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retary shall implement the plan developed under this sec-
tion.
SEC. 1435. RAILROAD HIGH HAZARD MATERIAL TRACKING.
(a) WIRELESS COMMUNICATIONS.—
(1) IN GENERAL.—In conjunction with the re-
search and development program established under
section 1425 and consistent with the results of re-
search relating to wireless tracking technologies, the
Secretary, in consultation with the Assistant Sec-
retary of Homeland Security (Transportation Secu-
rity Administration), shall develop a program that
will encourage the equipping of rail cars transporting
high hazard materials (as defined in section 1411 of
this title) with technology that provides—
(A) car position location and tracking ca-
pabilities; and
(B) notification of rail car depressurization,
breach, unsafe temperature, or release of haz-
ardous materials.
(2) COORDINATION.—In developing the program
required by paragraph (1), the Secretary shall—
(A) consult with the Secretary of Transpor-
tation to coordinate the program with any ongo-
ing or planned efforts for rail car tracking at the
Department of Transportation; and
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(B) ensure that the program is consistent
with recommendations and findings of the De-
partment of Homeland Security’s hazardous ma-
terial tank rail car tracking pilot programs.
(b) FUNDING.—Out of funds appropriated pursuant to
section 114(w) of title 49, United States Code, as amended
by section 1437 of this title, there shall be made available
to the Secretary to carry out this section $3,000,000 for each
of fiscal years 2008, 2009, and 2010.
SEC. 1436. UNIFIED CARRIER REGISTRATION SYSTEM PLAN
AGREEMENT.
(a) IN GENERAL.—Notwithstanding section 4305(a) of
the SAFETEA–LU Act (Public Law 109–59)—
(1) section 14504 of title 49, United States Code,
as that section was in effect on December 31, 2006,
is re-enacted, effective as of January 1, 2007; and
(2) no fee shall be collected pursuant to section
14504a of title 49, United States Code, until 30 days
after the date, as determined by the Secretary of
Transportation, on which—
(A) the unified carrier registration system
plan and agreement required by that section has
been fully implemented; and
(B) the fees have been set by the Secretary
under subsection (d)(7)(B) of that section.
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(b) REPEAL OF SECTION 14504.—Section 14504 of
title 49, United States Code, as re-enacted by this Act, is
repealed effective on the date on which fees may be collected
under section 14504a of title 49, United States Code, pursu-
ant to subsection (a)(2) of this section.
SEC. 1437. AUTHORIZATION OF APPROPRIATIONS.
(a) TRANSPORTATION SECURITY ADMINISTRATION AU-
THORIZATION.—Section 114 of title 49, United States Code,
as amended by section 1432, is amended by adding at the
end thereof the following:
‘‘(w) AUTHORIZATION
OF APPROPRIATIONS.—There
are authorized to be appropriated to the Secretary of Home-
land Security for rail security—
‘‘(1) $205,000,000 for fiscal year 2008;
‘‘(2) $166,000,000 for fiscal year 2009; and
‘‘(3) $166,000,000 for fiscal year 2010.’’.
(b) DEPARTMENT OF TRANSPORTATION.—There are
authorized to be appropriated to the Secretary of Transpor-
tation to carry out this title and sections 20118 and 24316
of title 49, United States Code, as added by this title—
(1) $121,000,000 for fiscal year 2008;
(2) $118,000,000 for fiscal year 2009;
(3) $118,000,000 for fiscal year 2010; and
(4) $118,000,000 for fiscal year 2011.
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SEC. 1438. APPLICABILITY OF DISTRICT OF COLUMBIA LAW
TO CERTAIN AMTRAK CONTRACTS.
Section 24301 of title 49, United States Code, is
amended by adding at the end the following:
‘‘(o) APPLICABILITY
OF
DISTRICT
OF
COLUMBIA
LAW.—Any lease or contract entered into between the Na-
tional Railroad Passenger Corporation and the State of
Maryland, or any department or agency of the State of
Maryland, after the date of the enactment of this subsection
shall be governed by the laws of the District of Columbia.’’.
PART II—IMPROVED MOTOR CARRIER, BUS, AND
HAZARDOUS MATERIAL SECURITY
SEC. 1441. HAZARDOUS MATERIALS HIGHWAY ROUTING.
(a) ROUTE PLAN GUIDANCE.—Within 1 year after the
date of enactment of this Act, the Secretary of Transpor-
tation, in consultation with the Secretary, shall—
(1) document existing and proposed routes for
the transportation of radioactive and non-radioactive
hazardous materials by motor carrier, and develop a
framework for using a Geographic Information Sys-
tem-based approach to characterize routes in the Na-
tional Hazardous Materials Route Registry;
(2) assess and characterize existing and proposed
routes for the transportation of radioactive and non-
radioactive hazardous materials by motor carrier for
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the purpose of identifying measurable criteria for se-
lecting routes based on safety and security concerns;
(3) analyze current route-related hazardous ma-
terials regulations in the United States, Canada, and
Mexico to identify cross-border differences and con-
flicting regulations;
(4) document the concerns of the public, motor
carriers, and State, local, territorial, and tribal gov-
ernments about the highway routing of hazardous ma-
terials for the purpose of identifying and mitigating
security risks associated with hazardous material
routes;
(5) prepare guidance materials for State officials
to assist them in identifying and reducing both safety
concerns and security risks when designating highway
routes for hazardous materials consistent with the 13
safety-based non-radioactive materials routing cri-
teria and radioactive materials routing criteria in
subpart C part 397 of title 49, Code of Federal Regu-
lations;
(6) develop a tool that will enable State officials
to examine potential routes for the highway transpor-
tation of hazardous material and assess specific secu-
rity risks associated with each route and explore al-
ternative mitigation measures; and
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(7) transmit to the Senate Committee on Com-
merce, Science, and Transportation, and the House of
Representatives Committee on Transportation and
Infrastructure a report on the actions taken to fulfill
paragraphs (1) through (6) of this subsection and any
recommended changes to the routing requirements for
the highway transportation of hazardous materials in
part 397 of title 49, Code of Federal Regulations.
(b) ROUTE PLANS.—
(1) ASSESSMENT.—Within 1 year after the date
of enactment of this Act, the Secretary of Transpor-
tation shall complete an assessment of the safety and
national security benefits achieved under existing re-
quirements for route plans, in written or electronic
format, for explosives and radioactive materials. The
assessment shall, at a minimum—
(A) compare the percentage of Department
of Transportation recordable incidents and the
severity of such incidents for shipments of explo-
sives and radioactive materials for which such
route plans are required with the percentage of
recordable incidents and the severity of such in-
cidents for shipments of explosives and radio-
active materials not subject to such route plans;
and
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(B) quantify the security and safety bene-
fits, feasibility, and costs of requiring each motor
carrier that is required to have a hazardous ma-
terial safety permit under part 385 of title 49,
Code of Federal Regulations, to maintain, follow,
and carry such a route plan that meets the re-
quirements of section 397.101 of that title when
transporting the type and quantity of hazardous
materials described in section 385.403 of that
title, taking into account the various segments of
the trucking industry, including tank truck,
truckload and less than truckload carriers.
(2) REPORT.—Within 1 year after the date of
enactment of this Act, the Secretary of Transportation
shall submit a report to the Senate Committee on
Commerce, Science, and Transportation, and the
House of Representatives Committee on Transpor-
tation and Infrastructure containing the findings and
conclusions of the assessment.
(c) REQUIREMENT.—The Secretary shall require motor
carriers that have a hazardous material safety permit
under part 385 of title 49, Code of Federal Regulations,
to maintain, follow, and carry a route plan, in written or
electronic format, that meets the requirements of section
397.101 of that title when transporting the type and quan-
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tity of hazardous materials described in section 385.403 of
that title if the Secretary determines, under the assessment
required in subsection (b), that such a requirement would
enhance the security and safety of the nation without im-
posing unreasonable costs or burdens upon motor carriers.
SEC. 1442. MOTOR CARRIER HIGH HAZARD MATERIAL
TRACKING.
(a) COMMUNICATIONS.—
(1) IN GENERAL.—Consistent with the findings
of the Transportation Security Administration’s
Hazmat Truck Security Pilot Program and within 6
months after the date of enactment of this Act, the
Secretary, through the Transportation Security Ad-
ministration and in consultation with the Secretary
of Transportation, shall develop a program to facili-
tate the tracking of motor carrier shipments of high
hazard materials, as defined in this title, and to
equip vehicles used in such shipments with technology
that provides—
(A) frequent or continuous communications;
(B) vehicle position location and tracking
capabilities; and
(C) a feature that allows a driver of such
vehicles to broadcast an emergency message.
