operations centers in gaining or maintaining their security 
clearances. Through the Captain of the Port, the Sec-
retary may identify key individuals who should participate. 
In addition, the port or other entities may appeal to the 
Captain of the Port for sponsorship. 
(e) SECURITY INCIDENTS.—During a transportation 
security incident involving the port, the Coast Guard Cap-
tain 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 other-
wise directed under the National Response Plan. 
(f) IMPLEMENTATION.— 
(1) IN
GENERAL.—Not later than 180 days 
after the date of enactment of this Act, the Sec-
retary shall submit to the appropriate congressional 
committees an implementation plan for this section. 
(2) CONTENTS.—The plan submitted under 
paragraph (1) shall describe, for each joint oper-
ations center— 
(A) the location; 
(B) the specific participating entities; 
(C) the implementation costs; 
(D) the necessary resources for operation 
and maintenance, including the cost-sharing re-
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quirements for other agencies and participants; 
and 
(E) in the case of an existing joint oper-
ations center, the enhancements to such center 
that are necessary to meet the requirements of 
subsection (d). 
SEC. 16. RESEARCH, DEVELOPMENT, TEST, AND EVALUA-
TION. 
(a) IN GENERAL.—The Secretary shall— 
(1) direct research, development, test, and eval-
uation efforts in furtherance of maritime and cargo 
security; 
(2) encourage the ingenuity of the private sec-
tor in developing and testing technologies and proc-
ess innovations in furtherance of these objectives; 
and 
(3) evaluate such technologies. 
(b) COORDINATION.—The Secretary, acting through 
the Undersecretary for Science and Technology, in con-
sultation with the Assistant Secretary for Policy, the Di-
rector of Cargo Security Policy, the Director of the Do-
mestic Nuclear Detection Office of the Department, and 
the Chief Financial Officer, shall ensure that— 
(1) research, development, test, and evaluation 
efforts funded by the Department in furtherance of 
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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. 
(c) 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 to include continuous tracking 
devices that provide real-time monitoring and 
reporting; 
(C) create a data sharing network capable 
of transmitting data required by entities par-
ticipating 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. 
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(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 to the ap-
propriate congressional committees a report detailing 
the results of Operation Safe Commerce. 
(d) GREENLANE
TECHNOLOGY.—The Secretary 
shall, not less frequently than once every 2 years— 
(1) review the technology requirements and 
standards established under section 14; and 
(2) test future supply chain visibility proce-
dures, container security devices, and other systems 
as they become commercially available to track and 
secure containers and the smallest exterior pack-
aging units loaded into containers. 
SEC. 17. PORT SECURITY GRANT PROGRAM. 
(a) GRANTS AUTHORIZED.—The Secretary shall es-
tablish a grant program to allocate Federal financial as-
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sistance to ports in the United States on the basis of risk 
and need. 
(b) PRIORITIZATION PROCESS.—In awarding grants 
under this section, the Secretary shall conduct an assess-
ment of ports in the United States to develop a 
prioritization for awarding grants authorized under sub-
section (a) based upon— 
(1) the most current risk assessment available 
from the Department; 
(2) the national economic and strategic defense 
considerations of individual ports; and 
(3) any other factors that the Secretary deter-
mines to be appropriate. 
(c) APPLICATION.— 
(1) IN
GENERAL.—Any entity subject to an 
Area Maritime Transportation Security Plan re-
quired under section 70103(b) of title 46, United 
States Code, 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 may require. 
(2) MINIMUM
STANDARDS
FOR
PAYMENT
OR 
REIMBURSEMENT.—Each 
application 
submitted 
under paragraph (1) shall include— 
(A) a comprehensive description of— 
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(i) the purpose of the project for 
which the applicant seeks a grant under 
this section and why the applicant needs 
the grant; 
(ii) the applicability of the project to 
the Area Maritime Transportation Security 
Plan and other homeland security plans; 
(iii) the methodology for coordinating 
the project into the security of the greater 
port area, as identified in the Area Mari-
time Security Plan; 
(iv) any existing cooperation or mu-
tual aid agreements with other port facili-
ties, vessels, organizations, or State, terri-
torial, and local governments as such 
agreements relate to port security; and 
(v) a capital budget showing how the 
applicant intends to allocate and expend 
the grant funds; 
(B) a determination by the Captain of the 
Port that the project— 
(i) addresses or corrects port security 
vulnerabilities identified by the Coast 
Guard, or through port security vulner-
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ability assessments approved by the Sec-
retary; and 
(ii) helps to ensure compliance with 
the Area Maritime Transportation Security 
Plan. 
(3) 
PROCEDURAL
SAFEGUARDS.—The 
Sec-
retary, in consultation with the Office of the Inspec-
tor General and the Office of Grants and Training, 
shall issue guidelines to establish appropriate ac-
counting, 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 re-
turned. 
