109TH CONGRESS 
2D SESSION 
H. R. 4954
AN ACT 
To improve maritime and cargo security through 
enhanced layered defenses, and for other purposes.
109TH CONGRESS 
2D SESSION 
H. R. 4954
AN ACT 
To improve maritime and cargo security through enhanced 
layered defenses, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Security and Accountability For Every Port Act’’ or 
‘‘SAFE Port Act’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows:
Sec. 1. Short title; table of contents. 
Sec. 2. Findings. 
Sec. 3. Definitions. 
TITLE I—SECURITY OF UNITED STATES SEAPORTS 
Subtitle A—General Provisions 
Sec. 101. Definition of transportation security incident. 
Sec. 102. Protocols for resumption of trade. 
Sec. 103. Requirements relating to maritime facility security plans. 
Sec. 104. Unannounced inspections of maritime facilities. 
Sec. 105. Verification of individuals with access to secure areas of seaports. 
Sec. 106. Clarification on eligibility for transportation security cards. 
Sec. 107. Enhanced crewmember identification. 
Sec. 108. Long-range vessel tracking. 
Sec. 109. Maritime security command centers. 
Subtitle B—Grant and Training Programs 
Sec. 111. Port security grant program. 
Sec. 112. Port security training program. 
Sec. 113. Port security exercise program. 
Subtitle C—Miscellaneous Provisions 
Sec. 121. Increase in port of entry inspection officers. 
Sec. 123. Border Patrol unit for United States Virgin Islands. 
Sec. 124. Report on ownership and operation of United States seaports. 
Sec. 125. Report on security operations at certain United States seaports. 
Sec. 126. Report on arrival and departure manifests for certain commercial ves-
sels in the United States Virgin Islands. 
Sec. 127. Center of Excellence for Maritime Domain Awareness. 
Sec. 128. Report on security and trade at United States land ports. 
TITLE II—SECURITY OF THE INTERNATIONAL SUPPLY CHAIN 
Sec. 201. Security of the international supply chain. 
Sec. 202. Next generation supply chain security technologies. 
Sec. 203. International trade data system. 
Sec. 204. Foreign port assessments. 
Sec. 205. Pilot program to improve the security of empty containers. 
Sec. 206. Study and report on advanced imagery pilot programs. 
Sec. 207. Report on National Targeting Center.
Sec. 208. Integrated Container Inspection System Pilot Project. 
TITLE III—DIRECTORATE FOR POLICY, PLANNING, AND 
INTERNATIONAL AFFAIRS 
Sec. 301. Establishment of Directorate. 
Sec. 302. Study and report on customs revenue functions. 
TITLE IV—OFFICE OF DOMESTIC NUCLEAR DETECTION 
Sec. 401. Establishment of Office. 
Sec. 402. Nuclear and radiological detection systems.
SEC. 2. FINDINGS. 
Congress makes the following findings: 
(1) Maritime vessels are the primary mode of 
transportation for international trade and they carry 
over 80 percent of international trade by volume. 
(2) In 2004, maritime vessels carried approxi-
mately 9,700,000 shipping containers into United 
States seaports at an average of 27,000 containers 
per day. 
(3) The security of the international container 
supply chain and the maritime transportation sys-
tem is critical for the prosperity and liberty of all 
countries. 
(4) In its final report, the National Commission 
on Terrorist Attacks Upon the United States noted, 
‘‘While commercial aviation remains a possible tar-
get, terrorists may turn their attention to other 
modes of transportation. Opportunities to do harm 
are as great, or greater in maritime or surface 
transportation.’’.
(5) In May 2002, the Brookings Institution es-
timated that costs associated with United States 
port closures from a detonated terrorist weapon 
could add up to $1 trillion from the resulting eco-
nomic slump and changes in our Nation’s inability 
to trade. Anticipated port closures on the west coast 
of the United States could cost the United States 
economy $1 billion per day for the first five days 
after a terrorist attack. 
(6) Significant steps have been taken since the 
terrorist attacks against the United States that oc-
curred on September 11, 2001: 
(A) Congress passed the Maritime Trans-
portation Security Act of 2002 on November 
14, 2002. 
