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[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 2459 Reported in Senate (RS)]

                                                       Calendar No. 424
109th CONGRESS
  2d Session
                                S. 2459

           To improve cargo security, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                             March 27, 2006

Ms. Collins (for herself, Mrs. Murray, Mr. Coleman, Mr. Lieberman, Mr. 
 DeWine, Mr. Salazar, and Mr. Santorum) introduced the following bill; 
which was read twice and referred to the Committee on Homeland Security 
                        and Governmental Affairs

                              May 5, 2006

               Reported by Ms. Collins, with an amendment
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

_______________________________________________________________________

                                 A BILL

 
           To improve cargo security, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

<DELETED>SECTION 1. SHORT TITLE; TABLE OF CONTENTS.</DELETED>

<DELETED>    (a) Short Title.--This Act may be cited as the ``GreenLane 
Maritime Cargo Security Act''.</DELETED>
<DELETED>    (b) Table of Contents.--The table of contents for this Act 
is as follows:</DELETED>

<DELETED>Sec. 1. Short title; table of contents.
<DELETED>Sec. 2. Findings.
<DELETED>Sec. 3. Definitions.
<DELETED>Sec. 4. Strategy.
<DELETED>Sec. 5. Under Secretary for Policy.
<DELETED>Sec. 6. Container security standards and procedures.
<DELETED>Sec. 7. Radiation detection and radiation safety.
<DELETED>Sec. 8. Container Security Initiative.
<DELETED>Sec. 9. Customs-Trade Partnership Against Terrorism.
<DELETED>Sec. 10. GreenLane designation.
<DELETED>Sec. 11. Joint operations center.
<DELETED>Sec. 12. Research, development, test, and evaluation.
<DELETED>Sec. 13. Port Security Grant Program.
<DELETED>Sec. 14. Authorization of appropriations.

<DELETED>SEC. 2. FINDINGS.</DELETED>

<DELETED>    Congress makes the following findings:</DELETED>
        <DELETED>    (1) Maritime vessels are the primary mode of 
        transportation for international trade and they carry over 80 
        percent of international trade by volume. Improving the 
        security of this complex supply chain is critical for the 
        prosperity and liberty of all nations.</DELETED>
        <DELETED>    (2) In 2004, approximately 9,700,000 shipping 
        containers came into the United States through the Nation's 
        seaports, averaging nearly 27,000 per day.</DELETED>
        <DELETED>    (3) In May 2002, the Brookings Institution 
        estimated that costs associated with United States port 
        closures from a detonated terrorist weapon could add up to 
        $1,000,000,000,000 from the resulting economic slump and 
        changes in our Nation's ability to trade. Although the October 
        2002 west coast port closures were anticipated, such closures 
        cost the American economy approximately $1,000,000,000 per day 
        for the first 5 days.</DELETED>
        <DELETED>    (4) 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. Initiatives to secure shipping 
        containers have just begun.''.</DELETED>
        <DELETED>    (5) The April 2005 Government Accountability 
        Office report entitled ``CONTAINER SECURITY: A Flexible 
        Staffing Model and Minimum Equipment Requirements Would Improve 
        Overseas Targeting and Inspection Efforts'' reported that the 
        effectiveness of the Container Security Initiative is 
        compromised when containers screened by the Bureau of Customs 
        and Border Protection and identified as high-risk are not 
        properly inspected and examined by foreign 
        governments.</DELETED>
        <DELETED>    (6) The March 2005 Government Accountability 
        Office report entitled, ``CARGO SECURITY: Partnership Program 
        Grants Importers Reduced Scrutiny with Limited Assurance of 
        Improved Security'', reports that the terrorist events of 
        September 11, 2001, raised concerns about the potential use of 
        company supply chains, particularly oceangoing cargo 
        containers, to move weapons of mass destruction to the United 
        States. While the likelihood of such use of containers is 
        considered low, the movement of oceangoing containerized cargo 
        is vulnerable to some form of terrorist action. Such action, 
        including attempts to smuggle either fully assembled weapons of 
        mass destruction or their individual components, could lead to 
        widespread death and damage.</DELETED>
        <DELETED>    (7) In August 2005, the President issued the 
        National Strategy for Maritime Security, which notes that the 
        probability of a hostile state using a weapon of mass 
        destruction (referred to in this section as ``WMD'') will 
        increase during the next decade. WMD are of great concern since 
        the maritime sector is the most likely to be used to bring a 
        WMD into the United States. In addition, the adoption of a 
        ``just-in-time delivery approach to shipping by most 
        industries, rather than stockpiling or maintaining operating 
        reserves of energy, raw materials, and key components, means 
        that a disruption or slowing of the flow of almost any item can 
        have widespread implications for the overall market and 
        national economy''.</DELETED>
        <DELETED>    (8) Significant enhancements can be achieved by 
        applying a layered approach to supply chain security, though 
        such layers must be developed in a coordinated fashion. Current 
        supply chain security programs within the Federal government 
        have been independently operated, often falling short of gains 
        which could be made had coordination taken place.</DELETED>
        <DELETED>    (9) In a May 26, 2005, hearing of the Permanent 
        Subcommittee on Investigations of the Committee on Homeland 
        Security and Governmental Affairs of the Senate, key concerns 
        with the Department's supply chain security programs were 
        noted, including--</DELETED>
                <DELETED>    (A) only 17.5 percent of the cargo that 
                the Bureau of Customs and Border Protection had 
                identified as high-risk is inspected 
                overseas;</DELETED>
                <DELETED>    (B) equipment, such as radiation detection 
                devices and nonintrusive imaging machines, used 
                overseas for inspections are untested and of unknown 
                quality;</DELETED>
                <DELETED>    (C) the Bureau of Customs and Border 
                Protection has failed to develop performance measures 
                for the Container Security Initiative that would 
                validate CSI port designations and justify the 
                deployment of personnel overseas;</DELETED>
                <DELETED>    (D) the lack of such performance measures 
                and an assessment for staffing allocations has lead to 
                some CSI ports being overstaffed while others are 
                inadequately staffed;</DELETED>
                <DELETED>    (E) substantial benefits including fewer 
                inspections are provided to importers enrolled in the 
                C-TPAT program without a thorough review or validation 
                of their supply chain security profiles; and</DELETED>
                <DELETED>    (F) the validation procedures and 
                requirements are not sufficiently rigorous to ensure 
                the C-TPAT member's security procedures are 
                adequate.</DELETED>
        <DELETED>    (10) The statement of managers accompanying the 
        conference report on the Department of Homeland Security 
        Appropriations Act, 2005 (Public Law 108-334) directed the 
        Under Secretary for Border and Transportation Security to 
        ``submit a report to the Congress no later than February 8, 
        2005, which identified: (1) the steps the Department has taken 
        to date to enhance shipping container security, (2) the 
        resources that have been devoted to shipping container security 
        in prior fiscal years and the proposed resources to continue 
        this security, (3) the results of on-going projects, such as 
        Operation Safe Commerce, CSI, C-TPAT and others, (4) which 
        departmental entity has primary responsibility for implementing 
        the needed changes, and (5) the steps the entity with primary 
        responsibility will take to implement these changes, including 
        a specific schedule for the development and issuance of 
        standards, policies, procedures, or regulations.''. The 
        statement of managers accompanying the conference report on the 
        Department of Homeland Security Appropriations Act, 2006 
        (Public Law 109-90) directed the Department of Homeland 
        Security to conduct a new review regarding cargo container 
        security, stating ``on June 9, 2005, the Department submitted a 
        report on cargo container security which was 4 months overdue 
        and did not meet the needs outlined in the statement of 
        managers accompanying the conference report on the Department 
        of Homeland Security Appropriations Act, 2005 (Public Law 108-
        334).''.</DELETED>
        <DELETED>    (11) While it is impossible to completely remove 
        the risk of terrorist attacks, security measures in the 
        transport sector designed to counter terrorism 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, counter-terrorism measures can also present an 
        opportunity to find and agree on measures that combine the 
        imperative to fight terrorism with the possibility of increased 
        efficiency in the system. These efficiency gains are maximized 
        when all nations adopt them.</DELETED>
        <DELETED>    (12) The World Customs Organization has taken a 
        positive step in furtherance of international supply chain 
        security in publishing the Framework of Standards to Secure and 
        Facilitate Global Trade, which outlines a set of minimum 
        standards designed to--</DELETED>
                <DELETED>    (A) establish standards for security and 
                trade facilitation;</DELETED>
                <DELETED>    (B) enable integrated supply chain 
                management;</DELETED>
                <DELETED>    (C) enhance the capabilities of customs 
                administrations; and</DELETED>
                <DELETED>    (D) promote cooperation between the 
                customs and business communities.</DELETED>
        <DELETED>    (13) The shipping industry has a responsibility to 
        monitor, self-assess, and report on the risks associated with 
        goods under their control or use. The public sector must offer 
        incentives for companies to invest in security in order to 
        promote information sharing and other public-benefit 
        outcomes.</DELETED>
        <DELETED>    (14) Increasing the transparency of the supply 
        chain will assist in mitigating the impact of an incident by 
        allowing for targeted shutdown of the international supply 
        chain and expedited restoration of commercial 
        traffic.</DELETED>

<DELETED>SEC. 3. DEFINITIONS.</DELETED>

<DELETED>    In this Act:</DELETED>
        <DELETED>    (1) Automated targeting system.--The term 
        ``Automated Targeting System'' means the system established by 
        the Bureau of Customs and Border Protection to assess imports 
        and target those imports which pose a high risk of containing 
        contraband.</DELETED>
        <DELETED>    (2) Container.--The term ``container'' has the 
        meaning given the term in the International Convention for Safe 
        Containers, with annexes, done at Geneva December 2, 1972 (29 
        UST 3707).</DELETED>
        <DELETED>    (3) Container security device.--The term 
        ``container security device'' means a device or system to track 
        and monitor containers for, and secure them against, tampering 
        or compromise throughout the international supply 
        chain.</DELETED>
        <DELETED>    (4) Container security initiative; csi.--The terms 
        ``Container Security Initiative'' and ``CSI'' mean the program 
        authorized under section 8 to identify and examine maritime 
        containers that pose a risk for terrorism at foreign ports 
        before they are shipped to the United States.</DELETED>
        <DELETED>    (5) Customs-trade partnership against terrorism; 
        c-tpat.--The terms ``Customs-Trade Partnership Against 
        Terrorism'' and ``C-TPAT'' mean the voluntary program 
        authorized under section 9 to strengthen and improve the 
        overall security of the international supply chain and United 
        States border security.</DELETED>
        <DELETED>    (6) Department.--The term ``Department'' means the 
        Department of Homeland Security.</DELETED>
        <DELETED>    (7) Examination.--The term ``examination'' means 
        an inspection of cargo to detect the presence of misdeclared, 
        restricted, or prohibited items, including an inspection using 
        nonintrusive imaging and detection technology.</DELETED>
        <DELETED>    (8) Greenlane.--The term ``GreenLane'' refers to 
        the third tier of C-TPAT, that offers additional benefits to 
        validated C-TPAT participants that demonstrate a sustained 
        commitment beyond the minimum requirements for participation in 
        C-TPAT.</DELETED>
        <DELETED>    (9) Inspection.--The term ``inspection'' means the 
        comprehensive process used by the Bureau of Customs and Border 
        Protection for assessing goods entering the United States to 
        appraise them for duty purposes, to detect the presence of 
        restricted or prohibited items, and to ensure compliance with 
        all applicable laws. This process may include screening, 
        conducting an examination, or conducting a search.</DELETED>
        <DELETED>    (10) International supply chain.--The term 
        ``international supply chain'' means the end-to-end process for 
        shipping goods from a point of origin overseas to the United 
        States.</DELETED>
        <DELETED>    (11) Operation safe commerce.--The term 
        ``Operation Safe Commerce'' means the research, development, 
        test, and evaluation grant program that brings together private 
        sector shareholders, port officials, and Federal, State, and 
        local representatives to analyze existing security procedures 
        for cargo and develop new security protocols that have the 
        potential to increase the security of cargo shipments by 
        monitoring the movement and integrity of cargo through the 
        international supply chain.</DELETED>
        <DELETED>    (12) Point of origin.--The term ``point of 
        origin'', in the case of goods, means the point at which such 
        goods are assembled into the smallest exterior packaging unit 
        for movement through the international supply chain.</DELETED>
        <DELETED>    (13) Screening.--The term ``screening'' means a 
        visual or automated review of information about goods, 
        including manifest or entry documentation accompanying a 
        shipment being imported into the United States, to determine or 
        assess the threat of such cargo.</DELETED>
        <DELETED>    (14) Search.--The term ``search'' means an 
        intrusive examination in which a container is opened and its 
        contents are de-vanned and visually inspected by inspectional 
        personnel for the presence of misdeclared, restricted, or 
        prohibited items.</DELETED>
        <DELETED>    (15) Secretary.--The term ``Secretary'' means the 
        Secretary of Homeland Security.</DELETED>
        <DELETED>    (16) Smallest exterior packaging unit.--The term 
        ``smallest exterior packaging unit'' has the meaning given such 
        term in section 4.7a of title 19, Code of Federal Regulations 
        (as in effect on the date of enactment of this Act).</DELETED>
        <DELETED>    (17) Supply chain visibility procedure.--The term 
        ``supply chain visibility procedure'' means a system or process 
        capable of tracking goods at the smallest exterior packaging 
        unit level from their point of origin to the point of loading 
        into a container entering the international supply 
        chain.</DELETED>
        <DELETED>    (18) Transportation security incident.--The term 
        ``transportation security incident'' has the meaning given such 
        term in section 70101(6) of title 46, United States 
        Code.</DELETED>

