National Preparedness Grant Program. Sec. XXX. ESTABLISHING THE NATIONAL PREPAREDNESS GRANT PROGRAM.

National Preparedness Grant Program Enacting Language: Sec. XXX. ESTABLISHING THE NATIONAL PREPAREDNESS GRANT PROGRAM. Title XX of the Homeland Security Act as amended ( U.S.C. 0 et. seq.) is amended (a) by striking the title heading and inserting the following: TITLE XX NATIONAL PREPAREDNESS GRANTS ; (b) in section 0 ( U.S.C. 0) () by striking paragraphs () and (); () by redesignating paragraphs (), (), (), (), (), as paragraphs (), (), (), (), (), respectively; () by inserting a new () as follows: () CRITICAL INFRASTRUCTURE SECTORS. The term critical infrastructure sectors means the following sectors, in both urban and rural areas: (A) Chemical (B) Commercial Facilities (C) Communications (D) Critical Manufacturing (E) Dams (F) Defense Industrial Base (G) Emergency Services (H) Energy

(I) Financial Services (J) Food and Agriculture (K) Government Facilities (L) Healthcare and Public Health (M) Information Technology (N) Nuclear Reactors, Materials and Waste (O) Transportation Systems (P) Water and Wastewater Systems. ; () by inserting a new paragraph () as follows: () LOCAL UNIT OF GOVERNMENT. For the purposes of this title, the term local unit of government means: a local government as defined at U.S.C. ; a high risk urban area as identified pursuant to section 0 of this title; a recipient eligible to receive grants under U.S.C. 0; a recipient eligible to receive grants under U.S.C. ; a recipient eligible to receive grants under subtitles A, B, and C of Title XV of the Implementing Recommendations of the / Commission Act of 0; and organizations (as described under section 0(c)() of the Internal Revenue Code of and exempt from tax section 0(a) of such code) determined by the Secretary to be at high risk of a terrorist attack. ; () in paragraph (), as redesignated, by inserting and homeland security after law enforcement ; (c) by striking the subtitle heading for Subtitle A and inserting the following: Subtitle A Grants to States and Eligible Tribes ; (d) by striking the heading for section 0 ( U.S.C. 0) and inserting the following: SEC. 0. EFFECTS ON OTHER GRANT PROGRAMS.

(e) in section 0 ( U.S.C. 0) () in subsection (a) (A) by striking sections and inserting section ; (B) by striking and 0 ; (C) by striking, local, ; () in subsection (b) (A) by striking paragraphs (), (), and (); (B) by redesignating paragraph () as paragraph (); () in subsection (c) (A) in paragraph (), by striking programs and inserting program ; (B) in paragraph (), by striking and 0 ; (C) by striking paragraph () and inserting: () ALLOCATION. For grants made for fiscal year and thereafter, the allocation of grants authorized under section 0 shall be governed by the terms of this subtitle and not by any other provision of law. ; (f) by striking sections 0 ( U.S.C. 0) and 0 ( U.S.C. 0); (g) by inserting new section 0 as follows: SEC. 0. NATIONAL PREPAREDNESS GRANT PROGRAM. (a) ESTABLISHMENT. There is established a National Preparedness Grant Program to help achieve the National Preparedness Goal. The Administrator shall make grants to enable recipients, including high-risk urban areas, States, territories, local units of government, and Tribal Nations to build and sustain core capabilities identified in the National Preparedness Goal. (b) APPLICATION.

() IN GENERAL. Each State may apply for a grant under this section, and shall submit such information in support of the application as the Administrator may reasonably require. The State will submit one application on behalf of the entire State, to include specific requests from local units of government (as defined in section 0) that are consistent with State, regional, and local risk assessments and capability estimation processes. () MINIMUM CONTENTS OF APPLICATION. The Administrator shall require that each State include in its application, at a minimum (A) a description of the manner in which the requested grant will develop and sustain core capabilities identified in the National Preparedness Goal; (B) a description of each proposed State-approved project, and how that project addresses capability gaps and needs identified through State, regional, and local risk assessments and capability estimation processes, a description of engagement with stakeholders across government and nongovernment, and impacts on the general population, including children and individuals with access and functional needs; (C) a description of how the requested grant will sustain and maintain existing capabilities, if applicable; (D) an explanation of the process by which projects proposed by local units of government (as defined in section 0)have been reviewed and agreed to by the senior advisory or planning committee described in section ;

(E) a description of the coordination by and amongst the State and local units of government (as defined in section 0), to identify and prioritize the projects proposed for funding in the application; (F) a budget showing how the State intends to expend the grant funds; and (G) a description of how the State plans to allocate the grant funds to local units of government. () STATE REVIEW AND TRANSMISSION. (A) IN GENERAL. To ensure consistency with State homeland security plans, a local unit of government (as defined in section 0 ( U.S.C. 0)) shall submit its proposed projects to its State before submission of such application to the Department. The State will review and approve proposed projects and provide to the Administrator in one application. (B) OPPORTUNITY FOR STATE COMMENT. If the Governor of a State determines that a sub-application of a local unit of government (as defined in section 0) is inconsistent with the State homeland security plan of that State, or otherwise does not support the application, the Governor shall (i) notify the Administrator, in writing, of that fact; and (ii) provide an explanation of the reason for not supporting the application at the time of transmission of the application. () OPPORTUNITY TO AMEND. In considering applications for grants under this section, the Administrator shall provide applicants with a reasonable opportunity to correct defects in the application, if any, before making final awards. Such defects are defined as technical errors which would render the application ineligible. This section