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(2) CONSIDERATIONS.—In developing the pro-
gram required by paragraph (1), the Secretary
shall—
(A) consult with the Secretary of Transpor-
tation to coordinate the program with any ongo-
ing or planned efforts for motor carrier or high
hazardous materials tracking at the Department
of Transportation;
(B) 
take 
into 
consideration 
the 
rec-
ommendations and findings of the report on the
Hazardous Material Safety and Security Oper-
ation Field Test released by the Federal Motor
Carrier Safety Administration on November 11,
2004; and
(C) evaluate—
(i) any new information related to the
costs and benefits of deploying, equipping,
and utilizing tracking technology, including
portable tracking technology, for motor car-
riers transporting high hazard materials
not included in the Hazardous Material
Safety and Security Operation Field Test
Report released by the Federal Motor Car-
rier Safety Administration on November 11,
2004;
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(ii) the ability of tracking technology
to resist tampering and disabling;
(iii) the capability of tracking tech-
nology to collect, display, and store infor-
mation regarding the movement of ship-
ments of high hazard materials by commer-
cial motor vehicles;
(iv) the appropriate range of contact
intervals between the tracking technology
and a commercial motor vehicle trans-
porting high hazard materials;
(v) technology that allows the installa-
tion by a motor carrier of concealed and
portable electronic devices on commercial
motor vehicles that can be activated by law
enforcement authorities to disable the vehi-
cle and alert emergency response resources
to locate and recover high hazard materials
in the event of loss or theft of such mate-
rials; and
(vi) whether installation of the tech-
nology described in clause (v) should be in-
corporated into the program under para-
graph (1);
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(vii) the costs, benefits, and practi-
cality of such technology described in clause
(v) in the context of the overall benefit to
national security, including commerce in
transportation; and
(viii) other systems the Secretary deter-
mines appropriate.
(b) REGULATIONS.—Not later than 1 year after the
date of the enactment of this Act, the Secretary, through
the Transportation Security Administration, shall promul-
gate regulations to carry out the provisions of subsection
(a).
(c) FUNDING.—There are authorized to be appro-
priated to the Secretary to carry out this section,
$7,000,000 for each of fiscal years 2008, 2009, and 2010,
of which—
(1) $3,000,000 per year may be used for equip-
ment; and
(2) $1,000,000 per year may be used for oper-
ations.
(d) REPORT.—Within 1 year after the issuance of reg-
ulations under subsection (b), the Secretary shall issue a
report to the Senate Committee on Commerce, Science, and
Transportation, the Senate Committee on Homeland Secu-
rity and Governmental Affairs and the House Committee
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on Homeland Security on the program developed and eval-
uation carried out under this section.
(e) LIMITATION.—The Secretary may not mandate the
installation or utilization of the technology described under
(a)(2)(C)(v) without additional congressional action on
that matter.
SEC. 1443. MEMORANDUM OF AGREEMENT.
Similar to the other security annexes between the 2
departments, within 1 year after the date of enactment of
this Act, the Secretary of Transportation and the Secretary
shall execute and develop an annex to the memorandum of
agreement between the 2 departments signed on September
28, 2004, governing the specific roles, delineations of re-
sponsibilities, resources and commitments of the Depart-
ment of Transportation and the Department of Homeland
Security, respectively, in addressing motor carrier trans-
portation security matters, including the processes the de-
partments will follow to promote communications, effi-
ciency, and nonduplication of effort.
SEC. 1444. HAZARDOUS MATERIALS SECURITY INSPEC-
TIONS AND ENFORCEMENT.
(a) IN GENERAL.—The Secretary shall establish a pro-
gram within the Transportation Security Administration,
in consultation with the Secretary of Transportation, for
reviewing hazardous materials security plans required
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under part 172, title 49, Code of Federal Regulations, with-
in 180 days after the date of enactment of this Act. In estab-
lishing the program, the Secretary shall ensure that—
(1) the program does not subject carriers to un-
necessarily duplicative reviews of their security plans
by the 2 departments; and
(2) a common set of standards is used to review
the security plans.
(b) CIVIL PENALTY.—The failure, by an offerer, car-
rier, or other person subject to part 172 of title 49, Code
of Federal Regulations, to comply with any applicable sec-
tion of that part within 180 days after being notified by
the Secretary of such failure to comply, is punishable by
a civil penalty imposed by the Secretary under title 49,
United States Code. For purposes of this subsection, each
day of noncompliance after the 181st day following the date
on which the offerer, carrier, or other person received notice
of the failure shall constitute a separate failure.
(c) COMPLIANCE REVIEW.—In reviewing the compli-
ance of hazardous materials offerers, carriers, or other per-
sons subject to part 172 of title 49, Code of Federal Regula-
tions, with the provisions of that part, the Secretary shall
utilize risk assessment methodologies to prioritize review
and enforcement actions of the highest risk hazardous mate-
rials transportation operations.
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(d) TRANSPORTATION COSTS STUDY.—Within 1 year
after the date of enactment of this Act, the Secretary of
Transportation, in conjunction with the Secretary, shall
study to what extent the insurance, security, and safety
costs borne by railroad carriers, motor carriers, pipeline
carriers, air carriers, and maritime carriers associated
with the transportation of hazardous materials are reflected
in the rates paid by offerers of such commodities as com-
pared to the costs and rates respectively for the transpor-
tation of non-hazardous materials.
(e) FUNDING.—There are authorized to be appro-
priated to the Secretary to carry out this section—
(1) $2,000,000 for fiscal year 2008;
(2) $2,000,000 for fiscal year 2009; and
(3) $2,000,000 for fiscal year 2010.
SEC. 1445. TRUCK SECURITY ASSESSMENT.
Not later than 1 year after the date of enactment of
this Act, the Secretary, in consultation with the Secretary
of Transportation, shall transmit to the Senate Committee
on Commerce, Science, and Transportation, Senate Com-
mittee on Finance, the House of Representatives Committee
on Transportation and Infrastructure, the House of Rep-
resentatives Committee on Homeland Security, and the
House of Representatives Committee on Ways and Means,
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a report on security issues related to the trucking industry
that includes—
(1) an assessment of actions already taken to ad-
dress identified security issues by both public and
private entities;
(2) an assessment of the economic impact that
security upgrades of trucks, truck equipment, or truck
facilities may have on the trucking industry and its
employees, including independent owner-operators;
(3) an assessment of ongoing research and the
need for additional research on truck security;
(4) an assessment of industry best practices to
enhance security; and
(5) an assessment of the current status of secure
motor carrier parking.
SEC. 1446. NATIONAL PUBLIC SECTOR RESPONSE SYSTEM.
(a) DEVELOPMENT.—The Secretary, in conjunction
with the Secretary of Transportation, shall consider the de-
velopment of a national public sector response system to re-
ceive security alerts, emergency messages, and other infor-
mation used to track the transportation of high hazard ma-
terials which can provide accurate, timely, and actionable
information to appropriate first responder, law enforcement
and public safety, and homeland security officials, as ap-
propriate, regarding accidents, threats, thefts, or other safe-
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ty and security risks or incidents. In considering the devel-
opment of this system, they shall consult with law enforce-
ment and public safety officials, hazardous material ship-
pers, motor carriers, railroads, organizations representing
hazardous material employees, State transportation and
hazardous materials officials, private for-profit and non-
profit emergency response organizations, and commercial
motor vehicle and hazardous material safety groups. Con-
sideration of development of the national public sector re-
sponse system shall be based upon the public sector response
center developed for the Transportation Security Adminis-
tration hazardous material truck security pilot program
and hazardous material safety and security operational
field test undertaken by the Federal Motor Carrier Safety
Administration.
(b) CAPABILITY.—The national public sector response
system to be considered shall be able to receive, as
appropriate—
(1) negative driver verification alerts;
(2) out-of-route alerts;
(3) driver panic or emergency alerts; and
(4) tampering or release alerts.
(c) CHARACTERISTICS.—The national public sector re-
sponse system to be considered shall—
(1) be an exception-based system;
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(2) be integrated with other private and public
sector operation reporting and response systems and
all Federal homeland security threat analysis systems
or centers (including the National Response Center);
and
(3) provide users the ability to create rules for
alert notification messages.
(d) CARRIER PARTICIPATION.—The Secretary shall co-
ordinate with motor carriers and railroads transporting
high hazard materials, entities acting on their behalf who
receive communication alerts from motor carriers or rail-
roads, or other Federal agencies that receive security and
emergency related notification regarding high hazard mate-
rials in transit to facilitate the provisions of the informa-
tion listed in subsection (b) to the national public sector
response system to the extent possible if the system is estab-
lished.