(B) The Coast Guard issued a comprehen-
sive set of port security regulations on October 
22, 2003. 
(C) The International Maritime Organiza-
tion adopted the International Ship and Port 
Facility (ISPS) Code in December 2002. 
(D) The White House issued Homeland 
Security Presidential Directive-13 in September 
2005 which lays out requirements for a com-
prehensive maritime security policy.
(7) Through both public and private projects, 
the private sector in the United States and overseas 
has worked with the Department of Homeland Secu-
rity to improve the security of the movement of 
cargo through the international supply chain. 
(8) Despite these steps, security gaps in the 
maritime transportation system remain, resulting in 
high-risk container systems not being checked over-
seas or domestically and ports that are vulnerable to 
terrorist attacks similar to the attack on the U.S.S. 
Cole. 
(9) Significant enhancements can be achieved 
by applying a multi-layered approach to supply chain 
security, in a coordinated fashion. Current supply 
chain programs within the Federal Government have 
been independently operated, often falling short of 
gains which could have been made if such programs 
were operated in a coordinated manner with clear 
system standards and a framework that creates in-
centives for security investments. 
(10) While it is impossible to completely remove 
the risk of a terrorist attack, security measures in 
the supply chain can add certainty and stability to 
the global economy, raise investor confidence, and 
facilitate trade. Some counterterrorism costs are in-
tegral to the price that must be paid to protect soci-
ety. 
However, 
counterterrorism 
measures 
also 
present an opportunity to increase the efficiency of 
the global trade system through international har-
monization of such measures. These efficiency gains 
are maximized when all countries adopt such 
counterterrorism measures. 
(11) Increasing transparency in the supply 
chain will assist in mitigating the impact of a ter-
rorist attack by allowing for a targeted shutdown of 
the international supply chain and expedited restora-
tion of commercial traffic. 
(12) International trade is vital to the Nation’s 
economy and the well-being and livelihood of United 
States citizens. 
(13) The Department of Homeland Security’s 
missions, including those related to United States 
and international borders, involve both building se-
curity for United States citizens and facilitating le-
gitimate trade that is critical to the Nation. 
(14) In creating the Department of Homeland 
Security, Congress clearly mandated in section 
412(b) of the Homeland Security Act of 2002 (6 
U.S.C. 212(b)) that the customs revenue functions
described in paragraph (2) of such section shall not 
be diminished. 
SEC. 3. DEFINITIONS. 
In this Act: 
(1) APPROPRIATE
CONGRESSIONAL
COMMIT-
TEES.—The term ‘‘appropriate congressional com-
mittees’’ has the meaning given the term in section 
2(2) of the Homeland Security Act of 2002 (6 
U.S.C. 101(2)). 
(2) DEPARTMENT.—The term ‘‘Department’’ 
means the Department of Homeland Security. 
(3) INTERNATIONAL SUPPLY CHAIN.—The term 
‘‘international supply chain’’ means the end-to-end 
process for shipping goods from a point of origin 
overseas to and from the United States. 
(4) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Homeland Security. 
TITLE I—SECURITY OF UNITED 
STATES SEAPORTS 
Subtitle A—General Provisions 
SEC. 101. DEFINITION OF TRANSPORTATION SECURITY IN-
CIDENT. 
Section 70101(6) of title 46, United States Code, is 
amended by inserting after ‘‘economic disruption’’ the fol-
lowing ‘‘(other than economic disruption caused by acts
that are unrelated to terrorism and are committed during 
a labor strike, demonstration, or other type of labor un-
rest)’’. 
SEC. 102. PROTOCOLS FOR RESUMPTION OF TRADE. 