does not permit substantive alterations to applications that would improve competitiveness. () ANNUAL APPLICATIONS. Applicants for grants under this section shall apply or reapply on an annual basis. (c) ASSESSMENT AND DESIGNATION OF HIGH-RISK URBAN AREAS. () IN GENERAL. The Administrator shall designate high risk urban areas that are eligible to receive funding through their State under this section based on procedures under this subsection. () INITIAL ASSESSMENT. (A) IN GENERAL. For each fiscal year, the Administrator shall conduct an initial assessment of the relative threat, vulnerability, and consequences from acts of terrorism faced by each eligible metropolitan area, including consideration of (i) the factors set forth in subparagraphs (A) through (H) and (K) of section 0(a)(); and (ii) information and materials submitted under subparagraph (B). (B) SUBMISSION OF INFORMATION BY ELIGIBLE METROPOLITAN AREAS. Prior to conducting each initial assessment under subparagraph (A), the Administrator shall provide each eligible metropolitan area with, and shall notify each eligible metropolitan area of, the opportunity to review the risk assessment conducted by the Department and submit information that the eligible metropolitan area believes to be relevant to the determination of the threat, vulnerability, and consequences it faces from acts of terrorism.

() DESIGNATION OF HIGH-RISK URBAN AREAS. (A) DESIGNATION. (i) IN GENERAL. For each fiscal year, after conducting the initial assessment under paragraph (), and based on that assessment, the Administrator shall designate high-risk urban areas that are eligible to receive funding through the State under this section. (ii) ADDITIONAL AREAS. Notwithstanding paragraph (), the Administrator may (I) in any case where an eligible metropolitan area consists of more than metropolitan division (as that term is defined by the Office of Management and Budget) designate more than highrisk urban area within a single eligible metropolitan area; and (II) designate an area that is not an eligible metropolitan area as a high-risk urban area based on the assessment by the Administrator of the relative threat, vulnerability, and consequences from acts of terrorism faced by the area. (iii) RULE OF CONSTRUCTION. Nothing in this subsection may be construed to require the Administrator to (I) designate as high-risk urban areas all eligible metropolitan areas that submit information to the Administrator under paragraph ()(B)(i); or (II) designate as part of the high-risk urban area all areas within an eligible metropolitan area.

(B) JURISDICTIONS INCLUDED IN HIGH-RISK URBAN AREAS. (i) IN GENERAL. In designating high-risk urban areas under subparagraph (A), the Administrator shall determine which jurisdictions, at a minimum, shall be included in each high-risk urban area. (ii) ADDITIONAL JURISDICTIONS. A high-risk urban area designated by the Administrator may, in consultation with the State or States in which such high-risk urban area is located, add additional jurisdictions to the high-risk urban area. (d) DISTRIBUTION OF AWARDS. () IN GENERAL. All grant funding under the National Preparedness Grant Program will be awarded directly to the State, other than those awarded directly to eligible tribes under section 0. () STATE DISTRIBUTION OF FUNDS. Not later than days after receiving grant funds, any State receiving a grant under this section shall make available to local units of government, consistent with the applicable State homeland security plan (A) not less than 0 percent of the grant funds; (B) with the consent of local units of government, items, services, or activities having a value of not less than 0 percent of the amount of the grant; or (C) with the consent of local units of government, grant funds combined with other items, services, or activities having a total value of not less than 0 percent of the amount of the grant. () ACCOUNTING FOR FUNDS RETAINED BY STATE.--If the State retains any funding designated for a local unit of government, then the State shall provide that local

unit of government with an accounting of the items, services, or activities on which any funds retained by the State are expended. (e) PEER REVIEW OF GRANT APPLICATIONS. () IN GENERAL. The Administrator of FEMA shall appoint professionals from States, Tribes, and local units of government, and the private sector as necessary, to conduct peer reviews of those applications that are received under subsection (b) and that are subject to competition under guidance established by the Administrator. () APPLICABILITY OF FEDERAL ADVISORY COMMITTEE ACT. The Federal Advisory Committee Act ( U.S.C. App.) shall not apply to activities carried out pursuant to this subsection. (f) AUTHORIZATION OF APPROPRIATIONS. There are authorized to be appropriated for grants under this section () $,0,0,000 in fiscal year and () such sums as are necessary for fiscal year, and each fiscal year thereafter. ; (h) by redesignating section 0 ( U.S.C. 0) as section 0; (i) in section 0, as redesignated () in subsection (a) (A) by striking, Notwithstanding section 0(b), the and inserting "The"; and (B) by striking under section 0 and inserting under section 0 ; () in subsection (b) (A) by striking 0 the first place it appears and inserting 0 ; and (B) by striking 0(b) and inserting 0(b) ;

() in subsection (c)(), by striking 0 and inserting 0 ; () in subsection (e), by striking 0 and inserting 0 ; () in subsection (g) (A) by striking State Homeland Security Grant Program and inserting National Preparedness Grant Program ; (B) by striking 0 the first place it appears and inserting 0 ; and (C) by striking and 0 ; () by striking subsection (h) and inserting the following: (h) TRIBAL LIAISON. A directly eligible tribe applying for a grant under section 0 shall designate an individual to serve as a tribal liaison with the Department and other Federal, State, local, and regional government officials concerning preventing, protecting against, mitigating, responding to, and recovering from all threats and hazards, to include acts of terrorism. ; () in subsection (i), by striking 0 and inserting 0 ; () in subsection (j) (A)by striking 0 each place it appears and inserting 0 ; (B) in paragraph (j)(), by striking the word target and inserting core ; (j) by redesignating section 0 ( U.S.C. 0) as section 0; (k) in section 0, as redesignated, () by striking the section heading and inserting: SEC. 0. OFFICE FOR STATE AND LOCAL LAW ENFORCEMENT. () by striking subsection (a); () by redesignating subsection (b) as subsection (a); () by redesignating paragraph (a)(), as redesignated, as subsection (b); and

