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| ![](med                         | 470 L'Enfant Plaza SW, Room 7110   |
| ia/image1.jpeg){width="1.875in" |                                    |
| height="0.                      | Washington, DC 20593-0001\         |
| 6722222222222223in"}Commandant\ | Staff Symbol: CG-0921\             |
| United States Coast Guard       | Phone: (202) 245-0520\             |
|                                 | FAX: (202) 245-0529                |
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**DEPARTMENT OF HOMELAND SECURITY**

**U. S. COAST GUARD**

**STATEMENT OF**

**RADM DAVID PEKOSKE**

**ASSISTANT COMMANDANT FOR OPERATIONS**

**ON THE**

**SECURITY AND ACCOUNTABILITY FOR EVERY PORT ACT**

**BEFORE THE**

**COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION**

**U. S. SENATE**

**October 4, 2007**

Good morning Mr. Chairman and distinguished members of the Subcommittee.
I am Rear Admiral David Pekoske, Assistant Commandant for Operations,
U.S. Coast Guard. It is a pleasure to appear before you today to discuss
the Coast Guard's efforts in implementing the Safety and Accountability
for Every Port (SAFE Port) Act requirements one year after its
implementation.

The objective of the SAFE Port Act is "to improve maritime and cargo
security through enhanced layered defenses." The Coast Guard is cited as
one of the primary organizations identified with specific
responsibilities for implementing this overall objective. Several
components within our organization have been involved in achieving the
requirements since October 13, 2006 and I will address the SAFE Port Act
requirements section-by-section.

We have had many successes to date in meeting the requirements of the
SAFE Port Act, including requirements involving the inclusion of Salvage
Response Plans in Area Maritime Transportation Security Plans (Section
101); Unannounced Inspections of Maritime Facilities (Section 103); the
Port Security Training Program (Section 113); the Port Security Exercise
Program (Section 114); and Foreign Port Assessments (Section 234).

We recognize, however, that there is still work to be done. There are
some timeline requirements in the SAFE Port Act that we have not met,
including those related to Notice of Arrival for Foreign Vessels on the
Outer Continental Shelf (Section 109) and Enhanced Crewmember
Identification (Section 110). We are committed to working closely and
diligently with our DHS partners to meet these and other requirements of
the SAFE Port Act.

**[Section 101 Area Maritime Transportation Security Plan to include
salvage response plan]{.underline}**

Development of Salvage Response Plans within each Area Maritime Security
Plan (AMSP) has been integrated into the five-year plan update cycle
established by the Maritime Transportation Security Act (ACT) of 2002.
The AMSP update will be performed by Federal Maritime Security
Coordinators in consultation with their respective Area Maritime
Security Committees and is planned for completion during early summer
2009.

A Salvage Response Plan will be a major element of the U.S. Marine
Transportation System (MTS) recovery section of each AMSP and will
provide the coordination and procedural foundation to support
development of unified command incident action plans under the Incident
Command System (ICS) construct when salvage response becomes necessary
to facilitate resumption of trade. Authorities, capabilities, and other
salvage issues are currently being coordinated with government and other
partners. Consultation with national-level salvage industry
representatives is continuing with the development of a Memorandum of
Understanding (MOU) between the Coast Guard and the American Salvage
Association. The MOU will establish a partnership with the goal of
strengthening the communication and working relationship between the
Coast Guard and the marine salvage and fire fighting industries to
improve vessel and personnel safety; enhance national security
preparedness and response; promote timely and professional salvage
response to marine casualties; and enhance the protection of the
environment along our nation's waterways.

Resumption of commerce and recovery of the marine transportation system
(MTS) following a significant disruption is a significant national issue
of concern. The Maritime Transportation Security Act (MTSA) 2002
required that the National Maritime Transportation Security Plan include
a plan to restore cargo flow following a National Transportation
Security Incident (NTSI). The Coast Guard held a National Recovery
Symposium at the National Maritime Institute of Technology and Graduate
Studies on August 1st and 2nd, 2006. The symposium was attended by over
150 executive level participants from numerous branches of state and
Federal government, as well as the private sector.

