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

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, and Mr. Lieberman) 
introduced the following bill; which was read twice and referred to the 
        Committee on Homeland Security and Governmental Affairs

_______________________________________________________________________

                                 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,

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. Strategy.
Sec. 5. Under Secretary for Policy.
Sec. 6. Container security standards and procedures.
Sec. 7. Radiation detection and radiation safety.
Sec. 8. Container Security Initiative.
Sec. 9. Customs-Trade Partnership Against Terrorism.
Sec. 10. GreenLane designation.
Sec. 11. Joint operations center.
Sec. 12. Research, development, test, and evaluation.
Sec. 13. Port Security Grant Program.
Sec. 14. 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 2004, approximately 9,700,000 shipping containers 
        came into the United States through the Nation's seaports, 
        averaging nearly 27,000 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. 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.
            (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.''.
            (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.
            (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.
            (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''.
            (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.
            (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--
                    (A) only 17.5 percent of the cargo that the Bureau 
                of Customs and Border Protection had identified as 
                high-risk is inspected overseas;
                    (B) equipment, such as radiation detection devices 
                and nonintrusive imaging machines, used overseas for 
                inspections are untested and of unknown quality;
                    (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;
                    (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;
                    (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
                    (F) the validation procedures and requirements are 
                not sufficiently rigorous to ensure the C-TPAT member's 
                security procedures are adequate.
            (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).''.
            (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.
            (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--
                    (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.
            (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.
            (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.

SEC. 3. DEFINITIONS.

    In this Act:
            (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.
            (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).
            (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.
            (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.
            (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.
            (6) Department.--The term ``Department'' means the 
        Department of Homeland Security.
            (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.
            (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.
            (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.
            (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.
            (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.
            (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.
            (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.
            (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.
            (15) Secretary.--The term ``Secretary'' means the Secretary 
        of Homeland Security.
            (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).
            (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.
            (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.

SEC. 4. STRATEGY.

    (a) Strategic Plan.--
            (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--
                    (A) the Committee on Homeland Security and 
                Governmental Affairs of the Senate;
                    (B) the Committee on Appropriations of the Senate;
                    (C) the Committee on Homeland Security of the House 
                of Representatives; and
                    (D) the Committee on Appropriations of the House of 
                Representatives.
            (2) Content.--The strategic plan submitted under paragraph 
        (1) shall--
                    (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;
                    (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;
                    (C) build on available resources and consider costs 
                and benefits;
                    (D) identify mandatory, baseline security goals, 
                and the minimum container security standards and 
                procedures described in section 6;
                    (E) provide incentives for additional voluntary 
                measures to enhance cargo security, as determined by 
                the Secretary and under the GreenLane Program under 
                section 10;
                    (F) include a process for sharing intelligence and 
                information with private sector stakeholders to assist 
                in their security efforts;
                    (G) identify a framework for prudent and measured 
                response in the event of a transportation security 
                incident involving the international supply chain;
                    (H) provide a plan for the expeditious resumption 
                of the flow of legitimate trade in accordance with 
                paragraph (3);
                    (I) focus on the secure movement of containerized 
                cargo through the international supply chain; and
                    (J) expand upon and relate to existing strategies 
                and plans, including the National Strategy for Maritime 
                Security.
            (3) Resumption of trade.--
                    (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.
                    (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--
                            (i) having a vessel security plan approved 
                        or accepted under section 70103(c) of title 46, 
                        United States Code;
                            (ii) entering a port of entry directly from 
                        a foreign port designated under CSI or from 
                        another foreign port, as determined by the 
                        Secretary;
                            (iii) operated by validated C-TPAT 
                        participants; and
                            (iv) carrying GreenLane designated cargo.
            (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.
            (5) Consultations.--Consultations described in paragraph 
        (1) shall focus on--
                    (A) designing measurable goals, including 
                objectives, mechanisms, and a schedule, for furthering 
                the security of the international supply chain;
                    (B) identifying and addressing gaps in 
                capabilities, responsibilities, or authorities;
                    (C) identifying and streamlining unnecessary 
                overlaps in capabilities, responsibilities, or 
                authorities; and
                    (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.
            (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.
            (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.
    (b) Improvements to Automated Targeting System.--
            (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.
            (2) Contents.--
                    (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.
                    (B) Information submissions.--In developing the 
                plan under paragraph (1), the Secretary shall consider 
                the cost, benefit, and feasibility of--
                            (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;
                            (ii) reducing the time period allowed by 
                        law for revisions to a container cargo 
                        manifest;
                            (iii) reducing the time period allowed by 
                        law for submission of entry data for vessel or 
                        cargo; and
                            (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.
                    (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).
                    (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.
            (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).
            (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.
    (c) Uniform Data for Government-Wide Usage.--
            (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'').
            (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.
            (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.
            (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.
            (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.