() by amending subparagraph (a)()(d), as redesignated, to read as follows: (D) work with the Administrator, and other appropriate offices within DHS, to ensure that law enforcement and terrorism-focused grants to State, local, and tribal government agencies, including grants under section 0, the Commercial Equipment Direct Assistance Program, and other grants administered by the Department to support intelligence and law enforcement oriented programs, are appropriately focused on terrorism prevention activities ; (l) by redesignating section 0 ( U.S.C. 0) as section 0; (m) in section 0 as redesignated () in subsection (a) (A) by striking In allocating funds and all that follows through high risk urban area and inserting: In allocating funds among States and local units of government (as defined in section 0 ( U.S.C. 0)) applying for grants under section 0, the Administrator shall consider, for each state or local unit of government (B) by amending paragraph () to reads as follows: () its relative threat, vulnerability, and consequences from all threats and hazards, to include acts of terrorism. The Administrator shall review a set of risk factors and may decide which factors are most appropriate for inclusion in the final risk assessment, including consideration of ; (C) in subparagraph ()(F), by striking high risk urban area and inserting local unit of government ; (D) in subparagraph ()(H), by inserting all threats and hazards, to include before acts of terrorism ;

(E) in subparagraph ()(I), by striking target and inserting core ; (F) by amending clause ()(J)(i) to read as follows: (i) those incorporated municipalities, counties, parishes, and Indian tribes within the relevant eligible metropolitan area, the inclusion of which will enhance regional efforts to prevent, protect against, mitigate, respond to, and recover from all threats and hazards, to include acts of terrorism; and ; (G) in clause ()(J)(ii), by inserting all threats and hazards, to include before acts of terrorism ; (H) by amending paragraph () to read as follows: () the anticipated effectiveness of the proposed use of the grant by the State or local unit of government area in increasing the ability of that State or local unit of government to build and sustain the core capabilities identified in the National Preparedness Goal necessary to prevent, protect against, mitigate, respond to, and recover from all threats and hazards, to include acts of terrorism. Such consideration may include the anticipated effectiveness of the proposed use of the grant by the State or local unit of government in maintaining or sustaining existing capabilities. ; (I) by adding the following new paragraph after paragraph (): () the applicant s proposal to utilize the grant funding to fill capability gaps as identified in their State, regional, or local risk assessment processes, and their capability estimation processes. () By revising subsection (b) to read as follows: "(b) EMERGENCY MANAGEMENT ASSISTANCE COMPACT MEMBERSHIP. In support of the National Preparedness Goal, grantees (except American Samoa and the Commonwealth of the Northern Mariana Islands) must belong to or be located in member States

of the Emergency Management Assistance Compact (EMAC) within 0 days from the date of enactment of [xxx Act], and must ensure that the capabilities are shareable, through EMAC, outside of their community to support regional and National efforts. (n) by resdesignating section 0 ( U.S.C. 0) as section 0; (o) in section 0 as redesignated () in subsection (a) (A) by striking The Administrator and all that follows through through and inserting Grants awarded under section 0 may be used to build and sustain the core capabilities necessary to prevent, protect against, mitigate, respond to, and recover from all threats and hazards, to include acts of terrorism, consistent with a State homeland security plan and relevant local, tribal, regional, and whole community homeland security plans, through ; (B) in paragraph (), by striking Homeland Security Advisory System and inserting warning system required by section of the Homeland Security Act of 0 ( U.S.C. ) ; (C) by amending paragraph () to read as follows: () Sustaining, enhancing, and staffing with appropriately qualified personnel State and major urban area fusion centers that comply with the guidelines established under section A(i), and other applicable criteria set forth by the Secretary; : (D) by amending paragraph () to read as follows: () any activity permitted under the annual Program Guidance of the Department for the National Preparedness Grant Program; and ; () in subsection (b),

(A) by striking or 0 each place it appears; (B) by amending clause ()(B)(i) to read as follows: (i) IN GENERAL. Notwithstanding subparagraph (A), nothing in this paragraph shall prohibit the use of a grant awarded under section 0 to build and sustain core capabilities related to preventing, protecting against, mitigating, responding to, or recovering from all threats and hazards, to include acts of terrorism, including through the alteration or remodeling of existing buildings for the purpose of making such buildings secure against acts of terrorism. ; () by amending subsection (c) to read as follows: (c) MULTIPLE-PURPOSE FUNDS. Nothing in this subtitle shall be construed to prohibit State, local, or tribal governments from using grant funds under sections 0 in a manner that enhances preparedness for disasters unrelated to acts of terrorism, if such use assists such governments in building and sustaining core capabilities related to preventing, protecting against, mitigating, responding to, and recovering from all threats and hazards, to include acts of terrorism. ; () in subsection (d) (A) in paragraph (), by striking or 0 ; (B) by amending paragraph () to read as follows: () PERFORMANCE OF FEDERAL DUTY. An applicant for a grant under section 0 may petition the Administrator to use the funds from its grant under that section for the reimbursement of the cost of any activity relating to preventing, protecting against, mitigating, responding to, or recovering from all threats and hazards, to include acts of terrorism that is a Federal duty and usually performed by a Federal agency, and that is being performed by a State or local government under agreement with a Federal agency. ; () in subsections (e) and (f), by striking or 0 each place it appears; (p) in section ( U.S.C. ) () in subsection (a)