The Coast Guard is currently developing a concept of operations and
specific planning requirements and organizational structures to ensure a
focus on MTS recovery following a significant disruptive incident. MTS
recovery guidance will be harmonized with, and support implementation
of, the Strategy to Enhance International Supply Chain Security recently
completed by the Department of Homeland Security with Coast Guard and
interagency input. Implementation guidance will also harmonize with MTS
recovery principles gleaned from Hurricane Katrina lessons-learned that
have already been published in the U.S. Coast Guard Incident Management
Handbook.

Review of maritime security developments since the implementation of
MTSA, MTS recovery lessons from Hurricane Katrina, best Area Maritime
Security practices from the field, and an update of MTSA implementation
guidance are in progress. Review results to date have formed the basis
for revising Navigation Vessel Inspection Circular 09-02 which is used
to guide the five-year AMSP update.

Consistent with the overriding requirement to deter, and when necessary,
mitigate the effects of Transportation Security Incidents (TSIs), the
Coast Guard is working to make AMSP coordination and procedures
"all-hazard and transportation disruption" compatible as much as
practicable. This, in conjunction with oil and hazardous materials
response coverage provided through Area Contingency Plans (ACP),
application of Incident Command System (ICS) principles and structures
per the National Incident Management System (NIMS), is intended to
support an integrated and coherent preparedness approach across all
transportation disruptions without requiring additional port-level
plans.

**[Section 102 Requirements relating to maritime facility security
plans]{.underline}**

The Coast Guard recognizes that information on ownership of maritime
facilities and the companies that operate them is vitally important to
the management of the security posture and the clear delineation of
security responsibilities within the port. Currently, in 33 CFR
104.415(b)(2), 105.415(b)(2), and 106.415(b)(2), the Coast Guard
requires a security plan audit whenever the owner or operator of a
vessel, facility or Outer Continental Shelf (OCS) facility changes.
Should the audit reveal that an amendment to the security plan is
necessary, the security officer of the vessel, facility or OCS facility
will submit the amendment to the cognizant Captain of the Port or
District Commander for approval. Consistent with the requirement in
Section 102 of the SAFE Port Act, the DHS Appropriations Act of 2007
requires the Coast Guard to gather ownership information on vessel and
facility security plans.

In order to meet the requirements in these statutes, the Coast Guard has
initiated a regulatory project to update 33 CFR Subchapter H regulations
and will incorporate these new ownership reporting requirements.

Implementation of the Transportation Worker Identification Credential
(TWIC) regulations published in January 2007 will meet the requirement
in Section 102 for a qualified individual having full authority to
implement security actions for a facility to be a citizen of the United
States, unless the Secretary waives the requirement after a
determination based on a complete background check of the individual.
These regulations, found in 33 CFR 105.205(a)(4), require facility
security officers (the qualified individuals in the statute) to possess
and maintain a TWIC. The security threat assessment conducted as part of
the TWIC program involves a complete background check, including a
criminal history records check, a legal status check, and an
intelligence and terrorist watch list check, to satisfy the relevant
mandate within this section. In addition, the Coast Guard is addressing
the requirement for Facility Security Officers to be U.S. citizens in
the regulatory project to update Subchapter H. A final fee was published
on September 28^th^ along with some modifications to the earlier rule.

**[Section 103 Unannounced inspections of maritime
facilities]{.underline}**

Currently, Coast Guard policy calls for an annual inspection of each
facility, supplemented by periodic spot checks. The FY07 Homeland
Security Appropriations Act provided \$15M to, among other efforts, fund
additional port security inspections. With this funding, the Coast Guard
has created 39 new field billets to add to the current 350 facility
inspectors. Thirty-seven of these new billets were filled during the
2007 transfer season, and the remaining two are in the process of being
filled. The Coast Guard conducted more than 7,500 annual inspections and
spot checks of 3,200 facilities in calendar year 2006. We have also
applied additional reserve billets this year to increase facility visits
and ensure each facility is inspected not less than two times this year.
At least one of those inspections will be unannounced.

