165 
qualification, sale, use, or operation of qualified anti-terrorism tech-
nologies deployed in defense against, in response to, or in recovery from 
an act of terrorism: 
(A) Contractors, subcontractors, suppliers, vendors and cus-
tomers of the Seller. 
(B) Contractors, subcontractors, suppliers, and vendors of the 
customer. 
(4) THIRD PARTY CLAIMS.—The liability insurance under this sec-
tion shall provide coverage against third party claims arising out of, 
relating to, or resulting from the sale or use of anti-terrorism tech-
nologies. 
(b) RECIPROCAL WAIVER OF CLAIMS.—The Seller shall enter into a re-
ciprocal waiver of claims with its contractors, subcontractors, suppliers, ven-
dors and customers, and contractors and subcontractors of the customers, 
involved in the manufacture, sale, use, or operation of qualified anti-ter-
rorism technologies, under which each party to the waiver agrees to be re-
sponsible for losses, including business interruption losses, that it sustains, 
or for losses sustained by its own employees resulting from an activity re-
sulting from an act of terrorism when qualified anti-terrorism technologies 
have been deployed in defense against, in response to, or in recovery from 
the act. 
(c) EXTENT OF LIABILITY.—Notwithstanding any other provision of law, 
liability for all claims against a Seller arising out of, relating to, or resulting 
from, an act of terrorism when qualified anti-terrorism technologies have 
been deployed in defense against, in response to, or in recovery from the 
act, and the claims result, or may result, in loss to the Seller, whether for 
compensatory or punitive damages or for contribution or indemnity, shall 
not be in an amount greater than the limits of liability insurance coverage 
required to be maintained by the Seller under this section. 
Subchapter V—Secure Handling of 
Ammonium Nitrate 
§ 10631. Definitions 
In this subchapter: 
(1) AMMONIUM NITRATE.—The term ‘‘ammonium nitrate’’ means— 
(A) solid ammonium nitrate that is chiefly the ammonium salt 
of nitric acid and contains not less than 33 percent nitrogen by 
weight; and 
(B) a mixture containing a percentage of ammonium nitrate 
that is equal to or greater than the percentage determined by the 
Secretary under section 10632(b) of this title. 
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(2) AMMONIUM NITRATE FACILITY.—The term ‘‘ammonium nitrate 
facility’’ means an entity that produces, sells or otherwise transfers 
ownership of, or provides application services for, ammonium nitrate. 
(3) AMMONIUM NITRATE PURCHASER.—The term ‘‘ammonium ni-
trate purchaser’’ means a person who purchases ammonium nitrate 
from an ammonium nitrate facility. 
§ 10632. Regulation of the sale and transfer of ammonium 
nitrate 
(a) IN GENERAL.—The Secretary shall regulate the sale and transfer of 
ammonium nitrate by an ammonium nitrate facility in accordance with this 
subchapter to prevent the misappropriation or use of ammonium nitrate in 
an act of terrorism. 
(b) AMMONIUM NITRATE MIXTURES.—The Secretary, in consultation 
with the heads of appropriate Federal departments and agencies (including 
the Secretary of Agriculture), shall, after notice and an opportunity for 
comment, establish a threshold percentage for ammonium nitrate in a sub-
stance. 
(c) REGISTRATION OF OWNERS OF AMMONIUM NITRATE FACILITIES.— 
(1) PROCESS.—The Secretary shall establish a process by which a 
person that— 
(A) owns an ammonium nitrate facility is required to register 
with the Department; and 
(B) registers under subparagraph (A) is issued a registration 
number for purposes of this subchapter. 
(2) INFORMATION.—A person applying to register under paragraph 
(1) shall submit to the Secretary— 
(A) the name, address, and telephone number of each ammo-
nium nitrate facility owned by that person; 
(B) the name of the person designated by that person as the 
point of contact for each facility, for purposes of this subchapter; 
and 
(C) other information the Secretary determines is appropriate. 
(d) REGISTRATION OF AMMONIUM NITRATE PURCHASERS.— 
(1) PROCESS.—The Secretary shall establish a process by which a 
person that— 
(A) intends to be an ammonium nitrate purchaser is required 
to register with the Department; and 
(B) registers under subparagraph (A) is issued a registration 
number for purposes of this subchapter. 
(2) INFORMATION.—A person applying to register under paragraph 
(1) as an ammonium nitrate purchaser shall submit to the Secretary— 
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(A) the name, address, and telephone number of the applicant; 
and 
(B) the intended use of ammonium nitrate to be purchased by 
the applicant. 
(e) RECORDS.— 
(1) MAINTENANCE OF RECORDS.—The owner of an ammonium ni-
trate facility shall— 
(A) maintain a record of each sale or transfer of ammonium ni-
trate, during the 2-year period beginning on the date of that sale 
or transfer; and 
(B) include in the record the information described in para-
graph (2). 
