program to provide actionable
intelligence gathered to operational components of DHS,
including U.S. Immigration and Customs Enforcement and the
Coast Guard, other federal law enforcement agencies, and
agencies of foreign partners when considered appropriate by the
DHS Secretary.
Subsection (c) specifies the types of data the pilot
program should consider with respect to vessels, including
types of goods being transported, destination, nationality and
ownership of the vessel, shipper, and importer of both the
affected vessel and vessels in close proximity while the AIS
was disabled or manipulated, the timing of disablement or
manipulation of the AIS, and the frequency of issues of AIS of
that particular vessel. It also permits the pilot program to
include multiple data models to account for different behavior
patterns for different shippers and types of goods.
Subsection (d) requires the Secretary of Homeland Security,
through the CBP Commissioner, to coordinate with the Secretary
of Commerce and the Director of National Intelligence in
carrying out the program.
Subsection (e) requires the pilot program to terminate 4
years after the date of enactment of this bill.
Subsection (f) requires the Secretary of Homeland Security,
in consultation with the Secretary of Commerce, the Secretary
of the Treasury, and the Director of National Intelligence to
submit a report to Congress not later than 4 years after the
date of enactment of this bill. The bill specifies that the
report shall assess the usefulness of the pilot program,
provide recommendations on whether big data analytics should be
used in the future to identify and predict instances described
in subsection (a), and include information regarding vessels
identified under the pilot program as posing a high risk if
transporting goods in a manner that evades sanctions or export
controls that were interdicted by the U.S. or partner nations
and were not interdicted.
Subsection (g) specifies that no additional funds are to be
allowed to carry out the pilot program.
Subsection (h) creates a rule of construction that
clarifies that section 2 does not authorize any new collection
or acquisition of information that has not been authorized
under existing law as of the date of the enactment of the bill.
V. EVALUATION OF REGULATORY IMPACT
Pursuant to the requirements of paragraph 11(b) of rule
XXVI of the Standing Rules of the Senate, the Committee has
considered the regulatory impact of this bill and determined
that the bill will have no regulatory impact within the meaning
of the rules. The Committee agrees with the Congressional
Budget Office's statement that the bill contains no
intergovernmental or private-sector mandates as defined in the
Unfunded Mandates Reform Act (UMRA) and would impose no costs
on state, local, or tribal governments.
VI. CONGRESSIONAL BUDGET OFFICE COST ESTIMATE
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
S. 2248 would require Customs and Border Protection (CBP)
to establish a four-year pilot program to use data analytics to
identify vessels evading sanctions. Specifically, the goal of
the program would be to identify vessels that disable or
manipulate their Automatic Identification System--a transponder
that broadcasts identification, location, and navigation
information--and provide actionable intelligence to federal law
enforcement agencies. S. 2248 also would require CBP to report
to the Congress on the effectiveness of the pilot.
CBP currently carries out some of the activities required
by the bill. Using information from the agency, CBO estimates
that CBP would need five employees as well as $1 million for
contracting costs in each year of the pilot to expand its data
analysis and intelligence systems. In total, CBO estimates that
implementing S. 2248 would cost $8 million over the 2024-2028
period. Any spending would be subject to the availability of
appropriated funds.
The CBO staff contact for this estimate is Jeremy Crimm.
The estimate was reviewed by Emily Stern, Senior Adviser for
Budget Analysis.
Phillip L. Swagel,
Director, Congressional Budget Office.
VII. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED
This legislation would make no change in existing law,
within the meaning of clauses (a) and (b) of subparagraph 12 of
rule XXVI of the Standing Rules of the Senate, because this
legislation would not repeal or amend any provision of current
law.
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