[Senate Report 111-73]
[From the U.S. Government Publishing Office]
111th Congress
1st Session SENATE Report
111-73
_______________________________________________________________________
Calendar No. 157
MARITIME ADMINISTRATION AUTHORIZATION ACT OF 2010
__________
R E P O R T
OF THE
COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
on
S. 1308
September 9, 2009.--Ordered to be printed
SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
one hundred eleventh congress
first session
JOHN D. ROCKEFELLER IV, West Virginia, Chairman
DANIEL K. INOUYE, Hawaii KAY BAILEY HUTCHISON, Texas
JOHN F. KERRY, Massachusetts OLYMPIA J. SNOWE, Maine
BYRON L. DORGAN, North Dakota JOHN ENSIGN, Nevada
BARBARA BOXER, California JIM DeMINT, South Carolina
BILL NELSON, Florida JOHN THUNE, South Dakota
MARIA CANTWELL, Washington ROGER F. WICKER, Mississippi
FRANK R. LAUTENBERG, New Jersey JOHNNY ISAKSON, Georgia
MARK PRYOR, Arkansas DAVID VITTER, Louisiana
CLAIRE McCASKILL, Missouri SAM BROWNBACK, Kansas
AMY KLOBUCHAR, Minnesota MEL MARTINEZ, Florida
TOM UDALL, Colorado MIKE JOHANNS, Nebraska
MARK WARNER, Virginia
MARK BEGICH, Alaska
Ellen Doneski, Chief of Staff
James Reid, Deputy Chief of Staff
Bruce Andrews, General Counsel
Ann Begeman, Republican Staff Director
Brian Hendricks, Republican Chief Counsel
Todd Bertoson, Republican Senior Counsel
Calendar No. 157
111th Congress Report
SENATE
1st Session 111-73
======================================================================
MARITIME ADMINISTRATION AUTHORIZATION ACT OF 2010
_______
September 9, 2009.--Ordered to be printed
_______
Mr. Rockefeller, from the Committee on Commerce, Science, and
Transportation, submitted the following
REPORT
[To accompany S. 1308]
The Committee on Commerce, Science, and Transportation, to
which was referred the bill (S. 1308) to reauthorize the
Maritime Administration, and for other purposes, having
considered the same, reports favorably thereon with an
amendment (in the nature of a substitute) and recommends that
the bill (as amended) do pass.
Purpose of the Bill
This legislation is the annual authorization act for the
Maritime Administration (MARAD) within the Department of
Transportation (DOT). The bill would authorize funds for fiscal
year (FY) 2010 and amend laws governing the activities of the
MARAD. The bill would improve the operations and fiscal
controls at the U.S. Merchant Marine Academy (USMMA), authorize
and strengthen the Port Infrastructure Development program,
provide grant authority for Short Sea Transportation
development projects, and authorize the Marine View (MARVIEW)
information technology system.
Background and Needs
The MARAD was authorized through FY 2009 in the Duncan Hunter
National Defense Authorization Act for Fiscal Year 2009 (P.L.
110-417). The MARAD administers U.S. merchant marine support
programs within the DOT, including the Maritime Security
Program (MSP); the Title XI guaranteed loan program; various
cargo preference programs; the Small Shipyard Assistance
program; the Short Sea Transportation Program; the maintenance
of the Ready Reserve Force (RRF) and the National Defense
Reserve Fleet (NDRF); and operation of the USMMA at Kings
Point, New York.
Summary of Provisions
The legislation would provide the USMMA permanent authority
to hire adjunct professors, authority to liquidate unused leave
of non-appropriated fund instrumentality employees who were
terminated or converted in the transition to civil service in
FY 2009, limit fees that can be imposed on midshipmen at the
USMMA, and require MARAD to develop a separate and distinct
accounting of such fees in the Operations and Training account
to establish greater financial accountability. The DOT
Secretary would be authorized to establish a Short Sea
Transportation Grant Program to assist in the development of
Short Sea Transportation projects and along marine
transportation corridors designated by the Secretary.
Additionally, the bill would authorize the establishment of a
Port Infrastructure Development Program to allow the MARAD to
provide technical and other assistance to modernize port
facilities and generate greater efficiencies in the movement of
freight. Such assistance would be provided at the request of
State, regional, or other municipal partners. This bill would
provide the MARAD authority to enter into cooperative
agreements. Lastly, the legislation would limit the
administrative expenses for Maritime Administration grant
programs to no more than three percent unless otherwise
stipulated by law.