<DELETED>SEC. 4. STRATEGY.</DELETED>

<DELETED>    (a) Strategic Plan.--</DELETED>
        <DELETED>    (1) In general.--Not later than 180 days after the 
        date of enactment of this Act, the Secretary, in consultation 
        with appropriate Federal, State, local, and tribal government 
        agencies and private sector stakeholders responsible for 
        security matters that affect or relate to the movement of 
        containers through the international supply chain, shall submit 
        a comprehensive strategic plan to enhance international supply 
        chain security for all modes of transportation by which 
        containers arrive in, depart from, or move through seaports of 
        the United States to--</DELETED>
                <DELETED>    (A) the Committee on Homeland Security and 
                Governmental Affairs of the Senate;</DELETED>
                <DELETED>    (B) the Committee on Appropriations of the 
                Senate;</DELETED>
                <DELETED>    (C) the Committee on Homeland Security of 
                the House of Representatives; and</DELETED>
                <DELETED>    (D) the Committee on Appropriations of the 
                House of Representatives.</DELETED>
        <DELETED>    (2) Content.--The strategic plan submitted under 
        paragraph (1) shall--</DELETED>
                <DELETED>    (A) clarify and delineate the roles, 
                responsibilities, and authorities of Federal, State, 
                local, and tribal government agencies and private 
                sector stakeholders that relate to the security of the 
                movement of containers through the international supply 
                chain;</DELETED>
                <DELETED>    (B) provide measurable goals, including 
                objectives, mechanisms, and a schedule, for furthering 
                the security of commercial operations from point of 
                origin to point of destination;</DELETED>
                <DELETED>    (C) build on available resources and 
                consider costs and benefits;</DELETED>
                <DELETED>    (D) identify mandatory, baseline security 
                goals, and the minimum container security standards and 
                procedures described in section 6;</DELETED>
                <DELETED>    (E) provide incentives for additional 
                voluntary measures to enhance cargo security, as 
                determined by the Secretary and under the GreenLane 
                Program under section 10;</DELETED>
                <DELETED>    (F) include a process for sharing 
                intelligence and information with private sector 
                stakeholders to assist in their security 
                efforts;</DELETED>
                <DELETED>    (G) identify a framework for prudent and 
                measured response in the event of a transportation 
                security incident involving the international supply 
                chain;</DELETED>
                <DELETED>    (H) provide a plan for the expeditious 
                resumption of the flow of legitimate trade in 
                accordance with paragraph (3);</DELETED>
                <DELETED>    (I) focus on the secure movement of 
                containerized cargo through the international supply 
                chain; and</DELETED>
                <DELETED>    (J) expand upon and relate to existing 
                strategies and plans, including the National Strategy 
                for Maritime Security.</DELETED>
        <DELETED>    (3) Resumption of trade.--</DELETED>
                <DELETED>    (A) In general.--The Secretary shall 
                develop protocols for the resumption of trade in the 
                event of a transportation security incident that 
                necessitates the suspension of trade through 
                contingency and continuity planning that ensure trade 
                lanes are restored as quickly as possible.</DELETED>
                <DELETED>    (B) Preferences.--In reestablishing the 
                flow of cargo through ports of entry in the United 
                States after a transportation security incident, the 
                Secretary shall give preference to vessels--</DELETED>
                        <DELETED>    (i) having a vessel security plan 
                        approved or accepted under section 70103(c) of 
                        title 46, United States Code;</DELETED>
                        <DELETED>    (ii) entering a port of entry 
                        directly from a foreign port designated under 
                        CSI or from another foreign port, as determined 
                        by the Secretary;</DELETED>
                        <DELETED>    (iii) operated by validated C-TPAT 
                        participants; and</DELETED>
                        <DELETED>    (iv) carrying GreenLane designated 
                        cargo.</DELETED>
        <DELETED>    (4) Update.--Not less than 3 years after the 
        strategic plan is submitted under paragraph (1), the Secretary 
        shall submit an update of the strategic plan to the Committee 
        on Homeland Security and Governmental Affairs of the Senate, 
        the Committee on Homeland Security of the House of 
        Representatives, the Committee on Appropriations of the Senate, 
        and the Committee on Appropriations of the House of 
        Representatives.</DELETED>
        <DELETED>    (5) Consultations.--Consultations described in 
        paragraph (1) shall focus on--</DELETED>
                <DELETED>    (A) designing measurable goals, including 
                objectives, mechanisms, and a schedule, for furthering 
                the security of the international supply 
                chain;</DELETED>
                <DELETED>    (B) identifying and addressing gaps in 
                capabilities, responsibilities, or 
                authorities;</DELETED>
                <DELETED>    (C) identifying and streamlining 
                unnecessary overlaps in capabilities, responsibilities, 
                or authorities; and</DELETED>
                <DELETED>    (D) identifying and making recommendations 
                regarding legislative, regulatory, and organizational 
                changes necessary to improve coordination among the 
                entities or to enhance the security of the 
                international supply chain.</DELETED>
        <DELETED>    (6) Utilization of advisory committees.--As part 
        of the consultative process, the Secretary is encouraged to 
        utilize the Homeland Security Advisory Committee, the National 
        Maritime Security Advisory Committee, and the Commercial 
        Operations Advisory Committee to review, as necessary, the 
        draft strategic plan and any subsequent update to that 
        plan.</DELETED>
        <DELETED>    (7) International standards and practices.--In 
        furtherance of the strategic plan, the Secretary is encouraged 
        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.</DELETED>
<DELETED>    (b) Improvements to Automated Targeting System.--
</DELETED>
        <DELETED>    (1) Plan.--Not later than 90 days after the date 
        of enactment of this Act, the Secretary shall develop and 
        implement a plan for improving the Automated Targeting System 
        for identifying high-risk containers moving through the 
        international supply chain.</DELETED>
        <DELETED>    (2) Contents.--</DELETED>
                <DELETED>    (A) Treatment of recommendations.--The 
                Secretary shall include in the plan required under 
                paragraph (1) a schedule for completing all outstanding 
                corrective actions recommended by the Comptroller 
                General of the United States, the Inspector General of 
                the Department of the Treasury, and the Inspector 
                General of the Department with respect to the operation 
                of the Automated Targeting System.</DELETED>
                <DELETED>    (B) Information submissions.--In 
                developing the plan under paragraph (1), the Secretary 
                shall consider the cost, benefit, and feasibility of--
                </DELETED>
                        <DELETED>    (i) requiring additional 
                        nonmanifest documentation for each container, 
                        including purchase orders, shipper's letters of 
                        instruction, commercial invoices, letters of 
                        credit, certificates of origin, advance 
                        shipping notices, vessel stow plans, and 
                        certain container status messages, when 
                        created;</DELETED>
                        <DELETED>    (ii) reducing the time period 
                        allowed by law for revisions to a container 
                        cargo manifest;</DELETED>
                        <DELETED>    (iii) reducing the time period 
                        allowed by law for submission of entry data for 
                        vessel or cargo; and</DELETED>
                        <DELETED>    (iv) such other actions the 
                        Secretary considers beneficial for improving 
                        the information relied upon for the Automated 
                        Targeting System and any other targeting 
                        systems in furthering the security and 
                        integrity of the international supply 
                        chain.</DELETED>
                <DELETED>    (C) Outside review.--The Secretary shall 
                conduct, through an independent panel, a review of the 
                Automated Targeting System. The results of this review 
                shall be included in the plan submitted under paragraph 
                (1).</DELETED>
                <DELETED>    (D) Smart system.--The Secretary shall 
                consider future iterations of the Automated Targeting 
                System, which would incorporate smart features, such as 
                more complex algorithms and real-time intelligence, 
                instead of relying solely on rule sets that are 
                periodically updated.</DELETED>
        <DELETED>    (3) New or expanded information submissions.--In 
        considering any new or expanded information submission 
        requirements, the Secretary shall consult with stakeholders and 
        identify the need for such information, and the appropriate 
        timing of its submission, in the plan submitted under paragraph 
        (1).</DELETED>
        <DELETED>    (4) Secure transmission of certain information.--
        All information required by the Department from supply chain 
        partners shall be transmitted in a secure fashion, as 
        determined by the Secretary, so as to protect the information 
        from unauthorized access.</DELETED>
<DELETED>    (c) Uniform Data for Government-Wide Usage.--</DELETED>
        <DELETED>    (1) Establishment.--The Secretary, in conjunction 
        with representatives from the Department, the Department of 
        Transportation, the Department of Health and Human Services, 
        the Department of Agriculture, the Department of Commerce, the 
        Department of State, the Department of Defense, the Department 
        of Justice, the Department of the Interior, and other 
        appropriate Federal agencies, as determined by the Secretary, 
        shall 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 such data related to border 
        security, trade, and public health and safety of international 
        cargoes (referred to in this subsection as the ``International 
        Trade Data System'').</DELETED>
        <DELETED>    (2) Interagency steering group.--The Deputy 
        Director for Management of the Office of Management and Budget 
        (referred to in this subsection as the ``Deputy Director''), 
        pursuant to responsibilities under chapter 36 of title 44, 
        United States Code, shall establish an executive level, 
        interdepartmental steering group (referred to in this 
        subsection as the ``Interdepartmental Steering Group''), 
        comprised of representatives of the departments listed in 
        paragraph (1), to coordinate, the establishment, investment in, 
        and implementation of the International Trade Data 
        System.</DELETED>
        <DELETED>    (3) Implementation.--Not later than 1 year after 
        the date of enactment of this Act, the Deputy Director, through 
        the Interdepartmental Steering Group, shall complete the 
        development of the harmonized data set of import and export 
        information submitted to agencies with a presence at the 
        international border of the United States.</DELETED>
        <DELETED>    (4) Private sector consultation.--The Secretary 
        and the Interdepartmental Steering Group shall consult with 
        private sector stakeholders in developing the uniform data 
        submission requirements, procedures, and schedules.</DELETED>
        <DELETED>    (5) Joint inspections procedures.--The Deputy 
        Director, through the Interdepartmental Steering Group, shall 
        develop plans for longer term uses of the International Trade 
        Data System, including facilitating joint cargo inspections by 
        multiple Federal agencies to meet their respective 
        requirements.</DELETED>

<DELETED>SEC. 5. UNDER SECRETARY FOR POLICY.</DELETED>

<DELETED>    (a) Under Secretary for Policy.--The Homeland Security Act 
of 2002 (6 U.S.C. 101 et seq.) is amended--</DELETED>
        <DELETED>    (1) by redesignating title VI and section 601 as 
        title XVIII and section 1801, respectively, and transferring 
        that title to the end of the Act; and</DELETED>
        <DELETED>    (2) by inserting after title V the 
        following:</DELETED>

       <DELETED>``TITLE VI--UNDER SECRETARY FOR POLICY</DELETED>

<DELETED>``SEC. 601. UNDER SECRETARY FOR POLICY.</DELETED>

<DELETED>    ``(a) In General.--There shall be in the Department an 
Under Secretary for Policy, who shall be appointed by the President, by 
and with the advice and consent of the Senate.</DELETED>
<DELETED>    ``(b) Responsibilities.--Subject to the direction, 
authority, and control of the Secretary, the responsibilities of the 
Under Secretary for Policy shall be as follows:</DELETED>
        <DELETED>    ``(1) Policy.--</DELETED>
                <DELETED>    ``(A) To serve as the principal policy 
                advisor to the Secretary.</DELETED>
                <DELETED>    ``(B) To provide overall direction and 
                supervision for policy development to programs, 
                offices, and activities of the Department.</DELETED>
                <DELETED>    ``(C) To establish and direct a formal 
                policymaking process for the Department.</DELETED>
                <DELETED>    ``(D) To analyze, evaluate, and review 
                completed, ongoing, and proposed programs, to ensure 
                they are compatible with the Secretary's priorities, 
                strategic plans, and policies.</DELETED>
        <DELETED>    ``(2) Strategic planning.--</DELETED>
                <DELETED>    ``(A) To conduct long-range, strategic 
                planning for the Department.</DELETED>
                <DELETED>    ``(B) To prepare national and Department 
                strategies, as appropriate.</DELETED>
                <DELETED>    ``(C) To conduct net assessments of issues 
                facing the Department.</DELETED>
                <DELETED>    ``(D) To conduct reviews of the Department 
                to ensure the implementation of this 
                paragraph.</DELETED>
        <DELETED>    ``(3) International responsibilities.--</DELETED>
                <DELETED>    ``(A) To promote informational and 
                educational exchange with nations friendly to the 
                United States in order to promote sharing of best 
                practices and technologies relating to homeland 
                security, including--</DELETED>
                        <DELETED>    ``(i) the exchange of information 
                        on research and development on homeland 
                        security technologies;</DELETED>
                        <DELETED>    ``(ii) joint training exercises of 
                        first responders; and</DELETED>
                        <DELETED>    ``(iii) exchanging expertise and 
                        information on terrorism prevention, response, 
                        and crisis management.</DELETED>
                <DELETED>    ``(B) To identify areas for homeland 
                security informational and training exchange where the 
                United States has a demonstrated weakness and another 
                friendly nation or nations have a demonstrated 
                expertise.</DELETED>
                <DELETED>    ``(C) To plan and undertake international 
                conferences, exchange programs (including the exchange 
                of scientists, engineers, and other experts), and other 
                training activities.</DELETED>
                <DELETED>    ``(D) To manage international activities 
                within the Department in coordination with other 
                Federal officials with responsibility for 
                counterterrorism matters.</DELETED>
        <DELETED>    ``(4) Private sector.--</DELETED>
                <DELETED>    ``(A) To create and foster strategic 
                communications with the private sector to enhance the 
                primary mission of the Department to protect the 
                American homeland.</DELETED>
                <DELETED>    ``(B) To advise the Secretary on the 
                impact of the policies, regulations, processes, and 
                actions of the Department on the private 
                sector.</DELETED>
                <DELETED>    ``(C) To interface with other relevant 
                Federal agencies with homeland security missions to 
                assess the impact of the actions of such agencies on 
                the private sector.</DELETED>
                <DELETED>    ``(D) To create and manage private sector 
                advisory councils composed of representatives of 
                industries and associations designated by the 
                Secretary--</DELETED>
                        <DELETED>    ``(i) to advise the Secretary on 
                        private sector products, applications, and 
                        solutions as they relate to homeland security 
                        challenges; and</DELETED>
                        <DELETED>    ``(ii) to advise the Secretary on 
                        homeland security policies, regulations, 
                        processes, and actions that affect the 
                        participating industries and 
                        associations.</DELETED>
                <DELETED>    ``(E) To work with Federal laboratories, 
                federally funded research and development centers, 
                other federally funded organizations, academia, and the 
                private sector to develop innovative approaches to 
                address homeland security challenges to produce and 
                deploy the best available technologies for homeland 
                security missions.</DELETED>
                <DELETED>    ``(F) To promote existing public-private 
                partnerships and develop new public-private 
                partnerships to provide for collaboration and mutual 
                support to address homeland security 
                challenges.</DELETED>
                <DELETED>    ``(G) To assist in the development and 
                promotion of private sector best practices to secure 
                critical infrastructure.</DELETED>
                <DELETED>    ``(H) To coordinate industry efforts, with 
                respect to functions of the Department, to identify 
                private sector resources and capabilities that could be 
                effective in supplementing Federal, State, and local 
                government agency efforts to prevent or respond to a 
                terrorist attack.</DELETED>
                <DELETED>    ``(I) To coordinate among Department 
                operating entities and with the Assistant Secretary for 
                Trade Development of the Department of Commerce on 
                issues related to the travel and tourism 
                industries.''.</DELETED>
<DELETED>    (b) Technical and Conforming Amendments.--The Homeland 
Security Act of 2002 (6 U.S.C. 101 et seq.) is amended--</DELETED>
        <DELETED>    (1) in section 103--</DELETED>
                <DELETED>    (A) by redesignating paragraphs (6) 
                through (10) as paragraphs (7) through (11), 
                respectively; and</DELETED>
                <DELETED>    (B) by inserting after paragraph (5) the 
                following:</DELETED>
        <DELETED>    ``(6) An Under Secretary for Policy.'';</DELETED>
        <DELETED>    (2) by striking section 879; and</DELETED>
        <DELETED>    (3) in the table of contents--</DELETED>
                <DELETED>    (A) by redesignating the items relating to 
                title VI and section 601 as items relating to title 
                XVIII and section 1801, respectively, and transferring 
                the items relating to that title and section to the end 
                of the table of contents;</DELETED>
                <DELETED>    (B) by striking the item relating to 
                section 879; and</DELETED>
                <DELETED>    (C) by inserting before the item relating 
                to title VII the following:</DELETED>

            <DELETED>``TITLE VI--UNDER SECRETARY FOR POLICY

<DELETED>``Sec. 601. Under Secretary for Policy.''.
<DELETED>    (c) Office of Cargo Security Policy.--Subtitle C of title 
IV of the Homeland Security Act of 2002 (6 U.S.C. 231 et seq.) is 
amended by adding at the end the following:</DELETED>

<DELETED>``SEC. 431. OFFICE OF CARGO SECURITY POLICY.</DELETED>

<DELETED>    ``(a) Establishment.--There is established within the 
Department an Office of Cargo Security Policy (referred to in this 
section as the `Office').</DELETED>
<DELETED>    ``(b) Purpose.--The Office shall--</DELETED>
        <DELETED>    ``(1) coordinate all Department policies and 
        programs relating to cargo security; and</DELETED>
        <DELETED>    ``(2) consult with stakeholders and work with 
        other Federal agencies to establish standards and regulations 
        and to promote best practices.</DELETED>
<DELETED>    ``(c) Director.--</DELETED>
        <DELETED>    ``(1) Appointment.--The Office shall be headed by 
        a Director, who shall--</DELETED>
                <DELETED>    ``(A) be appointed by the Secretary; 
                and</DELETED>
                <DELETED>    ``(B) report to the Under Secretary for 
                Policy.</DELETED>
        <DELETED>    ``(2) Responsibilities.--The Director shall--
        </DELETED>
                <DELETED>    ``(A) advise the Secretary and the Under 
                Secretary for Policy regarding all aspects of 
                Department programs relating to cargo 
                security;</DELETED>
                <DELETED>    ``(B) develop Department-wide policies 
                regarding cargo security;</DELETED>
                <DELETED>    ``(C) coordinate the cargo security 
                policies and programs of the Department with other 
                executive agencies; and</DELETED>
                <DELETED>    ``(D) coordinate all programs of the 
                Department relating to cargo security.''.</DELETED>
<DELETED>    (d) Designation of Liaison Office of Department of 
State.--The Secretary of State shall designate a liaison office within 
the Department of State to assist the Secretary, as appropriate in 
negotiating cargo security related international agreements; in 
conducting activities under this Act; and other responsibilities as 
assigned by the Secretary of State.</DELETED>

<DELETED>SEC. 6. CONTAINER SECURITY STANDARDS AND PROCEDURES.</DELETED>

<DELETED>    (a) Establishment.--</DELETED>
        <DELETED>    (1) In general.--Not later than 180 days after the 
        date of enactment of this Act, the Secretary shall establish, 
        by regulation, minimum standards and procedures for securing 
        containers in transit to an importer in the United 
        States.</DELETED>
        <DELETED>    (2) Information sources.--The Secretary shall use 
        information from C-TPAT, Operation Safe Commerce, any container 
        security program of the Directorate of Science and Technology, 
        and other security initiatives to establish the standards and 
        procedures described in paragraph (1). Such standards may 
        address operation, technology use, and performance.</DELETED>
        <DELETED>    (3) Deadline for enforcement.--Not later than 2 
        years after the establishment of standards and procedures under 
        subsection (a), all containers bound for ports of entry in the 
        United States shall meet such standards and 
        procedures.</DELETED>
<DELETED>    (b) Review and Enhancement.--The Secretary shall 
regularly--</DELETED>
        <DELETED>    (1) review the standards and procedures 
        established pursuant to subsection (a); and</DELETED>
        <DELETED>    (2) enhance the security standards and procedures, 
        as appropriate, based on tests of technologies as they become 
        commercially available to detect container intrusion and the 
        highest consequence threats, particularly weapons of mass 
        destruction, in accordance with section 11.</DELETED>
<DELETED>    (c) International Cargo Security Standards.--The 
Secretary, in consultation with the Secretary of State, is encouraged 
to promote and establish international standards for the security of 
containers moving through the international supply chain with foreign 
governments and international organizations, including the 
International Maritime Organization and the World Customs 
Organization.</DELETED>

