I
109th CONGRESS
2d Session
H. R. 5695
IN THE HOUSE OF REPRESENTATIVES
June 28, 2006
Mr. Daniel E. Lungren of California (for himself, Mr. Thompson of Mississippi, Mr. Shays, Ms. Loretta Sanchez of California, Mr. Linder, Ms. Harman, Mr. McCaul of Texas, Ms. Jackson-Lee of Texas, Mr. Simmons, Mrs. Christensen, and Mr. Fossella) introduced the following bill; which was referred to the Committee on Homeland Security, and in addition to the Committee on Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned
A BILL
To amend the Homeland Security Act of 2002 to provide for the regulation of certain chemical facilities, and for other purposes.
Short title
This Act may be cited as the
Chemical Facility Anti-Terrorism Act
of 2006
.
Regulation of chemical facilities
In general
The Homeland Security Act of 2002 (6 U.S.C. 101 et seq.) is amended by adding at the end the following new title:
Regulation of Chemical Facilities
Definitions
In this title, the following definitions apply:
The term
environment
has the meaning given the term in section 101 of the
Comprehensive Environmental Response Compensation and Liability Act of 1980 (42
U.S.C. 9601).
The term
owner or operator of a chemical facility
means any person who
owns, leases, or operates a chemical facility.
The term
release
has the meaning given the term in section 101 of the
Comprehensive Environmental Response Compensation and Liability Act of 1980 (42
U.S.C. 9601).
The term
chemical facility security measure
means any action taken to
ensure or enhance the security of a chemical facility against a chemical
facility terrorist incident, including—
employee background checks;
employee training;
personnel security measures;
the limitation and prevention of access to controls of the chemical facility;
protection of the perimeter of the chemical facility or the portion or sector within the facility in which a substance of concern is stored, used or handled, utilizing fences, barriers, guards, or other means;
installation and operation of cameras or other intrusion detection sensors;
the implementation of measures to increase computer or computer network security;
contingency and evacuation plans;
the relocation or hardening of storage or containment equipment; and
other security measures to prevent, protect against, or reduce the consequences of a chemical facility terrorist incident, as determined by the Secretary.
The term
substance of concern
means a chemical substance in quantity and
form that—
is listed under paragraph (3) of section 112(r) of the Clean Air Act (42 U.S.C. 7412(r)) and has not been exempted from designation as a substance of concern by the Secretary under section 4(a); or
is designated by the Secretary by regulation in accordance with section 1802(a).
The term
chemical facility terrorist incident
means—
an act of terrorism committed against a chemical facility;
the release of a substance of concern from a chemical facility into the surrounding area as a consequence of an act of terrorism; or
the obtaining of a substance of concern by any person for the purposes of releasing the substance off-site in furtherance of an act of terrorism.
Designation and ranking of chemical facilities
Substances of concern
Designation by the Secretary
The Secretary may—
designate any chemical substance as a substance of concern;
exempt any chemical substance from being designated as a substance of concern;
establish and revise, for purposes of making determinations under subsection (b), the threshold quantity for a chemical substance; or
require the submission of information with respect to the quantities of substances of concern that are used, stored, manufactured, processed, or distributed by any chemical facility.
Matters for consideration
In general
In designating or exempting a chemical substance or establishing or adjusting the threshold quantity for a chemical substance under paragraph (1), the Secretary shall consider the potential extent of death, injury, or serious adverse effects to human health, the environment, critical infrastructure, national security, the national economy, or public welfare that would result from a terrorist release of the chemical substance.
Adoption of certain threshold quantities
The Secretary may adopt the threshold quantity established under paragraph (5) of subsection (r) of section 112 of the Clean Air Act (42 U.S.C. 7412(r)(5)) for any substance of concern that is also listed under paragraph (3) of that subsection.
List of significant chemical facilities
In general
The Secretary shall maintain a list of significant chemical facilities in accordance with this subsection.
Required facilities
The Secretary shall include on the list maintained under paragraph (1) a chemical facility that has more than the threshold quantity established by the Secretary of any substance of concern.
Authority to designate chemical facilities
The Secretary may designate a chemical facility not required to be included under paragraph (2) as a significant chemical facility and shall include such a facility on the list maintained under paragraph (1). In designating a chemical facility under this paragraph, the Secretary shall use the following criteria:
The potential threat or likelihood that the chemical facility will be the target of terrorism.