Legislative History
S. 1308 was introduced by Senator Lautenberg and is
cosponsored by Senator Rockefeller, Senator Hutchison, Senator
Thune, and Senator Wicker. An amendment was offered by Senator
Begich to authorize and expand the MARVIEW System. The Senate
Committee on Commerce, Science, and Transportation reported the
bill favorably as amended on July 8, 2009. The staff members
assigned to this legislation are: Dabney Hegg, Democratic
Senior Professional Staff; and Todd Bertoson, Senior Republican
Counsel.
Estimated Costs
In accordance with paragraph 11(a) of rule XXVI of the
Standing Rules of the Senate and section 403 of the
Congressional Budget Act of 1974, the Committee provides the
following cost estimate, prepared by the Congressional Budget
Office:
August 25, 2009.
Hon. John D. Rockefeller IV,
Chairman, Committee on Commerce, Science, and Transportation,
U.S. Senate, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for S. 1308, the Maritime
Administration Act of 2010.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Deborah Reis.
Sincerely,
Douglas W. Elmendorf.
Enclosure.
S. 1308--Maritime Administration Act of 2010
Summary: S. 1308 would amend various laws governing the
activities of the Maritime Administration (MARAD) and would
authorize appropriations for that agency, mostly for fiscal
year 2010. Assuming appropriation of the amounts specifically
authorized and estimated to be necessary, CBO estimates that
implementing S. 1308 would result in outlays of $223 million
over the 2010-2014 period. Additional amounts could be spent
for the port development program authorized by section 8 of S.
1308, but such spending could occur in the absence of this
legislation and also would be subject to future appropriation
action.
Enacting S. 1308 also would increase direct spending by
allowing MARAD to spend, without further appropriation, amounts
credited as interest earnings on any unspent balances in a
proposed fund for port development projects and by authorizing
the agency to pay certain former employees for accrued leave.
We estimate that direct spending under the bill would total
$190 million over the 2010-2019 period. Enacting the bill would
not affect revenues.
The bill contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act (UMRA)
and would impose no costs on state, local, or tribal
governments.
Estimated cost to the Federal Government: The estimated
budgetary impact of S. 1308 is shown in the following table.
The costs of this legislation fall within budget function 400
(transportation).
----------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
------------------------------------------------------------------
2010 2011 2012 2013 2014 2010-2014 2010-2019
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CHANGES IN SPENDING SUBJECT TO APPROPRIATION
MARAD Activities:
Authorization Level...................... 178 10 10 10 0 208 208
Estimated Outlays........................ 145 29 22 10 2 208 208
Short Sea Transportation Grants:
Estimated Authorization Level............ 15 0 0 0 0 15 15
Estimated Outlays........................ 5 5 5 0 0 15 15
Total Changes:
Estimated Authorization Level............ 193 10 10 10 0 223 223
Estimated Outlays........................ 150 34 27 10 2 223 223
CHANGES IN DIRECT SPENDINGa
Estimated Budget Authority................... 20 20 20 20 20 100 200
Estimated Outlays............................ 10 20 20 20 20 90 190
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aCBO estimates that direct spending under S. 1308 would be $20 million a year over the 2015-2019 period.
Basis of estimate: For this estimate, CBO assumes that S.
1308 will be enacted near the end of fiscal year 2009 and that
the amounts newly authorized by the bill will be appropriated
for each year. Estimated budget authority for provisions that
may affect direct spending is based on information provided by
MARAD. Estimated outlays are based on historical spending
patterns for MARAD activities.
SPENDING SUBJECT TO APPROPRIATION
Maritime Operations and Grants. CBO estimates that
implementing S. 1308 would increase discretionary spending by
$223 million over the 2010-2014 period, including $153 million
for MARAD operations, $15 million for the agency's program to
dispose of obsolete vessels in the National Defense Reserve
Fleet (both specifically authorized for fiscal year 2010), $10
million specifically authorized for each of fiscal years 2010
through 2013 for MARAD's Internet programs, and an estimated
$15 million for 2010 for grants to states and other entities to
encourage the use of short-distance shipping by sea (short sea
transportation grants).
S. 1308 also would authorize appropriations for other MARAD
programs, including $174 million for subsidies to U.S. flag
vessels under the maritime security program, $19.5 million for
reimbursements to vessel owners for repairs made in U.S.
shipyards, and $36 million for the cost of making maritime loan
guarantees. Those amounts are not shown in the table, however,
because they are already authorized under current law.
