U.S. GOVERNMENT PRINTING OFFICE

WASHINGTON : 

1 

39–010 

" ! SENATE 108TH CONGRESS

2d Session 

REPORT

2004

108–420 

Calendar No. 818 

TO ESTABLISH AN INTERGOVERNMENTAL 

GRANT PROGRAM TO IDENTIFY AND DEVELOP HOMELAND SECURITY INFORMATION, EQUIPMENT, CAPABILITIES, TECHNOLOGIES, AND SERVICES TO FURTHER 

THE HOMELAND SECURITY NEEDS OF 

THE UNITED STATES AND TO ADDRESS 

THE HOMELAND SECURITY NEEDS OF 

FEDERAL, STATE, AND LOCAL GOVERNMENTS 

R E P O R T 

OF THE

COMMITTEE ON GOVERNMENTAL AFFAIRS 

UNITED STATES SENATE 

TO ACCOMPANY

S. 2635 

TO ESTABLISH AN INTERGOVERNMENTAL GRANT PROGRAM TO 

IDENTIFY AND DEVELOP HOMELAND SECURITY INFORMATION, 

EQUIPMENT, CAPABILITIES, TECHNOLOGIES, AND SERVICES TO 

FURTHER THE HOMELAND SECURITY NEEDS OF THE UNITED 

STATES AND TO ADDRESS THE HOMELAND SECURITY NEEDS OF 

FEDERAL, STATE, AND LOCAL GOVERNMENTS 

NOVEMBER 20, 2004.—Ordered to be printed 


E:\Seals\Congress.#13
(II) 

COMMITTEE ON GOVERNMENTAL AFFAIRS 

SUSAN M. COLLINS, Maine, Chairman 

TED STEVENS, Alaska 

GEORGE V. VOINOVICH, Ohio 

NORM COLEMAN, Minnesota 

ARLEN SPECTER, Pennsylvania 

ROBERT F. BENNETT, Utah 

PETER G. FITZGERALD, Illinois 

JOHN E. SUNUNU, New Hampshire 

RICHARD C. SHELBY, Alabama 

JOSEPH I. LIEBERMAN, Connecticut 

CARL LEVIN, Michigan 

DANIEL K AKAKA, Hawaii 

RICHARD J. DURBIN, Illinois 

THOMAS R. CARPER, Delaware 

MARK DAYTON, Minnesota 

FRANK LAUTENBERG, New Jersey 

MARK PRYOR, Arkansas 

MICHAEL D. BOPP, Staff Director and Chief Counsel 

JANE ALONSO, Professional Staff Member 

JOYCE A. RECHTSCHAFFEN, Minority Staff Director and Counsel 

HOLLY A. IDELSON, Minority Counsel 

ARTY B. NEWHOUSE, Chief Clerk 

Calendar No. 818 

108TH CONGRESS REPORT " ! SENATE 2d Session 108–420 

TO ESTABLISH AN INTERGOVERNMENTAL GRANT PROGRAM TO IDENTIFY 

AND DEVELOP HOMELAND SECURITY INFORMATION, EQUIPMENT, CAPABILITIES, TECHNOLOGIES, AND SERVICES TO FURTHER THE HOMELAND SECURITY NEEDS OF THE UNITED STATES AND TO ADDRESS THE 

HOMELAND SECURITY NEEDS OF FEDERAL, STATE, AND LOCAL GOVERNMENTS 

NOVEMBER 20, 2004.—Ordered to be printed 

Mr. COLLINS, from the Committee on Governmental Affairs, 

submitted the following 

R E P O R T 

[To accompany S. 2635] 

The Committee on Governmental Affairs, to whom was referred 

the bill (S. 2635) to establish an intergovernmental grant program 

to identify and develop homeland security information, equipment, 

capabilities, technologies, and services to further the homeland security needs of the United States and to address the homeland security needs of Federal, State, and local governments, having considered the same reports favorably thereon, with an amendment, 

and recommends that the bill do pass. 