<DELETED>SEC. 7. RADIATION DETECTION AND RADIATION SAFETY.</DELETED>

<DELETED>    (a) Examining Containers.--Not later than 1 year after the 
date of enactment of this Act, all containers entering the United 
States shall be examined for radiation.</DELETED>
<DELETED>    (b) Strategy.--</DELETED>
        <DELETED>    (1) In general.--Not later than 90 days after the 
        date of enactment of this Act, the Secretary shall submit a 
        strategy for the deployment of radiation detection equipment at 
        all ports of entry to--</DELETED>
                <DELETED>    (A) the Committee on Homeland Security and 
                Governmental Affairs of the Senate;</DELETED>
                <DELETED>    (B) the Committee on Appropriations of the 
                Senate;</DELETED>
                <DELETED>    (C) the Committee on Homeland Security of 
                the House of Representatives; and</DELETED>
                <DELETED>    (D) the Committee on Appropriations of the 
                House of Representatives.</DELETED>
        <DELETED>    (2) Contents.--The strategy submitted under 
        paragraph (1) shall include--</DELETED>
                <DELETED>    (A) the type of equipment to be 
                used;</DELETED>
                <DELETED>    (B) standard operating procedures for 
                examining containers with such equipment;</DELETED>
                <DELETED>    (C) a plan detailing the environmental 
                health and safety impacts of nonintrusive inspection 
                technology;</DELETED>
                <DELETED>    (D) the Department policy for the using 
                nonintrusive inspection equipment; and</DELETED>
                <DELETED>    (E) a classified annex that details plans 
                for covert testing.</DELETED>
<DELETED>    (c) Radiation Safety.--Not later than 90 days after the 
date of enactment of this Act, the Secretary shall submit a plan, to 
the Committee on Homeland Security and Governmental Affairs of the 
Senate, the Committee on Appropriations of the Senate, the Committee on 
Homeland Security of the House of Representatives, and the Committee on 
Appropriations of the House of Representatives, that--</DELETED>
        <DELETED>    (1) details the health and safety impacts of 
        nonintrusive inspection technology; and</DELETED>
        <DELETED>    (2) describes the policy of the Bureau of Customs 
        and Border Protection for using nonintrusive inspection 
        equipment.</DELETED>

<DELETED>SEC. 8. CONTAINER SECURITY INITIATIVE.</DELETED>

<DELETED>    (a) Authorization.--The Secretary is authorized to 
establish and implement a program (to be known as the ``Container 
Security Initiative'' or ``CSI'') to identify and examine maritime 
containers that pose a risk for terrorism at foreign ports before the 
containers are shipped to the United States.</DELETED>
<DELETED>    (b) Assessment.--Before the Secretary designates any 
foreign port under CSI, the Secretary, in coordination with the 
Secretary of State and other Federal officials, as appropriate, shall 
conduct an assessment of the port to evaluate costs, benefits, and 
other factors associated with designation, including--</DELETED>
        <DELETED>    (1) the level of risk for the potential compromise 
        of containers by terrorists or terrorist weapons;</DELETED>
        <DELETED>    (2) the economic impact of cargo traveling from 
        the foreign port in terms of trade value and volume;</DELETED>
        <DELETED>    (3) the results of the Coast Guard assessments 
        conducted pursuant to section 70108 of title 46, United States 
        Code;</DELETED>
        <DELETED>    (4) the capabilities and level of cooperation 
        expected of the intended host country;</DELETED>
        <DELETED>    (5) the potential for validation of security 
        practices by the Department, directly or through certified 
        third parties within the country in which the foreign port is 
        located;</DELETED>
        <DELETED>    (6) the potential for amending trade agreements to 
        reflect participation in CSI; and</DELETED>
        <DELETED>    (7) the potential for C-TPAT and GreenLane cargo 
        traveling from the foreign port.</DELETED>
<DELETED>    (c) Annual Report.--Not later than March 1 of each year in 
which the Secretary proposes to designate a foreign port under CSI, the 
Secretary shall submit a report, in classified or unclassified form, 
detailing the assessment of each foreign port the Secretary is 
considering designating under CSI, to--</DELETED>
        <DELETED>    (1) the Committee on Homeland Security and 
        Governmental Affairs of the Senate;</DELETED>
        <DELETED>    (2) the Committee on Appropriations of the 
        Senate;</DELETED>
        <DELETED>    (3) the Committee on Homeland Security of the 
        House of Representatives; and</DELETED>
        <DELETED>    (4) the Committee on Appropriations of the House 
        of Representatives.</DELETED>
<DELETED>    (d) Current CSI Ports.--The report under subsection (c) 
shall include an annual assessment justifying the continuance of each 
port designated under CSI as of the date of enactment of this 
Act.</DELETED>
<DELETED>    (e) Designation of New Ports.--The Secretary shall not 
designate a foreign port under CSI unless the Secretary has completed 
the assessment required in subsection (b) for that port and submitted a 
report under subsection (c) that includes that port.</DELETED>
<DELETED>    (f) Negotiations.--The Secretary of State, in conjunction 
with the United States Trade Representative, shall enter into trade 
negotiations with the government of each foreign country with a port 
designated under CSI, as appropriate, to ensure full compliance with 
the requirements under CSI.</DELETED>
<DELETED>    (g) Inspections.--</DELETED>
        <DELETED>    (1) Requirements and procedures.--The Secretary 
        shall--</DELETED>
                <DELETED>    (A) establish technical capability 
                requirements and standard operating procedures for the 
                use of nonintrusive inspection and radiation detection 
                equipment in conjunction with CSI;</DELETED>
                <DELETED>    (B) require each port designated under CSI 
                to operate the equipment in accordance with the 
                requirements and procedures established under 
                subparagraph (A); and</DELETED>
                <DELETED>    (C) continually monitor the technologies, 
                processes, and techniques used to inspect cargo at 
                ports designated under CSI.</DELETED>
        <DELETED>    (2) Foreign assistance.--</DELETED>
                <DELETED>    (A) In general.--The Secretary, in 
                coordination with the Secretary of State, the Secretary 
                of Energy, and other Federal agencies, shall identify 
                foreign assistance programs that could facilitate the 
                implementation of cargo security antiterrorism measures 
                at ports designated under CSI and foreign ports not 
                designated under CSI that lack effective antiterrorism 
                measures.</DELETED>
                <DELETED>    (B) Acquisition.--The Secretary may lease 
                or loan nonintrusive inspection and radiation detection 
                equipment for containers to the government of a foreign 
                country for use in ports participating in 
                CSI.</DELETED>
                <DELETED>    (C) Training.--The Secretary may provide 
                training on the use of equipment to foreign personnel 
                at each port designated under CSI.</DELETED>
<DELETED>    (h) Personnel.--The Secretary shall--</DELETED>
        <DELETED>    (1) annually assess the personnel needs at each 
        port designated under CSI;</DELETED>
        <DELETED>    (2) deploy personnel in accordance with the 
        assessment under paragraph (1); and</DELETED>
        <DELETED>    (3) consider the potential for remote targeting in 
        decreasing the number of personnel.</DELETED>

<DELETED>SEC. 9. CUSTOMS-TRADE PARTNERSHIP AGAINST TERRORISM.</DELETED>

<DELETED>    (a) In General.--</DELETED>
        <DELETED>    (1) Authorization.--The Secretary is authorized to 
        establish a voluntary program (to be known as the ``Customs-
        Trade Partnership Against Terrorism'' or ``C-TPAT'') to 
        strengthen and improve the overall security of the 
        international supply chain and United States border 
        security.</DELETED>
        <DELETED>    (2) Correction of deficiencies.--The Secretary 
        shall correct the deficiencies of the C-TPAT program that were 
        identified in the Government Accountability Office report 
        entitled ``CARGO SECURITY: Partnership Program Grants Importers 
        Reduced Scrutiny with Limited Assurance of Improved Security'' 
        (GAO-05-404).</DELETED>
        <DELETED>    (3) Minimum requirements.--The Secretary shall 
        promulgate regulations that describe the minimum requirements, 
        program tiers, and program benefits of C-TPAT.</DELETED>
<DELETED>    (b) Participation.--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 the Department.</DELETED>
<DELETED>    (c) Minimum Requirements.--An applicant seeking to 
participate in C-TPAT shall--</DELETED>
        <DELETED>    (1) demonstrate a history of moving commerce in 
        the international supply chain;</DELETED>
        <DELETED>    (2) conduct an assessment of its supply chains 
        based upon security criteria established by the Secretary, 
        including--</DELETED>
                <DELETED>    (A) business partner 
                requirements;</DELETED>
                <DELETED>    (B) container security;</DELETED>
                <DELETED>    (C) physical security and access 
                controls;</DELETED>
                <DELETED>    (D) personnel security;</DELETED>
                <DELETED>    (E) procedural security;</DELETED>
                <DELETED>    (F) security training and threat 
                awareness; and</DELETED>
                <DELETED>    (G) information technology 
                security;</DELETED>
        <DELETED>    (3) implement and maintain security measures and 
        supply chain security practices meeting security criteria; 
        and</DELETED>
        <DELETED>    (4) meet all other requirements established by the 
        Secretary.</DELETED>
<DELETED>    (d) Certification.--</DELETED>
        <DELETED>    (1) Guidelines.--Not later than 180 days after the 
        date of enactment of this Act, the Secretary shall update 
        guidelines for certifying a participant's security measures and 
        supply chain security practices.</DELETED>
        <DELETED>    (2) Tier one benefits.--The Secretary may offer 
        limited benefits to C-TPAT participants whose security measures 
        and supply chain security practices have been certified in 
        accordance with the guidelines established pursuant to 
        paragraph (1). Such benefits may not include reduced scores in 
        the Automated Targeting System.</DELETED>
<DELETED>    (e) Validation.--</DELETED>
        <DELETED>    (1) In general.--Not later than 1 year after a 
        participant has been certified under subsection (d)(1), the 
        Secretary shall validate, directly or through certified third 
        parties, the security measures and supply chain security 
        practices of that participant. Such validation shall include a 
        visit to foreign locations utilized by the C-TPAT participant 
        as part of the supply chain.</DELETED>
        <DELETED>    (2) Guidelines.--Not later than 180 days after the 
        date of enactment of this Act, the Secretary shall update 
        guidelines for validating a participant's security measures and 
        supply chain security practices.</DELETED>
        <DELETED>    (3) Consequences for failed validation.--If a C-
        TPAT participant's security measures and supply chain security 
        practices fail to meet validation requirements--</DELETED>
                <DELETED>    (A) the participant may not receive the 
                benefits of validation; and</DELETED>
                <DELETED>    (B) the Commissioner of the Bureau of 
                Customs and Border Protection may deny the participant 
                all benefits under C-TPAT.</DELETED>
        <DELETED>    (4) Right of appeal.--A C-TPAT participant 
        described under paragraph (3) may--</DELETED>
                <DELETED>    (A) file an appeal with the Secretary of 
                the Commissioner's decision under paragraph (3)(B) to 
                deny benefits under C-TPAT; and</DELETED>
                <DELETED>    (B) request revalidation.</DELETED>
        <DELETED>    (5) Tier two benefits.--The Secretary shall extend 
        benefits to each participant who has been validated under this 
        subsection, which may include--</DELETED>
                <DELETED>    (A) reduced searches;</DELETED>
                <DELETED>    (B) priority processing for searches; 
                and</DELETED>
                <DELETED>    (C) reduced scores in the Automated 
                Targeting System.</DELETED>
<DELETED>    (f) Revalidation.--The Secretary shall establish a process 
for revalidating C-TPAT participants. Such revalidation shall occur not 
less frequently than once during every 3-year period following 
validation.</DELETED>

<DELETED>SEC. 10. GREENLANE DESIGNATION.</DELETED>

<DELETED>    (a) Establishment.--The Secretary shall establish a third 
tier of C-TPAT (referred to in this section as the ``GreenLane'') that 
offers additional benefits to validated C-TPAT participants that 
demonstrate a sustained commitment beyond the minimum requirements for 
participation in C-TPAT.</DELETED>
<DELETED>    (b) Basic Requirements.--Designated GreenLane participants 
shall ensure that--</DELETED>
        <DELETED>    (1) entry data is submitted on shipments before 
        loading;</DELETED>
        <DELETED>    (2) cargo is loaded at a port designated under 
        CSI, or other foreign port as determined by the Secretary, for 
        transit to the United States;</DELETED>
        <DELETED>    (3) cargo is loaded on a vessel with a vessel 
        security plan approved or accepted under section 70103(c) of 
        title 46, United States Code;</DELETED>
        <DELETED>    (4) cargo is made available for screening and 
        examination before loading using technologies, processes or 
        techniques, as determined by the Secretary;</DELETED>
        <DELETED>    (5) the supply chain visibility procedures 
        established by the Secretary are utilized;</DELETED>
        <DELETED>    (6) container security devices meeting the 
        standards and procedures established by the Secretary are 
        utilized;</DELETED>
        <DELETED>    (7) cargo complies with additional security 
        criteria established by the Secretary beyond the minimum 
        requirements for C-TPAT participation under section 9(c), 
        particularly in the area of access controls; and</DELETED>
        <DELETED>    (8) cargo complies with any other requirements 
        determined by the Secretary.</DELETED>
<DELETED>    (c) Containers Transhipped Through Canada or Mexico Under 
GreenLane.--Containers entering the United States under GreenLane at a 
land border port of entry shall undergo the equivalent, appropriate 
level of inspection and screening for potential compromise by 
terrorists or terrorist weapons as containers arriving at a United 
States port of entry from a foreign port.</DELETED>
<DELETED>    (d) Consequences for Lack of Compliance.--</DELETED>
        <DELETED>    (1) In general.--Any participant whose security 
        measures and supply chain security practices have been found by 
        the Secretary to be out of compliance with any requirements of 
        the GreenLane program shall be denied all benefits under 
        GreenLane.</DELETED>
        <DELETED>    (2) Right of appeal.--GreenLane participants under 
        paragraph (1) shall have the right to appeal denial of benefits 
        decisions to the Secretary and request redesignation under 
        GreenLane.</DELETED>
<DELETED>    (e) Non-Containerized Cargo.--The Secretary may consider 
the potential for participation in the GreenLane Program by importers 
of non-containerized cargoes that otherwise meet the requirements under 
this section.</DELETED>
<DELETED>    (f) Overseas Screening and Examinations.--Not later than 
180 days after the date of enactment of this Act, the Secretary shall 
submit a strategy for screening and examining GreenLane containers 
overseas before they are loaded on to vessels destined for the United 
States to--</DELETED>
        <DELETED>    (1) the Committee on Homeland Security and 
        Governmental Affairs of the Senate;</DELETED>
        <DELETED>    (2) the Committee on Appropriations of the 
        Senate;</DELETED>
        <DELETED>    (3) the Committee on Homeland Security of the 
        House of Representatives; and</DELETED>
        <DELETED>    (4) the Committee on Appropriations of the House 
        of Representatives.</DELETED>
<DELETED>    (g) Rulemaking.--</DELETED>
        <DELETED>    (1) In general.--Not later than 1 year after the 
        date of enactment of this Act, the Secretary, in consultation 
        with private sector stakeholders, shall promulgate regulations 
        that establish--</DELETED>
                <DELETED>    (A) requirements for supply chain 
                visibility procedures;</DELETED>
                <DELETED>    (B) performance standards for container 
                security devices and protocols for their use;</DELETED>
                <DELETED>    (C) procedures for overseas screening and 
                examination of GreenLane containers; and</DELETED>
                <DELETED>    (D) any other GreenLane Program 
                requirements that the Secretary considers appropriate, 
                including requirements building upon security measures 
                and supply chain security best practices contained in 
                the C-TPAT minimum requirements set forth in section 
                9(c).</DELETED>
        <DELETED>    (2) Benefits.--Not later than 2 years after the 
        date of enactment of this Act, the Secretary, in consultation 
        with the Commercial Operations Advisory Committee, shall 
        promulgate regulations providing benefits for participation in 
        the GreenLane Program, which may include--</DELETED>
                <DELETED>    (A) the expedited release of GreenLane 
                cargo into destination ports within the United States 
                during all threat levels designated by the Secretary or 
                the Commandant of the Coast Guard;</DELETED>
                <DELETED>    (B) reduced or eliminated bonding 
                requirements for GreenLane cargo;</DELETED>
                <DELETED>    (C) preference to vessels (as described in 
                section 4(e)(B));</DELETED>
                <DELETED>    (D) further reduced searches;</DELETED>
                <DELETED>    (E) priority processing for 
                searches;</DELETED>
                <DELETED>    (F) further reduced scores in the 
                Automated Targeting System; and</DELETED>
                <DELETED>    (G) streamlined billing of any customs 
                duties or fees.</DELETED>

