National Defense Authorization Act for Fiscal Year 2006

NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2006 -- (Senate - November 09, 2005)

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Ms. COLLINS. Mr. President, I am pleased to join my colleague, Senator MURRAY, in introducing today the GreenLane Maritime Cargo SecurityAct. It has been a great pleasure to work with my colleague on this important issue. Senator MURRAY has been an early leader in the call for greater port security. I am pleased we were able to join our efforts in a bipartisan bill to provide long overdue improvements in maritime security.

Our comprehensive legislation would help build a coordinated approach to maritime and port security across all levels of government and with our overseas trading partners. It would improve our Nation's security as it expedites trade with those governments and businesses that join us in this goal. It would encourage innovation, and it would provide financial assistance to our ports as they strive to strengthen their terrorism prevention and response efforts.

This legislation would provide the structure and resources needed to better protect the American people from attack through these vital yet extremely vulnerable points of entry and centers of economic activity.

Coming from a State with three international cargo ports, including the largest port by tonnage in New England, I am keenly aware of the importance of our seaports to our national economy and to the communities in which they are located. In addition to our ports' obvious economic significance, the link between maritime security and our national security has been underscored time and again by terrorism experts, including the 9/11 Commission. It is easy to see why, if you look at the statistics.

In 2003, more than 6,000 ships made nearly 57,000 calls on American ports. They carried the bulk of approximately 800 million tons of goods that came into our country, including more than 9 million containers. We know that al-Qaida has the stated goal of causing maximum harm to the American people and maximum disruption to our economy. Therefore, when you look at what could achieve those goals, you are instantly drawn to our cargo ports.

We already have a glimpse of the staggering damage a terrorist attack on a cargo port could produce. In the fall of 2002, the west coast dock strike cost our economy an estimated $1 billion a day for each of the 10 days that the work stoppage lasted. It not only brought those western coast ports to a halt but also harmed businesses throughout the country. That astonishing amount of harm, $10 billion worth, was the result of an event that was both peaceful and anticipated. Think of what the impact of a terrorist attack would be.

More recently, Hurricane Katrina brought the port of New Orleans and several other gulf coast ports to a standstill. Fortunately, much of this cargo was able to be diverted to other ports undamaged by the storm. In the aftermath of a terrorist attack, however, it is likely that an attack on one port would result in the closure, at least temporarily, of all ports. All of us remember in the wake of 9/11 that commercial aircraft were grounded across this country for a number of days. It is logical to assume that all of the ports would be closed in this country if there were a terrorist attack on one port.

In addition to the threat of a direct attack on one of our ports, any one of the more than 9 million containers that enter the United States each year has the potential to be the Trojan horse of the 21st century. When we look at these huge cargo ships unloading thousands of containers every day, we think: Oh, that contains consumer goods, maybe television sets or toys or clothing or sneakers. Fortunately, in the vast majority of cases, that is exactly what is in those containers. But a container could include terrorists themselves, biological or chemical agents, or even a small nuclear weapon.

For years, criminals have used cargo containers to smuggle narcotics, firearms, and people into the United States. These containers may come from anyone of 1,000 ports overseas, ports that have varying degrees and levels of security. They could also be intercepted or tampered with along the way.

Earlier year this year, I toured the ports of Los Angeles and Long Beach. The sheer size of these facilities and the activities that are going on every day are startling. So, too, are the risks and the vulnerabilities that they offer for terrorists to exploit. By coincidence, my visit came days before 32 Chinese nationals were smuggled into the port of Los Angeles in two cargo containers. Fortunately, that Trojan horse held people who were simply seeking a better way of life, albeit illegally, and they were not terrorists seeking to destroy our way of life. They were caught. But what is particularly disturbing to me, and speaks to the weaknesses and vulnerabilities of the current system, is they weren't caught through any security measure. It wasn't the container security initiative or the C-TPAT Program or any other new initiative that resulted in these 32 Chinese nationals being caught. Instead it was an alert crane operator who happened to see them crawling out of the containers.

We cannot continue to rely on luck or even alert crane operators to provide for the security of our seaports, our Nation, and our people.