CONTENTS 

Page 

I. Purpose and Summary .................................................................................. 1 

II. Background .................................................................................................... 2 

III. Legislative History ......................................................................................... 2 

IV. Section-by-Section Analysis .......................................................................... 3 

V. Estimated Cost of Legislation ....................................................................... 4 

VI. Evaluation of Regulatory Impact .................................................................. 6 

VII. Changes in Existing Law .............................................................................. 6 

I. PURPOSE AND SUMMARY

The purpose of S. 2635 is to establish a grant program to promote joint ventures to identify and develop homeland security information, equipment, capabilities, technologies, and services to 

further the homeland security needs of Federal, State, and local 

governments. 

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II. BACKGROUND

There are few nations with more experience confronting the 

threat of terrorism than Israel. While terrorism within U.S. borders is relatively new to the United States, Israelis have confronted 

this danger for decades. Israel’s long history of fighting terrorism 

has spurred Israeli businesses, researchers and academics to develop highly sophisticated homeland security technologies, particularly with respect to border integrity, transportation security, and 

first responder equipment. Examples include low-tech solutions 

such as the driver-controlled turnstiles now being installed on Tel 

Aviv buses, and the high-tech facial-recognition software in use at 

airports around the world. As the United States pursues new approaches to protecting our nation, it makes sense that the U.S. leverage Israel’s extensive expertise in this area. 

There are a number of highly successful public-private partnerships between the United States and Israel that lay the foundation 

for this bill. The Bi-National Industrial Research and Development 

Foundation (or ‘‘BIRD’’ fund) has funded industrial research and 

development partnerships between U.S. and Israeli businesses for 

the past 27 years. BIRD was authorized and funded by Congress 

in 1977. BIRD has provided investments of $180 million in 600 

projects that have contributed to U.S. economic growth. In addition, a pilot project administered by BIRD, the Trilateral Industrial 

Development (TRIDE) program, supports joint ventures between 

for-profit firms in the U.S., Israel, and Jordan. TRIDE grants promote research and development, manufacturing, and marketing of 

new products and technologies. 

The Binational Agricultural Research and Development Fund (or 

‘‘BARD’’ fund) provides educational institutions with grant opportunities to develop new technologies in drip irrigation, pesticides, fish 

farming, livestock, poultry, disease control and farm equipment. 

BARD was authorized and funded by Congress in 1978. 

The United States-Israel Binational Science Foundation awards 

grants that promote research cooperation between scientists from 

the United States and Israel. The Foundation documented no less 

than 75 new discoveries that probably would not have been possible without foundation-supported collaboration. These ventures 

produce information and technology that benefit broader U.S. economic and security interests. 

The U.S.-Israel Homeland Security Grant Program established 

by this bill will provide funds not only to for-profit ventures, but 

also to educational and non-profit, nongovernmental institutions 

and between governmental entities. 

III. LEGISLATIVE HISTORY

S. 2635 was introduced on July 8, 2004 by Senators Collins and 

Lieberman and referred to the Committee on Governmental Affairs. On July 21, 2004, the Committee considered S. 2635. An 

amendment was offered by Senators Collins and Lieberman that 

improved upon an earlier version of the bill. The earlier version of 

the bill would have established a program to provide funds to eligible joint homeland security ventures to develop new or modify existing homeland security information, equipment, capabilities, technologies, and services. The substitute amendment specifically foVerDate Aug 04 2004 22:40 Dec 01, 2004 Jkt 39010 PO 00000 Frm 000004 Fmt 06659 Sfmt 06602 E:\HR\OC\SR420.108 SR420
3 

cuses on joint ventures between the United States and Israel. The 

substitute amendment was agreed to and the Committee ordered 

the bill, as amended, reported by voice vote. 

IV. SECTION-BY-SECTION ANALYSIS

Section 1 sets forth findings regarding Israel’s extensive experience in homeland security matters, the history of cooperation between the United States and Israel in developing mutually beneficial technologies, and the successes of grant programs such as the 

BIRD Foundation in the development of technologies and services 

applicable to the homeland security of the United States. 