**[Section 104 Transportation security card]{.underline}**

Section 104 of the SAFE Port Act includes a number of statutory
requirements relating to the implementation of the TWIC program. The
effort to promulgate TWIC requirements through the rulemaking process
met its SAFE Port Act deadline of January 1, 2007 with the posting of
the TWIC Final Rule. This rule, together with the Merchant Mariner
Credential Supplemental Notice of Proposed Rulemaking published on
January 25, 2007, will allow mariners to apply for or renew merchant
mariner credentials through the mail concurrently with the TWIC
enrollment process, eliminating travel to Coast Guard Regional Exam
Centers and removing duplicative background checks and other application
redundancies which exist under each program. Also, the TWIC final rule
incorporates a background check process to enable newly hired workers to
begin working while awaiting issuance of their TWIC, in accordance with
the Act.

The Coast Guard continues to support the Transportation Security
Administration's (TSA's) efforts to implement the TWIC program by
providing field and industry guidance to assist with compliance and
enforcement activities. In addition, the Coast Guard is working closely
with DHS and TSA on the pilot program to test the implementation of card
readers to provide critical information and lessons to inform a second
rulemaking to address TWIC readers. As part of our support for this
effort, the Coast Guard, jointly with TSA, charged the National Maritime
Security Advisory Committee (NMSAC) to form a working group of maritime
industry and biometric technology representatives to propose
specifications for TWIC cards and card readers using a contactless (or
proximity) interface. The NMSAC presented recommended specifications on
February 28, 2007. A notice of availability of the specifications was
published in the Federal Register for public comment on March 16, 2007
and the notice of availability of the final contactless specification
was published in the Federal Register on September 20, 2007.

Work continues on several aspects of the TWIC Program. The Coast Guard
intends to purchase handheld card readers in FY2008 for use during
vessel and facility inspections and spot checks. After the compliance
date passes in a given port, the Coast Guard will use the card readers
to randomly check the validity of an individual's TWIC. Also, the
provision for newly hired employees to work while they await issuance of
a TWIC is in development and on track. The Coast Guard has received
stakeholder comments on policy and included them in the form of a
Navigation and Vessel Inspection Circular (NVIC) which provides guidance
and instruction on how to implement TWIC regulatory requirements for
access control on facilities and vessels. This NVIC was published in
July 2007.

**[Section 107 Long-range vessel tracking]{.underline}**

The Coast Guard currently meets the intent and requirements of the Act,
using the full range of classified and unclassified vessel tracking
information available. While the Long Range Identification and Tracking
(LRIT) NPRM did not meet the April 1, 2007 deadline, it was published in
the Federal Register on October 3, 2007. The Act requires the DHS
Secretary to establish a long range automated vessel tracking system
that meets the following:

-   Tracking: Provided for all vessels in U.S. waters equipped with
    Global Maritime Distress and Safety System (GMDSS) or equivalent
    satellite technology; and

-   International: Consistent with international treaties, conventions
    and agreements.

    [Tracking:]{.underline}

The SAFE Port Act requirement demands a multi-faceted approach. Using
the full range of classified and unclassified vessel tracking info
available, including some information purchased from vendors where
appropriate, the Coast Guard currently meets and exceeds the tracking
requirement of the Act. Currently, sufficient tracking information
exists; however more work is needed in processing, display, and training
in the use of this information.

[International:]{.underline}

Our work to establish a system through the International Maritime
Organization (IMO) will provide an unclassified global tracking
capability in 2008 as a part of an existing IMO convention and give the
United States a system that is compatible and interoperable with the
global maritime community. The Coast Guard has been working with the IMO
since shortly after 9/11 to implement a global tracking system for the
types of vessels described in the Act. Following considerable diplomatic
efforts, the international agreement to implement such a system was
reached last year, and the global tracking system will be in effect at
the end of 2008. In the long run, this approach has more advantages to
the United States because it applies globally to all the world's ships
of the kind described by the Act instead of just those in U.S. waters or
vessels intending to make ports call in the United States. Under this
system, the U.S. will have access to information for U.S. Flag vessels
regardless of their current location, and vessels bound for U.S. ports
when they declare intent to arrive. Information on all other vessels
will be available whenever a ship is within 1,000 nautical miles of the
U.S. coast. The Coast Guard is examining funding strategies for this
important international system.

To complement the above activities, the Coast Guard also initiated a
rulemaking to implement in Title 33 of the Code of Federal Regulations
rules that require ships to report identifying and position data
electronically. These rules provide guidance to U.S. and foreign ships
on how to comply with this new reporting requirement, as well as an
additional enforcement mechanism for ships that fail to comply.

