‘‘(iii) alarms, cameras, and other pro-
tection systems; 
‘‘(iv) communication systems; 
‘‘(v) any utility or infrastructure (in-
cluding transportation) upon which the fa-
cility relies to operate safely and securely; 
or 
‘‘(vi) the structural integrity of equip-
ment for storage, handling, and other pur-
poses. 
‘‘(F) Any information relating to threats 
relevant to the facility that is provided by the 
Secretary in accordance with paragraph (3). 
‘‘(G) Such other information as the Sec-
retary determines is appropriate. 
‘‘(2) REQUIREMENTS FOR FACILITY SECURITY 
PLANS.—In the case of a facility assigned to the 
high-risk tier under section 1802(c)(4), the Sec-
retary shall require that the facility security plan re-
quired under this section include each of the fol-
lowing: 
‘‘(A) Chemical facility security measures to 
address the vulnerabilities of the facility to a 
chemical facility terrorist incident. 
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‘‘(B) A plan for periodic drills and exer-
cises to be conducted at the facility that include 
participation by local law enforcement agencies 
and first responders, as appropriate. 
‘‘(C) Equipment, plans, and procedures to 
be implemented or used by or at the chemical 
facility in the event of a chemical facility ter-
rorist incident that affects the facility, including 
site evacuation, release mitigation, and contain-
ment plans. 
‘‘(D) An identification of any steps taken 
to coordinate with State and local law enforce-
ment agencies, first responders, and Federal of-
ficials on security measures and plans for re-
sponse to a chemical facility terrorist incident. 
‘‘(E) A description of other actions or pro-
cedures the Secretary determines are appro-
priate to address the vulnerability of the facility 
to a chemical facility terrorist incident. 
‘‘(3) PROVISION OF THREAT-RELATED INFOR-
MATION.—The Secretary shall provide in a timely 
manner, to the maximum extent practicable under 
applicable authority and in the interests of national 
security, to an owner or operator of a facility as-
signed to the high-risk tier under section 1802(c)(4), 
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threat information that is relevant to the facility, in-
cluding an assessment of the most likely method 
that could be used by terrorists to exploit any 
vulnerabilities of the facility and the likelihood of the 
success of such method. 
‘‘(4) RED
TEAM
EXERCISES.—The Secretary 
shall conduct red team exercises at facilities selected 
by the Secretary that have been assigned to the 
high-risk tier under section 1802(c)(4). The exer-
cises shall be conducted after informing the owner or 
operator of the facility selected and shall be designed 
to identify at each selected facility— 
‘‘(A) any vulnerabilities of the facility; 
‘‘(B) possible modes by which the facility 
could be attacked; and 
‘‘(C) any weaknesses in the security plan 
of the facility. 
‘‘(c) SECURITY PERFORMANCE REQUIREMENTS.— 
‘‘(1) IN
GENERAL.—The Secretary shall, by 
regulation, establish security performance require-
ments for the facility security plans required by 
chemical facilities assigned to each risk-based tier 
established under section 1802(c). The regulations 
shall: 
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‘‘(A) require separate and increasingly 
stringent security performance requirements for 
facility security plans as the level of risk associ-
ated with the tier increases; and 
‘‘(B) permit each chemical facility submit-
ting a facility security plan to select a combina-
tion of chemical facility security measures that 
satisfy the security performance requirements 
established by the Secretary under this sub-
section. 
‘‘(2) CRITERIA.—In establishing the security 
performance requirements under paragraph (1), the 
Secretary shall consider the criteria under subsection 
(a)(2). 
‘‘(3) GUIDANCE.—The Secretary shall provide 
guidance to each chemical facility on the list main-
tained by the Secretary under section 1802(b)(1) re-
garding the types of chemical facility security meas-
ures that, if applied, could satisfy the requirements 
under this section. 
‘‘(4) ENHANCED
SECURITY
MEASURES.—The 
Secretary may require chemical facilities to maintain 
the capability to enhance security measures during 
periods of time when the Secretary determines that 
heightened threat conditions exist. 