(2) SPECIFIC INFORMATION REQUIRED.—For each sale or transfer 
of ammonium nitrate, the owner of an ammonium nitrate facility 
shall— 
(A) record the name, address, telephone number, and registra-
tion number issued under subsection (c) or (d) of each person that 
purchases ammonium nitrate, in a manner prescribed by the Sec-
retary; 
(B) if applicable, record the name, address, and telephone num-
ber of an agent acting on behalf of the person described in sub-
paragraph (A), at the point of sale; 
(C) record the date and quantity of ammonium nitrate sold or 
transferred; and 
(D) verify the identity of the persons described in subpara-
graphs (A) and (B), as applicable, in accordance with a procedure 
established by the Secretary. 
(3) PROTECTION OF INFORMATION.—In maintaining records under 
paragraph (1), the owner of an ammonium nitrate facility shall take 
reasonable actions to ensure the protection of the information included 
in the records. 
(f) EXEMPTION FOR EXPLOSIVE PURPOSES.—The Secretary may exempt 
from this subchapter a person producing, selling, or purchasing ammonium 
nitrate exclusively for use in the production of an explosive under a license 
or permit issued under chapter 40 of title 18. 
(g) CONSULTATION.—In carrying out this section, the Secretary shall 
consult with the Secretary of Agriculture, States, and appropriate private- 
sector entities, to ensure that the access of agricultural producers to ammo-
nium nitrate is not unduly burdened. 
(h) DATA CONFIDENTIALITY.— 
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(1) IN GENERAL.—Notwithstanding section 552 of title 5 or the 
USA PATRIOT Act (Public Law 107–56, 115 Stat. 272), and except 
as provided in paragraph (2), the Secretary may not disclose to any 
person any information obtained under this subchapter. 
(2) EXCEPTION.—The Secretary may disclose information obtained 
by the Secretary under this subchapter to— 
(A) an officer or employee of the United States, or a person 
that has entered into a contract with the United States, who has 
a need to know the information to perform the duties of the offi-
cer, employee, or person; or 
(B) to a State agency under section 10634 of this title, under 
appropriate arrangements to ensure the protection of the informa-
tion. 
(i) REGISTRATION PROCEDURES AND CHECK OF TERRORIST SCREENING 
DATABASE.— 
(1) REGISTRATION PROCEDURES.— 
(A) IN GENERAL.—The Secretary shall establish procedures to 
efficiently receive applications for registration numbers under this 
subchapter, conduct the checks required under paragraph (2), and 
promptly issue or deny a registration number. 
(B) INITIAL 6-MONTH REGISTRATION PERIOD.—The Secretary 
shall take steps to maximize the number of registration applica-
tions that are submitted and processed during the 6-month period 
described in section 10636(e) of this title. 
(2) CHECK OF TERRORIST SCREENING DATABASE.— 
(A) CHECK REQUIRED.—The Secretary shall conduct a check of 
appropriate identifying information of a person seeking to register 
with the Department under subsection (c) or (d) against identi-
fying information that appears in the terrorist screening database 
of the Department. 
(B) AUTHORITY
TO
DENY
REGISTRATION
NUMBER.—If the 
identifying information of a person seeking to register with the 
Department under subsection (c) or (d) appears in the terrorist 
screening database of the Department, the Secretary may deny 
issuance of a registration number under this subchapter. 
(3) EXPEDITED REVIEW OF APPLICATIONS.— 
(A) IN GENERAL.—Following the 6-month period described in 
section 10636(e) of this title, the Secretary shall, to the extent 
practicable, issue or deny registration numbers under this sub-
chapter not later than 72 hours after the time the Secretary re-
ceives a complete registration application, unless the Secretary de-
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termines, in the interest of national security, that additional time 
is necessary to review an application. 
(B) NOTICE OF APPLICATION STATUS.—In all cases, the Sec-
retary shall notify a person seeking to register with the Depart-
ment under subsection (c) or (d) of the status of the application 
of that person not later than 72 hours after the time the Secretary 
receives a complete registration application. 
(4) EXPEDITED APPEALS PROCESS.— 
(A) REQUIREMENT.— 
(i) ESTABLISHMENT.—The Secretary shall establish an ex-
pedited appeals process for persons denied a registration 
number under this subchapter. 
(ii) TIME FOR RESOLVING APPEALS.—The Secretary shall, 
to the extent practicable, resolve appeals not later than 72 
hours after receiving a complete request for appeal unless the 
Secretary determines, in the interest of national security, that 
additional time is necessary to resolve an appeal. 
(B) CONSULTATION.—The Secretary, in developing the appeals 
process under subparagraph (A), shall consult with appropriate 
stakeholders. 
(C) GUIDANCE.—The Secretary shall provide guidance regard-
ing the procedures and information required for an appeal under 
subparagraph (A) to any person denied a registration number 
under this subchapter. 