<DELETED>SEC. 11. JOINT OPERATIONS CENTER.</DELETED>

<DELETED>    (a) Establishment.--Not later than 3 years after the date 
of enactment of this Act, the Secretary shall establish joint operation 
centers for maritime and cargo security to--</DELETED>
        <DELETED>    (1) enhance information sharing;</DELETED>
        <DELETED>    (2) facilitate day-to-day operational 
        coordination; and</DELETED>
        <DELETED>    (3) in the case of a transportation security 
        incident, facilitate incident management and 
        response.</DELETED>
<DELETED>    (b) Organization.--At a minimum, a joint operations center 
shall be colocated with the command center for each Coast Guard sector. 
If a particular port is covered by a command center that is not located 
at that port, the Secretary shall consider virtual connectivity to 
maintain awareness of activities of that port and to provide other 
agency participation in accordance with subsection (c).</DELETED>
<DELETED>    (c) Participation.--The following entities shall 
participate in each joint operations center for maritime and cargo 
security:</DELETED>
        <DELETED>    (1) The United States Coast Guard.</DELETED>
        <DELETED>    (2) The Bureau of Customs and Border 
        Protection.</DELETED>
        <DELETED>    (3) The Bureau of Immigration and Customs 
        Enforcement.</DELETED>
        <DELETED>    (4) The Department of Defense, as 
        appropriate.</DELETED>
        <DELETED>    (5) The Federal Bureau of Investigation.</DELETED>
        <DELETED>    (6) Other Federal agencies with a presence at a 
        particular port, as appropriate, or as otherwise selected by 
        the Secretary.</DELETED>
        <DELETED>    (7) State, local, and international law 
        enforcement and first responder agencies responsible for the 
        port, as appropriate, or as otherwise selected by the 
        Secretary.</DELETED>
        <DELETED>    (8) Port authority representatives, maritime 
        exchanges, private sector stakeholders, and other entities 
        subject to an Area Maritime Security Plan, as selected by the 
        Secretary.</DELETED>
<DELETED>    (d) Responsibilities.--Each joint operations center for 
maritime and cargo security shall--</DELETED>
        <DELETED>    (1) assist, as appropriate, in the implementation 
        of maritime transportation security plans developed under 
        section 70103 of title 46, United States Code;</DELETED>
        <DELETED>    (2) implement the transportation security incident 
        response plans required under section 70104 of such 
        title;</DELETED>
        <DELETED>    (3) carry out information sharing activities 
        consistent with those required under section 1016 of the 
        National Security Intelligence Reform Act of 2004 (6 U.S.C. 
        485) and the Homeland Security Information Sharing Act (6 
        U.S.C. 481 et seq.);</DELETED>
        <DELETED>    (4) conduct short- and long-range vessel tracking 
        under sections 70114 and 70115 of such title 46, United States 
        Code; and</DELETED>
        <DELETED>    (5) carry out such other responsibilities as 
        determined by the Secretary.</DELETED>
<DELETED>    (e) Security Clearances.--The Secretary shall sponsor and 
expedite individuals participating in the joint operations centers in 
gaining or maintaining their security clearances. Through the Captain 
of the Port, the Secretary may identify key individuals who should 
participate. In addition, the port or other entities may appeal to the 
Captain of the Port for sponsorship.</DELETED>
<DELETED>    (f) Security Incidents.--During a transportation security 
incident involving the port, the Coast Guard Captain of the Port 
designated by the Commandant of the Coast Guard in each joint 
operations center for maritime security shall act as the incident 
commander, unless otherwise directed under the National Response 
Plan.</DELETED>
<DELETED>    (g) Implementation.--</DELETED>
        <DELETED>    (1) In general.--Not later than 180 days after the 
        date of enactment of this Act, the Secretary shall submit an 
        implementation plan for this section to--</DELETED>
                <DELETED>    (A) the Committee on Homeland Security and 
                Governmental Affairs of the Senate;</DELETED>
                <DELETED>    (B) the Committee on Appropriations of the 
                Senate;</DELETED>
                <DELETED>    (C) the Committee on Homeland Security of 
                the House of Representatives; and</DELETED>
                <DELETED>    (D) the Committee on Appropriations of the 
                House of Representatives.</DELETED>
        <DELETED>    (2) Contents.--The report submitted under 
        paragraph (1) shall describe, for each joint operations 
        center--</DELETED>
                <DELETED>    (A) the location;</DELETED>
                <DELETED>    (B) the specific participating 
                entities;</DELETED>
                <DELETED>    (C) the implementation costs; 
                and</DELETED>
                <DELETED>    (D) the necessary resources for operation 
                and maintenance, including the cost-sharing 
                requirements for other agencies and 
                participants.</DELETED>

<DELETED>SEC. 12. RESEARCH, DEVELOPMENT, TEST, AND 
              EVALUATION.</DELETED>

<DELETED>    (a) Reauthorization of Homeland Security Science and 
Technology Advisory Committee.--</DELETED>
        <DELETED>    (1) In general.--Section 311(j) of the Homeland 
        Security Act of 2002 (6 U.S.C. 191(j)) is amended by striking 
        ``3 years after the effective date of this Act'' and inserting 
        ``on December 31, 2008''.</DELETED>
        <DELETED>    (2) Effective date and application.--The amendment 
        made by paragraph (1) shall be effective as if enacted on the 
        date of enactment of the Homeland Security Act of 
        2002.</DELETED>
        <DELETED>    (3) Advisory committee.--The Under Secretary for 
        Science and Technology shall utilize the Homeland Security 
        Science and Technology Advisory Committee, as appropriate, to 
        provide outside expertise in advancing cargo security 
        technology.</DELETED>
<DELETED>    (b) Duties of Secretary.--The Secretary shall--</DELETED>
        <DELETED>    (1) direct research, development, test, and 
        evaluation efforts in furtherance of maritime and cargo 
        security;</DELETED>
        <DELETED>    (2) encourage the ingenuity of the private sector 
        in developing and testing technologies and process innovations 
        in furtherance of these objectives; and</DELETED>
        <DELETED>    (3) evaluate such technologies.</DELETED>
<DELETED>    (c) Coordination.--The Secretary, acting through the Under 
Secretary for Science and Technology, in consultation with the Under 
Secretary for Policy, the Director of Cargo Security Policy, and the 
Chief Financial Officer, shall ensure that--</DELETED>
        <DELETED>    (1) research, development, test, and evaluation 
        efforts funded by the Department in furtherance of maritime and 
        cargo security are coordinated to avoid duplication of efforts; 
        and</DELETED>
        <DELETED>    (2) the results of such efforts are shared 
        throughout the Department, as appropriate.</DELETED>
<DELETED>    (d) Operation Safe Commerce.--</DELETED>
        <DELETED>    (1) In general.--Not later than 1 year after the 
        date of enactment of this Act, the Secretary shall initiate 
        grant projects, as part of Operation Safe Commerce, that--
        </DELETED>
                <DELETED>    (A) integrate nonintrusive inspection and 
                radiation detection equipment with automatic 
                identification methods for containers, vessels, and 
                vehicles;</DELETED>
                <DELETED>    (B) test physical access control protocols 
                and technologies;</DELETED>
                <DELETED>    (C) create a data sharing network capable 
                of transmitting data required by entities participating 
                in the international supply chain from every intermodal 
                transfer point to the National Targeting Center of the 
                Department; and</DELETED>
                <DELETED>    (D) otherwise further maritime and cargo 
                security, as determined by the Secretary.</DELETED>
        <DELETED>    (2) Supply chain security for special container 
        and noncontainerized cargo.--The Secretary shall consider 
        demonstration projects that further the security of the 
        international supply chain for special container cargo, 
        including refrigerated containers, and noncontainerized cargo, 
        including roll-on/roll-off, break-bulk, liquid, and dry bulk 
        cargo.</DELETED>
        <DELETED>    (3) Annual report.--Not later than March 1 of each 
        year, the Secretary shall submit a report detailing the results 
        of Operation Safe Commerce to--</DELETED>
                <DELETED>    (A) the Committee on Homeland Security and 
                Governmental Affairs of the Senate;</DELETED>
                <DELETED>    (B) the Committee on Homeland Security of 
                the House of Representatives;</DELETED>
                <DELETED>    (C) the Committee on Appropriations of the 
                Senate; and</DELETED>
                <DELETED>    (D) the Committee on Appropriations of the 
                House of Representatives.</DELETED>
<DELETED>    (e) GreenLane Technology.--The Secretary shall, not less 
frequently than once every 2 years--</DELETED>
        <DELETED>    (1) review the technology requirements and 
        standards established under section 10; and</DELETED>
        <DELETED>    (2) test future supply chain visibility 
        procedures, container security devices, and other systems as 
        they become commercially available to track and secure 
        containers and the smallest exterior packaging units loaded 
        into containers.</DELETED>

<DELETED>SEC. 13. PORT SECURITY GRANT PROGRAM.</DELETED>

<DELETED>    (a) Grants Authorized.--The Secretary, acting through the 
Office for Domestic Preparedness, shall establish a grant program to 
fairly and equitably allocate Federal financial assistance--</DELETED>
        <DELETED>    (1) to help implement Area Maritime Transportation 
        Security plans required under section 70103(b) of title 46, 
        United States Code;</DELETED>
        <DELETED>    (2) to correct port security vulnerabilities 
        identified through vulnerability assessments approved by the 
        Secretary; or</DELETED>
        <DELETED>    (3) to non-Federal projects contributing to the 
        overall security of an individual port or the system of ports 
        in the United States, as determined by the Secretary.</DELETED>
<DELETED>    (b) Grantee Selection.--In awarding grants under this Act, 
the Secretary shall--</DELETED>
        <DELETED>    (1) take into account national economic and 
        strategic defense considerations of individual ports;</DELETED>
        <DELETED>    (2) strongly encourage efforts to promote--
        </DELETED>
                <DELETED>    (A) integration of port-wide security, 
                including supply chain initiatives;</DELETED>
                <DELETED>    (B) information and intelligence sharing; 
                and</DELETED>
                <DELETED>    (C) joint efforts, such as joint 
                operations centers, among all port stakeholders; 
                and</DELETED>
        <DELETED>    (3) consider funding major projects in phases over 
        multiple years.</DELETED>
<DELETED>    (c) Multiple Phase Projects.--</DELETED>
        <DELETED>    (1) Funding limitation.--Not more than 20 percent 
        of the total grant funds awarded under this section in any 
        fiscal year may be awarded for projects that span multiple 
        years.</DELETED>
        <DELETED>    (2) Priority.--In determining grant recipients 
        under this section, the Secretary may give preference to 
        continuing to fund multiyear projects that have previously 
        received funding under this section.</DELETED>
<DELETED>    (d) Use of Funds.--Grants awarded under this section may 
be used--</DELETED>
        <DELETED>    (1) to help implement Area Maritime Transportation 
        Security Plans required under section 70103(b) of title 46, 
        United States Code;</DELETED>
        <DELETED>    (2) to correct port security vulnerabilities 
        identified through vulnerability assessments approved by the 
        Secretary;</DELETED>
        <DELETED>    (3) for the salaries, benefits, overtime 
        compensation, and other costs of additional security personnel 
        for State and local agencies for activities required by the 
        Area Maritime Security Plan for a port area if--</DELETED>
                <DELETED>    (A) the Secretary increases the threat 
                level under the Homeland Security Advisory System to 
                Code Orange or Code Red;</DELETED>
                <DELETED>    (B) the Commandant of the Coast Guard 
                raises the Maritime Security level to MARSEC Level 2 or 
                3; or</DELETED>
                <DELETED>    (C) the Secretary otherwise authorizes 
                such costs;</DELETED>
        <DELETED>    (4) for the cost of acquisition, operation, and 
        maintenance of equipment that contributes to the overall 
        security of the port area, as identified in the Area Maritime 
        Security Plan if the need is based upon vulnerability 
        assessments approved by the Secretary or identified in the Area 
        Maritime Security Plan;</DELETED>
        <DELETED>    (5) to develop joint operations centers, as 
        described under section 10, that bring together Federal, State, 
        and local officials and stakeholders into a common operation 
        center that is focused on area maritime and cargo 
        security;</DELETED>
        <DELETED>    (6) to conduct vulnerability assessments approved 
        by the Secretary; and</DELETED>
        <DELETED>    (7) to conduct port-wide exercises to strengthen 
        emergency preparedness of Federal, State, and local officials 
        responsible for port security, including law enforcement 
        personnel and firefighters and other first responders, in 
        support of the Area Maritime Security Plan.</DELETED>
<DELETED>    (e) Prohibited Uses.--Grants awarded under this section 
may not be used to--</DELETED>
        <DELETED>    (1) construct buildings or other physical 
        facilities, except those otherwise authorized under section 611 
        of the Robert T. Stafford Disaster Relief and Emergency 
        Assistance Act (42 U.S.C. 5121 et seq.), including those 
        facilities in support of subsection (d)(5), and specifically 
        approved by the Secretary; or</DELETED>
        <DELETED>    (2) acquire land, unless such use is specifically 
        approved by the Secretary in support of subsection 
        (d)(5).</DELETED>
<DELETED>    (f) Matching Requirements.--Except as provided in 
paragraph (2), Federal funds for any eligible project under this 
section shall be determined by the Secretary.</DELETED>
<DELETED>    (g) Application.--</DELETED>
        <DELETED>    (1) In general.--Any entity subject to an Area 
        Maritime Transportation Security Plan may submit an application 
        for a grant under this section, at such time, in such form, and 
        containing such information and assurances as the Secretary, 
        working through the Office for Domestic Preparedness, may 
        require.</DELETED>
        <DELETED>    (2) Minimum standards for payment or 
        reimbursement.--Each application submitted under paragraph (1) 
        shall include--</DELETED>
                <DELETED>    (A) a comprehensive description of--
                </DELETED>
                        <DELETED>    (i) the need for the 
                        project;</DELETED>
                        <DELETED>    (ii) the methodology for 
                        coordinating the project into the security of 
                        the greater port area, as identified in the 
                        Area Maritime Security Plan;</DELETED>
                        <DELETED>    (iii) any existing cooperation 
                        agreements with other port facilities, vessels, 
                        or organizations that benefit security of the 
                        entire port; and</DELETED>
                        <DELETED>    (iv) the applicability of the 
                        project to the Area Maritime Transportation 
                        Security Plan; and</DELETED>
                <DELETED>    (B) a determination by the Captain of the 
                Port that the security project--</DELETED>
                        <DELETED>    (i) addresses or corrects port 
                        security vulnerabilities identified by the 
                        Coast Guard, or through port security 
                        vulnerability assessments approved by the 
                        Secretary; and</DELETED>
                        <DELETED>    (ii) helps to ensure compliance 
                        with the Area Maritime Transportation Security 
                        Plan.</DELETED>
        <DELETED>    (3) Procedural safeguards.--The Secretary, in 
        consultation with the Office of the Inspector General, shall 
        issue guidelines to establish appropriate accounting, 
        reporting, and review procedures to ensure that--</DELETED>
                <DELETED>    (A) grant funds are used for the purposes 
                for which they were made available;</DELETED>
                <DELETED>    (B) grantees have properly accounted for 
                all expenditures of grant funds; and</DELETED>
                <DELETED>    (C) grant funds not used for such purposes 
                and amounts not obligated or expended are 
                returned.</DELETED>
        <DELETED>    (4) Project approval required.--The Secretary may 
        not award a grant under this section unless the Secretary 
        determines that--</DELETED>
                <DELETED>    (A) the project to be carried out with 
                such grant funding--</DELETED>
                        <DELETED>    (i) is consistent with 
                        vulnerability assessments approved by the 
                        Secretary;</DELETED>
                        <DELETED>    (ii) supports cooperation or 
                        integration of Federal, State, local, and 
                        industry stakeholders in the port area; 
                        and</DELETED>
                        <DELETED>    (iii) helps to implement the Area 
                        Maritime Transportation Security 
                        Plan;</DELETED>
                <DELETED>    (B) sufficient funding is available to 
                meet the matching requirement described under 
                subsection (d);</DELETED>
                <DELETED>    (C) the project will be completed without 
                unreasonable delay; and</DELETED>
                <DELETED>    (D) the recipient has authority to carry 
                out the proposed project.</DELETED>
<DELETED>    (h) Coordination and Cooperation.--The Secretary--
</DELETED>
        <DELETED>    (1) shall ensure that all projects that receive 
        grant funding under this section within any area defined in an 
        Area Maritime Transportation Security Plan are coordinated with 
        other projects in such area; and</DELETED>
        <DELETED>    (2) may require cooperative agreements among users 
        of the port and port facilities with respect to projects funded 
        under this section.</DELETED>
<DELETED>    (i) Audits and Examinations.--All grantees under this 
section shall maintain such records as the Secretary may require and 
make such records available for review and audit by the Secretary, the 
Comptroller General of the United States, or the Inspector General of 
the Department.</DELETED>
<DELETED>    (j) Annual Reports.--Not later than 1 year after the date 
of enactment of this Act, and annually thereafter until October 1, 
2013, the Secretary shall submit an unclassified report describing 
regarding the progress made in meeting the objectives of the port 
security grant program established under this section to--</DELETED>
        <DELETED>    (1) the Committee on Homeland Security and 
        Governmental Affairs of the Senate;</DELETED>
        <DELETED>    (2) the Committee on Homeland Security of the 
        House of Representatives;</DELETED>
        <DELETED>    (3) the Committee on Appropriations of the Senate; 
        and</DELETED>
        <DELETED>    (4) the Committee on Appropriations of the House 
        of Representatives.</DELETED>

<DELETED>SEC. 14. AUTHORIZATION OF APPROPRIATIONS.</DELETED>

<DELETED>    (a) Improvements to Automated Targeting System.--There are 
authorized to be appropriated $5,000,000 for each of the fiscal years 
2007 through 2012 to carry out the provisions of section 
4(b).</DELETED>
<DELETED>    (b) Office of Cargo Security Policy.--There are authorized 
to be appropriated for each of the fiscal years 2007 through 2012--
</DELETED>
        <DELETED>    (1) $4,000,000 to carry out the amendment made by 
        section 5(a); and</DELETED>
        <DELETED>    (2) $1,000,000 to carry out the provisions of 
        section 5(b).</DELETED>
<DELETED>    (c) Container Security Initiative.--There are authorized 
to be appropriated $175,000,000 for each of the fiscal years 2007 
through 2012 to carry out the provisions of section 8.</DELETED>
<DELETED>    (d) Customs-Trade Partnership Against Terrorism.--There 
are authorized to be appropriated $75,000,000 for each of the fiscal 
years 2007 through 2012 to carry out the provisions of section 
9.</DELETED>
<DELETED>    (e) GreenLane Designation.--There are authorized to be 
appropriated $50,000,000 for each of the fiscal years 2007 through 2012 
to carry out the provisions of section 10.</DELETED>
<DELETED>    (f) Incident Response.--</DELETED>
        <DELETED>    (1) In general.--There are authorized to be 
        appropriated $100,000,000 for each of the fiscal years 2007 
        through 2012 to carry out the provisions of section 
        11.</DELETED>
        <DELETED>    (2) Budget analysis.--Not later than 180 days 
        after the date of enactment of this Act, the Secretary shall 
        submit a budget analysis for implementing the provisions of 
        section 11, including additional cost-sharing arrangements with 
        other Federal departments and other participants involved in 
        the joint operation centers, to--</DELETED>
                <DELETED>    (A) the Committee on Homeland Security and 
                Governmental Affairs of the Senate;</DELETED>
                <DELETED>    (B) the Committee on Appropriations of the 
                Senate;</DELETED>
                <DELETED>    (C) the Committee on Homeland Security of 
                the House of Representatives; and</DELETED>
                <DELETED>    (D) the Committee on Appropriations of the 
                House of Representatives.</DELETED>
<DELETED>    (g) Operation Safe Commerce.--There are authorized to be 
appropriated $25,000,000 for each of fiscal years 2007 through 2012 to 
carry out the provisions of section 12(c).</DELETED>
<DELETED>    (h) Port Security Grant Program.--There are authorized to 
be appropriated $400,000,000 for each of fiscal years 2007 through 2012 
to carry out the grant program established under section 13.</DELETED>
<DELETED>    (i) Other Provisions.--There are authorized to be 
appropriated such sums as may be necessary for each of fiscal years 
2007 through 2012 to carry out the provisions of this Act not otherwise 
provided for under this section.</DELETED>
<DELETED>    (j) Source of Funds.--Amounts authorized to be 
appropriated under this section shall originate from duties collected 
by the Bureau of Customs and Border Protection.</DELETED>

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``GreenLane Maritime 
Cargo Security Act''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings.
Sec. 3. Definitions.
Sec. 4. Strategic plan.
Sec. 5. Resumption of trade.
Sec. 6. Enhancement to targeting capabilities.
Sec. 7. Uniform data for governmentwide usage.
Sec. 8. Under Secretary for Policy.
Sec. 9. Container security standards and procedures.
Sec. 10. Domestic radiation detection and imaging.
Sec. 11. Container Security Initiative.
Sec. 12. Customs-Trade Partnership Against Terrorism.
Sec. 13. GreenLane designation.
Sec. 14. Joint operations center.
Sec. 15. Research, development, test, and evaluation.
Sec. 16. Port Security Grant Program.
Sec. 17. Deadline for transportation security cards.
Sec. 18. Authorization of appropriations.

