‘‘(3) any other factors that the Secretary deter-
mines to be appropriate. 
‘‘(c) APPLICATION.— 
‘‘(1) IN GENERAL.—Any entity or facility subject 
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 appli-
cation 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 RE-
IMBURSEMENT.—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 coordinating 
the project into the security of the greater 
port area, as identified in the Area Mari-
time Transportation Security Plan; 
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‘‘(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 agree-
ments 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; 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 Inspector 
General and the Office of Grants and Training, shall 
issue guidelines to establish appropriate accounting, 
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 
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‘‘(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 Trans-
portation Security Plans required under section 
70103(b) of title 46, United States Code; 
‘‘(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 seaport or a system of United 
States seaports, as determined by the Secretary; 
‘‘(4) for the salaries, benefits, overtime compensa-
tion, and other costs of additional security personnel 
for State and local agencies for activities required by 
the Area Maritime Transportation Security 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; 
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‘‘(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 computer software, to enhance terrorism pre-
paredness; 
‘‘(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; 
‘‘(10) for the cost of equipment (including soft-
ware) required to receive, transmit, handle, and store 
classified information; 
‘‘(11) 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 
‘‘(12) to conduct port-wide exercises to strengthen 
emergency preparedness of Federal, State, territorial, 
and local officials responsible for port security, in-
cluding law enforcement personnel and firefighters 
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; 
‘‘(3) acquire land; or 
‘‘(4) make any State or local government cost- 
sharing contribution. 
‘‘(f) 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 ex-
ceed 75 percent of the total cost of such project. 
‘‘(2) EXCEPTIONS.— 
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