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Ports Federal Program The FY 2005 DHS Appropriations Act provides funds for a competitive grant program to address physical security enhancements for critical national seaports. A priority for the Port Security Grant Program (PSGP) in FY 2005 is risk-based distribution of funding. As part of this focus on risk, the FY 2005 PSGP will direct the available funds to the Nation's highest risk ports, thereby ensuring federally regulated ports, terminals and U.S. inspected passenger vessels receiving the funds represent assets of the highest strategic importance nationally. To identify the most at-risk seaports, G&T worked with the United States Coast Guard and DHS Infrastructure Directorate, Risk Management Division (RMD) to develop the following risk formula: Risk = Consequence X Vulnerability X Threat The elements of each risk factor included: · Consequence - people, economic, national security, port-specific special considerations (hazardous materials, oil); · Vulnerability - distance from open water, number of port calls, presence of tankers; and, . Threat - credible threats and incidents (intelligence community, USCG, less credible threats and incidents (operational indicators), vessels of interest. The Nation's 129 largest volume ports were evaluated using this formula. Based on this risk-based evaluation, 11 port areas have been identified for inclusion in the FY 2005 PSG Program. State Program Subsequent to the DHS announcement of grant funding on May 31, 2006 the Governor's Office of Homeland Security mav make funding available to Port Authorities statewide from it's FY 06 HSGP grant award. The use of these additional funds will be restricted to Physical Security Enhancement Equipment, CBRNE Logistical Support Equipment, Terrorism Incident Prevention Equipment, Interoperable Communications Equipment, Detection Equipment, Personal Protective Equipment and Training. FY06 Homeland Security Grant Program Page 22