(e) DATA PRIVACY.—ional public sector response sys-
tem shall be designed to ensure appropriate protection of
data and information relating to motor carriers, railroads,
and employees.
(f) REPORT.—Not later than 180 days after the date
of enactment of this Act, the Secretary shall transmit to
the Senate Committee on Commerce, Science, and Trans-
portation, the House of Representatives Committee on
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Transportation and Infrastructure, and the House of Rep-
resentatives Committee on Homeland Security a report on
whether to establish a national public sector response system
and the estimated total public and private sector costs to
establish and annually operate such a system, together with
any recommendations for generating private sector partici-
pation and investment in the development and operation
of such a system.
(g) FUNDING.—There are authorized to be appro-
priated to the Secretary to carry out this section—
(1) $1,000,000 for fiscal year 2008;
(2) $1,000,000 for fiscal year 2009; and
(3) $1,000,000 for fiscal year 2010.
SEC. 1447. OVER-THE-ROAD BUS SECURITY ASSISTANCE.
(a) IN GENERAL.—The Secretary shall establish a pro-
gram within the Transportation Security Administration
for making grants to private operators of over-the-road
buses or over-the-road bus terminal operators for the pur-
poses of emergency preparedness drills and exercises, pro-
tecting high risk/high consequence assets identified through
system-wide risk assessment, counter-terrorism training,
visible/unpredictable deterrence, public awareness and pre-
paredness campaigns, and including—
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(1) constructing and modifying terminals, ga-
rages, facilities, or over-the-road buses to assure their
security;
(2) protecting or isolating the driver;
(3) acquiring, upgrading, installing, or oper-
ating equipment, software, or accessorial services for
collection, storage, or exchange of passenger and driv-
er information through ticketing systems or otherwise,
and information links with government agencies;
(4) training employees in recognizing and re-
sponding to security risks, evacuation procedures,
passenger screening procedures, and baggage inspec-
tion;
(5) hiring and training security officers;
(6) installing cameras and video surveillance
equipment on over-the-road buses and at terminals,
garages, and over-the-road bus facilities;
(7) creating a program for employee identifica-
tion or background investigation;
(8) establishing and upgrading emergency com-
munications tracking and control systems; and
(9) implementing and operating passenger
screening programs at terminals and on over-the-road
buses.
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(b) DUE CONSIDERATION.—In making grants under
this section, the Secretary shall give due consideration to
private operators of over-the-road buses that have taken
measures to enhance bus transportation security from those
in effect before September 11, 2001, and shall prioritize
grant funding based on the magnitude and severity of the
security risks to bus passengers and the ability of the funded
project to reduce, or respond to, that risk.
(c) GRANT REQUIREMENTS.—A grant under this sec-
tion shall be subject to all the terms and conditions that
a grant is subject to under section 3038(f) of the Transpor-
tation Equity Act for the 21st Century (49 U.S.C. 5310
note; 112 Stat. 393).
(d) PLAN REQUIREMENT.—
(1) IN GENERAL.—The Secretary may not make
a grant under this section to a private operator of
over-the-road buses until the operator has first sub-
mitted to the Secretary—
(A) a plan for making security improve-
ments described in subsection (a) and the Sec-
retary has reviewed or approved the plan; and
(B) such additional information as the Sec-
retary may require to ensure accountability for
the obligation and expenditure of amounts made
available to the operator under the grant.
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(2) COORDINATION.—To the extent that an ap-
plication for a grant under this section proposes secu-
rity improvements within a specific terminal owned
and operated by an entity other than the applicant,
the applicant shall demonstrate to the satisfaction of
the Secretary that the applicant has coordinated the
security improvements for the terminal with that en-
tity.
(e) OVER-THE-ROAD BUS DEFINED.—In this section,
the term ‘‘over-the-road bus’’ means a bus characterized by
an elevated passenger deck located over a baggage compart-
ment.
(f) BUS SECURITY ASSESSMENT.—
(1) IN GENERAL.—Not later than 1 year after
the date of enactment of this Act, the Secretary shall
transmit to the Senate Committee on Commerce,
Science, and Transportation, the House of Represent-
atives Committee on Transportation and Infrastruc-
ture, and the House of Representatives Committee on
Homeland Security a report in accordance with the
requirements of this section.
(2) CONTENTS
OF
REPORT.—The report shall
include—
(A) an assessment of the over-the-road bus
security grant program;
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(B) an assessment of actions already taken
to address identified security issues by both pub-
lic and private entities and recommendations on
whether additional safety and security enforce-
ment actions are needed;
(C) an assessment of whether additional leg-
islation is needed to provide for the security of
Americans traveling on over-the-road buses;
(D) an assessment of the economic impact
that security upgrades of buses and bus facilities
may have on the over-the-road bus transpor-
tation industry and its employees;
(E) an assessment of ongoing research and
the need for additional research on over-the-road
bus security, including engine shut-off mecha-
nisms, chemical and biological weapon detection
technology, 
and 
the 
feasibility 
of
compartmentalization of the driver;
(F) an assessment of industry best practices
to enhance security; and
(G) an assessment of school bus security, if
the Secretary deems it appropriate.
(3) CONSULTATION WITH INDUSTRY, LABOR, AND
OTHER GROUPS.—In carrying out this section, the
Secretary shall consult with over-the-road bus man-
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agement and labor representatives, public safety and
law enforcement officials, and the National Academy
of Sciences.
(g) FUNDING.—
(1) IN GENERAL.—There are authorized to be ap-
propriated to the Secretary to carry out this section—
(A) $12,000,000 for fiscal year 2008;
(B) $25,000,000 for fiscal year 2009; and
(C) $25,000,000 for fiscal year 2010.
(2) AVAILABILITY OF APPROPRIATED FUNDS.—
Amounts appropriated pursuant to paragraph (1)
shall remain available until expended.
SEC. 1448. PIPELINE SECURITY AND INCIDENT RECOVERY
PLAN.
(a) IN GENERAL.—The Secretary, in consultation with
the Secretary of Transportation and the Pipeline and Haz-
ardous Materials Safety Administration, and in accordance
with the Memorandum of Understanding Annex executed
on August 9, 2006, shall develop a Pipeline Security and
Incident Recovery Protocols Plan. The plan shall include—
(1) a plan for the Federal Government to provide
increased security support to the most critical inter-
state and intrastate natural gas and hazardous liquid
transmission pipeline infrastructure and operations
as determined under section 1449—
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(A) at severe security threat levels of alert;
or
(B) when specific security threat informa-
tion relating to such pipeline infrastructure or
operations exists; and
(2) an incident recovery protocol plan, developed
in conjunction with interstate and intrastate trans-
mission and distribution pipeline operators and ter-
minals and facilities operators connected to pipelines,
to develop protocols to ensure the continued transpor-
tation of natural gas and hazardous liquids to essen-
tial markets and for essential public health or na-
tional defense uses in the event of an incident affect-
ing the interstate and intrastate natural gas and haz-
ardous liquid transmission and distribution pipeline
system, which shall include protocols for granting ac-
cess to pipeline operators for pipeline infrastructure
repair, replacement or bypass following an incident.
(b) EXISTING PRIVATE
AND PUBLIC SECTOR EF-
FORTS.—The plan shall take into account actions taken or
planned by both private and public entities to address iden-
tified pipeline security issues and assess the effective inte-
gration of such actions.
(c) CONSULTATION.—In developing the plan under
subsection (a), the Secretary shall consult with the Sec-
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retary of Transportation, interstate and intrastate trans-
mission and distribution pipeline operators, pipeline labor,
first responders, shippers, State pipeline safety agencies,
public safety officials, and other relevant parties.
(d) REPORT.—
(1) CONTENTS.—Not later than 2 years after the
date of enactment of this Act, the Secretary shall
transmit to the Committee on Commerce, Science,
and Transportation of the Senate, the Committee on
Homeland Security of the House of Representatives,
and the Committee on Transportation and Infrastruc-
ture of the House of Representatives a report con-
taining the plan required by subsection (a), along
with an estimate of the private and public sector costs
to implement any recommendations.
(2) FORMAT.—The Secretary may submit the re-
port in both classified and redacted formats if the
Secretary determines that such action is appropriate
or necessary.
SEC. 1449. PIPELINE SECURITY INSPECTIONS AND EN-
FORCEMENT.
(a) IN GENERAL.—Within 1 year after the date of en-
actment of this Act, the Secretary, in consultation with the
Secretary of Transportation, shall establish a program for
reviewing pipeline operator adoption of recommendations
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in the September 5, 2002, Department of Transportation
Research and Special Programs Administration Pipeline
Security Information Circular, including the review of
pipeline security plans and critical facility inspections.