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‘‘(d) CO-LOCATED CHEMICAL FACILITIES.—The Sec-
retary shall allow the owners or operators of two or more 
chemical facilities that are located geographically close to 
each other or otherwise co-located to develop and imple-
ment coordinated vulnerability assessments and facility se-
curity plans, at the discretion of the owner or operator 
of the chemical facilities. 
‘‘(e) PROCEDURES, PROTOCOLS, AND STANDARDS 
SATISFYING REQUIREMENTS
FOR VULNERABILITY AS-
SESSMENT AND SECURITY PLAN.— 
‘‘(1) DETERMINATION BY THE SECRETARY.—In 
response to a petition by any person, or at the dis-
cretion of the Secretary, the Secretary may endorse 
or recognize procedures, protocols, and standards 
that the Secretary determines meet all or part of the 
requirements of this section. 
‘‘(2) USE OF PROCEDURES, PROTOCOLS, AND 
STANDARDS.— 
‘‘(A) USE
BY
INDIVIDUAL
FACILITIES.— 
Upon review and written determination by the 
Secretary under paragraph (1) that the proce-
dures, protocols, or standards of a chemical fa-
cility subject to the requirements of this section 
satisfy some or all of the requirements of this 
section, the chemical facility may elect to com-
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ply with those procedures, protocols, or stand-
ards. 
‘‘(B) USE BY CLASSES OF FACILITIES.—At 
the discretion of the Secretary, the Secretary 
may identify a class or category of chemical fa-
cilities subject to the requirements of this sec-
tion that may use the procedures, protocols, or 
standards recognized under this section in order 
to comply with all or part of the requirements 
of this section. 
‘‘(3) PARTIAL
APPROVAL.—If the Secretary 
finds that a procedure, protocol, or standard satis-
fies only part of the requirements of this section, the 
Secretary may allow a chemical facility subject to 
the requirements of this section to comply with that 
procedure, protocol, or standard for purposes of that 
requirement, but shall require the facility to submit 
of any additional information required to satisfy the 
requirements of this section not met by that proce-
dure, protocol, or standard. 
‘‘(4) NOTIFICATION.—If the Secretary does not 
endorse or recognize a procedure, protocol, or stand-
ard for which a petition is submitted under para-
graph (1), the Secretary shall provide to the person 
submitting a petition under paragraph (1) written 
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notification that includes an explanation of the rea-
sons why the endorsement or recognition was not 
made. 
‘‘(5) REVIEW.—Nothing in this subsection shall 
relieve the Secretary (or a designee of the Secretary 
which may be a third party auditor certified by the 
Secretary) of the obligation— 
‘‘(A) to review a vulnerability assessment 
and facility security plan submitted by a high- 
risk chemical facility under this section; and 
‘‘(B) to approve or disapprove each assess-
ment or plan on an individual basis. 
‘‘(f) OTHER AUTHORITIES.— 
‘‘(1) EXISTING AUTHORITIES.—A chemical fa-
cility on the list maintained by the Secretary under 
section 1802(a)(1) that is required to prepare a vul-
nerability assessment and facility security plan 
under the provisions of chapter 701 of title 46, 
United States Code, or section 1433 of the Safe 
Drinking Water Act (42 U.S.C. 300i-2) shall not be 
subject to the requirements of this section, unless 
the Secretary, after reviewing the vulnerability as-
sessment or facility security plan prepared by the 
chemical facility, finds, in consultation with the ap-
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propriate authorities, that the chemical facility re-
quires more stringent security measures. 
‘‘(2) COORDINATION.—In the case of any facil-
ity required to be licensed under chapter 40 of title 
18, United States Code, the Secretary shall pre-
scribe the rules and regulations for the implementa-
tion of this section with the concurrence of the At-
torney General and avoid unnecessary duplication of 
regulatory requirements. 