(A) In paragraph () (i) By striking prepare for, and natural disasters, acts of ; (ii) by inserting mitigate, after protect against, ; (iii) by inserting or recover from all threats and hazards, to include acts of after respond to ; (B) in paragraph () (i) by striking prepare for, and natural disasters, acts of ; (ii) by inserting mitigate, after protect against, ; (iii) by inserting or recover from all threats and hazards, to include acts of after respond to ; () in the heading for subsection (b), by inserting ADVISORY OR before PLANNING COMMITTEES ; () in paragraph (b)() (A) by striking or 0 and and 0 ; (B) by inserting senior advisory or before planning committee ; () subparagraph (b)() (A) by striking subparagraph (A), and inserting the following: (A) IN GENERAL. The planning committee, in order to promote collaboration and coordination with the maintenance and sustainment of existing capabilities and the development of new capabilities as prioritized in the State, tribal, regional, and local risk assessments and capability estimation processes, shall include representatives of significant stakeholders, including (i) officials from any affected local unit of government as defined in section 0; and (ii) emergency response providers, which shall include representatives of the fire service, law enforcement, intelligence and fusion centers, emergency medical response, and emergency managers. () by striking subsection (c);

() by redesignating subsection (d) as subsection (c); () in subsection (c), as redesignated, by striking It is the sense and all that follows through man-made disasters and inserting It is the sense of Congress that, in order to ensure that the Nation is most effectively able to prevent, protect against, mitigate, respond to, and recover from all threats and hazards, to include acts of terrorism ; and () in subsection (c) as redesignated, by adding paragraph () as follows: () that nothing in this Title shall be construed to diminish or supercede the authorities or role of the Department s various Components, as delineated by statute or as otherwise directed by the Secretary, to coordinate and collaborate with FEMA regarding the use of grant funds for defined purposes. ; and (q) in section ( U.S.C. ) () In subsection (a) (A) in subparagraph ()(C), by striking or 0 ; (B) by amending subparagraph ()(A) to read as follows: (A) IN GENERAL. Not less than once every years, the Administrator shall conduct, for each State and high-risk urban area, and directly eligible tribe or local unit of government as determined to be necessary by the Administrator, receiving a grant administered by the Department, a programmatic and financial review of all grants awarded by the Department to prevent, protect against, mitigate, respond to, or recover from all threats and hazards, to include acts of terrorism, excluding assistance provided under section, title IV, or title V of the Robert T. Stafford Disaster Relief and Emergency Assistance Act ( U.S.C., 0 et seq., and et seq.). (C) by striking paragraph ()(B) and inserting the following: (B) CONTENTS. Each review under subparagraph (A) shall use project based monitoring as the principal means of measuring project progress, following projects from creation to completion, providing

data to measure impact over time, improving accountability, and identifying progress made in preparedness, and determining current and future gaps and requirements. The review shall, at a minimum, examine (i) whether the funds awarded were used in accordance with the law, program guidance, and State or tribal homeland security plans or other applicable plans; and (ii) the extent to which funds awarded enhanced the ability of a grantee to prevent, protect against, mitigate, respond to, and recover from natural disasters, acts of terrorism, and other manmade disasters. (D) in subparagraph ()(C) (i) in clause (i), by striking the each of fiscal years 0, 0, and and inserting fiscal year ; (ii) in clause(ii), by striking and inserting ; (E) in paragraph () (i) by striking subparagraph (A) and inserting the following: (A) IN GENERAL. In order to ensure the effective and appropriate use of grants administered by the Department, the Inspector General of the Department each year shall conduct audits of a sample of States and high-risk urban areas that receive grants administered by the Department to prevent, protect against, mitigate, respond to, or recover from all threats and hazards, to include acts of terrorism, excluding assistance provided under section, title IV, or title V of the Robert T. Stafford Disaster Relief and Emergency Assistance Act ( U.S.C., 0 et seq., and et seq.). ; (ii) in subparagraph (C), by striking or 0 ; (iii) in subparagraph (D), by striking subclause (IV) and inserting the following: (IV) the extent to which funds awarded enhanced the ability of a grantee to prevent, protect against, mitigate, respond to, and recover from all threats and hazards, to include acts of terrorism. ; and

(iv) in subparagraph (H), by striking clauses (i) and (ii) and inserting such sums as are necessary for fiscal year, and each fiscal year thereafter." after "subparagraph (A)" (F) in paragraph () (i) by striking In order and all that follows through the Administrator shall and inserting In order to ensure that States and high risk urban areas, and directly eligible tribes or local units of government as determined to be necessary by the Administrator, are using grants administered by the Department appropriately to build and sustain core capabilities and fulfill preparedness requirements, the Administrator shall (ii) (iii) by redesignating subparagraph (D) as subparagraph (E); and by creating a new subparagraph (D) to read as follows: (D) ensure that each State and high-risk urban area, and directly eligible tribe or local unit of government as determined to be necessary by the Administrator, receiving a grant administered by the Department uses complete lifecycle planning of inventories and resources in order to plan and budget for equipment upgrades, develop and maintain skills through training and exercises, and update plans and procedures; and ; () in subsection (b) (A) in paragraph () (i) by striking or 0 each time it appears; and (ii) in subparagraph (A), by inserting, or local unit of government as determined to be necessary by the Administrator after eligible tribe ; and