(d) USE OF FUNDS.—Grants awarded under this sec-
tion may be used— 
(1) to help implement Area Maritime Transpor-
tation 
Security 
Plans 
required 
under 
section 
70103(b) of title 46, United States Code; 
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(2) to remedy port security vulnerabilities iden-
tified through vulnerability assessments approved by 
the Secretary; 
(3) for non-Federal projects contributing to the 
overall security of a port or a system of ports in the 
Untied States, as determined by the Secretary; 
(4) for the salaries, benefits, overtime com-
pensation, and other costs of additional security per-
sonnel for State and local agencies for activities re-
quired by the Area Maritime Security Plan for a 
port area if— 
(A) the Secretary increases the threat level 
under the Homeland Security Advisory System 
to Code Orange or Code Red; 
(B) the Commandant of the Coast Guard 
raises the Maritime Security level to MARSEC 
Level 2 or 3; or 
(C) the Secretary otherwise authorizes 
such costs; 
(5) for the cost of acquisition, operation, and 
maintenance of equipment that contributes to the 
overall security of the port area, as identified in the 
Area Maritime Security Plan, if the need is based 
upon vulnerability assessments approved by the Sec-
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retary or identified in the Area Maritime Security 
Plan; 
(6) to conduct vulnerability assessments ap-
proved by the Secretary; 
(7) to purchase or upgrade equipment, includ-
ing computer software, to enhance terrorism pre-
paredness; 
(8) to conduct exercises to strengthen terrorism 
preparedness; 
(9) to conduct training for prevention and de-
tection of, preparedness for, response to, or recovery 
from attacks involving weapons of mass destruction, 
including training in the use of equipment and com-
puter software; 
(10) to establish or enhance mechanisms for 
sharing terrorism threat information; 
(11) for the cost of equipment (including soft-
ware) required to receive, transmit, handle, and 
store classified information; 
(12) for the protection of critical infrastructure 
against potential attack by the addition of barriers, 
fences, gates, and other such devices, except that the 
cost of such measures may not exceed the greater 
of— 
(A) $1,000,000 per project; or 
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(B) such greater amount as may be ap-
proved by the Secretary, which may not exceed 
10 percent of the total amount of the grant; 
and 
(13) to conduct port-wide exercises to strength-
en emergency preparedness of Federal, State, terri-
torial, and local officials responsible for port secu-
rity, including law enforcement personnel and fire-
fighters 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) supplant State or local funds for activities 
of the type described in subsection (d); 
(2) construct buildings or other physical facili-
ties, acquire land; or 
(3) make any State or local government cost- 
sharing contribution. 
(f) MULTIPLE PHASE PROJECTS.— 
(1) SENSE OF CONGRESS.—It is the sense of 
Congress that the Secretary should consider award-
ing grants under this section for projects that span 
multiple years. 
(2) FUNDING LIMITATION.—Not more than 20 
percent of the total grant funds awarded under this 
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section in any fiscal year may be awarded for 
projects that span multiple years. 
(g) CONSISTENCY WITH PLANS.—The Secretary 
shall ensure that each grant awarded under this section 
— 
(1) is used to supplement and support, in a 
consistent and coordinated manner, the applicable 
Area Maritime Transportation Security Plan; and 
(2) is used to supplement and support any ap-
plicable State or Urban Area Homeland Security 
Plan. 
(h) COORDINATION AND COOPERATION.—The Sec-
retary— 
(1) shall ensure that all projects that receive 
grant funding under this section within any area de-
fined 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 
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the United States, or the Inspector General of the Depart-
ment. 
SEC. 18. AUTHORIZATION OF APPROPRIATIONS. 
(a) IMPROVEMENTS
TO AUTOMATED TARGETING 
SYSTEM.—There are authorized to be appropriated 
$5,000,000 for each of the fiscal years 2007 through 2012 
to carry out the provisions of section 6. 
(b) CONTAINER SECURITY INITIATIVE.—There are 
authorized to be appropriated $196,000,000 for each of 
the fiscal years 2007 through 2012 to carry out the provi-
sions of section 12. 
(c) CUSTOMS-TRADE PARTNERSHIP AGAINST TER-
RORISM.—There are authorized to be appropriated 
$75,000,000 for each of the fiscal years 2007 through 
2012 to carry out the provisions of sections 13 and 14. 
(d) JOINT OPERATIONS CENTERS.— 
(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 15. 
(2) BUDGET
ANALYSIS.—Not later than 180 
days after the date of enactment of this Act, the 
Secretary shall submit to the appropriate congres-
sional committees a budget analysis for imple-
menting the provisions of section 15, including addi-
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