‘‘(g) PERIODIC REVIEW BY CHEMICAL FACILITY RE-
QUIRED.— 
‘‘(1) SUBMISSION OF REVIEW.—Not later than 
3 years after the date on which a vulnerability as-
sessment or facility security plan required under this 
section is submitted, and at least once every 5 years 
thereafter (or on such a schedule as the Secretary 
may establish by regulation), the owner or operator 
of the chemical facility covered by the vulnerability 
assessment or facility security plan shall submit to 
the Secretary a review of the adequacy of the vulner-
ability assessment or facility security plan that in-
cludes a description of any changes made to the vul-
nerability assessment or facility security plan. 
‘‘(2) REVIEW
OF
REVIEW.—The Secretary 
shall— 
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‘‘(A) ensure that a review required under 
paragraph (1) is submitted not later than the 
applicable date; and 
‘‘(B) not later than 6 months after the 
date on which a review is submitted under 
paragraph (1), review the review and notify the 
facility submitting the review of the Secretary’s 
approval or disapproval of the review. 
‘‘SEC. 1804. RECORD KEEPING; SITE INSPECTIONS. 
‘‘(a) RECORD KEEPING.—The Secretary shall require 
each chemical facility required to submit a vulnerability 
assessment or facility security plan under section 1803 to 
maintain a current copy of the assessment and the plan 
at the facility. 
‘‘(b) RIGHT OF ENTRY.—For purposes of carrying 
out this title, the Secretary (or a designee of the Sec-
retary) shall have, on presentation of credentials, a right 
of entry to, on, or through any property of a chemical fa-
cility on the list maintained by the Secretary under section 
1802(a)(1) or any property on which any record required 
to be maintained under this section is located. 
‘‘(c) INSPECTIONS AND VERIFICATIONS.—The Sec-
retary shall, at such time and place as the Secretary deter-
mines to be appropriate, conduct or require the conduct 
of facility security inspections and verifications and may, 
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by regulation, authorize third party inspections and 
verifications by persons trained and certified by the Sec-
retary for that purpose. Such an inspection or verification 
shall ensure and evaluate compliance with— 
‘‘(1) this title and any regulations prescribed to 
carry out this title; and 
‘‘(2) any security standards or requirements 
adopted by the Secretary in furtherance of the pur-
poses of this title. 
‘‘(d) REQUESTS FOR RECORDS.—In carrying out this 
title, the Secretary (or a designee of the Secretary) may 
require the submission of or, on presentation of creden-
tials, may at reasonable times obtain access to and copy 
any documentation necessary for— 
‘‘(1) reviewing or analyzing a vulnerability as-
sessment or facility security plan submitted under 
section 1803; or 
‘‘(2) implementing such a facility security plan. 
‘‘(e) COMPLIANCE.—If the Secretary determines that 
an owner or operator of a chemical facility required to sub-
mit a vulnerability assessment or facility security plan 
under section 1803 fails to maintain, produce, or allow 
access to records or to the property of the chemical facility 
as required by this section, the Secretary shall issue an 
order requiring compliance with this section. 
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‘‘SEC. 1805. ENFORCEMENT. 
‘‘(a) SUBMISSION OF INFORMATION.— 
‘‘(1) INITIAL SUBMISSION.—The Secretary shall 
specify in regulations prescribed under section 
1803(a), specific deadlines for the submission of the 
vulnerability assessments and facility security plans 
required under this title to the Secretary. The Sec-
retary may establish different submission require-
ments for the different tiers of chemical facilities 
under section 1802(c). 
‘‘(2) MAJOR
CHANGES
REQUIREMENT.—The 
Secretary shall specify in regulations prescribed 
under section 1803(a), specific deadlines and re-
quirements for the submission by a facility required 
to submit a vulnerability assessment or facility secu-
rity plan under that section of information describ-
ing— 
‘‘(A) any change in the use by the facility 
of more than a threshold amount of any sub-
stance of concern; and 
‘‘(B) any significant change in a vulner-
ability assessment or facility security plan sub-
mitted by the facility. 