Port Infrastructure Development. Section 8 of the bill
would direct MARAD to create a program to develop and improve
port facilities. Under this section, MARAD would act as the
lead entity for port development projects nationwide and would
coordinate activities among participants, including ports,
states, businesses, and the many federal agencies that are
typically involved in such projects (such as the U.S. Army
Corps of Engineers).
Section 8 also would establish a Port Infrastructure
Development Fund (PIDF) to be available to MARAD to administer
and finance port development projects. The PIDF would receive
amounts appropriated to MARAD (or other federal agencies and
transferred to MARAD), contributions from nonfederal partners
such as local port authorities, and (as discussed below under
Direct Spending) interest credited on unspent balances in the
fund.
The effect of section 8 on discretionary spending is
uncertain, largely because funding for port development
projects can occur even in the absence of this legislation. The
federal government already finances many projects at U.S. ports
through MARAD and other agencies within the Departments of
Transportation (DOT), Homeland Security, and Defense. Several
of those projects (most notably, those in Hawaii, Alaska, and
Guam) are being managed by MARAD in much the same manner as
authorized in section 8. The cost of such projects varies
widely from as little as a few million at smaller facilities to
over $500 million at larger ports. The federal share of those
costs also varies widely, from less than 10 percent to over 50
percent.
Based on information provided by states, port authorities,
and MARAD, we expect that U.S. ports will spend between $5
billion and $10 billion over the next 10 years to improve and
develop their facilities. We expect that some portion of this
spending would be financed by the federal government, but any
such financing could also be provided in the absence of this
legislation. Therefore, CBO has not attributed any additional
discretionary costs to the provisions in section 8.
DIRECT SPENDING
Two provisions of S. 1308 could increase direct spending.
Section 8 would allow MARAD to spend amounts credited as
interest on unspent balances in the PIDF. CBO expects that
transfers into the PIDF would begin early in fiscal year 2010
and would include over $600 million from amounts previously
appropriated for specific port development projects (for
example, the Anchorage initiative), from transfers of related
federal funds (for example, DOT grants for intermodal
projects), or from deposits of reprogrammed funds (such as
emergency appropriations to certain states such as
Mississippi). We estimate that interest credited on those
amounts and other appropriations or cost-sharing contributions
to the PIDF would increase direct spending by $190 million over
the 2010-2019 period. We expect that MARAD would use those
amounts to fund smaller projects at U.S. ports.
Section 4 would allow MARAD to use balances of previously
appropriated funds to make lump-sum payments to former
employees of the U.S. Merchant Marine Academy for unused annual
leave. Because this amount would not have been spent under
current law, CBO estimates that this provision would increase
direct spending by about $200,000 in fiscal year 2010.
Intergovernmental and private-sector impact: S. 1308
contains no intergovernmental or private-sector mandates as
defined in UMRA. The bill would authorize grants to states for
marine transportation infrastructure and relative initiatives.
Any costs to state, local, or tribal governments would result
from complying with conditions of assistance.
Previous CBO estimate: On June 22, 2009, CBO transmitted a
cost estimate for H.R. 2647, the National Defense Authorization
for Fiscal Year 2010, as ordered reported by the House
Committee on Armed Services on June 18, 2009. H.R. 2647 would
authorize funding for MARAD operations and ship disposal at the
same level as under S. 1308 but would not authorize
appropriations for short sea transportation grants or for
MARAD's Internet program. The House legislation also would
allow the agency to pay accrued leave to certain former
employees, as would S. 1308. Other provisions of the two
versions of the legislation are different, however, as
reflected in the CBO cost estimates.
Estimate prepared by: Federal Costs: Deborah Reis; Impact
on State, Local, and Tribal Governments: Ryan Miller; Impact on
the Private Sector: Patrice Gordon.
Estimate approved by:Theresa Gullo,Deputy Assistant
Director for Budget Analysis.
Regulatory Impact Statement
S. 1308 would require the development of grant guidelines for
the Short Sea Transportation Grand Program to be administered
by the Office of Intermodal System Development. The legislation
would not require additional reporting requirements. The
legislation would have no further effect on the number or types
of individuals and businesses regulated, the economic impact of
such regulation, the personal privacy of affected individuals,
or the paperwork required from such individuals and businesses.
Congressionally Directed Spending
In compliance with paragraph 4(b) of rule XLIV of the
Standing Rules of the Senate, the Committee provides that no
provisions contained in the bill, as reported, meet the
definition of congressionally directed spending items under the
rule.
Section-by-Section Analysis
Section 1. Short Title.