**[Section 108 Establishment of Interagency Operational Centers for Port
Security]{.underline}**

Section 108 requires a budget and cost-sharing analysis for implementing
interagency operations centers. The report required by this Section was
submitted in July. It identified the estimated total acquisition cost of
upgrading the 24 Coast Guard Sector Command Centers (SCCs), which
encompass the Nation's high priority ports, as approximately \$260
million. The major cost elements of this five-year project plan include
an information management software suite, a sensor package and facility
recapitalization.

The establishment of interagency operations centers is currently not
funded. In cooperation with the Department of Justice (DOJ), the U.S.
Navy, and the DHS Office of Science and Technology, five prototype
centers have been established to date. These centers are each configured
differently as test beds for concepts, tactics, procedures and
equipment. Cost sharing arrangements exist among the various
participants.

  ----------------------- -------------------- ---------------------------
  Designator              Location             Cost-Sharing Agencies

  Seahawk Joint Task      Charleston, SC       Dept. of Justice/U. S.
  Force                                        Coast Guard

  SCC\*-Joint             Hampton Roads, VA    U. S. Coast Guard /U.S.
                                               Navy

  SCC-Joint               San Diego, CA        U. S. Coast Guard /U.S.
                                               Navy

  SCC-Joint               Jacksonville, FL     U. S. Coast Guard/U. S.
                                               Navy

  SCC-Joint               Seattle, WA          U. S. Coast Guard/U. S.
                                               Navy
  ----------------------- -------------------- ---------------------------

\*Sector Command Center

Additionally, seven ports have been identified for short and medium term
pilot projects to evaluate joint operations design models between the
Coast Guard and Customs and Border Protection (CBP). These pilots will
include examination of methods for implementation of a virtual command
center construct using various collaboration tools for daily
coordination and vessel inspection planning.

USCG is developing Command 21 to field the capabilities necessary to
create interagency operations centers as required by Section 108. This
initiative would establish interagency operational centers for port
security tailored to each port and designed to close gaps in port and
coastal maritime security. Command 21 would accomplish this by fielding
a sensor network and an information system that allows the centers to
monitor maritime activities in critical areas. The system would link
vital data on vessel history, crew, and cargo to the activities
observed.

Command 21 will be designed to:

-   Enhance the effectiveness of maritime security and response
    operations in mitigating risk, including risks associated with small
    vessels operating in close proximity to critical infrastructure and
    key resources in port and coastal areas. This enhanced effectiveness
    will be accomplished through pro-active tactical surveillance and
    data fusion.

-   Improve maritime port and coastal security systems to complement
    Secure Border Initiative (SBI) Net;

-   Improve unity of effort in a multi-agency operations center
    environment; and

-   Accelerate deployment of a net-centric tactical system that
    implements government-wide enterprise standards for the sharing of
    situation data and services across multiple interagency domains and
    Coast Guard systems.

The Coast Guard's experience with interagency operations centers
demonstrates that many tangible benefits to improve maritime safety,
security, and stewardship can be achieved. Some of these include:

-   Cooperative targeting and coordination of intelligence facilitates
    information sharing;

-   Daily field-level coordination breaks down barriers between
    agencies;

-   Collective use of tactical sensors (radars/cameras) saves time,
    money and effort;

-   Cooperative planning improves readiness and efficiency; and

-   Sharing of law enforcement information helps reduce criminal
    activity in the port and cut off potential funding to terrorist
    groups.

Future interagency operations could be greatly improved as all partners
will be able to:

-   **See** maritime activities using port surveillance sensors;

-   **Understand** the scene by automatically bringing tactical and
    intelligence information together; and

-   **Share** this tactical data with each other as they work side by
    side in improved facilities.

Command 21 is designed to publish tactical data in an open standard that
allows other systems across multiple DHS and applicable federal
government domains to subscribe to the information and use according to
the individual needs of each agency. It provides the maritime component
of the Department of Homeland Security's Secure Border Initiative (SBI).
Moving ahead on both fronts will provide collaborative opportunities to
leverage critical resources to broaden the impact of both programs
toward securing our borders.