(a) IN GENERAL.—Section 70103(a)(2)(J) of title 
46, United States Code, is amended—
(1) by striking ‘‘(J)’’ and inserting ‘‘(J)(i)’’; 
and 
(2) by adding at the end the following new 
clause: 
‘‘(ii) The plan required by clause (i) shall in-
clude protocols for the resumption of trade in the 
event of a transportation security incident that ne-
cessitates the suspension of trade through contin-
gency and continuity planning that ensures trade 
lanes are restored as quickly as possible. The proto-
cols shall be developed by the Secretary, in consulta-
tion with appropriate Federal, State, and local offi-
cials, including the Coast Guard Captain of the Port 
involved in the transportation security incident, and 
representatives of the maritime industry. The proto-
cols shall provide for—
‘‘(I) coordination with appropriate Federal, 
State, and local agencies, the private sector,
and appropriate overseas entities in developing 
such contingency and continuity planning; 
‘‘(II) coordination with appropriate Fed-
eral, State, and local agencies and the private 
sector on law enforcement actions, inter-modal 
rerouting 
plans, 
and 
identification 
and 
prioritization of goods that may enter the 
United States; and 
‘‘(III) designation of appropriate Federal 
officials to work with port authorities to rees-
tablish the flow of cargo by prioritizing ship-
ments based on appropriate factors, including 
factors relating to public health, national secu-
rity, and economic need.’’. 
(b) EFFECTIVE DATE.—The Secretary of Homeland 
Security shall develop the protocols described in section 
70103(a)(2)(J)(ii) of title 46, United States Code, as 
added by subsection (a), not later than 180 days after the 
date of the enactment of this Act. 
SEC. 103. REQUIREMENTS RELATING TO MARITIME FACIL-
ITY SECURITY PLANS. 
(a) 
FACILITY
SECURITY
PLANS.—Section 
70103(c)(3) of title 46, United States Code, is amended—
(1) in subparagraph (F), by striking ‘‘and’’ at 
the end;
(2) in subparagraph (G), by striking the period 
at the end and inserting ‘‘; and’’; and 
(3) by adding at the end the following new sub-
paragraph: 
‘‘(H) in the case of a security plan for a facil-
ity, be resubmitted for approval of each change in 
the ownership or operator of the facility that may 
substantially affect the security of the facility.’’. 
(b) 
FACILITY
SECURITY
OFFICERS.—Section 
70103(c) of title 46, United States Code, is amended by 
adding at the end the following: 
‘‘(8)(A) The Secretary shall require that the qualified 
individual having full authority to implement security ac-
tions for a facility described in paragraph (2) shall be a 
citizen of the United States. 
‘‘(B) The Secretary may waive the requirement of 
subparagraph (A) with respect to an individual if the Sec-
retary determines that it is appropriate to do so based on 
a complete background check of the individual and a re-
view of all terrorist watchlists to ensure that the individual 
is not identified on any such terrorist watchlist.’’. 
(c) 
FACILITY
SECURITY
ACCESS.—Section 
70103(c)(3)(C)(ii) of title 46, United States Code, is 
amended by adding at the end before the semicolon the 
following: ‘‘, including access by individuals engaged in the
surface transportation of intermodal containers in or out 
of a port facility’’. 
SEC. 104. UNANNOUNCED INSPECTIONS OF MARITIME FA-
CILITIES. 
Subparagraph (D) of section 70103(c)(4) of title 46, 
United States Code, is amended to read as follows: 
‘‘(D) verify the effectiveness of each such facil-
ity security plan periodically, but not less than twice 
annually, at least one of which shall be an inspection 
of the facility that is conducted without notice to the 
facility.’’. 
SEC. 105. VERIFICATION OF INDIVIDUALS WITH ACCESS TO 
SECURE AREAS OF SEAPORTS. 
(a) IMPLEMENTATION
OF
REQUIREMENTS.—Not-
withstanding any other provision of law, the Secretary of 
Homeland Security shall—
(1) not later than July 15, 2006, issue a notice 
of proposed rulemaking for regulations required to 
implement section 70105 of title 46, United States 
Code; 
(2) not later than November 15, 2006, issue 
final regulations required to implement that section; 
and 
(3) begin issuing transportation security cards 
to individuals at seaports facilities under subsection
(b) of that section in accordance with the schedule 
contained in subsection (b)(2) of this section. 
(b) TRANSPORTATION SECURITY CARDS.—
(1) MANAGEMENT.—Final regulations issued 
under subsection (a)(2) shall provide for Federal 
management of the system for issuing transportation 
security cards. 