SEC. 5. 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 and section 601 as title 
        XVIII and section 1801, respectively, and transferring that 
        title to the end of the Act; and
            (2) 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 responsibilities of the Under Secretary 
for Policy shall be as follows:
            ``(1) Policy.--
                    ``(A) To serve as the principal policy advisor to 
                the Secretary.
                    ``(B) To provide overall direction and supervision 
                for policy development to programs, offices, and 
                activities of the Department.
                    ``(C) To establish and direct a formal policymaking 
                process for the Department.
                    ``(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.
            ``(2) Strategic planning.--
                    ``(A) To conduct long-range, strategic planning for 
                the Department.
                    ``(B) To prepare national and Department 
                strategies, as appropriate.
                    ``(C) To conduct net assessments of issues facing 
                the Department.
                    ``(D) To conduct reviews of the Department to 
                ensure the implementation of this paragraph.
            ``(3) International responsibilities.--
                    ``(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--
                            ``(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) 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.
                    ``(C) To plan and undertake international 
                conferences, exchange programs (including the exchange 
                of scientists, engineers, and other experts), and other 
                training activities.
                    ``(D) To manage international activities within the 
                Department in coordination with other Federal officials 
                with responsibility for counterterrorism matters.
            ``(4) Private sector.--
                    ``(A) To create and foster strategic communications 
                with the private sector to enhance the primary mission 
                of the Department to protect the American homeland.
                    ``(B) To advise the Secretary on the impact of the 
                policies, regulations, processes, and actions of the 
                Department on the private sector.
                    ``(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.
                    ``(D) To create and manage 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) 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.
                    ``(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.
                    ``(G) To assist in the development and promotion of 
                private sector best practices to secure critical 
                infrastructure.
                    ``(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.
                    ``(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.''.
    (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 the items 
                relating to that title and section 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.--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; and
                    ``(D) coordinate all programs of the Department 
                relating to cargo security.''.
    (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.

SEC. 6. CONTAINER SECURITY STANDARDS AND PROCEDURES.

    (a) Establishment.--
            (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.
            (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.
            (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 11.
    (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.

SEC. 7. RADIATION DETECTION AND RADIATION SAFETY.

    (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.
    (b) Strategy.--
            (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--
                    (A) the Committee on Homeland Security and 
                Governmental Affairs of the Senate;
                    (B) the Committee on Appropriations of the Senate;
                    (C) the Committee on Homeland Security of the House 
                of Representatives; and
                    (D) the Committee on Appropriations of the House of 
                Representatives.
            (2) Contents.--The strategy submitted under paragraph (1) 
        shall include--
                    (A) the type of equipment to be used;
                    (B) standard operating procedures for examining 
                containers with such equipment;
                    (C) a plan detailing the environmental health and 
                safety impacts of nonintrusive inspection technology;
                    (D) the Department policy for the using 
                nonintrusive inspection equipment; and
                    (E) a classified annex that details plans for 
                covert testing.
    (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--
            (1) details the health and safety impacts of nonintrusive 
        inspection technology; and
            (2) describes the policy of the Bureau of Customs and 
        Border Protection for using nonintrusive inspection equipment.

SEC. 8. 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 risk for terrorism 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 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--
            (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 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 intended host country;
            (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;
            (6) the potential for amending trade agreements to reflect 
        participation in CSI; and
            (7) the potential for C-TPAT and GreenLane cargo traveling 
        from 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--
            (1) the Committee on Homeland Security and Governmental 
        Affairs of the Senate;
            (2) the Committee on Appropriations of the Senate;
            (3) the Committee on Homeland Security of the House of 
        Representatives; and
            (4) the Committee on Appropriations of the House of 
        Representatives.
    (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 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.
    (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 each port designated under CSI to 
                operate the equipment 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) 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.--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.
                    (C) Training.--The Secretary may provide training 
                on the use of equipment 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.

SEC. 9. 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) 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).
            (3) 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;
            (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 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.
            (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 the Bureau of 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) 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.

