Even before September 11, 2001, congressional policymakers expressed concern about the safety and security of facilities possessing certain amounts of hazardous chemicals. The sudden release of hazardous chemicals from facilities storing large quantities might potentially harm many people living or working near the facility. Historically, chemical facilities engaged in security activities on a voluntary basis. Following September 11, 2001, some states enacted laws requiring additional consideration of security at chemical facilities. Congress debated whether the federal government should reduce the risk such facilities pose by regulating them for security purposes. In 2006, the 109 th Congress passed legislation providing the Department of Homeland Security (DHS) with statutory authority to regulate chemical facilities for security purposes. Subsequent Congresses have extended this authority. This statutory authority expires on March 27, 2013. The Obama Administration has requested extension of this authority until October 4, 2013. Both FY2013 homeland security appropriations bills ( S. 3216 and H.R. 5855 ) would extend the existing authority until October 4, 2013. Advocacy groups, stakeholders, and policymakers have called for congressional reauthorization of this authority, though they disagree about the preferred approach. Congress may extend the existing authority, revise the existing authority to resolve potentially contentious issues, or allow this authority to lapse. This report provides a brief overview of the existing statutory authority and implementing regulation. It describes several policy issues raised in previous debates regarding chemical facility security and identifies policy options for congressional consideration. Finally, it discusses legislation in the 112 th Congress. The 109 th Congress provided DHS with statutory authority to regulate chemical facilities for security purposes. The statute explicitly identified some DHS authorities and left other aspects to the discretion of the Secretary of Homeland Security. The statute contains a "sunset provision" and expires on March 27, 2013. The Obama Administration has requested extension of this authority until October 4, 2013. On April 9, 2007, the Department of Homeland Security issued an interim final rule regarding the chemical facility anti-terrorism standards (CFATS). This interim final rule entered into force on June 8, 2007. The interim final rule implements both statutory authority explicit in P.L. 109-295 , Section 550, and authorities DHS found Congress implicitly granted. In promulgating the interim final rule, DHS interpreted the language of the statute to determine what DHS asserts was the intent of Congress. Consequently, much of the rule arises from the Secretary's discretion and interpretation of legislative intent rather than explicit statutory language. Under the interim final rule, the Secretary of Homeland Security determines which chemical facilities must meet regulatory security requirements, based on the degree of risk posed by each facility. The DHS lists 322 chemicals as "chemicals of interest" for the purposes of compliance with CFATS. The DHS considers each chemical in the context of three threats: release; theft or diversion; and sabotage and contamination. Chemical facilities with greater than specified quantities of potentially dangerous chemicals must submit information to DHS, so that DHS can determine the facility's risk status. The statute exempts several types of facilities from this requirement: facilities defined as a water system or wastewater treatment works; facilities owned or operated by the Department of Defense or Department of Energy; facilities regulated by the Nuclear Regulatory Commission; and those facilities regulated under the Maritime Transportation Security Act of 2002 ( P.L. 107-295 ). Based on the submitted information, DHS determines the risk associated with each facility. Facilities DHS deems high risk must meet CFATS requirements. The DHS assigns high-risk facilities into one of four risk-based tiers. Facilities in higher risk tiers must meet more stringent performance-based requirements. The statute mandated the use of performance-based security requirements. The DHS created graduated performance-based requirements for facilities assigned to each risk-based tier. All high-risk facilities must assess their vulnerabilities, develop an effective security plan, submit these documents to DHS, and implement their security plan. The vulnerability assessment serves two purposes under the interim final rule. One is to determine or confirm the placement of the facility in a risk-based tier. The other is to provide a baseline against which to evaluate the site security plan activities. The site security plans must address the vulnerability assessment by describing how activities in the plan correspond to securing facility vulnerabilities. Additionally, the site security plan must address preparations for and deterrents against specific modes of potential terrorist attack, as applicable and identified by DHS. The site security plans must also describe how the activities taken by the facility meet the risk-based performance standards provided by DHS. The DHS must review and approve the submitted documents, audit and inspect chemical facilities, and determine regulatory compliance. The DHS may disapprove submitted vulnerability assessments or site security plans that fail to meet DHS performance-based standards, but not because of the presence or absence of a specific security measure. In the case of disapproval, DHS must