507 
(1) determine the requirements for recipients of grants under this 
section, including application requirements; 
(2) under subsection (a)(2), select the recipients of grants based 
solely on risk; and 
(3) under subsection (b), establish the priorities for which grant 
funds may be used under this section. 
(d) DISTRIBUTION OF GRANTS.—The Secretary and the Secretary of 
Transportation shall determine the most effective and efficient way to dis-
tribute grant funds to the recipients of grants determined by the Secretary 
under subsection (a). Subject to the determination made by the Secretaries, 
the Secretary may transfer funds to the Secretary of Transportation for the 
purposes of disbursing funds to the grant recipient. 
(e) GRANT SUBJECT TO CERTAIN TERMS AND CONDITIONS.—Except as 
otherwise specifically provided in this section, a grant provided under this 
section is subject to the terms and conditions applicable to a grant made 
under section 5307 of title 49, as in effect on January 1, 2007, and other 
terms and conditions determined necessary by the Secretary. 
(f) LIMITATION ON USES OF FUNDS.—Grants made under this section 
may not be used to make any State or local government cost-sharing con-
tribution under any other Federal law. 
(g) ANNUAL REPORTS.—Each recipient of a grant under this section 
shall report annually to the Secretary on the use of the grant funds. 
(h) GUIDELINES ON USE OF CONTRACTORS AND SUBCONTRACTORS.— 
Before the distribution of funds to recipients of grants, the Secretary shall 
issue guidelines to ensure that, to the extent that recipients of grants under 
this section use contractors or subcontractors, the recipients shall use small, 
minority, women-owned, or disadvantaged business concerns as contractors 
or subcontractors to the extent practicable. 
(i) COORDINATION WITH STATE HOMELAND SECURITY PLANS.—In es-
tablishing security improvement priorities under section 40503 of this title 
and in awarding grants for capital security improvements and operational 
security improvements under subsection (b), the Secretary shall act consist-
ently with relevant State homeland security plans. 
(j) MULTISTATE TRANSPORTATION SYSTEMS.—In cases in which a public 
transportation system operates in more than one State, the Secretary shall 
give appropriate consideration to the risks of the entire system, including 
those portions of the States into which the system crosses, in establishing 
security improvement priorities under section 40503 of this title and in 
awarding grants for capital security improvements and operational security 
improvements under subsection (b). 
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(k) CONGRESSIONAL NOTIFICATION.—Not later than 3 days before the 
award of any grant under this section, the Secretary shall notify simulta-
neously the appropriate congressional committees of the intent to award the 
grant. 
(l) RETURN OF MISSPENT GRANT FUNDS.—The Secretary shall establish 
a process to require the return of any misspent grant funds received under 
this section determined to have been spent for a purpose other than those 
specified in the grant award. 
§ 40505. Security exercises 
(a) IN GENERAL.—The Secretary shall establish a program for con-
ducting security exercises for public transportation agencies for the purpose 
of assessing and improving the capabilities of entities described in sub-
section (b) to prevent, prepare for, mitigate against, respond to, and recover 
from acts of terrorism. 
(b) COVERED ENTITIES.—Entities to be assessed under the program in-
clude— 
(1) Federal, State, and local agencies and tribal governments; 
(2) public transportation agencies; 
(3) governmental and nongovernmental emergency response pro-
viders and law enforcement personnel, including transit police; and 
(4) any other organization or entity that the Secretary determines 
appropriate. 