‘‘(3) FAILURE TO COMPLY.—If an owner or op-
erator of a chemical facility fails to submit a vulner-
ability assessment or facility security plan in accord-
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ance with this title, the Secretary shall issue an 
order requiring the submission of a vulnerability as-
sessment or facility security plan in accordance with 
section 1804(e). 
‘‘(b) REVIEW OF SECURITY PLAN.— 
‘‘(1) IN GENERAL.— 
‘‘(A) DEADLINE FOR REVIEW.—Not later 
than 180 days after the date on which the Sec-
retary receives a vulnerability assessment or fa-
cility security plan under this title, the Sec-
retary shall review and approve or disapprove 
such assessment or plan. 
‘‘(B) DESIGNEE.—The Secretary may des-
ignate a person (including a third party entity 
certified by the Secretary) to conduct a review 
under this subsection. 
‘‘(2) DISAPPROVAL.—The Secretary shall dis-
approve a vulnerability assessment or facility secu-
rity plan if the Secretary determines that— 
‘‘(A) the vulnerability assessment or facil-
ity security plan does not comply with regula-
tions prescribed under section 1803; or 
‘‘(B) in the case of a facility security plan, 
the plan or the implementation of the plan is 
insufficient to address— 
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‘‘(i) any vulnerabilities identified in a 
vulnerability assessment of the chemical fa-
cility or associated oversight actions taken 
under section 1803; or 
‘‘(ii) the threat of a chemical facility 
terrorist incident at the chemical facility. 
‘‘(3) SPECIFIC SECURITY MEASURES NOT RE-
QUIRED.—The Secretary shall not disapprove a facil-
ity security plan under this section based solely on 
the specific chemical facility security measures that 
the chemical facility selects to meet the security per-
formance requirements established by the Secretary 
under section 1803(c). 
‘‘(4) PROVISION
OF
NOTIFICATION
OF
DIS-
APPROVAL.—If the Secretary disapproves the vulner-
ability assessment or facility security plan submitted 
by a chemical facility under this title or the imple-
mentation of a facility security plan by such a facil-
ity, the Secretary shall— 
‘‘(A) provide the owner or operator of the 
facility a written notification of the disapproval 
that includes a clear explanation of deficiencies 
in the assessment, plan, or implementation of 
the plan; 
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‘‘(B) provide guidance to assist the facility 
in addressing such deficiency; 
‘‘(C) in the case of a facility for which the 
owner or operator of the facility does not ad-
dress such deficiencies by such date as the Sec-
retary determines to be appropriate, issue an 
order requiring the owner or operator to correct 
specified deficiencies by a specified date; and 
‘‘(D) in the case of a facility assigned to 
the high-risk tier under section 1802(c)(4), con-
sult with the owner or operator the facility to 
identify appropriate steps to be taken by the 
owner or operator to address the deficiencies 
identified by the Secretary. 
‘‘(5) REVISION OF DISAPPROVED ASSESSMENT 
OR PLAN.—If the Secretary disapproves a vulner-
ability assessment or facility security plan submitted 
under this title, the Secretary shall require the 
owner or operator of the chemical facility that sub-
mitted the assessment or plan to revise the assess-
ment or plan to address any deficiencies identified 
by the Secretary and to submit to the Secretary the 
revised assessment or plan. 
‘‘(6) NO PRIVATE RIGHT OF ACTION.—Nothing 
in this title confers upon any private person a right 
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of action against an owner or operator of a chemical 
facility to enforce any provision of this title. 
‘‘(c) REPORTING PROCESS.— 
‘‘(1) ESTABLISHMENT.—The Secretary shall es-
tablish, and provide information to the public re-
garding, a process by which any person may submit 
a report to the Secretary regarding problems, defi-
ciencies, or vulnerabilities at a chemical facility. 
‘‘(2) CONFIDENTIALITY.—The Secretary shall 
keep confidential the identity of a person that sub-
mits a report under paragraph (1) and any such re-
port shall be treated as protected information under 
section 1808(f) to the extent that it does not consist 
of publicly available information. 