(b) REVIEW AND INSPECTION.—Within 9 months after
the date of enactment of this Act, the Secretary and the Sec-
retary of Transportation shall develop and implement a
plan for reviewing the pipeline security plan and an in-
spection of the critical facilities of the 100 most critical
pipeline operators covered by the September 5, 2002, cir-
cular, where such facilities have not been inspected for secu-
rity purposes since September 5, 2002, by either the Depart-
ment of Homeland Security or the Department of Transpor-
tation.
(c) COMPLIANCE REVIEW METHODOLOGY.—In review-
ing pipeline operator compliance under subsections (a) and
(b), risk assessment methodologies shall be used to prioritize
risks and to target inspection and enforcement actions to
the highest risk pipeline assets.
(d) REGULATIONS.—Within 1 year after the date of
enactment of this Act, the Secretary and the Secretary of
Transportation shall develop and transmit to pipeline oper-
ators security recommendations for natural gas and haz-
ardous liquid pipelines and pipeline facilities. If the Sec-
retary determines that regulations are appropriate, the Sec-
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retary shall consult with the Secretary of Transportation
on the extent of risk and appropriate mitigation measures,
and the Secretary or the Secretary of Transportation, con-
sistent with the memorandum of understanding annex
signed on August 9, 2006, shall promulgate such regulations
and carry out necessary inspection and enforcement ac-
tions. Any regulations should incorporate the guidance pro-
vided to pipeline operators by the September 5, 2002, De-
partment of Transportation Research and Special Pro-
grams Administration’s Pipeline Security Information Cir-
cular and contain additional requirements as necessary
based upon the results of the inspections performed under
subsection (b). The regulations shall include the imposition
of civil penalties for non-compliance.
(e) FUNDING.—There are authorized to be appro-
priated to the Secretary to carry out this section—
(1) $2,000,000 for fiscal year 2008; and
(2) $2,000,000 for fiscal year 2009.
SEC. 1450. TECHNICAL CORRECTIONS.
Section 5103a of title 49, United States Code, is
amended—
(1) by inserting ‘‘of Homeland Security’’ after
‘‘Secretary’’ each place it appears in subsections
(a)(1), (d)(1)(b), and (e); and
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(2) by redesignating subsection (h) as subsection
(i), and inserting the following after subsection (g):
‘‘(h) RELATIONSHIP TO TRANSPORTATION SECURITY
CARDS.—Upon application, a State shall issue to an indi-
vidual a license to operate a motor vehicle transporting in
commerce a hazardous material without the security assess-
ment required by this section, provided the individual meets
all other applicable requirements for such a license, if the
Secretary of Homeland Security has previously determined,
under section 70105 of title 46, United States Code, that
the individual does not pose a security risk.’’.
SEC. 1451. CERTAIN PERSONNEL LIMITATIONS NOT TO
APPLY.
Any statutory limitation on the number of employees
in the Transportation Security Administration of the De-
partment of Transportation, before or after its transfer to
the Department of Homeland Security, does not apply to
the extent that any such employees are responsible for im-
plementing the provisions of this title.
SEC. 1452. MARITIME AND SURFACE TRANSPORTATION SE-
CURITY USER FEE STUDY.
(a) IN GENERAL.—The Secretary of Homeland Secu-
rity shall conduct a study of the need for, and feasibility
of, establishing a system of maritime and surface transpor-
tation-related user fees that may be imposed and collected
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as a dedicated revenue source, on a temporary or con-
tinuing basis, to provide necessary funding for legitimate
improvements to, and maintenance of, maritime and sur-
face transportation security. In developing the study, the
Secretary shall consult with maritime and surface trans-
portation carriers, shippers, passengers, facility owners and
operators, and other persons as determined by the Sec-
retary. Not later than 1 year after the date of the enactment
of this Act, the Secretary shall submit a report to the appro-
priate congressional committees that contains—
(1) the results of the study;
(2) an assessment of the annual sources of fund-
ing collected through maritime and surface transpor-
tation at ports of entry and a detailed description of
the distribution and use of such funds, including the
amount and percentage of such sources that are dedi-
cated to improve and maintain security;
(3)(A) an assessment of the fees, charges, and
standards imposed on United States ports, port ter-
minal operators, shippers, carriers, and other persons
who use United States ports of entry compared with
the fees and charges imposed on Canadian and Mexi-
can ports, Canadian and Mexican port terminal op-
erators, shippers, carriers, and other persons who use
Canadian or Mexican ports of entry; and
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(B) an assessment of the impact of such fees,
charges, and standards on the competitiveness of
United States ports, port terminal operators, rail-
roads, motor carriers, pipelines, other transportation
modes, and shippers;
(4) an assessment of private efforts and invest-
ments to secure maritime and surface transportation
modes, including those that are operational and those
that are planned; and
(5) the Secretary’s recommendations based upon
the study, and an assessment of the consistency of
such recommendations with the international obliga-
tions and commitments of the United States.
(b) DEFINITIONS.—In this section:
(1) 
APPROPRIATE
CONGRESSIONAL
COMMIT-
TEES.—The term ‘‘appropriate congressional commit-
tees’’ has the meaning given that term by section 2(1)
of the SAFE Port Act (6 U.S.C. 901(1)).
(2) PORT OF ENTRY.—The term ‘‘port of entry’’
means any port or other facility through which for-
eign goods are permitted to enter the customs terri-
tory of a country under official supervision.
(3) 
MARITIME
AND
SURFACE
TRANSPOR-
TATION.—The term ‘‘maritime and surface transpor-
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tation’’ includes oceanborne, rail, and vehicular
transportation.
SEC. 1453. DHS INSPECTOR GENERAL REPORT ON HIGHWAY
WATCH GRANT PROGRAM.
Within 90 days after the date of enactment of this Act,
the Inspector General of the Department of Homeland Secu-
rity shall submit a report to the Senate Committee on Com-
merce, Science, and Transportation and Committee on
Homeland Security and Governmental Affairs on the
Trucking Security Grant Program for fiscal years 2004 and
2005 that—
(1) addresses the grant announcement, applica-
tion, receipt, review, award, monitoring, and closeout
processes; and
(2) states the amount obligated or expended
under the program for fiscal years 2004 and 2005
for—
(A) infrastructure protection;
(B) training;
(C) equipment;
(D) educational materials;
(E) program administration;
(E) marketing; and
(F) other functions.
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SEC. 1454. PROHIBITION OF ISSUANCE OF TRANSPOR-
TATION SECURITY CARDS TO CONVICTED
FELONS.
(a) IN GENERAL.—Section 70105 of title 46, United
States Code, is amended—
(1) in subsection (b)(1), by striking ‘‘decides that
the individual poses a security risk under subsection
(c)’’ and inserting ‘‘determines under subsection (c)
that the individual poses a security risk’’; and
(2) in subsection (c), by amending paragraph
(1) to read as follows:
‘‘(1) DISQUALIFICATIONS.—
‘‘(A) PERMANENT DISQUALIFYING CRIMINAL
OFFENSES.—Except as provided under para-
graph (2), an individual is permanently dis-
qualified from being issued a biometric transpor-
tation security card under subsection (b) if the
individual has been convicted, or found not
guilty by reason of insanity, in a civilian or
military jurisdiction of any of the following felo-
nies:
‘‘(i) Espionage or conspiracy to com-
mit espionage.
‘‘(ii) Sedition or conspiracy to commit
sedition.
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‘‘(iii) Treason or conspiracy to commit
treason.
‘‘(iv) A Federal crime of terrorism (as
defined in section 2332b(g) of title 18), a
comparable State law, or conspiracy to
commit such crime.
‘‘(v) A crime involving a transpor-
tation security incident.
‘‘(vi) Improper transportation of a
hazardous material under section 5124 of
title 49, or a comparable State law.
‘‘(vii) Unlawful possession, use, sale,
distribution, manufacture, purchase, re-
ceipt, transfer, shipping, transporting, im-
port, export, storage of, or dealing in an ex-
plosive or explosive device. In this clause,
an explosive or explosive device includes—
‘‘(I) an explosive (as defined in
sections 232(5) and 844(j) of title 18);
‘‘(II) explosive materials (as de-
fined in subsections (c) through (f) of
section 841 of title 18); and
‘‘(III) a destructive device (as de-
fined in 921(a)(4) of title 18 and sec-
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tion 5845(f) of the Internal Revenue
Code of 1986).
‘‘(viii) Murder.
‘‘(ix) Making any threat, or mali-
ciously conveying false information know-
ing the same to be false, concerning the de-
liverance, placement, or detonation of an
explosive or other lethal device in or against
a place of public use, a State or other gov-
ernment facility, a public transportation
system, or an infrastructure facility.
