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# Legislative Bulletin....................................................May 4, 2006

**Contents:**

> **H.R. 4954** --- SAFE Port Act

H.R. 4954 -- SAFE Port Act --- *as reported* (Lungren, R-CA)

**[Order of Business]{.underline}:** The bill is scheduled for
consideration on Thursday, May 4, 2006, subject to a structured rule
(H.Res. 739), which makes in order 15 amendments.

**[Summary by Title:]{.underline}**

***Title I: Security of United States Seaports***

-   Lists a number of findings regarding port security, including the
    following:

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-   "In 2004, maritime vessels carried approximately 9,700,000 shipping
    containers into United States seaports at an average of 27,000
    containers per day;

-   "In its final report, the National Commission on Terrorist Attacks
    Upon the United States noted, 'While commercial aviation remains a
    possible target, terrorists may turn their attention to other modes
    of transportation. Opportunities to do harm are as great, or greater
    in maritime or surface transportation';

-   "In May 2002, the Brookings Institution estimated that costs
    associated with United States port closures from a detonated
    terrorist weapon could add up to \$1 trillion from the resulting
    economic slump and changes in our Nation's inability to trade.
    Anticipated port closures on the west coast of the United States
    could cost the United States economy \$1 billion per day for the
    first five days after a terrorist attack;

-   "Significant enhancements can be achieved by applying a layered
    approach to supply chain security, in a coordinated fashion. Current
    supply chain programs within the Federal Government have been
    independently operated, often falling short of gains which could
    have been made if such programs were operated in a coordinated
    manner;

-   "While it is impossible to completely remove the risk of a terrorist
    attack, security measures in the supply chain can add certainty and
    stability to the global economy, raise investor confidence, and
    facilitate trade. Some counterterrorism costs are integral to the
    price that must be paid to protect society. However,
    counterterrorism measures also present an opportunity to increase
    the efficiency of the global trade system through international
    harmonization of such measures. These efficiency gains are maximized
    when all countries adopt such counterterrorism measures; and

-   "Increasing transparency in the supply chain will assist in
    mitigating the impact of a terrorist attack by allowing for a
    targeted shutdown of the international supply chain and expedited
    restoration of commercial traffic."

    -   Authorizes the Secretary of Homeland Security to "verify the
        effectiveness of each facility security plan periodically" (not
        less than twice annually), by conducting unannounced inspections
        of port facilities.

    -   Requires that security plans required under current law be
        resubmitted for approval if the ownership of the facility
        changes hands. In addition, the bill requires that the Facility
        Security Officer at each facility be a U.S. citizen, unless DHS
        grants a waiver.

    -   **Authorizes \$20 million for FY07** to be used by DHS to begin
        issuing transportation security cards to individuals at certain
        seaport facilities. The DHS is also directed to compare each
        individual who has unescorted access to a secure area of a
        seaport facility against terrorist watch lists to determine if
        the individual poses a threat.

    -   Requires DHS, no later than April 1, 2007 to develop and
        implement a long-range automated vessel tracking system for all
        vessels in United States waters that are equipped with the
        Global Maritime Distress and Safety System or equivalent
        satellite technology. Under current law, DHS already has this
        authority, however, this bill adds to this authority the
        specified date for development and implementation.

    -   **Authorizes \$360 million for FY07-FY12 (\$60 million each
        year) for a new program** at DHS. The agency is directed to
        establish an integrated network of virtual and physical maritime
        security command centers at appropriate U.S. seaports and
        maritime regions, as determined by the DHS Secretary.

    -   **Authorizes \$2.4 billion from 2007-2012 (\$400 million each
        year) for a new grant program** to allocate federal financial
        assistance to ports in the U.S. on the basis of risk and needs.
        The bill lists specific authorized uses of funds granted under
        this new program, some of which include covering the cost of
        acquisition, operation, and maintenance of equipment, conducting
        vulnerability assessments, conducting exercises to strengthen
        terrorism preparedness and establishing mechanisms for sharing
        terrorism threat information. The bill prohibits grant money
        from being used to supplant state or local funds for certain
        activities, constructing buildings or other physical facilities,
        acquiring land, and making state or local government
        cost-sharing contributions. The federal funds for any eligible
        project under this grant program are not to exceed 75% of the
        total cost of the project. The bill specifies that amounts
        authorized to be appropriated for this program are to originate
        from duties collected by U.S. Customs and Border Protection.