‘‘(3) ACKNOWLEDGMENT OF RECEIPT.—If a re-
port submitted under paragraph (1) identifies the 
person submitting the report, the Secretary shall re-
spond promptly to such person to acknowledge re-
ceipt of the report. 
‘‘(4) STEPS TO ADDRESS PROBLEMS.—The Sec-
retary shall review and consider the information pro-
vided in any report submitted under paragraph (1) 
and shall take appropriate steps under this title to 
address any problem, deficiency, or vulnerability 
identified in the report. 
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‘‘(5) RETALIATION PROHIBITED.— 
‘‘(A) PROHIBITION.—No employer may 
discharge any employee or otherwise discrimi-
nate against any employee with respect to the 
compensation of, or terms, conditions, or privi-
leges of the employment of, such employee be-
cause the employee (or a person acting pursu-
ant to a request of the employee) submitted a 
report under paragraph (1). 
‘‘(B) ENFORCEMENT PROCESS.—The Sec-
retary shall establish— 
‘‘(i) a process by which an employee 
can notify the Secretary of any retaliation 
prohibited under this paragraph; and 
‘‘(ii) a process by which the Secretary 
may take action as appropriate to enforce 
this section. 
‘‘SEC. 1806. PENALTIES. 
‘‘(a) ADMINISTRATIVE PENALTIES.— 
‘‘(1) IN GENERAL.—The Secretary may issue 
an administrative penalty of not more than 
$250,000 for failure to comply with an order issued 
by the Secretary under this title. 
‘‘(2) PROVISION OF NOTICE.—Before issuing a 
penalty under paragraph (1), the Secretary shall 
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provide to the person against which the penalty is to 
be assessed— 
‘‘(A) written notice of the proposed pen-
alty; and 
‘‘(B) the opportunity to request, not later 
than 30 days after the date on which the notice 
is received, a hearing on the proposed penalty. 
‘‘(3) PROCEDURES
FOR
REVIEW.—The Sec-
retary may prescribe regulations outlining the proce-
dures for administrative hearings and appropriate 
review, including necessary deadlines. 
‘‘(b) CIVIL PENALTIES.— 
‘‘(1) IN GENERAL.—The Secretary may bring 
an action in a United States district court against 
any owner or operator of a chemical facility that vio-
lates or fails to comply with— 
‘‘(A) any order or directive issued by the 
Secretary under this title; or 
‘‘(B) any facility security plan approved by 
the Secretary under this title. 
‘‘(2) RELIEF.—In any action under paragraph 
(1), a court may issue an order for injunctive relief 
and may award a civil penalty of not more than 
$50,000 for each day on which a violation occurs or 
a failure to comply continues. 
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‘‘(c) CRIMINAL PENALTIES.—An owner or operator 
of a chemical facility who knowingly and intentionally vio-
lates any order issued by the Secretary under this title 
shall be fined not more than $100,000, imprisoned for not 
more than 1 year, or both. 
‘‘(d) TREATMENT OF INFORMATION IN ADJUDICA-
TIVE PROCEEDINGS.—In a proceeding under this section, 
vulnerability assessments, facility security plans, and 
other information submitted to or obtained by the Sec-
retary under this title, or related vulnerability or security 
information, shall be treated in any judicial or administra-
tive action as if the information were classified material. 
‘‘SEC. 1807. FEDERAL PREEMPTION. 
‘‘(a) IN GENERAL.—A State or local government may 
not prescribe, issue, or continue in effect a law, regulation, 
standard or order that may frustrate the purposes of this 
title or any regulations or standards prescribed under this 
title. 
‘‘(b) APPLICATION FOR REVIEW.—A person, State, 
or local government directly affected by a requirement of 
a State or local government may submit to the Secretary, 
as provided in regulations that the Secretary shall pre-
scribe, an application asking the Secretary to decide 
whether the requirement is preempted by this title. 