‘‘(x) A violation of the Racketeer Influ-
enced and Corrupt Organizations Act (18
U.S.C. 1961 et seq.), or a comparable State
law, if 1 of the predicate acts found by a
jury or admitted by the defendant consists
of 1 of the crimes listed in this subpara-
graph.
‘‘(xi) Attempt to commit any of the
crimes listed in clauses (i) through (iv).
‘‘(xii) Conspiracy or attempt to com-
mit any of the crimes described in clauses
(v) through (x).
‘‘(B) INTERIM DISQUALIFYING CRIMINAL OF-
FENSES.—Except as provided under paragraph
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(2), an individual is disqualified from being
issued a biometric transportation security card
under subsection (b) if the individual has been
convicted, or found not guilty by reason of in-
sanity, during the 7-year period ending on the
date on which the individual applies for such
card, or was released from incarceration during
the 5-year period ending on the date on which
the individual applies for such card, of any of
the following felonies:
‘‘(i) Unlawful possession, use, sale,
manufacture, purchase, distribution, re-
ceipt, transfer, shipping, transporting, de-
livery, import, export of, or dealing in a
firearm or other weapon. In this clause, a
firearm or other weapon includes—
‘‘(I) firearms (as defined in sec-
tion 921(a)(3) of title 18 and section
5845(a) of the Internal Revenue Code
of 1986); and
‘‘(II) items contained on the
United States Munitions Import List
under section 447.21 of title 27, Code
of Federal Regulations.
‘‘(ii) Extortion.
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‘‘(iii) Dishonesty, fraud, or misrepre-
sentation, including identity fraud and
money laundering if the money laundering
is related to a crime described in this sub-
paragraph or subparagraph (A). In this
clause, welfare fraud and passing bad
checks do not constitute dishonesty, fraud,
or misrepresentation.
‘‘(iv) Bribery.
‘‘(v) Smuggling.
‘‘(vi) Immigration violations.
‘‘(vii) Distribution of, possession with
intent to distribute, or importation of a
controlled substance.
‘‘(viii) Arson.
‘‘(ix) Kidnapping or hostage taking.
‘‘(x) Rape or aggravated sexual abuse.
‘‘(xi) Assault with intent to kill.
‘‘(xii) Robbery.
‘‘(xiii) Conspiracy or attempt to com-
mit any of the crimes listed in this sub-
paragraph.
‘‘(xiv) Fraudulent entry into a seaport
under section 1036 of title 18, or a com-
parable State law.
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‘‘(xv) A violation of the Racketeer In-
fluenced and Corrupt Organizations Act (18
U.S.C. 1961 et seq.) or a comparable State
law, other than any of the violations listed
in subparagraph (A)(x).
‘‘(C) UNDER WANT WARRANT, OR INDICT-
MENT.—An applicant who is wanted, or under
indictment, in any civilian or military jurisdic-
tion for a felony listed in this paragraph, is dis-
qualified from being issued a biometric transpor-
tation security card under subsection (b) until
the want or warrant is released or the indict-
ment is dismissed.
‘‘(D) DETERMINATION
OF
ARREST
STA-
TUS.—
‘‘(i) IN
GENERAL.—If a fingerprint-
based check discloses an arrest for a dis-
qualifying crime listed in this section with-
out indicating a disposition, the Transpor-
tation Security Administration shall notify
the applicant of such disclosure and provide
the applicant with instructions on how the
applicant can clear the disposition, in ac-
cordance with clause (ii).
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‘‘(ii) BURDEN OF PROOF.—In order to
clear a disposition under this subpara-
graph, an applicant shall submit written
proof to the Transportation Security Ad-
ministration, not later than 60 days after
receiving notification under clause (i), that
the arrest did not result in conviction for
the disqualifying criminal offense.
‘‘(iii) NOTIFICATION OF DISQUALIFICA-
TION.—If the Transportation Security Ad-
ministration does not receive proof in ac-
cordance with the Transportation Security
Administration’s procedures for waiver of
criminal offenses and appeals, the Trans-
portation Security Administration shall
notify—
‘‘(I) the applicant that he or she
is disqualified from being issued a bio-
metric transportation security card
under subsection (b);
‘‘(II) the State that the applicant
is disqualified, in the case of a haz-
ardous materials endorsement; and
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‘‘(III) the Coast Guard that the
applicant is disqualified, if the appli-
cant is a mariner.
‘‘(E) OTHER
POTENTIAL
DISQUALIFICA-
TIONS.—Except as provided under subpara-
graphs (A) through (C), an individual may not
be denied a transportation security card under
subsection (b) unless the Secretary determines
that individual—
‘‘(i) has been convicted within the pre-
ceding 7-year period of a felony or found
not guilty by reason of insanity of a
felony—
‘‘(I) that the Secretary believes
could cause the individual to be a ter-
rorism security risk to the United
States; or
‘‘(II) for causing a severe trans-
portation security incident;
‘‘(ii) has been released from incarcer-
ation within the preceding 5-year period for
committing a felony described in clause (i);
‘‘(iii) may be denied admission to the
United States or removed from the United
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States under the Immigration and Nation-
ality Act (8 U.S.C. 1101 et seq.); or
‘‘(iv) otherwise poses a terrorism secu-
rity risk to the United States.
‘‘(F) 
MODIFICATION
OF
LISTED
OF-
FENSES.—The Secretary may, by rulemaking,
add or modify the offenses described in para-
graph (1)(A) or (B).’’.
(b) CONFORMING AMENDMENT.—Section 70101 of title
49, United States Code, is amended—
(1) by redesignating paragraphs (2) through (6)
as paragraphs (3) through (7); and
(2) by inserting after paragraph (1) the fol-
lowing:
‘‘(2) The term ‘economic disruption’ does not in-
clude a work stoppage or other employee-related ac-
tion not related to terrorism and resulting from an
employer-employee dispute.’’.
SEC. 1455. PROHIBITION OF ISSUANCE OF TRANSPOR-
TATION SECURITY CARDS TO CONVICTED
FELONS.
(a) IN GENERAL.—Section 70105 of title 46, United
States Code, is amended—
(1) in subsection (b)(1), by striking ‘‘decides that
the individual poses a security risk under subsection
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(c)’’ and inserting ‘‘determines under subsection (c)
that the individual poses a security risk’’; and
(2) in subsection (c), by amending paragraph
(1) to read as follows:
‘‘(1) DISQUALIFICATIONS.—
‘‘(A) PERMANENT DISQUALIFYING CRIMINAL
OFFENSES.—Except as provided under para-
graph (2), an individual is permanently dis-
qualified from being issued a biometric transpor-
tation security card under subsection (b) if the
individual has been convicted, or found not
guilty by reason of insanity, in a civilian or
military jurisdiction of any of the following felo-
nies:
‘‘(i) Espionage or conspiracy to com-
mit espionage.
‘‘(ii) Sedition or conspiracy to commit
sedition.
‘‘(iii) Treason or conspiracy to commit
treason.
‘‘(iv) A Federal crime of terrorism (as
defined in section 2332b(g) of title 18), a
comparable State law, or conspiracy to
commit such crime.
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‘‘(v) A crime involving a transpor-
tation security incident.
‘‘(vi) Improper transportation of a
hazardous material under section 5124 of
title 49, or a comparable State law.
‘‘(vii) Unlawful possession, use, sale,
distribution, manufacture, purchase, re-
ceipt, transfer, shipping, transporting, im-
port, export, storage of, or dealing in an ex-
plosive or explosive device. In this clause,
an explosive or explosive device includes—
‘‘(I) an explosive (as defined in
sections 232(5) and 844(j) of title 18);
‘‘(II) explosive materials (as de-
fined in subsections (c) through (f) of
section 841 of title 18); and
‘‘(III) a destructive device (as de-
fined in 921(a)(4) of title 18 and sec-
tion 5845(f) of the Internal Revenue
Code of 1986).
‘‘(viii) Murder.
‘‘(ix) Making any threat, or mali-
ciously conveying false information know-
ing the same to be false, concerning the de-
liverance, placement, or detonation of an
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explosive or other lethal device in or against
a place of public use, a State or other gov-
ernment facility, a public transportation
system, or an infrastructure facility.
‘‘(x) A violation of the Racketeer Influ-
enced and Corrupt Organizations Act (18
U.S.C. 1961 et seq.), or a comparable State
law, if 1 of the predicate acts found by a
jury or admitted by the defendant consists
of 1 of the crimes listed in this subpara-
graph.
‘‘(xi) Attempt to commit any of the
crimes listed in clauses (i) through (iv).
‘‘(xii) Conspiracy or attempt to com-
mit any of the crimes described in clauses
(v) through (x).