The potential extent of death, serious injury or adverse effects to the health and safety of the surrounding population that could result from a chemical facility terrorist incident.
The nature and quantity of the substances of concern present at the chemical facility.
The potential threat caused by a person obtaining a substance of concern in furtherance of an act of terrorism.
The potential harm to critical infrastructure, national security, and the national economy from a chemical facility terrorist incident.
Assignment of chemical facilities to risk-based tiers
Assignment
The Secretary shall assign each chemical facility on the list of significant chemical facilities under subsection (b) to one of at least four risk-based tiers established by the Secretary.
Provision of information
The Secretary may request, and a chemical facility shall provide, any information the Secretary determines is necessary for the Secretary to assign the chemical facility to the appropriate tier under paragraph (1).
Notification
Not later than 60 days after assigning a chemical facility to a tier under this subsection, the Secretary shall notify the chemical facility of the tier to which the facility is assigned and shall provide the facility with the reasons for assignment of the facility to such tier.
High-risk chemical facilities
At least one of the tiers established by the Secretary for the assignment of chemical facilities under this subsection shall be a tier designated for high-risk chemical facilities.
Periodic review of list of chemical facilities
Requirement
Not later than 3 years after the date on which the Secretary develops the list of significant chemical facilities under subsection (b)(1) and every 3 years thereafter, the Secretary shall—
consider the criteria under subsection (b)(3); and
determine whether to add a chemical facility to the list of significant chemical facilities maintained under subsection (b)(1) or to remove or change the tier assignment of any chemical facility on such list.
Authority to review
The Secretary may, at any time, after considering the criteria under subsection (b)(3), add a chemical facility to the list of significant chemical facilities maintained under subsection (b)(1) or remove or change the tier assignment of any chemical facility on such list.
Notification
Not later than 30 days after the date on which the Secretary adds a facility to the list of significant chemical facilities maintained by the Secretary under subsection (b)(1), removes a facility from such list, or changes the tier assignment of any facility on such list, the Secretary shall notify the owner of that facility of that addition, removal, or change.
Vulnerability assessments and facility security plans
Vulnerability assessment and facility security plan required for chemical facilities
Requirement for vulnerability assessment and security plan
Regulations required
The Secretary shall prescribe regulations to—
establish standards, protocols, and procedures for vulnerability assessments and facility security plans to be required for chemical facilities on the list maintained by the Secretary under section 1802(b)(1); and
require the owner or operator of each such facility assigned to the high-risk tier under section 1802(c)(4), to—
conduct an assessment of the vulnerability of the chemical facility to a chemical facility terrorist incident in accordance with section 1803(b)(1); and
prepare and implement a facility security plan that addresses the results of the vulnerability assessment in accordance with section 1803(b)(2); and
set deadlines for the completion of vulnerability assessments and facility security plans.
Deadline for high-risk chemical facilities
The owner or operator of a facility assigned to the high-risk tier under section 1802(c)(4) shall submit to the Secretary a vulnerability assessment and facility security plan not later than 6 months after the date on which the Secretary prescribes regulations under this subsection.
Criteria for regulations
The regulations required under paragraph (1) shall—
be risk-based;
be performance-based; and
take into consideration—
the cost and technical feasibility of the compliance by a chemical facility with the requirements under this title;
the different quantities and forms of substances of concern stored, used, and handled at chemical facilities; and
the matters for consideration under section 1802(a)(2).
Provision of assistance and guidance
The Secretary shall provide assistance and guidance to a chemical facility conducting a vulnerability assessment or facility security plan required under this section.
Additional requirements for high-risk chemical facilities
Requirements for vulnerability assessments
In the case of a facility assigned to the high-risk tier under section 1802(c)(4), the Secretary shall require that the vulnerability assessment required under this section include each of the following:
The identification of any hazard that could result from a chemical facility terrorist incident at the facility.
The number of individuals at risk of death, injury, or severe adverse effects to human health as a result of a chemical facility terrorist incident at the facility.
Information related to the criticality of the facility for purposes of assessing the degree to which the facility is critical to the economy or national security of the United States.
The proximity or interrelationship of the facility to other critical infrastructure.
Any vulnerability of the facility with respect to—
physical security;
programmable electronic devices, computers, computer or communications networks, or other automated systems used by the facility;
alarms, cameras, and other protection systems;
communication systems;
any utility or infrastructure (including transportation) upon which the facility relies to operate safely and securely; or
the structural integrity of equipment for storage, handling, and other purposes.