**[Section 109 Notice of arrival for foreign vessels on the Outer
Continental Shelf]{.underline}**

The regulations for Notice of Arrival for foreign vessels on the Outer
Continental Shelf (OCS) have been developed and incorporated into an
existing Coast Guard rulemaking project related to OCS activities. This
rulemaking, the updating of 33 CFR Subchapter N, \"Outer Continental
Shelf Activities,\" already includes Notice of Arrival requirements for
foreign vessels operating on the OCS. The Coast Guard has completed
evaluation of the proposed regulations and public comments, and is
working to expeditiously publish this rule.

**[Section 110 Enhanced crewmember identification]{.underline}**

Historically, the Coast Guard advanced the effort to negotiate the
international seafarer's identification initiative at the International
Labor Organization (ILO), resulting in the ILO-185 Seafarer's
Identification Document (SID). However, a requirement within ILO 185
prohibiting implementing nations from requiring a visa for seafarers
holding a SID to be eligible for shore leave has prevented the U.S. from
ratifying ILO 185.

In accordance with the Act, the Coast Guard has prepared a draft NPRM
defining the identification documents necessary for all foreign mariners
calling on U.S. ports. The proposed identification requirements would
also apply to US mariners arriving at U.S. ports from a foreign port of
place of departure.

**[Section 111 Risk assessment tool]{.underline}**

The Maritime Security Risk Analysis Model (MSRAM) is being used by
Captains of the Ports/Federal Maritime Security Coordinators (FMSCs) and
Area Maritime Security Committees (AMSC) to analyze and prioritize
scenario-based risks within their areas of responsibility, and to
measure risk reduction potential in the evaluation of port security
grant program proposals. FMSC and AMSCs are required to validate the
MSRAM data on an annual basis. This was last completed in the summer of
2007 using MSRAM version 2.

**[Section 112 Port security grants]{.underline}**

The Coast Guard worked with the DHS Office of Grants and Training, who
has fiduciary responsibility for the Port Security Grant Program, to
complete the report to Congress required by this Section. The report was
submitted to Congress on April 27, 2007.

The Port Security Grant Program (PSGP) provides grant funding to port
areas for the protection of critical port infrastructure from terrorism.
FY07 PSGP funds are primarily intended to assist ports in enhancing risk
management capabilities; domain awareness; capabilities to prevent,
detect, respond to and recover from attacks involving improvised
explosive devices (IEDs) and other non-conventional weapons; as well as
training and exercises.

\$201,670,000 was available for Port Security Grants in FY07. These
funds were divided amongst four tiers of ports. Within Tier I, eight of
the highest risk port regions were allocated a fixed amount of funding
based on risk. In many cases, multiple port areas were grouped together
to reflect geographic proximity, shared risk, and a common waterway.
Port areas submitting applications within Tier II and III were eligible
to compete for the FY07 PSGP but were not guaranteed funding. Section
112 of the SAFE Port Act also required that any entity addressed in an
Area Maritime Security Plan also be eligible to apply. Tier IV was
established for those new entities not within the port areas in Tiers
I-III. This added approximately 259 ports to the 102 highest risk ports
for a total of 361 that were eligible to compete, but were not
guaranteed funding.

Funds were awarded based on analysis of risk and effectiveness of
proposed investments by the applicants. Risk to port Infrastructure
Protection Program Detail areas was assessed using a methodology
consisting of threat, vulnerability, and consequence factors. The
majority of port security grant funds -- \$120.6 million --was allocated
to eight Tier I ports or port areas that we consider to be the highest
risk.

Grant applicants had 60 days from January 6, 2007 to complete this
process for the remaining \$81M. Applications were required to be
submitted electronically via the grants.gov web site no later than March
6, 2007. The initial reviews were completed by the local Captain of the
Port in conjuction with the Maritime Administration's (MARAD's) regions.
These results were forwarded to a national review panel comprised of
representatives from the Coast Guard, the Transportation Security
Administration (TSA), DHS Infrastructure Protection (IP), Grants and
Training (G&T), the Domestic Nuclear Detection Office (DNDO), and MARAD
that convened on April 9, 2007. The results were announced on May 30,
2007.