Section 1 would provide that the legislation may be cited as
the ``Maritime Administration Authorization Act for Fiscal Year
2010''.
Section 2. Cooperative Agreements, Grant Administrative Expenses, and
Contracting Authority.
Section 2 would clarify that the MARAD has the authority to
enter into cooperative agreements. The MARAD has been entering
into agreements that are encompassed within the broad
contracting authority of 49 U.S.C. Sec. 109. Section 2 would
clarify this legal issue.
This section would also include a paragraph that would
address funding for administrative expenses associated with
grant programs administered by the MARAD. This would allow the
MARAD to use no more than three percent of any grant funds to
offset such administrative expenses, unless another number is
specifically set by statute.
This section would also correct an inadvertent change
resulting from recent codification of 46 U.S.C. App., which
limited the use of this contracting authority to duties and
activities carried out by the Secretary under 49 U.S.C.
Sec. 109 and Chapter V of Title 46. Section 2 would also
clarify the statutory contracting authority of the MARAD set
forth in 49 U.S.C. Sec. 109 which applies to all of the MARAD's
programs.
Section 3. Maritime Administration Use of Funding for Maritime Heritage
Property of the Department of Transportation.
Section 3 would allow the MARAD to use proceeds from the sale
of National Defense Reserve Fleet (NDRF) vessels under the
maritime heritage program for the purpose of preserving the
historic maritime property of the MARAD.
The National Maritime Heritage Act allows the use of funds
from the sale of scrapping of obsolete vessels. Fifty percent
of such funds shall be available to the Maritime Administration
for the acquisition, maintenance, repair, reconditioning, or
improvement of NDRF vessels; twenty-five percent shall be
available to the MARAD for payment or reimbursement of expenses
incurred by or on behalf of the State maritime academies or the
U.S. Merchant Marine Academy for facility and training ship
maintenance, repair and modernization, and for the purchase of
simulators and fuel. The remaining twenty-five percent shall be
available to the Secretary of Interior to carry out a maritime
heritage program.
The MARAD has maritime heritage property for which funding is
needed for historic preservation. This section would grant the
Secretary of Interior the authority to preserve the historic
maritime property of the MARAD with a portion of the remaining
twenty-five percent of the funds available.
Section 4. Liquidation of Unused Leave Balance at the U.S. Merchant
Marine Academy.
Section 4 would authorize the use of appropriated funds to
pay the unpaid annual leave balances of former non-appropriated
fund instrumentality employees at the U.S. Merchant Marine
Academy who were terminated or converted to the civil service
during FY 2009.
Section 5. Permanent Authority to Hire Adjunct Professors at the U.S.
Merchant Marine Academy.
Section 5 would make permanent the authority established in
Section 3506 of P.L. 110-417, the Duncan Hunter National
Defense Authorization Act for Fiscal Year 2009, to hire adjunct
professors at the U.S. Merchant Marine Academy.
Section 6. Use of Midshipman Fees.
Section 6 would authorize the MARAD to credit midshipman fees
to a separate account within its Operations and Training
appropriations to achieve greater accountability and financial
management. The funds would remain available until expended,
for those expenses directly related to the purposes of the
fees. Fees collected in excess of actual expenses may be
returned to the midshipman through a mechanism approved by the
Maritime Administrator. The MARAD would be directed to maintain
a separate and detailed accounting of fee revenue and all
associated expenses.
Section 7. Construction of Vessels in the United States.
Section 7 would make a technical correction to section
50101(a) of title 46, U.S.C. regarding vessel construction that
was the result of the recent codification of title 46. The
provisions contained in the codification no longer contain the
reference to the need and policy for having a merchant marine
constructed in the United States. Promoting vessel construction
in the United States is an important component of the Merchant
Marine Act, 1936. The recent codification of title 46 was not
intended to make any substantive changes.
Section 8. Authorization to Establish a Port Infrastructure Development
Program.
Section 8 would establish a Port Infrastructure Development
Program. This section would allow the MARAD to assist States,
territories, municipalities, and port facilities, at their
request, with the management and federal coordination of their
port infrastructure development projects.
America's ports are the critical link between other modes of
transportation and in the movement of freight. Port authorities
are working to meet a projected demand for additional capacity,
and maintain and modernize their aging infrastructure. The
MARAD has been successful in assisting ports with
infrastructure projects as the lead federal agency overseeing
redevelopment and expansion projects. In this role, they have
coordinated with other federal agencies to expedite the Port
development environmental review process, speed construction
activities, and reduce overall costs.