Any information relating to threats relevant to the facility that is provided by the Secretary in accordance with paragraph (3).
Such other information as the Secretary determines is appropriate.
Requirements for facility security plans
In the case of a facility assigned to the high-risk tier under section 1802(c)(4), the Secretary shall require that the facility security plan required under this section include each of the following:
Chemical facility security measures to address the vulnerabilities of the facility to a chemical facility terrorist incident.
A plan for periodic drills and exercises to be conducted at the facility that include participation by local law enforcement agencies and first responders, as appropriate.
Equipment, plans, and procedures to be implemented or used by or at the chemical facility in the event of a chemical facility terrorist incident that affects the facility, including site evacuation, release mitigation, and containment plans.
An identification of any steps taken to coordinate with State and local law enforcement agencies, first responders, and Federal officials on security measures and plans for response to a chemical facility terrorist incident.
A description of other actions or procedures the Secretary determines are appropriate to address the vulnerability of the facility to a chemical facility terrorist incident.
Provision of threat-related information
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 assigned to the high-risk tier under section 1802(c)(4), threat information that is relevant to the facility, including 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.
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 exercises shall be conducted after informing the owner or operator of the facility selected and shall be designed to identify at each selected facility—
any vulnerabilities of the facility;
possible modes by which the facility could be attacked; and
any weaknesses in the security plan of the facility.
Security performance requirements
In general
The Secretary shall, by regulation, establish security performance requirements for the facility security plans required by chemical facilities assigned to each risk-based tier established under section 1802(c). The regulations shall:
require separate and increasingly stringent security performance requirements for facility security plans as the level of risk associated with the tier increases; and
permit each chemical facility submitting a facility security plan to select a combination of chemical facility security measures that satisfy the security performance requirements established by the Secretary under this subsection.
Criteria
In establishing the security performance requirements under paragraph (1), the Secretary shall consider the criteria under subsection (a)(2).
Guidance
The Secretary shall provide guidance to each chemical facility on the list maintained by the Secretary under section 1802(b)(1) regarding the types of chemical facility security measures that, if applied, could satisfy the requirements under this section.
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.
Co-located chemical facilities
The Secretary 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 implement coordinated vulnerability assessments and facility security plans, at the discretion of the owner or operator of the chemical facilities.
Procedures, protocols, and standards satisfying requirements for vulnerability assessment and security plan
Determination by the Secretary
In response to a petition by any person, or at the discretion 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.
Use of procedures, protocols, and standards
Use by individual facilities
Upon review and written determination by the Secretary under paragraph (1) that the procedures, protocols, or standards of a chemical facility subject to the requirements of this section satisfy some or all of the requirements of this section, the chemical facility may elect to comply with those procedures, protocols, or standards.
Use by classes of facilities
At the discretion of the Secretary, the Secretary may identify a class or category of chemical facilities subject to the requirements of this section 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.
Partial approval
If the Secretary finds that a procedure, protocol, or standard satisfies 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 procedure, protocol, or standard.
Notification
If the Secretary does not endorse or recognize a procedure, protocol, or standard for which a petition is submitted under paragraph (1), the Secretary shall provide to the person submitting a petition under paragraph (1) written notification that includes an explanation of the reasons why the endorsement or recognition was not made.
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—
to review a vulnerability assessment and facility security plan submitted by a high-risk chemical facility under this section; and
to approve or disapprove each assessment or plan on an individual basis.
Other authorities
Existing authorities
A chemical facility on the list maintained by the Secretary under section 1802(a)(1) that is required to prepare a vulnerability 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 assessment or facility security plan prepared by the chemical facility, finds, in consultation with the appropriate authorities, that the chemical facility requires more stringent security measures.
Coordination
In the case of any facility required to be licensed under chapter 40 of title 18, United States Code, the Secretary shall prescribe the rules and regulations for the implementation of this section with the concurrence of the Attorney General and avoid unnecessary duplication of regulatory requirements.
Periodic review by chemical facility required
Submission of review
Not later than 3 years after the date on which a vulnerability assessment 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 vulnerability assessment or facility security plan that includes a description of any changes made to the vulnerability assessment or facility security plan.