SEC. 2. FINDINGS.

    Congress makes the following findings:
            (1) Maritime vessels are the primary mode of transportation 
        for international trade and they carry over 80 percent of 
        international trade by volume. Improving the security of this 
        complex supply chain is critical for the prosperity and liberty 
        of all nations.
            (2) In 2005, approximately 11,300,000 shipping containers 
        came into the United States through the Nation's seaports, 
        averaging nearly 31,000 per day.
            (3) In May 2002, the Brookings Institution estimated that 
        costs associated with United States port closures from a 
        detonated terrorist weapon could add up to $1,000,000,000,000 
        from the resulting economic slump and changes in our Nation's 
        ability to trade.
            (4) 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.''.
            (5) In August 2005, the President issued the National 
        Strategy for Maritime Security, which notes that the 
        probability of a hostile state using a weapon of mass 
        destruction (referred to in this section as ``WMD'') will 
        increase during the next decade. Many experts believe that the 
        maritime sector is the most likely to be used to bring a WMD 
        into the United States. In addition, the adoption of a ``just-
        in-time delivery approach to shipping by most industries, 
        rather than stockpiling or maintaining operating reserves of 
        energy, raw materials, and key components, means that a 
        disruption or slowing of the flow of almost any item can have 
        widespread implications for the overall market and national 
        economy''.
            (6) Significant enhancements can be achieved by applying a 
        layered approach to supply chain security, though such layers 
        must be developed in a coordinated fashion. Current supply 
        chain security programs within the Federal Government have been 
        independently operated, often falling short of gains which 
        could be made had coordination taken place.
            (7) The March 2006 report of the Permanent Subcommittee on 
        Investigations of the Committee on Homeland Security and 
        Governmental Affairs of the Senate entitled, ``An Assessment of 
        U.S. Efforts to Secure the Global Supply Chain,'' noted several 
        key concerns with the Department's supply chain security 
        programs, including the following:
                    (A) In the Container Security Initiative (CSI), a 
                critical program designed to inspect high-risk shipping 
                containers before they enter United States ports, the 
                Subcommittee found that only 37 percent of such high-
                risk containers are actually inspected. To make matters 
                worse, the United States Government has not established 
                minimum standards for these inspections.
                    (B) Under the Customs-Trade Partnership Against 
                Terrorism (C-TPAT), the United States Government grants 
                benefits to private-sector companies that make specific 
                security commitments. The Subcommittee found, however, 
                that an overwhelming proportion of participating 
                companies receive benefits prior to having their 
                security profile validated. Only 27 percent of the 
                participating companies had been validated as of March 
                28, 2006. Therefore, 73 percent of the companies have 
                not been subjected to a rigorous, on-site review of 
                their security practices.
                    (C) The targeting system employed by the United 
                States Government to identify high-risk shipping 
                containers entering United States ports is largely 
                dependent on preliminary data that is not complete or 
                final. Moreover, the Subcommittee has found that this 
                targeting system has never been tested or validated, 
                and may not discern actual, realistic risks.
                    (D) Less than 40 percent of cargo containers 
                entering United States ports are screened for nuclear 
                or radiological materials. One part of the problem is 
                that the deployment of radiation detection equipment is 
                woefully behind schedule.
            (8) The Department of Homeland Security has twice failed to 
        comply with directives from the Subcommittee on Homeland 
        Security of the Committee on Appropriations of the Senate, 
        requiring the Department to submit a report to Congress, which 
        identifies: ``(1) steps the Department has taken to enhance 
        shipping container security; (2) resources devoted to this in 
        prior years and proposed to continue this security; (3) results 
        of ongoing projects such as OSC, CSI, and C-TPAT; (4) the 
        Departmental entity responsible for implementing improvements 
        in security systems and approaches; and (5) specific steps each 
        entity will take to implement these changes, with associated 
        schedules for development and issuance of standards, policies, 
        procedures, or regulations.''.
            (9) While it is impossible to completely remove the risk of 
        terrorist attacks, security measures in the transport sector 
        designed to counter terrorism 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, 
        counter-terrorism measures can also present an opportunity to 
        find and agree on measures that combine the imperative to fight 
        terrorism with the possibility of increased efficiency in the 
        system. These efficiency gains are maximized when all nations 
        adopt them.
            (10) The World Customs Organization has taken a positive 
        step in furtherance of international supply chain security in 
        publishing the Framework of Standards to Secure and Facilitate 
        Global Trade, which outlines a set of minimum standards 
        designed to--
                    (A) establish standards for security and trade 
                facilitation;
                    (B) enable integrated supply chain management;
                    (C) enhance the capabilities of customs 
                administrations; and
                    (D) promote cooperation between the customs and 
                business communities.
            (11) The shipping and trade industries have a 
        responsibility to monitor, self-assess, and report on the risks 
        associated with goods under their control or use. The public 
        sector must offer incentives for companies to invest in 
        security in order to promote information sharing and other 
        public-benefit outcomes.
            (12) Increasing the transparency of the supply chain will 
        assist in mitigating the impact of an incident by allowing for 
        targeted shutdown of the international supply chain and 
        expedited restoration of commercial traffic.
            (13) The special relationship between Canada and the United 
        States has been exemplified through Canada's partnership and 
        commitment to security following the attacks of September 11, 
        2001.
            (14) Through both public and private initiatives, the 
        private sector has invested time, money and effort, both in the 
        United States and abroad, aimed at improving the security of 
        the international supply chain.

SEC. 3. DEFINITIONS.

    In this Act:
            (1) Appropriate congressional committees.--The term 
        ``appropriate congressional committees'' has the meaning given 
        the term in section 2(2) of the Homeland Security Act of 2002 
        (6 U.S.C. 101(2)).
            (2) Automated targeting system.--The term ``Automated 
        Targeting System'' means the system established by United 
        States Customs and Border Protection to assess imports and 
        target those imports which pose a high risk of containing 
        contraband or otherwise pose a security risk.
            (3) Container.--The term ``container'' has the meaning 
        given the term in the International Convention for Safe 
        Containers, with annexes, done at Geneva December 2, 1972 (29 
        UST 3707).
            (4) Container security device.--The term ``container 
        security device'' means a device or system designed to track 
        and monitor containers for, and secure them against, tampering 
        or compromise throughout the international supply chain.
            (5) Container security initiative; csi.--The terms 
        ``Container Security Initiative'' and ``CSI'' mean the program 
        authorized under section 8 to identify and examine maritime 
        containers that pose a risk for terrorism at foreign ports 
        before they are shipped to the United States.
            (6) Customs-trade partnership against terrorism; c-tpat.--
        The terms ``Customs-Trade Partnership Against Terrorism'' and 
        ``C-TPAT'' mean the voluntary program authorized under section 
        12 to strengthen and improve the overall security of the 
        international supply chain and United States border security.
            (7) Department.--The term ``Department'' means the 
        Department of Homeland Security.
            (8) Examination.--The term ``examination'' means an 
        inspection of cargo to detect the presence of misdeclared, 
        restricted, or prohibited items, including an inspection using 
        nonintrusive imaging and detection technology.
            (9) Greenlane.--The term ``GreenLane'' refers to the third 
        tier of C-TPAT, that offers additional benefits to validated C-
        TPAT participants that demonstrate a sustained commitment 
        beyond the minimum requirements for participation in C-TPAT.
            (10) Inspection.--The term ``inspection'' means the process 
        used by United States Customs and Border Protection to detect 
        restricted or prohibited items through an examination or a 
        search.
            (11) International supply chain.--The term ``international 
        supply chain'' means the coordinated network of companies 
        engaged in the movement of goods from a point of origin to a 
        foreign point of destination.
            (12) Operation safe commerce.--The term ``Operation Safe 
        Commerce'' means the research, development, test, and 
        evaluation grant program that brings together private sector 
        shareholders, port officials, and Federal, State, and local 
        representatives to analyze existing security procedures for 
        cargo and develop new security protocols that have the 
        potential to increase the security of cargo shipments by 
        monitoring the movement and integrity of cargo through the 
        international supply chain.
            (13) Point of origin.--The term ``point of origin'' means 
        the point at which goods are assembled into the smallest 
        exterior packaging unit for initial movement through the 
        international supply chain.
            (14) Scan.--The term ``scan'' means utilizing nonintrusive 
        imaging equipment, radiation detection equipment, or both, to 
        capture data, including images of a container.
            (15) Screening.--The term ``screening'' means a visual or 
        automated review of information about goods, including manifest 
        or entry documentation accompanying a shipment being imported 
        into the United States, to determine or assess the threat of 
        such cargo.
            (16) Search.--The term ``search'' means an intrusive 
        examination in which a container is opened and its contents are 
        devanned and visually inspected by inspection personnel for the 
        presence of misdeclared, restricted, or prohibited items.
            (17) Secretary.--The term ``Secretary'' means the Secretary 
        of Homeland Security.
            (18) Smallest exterior packaging unit.--The term ``smallest 
        exterior packaging unit'' has the meaning given such term in 
        section 4.7a of title 19, Code of Federal Regulations (as in 
        effect on the date of enactment of this Act).
            (19) Supply chain visibility procedure.--The term ``supply 
        chain visibility procedure'' means a system or process capable 
        of tracking goods at the smallest exterior packaging unit 
        level, as described on a shipping manifest, from their point of 
        origin to the point of unlading in the United States.
            (20) Transportation security incident.--The term 
        ``transportation security incident'' has the meaning given such 
        term in section 70101(6) of title 46, United States Code.

SEC. 4. STRATEGIC PLAN.

    (a) In General.--Not later than 180 days after the date of 
enactment of this Act, the Secretary, in consultation with appropriate 
Federal, State, local, and tribal government agencies, public port 
authorities, and private sector stakeholders responsible for security 
matters that affect or relate to the movement of containers through the 
international supply chain, shall submit, to appropriate congressional 
committees, a comprehensive strategic plan to enhance international 
supply chain security for all modes of transportation by which 
containers arrive in, depart from, or move through seaports of the 
United States.
    (b) Content.--The strategic plan submitted under subsection (a) 
shall--
            (1) clarify and delineate the roles, responsibilities, and 
        authorities of Federal, State, local, and tribal government 
        agencies and private sector stakeholders that relate to the 
        security of the movement of containers arriving in, departing 
        from, or moving through seaports of the United States;
            (2) provide measurable goals, including objectives, 
        mechanisms, and a schedule, for furthering the security of 
        commercial operations from point of origin to point of 
        destination;
            (3) build on available resources and consider costs and 
        benefits;
            (4) identify mandatory, baseline security goals, and the 
        minimum container security standards and procedures described 
        in section 9;
            (5) provide incentives for additional voluntary measures to 
        enhance cargo security, as determined by the Secretary and 
        under the GreenLane Program under section 13;
            (6) include a process for sharing intelligence and 
        information with private sector stakeholders to assist in their 
        security efforts;
            (7) identify a framework for prudent and measured response 
        in the event of a transportation security incident in a United 
        States seaport;
            (8) provide a plan for the expeditious resumption of the 
        flow of legitimate trade in accordance with section 5;
            (9) focus on the secure movement of containerized cargo;
            (10) consider the linkages between supply chain security 
        and security programs within other systems of movement, 
        including travel security and terrorist financing programs;
            (11) expand upon and relate to existing strategies and 
        plans, including the National Strategy for Maritime Security; 
        and
            (12) ensure that supply chain security mandates and 
        voluntary programs, to the extent practicable, provide even-
        handed treatment for affected parties of the same type, 
        regardless of the size of the particular business.
    (c) Update.--Not less than 3 years after the strategic plan is 
submitted under subsection (a), the Secretary shall submit an update of 
the strategic plan to appropriate congressional committees.
    (d) Consultations.--Consultations described in subsection (a) shall 
focus on--
            (1) designing measurable goals, including objectives, 
        mechanisms, and a schedule, for furthering the security of the 
        international supply chain;
            (2) identifying and addressing gaps in capabilities, 
        responsibilities, resources, or authorities;
            (3) identifying and streamlining unnecessary overlaps in 
        capabilities, responsibilities, or authorities; and
            (4) identifying and making recommendations regarding 
        legislative, regulatory, and organizational changes necessary 
        to improve coordination among the entities or to enhance the 
        security of the international supply chain.
    (e) Utilization of Advisory Committees.--As part of the 
consultative process, the Secretary shall utilize the Homeland Security 
Advisory Committee, the National Maritime Security Advisory Committee, 
and the Commercial Operations Advisory Committee to review the draft 
strategic plan and any subsequent update to that plan.
    (f) International Standards and Practices.--In furtherance of the 
strategic plan, the Secretary is encouraged to consider proposed or 
established standards and practices of foreign governments and 
international organizations, including, as appropriate, the 
International Maritime Organization, the World Customs Organization, 
the International Labor Organization, and the International 
Organization for Standardization to establish standards and best 
practices for the security of containers moving through the 
international supply chain.

SEC. 5. RESUMPTION OF TRADE.

    (a) In General.--The Secretary shall develop protocols for the 
resumption of trade through contingency and continuity planning that 
ensure trade lanes are restored as quickly as possible in the event of 
a transportation security incident that necessitates the suspension of 
trade.
    (b) Preferences.--In reestablishing the flow of cargo through ports 
of entry in the United States after a transportation security incident, 
the Secretary shall, to the extent practicable, give preference to 
vessels--
            (1) having a vessel security plan approved or accepted 
        under section 70103(c) of title 46, United States Code, or on a 
        vessel with a valid International Ship Security Certificate as 
        provided for under part 104 of title 33, Code of Federal 
        Regulations;
            (2) entering a port of entry directly from a foreign port 
        designated under CSI, from another foreign port, as determined 
        by the Secretary, or transiting from a United States port of 
        call;
            (3) operated by validated C-TPAT participants;
            (4) carrying GreenLane designated cargo; and
            (5) carrying commodities that the President determines to 
        be critical for response and recovery, such as military 
        shipments or necessary medical supplies.
    (c) Communication.--To the extent practicable, the protocols 
developed under subsection (a) shall provide for coordination with, and 
lines of communication between, appropriate Federal, State, local and 
private sector stakeholders on law enforcement actions, intermodal 
rerouting plans, and other strategic infrastructure issues.
    (d) Consultation.--In developing protocols under subsection (a), 
the Secretary shall consult with Federal, State, local and private 
sector stakeholders, including the National Maritime Security Advisory 
Committee and the Commercial Operations Advisory Committee.

SEC. 6. ENHANCEMENT TO TARGETING CAPABILITIES.