The \$110 million was provided by Congress in supplemental Port Security
Grant Funding (P.L. 110-28, the U.S. Troop Readiness, Veterans' Care,
Katrina Recovery, and Iraq Accountability Appropriations Act, 2007).
Using the same risk-based analysis utilized during the initial FY07 Port
Security Grants, funds were allocated to Tier I and II ports to develop
a Port-Wide Risk Management/Mitigation and Business
Continuity/Resumption of Trade Plan which will identify a prioritized
listing of items to be addressed within future grant applications. Tier
III ports that previously submitted projects under the initial FY07 PSG
Program which were validated but unfunded, are to be funded with the
Supplemental Grant. Tier IV ports also applied for TWIC and Training
under the Supplemental Grant funding. The application period has closed.
Both field and national review of the Supplemental applications have
been completed, and announcement of awards were made by September 30,
2007.

**[Section 113 Port Security Training Program]{.underline}**

The Coast Guard is supporting the FEMA National Preparedness
Directorate\'s National Integration Center through Training and
Exercises Integration (formerly known as the DHS Preparedness
Directorate, Office of Grants and Training Division). Collectively, we
are making progress in establishing the program delineated in the Act.
There are a number of existing initiatives and new initiatives that will
address the requirements in this section.

In response to Congressional mandate, the Coast Guard and MARAD
developed model courses for the training of facility and other personnel
to meet the requirements of the Maritime Transportation Security Act of
2002. These model courses establish a competence based standard and
contain most of the requirements under this Section of the Act. The
model courses were developed in support of the facility security plan
requirements, and apply to all personnel working in a port facility or
required to enter a port facility in response to an emergency. These
model courses are available via website to Federal, state and local
personnel from the public and private sector and they are undergoing a
review to include lessons learned and the additional topics required
under the Act. To ensure quality training, Coast Guard and MARAD
developed and implemented a voluntary course acceptance and
certification process using the model courses as the guidelines for
acceptance. The Coast Guard is currently revising the regulations for
security training for facility personnel to ensure all training is
measured against a standard of competence, including the topics required
under the SAFE Port Act.

The FEMA National Preparedness Directorate\'s National Integration
Center, through Training and Exercises Integration, has awarded a \$6.18
million Cooperative Grant to the Florida State University to develop
courses meeting the Maritime Transportation Security Act of 2002
requirements (model courses), and covering the eight port
security-related topics required under the Act. MARAD and the Coast
Guard are actively assisting DHS to ensure this training will be
consistent with existing standards and will provide the maximum possible
return on investment. It is envisioned that these courses will be
available for in-classroom and on-line training; and will be available
both to Federal, state and local personnel as well as members of the
private sector who work in the port security realm.

In addition, the FEMA National Preparedness Directorate\'s National
Integration Center, through Training and Exercises Integration, has made
available other training courses that address individual port security
topics required under the Act. These courses are provided to State and
local emergency responders and other identified audiences by Training
and Exercises Integration, and are coordinated by each State\'s
governor-designated Training Point of Contact.

**[Section 114 Port Security Exercise Program]{.underline}**

Current port security exercise programs conduct live, risk-based
exercises that are realistic and evaluate total capability by focusing
on the port community, in order to evaluate the entire capability. These
exercises involve State and local governments, as well as facilities and
vessels, to ensure that consistent methodology is applied and that all
requirements are met as a result. Although current programs do not
mandate facility participation in these annual exercises, participation
has been strong and continues to increase. Facilities, as well as
vessels, are encouraged to observe and/or participate in these port
security exercises. When they choose to participate, they are offered
the opportunity to put forth exercise objectives tailored to meet their
specific needs.

Since January 2005, the Coast Guard has assisted TSA in implementing
their Port Security Training and Exercise Program (PortSTEP). Similarly,
since October 2005, the Coast Guard has sponsored its own Area Maritime
Security Training and Exercise Program (AMStep) that exercises the port
stakeholder's ability to implement the provisions of the Area Maritime
Security Plan. The Coast Guard and TSA have synchronized AMStep and
PortSTEP to maximize coverage across the U.S. and minimize duplication
of effort. In FY07, these two programs collectively sponsored 41 port
security exercises. Exercise types have included basic and advanced
table-top, discussion-based exercises to full-scale, operations-based
exercises. The type of exercise and scenario selected are collectively
decided upon by Area Maritime Security Committee (AMSC) members, through
application of their most current risk-based port assessment and
assessment of preparedness needs. The results of both these exercise
programs and all lessons learned, best practices, and corrective actions
are documented in a semi-annual report to Congress.