Review of review
The Secretary shall—
ensure that a review required under paragraph (1) is submitted not later than the applicable date; and
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.
Record keeping; site inspections
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.
Right of entry
For purposes of carrying out this title, the Secretary (or a designee of the Secretary) shall have, on presentation of credentials, a right of entry to, on, or through any property of a chemical facility 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.
Inspections and verifications
The Secretary shall, at such time and place as the Secretary determines to be appropriate, conduct or require the conduct of facility security inspections and verifications and may, by regulation, authorize third party inspections and verifications by persons trained and certified by the Secretary for that purpose. Such an inspection or verification shall ensure and evaluate compliance with—
this title and any regulations prescribed to carry out this title; and
any security standards or requirements adopted by the Secretary in furtherance of the purposes of this title.
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 credentials, may at reasonable times obtain access to and copy any documentation necessary for—
reviewing or analyzing a vulnerability assessment or facility security plan submitted under section 1803; or
implementing such a facility security plan.
Compliance
If the Secretary determines that an owner or operator of a chemical facility required to submit 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.
Enforcement
Submission of information
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 Secretary may establish different submission requirements for the different tiers of chemical facilities under section 1802(c).
Major changes requirement
The Secretary shall specify in regulations prescribed under section 1803(a), specific deadlines and requirements for the submission by a facility required to submit a vulnerability assessment or facility security plan under that section of information describing—
any change in the use by the facility of more than a threshold amount of any substance of concern; and
any significant change in a vulnerability assessment or facility security plan submitted by the facility.
Failure to comply
If an owner or operator of a chemical facility fails to submit a vulnerability assessment or facility security plan in accordance with this title, the Secretary shall issue an order requiring the submission of a vulnerability assessment or facility security plan in accordance with section 1804(e).
Review of security plan
In general
Deadline for review
Not later than 180 days after the date on which the Secretary receives a vulnerability assessment or facility security plan under this title, the Secretary shall review and approve or disapprove such assessment or plan.
Designee
The Secretary may designate a person (including a third party entity certified by the Secretary) to conduct a review under this subsection.
Disapproval
The Secretary shall disapprove a vulnerability assessment or facility security plan if the Secretary determines that—
the vulnerability assessment or facility security plan does not comply with regulations prescribed under section 1803; or
in the case of a facility security plan, the plan or the implementation of the plan is insufficient to address—
any vulnerabilities identified in a vulnerability assessment of the chemical facility or associated oversight actions taken under section 1803; or
the threat of a chemical facility terrorist incident at the chemical facility.
Specific security measures not required
The Secretary shall not disapprove a facility security plan under this section based solely on the specific chemical facility security measures that the chemical facility selects to meet the security performance requirements established by the Secretary under section 1803(c).
Provision of notification of disapproval
If the Secretary disapproves the vulnerability assessment or facility security plan submitted by a chemical facility under this title or the implementation of a facility security plan by such a facility, the Secretary shall—
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;
provide guidance to assist the facility in addressing such deficiency;
in the case of a facility for which the owner or operator of the facility does not address such deficiencies by such date as the Secretary determines to be appropriate, issue an order requiring the owner or operator to correct specified deficiencies by a specified date; and
in the case of a facility assigned to the high-risk tier under section 1802(c)(4), consult 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.
Revision of disapproved assessment or plan
If the Secretary disapproves a vulnerability assessment or facility security plan submitted under this title, the Secretary shall require the owner or operator of the chemical facility that submitted the assessment or plan to revise the assessment or plan to address any deficiencies identified by the Secretary and to submit to the Secretary the revised assessment or plan.
No private right of action
Nothing in this title confers upon any private person a right of action against an owner or operator of a chemical facility to enforce any provision of this title.
Reporting process
Establishment
The Secretary shall establish, and provide information to the public regarding, a process by which any person may submit a report to the Secretary regarding problems, deficiencies, or vulnerabilities at a chemical facility.
Confidentiality
The Secretary shall keep confidential the identity of a person that submits a report under paragraph (1) and any such report shall be treated as protected information under section 1808(f) to the extent that it does not consist of publicly available information.
Acknowledgment of receipt
If a report submitted under paragraph (1) identifies the person submitting the report, the Secretary shall respond promptly to such person to acknowledge receipt of the report.
Steps to address problems
The Secretary shall review and consider the information provided 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.