Section 9. Authorization to Convey Obsolete Vessels to Foreign
Countries.
Section 9 would place into title 46 the Maritime
Administration's existing authority to convey obsolete vessels
to foreign countries. This is consistent with the MARAD's
authority as set out in P.L. 108-136.
Section 10. Student Incentive Payment Agreements.
Section 10 would strike the requirement that the MARAD pay
student incentive payments at the beginning of the school year.
The funding allocation for student incentive payments is
inconsistent with the timing of federal appropriations. This
change is necessary to appropriately align the execution of
Student Incentive Payments to the federal fiscal year.
Section 11. United States Merchant Marine Academy Graduate Program
Receipt, Disbursement, and Accounting for Non-Appropriated
Funds.
Section 11 would allow the MARAD to credit tuition and
designated gifts to its Operations and Training appropriations.
The funds will remain available until expended, for those
expenses directly related for the purposes of the program. The
MARAD would be directed to maintain a separate and detailed
accounting of these revenues and all associated expenses.
Section 12. America's Short Sea Transportation Grants for the
Development of the Marine Highway.
Section 12 would allow the Secretary to establish a Short Sea
Transportation Grant Program to support the Short Sea
Transportation Initiative created in the Energy Independence
and Security Act of 2007. The Act required the Secretary to
implement programs to establish America's Marine Highway as an
extension of the surface transportation system to mitigate
landside congestion.
America's Marine Highway provides several advantages to the
overall national transportation system, including reduced
surface transportation congestion, decreased air emissions,
decreased energy consumption, and the potential to improve
highway safety by reducing motor carrier freight
transportation. A typical vessel and barge service can shift
over 450 trucks or 225 rail cars from costly and congested road
and rail corridors to our underutilized waterways. The typical
Marine Highway vessel and barge service can move one ton of
cargo 576 miles on one gallon of fuel, whereas a truck would
move that same cargo 155 miles and a train 413 miles on the
same gallon of fuel. Inland marine transportation involves only
1 fatality for every 155 by truck and 22 by rail for every
billion ton-miles moved.
Section 13. Expansion of the Marine View System.
Section 13 would expand the information technology system
known as MARVIEW to support the strategic requirements of the
United States marine transportation system and its contribution
to the economic viability of the United States.
MARVIEW is a web-based resource that pulls maritime
information from several Federal sources and non-profit
organizations to create a common operating picture of the
maritime domain. This system provides for various levels of
information access to users based upon clearance level. Some of
the basic applications include: maritime domain awareness,
centralized information exchange, support for critical incident
response, emergency alerts, and statistical information on
ports, vessels, and waterway usage on both a national and
global basis.
Section 14. Authorization of Appropriations for Fiscal Year 2010.
Section 14 would describe the Authorization of Appropriations
for the MARAD for Fiscal Year 2010.
Changes in Existing Law
In compliance with paragraph 12 of rule XXVI of the Standing
Rules of the Senate, changes in existing law made by the bill,
as reported, are shown as follows (existing law proposed to be
omitted is enclosed in black brackets, new material is printed
in italic, existing law in which no change is proposed is shown
in roman):
TITLE 46. SHIPPING
SUBTITLE V. MERCHANT MARINE
PART A. GENERAL
CHAPTER 501. POLICY, STUDIES, AND REPORTS
Sec. 50101. Objectives and policy
(a) Objectives.--It is necessary for the national defense and
the development of the domestic and foreign commerce of the
United States that the United States have a merchant marine--
(1) sufficient to carry the waterborne domestic
commerce and a substantial part of the waterborne
export and import foreign commerce of the United States
and to provide shipping service essential for
maintaining the flow of the waterborne domestic and
foreign commerce at all times;
(2) capable of serving as a naval and military
auxiliary in time of war or national emergency;
(3) owned and operated as vessels of the United
States by citizens of the United States;
(4) composed of the best-equipped, safest, and most
suitable types of vessels constructed in the United
States and manned with a trained and efficient citizen
personnel; and
(5) supplemented by efficient facilities for building
and repairing vessels.
(b) Policy.--It is the policy of the United States to
encourage and aid the development and maintenance of a merchant
marine satisfying the objectives described in subsection (a).