(c) REQUIREMENTS.—The Secretary shall ensure that the program— 
(1) requires, for public transportation agencies that the Secretary 
considers appropriate, exercises to be conducted that are— 
(A) scaled and tailored to the needs of specific public transpor-
tation systems, and include taking into account the needs of the 
elderly and individuals with disabilities; 
(B) live; 
(C) coordinated with appropriate officials; 
(D) as realistic as practicable and based on current risk assess-
ments, including credible threats, vulnerabilities, and con-
sequences; 
(E) inclusive, as appropriate, of frontline employees and man-
agers; and 
(F) consistent with the National Incident Management System, 
the National Response Plan, the National Infrastructure Protec-
tion Plan, the National Preparedness Guidance, the National Pre-
paredness Goal, and other national initiatives of this type; 
(2) provides that exercises described in paragraph (1) will be— 
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(A) evaluated by the Secretary against clear and consistent per-
formance measures; 
(B) assessed by the Secretary to learn best practices, which 
shall be shared with appropriate Federal, State, local, and tribal 
officials, governmental and nongovernmental emergency response 
providers, law enforcement personnel, including railroad and tran-
sit police, and appropriate stakeholders; and 
(C) followed by remedial action by covered entities in response 
to lessons learned; 
(3) involves individuals in neighborhoods around the infrastructure 
of a public transportation system; and 
(4) assists State, local, and tribal governments and public transpor-
tation agencies in designing, implementing, and evaluating exercises 
that conform to the requirements of paragraph (2). 
(d) NATIONAL EXERCISE PROGRAM.—The Secretary shall ensure that the 
exercise program developed under subsection (a) is a component of the na-
tional exercise program established under section 20508 of this title. 
(e) FERRY SYSTEM EXEMPTION.—This section does not apply to a ferry 
system for which drills are required to be conducted under section 70103 
of title 46. 
§ 40506. Public transportation security training program 
(a) APPLICABILITY.—A public transportation agency that receives a grant 
award under this chapter shall develop and implement a security training 
program under this section. 
(b) IN GENERAL.—The Secretary shall develop and issue detailed final 
regulations for a public transportation security training program to prepare 
public transportation employees, including frontline employees, for potential 
security threats and conditions. 
(c) CONSULTATION.—The Secretary shall develop the final regulations 
under subsection (b) in consultation with— 
(1) appropriate law enforcement, fire service, security, and terrorism 
experts; 
(2) representatives of public transportation agencies; and 
(3) nonprofit employee labor organizations representing public trans-
portation employees or emergency response personnel. 
(d) PROGRAM ELEMENTS.—The final regulations developed under sub-
section (b) shall require security training programs to include, at a min-
imum, elements to address the following: 
(1) Determination of the seriousness of any occurrence or threat. 
(2) Crew and passenger communication and coordination. 
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(3) Appropriate responses to defend oneself, including using non-
lethal defense devices. 
(4) Use of personal protective devices and other protective equip-
ment. 
(5) Evacuation procedures for passengers and employees, including 
individuals with disabilities and the elderly. 
(6) Training related to behavioral and psychological understanding 
of, and responses to, terrorist incidents, including the ability to cope 
with hijacker behavior, and passenger responses. 
(7) Live situational training exercises regarding various threat condi-
tions, including tunnel evacuation procedures. 
(8) Recognition and reporting of dangerous substances and sus-
picious packages, persons, and situations. 
(9) Understanding security incident procedures, including procedures 
for communicating with governmental and nongovernmental emergency 
response providers and for on-scene interaction with emergency re-
sponse providers. 
(10) Operation and maintenance of security equipment and systems. 
(11) Other security training activities that the Secretary considers 
appropriate. 
(e) REQUIRED PROGRAMS.— 
(1) DEVELOPMENT
AND
SUBMISSION
TO
SECRETARY.—Not later 
than 90 days after a public transportation agency meets the require-
ments under subsection (a), the public transportation agency shall de-
velop a security training program in accordance with the regulations 
developed under subsection (b) and submit the program to the Sec-
retary for approval. 
(2) APPROVAL.—Not later than 60 days after receiving a security 
training program proposal under this subsection, the Secretary shall 
approve the program or require the public transportation agency that 
developed the program to make any revisions to the program that the 
Secretary determines necessary for the program to meet the require-
ments of the regulations. A public transportation agency shall respond 
to the Secretary’s comments within 30 days after receiving them. 
(3) TRAINING.—Not later than 1 year after the Secretary approves 
a security training program proposal under this subsection, the public 
transportation agency that developed the program shall complete the 
training of all employees covered under the program. 
(4) UPDATES
OF
REGULATIONS
AND
PROGRAM
REVISIONS.—The 
Secretary shall periodically review and update, as appropriate, the 
training regulations issued under subsection (b) to reflect new or 
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