H. R. 1—213 
‘‘(g) AIR CARGO ON PASSENGER AIRCRAFT.— 
‘‘(1) IN GENERAL.—Not later than 3 years after the date 
of enactment of the Implementing Recommendations of the 
9/11 Commission Act of 2007, the Secretary of Homeland Secu-
rity shall establish a system to screen 100 percent of cargo 
transported on passenger aircraft operated by an air carrier 
or foreign air carrier in air transportation or intrastate air 
transportation to ensure the security of all such passenger 
aircraft carrying cargo. 
‘‘(2) MINIMUM STANDARDS.—The system referred to in para-
graph (1) shall require, at a minimum, that equipment, tech-
nology, procedures, personnel, or other methods approved by 
the Administrator of the Transportation Security Administra-
tion, are used to screen cargo carried on passenger aircraft 
described in paragraph (1) to provide a level of security 
commensurate with the level of security for the screening of 
passenger checked baggage as follows: 
‘‘(A) 50 percent of such cargo is so screened not later 
than 18 months after the date of enactment of the Imple-
menting Recommendations of the 9/11 Commission Act of 
2007. 
‘‘(B) 100 percent of such cargo is so screened not later 
than 3 years after such date of enactment. 
‘‘(3) REGULATIONS.— 
‘‘(A) INTERIM FINAL RULE.—The Secretary of Homeland 
Security may issue an interim final rule as a temporary 
regulation to implement this subsection without regard 
to the provisions of chapter 5 of title 5. 
‘‘(B) FINAL RULE.— 
‘‘(i) IN
GENERAL.—If the Secretary issues an 
interim final rule under subparagraph (A), the Sec-
retary shall issue, not later than one year after the 
effective date of the interim final rule, a final rule 
as a permanent regulation to implement this sub-
section in accordance with the provisions of chapter 
5 of title 5. 
‘‘(ii) FAILURE TO ACT.—If the Secretary does not 
issue a final rule in accordance with clause (i) on 
or before the last day of the one-year period referred 
to in clause (i), the Secretary shall submit to the Com-
mittee on Homeland Security of the House of Rep-
resentatives, Committee on Commerce, Science, and 
Transportation of the Senate, and the Committee on 
Homeland Security and Governmental Affairs of the 
Senate a report explaining why the final rule was 
not timely issued and providing an estimate of the 
earliest date on which the final rule will be issued. 
The Secretary shall submit the first such report within 
10 days after such last day and submit a report to 
the Committees containing updated information every 
30 days thereafter until the final rule is issued. 
‘‘(iii) SUPERCEDING OF INTERIM FINAL RULE.—The 
final rule issued in accordance with this subparagraph 
shall supersede the interim final rule issued under 
subparagraph (A). 
‘‘(4) REPORT.—Not later than 1 year after the date of 
establishment of the system under paragraph (1), the Secretary
H. R. 1—214 
shall submit to the Committees referred to in paragraph 
(3)(B)(ii) a report that describes the system. 
‘‘(5) SCREENING
DEFINED.—In this subsection the term 
‘screening’ means a physical examination or non-intrusive 
methods of assessing whether cargo poses a threat to transpor-
tation security. Methods of screening include x-ray systems, 
explosives detection systems, explosives trace detection, explo-
sives detection canine teams certified by the Transportation 
Security Administration, or a physical search together with 
manifest verification. The Administrator may approve addi-
tional methods to ensure that the cargo does not pose a threat 
to transportation security and to assist in meeting the require-
ments of this subsection. Such additional cargo screening 
methods shall not include solely performing a review of informa-
tion about the contents of cargo or verifying the identity of 
a shipper of the cargo that is not performed in conjunction 
with other security methods authorized under this subsection, 
including whether a known shipper is registered in the known 
shipper database. Such additional cargo screening methods may 
include a program to certify the security methods used by 
shippers pursuant to paragraphs (1) and (2) and alternative 
screening methods pursuant to exemptions referred to in sub-
section (b) of section 1602 of the Implementing Recommenda-
tions of the 9/11 Commission Act of 2007.’’. 
(b) ASSESSMENT OF EXEMPTIONS.— 
(1) TSA ASSESSMENT.— 
(A) IN GENERAL.—Not later than 120 days after the 
date of enactment of this Act, the Secretary of Homeland 
Security shall submit to the appropriate committees of 
Congress and to the Comptroller General a report con-
taining an assessment of each exemption granted under 
section 44901(i)(1) of title 49, United States Code, for the 
screening required by such section for cargo transported 
on passenger aircraft and an analysis to assess the risk 
of maintaining such exemption. 
(B) CONTENTS.—The report under subparagraph (A) 
shall include— 
(i) the rationale for each exemption; 
(ii) what percentage of cargo is not screened in 
accordance with section 44901(g) of title 49, United 
States Code; 
(iii) the impact of each exemption on aviation secu-
rity; 
(iv) the projected impact on the flow of commerce 
of eliminating each exemption, respectively, should the 
Secretary choose to take such action; and 
(v) plans and rationale for maintaining, changing, 
or eliminating each exemption. 