Section 2(a) establishes a program between the United States 

and Israel to identify, develop, or modify existing or near term 

homeland security information, equipment, capabilities, technologies, and services to further the homeland security of the 

United States and to address the homeland security needs of federal, state, and local governments. 

Section 2(b) directs the Secretary of Homeland Security to conduct a needs assessment of federal, state, and local governments 

and first responders to identify: the homeland security needs of 

these governments and first responders; areas where specific homeland security information, equipment, capabilities, technologies, 

and services could address those needs; and near term and existing 

homeland security information, equipment, capabilities, technologies, and services developed within the United States and 

Israel. This section also directs the Secretary of Homeland Security 

to provide grants, directly or through a non-profit, nongovernmental organization, to eligible applicants to develop, manufacture, 

sell, or otherwise provide homeland security information, equipment, capabilities, technologies, and services to address the needs 

identified by the needs assessment. 

Section 2(c) specifies that an applicant is eligible to receive a 

grant under the program established by this bill if the applicant 

addresses one or more needs of federal, state, and local governments and first responders, as identified through the needs assessment conducted under section 2(b) or otherwise identified by the 

Secretary of Homeland Security. The applicant must also be a joint 

venture between a for profit business entity, academic institution 

or non-profit entity in the United States and a for profit business 

entity, academic institution or non-profit entity in Israel. The applicant could also be a joint ventures between the government of the 

United States and Israel. Applicants must also meet any other 

qualification that the Secretary may require. 

Section 2(d) specifies that each eligible applicant seeking a grant 

must submit to the Secretary of Homeland Security, or to the head 

of a nonprofit, nongovernmental organization authorized by the 

Secretary to award the grants, an application that contains: (1) the 

identification of the joint venture applying for the grant and the 

identity of each entity participating in the joint venture; (2) a description of the product or service with applications related to 

homeland security that the applicant is developing, manufacturing, 

or selling; (3) the development, manufacturing, sales, or other activities related to such product or service that the applicant is seeking to carry out with grant funds; (4) a detailed capital budget for 

such products or service, including the manner in which the grant 

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funds will be allocated and expended; and (5) other information 

that the Secretary of Homeland Security may require. 

Section 2(e) directs the Secretary of Homeland Security to establish an advisory board to monitor how grants made under the program are awarded, if the grants are awarded through a nonprofit, 

nongovernmental body. The advisory board must be comprised of 

an appropriate representative of the government of the United 

States, as designated by the Secretary of Homeland Security, and 

an official designated by the Government of Israel. 

Section 2(f) authorizes the Secretary of Homeland Security to impose a condition that the Government of Israel contribute an 

amount that the Secretary determines appropriate towards a 

project to be funded by a grant before the disbursement of the proceeds of a grant. The contribution sought towards the project from 

the government of Israel may not be in an amount in excess of the 

amount of the grant awarded. 

Section 2(g) directs the Secretary of Homeland Security to give 

priority to those applicants who propose to market the homeland 

security information, equipment, capabilities, technologies, and 

services developed or modified with grant funds to federal, state, 

and local governments and first responders. 

Section 2(h) authorizes the Secretary of Homeland Security to require a grant recipient to make available non-federal matching contributions in an amount equal to up to 50 percent of the total proposed cost of the project for which the grant was awarded. 

Section 2(i) authorizes the Secretary of Homeland Security, as 

appropriate, to require a grant recipient to repay the Secretary, or 

the nonprofit nonprofit, nongovernmental organization authorized 

by the Secretary, the amount of the grant, interest at an appropriate rate, and such charges for administration of the grant as the 

Secretary determines appropriate. The Secretary may not require 

repayment that is more than 150 percent of the amount of the 

grant, adjusted for inflation. 

Section 2(j) authorizes $25 million for fiscal year 2005, and such 

sums as may be necessary for fiscal year 2006, to carry out the 

grant program created by this legislation. 