The "Training" aspect of current port security exercise programs focuses
on the National Incident Management System (NIMS) Incident Command
System (ICS). Training, such as I-200 (Basic), I-300 (Intermediate) and
I-320 (Team training), is offered to the entire port community prior to
each annual exercise. Security-specific training is provided from within
the port community.

Initial performance measures for port security exercises were
established under Coast Guard NVIC 09-02, Change 2. These measures,
outlined as objectives, are currently being revised by the Coast Guard
to align with MTSA requirements to test the AMSPs and with the Homeland
Security Exercise and Evaluation Program. All Lessons Learned, Best
Practices, and Remedial Action Items are captured in the Coast Guard's
Contingency Preparedness System (CPS), which can be accessed by the
entire Coast Guard. Additionally, through the use of Homeport, the Coast
Guard's communications and collaborations Information Technology
application, Lessons Learned and Best Practices, can be made available
to the entire port community (Federal, state, local, tribal and
industry).

Although AMStep is currently being carried out under contract support,
the Coast Guard has begun the hiring of personnel to staff
National-level and Regional-level exercise support teams. These teams
will assist Coast Guard Sector Commands (port-level) and Districts with
the following contingency exercise programs: port security,
oil/hazardous substance response, natural disaster, mass rescue, alien
migration interdiction, civil disturbance, counterterrorism, military
outload, combatant commander support, and physical security/force
protection. This is an "All Threats / All Hazards" approach.

**[Section 115 Facility exercise requirements]{.underline}**

Current regulations in 33 CFR 105.220(c) require facilities to conduct
an annual exercise. These exercises may include either live, tabletop,
or participation in a non-site-specific exercise. In order to meet the
requirement in Section 115, the Coast Guard has initiated a regulatory
project to update 33 CFR Subchapter H regulations and will incorporate
definition of "high risk facility" and the requirement for high risk
facilities to conduct bi-annual full-scale exercises.

**[Section 128 Center of Excellence for Maritime, Island and
Extreme/Remote Environment Security]{.underline}**

The Coast Guard is assisting the DHS Science and Technology (S&T)
Directorate to meet the requirements of Section 108. The Broad Area
Announcement (BAA) for a Center of Excellence (COE) for Maritime, Island
and Extreme/Remote Environment Security was announced at the beginning
of February 2007. This BAA incorporated Maritime Domain Awareness (MDA)
study as a central component of a broader system of research into
maritime security. This solicitation is still open, and there has been
good response from the academic community. DHS S&T expects to award the
COE by the end of 2007. The Coast Guard looks forward to this important
new research component that will support DHS.

**[Section 201 Strategic plan to enhance the security of the
international supply chain]{.underline}**

The Coast Guard assisted the Department of Homeland Security's authoring
team in drafting the required Strategy to Enhance International Supply
Chain Security, providing lead authors for sections on response and
recovery. Looking forward, the Coast Guard is working to structure the
first required five-year update to Area Maritime Security Plans (AMSP)
to position them to support field-level implementation of the strategy
as it pertains to Transportation Security Incidents (TSI). A planning
objective is to make these community-based coordination arrangements and
procedures compatible for application during other forms of
transportation disruption, insofar as practicable. We assigned the same
Coast Guard subject matter experts to support each initiative, thereby
facilitating content alignment for this purpose.

**[Section 233 International cooperation and coordination]{.underline}**

The Coast Guard has been working with a variety of international
organizations including the Asia Pacific Economic Cooperation (APEC)
Forum, the Group of Eight (G8), and the Organization of American States
(OAS) to conduct capacity building activities to improve the port
security regimes of developing countries. Coast Guard representatives
serve on maritime security expert groups of these organizations and have
been intimately involved in identifying and executing projects.
Furthermore, the Coast Guard had been working cooperatively with the
Departments of State and Defense in various security assistance
activities.

Of particular note is our work with the OAS, an organization that is
specifically mentioned in the SAFE Port Act for close coordination.
Through the Inter-American Committee on Counter-Terrorism (an OAS body),
and in conjunction with Canada, the Coast Guard is developing a series
of exercises and best practice conferences. The first port security
exercise was completed in Argentina in September 2007.