    -   **Directs DHS to establish a new Port Security Training
        Program** "for the purpose of enhancing the capabilities of each
        of the Nation's commercial seaports to prevent, prepare for,
        respond to, mitigate against, and recover from threatened or
        actual acts of terrorism, natural disasters, and other
        emergencies."

    -   **Directs DHS to establish a new Port Security Exercise
        Program** for the purpose of testing and evaluated entities such
        as the federal, state, local and foreign governments in their
        ability to respond to acts of terrorism, natural disasters, and
        other emergencies at commercial seaports. DHS is directed to
        consolidate all existing port security exercise programs and
        conduct on a periodic basis, port security exercises at
        commercial seaports. The DHS Secretary is also directed to
        establish a Remedial Action Management System to among other
        things, identify and analyze each port security exercise for
        lessons learned and best practices.

    -   **Authorizes such sums as necessary for FY07-FY12, for the Coast
        Guard to establish a new pilot project** to establish and
        maintain a reserve officers and junior reserve officers training
        program in certain locations, and to establish a program to
        provide students with instruction in subject areas relating to
        operations of the Coast Guard and training them in skills that
        are useful and appropriate for a career in the Coast Guard.
        **The bill mandates that at least one of the programs must be
        established at each of "an historically black college or
        university, an Hispanic-serving institution, and a high school
        with majority-minority population."**

    -   Directs DHS to hire *at least* 200 full-time active duty port of
        entry inspection officers for *each* year of FY07-FY12. The bill
        authorizes the following amounts to carry out this provision:

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-   \$20 million for FY 2007

-   \$40 million for FY 2008

-   \$60 million for FY 2009

-   \$80 million for FY 2010

-   \$100 million for FY 2011

-   \$120 million for FY 2012

    -   **Authorizes \$1.89 billion** to DHS for the acquisition and
        construction of vessels, aircraft, shore and offshore facilities
        and other components associated with the Integrated Deepwater
        System.

    -   Directs DHS to establish at least one Border Patrol unit for the
        Virgin Islands.

***Title II: Security of the International Supply Chain***

-   Directs the Secretary of Homeland Security (DHS) in consultation
    with federal, state, local and tribal government agencies and
    private sector stakeholders responsible for security matters
    affecting the movement of containers through the international
    supply chain, to develop, implement and update as appropriate, a
    strategic plan to enhance the security of the maritime
    transportation system. The bill outlines 12 specific requirements
    that the strategic plan must include. Some of these requirements
    include the following that the plan must:

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-   identify and address gaps and unnecessary overlaps in the roles,
    responsibilities, or authorities of the involved agencies;

-   identify and make recommendations regarding legislative, regulatory,
    and organizational changes necessary to improve coordination among
    the entities or to enhance the security of the international supply
    chain; and

-   provide measurable goals, including objectives, mechanisms, and a
    schedule, for furthering the security of commercial operations from
    point of origin to point of destination.

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-   "Encourages" DHS, in establishing the strategic plan, to consider
    proposed or established standards and practices of foreign
    governments and international organizations, including the
    International Maritime Organization, the World Customs Organization,
    the International Labor Organization, and the International
    Organization for Standardization, as appropriate, to establish
    standards and best practices for the security of containers moving
    through the international supply chain.

-   **Authorizes \$30 million from FY07-FY12** (\$5 million each year)
    for DHS to develop and implement a plan for improving the Automated
    Targeting System for the identification of high-risk containers
    moving through the international supply chain. (The Automated
    Targeting System was established by U.S. Customs and Border
    Protection to assess imports and target those imports which pose a
    high risk of containing contraband).