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‘‘SEC. 1808. PROTECTION OF INFORMATION. 
‘‘(a) PROHIBITION OF PUBLIC DISCLOSURE OF PRO-
TECTED INFORMATION.— 
‘‘(1) IN GENERAL.—The Secretary shall ensure 
that protected information, as described in sub-
section (f), is not disclosed except as provided in this 
title. 
‘‘(2) SPECIFIC PROHIBITIONS.—In carrying out 
paragraph (1), the Secretary shall ensure that pro-
tected information is not disclosed— 
‘‘(A) by any Federal agency under section 
552 of title 5, United States Code; or 
‘‘(B) under any State or local law. 
‘‘(b) REGULATIONS.— 
‘‘(1) IN GENERAL.—Not later than 1 year after 
the date of enactment of the Chemical Facility Anti- 
Terrorism Act of 2006, the Secretary shall prescribe 
such regulations, or issue such orders, as necessary 
to prohibit the unauthorized disclosure of protected 
information, as described in subsection (f). 
‘‘(2) REQUIREMENTS.—The regulations pre-
scribed under paragraph (1) shall— 
‘‘(A) permit information sharing, on a con-
fidential basis, with Federal, State and local 
law enforcement officials and first responders 
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and chemical facility personnel, as necessary to 
further the purposes of this title; 
‘‘(B) provide for the confidential use of 
protected information in any administrative or 
judicial proceeding, including placing under seal 
any such information that is contained in any 
filing, order, or other document used in such 
proceedings that could otherwise become part of 
the public record; and 
‘‘(C) limit access to protected information 
to persons designated by the Secretary. 
‘‘(c) OTHER OBLIGATIONS UNAFFECTED.—Nothing 
in this section affects any obligation of the owner or oper-
ator of a chemical facility to submit or make available in-
formation to a Federal, State, or local government agency 
under, or otherwise to comply with, any other law. 
‘‘(d) SUBMISSION OF INFORMATION TO CONGRESS.— 
Nothing in this title shall be construed as authorizing the 
withholding of any information from Congress. 
‘‘(e) DISCLOSURE OF INDEPENDENTLY FURNISHED 
INFORMATION.—Nothing in this title shall be construed 
as affecting any authority or obligation of a Federal agen-
cy to disclose any record or information that the Federal 
agency obtains from a chemical facility under any other 
law. 
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‘‘(f) PROTECTED INFORMATION.—For purposes of 
this section, protected information includes the following: 
‘‘(1) The criteria and data used by the Sec-
retary to assign chemical facilities to risk-based tiers 
under section 1802 and the tier to which each such 
facility is assigned. 
‘‘(2) The vulnerability assessments and facility 
security plans submitted to the Secretary under this 
title. 
‘‘(3) Information concerning the security per-
formance requirements for a chemical facility under 
section 1803(c). 
‘‘(4) Any other information generated or col-
lected by a Federal, State, or local government agen-
cy or by a chemical facility for the purpose of car-
rying out or complying with this title that— 
‘‘(A) describes any vulnerability of a chem-
ical facility to an act of terrorism; 
‘‘(B) describes the assignment of any 
chemical facility to a risk-based tier under this 
title; 
‘‘(C) describes any security measure (in-
cluding any procedure, equipment, training, or 
exercise) for the protection of a chemical facility 
from an act of terrorism; or 
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‘‘(D) the disclosure of which the Secretary 
determines would be detrimental to the security 
of any chemical facility. 
‘‘SEC. 1809. CERTIFICATION OF THIRD-PARTY ENTITIES. 
‘‘(a) CERTIFICATION OF THIRD-PARTY AUDITORS.— 
The Secretary may designate a third-party entity to carry 
out any function under subsection (e)(5) of section 1803, 
subsection (b) or (c) of section 1804, or subsection (b)(1) 
of section 1805. 