Retaliation prohibited
Prohibition
No employer may discharge any employee or otherwise discriminate against any employee with respect to the compensation of, or terms, conditions, or privileges of the employment of, such employee because the employee (or a person acting pursuant to a request of the employee) submitted a report under paragraph (1).
Enforcement process
The Secretary shall establish—
a process by which an employee can notify the Secretary of any retaliation prohibited under this paragraph; and
a process by which the Secretary may take action as appropriate to enforce this section.
Penalties
Administrative penalties
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.
Provision of notice
Before issuing a penalty under paragraph (1), the Secretary shall provide to the person against which the penalty is to be assessed—
written notice of the proposed penalty; and
the opportunity to request, not later than 30 days after the date on which the notice is received, a hearing on the proposed penalty.
Procedures for review
The Secretary may prescribe regulations outlining the procedures for administrative hearings and appropriate review, including necessary deadlines.
Civil penalties
In general
The Secretary may bring an action in a United States district court against any owner or operator of a chemical facility that violates or fails to comply with—
any order or directive issued by the Secretary under this title; or
any facility security plan approved by the Secretary under this title.
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.
Criminal penalties
An owner or operator of a chemical facility who knowingly and intentionally violates 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.
Treatment of information in adjudicative proceedings
In a proceeding under this section, vulnerability assessments, facility security plans, and other information submitted to or obtained by the Secretary under this title, or related vulnerability or security information, shall be treated in any judicial or administrative action as if the information were classified material.
Federal preemption
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.
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 prescribe, an application asking the Secretary to decide whether the requirement is preempted by this title.
Protection of information
Prohibition of public disclosure of protected information
In general
The Secretary shall ensure that protected information, as described in subsection (f), is not disclosed except as provided in this title.
Specific prohibitions
In carrying out paragraph (1), the Secretary shall ensure that protected information is not disclosed—
by any Federal agency under section 552 of title 5, United States Code; or
under any State or local law.
Regulations
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).
Requirements
The regulations prescribed under paragraph (1) shall—
permit information sharing, on a confidential basis, with Federal, State and local law enforcement officials and first responders and chemical facility personnel, as necessary to further the purposes of this title;
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
limit access to protected information to persons designated by the Secretary.
Other obligations unaffected
Nothing in this section affects any obligation of the owner or operator of a chemical facility to submit or make available information to a Federal, State, or local government agency under, or otherwise to comply with, any other law.
Submission of information to Congress
Nothing in this title shall be construed as authorizing the withholding of any information from Congress.
Disclosure of independently furnished information
Nothing in this title shall be construed as affecting any authority or obligation of a Federal agency to disclose any record or information that the Federal agency obtains from a chemical facility under any other law.
Protected information
For purposes of this section, protected information includes the following:
The criteria and data used by the Secretary to assign chemical facilities to risk-based tiers under section 1802 and the tier to which each such facility is assigned.
The vulnerability assessments and facility security plans submitted to the Secretary under this title.
Information concerning the security performance requirements for a chemical facility under section 1803(c).
Any other information generated or collected by a Federal, State, or local government agency or by a chemical facility for the purpose of carrying out or complying with this title that—
describes any vulnerability of a chemical facility to an act of terrorism;
describes the assignment of any chemical facility to a risk-based tier under this title;
describes any security measure (including any procedure, equipment, training, or exercise) for the protection of a chemical facility from an act of terrorism; or
the disclosure of which the Secretary determines would be detrimental to the security of any chemical facility.
Certification of third-party entities
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.
Procedures and requirements for private entities
Before designating a third-party entity to carry out a function under subsection (a), the Secretary shall—
develop, document, and update, as necessary, minimum standard operating procedures and requirements applicable to such entities designated under subsection (a), including—
conducting a 90-day independent review of the procedures and requirements (or updates thereto) and the results of the analyses of such procedures (or updates thereto) pursuant to subtitle G; and
upon completion of the independent review under subparagraph (A), designating any procedure or requirement (or any update thereto) as a qualified anti-terrorism technology pursuant to section 862(b); and
conduct safety and hazard analyses of the standard operating procedures and requirements developed under paragraph (1).
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 procedures and requirements are completed under paragraph (1)(B), the Secretary shall
complete a technical review of the procedures and requirements (or updates thereto) under sections 862(b) and 863(d)(2); and
approve or disapprove such procedures and requirements (or updates thereto).