(B) in paragraph (), by striking 0 and inserting 0 ; and () in subsection (c) (A) by amending paragraph () to read as follows: () NATIONAL PREPAREDNESS REPORT. In support of the National Preparedness Goal, the Administrator shall submit to the appropriate Committees of Congress annually the National Preparedness Report required under section (a) of the Post-Katrina Emergency Management Reform Act of 0 ( U.S.C. (a)). ; and (B) by amending subparagraph ()(C) to read as follows: (C) DEADLINE. For each fiscal year, the information required under subparagraph (A) shall be provided by the end of the fiscal year..

Introduction Federal investments in state, local, tribal, and territorial preparedness capabilities have contributed to the development of a significant national-level capacity to prevent, protect against, mitigate, respond to, and recover from threats and hazards. As we look ahead, to address evolving threats and make the most of limited resources, the National Preparedness Grant Program (NPGP) will focus on building and sustaining core capabilities across the five mission areas within the National Preparedness Goal (the Goal ) that are readily deployable and crossjurisdictional, contributing to nationwide preparedness. The Administration s FY Budget re-proposes the NPGP, originally presented in the FY and President s Budgets, to create a robust national preparedness capability, with some adjustments made to respond to broad stakeholder feedback solicited and received during previous years. In particular, the FY NPGP provides grantees and other stakeholders greater certainty regarding the sources and uses of available funding while maintaining the key priorities of the Administration s grants vision. Similar to the FY and FY NPGP, the FY proposal consolidates current state and local preparedness grant programs into one overarching program (excluding Emergency Management Performance Grants and fire grants) to enable grantees to build and sustain core capabilities outlined in the NPGP collaboratively. As a single, comprehensive grant program, the NPGP eliminates the redundancies and requirements placed on both the Federal Government and the grantees resulting from the current system of multiple individual, and often disconnected, grant programs. The FY NPGP prioritizes the development and sustainment of core capabilities as outlined in the Goal. Particular emphasis will be placed on building and sustaining capabilities that address high consequence events that pose the greatest risk to the security and resilience of the United States and can be utilized to address multiple threats and hazards. The NPGP continues to utilize a comprehensive process for assessing regional and national capability requirements through the Threat and Hazard Identification and Risk Assessment (THIRA) and capability estimation processes, prioritizing capability needs, and investing in critical national capabilities. The NPGP draws upon and strengthens existing grants processes, procedures, and structures, emphasizing the need for greater collaboration and unity among Federal, state, local, tribal, and territorial partners. This is particularly important as stakeholders work together to make smarter investment decisions, develop shared or deployable capabilities, and share resources through the Emergency Management Assistance Compact (EMAC), or other mutual aid/assistance agreements. In many ways, the NPGP structure mirrors the collaboration and decision making process that occurs during disasters, when various stakeholders and jurisdictions come together to plan, build, and execute capabilities together. NPGP grantees will be required to align their proposed investments to core capabilities, incorporate effectiveness measures, and regularly report progress made on the core capabilities. These measures will enable all levels of government to collectively demonstrate how the

proposed investment will build and sustain core capabilities necessary to strengthen the Nation s preparedness. Section by Section (keyed to the changes made to the Homeland Security Act) Section 0- DEFINITIONS The critical infrastructure sectors section has been updated to align with the Presidential Policy Directive on Critical Infrastructure Security and Resilience. A definition has been added for local unit of government which will cover non-state, non-territorial, and non-tribal entities, which received grants under the programs now being consolidated. Currently, port authorities, transit agencies, private sector, and non-profit organizations may be classified as private organizations or State organizations, which make them ineligible as a local designee, even though their activities are in support of local capabilities. The Administration recommends pursuing a change to the definition of a local unit of government in the / Act to include all port areas, transit agencies, and non-profit organizations so that any local entity that is building capability in a local jurisdiction will be considered as part of the 0 percent pass-through to local units of government. Under the National Security Grant Program (NPGP), the State Administrative Agency is the primary applicant, and adding this definition will enable the State to pass funds through to these local entities. Section 0 EFFECTS ON OTHER GRANT PROGRAMS Section 0 currently contains a list of grant programs that are unaffected by the Homeland Security Grant Program (now NPGP). The proposed edits to this section delete several grant programs from the list, as FEMA seeks to have the NPGP funded in lieu of those programs. Note: The proposed language changes the title for section 0. Section 0 NATIONAL PREPAREDNESS GRANT PROGRAM The language of existing sections 0 (Urban Areas Security Initiative) and 0 (State Homeland Security Grant Program) have been deleted. A new section 0 sets out the proposed NPGP. This new section 0 re-uses many provisions from the original sections 0 and 0, and adds new language. New section 0(a) establishes the NPGP and sets out its purpose. Section 0(b) provides for an application process whereby the State is the sole applicant for NPGP awards,