In August, the President issued the National Security Strategy for Maritime Security. It warns of the probability of a hostile state using a weapon of mass destruction sometime in the next decade, and it identifies the maritime sector as most likely to be used to bring a weapon of mass destruction into the United States. In addition, the use of ``just in time'' inventories, which are now used by most industries, means that a disruption of our ports would have catastrophic repercussions for our entire economy.

A fundamental goal of port security is to head off trouble before it reaches our shores. Current supply-chain security programs within the Federal Government, however, were separately conceived and managed by different agencies, rather than woven together into a layered, consistent approach. The result of that, the Government Accountability Office tells us, is that only 17.5 percent of high-risk cargo identified by our own Customs agents was inspected overseas. I am talking about cargo that has been identified as high risk, and yet we are inspecting less than 20 percent of high-risk cargo. We found that the current programs lack standards, lack staffing, and lack the validation of security measures that are necessary for their success.

We cannot remove the risk of a terrorist attack, but the better security measures outlined by the Murray-Collins bill can build a stronger shield against terrorism without hampering trade.

This legislation provides the tools to construct a more effective security system. It was developed in close consultation with key stakeholders including port authorities, major retailers and importers, carriers, supply chain managers, security and transportation experts, and Federal and State agencies.

First, it addresses the problem of uncoordinated supply-chain security efforts by directing the Secretary of Homeland Security to develop a strategic plan to strengthen international security for all modes of transportation by which containers arrive in, depart from or move through seaports of the United States. This plan will clarify the roles, responsibilities, and authorities of government agencies at all levels and of private sector stakeholders. It will establish clear, measurable goals for furthering the security of commercial operations from point of origin to point of destination. It will outline mandatory, baseline security measures and standards and provide incentives for additional voluntary measures.

The new Office of Cargo Security Policy, established in our legislation, would ensure implementation of the strategic plan. This important office will report to the Department's Assistant Secretary for Policy in order to better coordinate maritime security efforts within the Department of Homeland Security and among our international and private-sector partners.

This legislation also gives the Secretary 6 months to establish minimum standards and procedures for securing containers in transit to the U.S., based on the Department's experience with current cargo security programs. All containers bound for U.S. ports of entry must meet those standards no later than 2 years after they are established. Currently, DHS has been too slow to implement certain vital security measures. For example, the Department has been working on a regulation setting a minimum standard for mechanical seals on containers for more than 2 years. Such delays are unacceptable. This legislation would set clear timelines to ensure steady progress.

The Department has also pledged to deploy radiation detection equipment at all ports of entry in the U.S. to examine 100 percent of cargo. The zero tolerance policy for radiation has been discussed since 2002, though less than a quarter of the detection equipment deemed necessary for domestic coverage had been deployed as of last month. Even more frustrating is that the Department has changed the target for system deployment multiple times. The Department's new Domestic Nuclear Detection Office is beginning to take hold of this critical issue, yet the need for a comprehensive plan for the deployment of radiation detection equipment is evident. Our legislation requires this plan be developed and that 100 percent incoming containers to the U.S. be examined for radiation no later than 1 year after enactment.

I want to thank Senator COLEMAN for his efforts in this area. These provisions address concerns that have been identified through our joint investigative work on programs protecting our nation against weapons of mass destruction.

For the first time, this legislation would authorize the Container Security Initiative. Ongoing, predictable funding--$175 million a year for the five years beginning in 2007--is essential for this crucial program to succeed. In addition to providing funding, the bill lays out requirements for CSI ports and a process for designating new ports under CSI. The Secretary must undertake a full assessment of the potential risk of smuggling or cargo tampering related to terrorism, before designating a port under CSI. This authorization also will enable our CSI partners to strengthen anti-terrorism measures and to improve training of personnel.

We would authorize C-TPAT at $75 million per year for that same 5-year period, and we clearly outline the certification and validation requirements and the benefits associated with meeting those requirements. Our legislation directs the Secretary to correct the deficiencies of the program, and, within one year, to issue guidelines that will be used to certify a participant's security measures and supply chain practices.