Effect of approval
Issuance of certificate of conformance
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 subsection (a) if the entity—
demonstrates to the satisfaction of the Secretary the ability to perform validations in accordance with standard operating procedures and requirements (or updates thereto) approved by the Secretary under subsection (c)(2); and
agrees to—
perform such function in accordance with such standard operating procedures and requirements (or updates thereto); and
maintain liability insurance coverage at policy limits and in accordance with conditions to be established by the Secretary pursuant to section 864; and
signs an agreement to protect the proprietary and confidential information of any chemical facility with respect to which the entity will perform such function.
Litigation and risk management protections
A third-party entity that maintains liability insurance coverage at policy limits and in accordance 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.
Reciprocal waiver of claims
A reciprocal waiver of claims shall be deemed to have been entered into between a third-party entity that receives a certificate of conformance under paragraph (1) and its contractors, subcontractors, suppliers, vendors, customers, and contractors and subcontractors of customers involved in the use or operation of any function performed by the third-party entity under subparagraph (a).
Information for establishing limits of liability insurance
A third-party entity seeking a certificate of conformance under paragraph (1) shall provide to the Secretary necessary information for establishing the limits of liability insurance required to be maintained by the entity under section 864(a).
Monitoring
The Secretary shall regularly monitor and inspect the operations of a third-party entity that performs a function under subparagraph (a) to ensure that the entity is meeting the minimum standard operating procedures and requirements established under subsection (b) and any other applicable requirement under this section.
Annual report to Congress
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 Secretary shall publish a report on progress in achieving compliance with this title, including—
an assessment of the effectiveness of the facility security plans developed under this title;
any lessons learned in implementing this title; and
any recommendations of the Secretary to improve the programs, plans, and procedures under this title.
Protected information
A report under this section may not include information protected under section 1808.
Applicability
This title shall not apply to—
any facility that is owned and operated by the Department of Defense, the Department of Justice, or the Department of Energy;
the transportation in commerce, including incidental storage, of any substance of concern regulated as a hazardous material under chapter 51 of title 49, United States Code; or
any facility that is owned or operated by a licensee or certificate holder of the Nuclear Regulatory Commission.
Savings clause
Nothing in this title is intended to affect section 112 of the Clean Air Act (42 U.S.C. 7412), the Clean Water Act, the Resource Conservation and Recovery Act, and the National Environmental Policy Act of 1969.
.
Clerical amendment
The table of contents in section 1(b) of such Act is amended by adding at the end the following:
Title XVIII—Regulation of Chemical Facilities
Sec. 1801. Definitions.
Sec. 1802. Designation and ranking of chemical facilities.
Sec. 1803. Vulnerability assessments and facility security plans.
Sec. 1804. Record keeping; site inspections.
Sec. 1805. Enforcement.
Sec. 1806. Penalties.
Sec. 1807. Federal preemption.
Sec. 1808. Protection of information.
Sec. 1809. Certification of third-party auditors.
Sec. 1810. Annual report to Congress.
Sec. 1811. Applicability.
Sec. 1812. Savings clause.
Report to Congress
Updated report
Not later than 1 year after the date of enactment of this Act, the Secretary of Homeland Security shall submit to the Committee on Homeland Security of the House of Representatives and the Committee on Homeland Security and Governmental Affairs of the Senate an update of the national strategy for the chemical sector that is required to be submitted by the Secretary to the Committee on Appropriations of the House of Representatives and the Committee of Appropriations of the Senate by not later than February 10, 2006.
Protected information
A report under this section may not include information protected under section 1808 of the Homeland Security Act of 2002, as added by section 3.
Inspector General report
Report required
Not later than 1 year after the date on which the regulations required to be prescribed under this Act are prescribed, the Inspector General of the Department of Homeland Security shall submit a report to the Committee on Homeland Security of the House of Representatives and the Committee on Homeland Security and Governmental Affairs of the Senate that reviews the effectiveness of the implementation of this Act, including the effectiveness of facility security plans required under this Act and any recommendations to improve the programs, plans, and procedures required under this Act.
Classified annex
The Inspector General may issue a classified annex to the report if the Inspector General determines a classified annex is necessary.
Deadline for regulations
The Secretary shall prescribe the regulations required to be prescribed under section 1803(a) of the Homeland Security Act of 2002, as added by section 1(a), by not later than one year after the date of the enactment of this Act.