    (a) Plan for Improving the Automated Targeting System.--
            (1) Development and implementation.--Not later than 180 
        days after the date of enactment of this Act, the Secretary 
        shall develop and implement a plan for improving the Automated 
        Targeting System in accordance with this subsection.
            (2) Corrective actions.--The Secretary shall include--
                    (A) a schedule for completing all outstanding 
                corrective actions recommended by the Comptroller 
                General of the United States, the Inspector General of 
                the Department of the Treasury, and the Inspector 
                General of the Department with respect to the operation 
                of the Automated Targeting System; or
                    (B) an explanation for not taking corrective 
                actions.
            (3) Assessment of information submission requirements.--In 
        determining the viability of additional information submission 
        requirements, either by regulation or voluntary means, the 
        Secretary shall consider the cost, benefit, and feasibility 
        of--
                    (A) requiring additional nonmanifest documentation;
                    (B) reducing the time period allowed by law for 
                revisions to a container cargo manifest;
                    (C) reducing the time period allowed by law for 
                submission of entry data, or certain elements of such 
                data, for vessel or cargo; and
                    (D) such other actions the Secretary considers 
                beneficial for improving the information relied upon 
                for the Automated Targeting System and any other 
                targeting systems in furthering the security and 
                integrity of the international supply chain.
            (4) Consultations.--In assessing information submission 
        requirements, the Secretary shall consult with stakeholders, 
        including the Commercial Operations Advisory Committee, and 
        identify to them the need for such information, and the 
        appropriate timing of its submission.
            (5) Outside review.--The Secretary shall conduct, through 
        an independent panel, a review of the effectiveness and 
        capabilities of the Automated Targeting System and shall 
        include the results of such review in the report submitted 
        under paragraph (6).
            (6) Report.--The Secretary shall submit a report, 
        containing the plan developed under paragraph (1) and the 
        results of the review conducted under paragraph (5), to 
        appropriate congressional committees.
    (b) New or Expanded Information Submissions.--
            (1) In general.--Any additional information submissions 
        allowable within the Secretary's existing authority or 
        submitted voluntarily by supply chain participants shall be 
        transmitted in a secure fashion, as determined by the Secretary 
        and in accordance with this subsection, to protect the 
        information from unauthorized access.
            (2) Confidentiality of information.--Notwithstanding any 
        other provision of law, information that is required of, or 
        voluntarily submitted by, supply chain participants to the 
        Department for purposes of this section--
                    (A) shall be exempt from disclosure under section 
                552 of title 5, United States Code (commonly referred 
                to as the Freedom of Information Act);
                    (B) shall not, without the written consent of the 
                person or entity submitting such information, be used 
                directly by the Department or a third party, in any 
                civil action arising under Federal or State law if such 
                information is submitted in good faith; and
                    (C) shall not, without the written consent of the 
                person or entity submitting such information, be used 
                or disclosed by any officer or employee of the United 
                States for purposes other than the purposes of this 
                section, except--
                            (i) in furtherance of an investigation or 
                        other prosecution of a criminal act; or
                            (ii) when disclosure of the information 
                        would be--
                                    (I) to either House of Congress, or 
                                to the extent of matter within its 
                                jurisdiction, any committee or 
                                subcommittee thereof, any joint 
                                committee thereof or subcommittee of 
                                any such joint committee; or
                                    (II) to the Comptroller General, or 
                                any authorized representative of the 
                                Comptroller General, in the course of 
                                the performance of the duties of the 
                                Comptroller General.
            (3) Independently obtained information.--Nothing in this 
        subsection shall be construed to limit or otherwise affect the 
        ability of a Federal, State, or local, government entity, under 
        applicable law, to obtain supply chain security information, 
        including any information lawfully and properly disclosed 
        generally or broadly to the public and to use such information 
        in any manner permitted by law.
            (4) Penalties.--Any person who is an officer or employee of 
        the United States and knowingly publishes, divulges, discloses, 
        or makes known in any manner or to any extent not authorized by 
        law, any supply chain security information protected in this 
        section from disclosure, shall be--
                    (A) fined under title 18, United States Code, 
                imprisoned not more than 1 year, or both; and
                    (B) removed from office or employment.
            (5) Authority to issue warnings.--The Secretary may provide 
        advisories, alerts, and warnings to relevant companies, 
        targeted sectors, other governmental entities, or the general 
        public regarding potential risks to the supply chain as 
        appropriate. In issuing a warning under this paragraph, the 
        Secretary shall take appropriate actions to protect from 
        disclosure--
                    (A) the source of any voluntarily submitted supply 
                chain security information that forms the basis for the 
                warning; and
                    (B) information that is proprietary, business 
                sensitive, relates specifically to the submitting 
                person or entity, or is otherwise not appropriately in 
                the public domain.
    (c) Next Generation Targeting System.--
            (1) In general.--The Secretary shall consider future 
        iterations of the Automated Targeting System, which would 
        incorporate smart features, such as more rigorous algorithms 
        and real-time intelligence, instead of relying solely on rule 
        sets that are periodically updated.
            (2) Cooperation.--The Secretary shall work closely with 
        supply chain participants and foreign governments, to the 
        maximum extent practicable, in developing the next generation 
        targeting system.
            (3) Secure freight.--To implement the next generation 
        targeting system, the Secretary is authorized to initiate the 
        Secure Freight Program to improve the data collection process 
        by using alternative methods including third parties to 
        capture, collect, and transmit data related to the movement of 
        goods through the international supply chain.
            (4) Report.--Not later than 30 days before the initiation 
        of the Secure Freight Program in a pilot phase, the Secretary 
        shall submit a report, to appropriate congressional committees, 
        that contains a plan for the next generation targeting system, 
        including a schedule and concept of operations for initial and 
        full operating capability.

SEC. 7. UNIFORM DATA FOR GOVERNMENTWIDE USAGE.

    (a) Establishment.--The Secretary, in conjunction with 
representatives from the Department, the Department of Transportation, 
the Department of Health and Human Services, the Department of 
Agriculture, the Department of Commerce, the Department of State, the 
Department of Defense, the Department of Justice, the Department of the 
Interior, and other appropriate Federal agencies, as determined by the 
Secretary, shall 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 such data related to border security, trade, and public 
health and safety of international cargoes (referred to in this 
subsection as the ``International Trade Data System'').
    (b) Interagency Steering Group.--The Deputy Director for Management 
of the Office of Management and Budget (referred to in this subsection 
as the ``Deputy Director''), pursuant to responsibilities under chapter 
36 of title 44, United States Code, shall establish an executive level, 
interagency steering group (referred to in this subsection as the 
``Interagency Steering Group''), comprised of representatives of the 
departments listed in paragraph (1), to coordinate, the establishment, 
investment in, and implementation of the International Trade Data 
System.
    (c) Harmonized Data Set.--Not later than 1 year after the date of 
enactment of this Act, the Deputy Director, through the Interagency 
Steering Group, shall complete the development and publication of the 
harmonized data set of import and export information submitted to 
agencies with a presence at the international border of the United 
States.
    (d) Implementation.--
            (1) In general.--The Secretary and the Interagency Steering 
        Group, in consultation with private sector stakeholders, 
        including the Commercial Operations Advisory Committee, shall 
        develop the uniform data submission requirements, procedures, 
        and schedules for implementation.
            (2) Considerations.--In developing the submission 
        requirements, procedures and schedules, the Secretary shall 
        consider--
                    (A) the unique features of each mode of 
                transportation by which goods may be traveling;
                    (B) the appropriate timing for submission of data 
                during the importation or exportation process; and
                    (C) the appropriate party engaged in a particular 
                transaction to submit the data.
    (e) Joint Inspections Procedures.--The Deputy Director, through the 
Interagency Steering Group, shall develop plans for longer term uses of 
the International Trade Data System, including facilitating joint cargo 
inspections by multiple Federal agencies to meet their respective 
requirements in a more efficient manner.

SEC. 8. UNDER SECRETARY FOR POLICY.

    (a) Under Secretary for Policy.--The Homeland Security Act of 2002 
(6 U.S.C. 101 et seq.) is amended--
            (1) by redesignating title VI as title XVIII, and 
        transferring that title to the end of the Act;
            (2) in title XVIII, as redesignated, by redesignating 
        section 601 as section 1801; and
            (3) by inserting after title V the following:

                 ``TITLE VI--UNDER SECRETARY FOR POLICY

``SEC. 601. UNDER SECRETARY FOR POLICY.

    ``(a) In General.--There shall be in the Department an Under 
Secretary for Policy, who shall be appointed by the President, by and 
with the advice and consent of the Senate.
    ``(b) Responsibilities.--Subject to the direction, authority, and 
control of the Secretary, the Under Secretary for Policy shall be 
responsible for--
            ``(1) policy development within the Department, by--
                    ``(A) serving as the principal policy advisor to 
                the Secretary;
                    ``(B) providing overall direction and supervision 
                for policy development to programs, offices, and 
                activities of the Department;
                    ``(C) establishing and directing a formal 
                policymaking process for the Department;
                    ``(D) analyzing, evaluating, and reviewing 
                completed, ongoing, and proposed programs, to ensure 
                they are compatible with the statutory and regulatory 
                responsibilities of the Department and with the 
                Secretary's priorities, strategic plans, and policies; 
                and
                    ``(E) ensuring, in conjunction with other 
                Department officials, that the budget of the Department 
                (including the development of future year budgets) is 
                compatible with the statutory and regulatory 
                responsibilities of the Department and with the 
                Secretary's priorities, strategic plans, and policies;
            ``(2) strategic planning for the Department, by--
                    ``(A) conducting long-range, strategic planning for 
                the Department;
                    ``(B) preparing national and Department strategies, 
                as appropriate;
                    ``(C) conducting net assessments of issues facing 
                the Department; and
                    ``(D) conducting reviews of the Department to 
                ensure the implementation of this paragraph;
            ``(3) international issues of the Department, by--
                    ``(A) promoting informational and educational 
                exchange with nations friendly to the United States in 
                order to promote sharing of best practices and 
                technologies relating to homeland security, including--
                            ``(i) the exchange of information on 
                        research and development on homeland security 
                        technologies;
                            ``(ii) joint training exercises of first 
                        responders; and
                            ``(iii) exchanging expertise and 
                        information on terrorism prevention, response, 
                        and crisis management;
                    ``(B) identifying areas for homeland security 
                informational and training exchange where the United 
                States has a demonstrated weakness and another friendly 
                nation or nations have a demonstrated expertise;
                    ``(C) planning and carrying out international 
                conferences, exchange programs (including the exchange 
                of scientists, engineers, and other experts), and other 
                training activities; and
                    ``(D) managing international activities within the 
                Department in coordination with other Federal officials 
                with responsibility for counterterrorism matters; and
            ``(4) private sector coordination, by--
                    ``(A) creating and fostering strategic 
                communications with the private sector to enhance the 
                primary mission of the Department to protect the United 
                States;
                    ``(B) advising the Secretary on the impact of the 
                policies, regulations, processes, and actions of the 
                Department on the private sector;
                    ``(C) interfacing with other relevant Federal 
                agencies with homeland security missions to assess the 
                impact of the actions of such agencies on the private 
                sector;
                    ``(D) creating and managing private sector advisory 
                councils composed of representatives of industries and 
                associations designated by the Secretary--
                            ``(i) to advise the Secretary on private 
                        sector products, applications, and solutions as 
                        they relate to homeland security challenges; 
                        and
                            ``(ii) to advise the Secretary on homeland 
                        security policies, regulations, processes, and 
                        actions that affect the participating 
                        industries and associations.
                    ``(E) working with Federal laboratories, federally 
                funded research and development centers, other 
                federally funded organizations, academia, and the 
                private sector to develop innovative approaches to 
                address homeland security challenges to produce and 
                deploy the best available technologies for homeland 
                security missions;
                    ``(F) promoting existing public-private 
                partnerships and develop new public-private 
                partnerships to provide for collaboration and mutual 
                support to address homeland security challenges;
                    ``(G) assisting in the development and promotion of 
                private sector best practices to secure critical 
                infrastructure;
                    ``(H) coordinating industry efforts, with respect 
                to functions of the Department, to identify private 
                sector resources and capabilities that could be 
                effective in supplementing Federal, State, and local 
                government agency efforts to prevent or respond to a 
                terrorist attack; and
                    ``(I) coordinating among Department operating 
                entities and with the Assistant Secretary for Trade 
                Development of the Department of Commerce on issues 
                related to the travel and tourism industries.''.
    (b) Technical and Conforming Amendments.--The Homeland Security Act 
of 2002 (6 U.S.C. 101 et seq.) is amended--
            (1) in section 103--
                    (A) by redesignating paragraphs (6) through (10) as 
                paragraphs (7) through (11), respectively; and
                    (B) by inserting after paragraph (5) the following:
            ``(6) An Under Secretary for Policy.'';
            (2) by striking section 879; and
            (3) in the table of contents--
                    (A) by redesignating the items relating to title VI 
                and section 601 as items relating to title XVIII and 
                section 1801, respectively, and transferring such items 
                to the end of the table of contents;
                    (B) by striking the item relating to section 879; 
                and
                    (C) by inserting before the item relating to title 
                VII the following:

                 ``TITLE VI--UNDER SECRETARY FOR POLICY

``Sec. 601. Under Secretary for Policy.''.
    (c) Office of Cargo Security Policy.--
            (1) In general.--Subtitle C of title IV of the Homeland 
        Security Act of 2002 (6 U.S.C. 231 et seq.) is amended by 
        adding at the end the following:

``SEC. 431. OFFICE OF CARGO SECURITY POLICY.

    ``(a) Establishment.--There is established within the Department an 
Office of Cargo Security Policy (referred to in this section as the 
`Office').
    ``(b) Purpose.--The Office shall--
            ``(1) coordinate all Department policies and programs 
        relating to cargo security; and
            ``(2) consult with stakeholders and work with other Federal 
        agencies to establish standards and regulations and to promote 
        best practices.
    ``(c) Director.--
            ``(1) Appointment.--The Office shall be headed by a 
        Director, who shall--
                    ``(A) be appointed by the Secretary; and
                    ``(B) report to the Under Secretary for Policy.
            ``(2) Responsibilities.--The Director shall--
                    ``(A) advise the Secretary and the Under Secretary 
                for Policy regarding all aspects of Department programs 
                relating to cargo security;
                    ``(B) develop Department-wide policies regarding 
                cargo security;
                    ``(C) coordinate the cargo security policies and 
                programs of the Department with other executive 
                agencies, including by working with officials of the 
                Department of Energy and the Department of State, as 
                appropriate, in negotiating international agreements 
                relating to cargo security; and
                    ``(D) coordinate all programs of the Department 
                relating to cargo security.''.
            (2) Clerical amendment.--The table of contents of the 
        Homeland Security Act of 2002 (6 U.S.C. 101 et seq.) is amended 
        by inserting after the item relating to section 430 the 
        following:

``Sec. 431. Office of Cargo Security Policy.''.
    (d) Designation of Liaison Office of Department of State.--The 
Secretary of State shall designate a liaison office within the 
Department of State to assist the Secretary, as appropriate, in--
            (1) negotiating international agreements related to cargo 
        security;
            (2) conducting activities under this Act; and
            (3) carrying out related responsibilities, as assigned by 
        the Secretary of State.

SEC. 9. CONTAINER SECURITY STANDARDS AND PROCEDURES.

    (a) Establishment.--
            (1) Rulemaking.--Not later than 180 days after the date of 
        enactment of this Act, the Secretary shall establish, by 
        regulation, minimum standards and procedures for securing 
        containers in transit to an importer in the United States.
            (2) Information sources.--The Secretary shall use 
        information from C-TPAT, Operation Safe Commerce, any container 
        security program of the Directorate for Science and Technology 
        of the Department, and other security initiatives to establish 
        the standards and procedures described in paragraph (1). Such 
        standards and procedures may address operation, technology use, 
        and performance.
            (3) Deadline for enforcement.--Not later than 2 years after 
        the establishment of standards and procedures under subsection 
        (a), all containers bound for ports of entry in the United 
        States shall meet such standards and procedures.
    (b) Review and Enhancement.--The Secretary shall regularly--
            (1) review the standards and procedures established 
        pursuant to subsection (a); and
            (2) enhance the security standards and procedures, as 
        appropriate, based on tests of technologies as they become 
        commercially available to detect container intrusion and the 
        highest consequence threats, particularly weapons of mass 
        destruction, in accordance with section 15.
    (c) International Cargo Security Standards.--The Secretary, in 
consultation with the Secretary of State and the Secretary of Energy, 
is encouraged to promote and establish international standards for the 
security of containers moving through the international supply chain 
with foreign governments and international organizations, including the 
International Maritime Organization and the World Customs Organization.

SEC. 10. DOMESTIC RADIATION DETECTION AND IMAGING.

    (a) Examining Containers.--Not later than December 31, 2007, all 
containers entering the United States through the busiest 22 seaports 
of entry shall be examined for radiation.
    (b) Strategy.--The Secretary shall develop a strategy for the 
deployment of radiation detection capabilities that includes--
            (1) a risk-based prioritization of ports of entry at which 
        radiation detection equipment will be deployed;
            (2) a proposed time line of when radiation detection 
        equipment will be deployed at each of the ports of entry 
        identified under paragraph (1);
            (3) the type of equipment to be used at each of the ports 
        of entry identified under paragraph (1), including the joint 
        deployment and utilization of radiation detection equipment and 
        nonintrusive imaging equipment;
            (4) standard operating procedures for examining containers 
        with such equipment, including sensor alarming, networking and 
        communications and response protocols;
            (5) operator training plans;
            (6) an evaluation of the environmental health and safety 
        impacts of nonintrusive inspection technology;
            (7) the Department policy for the using nonintrusive 
        inspection equipment;
            (8) a classified annex that--
                    (A) details plans for covert testing; and
                    (B) outlines the risk-based prioritization of ports 
                of entry used under paragraph (1).
    (c) Report.--Not later than 90 days after the date of enactment of 
this Act, the Secretary shall submit the strategy developed under 
subsection (b) to appropriate congressional committees.
    (d) Update.--Not later than 180 days after the date of enactment of 
this Act, the Secretary may update the strategy submitted under 
subsection (c) to provide a more complete evaluation under subsection 
(b)(6).
    (e) Other WMD Threats.--Not later than 180 days after the date of 
enactment of this Act, the Secretary shall submit a strategy for the 
deployment of equipment to detect chemical, biological, and other 
weapons at all ports of entry into the United States to appropriate 
congressional committees.
    (f) Implementation.--Not later than 3 years after the date of 
enactment of this Act, the Secretary shall fully implement the strategy 
developed under subsection (b).