SEC. 10. 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.--Designated GreenLane participants shall 
ensure that--
            (1) entry data is submitted on shipments before loading;
            (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;
            (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;
            (4) cargo is made available for screening and examination 
        before loading using technologies, processes or techniques, as 
        determined by the Secretary;
            (5) the supply chain visibility procedures established by 
        the Secretary are utilized;
            (6) container security devices meeting the standards and 
        procedures established by the Secretary are utilized;
            (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
            (8) cargo complies with any other requirements determined 
        by the Secretary.
    (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.
    (d) 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 the 
        GreenLane program 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.
    (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.
    (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--
            (1) the Committee on Homeland Security and Governmental 
        Affairs of the Senate;
            (2) the Committee on Appropriations of the Senate;
            (3) the Committee on Homeland Security of the House of 
        Representatives; and
            (4) the Committee on Appropriations of the House of 
        Representatives.
    (g) 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;
                    (C) procedures for overseas screening and 
                examination of GreenLane containers; and
                    (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).
            (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--
                    (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 
                4(e)(B));
                    (D) further reduced searches;
                    (E) priority processing for searches;
                    (F) further reduced scores in the Automated 
                Targeting System; and
                    (G) streamlined billing of any customs duties or 
                fees.

SEC. 11. 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 transportation security incident, 
        facilitate incident management and response.
    (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).
    (c) Participation.--The following entities shall participate in 
each joint operations center for maritime and cargo security:
            (1) The United States Coast Guard.
            (2) The Bureau of Customs and Border Protection.
            (3) The Bureau of 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) implement the 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 short- and long-range vessel tracking under 
        sections 70114 and 70115 of such title 46, United States Code; 
        and
            (5) 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 in each joint operations center for 
maritime security shall act as the incident commander, unless otherwise 
directed under the National Response Plan.
    (g) Implementation.--
            (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--
                    (A) the Committee on Homeland Security and 
                Governmental Affairs of the Senate;
                    (B) the Committee on Appropriations of the Senate;
                    (C) the Committee on Homeland Security of the House 
                of Representatives; and
                    (D) the Committee on Appropriations of the House of 
                Representatives.
            (2) Contents.--The report submitted under paragraph (1) 
        shall describe, for each joint operations center--
                    (A) the location;
                    (B) the specific participating entities;
                    (C) the implementation costs; and
                    (D) the necessary resources for operation and 
                maintenance, including the cost-sharing requirements 
                for other agencies and participants.

SEC. 12. 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 grant 
        projects, as part of Operation Safe Commerce, that--
                    (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 data required by entities participating in 
                the international supply chain from every intermodal 
                transfer point to the National Targeting Center of the 
                Department; 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) Annual report.--Not later than March 1 of each year, 
        the Secretary shall submit a report detailing the results of 
        Operation Safe Commerce to--
                    (A) the Committee on Homeland Security and 
                Governmental Affairs of the Senate;
                    (B) the Committee on Homeland Security of the House 
                of Representatives;
                    (C) the Committee on Appropriations of the Senate; 
                and
                    (D) the Committee on Appropriations of the House of 
                Representatives.
    (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. 13. PORT SECURITY GRANT PROGRAM.

    (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--
            (1) to help implement Area Maritime Transportation Security 
        plans required under section 70103(b) of title 46, United 
        States Code;
            (2) to correct port security vulnerabilities identified 
        through vulnerability assessments approved by the Secretary; or
            (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.
    (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 help implement Area Maritime Transportation Security 
        Plans required under section 70103(b) of title 46, United 
        States Code;
            (2) to correct port security vulnerabilities identified 
        through vulnerability assessments approved by the Secretary;
            (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--
                    (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;
            (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;
            (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;
            (6) to conduct vulnerability assessments approved by the 
        Secretary; and
            (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.
    (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 regarding 
the progress made in meeting the objectives of the port security grant 
program established under this section to--
            (1) the Committee on Homeland Security and Governmental 
        Affairs of the Senate;
            (2) the Committee on Homeland Security of the House of 
        Representatives;
            (3) the Committee on Appropriations of the Senate; and
            (4) the Committee on Appropriations of the House of 
        Representatives.

SEC. 14. 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 4(b).
    (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 
        5(a); and
            (2) $1,000,000 to carry out the provisions of section 5(b).
    (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.
    (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.
    (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.
    (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 11.
            (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--
                    (A) the Committee on Homeland Security and 
                Governmental Affairs of the Senate;
                    (B) the Committee on Appropriations of the Senate;
                    (C) the Committee on Homeland Security of the House 
                of Representatives; and
                    (D) the Committee on Appropriations of the House of 
                Representatives.
    (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).
    (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.
    (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 the Bureau of 
Customs and Border Protection.
                                 <all>
```