In addition, we would create a new, third tier of C-TPAT, called the GreenLane, which offers additional benefits to C-TPAT participants that meet the highest level of security standards. Cargo in transit to the U.S. through the GreenLane would be more secure through the use of container security devices and stronger supply chain security practices in all areas, such as physical, procedural and personnel security. The legislation directs the Secretary to develop benefits that may include further reduced inspections, priority processing for inspections, and, most significantly, preference in entering U.S. ports in the aftermath of a terrorist attack. Senator MURRAY, who developed this concept, will describe GreenLane in greater detail.

The bill also places a greater emphasis on communications among government and industry players in responding to an incident and settles the critical question of ``who's in charge.''

Technology plays an important role in maritime and cargo security. The Department of Homeland Security has scattered efforts to deploy existing technologies, to enhance those tools and to develop new ones. It is critical that these efforts be undertaken in a more coordinated fashion. In addition, the Government must work closely with and encourage the ingenuity of the private sector in developing the technologies that will improve both security and trade.

Let me close by saying that this legislation recognizes that America's ports, large and small, are our partners in keeping our Nation safe and our economy moving. Our Port Security Grant Program will help our ports make the investments needed to meet the threat of terrorism. The global maritime industry is crucial to our Nation's economy, and our ports are undoubtedly on the front lines of the war against terrorism. This legislation would set clear goals for improving the security of this vital sector, and it would provide the resources to meet and achieve those goals.

I again thank my colleague, Senator MURRAY, for her hard work and initiative on this legislation. We are pleased to be joined as original cosponsors by Senators NORM COLEMAN and JOE LIEBERMAN. That is indicative of the kind of bipartisan support this legislation enjoys, and it is my hope that many more of our colleagues will join us in bringing this legislation to enactment early next year. Our container trading system was designed for a world before September 11.

Now, here we are, 4 years later, and we still have not made our maritime cargo system as secure as it needs to be. Six months after the September 11 attacks, I held a hearing to exam the vulnerability of cargo security. Many of the concerns that were raised at that hearing are still dogging us today.

One of the challenges we face is how we can make trade more secure without slowing it to a crawl. If we have absolute security, we will curtail trade. If we have completely open trade, we will not have enough security.

For the past few years, I have been meeting with leaders in Government and industry to figure out how we can strike the right balance. One thing I know for sure is, it is better for us to work together now to design a security system on our own terms than to wait for an attack and force a security system in a crisis atmosphere.

I have spent several years exploring this challenge and meeting with stakeholders to get their ideas. Senator COLLINS, as chair of the Senate Homeland Security and Governmental Affairs Committee, has held hearings on this issue and has introduced legislation.

As a result of our work, Senator COLLINS and I have developed the GreenLane Maritime Cargo Security Act. It provides, for the first time, a comprehensive blueprint for how we can improve security while keeping trade efficient. At its heart, this challenge is about keeping the good things about trade--speed and efficiency--without being vulnerable to the bad things about trade--the potential for terrorists to use our engines of commerce.

There is an incident that occurred a few years ago that shows just how serious a threat we are facing. Four years ago, in Italy, dockworkers noticed something strange about one of the cargo containers. They opened it up and found an Egyptian man inside. But this was not your average stowaway. This man was a suspected al-Qaida terrorist, and he had all of the tools of the trade with him. His cargo container had been outfitted for a long voyage with a bed, a heater, and water. He had a satellite phone and a laptop computer. He also had security passes and mechanic certificates for four U.S. airports.

Now, that happened in 2001. It can still happen today. But don't take my word for it. The Commissioner of Customs and Border Protection said:

[T]he container is the potential Trojan Horse of the 21st century.

The 9/11 Commission said terrorists may turn from targeting aviation to targeting seaports because ``opportunities to do harm are as great, or greater, in maritime or surface transportation.''

As we all know, our Government has uncovered al-Qaida training manuals, and some of these books suggest that terrorists try to recruit workers at borders, airports, and seaports.

There are two main scenarios we need to think about.