(2) SCHEDULE FOR ISSUING TRANSPORTATION 
SECURITY CARDS AT SEAPORTS.—
(A) Not later than May 15, 2007, the Sec-
retary shall begin issuing transportation secu-
rity cards to individuals at the first 25 seaport 
facilities listed on the facility vulnerability as-
sessment issued by the Secretary under section 
70102 of title 46, United States Code. 
(B) Not later than November 15, 2007, 
the Secretary shall begin issuing transportation 
security cards to individuals at the next 30 sea-
port facilities listed on that assessment. 
(C) Not later than November 15, 2008, 
the Secretary shall issue transportation security 
cards to individuals at all other seaport facili-
ties. 
(c) INTERIM VERIFICATION OF INDIVIDUALS.—
(1) TERRORIST WATCH LIST COMPARISON AND 
IMMIGRATION RECORDS CHECK.—Not later than 90 
days after the date of enactment of this Act, the 
Secretary shall—
(A) complete a comparison of each indi-
vidual who has unescorted access to a secure 
area of a seaport facility (as designated in an 
approved facility security plan in accordance 
with section 70103(c) of title 46, United States 
Code) against terrorist watch lists to determine 
if the individual poses a threat; and 
(B) determine whether each such indi-
vidual may be denied admission to the United 
States, or removed from the United States, 
under the Immigration and Nationality Act (8 
U.S.C. 1101 et seq.). 
(2) CONTINUING REQUIREMENT.—In the case 
of an individual who is given unescorted access to a 
secure area of a seaport facility after the date on 
which the Secretary completes the requirements of 
paragraph (1) and before the date on which the Sec-
retary begins issuing transportation security cards 
at the seaport facility, the Secretary shall conduct a 
comparison of the individual against terrorist watch
lists and determine whether the individual is lawfully 
present in the United States. 
(3) INTERIM FINAL REGULATIONS.—In order to 
carry out this subsection, the Secretary shall issue 
interim final regulations to require submission to the 
Secretary of information necessary to carry out the 
requirements of paragraph (1). 
(4) PRIVACY REQUIREMENTS.—Terrorist watch 
list comparisons and immigration records checks 
under this subsection shall be carried out in accord-
ance with the requirements of section 552a of title 
5, United States Code. 
(5) RESTRICTIONS ON USE AND MAINTENANCE 
OF INFORMATION.—
(A) RESTRICTION ON DISCLOSURE.—Infor-
mation obtained by the Secretary in the course 
of comparing the individual against terrorist 
watch lists under this subsection may not be 
made available to the public, including the indi-
vidual’s employer. 
(B) CONFIDENTIALITY; USE.—Any infor-
mation constituting grounds for prohibiting the 
employment of an individual in a position de-
scribed in paragraph (1)(A) shall be maintained 
confidentially by the Secretary and may be used
only for making determinations under this sec-
tion. The Secretary may share any such infor-
mation with appropriate Federal, State, local, 
and tribal law enforcement agencies. 
(6) TERRORIST
WATCH
LISTS
DEFINED.—In 
this subsection, the term ‘‘terrorist watch lists’’ 
means all available information on known or sus-
pected terrorists or terrorist threats. 
(d) REPORTING.—Not later than 120 days after the 
date of enactment of this Act, the Secretary shall submit 
to the appropriate congressional committees a report con-
taining information on—
(1) the number of matches made in conducting 
terrorist watch list comparisons, and the number of 
individuals found to be unlawfully present in the 
United States, under subsection (c); 
(2) the corresponding seaport facilities at which 
the matches and unlawfully present individuals were 
identified; and 
(3) the actions taken as a result of the terrorist 
watchlist comparisons and immigration records 
checks under subsection (c). 
(e) TREATMENT OF INDIVIDUALS RECEIVING HAZ-
ARDOUS MATERIALS ENDORSEMENTS.—
(1) IN GENERAL.—To the extent the Secretary 
determines that the background records check con-
ducted under section 5103a of title 49, United 
States Code, and the background records check con-
ducted under section 70105 of title 46, United 
States Code, are equivalent, the Secretary shall de-
termine that an individual does not pose a risk war-
ranting denial of a transportation security card 
issued under section 70105 of title 46, United States 
Code, if such individual—
(A) has successfully completed a back-
ground records check under section 5103a of 
title 49, United States Code; and 
(B) possesses a current and valid haz-
ardous materials endorsement in accordance 
with section 1572 of title 49, Code of Federal 
Regulations. 