[]{.mark}

-   **Authorizes \$1.176 billion from 2007-2012 (\$196 million each
    year) for a new program**, the Container Security Initiative (CSI),
    to identify and examine maritime containers that pose a risk for
    terrorism at foreign ports before the containers are shipped to the
    U.S. The bill prohibits DHS from designating a foreign port under
    CSI unless certain requirements have been met. H.R.4954 outlines the
    requirements and procedures for the CSI inspections and foreign
    assistance procedures.

-   Directs DHS to establish by regulation, minimum standards and
    verification procedures for securing containers in transit to an
    importer in the United States. The bill requires that within two
    years of enactment of the bill, all containers bound for ports of
    entry in the U.S are to meet the standards and procedures
    established by DHS.

-   Directs DHS to develop a secure electronic data interchange system
    to collect from and share appropriate risk information related to
    securing the supply chain with the private sector entities
    determined appropriate by the DHS Secretary.

-   **Authorizes \$450 million for FY07-FY12 (\$75 million each year) a
    new grant program**, the Customs-Trade Partnership Against Terrorism
    (C-TPAT) program, "to strengthen and improve the overall security of
    the international supply chain and U.S. border security."
    Specifically, DHS is to implement the recommendations of the C-TPAT
    program identified by the GAO in Report GAO-05-404
    (<http://www.gao.gov/new.items/d05404.pdf>). The Secretary is
    directed to establish minimum requirements, program tiers, and
    program benefits. Under the new program, importers, brokers, air,
    sea, land carriers, and other entities in the international supply
    chain and intermodal transportation system are eligible to apply to
    voluntarily enter into partnerships with DHS. If these entities meet
    certain requirements, specified in the bill, under the C-TPAT
    program, they would be eligible for certain benefits such as reduced
    examinations and priority for processing for searchers. Within
    C-TPAT, the third tier of benefits is called the GreenLane and would
    be offered to validated C-TPAT participants demonstrating a
    sustained commitment beyond the minimum requirements for
    participation. In addition, DHS is directed to **establish a new
    pilot program** to test the feasibility costs, and benefits of
    utilizing their party entities to conduct validations of C-TPAT
    participants.

-   Directs DHS to direct research, development, test, and evaluation
    efforts in furring maritime and cargo security and to ensure that
    these efforts that are funded by DHS are to be coordinated in order
    to avoid duplication of efforts.

-   **Authorizes \$150 million from FY07-FY12 (\$25 million each year)
    for DHS** **to establish a new grant program**, as part of Operation
    Safe Commerce that among other things, integrate non-intrusive
    inspection and radiation detection equipment with automatic
    identification methods for containers, vessels, and vehicles, among
    other things. DHS would also be required to establish demonstration
    projects that further the security of the international supply
    chain.

-   Directs DHS to establish and implement a single, uniform data system
    for the electronic collection, dissemination, and sharing of import
    and export information to increase the efficiency of data submission
    and the security of the data related to border security, trade, and
    public health and safety of international cargoes.

-   Directs DHS to conduct **a new one-year pilot program** to evaluate
    and improve the security of empty containers at U.S. seaports to
    ensure the safe and secure deliver of cargo and to prevent potential
    acts of terrorism involving these containers.

[]{.mark}

***Title III: Directorate for Policy, Planning, and International
Affairs***

-   Establishes at DHS, a Directorate for Policy, Planning, and
    International Affairs. The head of the Directorate would be
    appointed the Under Secretary for Policy and would serve as the
    principal policy advisor to the Secretary.

-   Establishes within the Directorate for Policy, Planning, and
    International Affairs, an Office of International Affairs, to be
    headed by an Assistant Secretary, appointed by the Secretary. The
    bill also establishes within the Directorate, an Office of Policy,
    an Office of the Private Sector, a Director of Cargo Security, and
    several other positions.