‘‘(b) PROCEDURES AND REQUIREMENTS FOR PRI-
VATE ENTITIES.—Before designating a third-party entity 
to carry out a function under subsection (a), the Secretary 
shall— 
‘‘(1) develop, document, and update, as nec-
essary, minimum standard operating procedures and 
requirements applicable to such entities designated 
under subsection (a), including— 
‘‘(A) conducting a 90-day independent re-
view of the procedures and requirements (or up-
dates thereto) and the results of the analyses of 
such procedures (or updates thereto) pursuant 
to subtitle G; and 
‘‘(B) upon completion of the independent 
review under subparagraph (A), designating 
any procedure or requirement (or any update 
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thereto) as a qualified anti-terrorism technology 
pursuant to section 862(b); and 
‘‘(2) conduct safety and hazard analyses of the 
standard operating procedures and requirements de-
veloped under paragraph (1). 
‘‘(c) TECHNICAL REVIEW AND APPROVAL.—Not later 
than 60 days after the date on which the results of the 
safety and hazard analysis of the standard operating pro-
cedures and requirements are completed under paragraph 
(1)(B), the Secretary shall 
‘‘(1) complete a technical review of the proce-
dures and requirements (or updates thereto) under 
sections 862(b) and 863(d)(2); and 
‘‘(2) approve or disapprove such procedures and 
requirements (or updates thereto). 
‘‘(d) EFFECT OF APPROVAL.— 
‘‘(1) ISSUANCE OF CERTIFICATE OF CONFORM-
ANCE.—In accordance with section 863(d)(3), the 
Secretary shall issue a certificate of conformance to 
a third-party entity to perform a function under sub-
section (a) if the entity— 
‘‘(A) demonstrates to the satisfaction of 
the Secretary the ability to perform validations 
in accordance with standard operating proce-
dures and requirements (or updates thereto) 
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approved by the Secretary under subsection 
(c)(2); and 
‘‘(B) agrees to— 
‘‘(i) perform such function in accord-
ance with such standard operating proce-
dures and requirements (or updates there-
to); and 
‘‘(ii) maintain liability insurance cov-
erage at policy limits and in accordance 
with conditions to be established by the 
Secretary pursuant to section 864; and 
‘‘(C) signs an agreement to protect the 
proprietary and confidential information of any 
chemical facility with respect to which the enti-
ty will perform such function. 
‘‘(2) LITIGATION AND RISK MANAGEMENT PRO-
TECTIONS.—A third-party entity that maintains li-
ability insurance coverage at policy limits and in ac-
cordance with conditions to be established by the 
Secretary pursuant to section 864 and receives a 
certificate of conformance under paragraph (1) shall 
receive all applicable litigation and risk management 
protections under sections 863 and 864. 
‘‘(3) RECIPROCAL WAIVER OF CLAIMS.—A re-
ciprocal waiver of claims shall be deemed to have 
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been entered into between a third-party entity that 
receives a certificate of conformance under para-
graph (1) and its contractors, subcontractors, sup-
pliers, vendors, customers, and contractors and sub-
contractors of customers involved in the use or oper-
ation of any function performed by the third-party 
entity under subparagraph (a). 
‘‘(4) INFORMATION FOR ESTABLISHING LIMITS 
OF
LIABILITY
INSURANCE.—A third-party entity 
seeking a certificate of conformance under para-
graph (1) shall provide to the Secretary necessary 
information for establishing the limits of liability in-
surance required to be maintained by the entity 
under section 864(a). 
‘‘(e) MONITORING.—The Secretary shall regularly 
monitor and inspect the operations of a third-party entity 
that performs a function under subparagraph (a) to en-
sure that the entity is meeting the minimum standard op-
erating procedures and requirements established under 
subsection (b) and any other applicable requirement under 
this section. 
‘‘SEC. 1810. ANNUAL REPORT TO CONGRESS. 
‘‘(a) ANNUAL REPORT.—Not later than one year 
after the date of enactment of the Chemical Facility Anti- 
Terrorism Act of 2006 and annually thereafter, the Sec-
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