(2) LIMITATIONS.—Notwithstanding paragraph 
(1), the Secretary may deny an individual a trans-
portation security card under section 70105 of title 
46, United States Code, if the Secretary has sub-
stantial evidence that the individual poses a risk to 
national security. 
(3) REDUCTION IN FEES.—The Secretary shall 
reduce, to the extent practicable, any fees associated
with obtaining a transportation security card under 
section 70105 of title 46, United States Code, for 
any individual referred to in paragraph (1). 
(f) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated $20,000,000 for fiscal year 
2007 to carry out this section. 
SEC. 106. CLARIFICATION ON ELIGIBILITY FOR TRANSPOR-
TATION SECURITY CARDS. 
Section 70105(c)(2) of title 46, United States Code, 
is amended by inserting ‘‘subparagraph (A), (B), or (D) 
of’’ before ‘‘paragraph (1)’’. 
SEC. 107. ENHANCED CREWMEMBER IDENTIFICATION. 
Section 70111 of title 46, United States Code, is 
amended— 
(1) in subsection (a) by striking ‘‘The’’ and in-
serting ‘‘Not later than May 15, 2007, the’’; and 
(2) in subsection (b) by striking ‘‘The’’ and in-
serting ‘‘Not later than May 15, 2007, the’’. 
SEC. 108. LONG-RANGE VESSEL TRACKING. 
(a) REGULATIONS.—Section 70115 of title 46, 
United States Code is amended in the first sentence by 
striking ‘‘The Secretary’’ and inserting ‘‘Not later than 
April 1, 2007, the Secretary’’. 
(b) VOLUNTARY PROGRAM.—The Secretary of Home-
land Security may issue regulations to establish a vol-
untary long-range automated vessel tracking system for 
vessels described in section 70115 of title 46, United 
States Code, during the period before regulations are 
issued under subsection (a) of such section. 
SEC. 109. MARITIME SECURITY COMMAND CENTERS. 
(a) IN GENERAL.—Chapter 701 of title 46, United 
States Code, is amended by adding at the end the fol-
lowing new section: 
‘‘§ 70122. Maritime security command centers 
‘‘(a) ESTABLISHMENT.—The Secretary, in consulta-
tion with appropriate Federal, State, and local officials, 
shall establish an integrated network of virtual and phys-
ical maritime security command centers at appropriate 
United States seaports and maritime regions, as deter-
mined by the Secretary, to—
‘‘(1) enhance information sharing; 
‘‘(2) facilitate day-to-day operational coordina-
tion; and 
‘‘(3) in the case of a transportation security in-
cident, facilitate incident management and response. 
‘‘(b) CHARACTERISTICS.—Each maritime security 
command center described in subsection (a) shall—
‘‘(1) be regionally based and utilize where avail-
able the compositional and operational characteris-
tics, facilities and information technology systems of
current operational centers for port and maritime 
security and other similar existing facilities and sys-
tems; 
‘‘(2) be adapted to meet the security needs, re-
quirements, and resources of the seaport and mari-
time region the center will cover; and 
‘‘(3) to the maximum extent practicable, not in-
volve the construction of new facilities, but shall uti-
lize information technology, virtual connectivity, and 
existing facilities to create an integrated, real-time 
communication and information sharing network. 
‘‘(c) PARTICIPATION.—
‘‘(1) FEDERAL PARTICIPATION.—The following 
entities shall participate in the integrated network of 
maritime security command centers described in 
subsection (a): 
‘‘(A) The Coast Guard. 
‘‘(B) U.S. Customs and Border Protection. 
‘‘(C) U.S. Immigration and Customs En-
forcement. 
‘‘(D) Other appropriate Federal agencies. 