V. ESTIMATED COST OF LEGISLATION

S. 2635—A bill to establish an intergovernmental grant program to 

identify and develop homeland security information, equipment, 

capabilities, technologies, and services to further the homeland 

security of the United States and to address the homeland security needs of federal, state, and local governments 

Summary: S. 2635 would establish a new grant program between 

the United States and Israel within the Department of Homeland 

Security. The bill would require the Secretary of Homeland Security to conduct an assessment of the needs of federal, state, and 

local governments for security information, equipment, capabilities, 

technology, or services and to make grants to joint U.S. and Israeli 

ventures to develop, and manufacture, products and services for 

those needs. The bill would authorize the appropriation of $25 million in 2005 and amounts necessary for such grants in 2006. CBO 

estimates that implementing the program would cost $47 million 

over the 2005–2009 period, assuming the appropriation of the necVerDate Aug 04 2004 22:40 Dec 01, 2004 Jkt 39010 PO 00000 Frm 000006 Fmt 06659 Sfmt 06602 E:\HR\OC\SR420.108 SR420
5 

essary amounts. Enacting the bill would not effect direct spending 

on receipts. 

The Secretary could require the Government of Israel to contribute to any grants made under the bill. Any joint venture between U.S. and Israeli entities would be eligible to apply for the 

grants, including businesses, academic institutions, or nonprofit organizations. The Secretary could require grant recipients to contribute up to 50 percent of the total proposed cost of any project. 

If appropriate, the Secretary could require grant amounts to be repaid to the government, including interest costs. 

S. 2635 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act (UMRA). 

Public academic institutions may benefit from grants for research 

and development of homeland security technology; any costs to 

those institutions would be incurred voluntarily. 

Estimated cost to the Federal Government: The estimated budgetary impact of S. 2635 is shown in the following table. The costs 

of this legislation fall within budget function 370 (commerce). 

By fiscal year, in millions of dollars— 

2005 2006 2007 2008 2009 

CHANGES IN SPENDING SUBJECT TO APPROPRIATION 

Estimated Authorization Level .................................................. 25 26 0 0 0 

Estimated Outlays ..................................................................... 0 8 25 11 3 

Basis of estimate: For this estimate, CBO assumes the bill will 

be enacted near the end of 2004, that the $25 million authorized 

for 2005 will be appropriated near the start of the fiscal year, and 

that the same amount (adjusted for anticipated inflation) will be 

appropriated in 2006. 

The bill would require Israel to provide matching funds for 

grants under the new program. According to information from the 

Department of State, the United States has not had any discussions with Israel on matching funds. CBO expects that having such 

discussions and reaching an agreement on funding would delay the 

start of operations until 2006. Once the program is established, 

CBO assumes spending would follow a pattern similar to other cost 

shared partnership programs operated by the National Institute of 

Standards and Technology. 

If the Secretary of Homeland Security uses a nongovernmental 

organization to manage the grant program, the bill would require 

him to establish an advisory board to monitor how the grants are 

awarded. Based on the cost of similar advisory boards, CBO estimates the cost to administer the program would be less than 

$100,000 each year. 

Finally, the bill would authorize the Secretary to require recipients to repay the grant if appropriate. Other programs with similar 

repayment authority seldom use it and CBO estimates that collections under this provision, if any, would be insignificant. 

Intergovernmental and private-sector impact: S. 2635 contains no 

intergovernmental or private-sector mandates as defined in UMRA. 

Public academic institutions may benefit from grants for research 

and development of homeland security technology; any costs to 

those institutions would be incurred voluntarily. 

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Estimate prepared by: Federal Costs: Joseph C. Whitehill; Impact on State, Local, and Tribal Governments: Melissa Merrell; and 

Impact on the Private Sector: Paige Piper/Bach. 

Estimate approved by: Peter H. Fontaine, Deputy Assistant Director for Budget Analysis. 

VI. 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. CBO states that there are no 

intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act and no costs on state, local, or tribal 

governments. The legislation contains no other regulatory impact. 

VII. CHANGES IN EXISTING LAW

The enactment of S. 2635 results in no changes to existing law. 

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