First, a group like al-Qaida could use cargo containers to smuggle weapons and personnel into the United States. They could split up a weapon and ship it to the U.S. in separate containers. And those pieces could be reassembled anywhere in the United States. So the first danger is that terrorists could use these cargo containers to get dangerous weapons into the United States.

Secondly, terrorists could use a cargo container as a weapon itself. A terrorist could place a nuclear, chemical, or biological weapon inside a container and then detonate it once it reaches a U.S. port or another destination inside the United States.

This week, the 9/11 Commission said we have not done enough to prevent terrorists from acquiring weapons of mass destruction. One study said if a nuclear device was detonated at a major seaport, it could kill up to a million people. Now, many of our ports are located near major cities. Others are located near key transportation hubs. For example, if a chemical weapon were detonated in Seattle, the chemical plume could contaminate the rail system, Interstate 5, and SeaTac Airport, not to mention the entire downtown business and residential areas.

Terrorists could also detonate a dirty bomb or launch a bioterror attack. Any of those scenarios would impose a devastating cost in human lives, but that is not all.

We also know that al-Qaida wants to cripple our economy. Cargo containers could offer them a powerful way to do just that, and the damage goes beyond lives. An attack launched through our ports would also have a devastating economic impact. That is because after an attack the Federal Government is likely to shut down our ports to make sure that additional hazards weren't being brought into the country--similar to what we did with airplanes after 9/11.

When we stopped air travel then, it took us a couple of days to get back up to speed. And as we all remember, it cost our economy a great deal. But if you stopped cargo containers without a resumption system in place, it could take as long as 4 months to get them inspected and moving again. That would cripple our economy, and it could even spark a global recession.

Today, our cargo containers are part of the assembly line of American business. We have just-in-time delivery and rolling warehouses. If you shut down the flow of cargo, you are shutting down the economy. If our ports were locked down, we would feel the impact at every level of our economy.

Factories would not be able to get the raw materials they need. Many keep small inventories on hand. Once those inventories run out, factories would be shut down and workers laid off. We would also see the impact in stores. Merchants would not be able to get their products from overseas. Store shelves would go bear, and workers, again, would be laid off.

One study, in fact, concluded that if U.S. ports were shut down for 12 days, it could cost our economy $58 billion. In 2002, we saw what closing down a few ports on the west coast would do. When west coast dockworkers were locked out, it cost our economy about $1 billion a day. Imagine if we shut down all our ports, not just those on the west coast.

Dr. Stephen Flynn, who is a national security expert, has said that a 3-week shutdown could spawn a global recession. It is clear that we are vulnerable and that an attack could do tremendous damage.

If our ports were shut down today, we do not have a system in place for getting them started again. There is no

protocol for what would be searched, what would be allowed in, and even who would be in charge.

Now, I want to acknowledge that we have made some progress since 9/11. We have provided some funding to make our ports more secure. I have fought for port security grants to make sure we are controlling access to our ports, and our local ports are on the cutting edge of security. We have implemented the 24-hour rule so we know what is supposed to be in a container before it reaches the United States. We are adding some more detection equipment to American ports, but, remember, once a nuclear device is sitting on a U.S. dock, it is too late. Customs created a program that works with foreign ports to speed some cargo into the United States. It is a good idea, but to date it has not been implemented well.

In May, the Government Accountability Office issued a very troubling report. It found that if companies applied for C-TPAT status, we gave them less scrutiny simply for submitting paperwork. We never checked to see if they actually did what they said they were going to do. We just inspected them less. One expert called that approach ``trust, but don't verify.''

Even when U.S. Customs inspectors do find something suspicious at a foreign port, they cannot force a container to be inspected today. They can ask the local government, but those requests are frequently rejected.

So because we cannot enforce those agreements through our State Department, our Customs officials do not have the power they need, and potentially dangerous cargo can arrive at U.S. ports without being inspected overseas.

I am deeply concerned about this issue because I know that maritime cargo, especially container cargo, is a critical part of our economy. My interest in trade goes back to my childhood. My dad ran a small dime store. He relied on imports to stock the shelves in his store. International trade put food on our table, and I have never forgotten that. So I want to make sure we close the loopholes that threaten our ability to trade, while we protect our lives and our economy.