‘‘(B) INTERIM DISQUALIFYING CRIMINAL OF-
FENSES.—Except as provided under paragraph
(2), an individual is disqualified from being
issued a biometric transportation security card
under subsection (b) if the individual has been
convicted, or found not guilty by reason of in-
sanity, during the 7-year period ending on the
date on which the individual applies for such
card, or was released from incarceration during
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the 5-year period ending on the date on which
the individual applies for such card, of any of
the following felonies:
‘‘(i) Unlawful possession, use, sale,
manufacture, purchase, distribution, re-
ceipt, transfer, shipping, transporting, de-
livery, import, export of, or dealing in a
firearm or other weapon. In this clause, a
firearm or other weapon includes—
‘‘(I) firearms (as defined in sec-
tion 921(a)(3) of title 18 and section
5845(a) of the Internal Revenue Code
of 1986); and
‘‘(II) items contained on the
United States Munitions Import List
under section 447.21 of title 27, Code
of Federal Regulations.
‘‘(ii) Extortion.
‘‘(iii) Dishonesty, fraud, or misrepre-
sentation, including identity fraud and
money laundering if the money laundering
is related to a crime described in this sub-
paragraph or subparagraph (A). In this
clause, welfare fraud and passing bad
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checks do not constitute dishonesty, fraud,
or misrepresentation.
‘‘(iv) Bribery.
‘‘(v) Smuggling.
‘‘(vi) Immigration violations.
‘‘(vii) Distribution of, possession with
intent to distribute, or importation of a
controlled substance.
‘‘(viii) Arson.
‘‘(ix) Kidnapping or hostage taking.
‘‘(x) Rape or aggravated sexual abuse.
‘‘(xi) Assault with intent to kill.
‘‘(xii) Robbery.
‘‘(xiii) Conspiracy or attempt to com-
mit any of the crimes listed in this sub-
paragraph.
‘‘(xiv) Fraudulent entry into a seaport
under section 1036 of title 18, or a com-
parable State law.
‘‘(xv) A violation of the Racketeer In-
fluenced and Corrupt Organizations Act (18
U.S.C. 1961 et seq.) or a comparable State
law, other than any of the violations listed
in subparagraph (A)(x).
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‘‘(C) UNDER WANT WARRANT, OR INDICT-
MENT.—An applicant who is wanted, or under
indictment, in any civilian or military jurisdic-
tion for a felony listed in this paragraph, is dis-
qualified from being issued a biometric transpor-
tation security card under subsection (b) until
the want or warrant is released or the indict-
ment is dismissed.
‘‘(D) DETERMINATION
OF
ARREST
STA-
TUS.—
‘‘(i) IN
GENERAL.—If a fingerprint-
based check discloses an arrest for a dis-
qualifying crime listed in this section with-
out indicating a disposition, the Transpor-
tation Security Administration shall notify
the applicant of such disclosure and provide
the applicant with instructions on how the
applicant can clear the disposition, in ac-
cordance with clause (ii).
‘‘(ii) BURDEN OF PROOF.—In order to
clear a disposition under this subpara-
graph, an applicant shall submit written
proof to the Transportation Security Ad-
ministration, not later than 60 days after
receiving notification under clause (i), that
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the arrest did not result in conviction for
the disqualifying criminal offense.
‘‘(iii) NOTIFICATION OF DISQUALIFICA-
TION.—If the Transportation Security Ad-
ministration does not receive proof in ac-
cordance with the Transportation Security
Administration’s procedures for waiver of
criminal offenses and appeals, the Trans-
portation Security Administration shall
notify—
‘‘(I) the applicant that he or she
is disqualified from being issued a bio-
metric transportation security card
under subsection (b);
‘‘(II) the State that the applicant
is disqualified, in the case of a haz-
ardous materials endorsement; and
‘‘(III) the Coast Guard that the
applicant is disqualified, if the appli-
cant is a mariner.
‘‘(E) OTHER
POTENTIAL
DISQUALIFICA-
TIONS.—Except as provided under subpara-
graphs (A) through (C), an individual may not
be denied a transportation security card under
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subsection (b) unless the Secretary determines
that individual—
‘‘(i) has been convicted within the pre-
ceding 7-year period of a felony or found
not guilty by reason of insanity of a
felony—
‘‘(I) that the Secretary believes
could cause the individual to be a ter-
rorism security risk to the United
States; or
‘‘(II) for causing a severe trans-
portation security incident;
‘‘(ii) has been released from incarcer-
ation within the preceding 5-year period for
committing a felony described in clause (i);
‘‘(iii) may be denied admission to the
United States or removed from the United
States under the Immigration and Nation-
ality Act (8 U.S.C. 1101 et seq.); or
‘‘(iv) otherwise poses a terrorism secu-
rity risk to the United States.
‘‘(F) 
MODIFICATION
OF
LISTED
OF-
FENSES.—The Secretary may, by rulemaking,
add to the offenses described in paragraph (1)(A)
or (B).’’.
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(b) CONFORMING AMENDMENT.—Section 70101 of title
49, United States Code, is amended—
(1) by redesignating paragraphs (2) through (6)
as paragraphs (3) through (7); and
(2) by inserting after paragraph (1) the fol-
lowing:
‘‘(2) The term ‘economic disruption’ does not in-
clude a work stoppage or other employee-related ac-
tion not related to terrorism and resulting from an
employer-employee dispute.’’.
Subtitle B—Aviation Security
Improvement
SEC. 1461. EXTENSION OF AUTHORIZATION FOR AVIATION
SECURITY FUNDING.
Section 48301(a) of title 49, United States Code, is
amended by striking ‘‘and 2006’’ and inserting ‘‘2006,
2007, 2008, and 2009’’.
SEC. 1462. PASSENGER AIRCRAFT CARGO SCREENING.
(a) IN GENERAL.—Section 44901 of title 49, United
States Code, is amended—
(1) by redesignating subsections (g) and (h) as
subsections (h) and (i), respectively; and
(2) by inserting after subsection (f) the following:
‘‘(g) AIR CARGO ON PASSENGER AIRCRAFT.—
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‘‘(1) IN GENERAL.—Not later than 3 years after
the date of enactment of the Transportation Security
and Interoperable Communication Capabilities Act,
the Secretary of Homeland Security, acting through
the Administrator of the Transportation Security Ad-
ministration, shall establish a system to screen all
cargo transported on passenger aircraft operated by
an air carrier or foreign air carrier in air transpor-
tation or intrastate air transportation to ensure the
security of all such passenger aircraft carrying cargo.
‘‘(2) MINIMUM STANDARDS.—The system referred
to in paragraph (1) shall require, at a minimum,
that the equipment, technology, procedures, personnel,
or other methods determined by the Administrator of
the Transportation Security Administration, provide
a level of security comparable to the level of security
in effect for passenger checked baggage.
‘‘(3) REGULATIONS.—
‘‘(A) INTERIM FINAL RULE.—The Secretary
of Homeland Security may issue an interim
final rule as a temporary regulation to imple-
ment this subsection without regard to the provi-
sions of chapter 5 of title 5.
‘‘(B) FINAL RULE.—
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‘‘(i) IN
GENERAL.—If the Secretary
issues an interim final rule under subpara-
graph (A), the Secretary shall issue, not
later than 1 year after the effective date of
the interim final rule, a final rule as a per-
manent regulation to implement this sub-
section in accordance with the provisions of
chapter 5 of title 5.
‘‘(ii) FAILURE
TO
ACT.—If the Sec-
retary does not issue a final rule in accord-
ance with clause (i) on or before the last
day of the 1-year period referred to in
clause (i), the Secretary shall submit a re-
port to the Congress explaining why the
final rule was not timely issued and pro-
viding an estimate of the earliest date on
which the final rule will be issued. The Sec-
retary shall submit the first such report
within 10 days after such last day and sub-
mit a report to the Congress containing up-
dated information every 60 days thereafter
until the final rule is issued.
‘‘(iii) SUPERSEDING OF INTERIM FINAL
RULE.—The final rule issued in accordance
with this subparagraph shall supersede the
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interim final rule issued under subpara-
graph (A).
‘‘(4) REPORT.—Not later than 1 year after the
date on which the system required by paragraph (1)
is established, the Secretary shall transmit a report to
Congress that details and explains the system.’’.