(5) RESTRICTIONS ON USE AND MAINTENANCE OF INFORMATION.— 
(A) IN GENERAL.—Information constituting grounds for denial 
of a registration number under this section shall be maintained 
confidentially by the Secretary and may be used only for making 
determinations under this section. 
(B) SHARING OF INFORMATION.—Notwithstanding any other 
provision of this subchapter, the Secretary may share information 
with Federal, State, local, and tribal law enforcement agencies, as 
appropriate. 
(6) REGISTRATION INFORMATION.— 
(A) AUTHORITY
TO
REQUIRE
INFORMATION.—The Secretary 
may require a person applying for a registration number under 
this subchapter to submit information necessary to carry out the 
requirements of this section. 
(B) REQUIREMENT TO UPDATE INFORMATION.—The Secretary 
may require persons issued a registration under this subchapter to 
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update registration information submitted to the Secretary under 
this subchapter, as appropriate. 
(7) RECHECKS AGAINST TERRORIST SCREENING DATABASE.— 
(A) IN GENERAL.—The Secretary shall, as appropriate, recheck 
persons provided a registration number pursuant to this sub-
chapter against the terrorist screening database of the Depart-
ment, and may revoke the registration number if the Secretary de-
termines the person may pose a threat to national security. 
(B) NOTICE OF REVOCATION.—The Secretary shall, as appro-
priate, provide prior notice to a person whose registration number 
is revoked under this section, and the person shall have an oppor-
tunity to appeal, as provided in paragraph (4). 
§ 10633. Inspection and auditing of records 
The Secretary shall establish a process for the periodic inspection and au-
diting of the records maintained by owners of ammonium nitrate facilities 
for the purpose of monitoring compliance with this subchapter or for the 
purpose of deterring or preventing the misappropriation or use of ammo-
nium nitrate in an act of terrorism. 
§ 10634. Administrative provisions 
(a) COOPERATIVE AGREEMENTS.—The Secretary— 
(1) may enter into a cooperative agreement with the Secretary of Ag-
riculture, or the head of any State department of agriculture or its des-
ignee involved in agricultural regulation, in consultation with the State 
agency responsible for homeland security, to carry out the provisions 
of this subchapter; and 
(2) wherever possible, shall seek to cooperate with State agencies or 
their designees that oversee ammonium nitrate facility operations when 
seeking cooperative agreements to implement the registration and en-
forcement provisions of this subchapter. 
(b) DELEGATION.— 
(1) AUTHORITY.—The Secretary may delegate to a State the author-
ity to assist the Secretary in the administration and enforcement of 
this subchapter. 
(2) DELEGATION REQUIRED.—At the request of a Governor of a 
State, the Secretary shall delegate to that State the authority to carry 
out functions under sections 10632 and 10633 of this title, if the Sec-
retary determines that the State is capable of satisfactorily carrying 
out the functions. 
(3) FUNDING.—Subject to the availability of appropriations, if the 
Secretary delegates functions to a State under this subsection, the Sec-
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retary shall provide to that State sufficient funds to carry out the dele-
gated functions. 
(c) PROVISION OF GUIDANCE AND NOTIFICATION MATERIALS TO AMMO-
NIUM NITRATE FACILITIES.— 
(1) GUIDANCE.—The Secretary shall make available to each owner 
of an ammonium nitrate facility registered under section 10632(c) of 
this title guidance on— 
(A) the identification of suspicious ammonium nitrate purchases 
or transfers or attempted purchases or transfers; 
(B) the appropriate course of action to be taken by the ammo-
nium nitrate facility owner with respect to such a purchase or 
transfer or attempted purchase or transfer, including— 
(i) exercising the right of the owner of the ammonium ni-
trate facility to decline sale of ammonium nitrate; and 
(ii) notifying appropriate law enforcement entities; and 
(C) additional subjects determined appropriate to prevent the 
misappropriation or use of ammonium nitrate in an act of ter-
rorism. 
(2) USE OF MATERIALS AND PROGRAMS.—In providing guidance 
under this subsection, the Secretary shall, to the extent practicable, le-
verage relevant materials and programs. 
(3) NOTIFICATION MATERIALS.— 
(A) IN GENERAL.—The Secretary shall make available materials 
suitable for posting at locations where ammonium nitrate is sold. 
(B) DESIGN.—Materials made available under subparagraph 
(A) shall be designed to notify prospective ammonium nitrate pur-
chasers of— 
(i) the record-keeping requirements under section 10632 of 
this title; and 
(ii) the penalties for violating the requirements. 