with all local units of government to submit projects or proposals through the State. Grantees will submit one coordinated statewide application to include urban areas, ports and transit systems. (Eligible tribes, addressed in section 0, may submit applications directly to FEMA.) Mandatory engagement and concurrence from urban areas, and port and transit authorities in state-generated THIRAs and investment justifications will be required. The FY NPGP will allow for transit agencies, ports, and urban areas projects to be reviewed, approved and included in the state application. Section 0(c) borrows from the existing law, providing a mechanism for the assessment and designation of high risk urban areas. Section 0(d) also borrows from existing law, retaining a scheme for State distribution of awards to local units of government, which includes a requirement that the State pass at least 0 percent of the grant award local units of government. Section 0(e) is an authorization for appropriations. Section 0- GRANTS TO DIRECTLY ELIGIBLE TRIBES Minor edits in this section do not impact the current eligibility of grants to directly eligible tribes. NPGP does not seek to eliminate grants to eligible tribal nations. Note: The proposed language redesignates existing section 0 as section 0. Section 0 OFFICE FOR STATE AND LOCAL LAW ENFORCEMENT This section previously required grantees to expend percent of their grant funding on law enforcement terrorism prevention activities. The NPGP proposal continues to support law enforcement terrorism prevention activities, while recognizing that state and national capability gaps related to this may vary. Maintenance and sustainment of core law enforcement prevention capabilities including fusion centers, countering violent extremism, and state and local information sharing remain key priorities. In addition, eligible law enforcement activities previously funded under other grants, such as Operation Stonegarden and port/transit operations, will continue to be funded based on priorities outlined in the state and urban area homeland security plans. The Office for State and Local Law Enforcement is not affected. Note: The proposed language redesignates existing section 0 as section 0 and changes the section title. Section 0 PRIORITIZATION This section establishes factors to be considered when allocating funding. NPGP will consider the impact of addressing capability gaps in order to ensure that grant funding is maximizing the impact on national preparedness. Sustainment funding for states and urban areas will include threat, vulnerability, and consequence factors, as well as the presence of fusion centers, border security threats, and other known Federal priorities. Competitive funding for states, tribes, and urban areas will be based on regional capability gaps and requirements as identified in the FEMA regional THIRAs and capability estimation processes. Regional capability gaps and requirements will be published in the funding opportunity announcement

(FOA) by FEMA region, and competitive applications will only be accepted for those regional priorities. Another important aspect of NPGP is the requirement for all grant-funded assets to be nationally deployable; therefore, it is essential that all grant recipients are a member of the Emergency Management Assistance Compact (EMAC). EMAC offers assistance during governor-declared states of emergency through a responsive, straightforward system that allows states to send personnel, equipment, and commodities to help other states. Note: The proposed language redesignates existing section 0 as section 0. Section 0 USE OF FUNDS Minor edits in this section are made in order for the language to be consistent with the current National Preparedness Goal. Note: The proposed language redesignates existing section 0 as section 0. Section - ADMINISTRATION AND COORDINATION Minor edits in this section are made in order for the language to be consistent with the current National Preparedness Goal. The section entitled Interagency Coordination was struck because the coordination activities terminated months after the passage of the Implementing the Recommendations of the / Commission Act. Section - ACCOUNTABILITY Minor edits in this section are made in order for the language to be consistent with the current National Preparedness Goal. The deadline for the submission of the risk assessment report is updated to be more realistic. The risk assessment process cannot be finalized until after the annual appropriations bill is approved. Since this typically occurs later in the fiscal year, the current deadline of October is unrealistic. Consistent with the recommendations made in the REEPP report, FEMA will use project-based monitoring as the principal means of measuring project progress. Project-based monitoring is a method of following projects from creation to completion, providing basic data to measure impact over time, improving accountability, and enabling FEMA to identify progress made in preparedness and determine current and future gaps. The FY NPGP will encourage the use of complete lifecycle planning of inventories and resources. This will allow grantees to plan and budget for equipment upgrades, develop and maintain skills through training and exercises, and update plans and procedures to enable delivery of core capabilities across the prevention, protection, mitigation, response, and recovery mission areas.

Line-in/Line-out Proposed Change to Existing Law: TITLE XX HOMELAND SECURITY NATIONAL PREPAREDNESS GRANTS SEC. 0. DEFINITIONS. In this title, the following definitions shall apply: () ADMINISTRATOR. The term Administrator means the Administrator of the Federal Emergency Management Agency. () APPROPRIATE COMMITTEES OF CONGRESS. The term appropriate committees of Congress means (A) the Committee on Homeland Security and Governmental Affairs of the Senate; and (B) those committees of the House of Representatives that the Speaker of the House of Representatives determines appropriate. () CRITICAL INFRASTRUCTURE SECTORS. The term critical infrastructure sectors means the following sectors, in both urban and rural areas: (A) Chemical (B) Commercial Facilities (C) Communications (D) Critical Manufacturing (E) Dams (F) Defense Industrial Base (G) Emergency Services (H) Energy (I) Financial Services (J) Food and Agriculture (K) Government Facilities (L) Healthcare and Public Health (M) Information Technology (N) Nuclear Reactors, Materials and Waste (O) Transportation Systems (P) Water and Wastewater Systems (A) Agriculture and food. (B) Banking and finance (C) Chemical industries. (D) Commercial facilities. (E) Commercial nuclear reactors, materials, and waste. (F) Dams.