(b) ASSESSMENT OF EXEMPTIONS.—
(1) TSA ASSESSMENT OF EXEMPTIONS.—
(A) IN GENERAL.—Not later than 180 days
after the date of enactment of this Act, the Sec-
retary of Homeland Security, through the Ad-
ministrator of the Transportation Security Ad-
ministration, shall submit a report to Congress
and to the Comptroller General containing an
assessment of each exemption granted under sec-
tion 44901(i) of title 49, United States Code, for
the screening required by section 44901(g)(1) of
that title for cargo transported on passenger air-
craft and an analysis to assess the risk of main-
taining such exemption. The Secretary may sub-
mit the report in both classified and redacted
formats if the Secretary determines that such ac-
tion is appropriate or necessary.
(B) CONTENTS.—The report shall include—
(i) the rationale for each exemption;
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(ii) a statement of the percentage of
cargo that is not screened as a result of each
exemption;
(iii) the impact of each exemption on
aviation security;
(iv) the projected impact on the flow of
commerce of eliminating such exemption;
and
(v) a statement of any plans, and the
rationale, for maintaining, changing, or
eliminating each exemption.
(2) GAO ASSESSMENT.—Not later than 120 days
after the date on which the report required under
paragraph (1) is submitted, the Comptroller General
shall review the report and provide to Congress an as-
sessment of the methodology used for determinations
made by the Secretary for maintaining, changing, or
eliminating an exemption.
SEC. 1463. BLAST-RESISTANT CARGO CONTAINERS.
Section 44901 of title 49, United States Code, as
amended by section 1462, is amended by adding at the end
the following:
‘‘(j) BLAST-RESISTANT CARGO CONTAINERS.—
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‘‘(1) IN GENERAL.—Before January 1, 2008, the
Administrator of the Transportation Security Admin-
istration shall—
‘‘(A) evaluate the results of the blast-resist-
ant cargo container pilot program instituted be-
fore the date of enactment of the Transportation
Security and Interoperable Communication Ca-
pabilities Act;
‘‘(B) based on that evaluation, begin the ac-
quisition of a sufficient number of blast-resistant
cargo containers to meet the requirements of the
Transportation Security Administration’s cargo
security program under subsection (g); and
‘‘(C) develop a system under which the
Administrator—
‘‘(i) will make such containers avail-
able for use by passenger aircraft operated
by air carriers or foreign air carriers in air
transportation or intrastate air transpor-
tation on a random or risk-assessment basis
as determined by the Administrator, in suf-
ficient number to enable the carriers to meet
the requirements of the Administration’s
cargo security system; and
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‘‘(ii) provide for the storage, mainte-
nance, and distribution of such containers.
‘‘(2) DISTRIBUTION TO AIR CARRIERS.—Within
90 days after the date on which the Administrator
completes development of the system required by para-
graph (1)(C), the Administrator of the Transpor-
tation Security Administration shall implement that
system and begin making blast-resistant cargo con-
tainers available to such carriers as necessary.’’.
SEC. 1464. PROTECTION OF AIR CARGO ON PASSENGER
PLANES FROM EXPLOSIVES.
(a) TECHNOLOGY RESEARCH AND PILOT PROJECTS.—
(1) RESEARCH
AND
DEVELOPMENT.—The Sec-
retary of Homeland Security shall expedite research
and development for technology that can disrupt or
prevent an explosive device from being introduced
onto a passenger plane or from damaging a passenger
plane while in flight or on the ground. The research
shall include blast resistant cargo containers and
other promising technology and will be used in con-
cert with implementation of section 44901(j) of title
49, United States Code, as amended by section 1463
of this title.
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(2) PILOT PROJECTS.—The Secretary, in con-
junction with the Secretary of Transportation, shall
establish a grant program to fund pilot projects—
(A) to deploy technologies described in
paragraph (1); and
(B) to test technology to expedite the recov-
ery, development, and analysis of information
from aircraft accidents to determine the cause of
the accident, including deployable flight deck
and voice recorders and remote location record-
ing devices.
(b) AUTHORIZATION OF APPROPRIATIONS.—There are
authorized to be appropriated to the Secretary of Homeland
Security for fiscal year 2008 such sums as may be necessary
to carry out this section, such funds to remain available
until expended.
SEC. 1465. IN-LINE BAGGAGE SCREENING.
(a) 
EXTENSION
OF
AUTHORIZATION.—Section
44923(i)(1) of title 49, United States Code, is amended by
striking ‘‘2007.’’ and inserting ‘‘2007, and $450,000,000 for
each of fiscal years 2008 and 2009.’’.
(b) REPORT.—Within 30 days after the date of enact-
ment of this Act, the Secretary of Homeland Security shall
submit the report the Secretary was required by section
4019(d) of the Intelligence Reform and Terrorism Preven-
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tion Act of 2004 (49 U.S.C. 44901 note) to have submitted
in conjunction with the submission of the budget for fiscal
year 2006.
SEC. 1466. IN-LINE BAGGAGE SYSTEM DEPLOYMENT.
(a) IN GENERAL.—Section 44923 of title 49, United
States Code, is amended—
(1) by striking ‘‘may’’ in subsection (a) and in-
serting ‘‘shall’’;
(2) by striking ‘‘may’’ in subsection (d)(1) and
inserting ‘‘shall’’;
(3) by striking ‘‘2007’’ in subsection (h)(1) and
inserting ‘‘2028’’;
(4) by striking paragraphs (2) and (3) of sub-
section (h) and inserting the following:
‘‘(2) ALLOCATION.—Of the amount made avail-
able under paragraph (1) for a fiscal year, not less
than $200,000,000 shall be allocated to fulfill letters
of intent issued under subsection (d).
‘‘(3) DISCRETIONARY GRANTS.—Of the amount
made available under paragraph (1) for a fiscal year,
up to $50,000,000 shall be used to make discretionary
grants, with priority given to small hub airports and
non-hub airports.’’; and
(5) by redesignating subsection (i) as subsection
(j), and inserting after subsection (h) the following:
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‘‘(i) LEVERAGED FUNDING.—For purposes of this sec-
tion, a grant under subsection (a) to an airport sponsor
to service an obligation issued by or on behalf of that spon-
sor to fund a project described in subsection (a) shall be
considered to be a grant for that project.’’.
(b) PRIORITIZATION OF PROJECTS.—
(1) IN GENERAL.—The Administrator shall cre-
ate a prioritization schedule for airport security im-
provement projects described in section 44923(b) of
title 49, United States Code, based on risk and other
relevant factors, to be funded under the grant pro-
gram provided by that section. The schedule shall in-
clude both hub airports (as defined in section
41731(a)(3) of title 49, United States Code) and
nonhub airports (as defined in section 41731(a)4) of
title 49, United States Code).
(2) 
AIRPORTS
THAT
HAVE
COMMENCED
PROJECTS.—The schedule shall include airports that
have incurred eligible costs associated with develop-
ment of partial in-line baggage systems before the
date of enactment of this Act in reasonable anticipa-
tion of receiving a grant under section 44923 of title
49, United States Code, in reimbursement of those
costs but that have not received such a grant.
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(3) REPORT.—Within 180 days after the date of
enactment of this Act, the Administrator shall provide
a copy of the prioritization schedule, a corresponding
timeline, and a description of the funding allocation
under section 44923 of title 49, United States Code,
to the Senate Committee on Commerce, Science, and
Transportation and the House of Representatives
Committee on Homeland Security.
SEC. 1467. RESEARCH AND DEVELOPMENT OF AVIATION
TRANSPORTATION SECURITY TECHNOLOGY.
Section 137(a) of the Aviation and Transportation Se-
curity Act (49 U.S.C. 44912 note) is amended—
(1) by striking ‘‘2002 through 2006,’’ and insert-
ing ‘‘2006 through 2009,’’;
(2) by striking ‘‘aviation’’ and inserting ‘‘trans-
portation’’; and
(3) by striking ‘‘2002 and 2003’’ and inserting
‘‘2006 through 2009’’.
SEC. 1468. CERTAIN TSA PERSONNEL LIMITATIONS NOT TO
APPLY.
(a) IN GENERAL.—Notwithstanding any provision of
law to the contrary, any statutory limitation on the number
of employees in the Transportation Security Administra-
tion, before or after its transfer to the Department of Home-
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land Security from the Department of Transportation, does
not apply after fiscal year 2007.
(b) AVIATION SECURITY.—Notwithstanding any provi-
sion of law imposing a limitation on the recruiting or hir-
ing of personnel into the Transportation Security Adminis-
tration to a maximum number of permanent positions, the
Secretary of Homeland Security shall recruit and hire such
personnel into the Administration as may be necessary—
(1) to provide appropriate levels of aviation se-
curity; and
(2) to accomplish that goal in such a manner
that the average aviation security-related delay expe-
rienced by airline passengers is reduced to a level of
less than 10 minutes.
SEC. 1469. SPECIALIZED TRAINING.