‘‘(2) STATE AND LOCAL PARTICIPATION.—Ap-
propriate State and local law enforcement agencies 
may participate in the integrated network of mari-
time security command centers described in sub-
section (a). 
‘‘(d) RESPONSIBILITIES.—Each maritime security 
command center described in subsection (a) shall—
‘‘(1) assist, as appropriate, in the implementa-
tion of maritime transportation security plans devel-
oped under section 70103; 
‘‘(2) implement the transportation security inci-
dent response plans required under section 70104; 
‘‘(3) carry out information sharing activities 
consistent with those activities required under sec-
tion 1016 of the National Security Intelligence Re-
form Act of 2004 (6 U.S.C. 485) and the Homeland 
Security Information Sharing Act (6 U.S.C. 481 et 
seq.); 
‘‘(4) conduct short- and long-range vessel track-
ing under sections 70114 and 70115; and 
‘‘(5) carry out such other responsibilities as de-
termined by the Secretary. 
‘‘(e) SECURITY CLEARANCES.—The Secretary shall 
sponsor and expedite individuals participating in a mari-
time security command center described in subsection (a) 
in gaining or maintaining their security clearances. 
Through the Captain of the Port, the Secretary may iden-
tify key individuals who should participate. In addition,
the port or other entities may appeal to the Captain of 
the Port for sponsorship. 
‘‘(f) SECURITY INCIDENTS.—During a transportation 
security incident involving the port, the Coast Guard Cap-
tain of the Port designated by the Commandant of the 
Coast Guard in a maritime security command center de-
scribed in subsection (a) shall act as the incident com-
mander, unless otherwise directed by the President. 
‘‘(g) RULE OF CONSTRUCTION.—Nothing in this sec-
tion shall be construed to affect the normal command and 
control procedures for operational entities in the Depart-
ment, unless so directed by the Secretary. 
‘‘(h) AUTHORIZATION OF APPROPRIATIONS.—There 
are authorized to be appropriated $60,000,000 for each 
of the fiscal years 2007 through 2012 to carry out this 
section and section 108(c) of the Security and Account-
ability For Every Port Act.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
at the beginning of chapter 701 of title 46, United States 
Code, is amended by adding at the end the following:
‘‘70122. Maritime security command centers.’’.
(c) IMPLEMENTATION PLAN
AND BUDGET ANAL-
YSIS.—The Secretary of Homeland Security shall submit 
to the appropriate congressional committees a plan for the 
implementation of section 70122 of title 46, United States 
Code, as added by subsection (a), and a budget analysis
for the implementation of such section, including addi-
tional cost-sharing arrangements with other Federal de-
partments and agencies and other participants involved in 
the maritime security command centers described in such 
section, not later than 180 days after the date of the en-
actment of this Act. 
Subtitle B—Grant and Training 
Programs 
SEC. 111. PORT SECURITY GRANT PROGRAM. 
(a) IN GENERAL.—Title V of the Homeland Security 
Act of 2002 (6 U.S.C. 311 et seq.) is amended—
(1) by redesignating the second section 510 (as 
added by section 7303(d) of Public Law 108–458 
(118 Stat. 3844)) as section 511; and 
(2) by adding at the end the following new sec-
tion: 
‘‘SEC. 512. PORT SECURITY GRANT PROGRAM. 
‘‘(a) GRANTS AUTHORIZED.—The Secretary shall es-
tablish a grant program to allocate Federal financial as-
sistance to United States seaports on the basis of risk and 
need. 
‘‘(b) PRIORITIZATION PROCESS.—In awarding grants 
under this section, the Secretary shall conduct an assess-
ment of United States seaports to develop a prioritization
for awarding grants authorized under subsection (a) based 
upon—
‘‘(1) the most current risk assessment available 
from the Department; 
‘‘(2) the national economic and strategic de-
fense considerations of individual ports; and 
‘‘(3) any other factors that the Secretary deter-
mines to be appropriate. 
‘‘(c) APPLICATION.—
‘‘(1) IN GENERAL.—Any entity or facility sub-
ject to an Area Maritime Transportation Security 
Plan required under subsection (b) or (c) of section 
70103 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—
‘‘(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 coordi-
nating the project into the security of the 
greater port area, as identified in the Area 
Maritime Transportation 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 secu-
rity vulnerabilities; 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 pur-
poses and amounts not obligated or expended 
are returned. 