(G) The defense industrial base. (H) Emergency services. (I) Energy. (J) Government facilities. (K) Information technology. (L) National monuments and icons. (M) Postal and shipping. (N) Public health and health care. (O) Telecommunications. (P) Transportation systems. (Q) Water. () DIRECTLY ELIGIBLE TRIBE. The term directly eligible tribe means (A) any Indian tribe (i) that is located in the continental United States; (ii) that operates a law enforcement or emergency response agency with the capacity to respond to calls for law enforcement or emergency services; (iii) (I) that is located on or near an international border or a coastline bordering an ocean (including the Gulf of Mexico) or international waters; (II) that is located within miles of a system or asset included on the prioritized critical infrastructure list established under section E(a)() or has such a system or asset within its territory; (III) that is located within or contiguous to of the 0 most populous metropolitan statistical areas in the United States; or (IV) the jurisdiction of which includes not less than,000 square miles of Indian country, as that term is defined in section of title, United States Code; and (iv) that certifies to the Secretary that a State has not provided funds under section 0 or 0 to the Indian tribe or consortium of Indian tribes for the purpose for which direct funding is sought; and (B) a consortium of Indian tribes, if each tribe satisfies the requirements of subparagraph (A). () ELIGIBLE METROPOLITAN AREA. The term eligible metropolitan area means any of the 0 most populous metropolitan statistical areas in the United States. () HIGH-RISK URBAN AREA. The term high-risk urban area means a high-risk urban area designated under section 0(b)()(A).

() INDIAN TRIBE. The term Indian tribe has the meaning given that term in section (e) of the Indian Self-Determination Act ( U.S.C. 0b(e)). () LOCAL UNIT OF GOVERNMENT- For the purposes of this title, the term local unit of government means: a local government as defined at U.S.C. ; a high risk urban area as identified pursuant to section 0 of this title; a recipient eligible to receive grants under U.S.C. 0; a recipient eligible to receive grants under U.S.C. ; a recipient eligible to receive grants under subtitles A, B, and C of Title XV of the Implementing Recommendations of the / Commission Act of 0; and organizations (as described under section 0(c)() of the Internal Revenue Code of and exempt from tax section 0(a) of such code) determined by the Secretary to be at high risk of a terrorist attack; () METROPOLITAN STATISTICAL AREA. The term metropolitan statistical area means a metropolitan statistical area, as defined by the Office of Management and Budget. () NATIONAL SPECIAL SECURITY EVENT. The term National Special Security Event means a designated event that, by virtue of its political, economic, social, or religious significance, may be the target of terrorism or other criminal activity. () POPULATION. The term population means population according to the most recent United States census population estimates available at the start of the relevant fiscal year. () POPULATION DENSITY. The term population density means population divided by land area in square miles. () QUALIFIED INTELLIGENCE ANALYST. The term qualified intelligence analyst means an intelligence analyst (as that term is defined in section A(j)), including law enforcement and homeland security personnel (A) who has successfully completed training to ensure baseline proficiency in intelligence analysis and production, as determined by the Secretary, which may include training using a curriculum developed under section ; or (B) whose experience ensures baseline proficiency in intelligence analysis and production equivalent to the training required under subparagraph (A), as determined by the Secretary. () TARGET CORE CAPABILITIES. The term target core capabilities means distinct critical elements necessary to achieve the National Preparedness Goal.means the target core capabilities for Federal, State, local, and tribal, and whole community government preparedness as described in the National Preparedness Goal. for which guidelines are required to be established under section (a) of the Post- Katrina Emergency Management Reform Act of 0 ( U.S.C. (a)). () TRIBAL GOVERNMENT. The term tribal government means the government of an Indian tribe. Subtitle A Grants to States and Eligible Tribesand High- Risk Urban Areas

SEC. 0. HOMELAND SECURITY EFFECTS ON OTHER GRANT PROGRAMS. (a) GRANTS AUTHORIZED. The Secretary, through the Administrator, may award grants under sections 0 and 0 to State, local, and tribal governments. (b) PROGRAMS NOT AFFECTED. This subtitle shall not be construed to affect any of the following Federal programs: () Firefighter and other assistance programs authorized under the Federal Fire Prevention and Control Act of ( U.S.C. et seq.). () Grants authorized under the Robert T. Stafford Disaster Relief and Emergency Assistance Act ( U.S.C. et seq.). () Emergency Management Performance Grants under the amendments made by title II of the Implementing Recommendations of the / Commission Act of 0. () Grants to protect critical infrastructure, including port security grants authorized under section 0 of title, United States Code, and the grants authorized under title XIV and XV of the Implementing Recommendations of the / Commission Act of 0 and the amendments made by such titles. () The Metropolitan Medical Response System authorized under section of the Post- Katrina Emergency Management Reform Act of 0 ( U.S.C. ). () The Interoperable Emergency Communications Grant Program authorized under title XVIII. () Grant programs other than those administered by the Department. (c) RELATIONSHIP TO OTHER LAWS. () IN GENERAL. The grant programs authorized under sections 0 and 0 shall supersede all grant programs authorized under section of the USA PATRIOT Act ( U.S.C. ). () ALLOCATION. For grants made for fiscal year and thereafter, Tthe allocation of grants authorized under section 0 or 0 shall be governed by the terms of this subtitle and not by any other provision of law. SEC. 0. URBAN AREA SECURITY INITIATIVE. (a) ESTABLISHMENT. There is established an Urban Area Security Initiative to provide grants to assist high-risk urban areas in preventing, preparing for, protecting against, and responding to acts of terrorism. (b) ASSESSMENT AND DESIGNATION OF HIGH-RISK URBAN AREAS. () IN GENERAL. The Administrator shall designate high risk urban areas to receive grants under this section based on procedures under this subsection.