identify in writing those areas of the assessment and/or plan that need improvement. Owners or operators of chemical facilities may appeal such decisions to DHS. Similarly, if, after inspecting a chemical facility, DHS finds the facility not in compliance, the Secretary must write to the facility explaining the deficiencies found, provide an opportunity for the facility to consult with DHS, and issue an order to the facility to comply by a specified date. If the facility continues to be out of compliance, DHS may fine and, eventually, order the facility to cease operation. The interim final rule establishes the process by which chemical facilities can appeal DHS decisions and rulings, but the statute prohibits third-party suits for enforcement purposes. The statute requires certain protections for information developed in compliance with this act. The interim final rule creates a category of information exempted from disclosure under the Freedom of Information Act (FOIA) and comparable state and local laws. The DHS named this category of information "Chemical-terrorism Vulnerability Information" (CVI). Information generated under the interim final rule, as well as any information developed for chemical facility security purposes identified by the Secretary, comprise this category. Judicial and administrative proceedings shall treat CVI as classified information. The DHS asserts sole discretion regarding who will be eligible to receive CVI. Disclosure of CVI may be punishable by fine. The interim final rule states it preempts state and local regulation that "conflicts with, hinders, poses an obstacle to, or frustrates the purposes of" the federal regulation. States, localities, or affected companies may request a decision from DHS regarding potential conflict between the regulations. Since DHS promulgated the interim final rule, Congress amended P.L. 109-295 , Section 550, to state that such preemption will occur only in the case of an "actual conflict." The DHS has not issued revised regulations addressing this change in statute. Within DHS, the National Protection and Programs Directorate (NPPD) is responsible for chemical facility security regulations. Within NPPD, the Office of Infrastructure Protection, through its Infrastructure Security Compliance Division (ISCD), oversees the CFATS program. This section reviews implementation of the chemical facility security regulations, focusing on funding, the number of regulated facilities, rate of facility inspection, and DHS's internal review of its implementation efforts. As seen in Table 1 , requested and appropriated funding for this program generally increased since its creation, but decreased since FY2011. Full-time equivalent staffing for this program has also increased over time. This increase in staffing reflects, in part, the development of a cadre of CFATS inspectors, based in regional offices. The DHS received statutory authority to regulate chemical facilities in 2006. It did not possess a chemical facility security office or inspector cadre at that time. The DHS requested additional positions to create an inspector cadre. As of February 2012, DHS had hired 102 of a planned 108 inspectors and all of 14 field leadership positions. Chemical inspectors must be able to assess the security measures at a chemical facility using the performance-based criteria developed by DHS. Performance-based security measures are likely more difficult than prescriptive measures for chemical inspectors to assess and thus may require greater training and experience in the inspector cadre. To overcome this challenge, DHS has established a Basic Inspector School training program. Such training, while likely improving the quality of inspection, also introduces additional time between the hiring of new inspectors and their deployment in the field. For FY2013, the House of Representatives and the Senate Committee on Appropriations have recommended different funding levels. The House would appropriate $45 million, a decrease of $30 million from the FY2013 request and $48 million from the FY2012 appropriation. In addition, the House report states, "in spite of ample appropriations provided by Congress, the Department has made little progress carrying out its regulatory responsibilities for … the Chemical Facility Anti-Terrorism Standards (CFATS) program…." The Senate committee, in contrast, recommends $86 million, an increase of $11 million from the FY2013 request and a decrease of $7 million from the FY2012 appropriation. The Senate committee states, "it would be shortsighted, in the meantime, to take the full amount of [Administration's] proposed savings when the need for improvement has been documented. Funding will not resolve all of the outstanding issues, but the proposed cuts are too deep to ensure change for the better can be completed." The Senate report also would direct DHS to retain an inspector cadre of no fewer than 148 FTE for FY2013. The DHS has responded to the House-passed funding level, stating that this level of appropriations would drastically curtail DHS's ability to: 1) implement the statutory and regulatory requirements for the security of high-risk chemical facilities as specified in CFATS; 2) continue development of the proposed Ammonium Nitrate Security Program; and 3) fully implement the program improvements identified in the ISCD Action Plan. DHS estimates that, after expending approximately $35 million for salaries and benefits for 242 FTEs, approximately $12 million would remain for implementing CFATS and completing development of the proposed Ammonium Nitrate Security Program.