§ 10635. Theft reporting requirement 
A person who is required to comply with section 10632(e) of this title 
who has knowledge of the theft or unexplained loss of ammonium nitrate 
shall report the theft or loss to the appropriate Federal law enforcement au-
thorities not later than 1 calendar day after the date on which the person 
becomes aware of the theft or loss. On receipt of the report, the relevant 
Federal authorities shall inform State, local, and tribal law enforcement en-
tities, as appropriate. 
§ 10636. Prohibitions and penalty 
(a) PROHIBITIONS.— 
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(1) TAKING POSSESSION.—A person may not purchase ammonium 
nitrate from an ammonium nitrate facility unless the person is reg-
istered under subsection (c) or (d) of section 10632 of this title, or is 
an agent of a person registered under subsection (c) or (d) of section 
10632. 
(2) TRANSFERRING POSSESSION.—An owner of an ammonium ni-
trate facility shall not transfer possession of ammonium nitrate from 
the ammonium nitrate facility to an ammonium nitrate purchaser who 
is not registered under subsection (c) or (d) of section 10632 of this 
title, or to an agent acting on behalf of an ammonium nitrate pur-
chaser when the purchaser is not registered under subsection (c) or (d) 
of section 10632. 
(3) OTHER PROHIBITIONS.—A person may not— 
(A) purchase ammonium nitrate without a registration number 
required under subsection (c) or (d) of section 10632 of this title; 
(B) own or operate an ammonium nitrate facility without a reg-
istration number required under section 10632(c) of this title; or 
(C) fail to comply with a requirement or violate another prohibi-
tion under this subchapter. 
(b) CIVIL PENALTY.—A person that violates this subchapter may be as-
sessed a civil penalty by the Secretary of not more than $50,000 per viola-
tion. 
(c) PENALTY CONSIDERATIONS.—In determining the amount of a civil 
penalty under this section, the Secretary shall consider— 
(1) the nature and circumstances of the violation; 
(2) with respect to the person who commits the violation, any history 
of prior violations, the ability to pay the penalty, and any effect the 
penalty is likely to have on the ability of the person to do business; 
and 
(3) any other matter that the Secretary determines that justice re-
quires. 
(d) NOTICE AND OPPORTUNITY FOR A HEARING.—A civil penalty may 
not be assessed under this subchapter unless the person liable for the pen-
alty has been given notice and an opportunity for a hearing on the violation 
for which the penalty is to be assessed in the county, parish, or incorporated 
city of residence of that person. 
(e) DELAY IN APPLICATION OF PROHIBITION.—Paragraphs (1) and (2) 
of subsection (a) shall apply on and after the date that is 6 months after 
the date that the Secretary issues a final rule implementing this subchapter. 
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§ 10637. Protection from civil liability 
(a) IN GENERAL.—An owner of an ammonium nitrate facility that in 
good faith refuses to sell or transfer ammonium nitrate to a person, or that 
in good faith discloses to the Department or to appropriate law enforcement 
authorities an actual or attempted purchase or transfer of ammonium ni-
trate, based upon a reasonable belief that the person seeking purchase or 
transfer of ammonium nitrate may use the ammonium nitrate to create an 
explosive device to be employed in an act of terrorism (as defined in section 
3077 of title 18), or to use ammonium nitrate for any other unlawful pur-
pose, shall not be liable in any civil action relating to that refusal to sell 
ammonium nitrate or that disclosure. 
(b) REASONABLE BELIEF.—A reasonable belief that a person may use 
ammonium nitrate to create an explosive device to be employed in an act 
of terrorism under subsection (a) may not solely be based on the race, sex, 
national origin, creed, religion, status as a veteran, or status as a member 
of the armed forces of the United States of that person. 
§ 10638. Preemption of other laws 
(a) OTHER FEDERAL
REGULATIONS.—Except as provided in section 
10637 of this title, nothing in this subchapter affects a regulation issued 
by an agency other than an agency of the Department. 
(b) STATE LAW.—Subject to section 10637 of this title, this subchapter 
preempts the laws of a State to the extent that the laws are inconsistent 
with this subchapter, except that this subchapter shall not preempt any 
State law that provides additional protection against the acquisition of am-
monium nitrate by terrorists or the use of ammonium nitrate in explosives 
in acts of terrorism or for other illicit purposes, as determined by the Sec-
retary. 
Subchapter VI—Chemical Facilities 
§ 10651. Definitions 
In this subchapter: 
(1) CFATS REGULATION.—The term ‘‘CFATS regulation’’ means— 
(A) an existing CFATS regulation; and 
(B) any regulation or amendment to an existing CFATS regula-
tion issued pursuant to the authority under section 10657 of this 
title. 
(2) CHEMICAL FACILITY OF INTEREST.—The term ‘‘chemical facility 
of interest’’ means a facility that— 
(A) holds, or that the Secretary has a reasonable basis to be-
lieve holds, a chemical of interest, as designated under Appendix 
A to part 27 of title 6, Code of Federal Regulations, or any suc-
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