‘‘(d) USE OF FUNDS.—Grants awarded under this 
section may be used—
‘‘(1) to help implement Area Maritime Trans-
portation Security Plans required under section 
70103(b) of title 46, United States Code, or the ves-
sel or facility security plans required under section 
70103(c) of title 46, United States Code; 
‘‘(2) to remedy port security vulnerabilities 
identified through vulnerability assessments ap-
proved by the Secretary; 
‘‘(3) for non-Federal projects contributing to 
the overall security of a seaport or a system of 
United States seaports, as determined by the Sec-
retary;
‘‘(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 Transportation Secu-
rity Plan for a seaport area if the Secretary—
‘‘(A) increases the threat level under the 
Homeland Security Advisory System to Code 
Orange or Code Red; or 
‘‘(B) raises the Maritime Security level to 
MARSEC Level 2 or 3; 
‘‘(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 Transportation Security Plan, if the 
need is based upon vulnerability assessments ap-
proved by the Secretary 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 communications equipment that is interoperable 
with Federal, State, and local agencies and com-
puter software, to enhance terrorism preparedness;
‘‘(8) to conduct exercises or training for preven-
tion and detection of, preparedness for, response to, 
or recovery from terrorist attacks; 
‘‘(9) to establish or enhance mechanisms for 
sharing terrorism threat information and to ensure 
that the mechanisms are interoperable with Federal, 
State, and local agencies; 
‘‘(10) for the cost of equipment (including soft-
ware) required to receive, transmit, handle, and 
store classified information; 
‘‘(11) for the protection of critical infrastruc-
ture against potential attack by the addition of bar-
riers, 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 
‘‘(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; 
‘‘(12) 
to 
conduct 
port-wide 
exercises 
to 
strengthen emergency preparedness of Federal, 
State, territorial, and local officials responsible for 
port security, including law enforcement personnel 
and firefighters and other first responders, in sup-
port of the Area Maritime Security Plan; and
‘‘(13) for the purpose of enhancing supply-chain 
security at truck inspection stations in or near high 
volume seaports in coordination with States and 
local government. 
‘‘(e) REIMBURSEMENT OF COSTS.—An applicant for 
a grant under this section may petition the Secretary for 
the reimbursement of the cost of any activity relating to 
prevention (including detection) of, preparedness for, re-
sponse to, or recovery from acts of terrorism that is a Fed-
eral duty and usually performed by a Federal agency, and 
that is being performed by a State or local government 
(or both) under agreement with a Federal agency. 
‘‘(f) 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; 
‘‘(3) acquire land; or 
‘‘(4) make any State or local government cost-
sharing contribution. 
‘‘(g) MATCHING REQUIREMENT.—
‘‘(1) IN GENERAL.—Except as provided in sub-
paragraph (A) or (B) of paragraph (2), Federal 
funds for any eligible project under this section shall
not exceed 75 percent of the total cost of such 
project. 
‘‘(2) EXCEPTIONS.—
‘‘(A) SMALL PROJECTS.—The requirement 
of paragraph (1) shall not apply with respect to 
a project with a total cost of not more than 
$25,000. 
‘‘(B) HIGHER
LEVEL
OF
FEDERAL
SUP-
PORT
REQUIRED.—The requirement of para-
graph (1) shall not apply with respect to a 
project if the Secretary determines that the 
project merits support and cannot be under-
taken without a higher rate of Federal support 
than the rate described in paragraph (1). 
‘‘(3) IN-KIND CONTRIBUTIONS.—Each recipient 
of a grant under this section may meet the require-
ment of paragraph (1) by making in-kind contribu-
tions of goods or services that are directly linked 
with the purpose for which the grant is made, as de-
termined by the Secretary, including any necessary 
personnel expenses, contractor services, administra-
tive costs, equipment, fuel, or maintenance, and 
rental space. 
‘‘(h) MULTIPLE PHASE PROJECTS.—