-   Establishes at DHS, a Domestic Nuclear Detection Office, to be
    headed by a Director of Domestic Nuclear Detection (appointed by the
    President). The office is to "protect against the unauthorized
    importation, possession, storage, transportation, development, or
    use of a nuclear explosive device, fissile material, or radiological
    material against the U.S."

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-   Directs DHS to coordinate the federal government's implementation of
    a global nuclear detection architecture.

-   Directs DHS to **establish a new research and development program**
    to "achieve transformational and evolutionary improvements in
    detection capabilities for shielded and unshielded nuclear explosive
    devices and radiological dispersion devices."

-   Directs DHS to **establish a new program** to test and evaluate
    technology for detecting nuclear explosive devices and fissile or
    radiological material.

-   Directs DHS to develop and execute a strategy for the acquisition
    and deployment of detection systems in order to implement components
    of the global nuclear detection.

-   Directs DHS to utilize classified and unclassified nuclear and
    radiological threat assessments in designing the global nuclear
    detection architecture under section 2003, prioritizing detection
    system deployments, and testing and optimizing system performance of
    that architecture.

-   Directs DHS to establish an Advisory Council on Nuclear Detection,
    which will advise the on recommendations for the global nuclear
    detection architecture.

-   Directs the President to establish an interagency coordination
    council to facilitate interagency cooperation to implement the
    provisions in Title III.

-   Authorizes for the implementation of Title III, \$536 million for
    FY07, and such sums as necessary for each subsequent year.

-   Directs DHS to **establish a new pilot program** to deploy and test
    the operational performance of next-generation radiation portal
    monitors at one or more U.S. seaports with a high-volume of
    containerized cargo.

**[Possible Conservative Concerns:]{.underline}** Some conservatives may
be concerned that during a time of deficit spending, this bill creates
13 new federal programs at a cost of \$9.4 billion to taxpayers. In
addition, a recent Heritage Foundation paper warned that in addressing
port security, it is a "bad idea to throw money at the problem." The
Homeland Security Inspector General has found that money being poured
into *current* port security grant programs is being wasted and has
yielded minimal security benefits. (Sources:
<http://www.heritage.org/Research/HomelandDefense/wm1014.cfm>,

<http://www.rawstory.com/news/2006/HSportsreport.pdf>)

[**Committee Action**:]{.underline} H.R. 4954 was introduced on March
14, 2006 and was referred to the Committee on Homeland Security, which
considered it, held a mark-up, and reported the bill by voice vote on
April 26, 2006. The bill was also referred the Committee on
Transportation and Infrastructure, which took no official action.

[**Cost to Taxpayers**:]{.underline} According to CBO, H.R. 4954
authorizes **\$8.9 billion** in appropriations from 2007-2011. In
addition, the bill also authorizes \$881 million for 2012. From these
authorizations, CBO estimates the total cost will be \$7.4 billion from
2007-2011, with \$2 billion in spending after 2011.

[**Does the Bill Expand the Size and Scope of the Federal
Government?**:]{.underline} Yes. The bill **creates thirteen new
programs** and creates several new federal bureaucratic offices and
positions.

**[Does the Bill Contain Any New State-Government, Local-Government, or
Private-Sector Mandates?]{.underline}**: Yes. According to CBO, H.R.
4954 imposes an unfunded intergovernmental mandate, as it would require
state and local entities "to participate in staffing command centers for
maritime security, resubmit security plans in certain circumstances, and
hire a United States citizen for the position of chief security
officer."

In addition, CBO states that the bill imposes an unfunded private-sector
mandate on owners and operators of maritime terminal facilities, as they
would be required to submit security plans outlining their operations.

**[Constitutional Authority]{.underline}**: The Homeland Security
Committee, in Committee Report 109-447, finds constitutional authority
in Article I, Section 8, Clause 1, which grants Congress the power to
provide for the common Defense of the United States.

**[RSC Staff Contact:]{.underline}** Joelle Cannon;
<joelle.cannon@mail.house.gov>, (202) 226-0718.