Modeled after the North Pacific Coast Guard Forum, which has had some
notable successes in the area of joint operations recently, the new
North Atlantic Coast Guard Forum will leverage bilateral relationships
and encourage partner-based activities in the Atlantic theater. Its
first meeting is scheduled for 22-25 October in Stockholm, Sweden.

**[Section 234 Foreign port assessments]{.underline}**

The Coast Guard has increased the pace of assessments and is on track to
complete an initial assessment of all of our trading partners by March
2008. The Coast Guard intends to conduct assessments on a two year cycle
thereafter.

This two year cycle is consistent with the guidance contained in the
FY07 DHS Appropriations Act, which called on the Coast Guard to double
the rate of assessments (basically from three per month to six per
month). This reassessment cycle actually exceeds the requirement of the
SAFE Port Act which call for reassessments to be conducted on a three
year cycle. Additional resources (approx. \$6.7M and 32 FTE) provided in
the FY07 DHS Appropriations Act support this increase in activity.

**[Section 303 Research, development, test, and evaluation efforts in
furtherance of maritime and cargo security]{.underline}**

DHS and the Coast Guard have current and planned efforts to support the
furtherance of maritime and cargo security. The Coast Guard RDT&E
efforts for FY07 include:

+---------------------------+------------------------------------------+
| Mission Areas             | Programs/Projects                        |
+---------------------------+------------------------------------------+
| Boarding Team Support and | 1.  Maritime Biometrics, ID at Sea       |
| Communications            |                                          |
|                           | 2.  Boarding Team Connectivity           |
|                           |                                          |
|                           | 3.  Next Generation Underway             |
|                           |     Connectivity                         |
|                           |                                          |
|                           | 4.  Boarding Officer Tools and Equipment |
|                           |     Support                              |
+---------------------------+------------------------------------------+
| Compel Compliance         | 1.  Anti-Personnel                       |
|                           |                                          |
|                           | 2.  Stopping Mid-Sized Vessels           |
+---------------------------+------------------------------------------+
| Platforms and Sensors     | 1.  Acoustic Buoy                        |
|                           |                                          |
|                           | 2.  Multi-Sensor Performance Prediction  |
|                           |                                          |
|                           | 3.  Global Observer                      |
|                           |                                          |
|                           | 4.  Small UAS Evaluations                |
+---------------------------+------------------------------------------+
| Sector and Port Security  | 1.  Maritime Domain Awareness Community  |
| Operations                |     of Interest                          |
|                           |                                          |
|                           | 2.  National Automatic Identification    |
|                           |     System                               |
+---------------------------+------------------------------------------+
| Miscellaneous             | 1.  Net-Centricity                       |
|                           |                                          |
|                           | 2.  Weapons of Mass Destruction          |
+---------------------------+------------------------------------------+

The Coast Guard projects funded by DHS Office of Science and Technology
(S&T) FY07 funds include:

+---------------------------+------------------------------------------+
| Mission Areas             | Programs/Projects                        |
+---------------------------+------------------------------------------+
| Boarding Team Support and | 1.  Boarding Team Communications         |
| Communications            |                                          |
+---------------------------+------------------------------------------+
| Sensor, Data Fusion, &    | 1.  Visualization Tools                  |
| Decision Aids (Maritime)  |                                          |
|                           | 2.  Hawkeye Watch keeper Prototype       |
|                           |                                          |
|                           | 3.  Offshore Buoys for Vessel Detection  |
|                           |                                          |
|                           | 4.  Emergence Response Blue Force        |
|                           |     Tracking                             |
|                           |                                          |
|                           | 5.  Swimmer/Diver Detection              |
|                           |                                          |
|                           | 6.  Global Observer                      |
+---------------------------+------------------------------------------+

DHS S&T FY08 funding has yet to be defined. The Coast Guard is planning
a comparable dollar figure to support the furtherance of maritime and
cargo security in FY08.

**[Conclusion]{.underline}**

In conclusion, the Coast Guard is committed to implementing the Security
and Accountability for Every Port Act. We continue to make headway on
all fronts and look forward to future progress and partnerships with
international, Federal, state, and local port organizations. Thank you
for the opportunity to testify before you today. I will be happy to
answer any questions you may have.