(C) FORMAT.—The Secretary may submit the report 
under subparagraph (A) in both classified and redacted 
formats if the Secretary determines that such action is 
appropriate or necessary. 
(2) GAO ASSESSMENT.—Not later than 120 days after the 
date on which the report under paragraph (1) is submitted, 
the Comptroller General shall review the report and submit 
to the Committee on Homeland Security of the House of Rep-
resentatives, the Committee on Commerce, Science, and
H. R. 1—215 
Transportation of the Senate, and the Committee on Homeland 
Security and Governmental Affairs of the Senate an assessment 
of the methodology of determinations made by the Secretary 
for maintaining, changing, or eliminating an exemption under 
section 44901(i)(1) of title 49, United States Code. 
SEC. 1603. 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 
through 2011’’. 
(b) SUBMISSION OF COST-SHARING STUDY AND PLAN.—Not later 
than 60 days after the date of enactment of this Act, the Secretary 
for Homeland Security shall submit to the appropriate congressional 
committees the cost sharing study described in section 4019(d) 
of the Intelligence Reform and Terrorism Prevention Act of 2004 
(118 Stat. 3722), together with the Secretary’s analysis of the study, 
a list of provisions of the study the Secretary intends to implement, 
and a plan and schedule for implementation of such listed provi-
sions. 
SEC. 1604. IN-LINE BAGGAGE SYSTEM DEPLOYMENT. 
(a) IN GENERAL.—Section 44923 of title 49, United States Code, 
is amended— 
(1) in subsection (a) by striking ‘‘may make’’ and inserting 
‘‘shall make’’; 
(2) in subsection (d)(1) by striking ‘‘may’’ and inserting 
‘‘shall’’; 
(3) in subsection (h)(1) by striking ‘‘2007’’ and inserting 
‘‘2028’’; 
(4) in subsection (h) by striking paragraphs (2) and (3) 
and inserting the following: 
‘‘(2) ALLOCATION.—Of the amount made available under 
paragraph (1) for a fiscal year, not less than $200,000,000 
shall be allocated to fulfill letters of intent issued under sub-
section (d). 
‘‘(3) DISCRETIONARY GRANTS.—Of the amount made avail-
able under paragraph (1) for a fiscal year, up to $50,000,000 
shall be used to make discretionary grants, including other 
transaction agreements for airport security improvement 
projects, with priority given to small hub airports and nonhub 
airports.’’; 
(5) by redesignating subsection (i) as subsection (j); and 
(6) by inserting after subsection (h) the following: 
‘‘(i) LEVERAGED FUNDING.—For purposes of this section, a grant 
under subsection (a) to an airport sponsor to service an obligation 
issued by or on behalf of that sponsor 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 of the Transportation 
Security Administration shall establish a prioritization schedule 
for airport security improvement projects described in section 
44923 of title 49, United States Code, based on risk and other 
relevant factors, to be funded under that section. The schedule 
shall include both hub airports referred to in paragraphs (29), 
(31), and (42) of section 40102 of such title and nonhub airports 
(as defined in section 47102(13) of such title).
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(2) AIRPORTS THAT HAVE INCURRED ELIGIBLE COSTS.—The 
schedule shall include airports that have incurred eligible costs 
associated with development of partial or completed in-line 
baggage systems before the date of enactment of this Act in 
reasonable anticipation 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. 
(3) REPORT.—Not later than 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 Committee on Commerce, 
Science, and Transportation of the Senate and the Committee 
on Homeland Security of the House of Representatives. 
SEC. 1605. STRATEGIC PLAN TO TEST AND IMPLEMENT ADVANCED 
PASSENGER PRESCREENING SYSTEM. 
(a) IN GENERAL.—Not later than 120 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 Committee on Homeland Secu-
rity of the House of Representatives, the Committee on Commerce, 
Science, and Transportation of the Senate, and the Committee 
on Homeland Security and Governmental Affairs of the Senate 
a plan that— 
(1) describes the system to be utilized by the Department 
of Homeland Security to assume the performance of comparing 
passenger information, as defined by the Administrator, to 
the automatic selectee and no-fly lists, utilizing appropriate 
records in the consolidated and integrated terrorist watchlist 
maintained by the Federal Government; 
(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 international flights; 
and 
(4) describes how the system complies with section 552a 
of title 5, United States Code. 
(b) GAO ASSESSMENT.—Not later than 180 days after the date 
of enactment of this Act, the Comptroller General shall submit 
a report to the Committee on Commerce, Science, and Transpor-
tation of the Senate and the Committee on Homeland Security 
of the House of Representatives that— 
(1) describes the progress made by the Transportation Secu-
rity Administration in implementing the secure flight passenger 
pre-screening program; 
(2) describes the effectiveness of the current appeals process 
for passengers wrongly assigned to the no-fly and terrorist 
watch lists; 
(3) describes the Transportation Security Administration’s 
plan to protect private passenger information and progress 
made in integrating the system with the pre-screening program 
for international flights operated by United States Customs 
and Border Protection; 
(4) provides a realistic determination of when the system 
will be completed; and