SEC. 11. CONTAINER SECURITY INITIATIVE.

    (a) Authorization.--The Secretary is authorized to establish and 
implement a program (to be known as the ``Container Security 
Initiative'' or ``CSI'') to identify and examine maritime containers 
that pose a security risk at foreign ports before the containers are 
shipped to the United States.
    (b) Assessment.--Before the Secretary designates any foreign port 
under CSI, the Secretary, in coordination with other Federal officials, 
as appropriate, shall conduct an assessment of the port to evaluate the 
costs, benefits, and other factors associated with such designation, 
including--
            (1) the level of risk for the potential compromise of 
        containers by terrorists or terrorist weapons;
            (2) the economic impact of cargo traveling from the foreign 
        port to the United States in terms of trade value and volume;
            (3) the results of the Coast Guard assessments conducted 
        pursuant to section 70108 of title 46, United States Code;
            (4) the capabilities and level of cooperation expected of 
        the government of the intended host country;
            (5) the willingness of the government of the intended host 
        country to permit validation of security practices within the 
        country in which the foreign port is located, for the purposes 
        of C-TPAT or similar programs; and
            (6) the potential for C-TPAT and GreenLane cargo traveling 
        through the foreign port.
    (c) Annual Report.--Not later than March 1 of each year in which 
the Secretary proposes to designate a foreign port under CSI, the 
Secretary shall submit a report, in classified or unclassified form, 
detailing the assessment of each foreign port the Secretary is 
considering designating under CSI, to appropriate congressional 
committees.
    (d) Current CSI Ports.--The report under subsection (c) shall 
include an annual assessment justifying the continuance of each port 
designated under CSI as of the date of enactment of this Act.
    (e) Designation of New Ports.--The Secretary shall not designate a 
foreign port under CSI unless the Secretary has completed the 
assessment required in subsection (b) for that port and submitted a 
report under subsection (c) that includes that port.
    (f) Negotiations.--The Secretary may request that the Secretary of 
State, in conjunction with the United States Trade Representative, 
enter into trade negotiations with the government of each foreign 
country with a port designated under CSI, as appropriate, to ensure 
full compliance with the requirements under CSI.
    (g) Inspections.--
            (1) Requirements and procedures.--The Secretary shall--
                    (A) establish technical capability requirements and 
                standard operating procedures for the use of 
                nonintrusive inspection and radiation detection 
                equipment in conjunction with CSI;
                    (B) require that the equipment operated at each 
                port designated under CSI be operated in accordance 
                with the requirements and procedures established under 
                subparagraph (A); and
                    (C) continually monitor the technologies, 
                processes, and techniques used to inspect cargo at 
                ports designated under CSI.
            (2) Considerations.--
                    (A) Consistency of standards and procedures.--In 
                establishing the technical capability requirements and 
                standard operating procedures under paragraph (1)(A), 
                the Secretary shall take into account any such relevant 
                standards and procedures utilized by other Federal 
                departments or agencies as well as those developed by 
                international bodies.
                    (B) Applicability.--The technical capability 
                requirements and standard operating procedures 
                established pursuant to paragraph (1)(A) shall not 
                apply to activities conducted under the Megaports 
                Initiative of the Department of Energy.
            (3) Foreign assistance.--
                    (A) In general.--The Secretary, in coordination 
                with the Secretary of State, the Secretary of Energy, 
                and other Federal agencies, shall identify foreign 
                assistance programs that could facilitate the 
                implementation of cargo security antiterrorism measures 
                at ports designated under CSI and foreign ports not 
                designated under CSI that lack effective antiterrorism 
                measures.
                    (B) Acquisition.--Notwithstanding any other 
                provision of law, the Secretary may--
                            (i) lease, loan, provide, or otherwise 
                        assist in the deployment of non-intrusive 
                        inspection and handheld radiation detection 
                        equipment at foreign air, land, and sea ports 
                        under such terms and conditions as the 
                        Secretary prescribes, including nonreimbursable 
                        loans or the transfer of ownership of 
                        equipment; and
                            (ii) provide training and technical 
                        assistance for domestic or foreign personnel 
                        responsible for operating or maintaining such 
                        equipment.
                    (C) Training.--The Secretary may provide training 
                on the use of inspection equipment, or other training 
                that the Secretary determines to be appropriate to 
                secure the international supply chain, to foreign 
                personnel at each port designated under CSI.
    (h) Personnel.--The Secretary shall--
            (1) annually assess the personnel needs at each port 
        designated under CSI;
            (2) deploy personnel in accordance with the assessment 
        under paragraph (1); and
            (3) consider the potential for remote targeting in 
        decreasing the number of personnel.
    (i) Pilot Integrated Scanning System.--
            (1) Designations.--Not later than 90 days after the date of 
        the enactment of this Act, the Secretary shall designate 3 
        foreign seaports through which containers pass or are 
        transshipped to the United States to pilot an integrated 
        scanning system that couples nonintrusive inspection equipment 
        and radiation detection equipment, which may be provided by the 
        Megaports Initiative of the Department of Energy. In making 
        designations under this paragraph, the Secretary shall consider 
        3 distinct ports with unique features and differing levels of 
        trade volume.
            (2) Collaboration and cooperation.--The Secretary shall 
        collaborate with the Secretary of Energy and cooperate with the 
        private sector and host foreign government to implement this 
        pilot.
            (3) Implementation.--Not later than 1 year after the date 
        of enactment of this Act, the Secretary shall achieve a full-
        scale implementation of the pilot integrated screening system, 
        which shall--
                    (A) scan all containers destined for the United 
                States that transit through the port;
                    (B) electronically transmit the images and 
                information to CSI personnel in the host country and 
                the National Targeting Center for evaluation and 
                analysis;
                    (C) utilize, to the maximum extent practicable, 
                container security devices or other container sealing 
                devices on all containers;
                    (D) resolve every radiation alarm according to 
                established Department procedures;
                    (E) utilize the information collected to enhance 
                the Automated Targeting System or other relevant 
                programs; and
                    (F) store the information for later retrieval and 
                analysis.
            (4) Report.--Not later than 120 days after achieving full-
        scale implementation under paragraph (3), the Secretary, in 
        consultation with the Secretary of Energy and the Secretary of 
        State, shall submit a report, to appropriate congressional 
        committees, that includes--
                    (A) an evaluation of the lessons derived from the 
                pilot program implemented under this subsection;
                    (B) an analysis of the efficacy of the Automated 
                Targeted System or other relevant programs in utilizing 
                the images captured to examine high-risk containers;
                    (C) an evaluation of software that is capable of 
                automatically identifying potential anomalies in 
                scanned containers; and
                    (D) a plan and schedule to expand this integrated 
                scanning system to other CSI ports.
            (5) Implementation.--As soon as practicable and possible, 
        an integrated scanning system shall be implemented to scan all 
        containers entering the United States prior to arrival in the 
        United States.

SEC. 12. CUSTOMS-TRADE PARTNERSHIP AGAINST TERRORISM.

    (a) In General.--
            (1) Authorization.--The Secretary is authorized to 
        establish a voluntary program (to be known as the ``Customs-
        Trade Partnership Against Terrorism'' or ``C-TPAT'') to 
        strengthen and improve the overall security of the 
        international supply chain and United States border security.
            (2) Minimum requirements.--The Secretary shall promulgate 
        regulations that describe the minimum requirements, program 
        tiers, and program benefits of C-TPAT.
    (b) Participation.--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 the Department.
    (c) Minimum Requirements.--An applicant seeking to participate in 
C-TPAT shall--
            (1) demonstrate a history of moving commerce in the 
        international supply chain to and from the United States;
            (2) conduct an assessment of its supply chains based upon 
        security criteria established by the Secretary, including--
                    (A) business partner requirements;
                    (B) container security;
                    (C) physical security and access controls;
                    (D) personnel security;
                    (E) procedural security;
                    (F) security training and threat awareness; and
                    (G) information technology security;
            (3) implement and maintain security measures and supply 
        chain security practices meeting security criteria; and
            (4) meet all other requirements established by the 
        Secretary.
    (d) Certification.--
            (1) Guidelines.--Not later than 180 days after the date of 
        enactment of this Act, the Secretary shall update guidelines 
        for certifying a participant's security measures and supply 
        chain security practices.
            (2) Tier one benefits.--The Secretary may offer limited 
        benefits to C-TPAT participants whose security measures and 
        supply chain security practices have been certified in 
        accordance with the guidelines established pursuant to 
        paragraph (1). Such benefits may not include reduced scores in 
        the Automated Targeting System.
    (e) Validation.--
            (1) In general.--Not later than 1 year after a C-TPAT 
        participant has been certified under subsection (d)(1), the 
        Secretary shall validate, directly or through certified third 
        parties (as provided under subsection (f)), the security 
        measures and supply chain security practices of that 
        participant. Such validation shall include visits to foreign 
        locations utilized by the C-TPAT participant as part of the 
        participant's supply chain or chains.
            (2) Guidelines.--Not later than 180 days after the date of 
        enactment of this Act, the Secretary shall update guidelines 
        for validating a participant's security measures and supply 
        chain security practices.
            (3) Consequences for failed validation.--If a C-TPAT 
        participant's security measures and supply chain security 
        practices fail to meet validation requirements--
                    (A) the participant may not receive the benefits of 
                validation; and
                    (B) the Commissioner of United States Customs and 
                Border Protection may deny the participant all benefits 
                under C-TPAT.
            (4) Right of appeal.--A C-TPAT participant described under 
        paragraph (3) may--
                    (A) file an appeal with the Secretary of the 
                Commissioner's decision under paragraph (3)(B) to deny 
                benefits under C-TPAT; and
                    (B) request revalidation.
            (5) Tier two benefits.--The Secretary shall extend benefits 
        to each participant who has been validated under this 
        subsection, which may include--
                    (A) reduced searches;
                    (B) priority processing for searches; and
                    (C) reduced scores in the Automated Targeting 
                System.
    (f) Third Party Certification.--
            (1) In general.--Not later than 1 year after the date of 
        enactment of this Act, the Secretary shall develop and issue 
        minimum standard operating procedures and requirements for 
        third parties to conduct validations of C-TPAT participants. 
        These third parties shall be certified and monitored as 
        outlined in this subsection.
            (2) Certification of third party entities.--The Secretary 
        shall issue a certificate of conformance to a third party to 
        conduct validations under this section if the third party--
                    (A) demonstrates to the satisfaction of the 
                Secretary that the third party is capable of performing 
                validations in accordance with standard operating 
                procedures and requirements;
                    (B) agrees to perform validations in accordance 
                with such standard operating procedures and 
                requirements;
                    (C) signs an agreement to protect all proprietary 
                information of C-TPAT participants with respect to 
                which the entity will conduct validations;
                    (D) has no beneficial interest in or any direct or 
                indirect control over the C-TPAT participant that is 
                contracting for the validation services; and
                    (E) has no other conflict of interest with respect 
                to the C-TPAT participant.
            (3) Monitoring.--The Secretary shall regularly monitor and 
        inspect the operations of a third party conducting validations 
        under this section to ensure that the third party is meeting 
        the minimum standard operating procedures and requirements for 
        the validation of C-TPAT participants established under 
        subsection (e) and all other applicable requirements for 
        validation services as determined by the Secretary.
            (4) Revocation.--If the Secretary finds that a third party 
        is not meeting the minimum standard operating procedures and 
        requirements, the Secretary shall--
                    (A) revoke the entity's certificate of conformance 
                issued under subsection; and
                    (B) review any validations conducted by the entity.
            (5) Validation decision.--The decision to designate a C-
        TPAT participant as a tier 2 or GreenLane member is solely 
        within the discretion of the Secretary or the Secretary's 
        designee.
            (6) Exclusion.--A certified third party may not determine 
        the status of a C-TPAT participant.
    (g) Revalidation.--The Secretary shall establish a process for 
revalidating C-TPAT participants. Such revalidation shall occur on the 
basis of risk not less frequently than once during every 4-year period 
following validation.

SEC. 13. GREENLANE DESIGNATION.

    (a) Establishment.--The Secretary shall establish a third tier of 
C-TPAT (referred to in this section as the ``GreenLane'') that offers 
additional benefits to validated C-TPAT participants that demonstrate a 
sustained commitment beyond the minimum requirements for participation 
in C-TPAT.
    (b) Basic Requirements.--The Secretary shall designate requirements 
for GreenLane participants, which shall include--
            (1) voluntary submission of additional data elements, as 
        determined by the Secretary and as informed by the plan 
        required under section 6 submitted on shipments before loading;
            (2) cargo is loaded at a port designated under CSI, or 
        other designated foreign port as determined by the Secretary, 
        for transit to the United States;
            (3) cargo is loaded on a vessel with a vessel security plan 
        approved or accepted under section 70103(c) of title 46, United 
        States Code, or on a vessel with a valid International Ship 
        Security Certificate as provided for under part 104 of title 
        33, Code of Federal Regulations;
            (4) the supply chain visibility procedures established by 
        the Secretary under subsection (f)(1)(A) are utilized;
            (5) container security devices meeting the standards and 
        procedures established by the Secretary under subsection 
        (f)(1)(B) are utilized;
            (6) cargo complies with additional security criteria 
        established by the Secretary beyond the minimum requirements 
        for C-TPAT participation under section 12(c), particularly in 
        the area of access controls; and
            (7) cargo complies with any other requirements determined 
        by the Secretary.
    (c) Non-Containerized Cargo.--The Secretary shall designate 
requirements for GreenLane participation specific to non-containerized 
cargoes. Nothing in this section shall be construed to preclude 
participation in GreenLane by importers of non-containerized cargoes 
that otherwise meet the requirements under this section.
    (d) Containers Transhipped Through Canada or Mexico Under 
GreenLane.--Containers entering the United States under GreenLane at a 
land border port of entry shall undergo the equivalent, appropriate 
level of scrutiny, through screening, examination, or search, as 
containers arriving at a United States port of entry from a foreign 
seaport, and as provided by bilateral commitments between the United 
States and Canada and the United States and Mexico, respectively.
    (e) Consequences for Lack of Compliance.--
            (1) In general.--Any participant whose security measures 
        and supply chain security practices have been found by the 
        Secretary to be out of compliance with any requirements of 
        GreenLane shall be denied all benefits under GreenLane.
            (2) Right of appeal.--GreenLane participants under 
        paragraph (1) shall have the right to appeal denial of benefits 
        decisions to the Secretary and request redesignation under 
        GreenLane.
    (f) Rulemaking.--
            (1) In general.--Not later than 1 year after the date of 
        enactment of this Act, the Secretary, in consultation with 
        private sector stakeholders, shall promulgate regulations that 
        establish--
                    (A) requirements for supply chain visibility 
                procedures;
                    (B) performance standards for container security 
                devices and protocols for their use; and
                    (C) any other GreenLane requirements that the 
                Secretary considers appropriate, including requirements 
                building upon security measures and supply chain 
                security best practices contained in the C-TPAT minimum 
                requirements set forth in section 12(c).
            (2) Benefits.--Not later than 2 years after the date of 
        enactment of this Act, the Secretary, in consultation with the 
        Commercial Operations Advisory Committee, shall promulgate 
        regulations providing benefits for participation in GreenLane, 
        which may include--
                    (A) the expedited release of GreenLane cargo into 
                destination ports within the United States during all 
                threat levels designated by the Secretary or the 
                Commandant of the Coast Guard;
                    (B) reduced or eliminated bonding requirements for 
                GreenLane cargo;
                    (C) preference to vessels (as described in section 
                5(b));
                    (D) further reduced inspections;
                    (E) priority processing for inspections;
                    (F) further reduced scores in the Automated 
                Targeting System; and
                    (G) streamlined billing of any customs duties or 
                fees.
            (3) Other modes of transportation.--The Secretary shall 
        consider establishment of GreenLane requirements and benefits 
        for cargo entering the United States by non-maritime modes of 
        transportation.

SEC. 14. JOINT OPERATIONS CENTER.