I have worked on this challenge for several years. I have held hearings. I wrote and funded Operation Safe Commerce. And I have been meeting with various stakeholders.

I know this proposal has to work for everyone in the supply chain: importers, freight forwarders, shippers, terminal operators, and workers such as longshoremen, truckdrivers, and port employees--all the people who are on the frontlines as our eyes and our ears. They need to be part of the solution because they would be among the first to be hurt if an incident occurred.

Senator COLLINS and I have worked together to get input from stakeholders, and with that we have crafted a bill that I believe strikes the right balance. Our proposal is built around five commonsense ideas.

It has been over 4 years since the tragedy of September 11, and some of our most vulnerable assets--our ports and our maritime cargo system--still do not have a coordinated security regime. So the GreenLane Act will take that first step and ensure minimum security standards are in place for all container cargo entering our ports.

Secondly, because there are so many cargo containers coming into our country, we need to make that haystack smaller. We need to do a better job in front-loading our inspections overseas before the cargo ever gets loaded on a ship that is headed for the United States. Then, instead of focusing on a small percent of all containers, we can separate the most secure containers from the ones that need more security.

Third, we need to give businesses incentives to adopt better security. Companies are going to do what is in their financial interest, and we can use market incentives to make the entire industry more secure.

Fourth, we need to minimize the impact of any incident. Right now, if there were a terrorist attack through one of our ports, there would be an awful lot of confusion. So we need to put one office in charge of cargo security policy. We need to create protocols for resuming trade after an incident occurs. And we need to establish joint operations centers to help make local decisions that will get our trade moving again.

We cannot afford to leave cargo on the docks for weeks. We need a plan that tells us in advance what cargo will be unloaded first, and how we will get this system back on its feet.

Finally, we need to monitor and secure cargo from the factory floor overseas until it reaches our own shores. There are vulnerabilities at every step of the supply chain. A secure system is going to start at the factory overseas and continue until that cargo reaches its final destination.

I want to detail how our bill will make the American people safer. First of all, it raises the security standards for everyone across the board and directs the Department of Homeland Security to take all of the best practices and lessons learned and create new standards that will establish a new baseline of security for everyone.

Secondly, it creates the GreenLane. If shippers agree to follow the higher security standards of the GreenLane, they get a series of benefits.

To be designated as GreenLane cargo, importers have to ensure that all entities within their supply chain are validated C-TPAT participants; access to the cargo and containers is restricted to those employees who need access and we are assured of their identification; a logistics system is in place that provides the ability to track everything loaded into a GreenLane container back to the factory; and, a container security device, such as an e-seal, is used to secure the container.

Remember, GreenLane is optional. No one has to participate. I believe companies will want to participate because they will get benefits in return.

What are those benefits? Their bonding requirements could be reduced or eliminated. Instead of paying customs duties on every shipment, they could be billed monthly or quarterly. Their cargo will be subject to fewer searches and will be released faster upon entering the United States. They will lose less cargo to theft, and they will have the stability that comes from having one uniform standard to plan around.

Finally, the GreenLane Act sets up a plan so that trade can be resumed quickly and safely if an attack occurs. Today, there are no protocols. There is no guide on how to get the system going again. Our bill will create one, and it will let the most secure cargo--the GreenLane cargo--be released first.

Our bill creates joint operations centers to ensure a coordinated, measured response and the resumption and flow of commerce in the event of an incident or heightened national security threat level.

Our bill takes other steps. It expands port security grants. It makes sure we continue to monitor our security system to make sure it is working. It makes sure that a company's cargo data is not available to competitors. It sets a uniform standard for security so shippers and others have some certainty, rather than a hodgepodge of different standards.

There have been a lot of commissions and studies on port security, and we have worked to address their recommendations in our bill.

The 9/11 Commission said we need ``layered'' security, that we need to centralize authority so we can have more accountability, and that Federal agencies need to share information better. Our bill implements all of those recommendations.

The Government Accountability Office looked at current Customs programs and identified some troubling shortcomings.

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