The Administrator of the Transportation Security Ad-
ministration shall provide advanced training to transpor-
tation security officers for the development of specialized se-
curity skills, including behavior observation and analysis,
explosives detection, and document examination, in order
to enhance the effectiveness of layered transportation secu-
rity measures.
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SEC. 1470. EXPLOSIVE DETECTION AT PASSENGER SCREEN-
ING CHECKPOINTS.
(a) IN GENERAL.—Within 90 days after the date of
enactment of this Act, the Secretary of Homeland Security
shall issue the strategic plan the Secretary was required by
section 44925(a) of title 49, United States Code, to have
issued within 90 days after the date of enactment of the
Intelligence Reform and Terrorism Prevention Act of 2004.
(b) DEPLOYMENT.—Section 44925(b) of title 49,
United States Code, is amended by adding at the end the
following:
‘‘(3) FULL DEPLOYMENT.—The Secretary shall
begin full implementation of the strategic plan within
1 year after the date of enactment of the Transpor-
tation Security and Interoperable Communication
Capabilities Act.’’.
SEC. 1471. APPEAL AND REDRESS PROCESS FOR PAS-
SENGERS WRONGLY DELAYED OR PROHIB-
ITED FROM BOARDING A FLIGHT.
(a) IN GENERAL.—Subtitle C of title IV of the Home-
land Security Act of 2002 (6 U.S.C. 231 et seq.) is amended
by adding at the end the following:
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‘‘SEC. 432. APPEAL AND REDRESS PROCESS FOR PAS-
SENGERS WRONGLY DELAYED OR PROHIB-
ITED FROM BOARDING A FLIGHT.
‘‘(a) IN GENERAL.—The Secretary shall establish a
timely and fair process for individuals who believe they
have been delayed or prohibited from boarding a commer-
cial aircraft because they were wrongly identified as a
threat under the regimes utilized by the Transportation Se-
curity Administration, the Bureau of Customs and Border
Protection, or any other Department entity.
‘‘(b) OFFICE OF APPEALS AND REDRESS.—
‘‘(1) ESTABLISHMENT.—The Secretary shall es-
tablish an Office of Appeals and Redress to imple-
ment, coordinate, and execute the process established
by the Secretary pursuant to subsection (a). The Of-
fice shall include representatives from the Transpor-
tation Security Administration, U.S. Customs and
Border Protection, and other agencies or offices as ap-
propriate.
‘‘(2) RECORDS.—The process established by the
Secretary pursuant to subsection (a) shall include the
establishment of a method by which the Office of Ap-
peals and Redress, under the direction of the Sec-
retary, will be able to maintain a record of air car-
rier passengers and other individuals who have been
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misidentified and have corrected erroneous informa-
tion.
‘‘(3) INFORMATION.—To prevent repeated delays
of an misidentified passenger or other individual, the
Office of Appeals and Redress shall—
‘‘(A) ensure that the records maintained
under this subsection contain information deter-
mined by the Secretary to authenticate the iden-
tity of such a passenger or individual;
‘‘(B) furnish to the Transportation Security
Administration, the Bureau of Customs and Bor-
der Protection, or any other appropriate Depart-
ment entity, upon request, such information as
may be necessary to allow such agencies to assist
air carriers in improving their administration
of the advanced passenger prescreening system
and reduce the number of false positives; and
‘‘(C) require air carriers and foreign air
carriers take action to properly and automati-
cally identify passengers determined, under the
process established under subsection (a), to have
been wrongly identified.’’.
(b) CLERICAL AMENDMENT.—The table of contents in
section 1(b) of the Homeland Security Act of 2002 is
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amended by inserting after the item relating to section 431
the following:
‘‘Sec. 432. Appeal and redress process for passengers wrongly delayed or prohib-
ited from boarding a flight’’.
SEC. 1472. STRATEGIC PLAN TO TEST AND IMPLEMENT AD-
VANCED PASSENGER PRESCREENING SYS-
TEM.
(a) IN GENERAL.—Not later than 180 days after the
date of enactment of this Act, the Secretary of Homeland
Security, in consultation with the Administrator of the
Transportation Security Administration, shall submit to
the Congress a plan that—
(1) describes the system to be utilized by the De-
partment of Homeland Security to assume the per-
formance of comparing passenger information, as de-
fined by the Administrator of the Transportation Se-
curity Administration, to the automatic selectee and
no-fly lists, as well as the consolidated and integrated
terrorist watchlist maintained by the Federal Govern-
ment;
(2) provides a projected timeline for each phase
of testing and implementation of the system;
(3) explains how the system will be integrated
with the prescreening system for passengers on inter-
national flights; and
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(4) describes how the system complies with sec-
tion 552a of title 5, United States Code.
(b) GAO ASSESSMENT.—No later than 90 days after
the date of enactment of this Act, the Comptroller General
shall submit a report to the Senate Committee on Com-
merce, Science, and Transportation and the House Com-
mittee on Homeland Security that—
(1) describes the progress made by the Transpor-
tation Security Administration in implementing the
Secure Flight passenger pre-screening program;
(2) describes the effectiveness of the current ap-
peals process for passengers wrongly assigned to the
no-fly and terrorist watch lists;
(3) describes the Transportation Security Ad-
ministration’s plan to protect private passenger infor-
mation and progress made in integrating the system
with the pre-screening program for international
flights operated by the Bureau of Customs and Border
Protection;
(4) provides a realistic determination of when
the system will be completed; and
(5) includes any other relevant observations or
recommendations the Comptroller General deems ap-
propriate.
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SEC. 1473. REPAIR STATION SECURITY.
(a) CERTIFICATION OF FOREIGN REPAIR STATIONS
SUSPENSION.—If the regulations required by section
44924(f) of title 49, United States Code, are not issued
within 90 days after the date of enactment of this Act, the
Administrator of the Federal Aviation Administration may
not certify any foreign repair station under part 145 of
title 14, Code of Federal Regulations, after such 90th day
unless the station was previously certified by the Adminis-
tration under that part.
(b) 6-MONTH DEADLINE FOR SECURITY REVIEW AND
AUDIT.—Subsections (a) and (d) of section 44924 of title
49, United States Code, are each amended by striking ‘‘18
months’’ and inserting ‘‘6 months’’.
SEC. 1474. GENERAL AVIATION SECURITY.
Section 44901 of title 49, United States Code, as
amended by section 1463, is amended by adding at the end
the following:
‘‘(k) GENERAL AVIATION AIRPORT SECURITY PRO-
GRAM.—
‘‘(1) IN GENERAL.—Within 1 year after the date
of enactment of the Transportation Security and
Interoperable Communication Capabilities Act, the
Administrator of the Transportation Security Admin-
istration shall—
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‘‘(A) develop a standardized threat and vul-
nerability assessment program for general avia-
tion airports (as defined in section 47134(m));
and
‘‘(B) implement a program to perform such
assessments on a risk-assessment basis at general
aviation airports.
‘‘(2) GRANT PROGRAM.—Within 6 months after
date of enactment of the Transportation Security and
Interoperable Communication Capabilities Act, the
Administrator shall initiate and complete a study of
the feasibility of a program, based on a risk-managed
approach, to provide grants to general aviation air-
port operators for projects to upgrade security at gen-
eral 
aviation 
airports 
(as 
defined 
in 
section
47134(m)). If the Administrator determines that such
a program is feasible, the Administrator shall estab-
lish such a program.
‘‘(3) APPLICATION
TO
FOREIGN-REGISTERED
GENERAL
AVIATION
AIRCRAFT.—Within 180 days
after the date of enactment of the Transportation Se-
curity and Interoperable Communication Capabilities
Act, the Administrator shall develop a risk-based sys-
tem under which—
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‘‘(A) foreign-registered general aviation air-
craft, as identified by the Administrator, in co-
ordination with the Administrator of the Federal
Aviation Administration, are required to submit
passenger information at the same time as, and
in conjunction with, advance notification re-
quirements for Customs and Border Protection
before entering United States airspace; and
‘‘(B) such information is checked against
appropriate databases maintained by the Trans-
portation Security Administration.
‘‘(4) AUTHORIZATION
OF
APPROPRIATIONS.—
There are authorized to be appropriated to the Sec-
retary of Homeland Security such sums as may be
necessary to carry out any program established under
paragraph (2).’’.
SEC. 1475. SECURITY CREDENTIALS FOR AIRLINE CREWS.
Within 180 days after the date of enactment of this
Act, the Administrator of the Transportation Security Ad-
ministration shall, after consultation with airline, airport,
and flight crew representatives, transmit a report to the
Senate Committee on Commerce, Science, and Transpor-
tation and the House of Representatives Committee on
Transportation and Infrastructure on the status of its ef-
forts to institute a sterile area access system or method that