    (a) Establishment.--Not later than 3 years after the date of 
enactment of this Act, the Secretary shall establish joint operation 
centers for maritime and cargo security to--
            (1) enhance information sharing;
            (2) facilitate day-to-day operational coordination; and
            (3) in the case of a maritime transportation security 
        incident, facilitate incident management and response.
    (b) Organization.--To the extent practicable, a joint operations 
center shall be colocated with the command center for each Coast Guard 
sector and shall utilize existing facilities. The Secretary may utilize 
virtual connectivity to accomplish the goals of this section.
    (c) Participation.--The following entities shall participate in 
each joint operations center for maritime and cargo security:
            (1) The United States Coast Guard.
            (2) United States Customs and Border Protection.
            (3) United States Immigration and Customs Enforcement.
            (4) The Department of Defense, as appropriate.
            (5) The Federal Bureau of Investigation.
            (6) Other Federal agencies with a presence at a particular 
        port, as appropriate, or as otherwise selected by the 
        Secretary.
            (7) State, local, and international law enforcement and 
        first responder agencies responsible for the port, as 
        appropriate, or as otherwise selected by the Secretary.
            (8) Port authority representatives, maritime exchanges, 
        private sector stakeholders, and other entities subject to an 
        Area Maritime Security Plan, as selected by the Secretary.
    (d) Responsibilities.--Each joint operations center for maritime 
and cargo security shall--
            (1) assist, as appropriate, in the implementation of 
        maritime transportation security plans developed under section 
        70103 of title 46, United States Code;
            (2) assist, as appropriate, in the implementation of 
        transportation security incident response plans required under 
        section 70104 of such title;
            (3) carry out information sharing activities consistent 
        with those required under section 1016 of the National Security 
        Intelligence Reform Act of 2004 (6 U.S.C. 485) and the Homeland 
        Security Information Sharing Act (6 U.S.C. 481 et seq.);
            (4) conduct, as appropriate to the vessel traffic criteria 
        within the center's area of responsibility, short- and long-
        range vessel tracking under sections 70114 and 70115 of such 
        title 46, United States Code;
            (5) facilitate communication and coordination with private 
        sector stakeholders during a transportation security incident 
        involving the port; and
            (6) carry out such other responsibilities as determined by 
        the Secretary.
    (e) Security Clearances.--The Secretary shall sponsor and expedite 
individuals participating in the joint operations centers in gaining or 
maintaining their security clearances. Through the Captain of the Port, 
the Secretary may identify key individuals who should participate. In 
addition, the port or other entities may appeal to the Captain of the 
Port for sponsorship.
    (f) Security Incidents.--During a transportation security incident 
involving the port, the Coast Guard Captain of the Port designated by 
the Commandant of the Coast Guard shall act as the initial incident 
commander, unless otherwise directed by the President.
    (g) Rule of Construction.--Nothing in this section shall be 
construed to affect the standard command and control procedures for 
operational entities in the Department, unless so directed by the 
Secretary.
    (h) Implementation.--Not later than 180 days after the date of 
enactment of this Act, the Secretary shall submit an implementation 
plan for this section, to appropriate congressional committees, which 
describes, for each joint operations center--
            (1) the location;
            (2) the specific participating entities;
            (3) the implementation costs; and
            (4) the necessary resources for operation and maintenance, 
        including the cost-sharing requirements for other agencies and 
        participants.

SEC. 15. RESEARCH, DEVELOPMENT, TEST, AND EVALUATION.

    (a) Reauthorization of Homeland Security Science and Technology 
Advisory Committee.--
            (1) In general.--Section 311(j) of the Homeland Security 
        Act of 2002 (6 U.S.C. 191(j)) is amended by striking ``3 years 
        after the effective date of this Act'' and inserting ``on 
        December 31, 2008''.
            (2) Effective date and application.--The amendment made by 
        paragraph (1) shall be effective as if enacted on the date of 
        enactment of the Homeland Security Act of 2002.
            (3) Advisory committee.--The Under Secretary for Science 
        and Technology shall utilize the Homeland Security Science and 
        Technology Advisory Committee, as appropriate, to provide 
        outside expertise in advancing cargo security technology.
    (b) Duties of Secretary.--The Secretary shall--
            (1) direct research, development, test, and evaluation 
        efforts in furtherance of maritime and cargo security;
            (2) encourage the ingenuity of the private sector in 
        developing and testing technologies and process innovations in 
        furtherance of these objectives; and
            (3) evaluate such technologies.
    (c) Coordination.--The Secretary, acting through the Under 
Secretary for Science and Technology, in consultation with the Under 
Secretary for Policy, the Director of Cargo Security Policy, and the 
Chief Financial Officer, shall ensure that--
            (1) research, development, test, and evaluation efforts 
        funded by the Department in furtherance of maritime and cargo 
        security are coordinated to avoid duplication of efforts; and
            (2) the results of such efforts are shared throughout the 
        Department, as appropriate.
    (d) Operation Safe Commerce.--
            (1) In general.--Not later than 1 year after the date of 
        enactment of this Act, the Secretary shall initiate a grant 
        program, as part of Operation Safe Commerce, to--
                    (A) integrate nonintrusive inspection and radiation 
                detection equipment with automatic identification 
                methods for containers, vessels, and vehicles;
                    (B) test physical access control protocols and 
                technologies;
                    (C) create a data sharing network capable of 
                transmitting in a secure manner, data regarding the 
                movement of cargo in the international supply chain 
                submitted by entities participating in the 
                international supply chain to the Department for use in 
                targeting efforts; and
                    (D) otherwise further maritime and cargo security, 
                as determined by the Secretary.
            (2) Supply chain security for special container and 
        noncontainerized cargo.--The Secretary shall consider 
        demonstration projects that further the security of the 
        international supply chain for special container cargo, 
        including refrigerated containers, and noncontainerized cargo, 
        including roll-on/roll-off, break-bulk, liquid, and dry bulk 
        cargo.
            (3) Competitive selection process.--The Secretary shall 
        select grant recipients under paragraph (1) through a 
        competitive process based on--
                    (A) the extent to which the applicant can 
                demonstrate that personnel, laboratory, and 
                organizational resources will be available to the 
                applicant to carry out the activities authorized under 
                this subsection;
                    (B) the applicant's capability to provide 
                leadership in making national and regional 
                contributions to the solution of maritime and cargo 
                security issues;
                    (C) the extent to which the applicant's programs, 
                projects, and activities under the grant will address 
                highest risk priorities as determined by the Secretary; 
                and
                    (D) any other criteria the Secretary determines to 
                be appropriate.
            (4) Administrative provisions.--
                    (A) Prohibition on duplication of effort.--Before 
                awarding any grant under this subsection, the Secretary 
                shall coordinate with other Federal departments and 
                agencies to ensure the grant will not duplicate work 
                already being carried out with Federal funding.
                    (B) Accounting, reporting, and review procedures.--
                The Secretary shall establish accounting, reporting, 
                and review procedures to ensure that--
                            (i) amounts made available under this 
                        subsection are used for the purpose for which 
                        such amounts were made available;
                            (ii) amounts made available under this 
                        subsection are properly accounted for; and
                            (iii) amounts not used for such purpose and 
                        amounts not expended are recovered.
                    (C) Record keeping.--Grant recipients under this 
                subsection shall--
                            (i) maintain all records related to 
                        expenditures and obligations of amounts 
                        provided under the grant; and
                            (ii) make such records available upon 
                        request to the Secretary for audit and 
                        examination.
                    (D) Review.--The Secretary shall annually review 
                the programs, projects, and activities carried out 
                using amounts made available under grants awarded under 
                this subsection to ensure that obligations and 
                expenditures of such amounts are consistent with the 
                purposes for which such amounts are made available.
            (5) Annual report.--Not later than March 1 of each year, 
        the Secretary shall submit a report detailing the results of 
        Operation Safe Commerce to appropriate congressional 
        committees.
    (e) GreenLane Technology.--The Secretary shall, not less frequently 
than once every 2 years--
            (1) review the technology requirements and standards 
        established under section 10; and
            (2) test future supply chain visibility procedures, 
        container security devices, and other systems as they become 
        commercially available to track and secure containers and the 
        smallest exterior packaging units loaded into containers.

SEC. 16. PORT SECURITY GRANT PROGRAM.

    (a) Grants Authorized.--The Secretary, acting through the Office 
for Domestic Preparedness, shall establish a grant program to allocate 
Federal financial assistance, on the basis of risk and need--
            (1) to mitigate risks as identified by the Secretary;
            (2) to help implement Area Maritime Transportation Security 
        plans required under section 70103(b) of title 46, United 
        States Code;
            (3) to correct port security vulnerabilities identified 
        through vulnerability assessments approved by the Secretary; or
            (4) to non-Federal projects contributing to the overall 
        security of an individual port or the system of ports in the 
        United States, as determined by the Secretary.
    (b) Grantee Selection.--In awarding grants under this Act, the 
Secretary shall--
            (1) take into account national economic and strategic 
        defense considerations of individual ports;
            (2) strongly encourage efforts to promote--
                    (A) integration of port-wide security, including 
                supply chain initiatives;
                    (B) information and intelligence sharing; and
                    (C) joint efforts, such as joint operations 
                centers, among all port stakeholders; and
            (3) consider funding major projects in phases over multiple 
        years.
    (c) Multiple Phase Projects.--
            (1) Funding limitation.--Not more than 20 percent of the 
        total grant funds awarded under this section in any fiscal year 
        may be awarded for projects that span multiple years.
            (2) Priority.--In determining grant recipients under this 
        section, the Secretary may give preference to continuing to 
        fund multiyear projects that have previously received funding 
        under this section.
    (d) Use of Funds.--Grants awarded under this section may be used--
            (1) to mitigate risks, as identified by the Secretary;
            (2) to help implement Area Maritime Transportation Security 
        Plans required under section 70103(b) of title 46, United 
        States Code;
            (3) to correct port security vulnerabilities identified 
        through vulnerability assessments approved by the Secretary;
            (4) for the salaries, benefits, overtime compensation, and 
        other costs of additional security personnel for State and 
        local agencies for activities required by the Area Maritime 
        Security Plan for a port area if--
                    (A) the Secretary increases the threat level under 
                the Homeland Security Advisory System to Code Orange or 
                Code Red;
                    (B) the Commandant of the Coast Guard raises the 
                Maritime Security level to MARSEC Level 2 or 3; or
                    (C) the Secretary otherwise authorizes such costs;
            (5) for the cost of acquisition, operation, and maintenance 
        of equipment that contributes to the overall security of the 
        port area, as identified in the Area Maritime Security Plan if 
        the need is based upon vulnerability assessments approved by 
        the Secretary or identified in the Area Maritime Security Plan;
            (6) to purchase or upgrade equipment, including computer 
        software;
            (7) to establish or enhance mechanisms for information 
        sharing, including classified information;
            (8) to develop joint operations centers (as described in 
        section 14) that bring together Federal, State, and local 
        officials and stakeholders into a common operation center that 
        is focused on area maritime and cargo security;
            (9) to conduct vulnerability assessments approved by the 
        Secretary; and
            (10) to conduct port-wide exercises to strengthen emergency 
        preparedness of Federal, State, and local officials responsible 
        for port security, including law enforcement personnel and 
        firefighters and other first responders, in support of the Area 
        Maritime Security Plan.
    (e) Prohibited Uses.--Grants awarded under this section may not be 
used to--
            (1) construct buildings or other physical facilities, 
        except those otherwise authorized under section 611 of the 
        Robert T. Stafford Disaster Relief and Emergency Assistance Act 
        (42 U.S.C. 5121 et seq.), including those facilities in support 
        of subsection (d)(5), and specifically approved by the 
        Secretary; or
            (2) acquire land, unless such use is specifically approved 
        by the Secretary in support of subsection (d)(5).
    (f) Matching Requirements.--Except as provided in paragraph (2), 
Federal funds for any eligible project under this section shall be 
determined by the Secretary.
    (g) Application.--
            (1) In general.--Any entity subject to an Area Maritime 
        Transportation Security Plan may submit an application for a 
        grant under this section, at such time, in such form, and 
        containing such information and assurances as the Secretary, 
        working through the Office for Domestic Preparedness, may 
        require.
            (2) Minimum standards for payment or reimbursement.--Each 
        application submitted under paragraph (1) shall include--
                    (A) a comprehensive description of--
                            (i) the need for the project;
                            (ii) the methodology for coordinating the 
                        project into the security of the greater port 
                        area, as identified in the Area Maritime 
                        Security Plan;
                            (iii) any existing cooperation agreements 
                        with other port facilities, vessels, or 
                        organizations that benefit security of the 
                        entire port; and
                            (iv) the applicability of the project to 
                        the Area Maritime Transportation Security Plan; 
                        and
                    (B) a determination by the Captain of the Port that 
                the security project--
                            (i) addresses or corrects port security 
                        vulnerabilities identified by the Coast Guard, 
                        or through port security vulnerability 
                        assessments approved by the Secretary; and
                            (ii) helps to ensure compliance with the 
                        Area Maritime Transportation Security Plan.
            (3) Procedural safeguards.--The Secretary, in consultation 
        with the Office of the Inspector General, shall issue 
        guidelines to establish appropriate accounting, reporting, and 
        review procedures to ensure that--
                    (A) grant funds are used for the purposes for which 
                they were made available;
                    (B) grantees have properly accounted for all 
                expenditures of grant funds; and
                    (C) grant funds not used for such purposes and 
                amounts not obligated or expended are returned.
            (4) Project approval required.--The Secretary may not award 
        a grant under this section unless the Secretary determines 
        that--
                    (A) the project to be carried out with such grant 
                funding--
                            (i) is consistent with vulnerability 
                        assessments approved by the Secretary;
                            (ii) supports cooperation or integration of 
                        Federal, State, local, and industry 
                        stakeholders in the port area; and
                            (iii) helps to implement the Area Maritime 
                        Transportation Security Plan;
                    (B) sufficient funding is available to meet the 
                matching requirement described under subsection (d);
                    (C) the project will be completed without 
                unreasonable delay; and
                    (D) the recipient has authority to carry out the 
                proposed project.
    (h) Coordination and Cooperation.--The Secretary--
            (1) shall ensure that all projects that receive grant 
        funding under this section within any area defined in an Area 
        Maritime Transportation Security Plan are coordinated with 
        other projects in such area; and
            (2) may require cooperative agreements among users of the 
        port and port facilities with respect to projects funded under 
        this section.
    (i) Audits and Examinations.--All grantees under this section shall 
maintain such records as the Secretary may require and make such 
records available for review and audit by the Secretary, the 
Comptroller General of the United States, or the Inspector General of 
the Department.
    (j) Annual Reports.--Not later than 1 year after the date of 
enactment of this Act, and annually thereafter until October 1, 2013, 
the Secretary shall submit an unclassified report describing the 
progress made in meeting the objectives of the port security grant 
program established under this section to appropriate congressional 
committees.
    (k) Risk Assessments.--The Secretary shall make available to grant 
applicants a risk assessment tool, which uses standardized risk 
criteria, such as the Maritime Security Risk Assessment Model used by 
the Coast Guard.

SEC. 17. DEADLINE FOR TRANSPORTATION SECURITY CARDS.

    Section 70105 of title 46, United States Code, is amended--
            (1) in subsection (a)(1), by striking ``The Secretary shall 
        prescribe'' and inserting ``Not later than December 1, 2006, 
        the Secretary shall prescribe final''; and
            (2) in subsection (c)--
                    (A) in paragraph (2), by striking ``The Secretary 
                shall prescribe'' and inserting ``Not later than 
                December 1, 2006, the Secretary shall prescribe 
                final''; and
                    (B) in paragraph (3), by striking ``The Secretary'' 
                and inserting ``Not later than December 1, 2006, the 
                Secretary''.

SEC. 18. AUTHORIZATION OF APPROPRIATIONS.

    (a) Improvements to Automated Targeting System.--There are 
authorized to be appropriated $5,000,000 for each of the fiscal years 
2007 through 2012 to carry out the provisions of section 6(a).
    (b) Office of Cargo Security Policy.--There are authorized to be 
appropriated for each of the fiscal years 2007 through 2012--
            (1) $4,000,000 to carry out the amendment made by section 
        8(c); and
            (2) $1,000,000 to carry out the provisions of section 8(d).
    (c) Container Security Initiative.--There are authorized to be 
appropriated $175,000,000 for each of the fiscal years 2007 through 
2012 to carry out the provisions of section 11.
    (d) Customs-Trade Partnership Against Terrorism.--There are 
authorized to be appropriated $75,000,000 for each of the fiscal years 
2007 through 2012 to carry out the provisions of section 12.
    (e) GreenLane Designation.--There are authorized to be appropriated 
$50,000,000 for each of the fiscal years 2007 through 2012 to carry out 
the provisions of section 13.
    (f) Incident Response.--
            (1) In general.--There are authorized to be appropriated 
        $100,000,000 for each of the fiscal years 2007 through 2012 to 
        carry out the provisions of section 14.
            (2) Budget analysis.--Not later than 180 days after the 
        date of enactment of this Act, the Secretary shall submit a 
        budget analysis for implementing the provisions of section 14, 
        including additional cost-sharing arrangements with other 
        Federal departments and other participants involved in the 
        joint operation centers, to appropriate congressional 
        committees.
    (g) Operation Safe Commerce.--There are authorized to be 
appropriated $25,000,000 for each of fiscal years 2007 through 2012 to 
carry out the provisions of section 15(d).
    (h) Port Security Grant Program.--There are authorized to be 
appropriated $400,000,000 for each of fiscal years 2007 through 2012 to 
carry out the grant program established under section 16.
    (i) Other Provisions.--There are authorized to be appropriated such 
sums as may be necessary for each of fiscal years 2007 through 2012 to 
carry out the provisions of this Act not otherwise provided for under 
this section.
    (j) Source of Funds.--Amounts authorized to be appropriated under 
this section shall originate from duties collected by United States 
Customs and Border Protection.
                                                       Calendar No. 424

109th CONGRESS

  2d Session

                                S. 2459

_______________________________________________________________________

                                 A BILL

           To improve cargo security, and for other purposes.

_______________________________________________________________________

                              May 5, 2006

                       Reported with an amendment
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