() INITIAL ASSESSMENT. (A) IN GENERAL. For each fiscal year, the Administrator shall conduct an initial assessment of the relative threat, vulnerability, and consequences from acts of terrorism faced by each eligible metropolitan area, including consideration of (i) the factors set forth in subparagraphs (A) through (H) and (K) of section 0(a)(); and (ii) information and materials submitted under subparagraph (B). (B) SUBMISSION OF INFORMATION BY ELIGIBLE METROPOLITAN AREAS. Prior to conducting each initial assessment under subparagraph (A), the Administrator shall provide each eligible metropolitan area with, and shall notify each eligible metropolitan area of, the opportunity to (i) submit information that the eligible metropolitan area believes to be relevant to the determination of the threat, vulnerability, and consequences it faces from acts of terrorism; and (ii) review the risk assessment conducted by the Department of that eligible metropolitan area, including the bases for the assessment by the Department of the threat, vulnerability, and consequences from acts of terrorism faced by that eligible metropolitan area, and remedy erroneous or incomplete information. () DESIGNATION OF HIGH-RISK URBAN AREAS. (A) DESIGNATION. (i) IN GENERAL. For each fiscal year, after conducting the initial assessment under paragraph (), and based on that assessment, the Administrator shall designate high-risk urban areas that may submit applications for grants under this section. (ii) ADDITIONAL AREAS. Notwithstanding paragraph (), the Administrator may (I) in any case where an eligible metropolitan area consists of more than metropolitan division (as that term is defined by the Office of Management and Budget) designate more than high risk urban area within a single eligible metropolitan area; and (II) designate an area that is not an eligible metropolitan area as a highrisk urban area based on the assessment by the Administrator of the relative threat, vulnerability, and consequences from acts of terrorism faced by the area.

(iii) RULE OF CONSTRUCTION. Nothing in this subsection may be construed to require the Administrator to (I) designate all eligible metropolitan areas that submit information to the Administrator under paragraph ()(B)(i) as high-risk urban areas; or (II) designate all areas within an eligible metropolitan area as part of the high-risk urban area. (B) JURISDICTIONS INCLUDED IN HIGH-RISK URBAN AREAS. (i) IN GENERAL. In designating high-risk urban areas under subparagraph (A), the Administrator shall determine which jurisdictions, at a minimum, shall be included in each high-risk urban area. (ii) ADDITIONAL JURISDICTIONS. A high-risk urban area designated by the Administrator may, in consultation with the State or States in which such high-risk urban area is located, add additional jurisdictions to the high-risk urban area. (c) APPLICATION. () IN GENERAL. An area designated as a high-risk urban area under subsection (b) may apply for a grant under this section. () MINIMUM CONTENTS OF APPLICATION. In an application for a grant under this section, a high-risk urban area shall submit (A) a plan describing the proposed division of responsibilities and distribution of funding among the local and tribal governments in the high-risk urban area; (B) the name of an individual to serve as a high risk urban area liaison with the Department and among the various jurisdictions in the high-risk urban area; and (C) such information in support of the application as the Administrator may reasonably require. () ANNUAL APPLICATIONS. Applicants for grants under this section shall apply or reapply on an annual basis. () STATE REVIEW AND TRANSMISSION. (A) IN GENERAL. To ensure consistency with State homeland security plans, a highrisk urban area applying for a grant under this section shall submit its application to each State within which any part of that high-risk urban area is located for review before submission of such application to the Department.

(B) DEADLINE. Not later than days after receiving an application from a highrisk urban area under subparagraph (A), a State shall transmit the application to the Department. (C) OPPORTUNITY FOR STATE COMMENT. If the Governor of a State determines that an application of a high risk urban area is inconsistent with the State homeland security plan of that State, or otherwise does not support the application, the Governor shall (i) notify the Administrator, in writing, of that fact; and (ii) provide an explanation of the reason for not supporting the application at the time of transmission of the application. () OPPORTUNITY TO AMEND. In considering applications for grants under this section, the Administrator shall provide applicants with a reasonable opportunity to correct defects in the application, if any, before making final awards. (d) DISTRIBUTION OF AWARDS. () IN GENERAL. If the Administrator approves the application of a high-risk urban area for a grant under this section, the Administrator shall distribute the grant funds to the State or States in which that high-risk urban area is located. () STATE DISTRIBUTION OF FUNDS. (A) IN GENERAL. Not later than days after the date that a State receives grant funds under paragraph (), that State shall provide the high-risk urban area awarded that grant not less than 0 percent of the grant funds. Any funds retained by a State shall be expended on items, services, or activities that benefit the high-risk urban area. (B) FUNDS RETAINED. A State shall provide each relevant high-risk urban area with an accounting of the items, services, or activities on which any funds retained by the State under subparagraph (A) were expended. () INTERSTATE URBAN AREAS. If parts of a high-risk urban area awarded a grant under this section are located in or more States, the Administrator shall distribute to each such State (A) a portion of the grant funds in accordance with the proposed distribution set forth in the application; or (B) if no agreement on distribution has been reached, a portion of the grant funds determined by the Administrator to be appropriate. () CERTIFICATIONS REGARDING DISTRIBUTION OF GRANT FUNDS TO HIGH- RISK URBAN AREAS. A State that receives grant funds under paragraph () shall certify to the Administrator that the State has made available to the applicable high-risk urban area the required funds under paragraph ().