TITLE 46. SHIPPING
SUBTITLE V. MERCHANT MARINE
PART A. GENERAL
CHAPTER 503. ADMINISTRATIVE
Sec. 50302. Port development
(a) General Requirements.--With the objective of promoting,
encouraging, and developing ports and transportation facilities
in connection with water commerce over which the Secretary of
Transportation has jurisdiction, the Secretary, in cooperation
with the Secretary of the Army, shall--
(1) investigate territorial regions and zones
tributary to ports, taking into consideration the
economies of transportation by rail, water, and highway
and the natural direction of the flow of commerce;
(2) investigate the causes of congestion of commerce
at ports and applicable remedies;
(3) investigate the subject of water terminals,
including the necessary docks, warehouses, and
equipment, to devise and suggest the types most
appropriate for different locations and for the most
expeditious and economical transfer or interchange of
passengers or property between water carriers and rail
carriers;
(4) consult with communities on the appropriate
location and plan of construction of wharves, piers,
and water terminals;
(5) investigate the practicability and advantages of
harbor, river, and port improvements in connection with
foreign and coastwise trade; and
(6) investigate any other matter that may tend to
promote and encourage the use by vessels of ports
adequate to care for the freight that naturally would
pass through those ports.
(b) Submission of Findings to Surface Transportation Board.--
After an investigation under subsection (a), if the Secretary
of Transportation believes that the rates or practices of a
rail carrier subject to the jurisdiction of the Surface
Transportation Board are detrimental to the objective specified
in subsection (a), or that new rates or practices, new or
additional port terminal facilities, or affirmative action by a
rail carrier is necessary to promote that objective, the
Secretary may submit findings to the Board for action the Board
considers appropriate under existing law.
(c) Port Infrastructure Development Program.--
(1) Establishment of program.--The Secretary of
Transportation, through the Maritime Administration,
shall establish a port infrastructure development
program for the improvement of port facilities.
(2) Authority of the administrator.--In order to
carry out any program established under paragraph (1),
the Maritime Administrator may--
(A) receive funds provided for the program
from non-Federal and private entities that have
a specific agreement or contract with the
Maritime Administration to further the purposes
of this subsection;
(B) coordinate with other Federal agencies to
expedite the process established under the
National Environmental Policy Act of 1969 (42
U.S.C. 4321 et seq.) for the improvement of
port facilities to relieve port congestion, to
increase port security, or to provide greater
access to port facilities;
(C) seek to coordinate all reviews or
requirements with appropriate local, State, and
Federal agencies;
(D) provide such technical assistance to port
authorities or commissions or their
subdivisions and agents as needed for project
planning, design, and construction; and
(E) encourage such public-private
partnerships as may be necessary for the
development of financial support of the project
as the Administrator deems necessary.
(3) Port infrastructure development fund.--
(A) Establishment.--There is a Port
Infrastructure Development Fund for use by the
Administrator in carrying out the port
infrastructure development program. The Fund
shall be available to the Administrator--
(i) to administer and carry out the
program;
(ii) to receive non-Federal and
private funds from entities which have
specific agreements or contracts with
the Administrator; and
(iii) to make refunds for projects
that will not be completed.
(B) Credits.--There shall be deposited into
the Fund--
(i) funds from non-Federal and
private entities which have agreements
or contracts with the Administrator and
which shall remain in the Fund until
expended;
(ii) income from investments made
pursuant to subparagraph (D); and
(iii) such amounts as may be
appropriated or transferred to the Fund
under this subsection.
(C) Transfers.--Amounts appropriated or
otherwise made available for any fiscal year
for an intermodal or marine facility comprising
a component of the program shall be transferred
to the Fund and administered by the
Administrator.
(D) Investments.--Amounts in the Fund which
are not currently needed for the program shall
be kept on deposit or invested in obligations
of, or guaranteed by, the United States.
(E) Administrative expenses.--Administrative
and related expenses for the program for any
fiscal year may not exceed 3 percent of the
amount available to the program for that fiscal
year.
(F) Authorization of appropriations.--There
are authorized to be appropriated to the Fund
such sums as may be necessary to carry out the
program, taking into account amounts received
under subparagraph (A)(ii).
TITLE 46. SHIPPING
SUBTITLE V. MERCHANT MARINE
PART B. MERCHANT MARINE SERVICE
CHAPTER 513. UNITED STATES MERCHANT MARINE ACADEMY
Sec. 51309. Academic degree
(a) Bachelor's Degree.--
(1) In general.--The Superintendent of the United
States Merchant Marine Academy may confer the degree of
bachelor of science on an individual who--
(A) has met the conditions prescribed by the
Secretary of Transportation; and
(B) if a citizen of the United States, has
passed the examination for a merchant marine
officer's license.
(2) Effect of physical disqualification,--An
individual not allowed to take the examination for a
merchant marine officer's license only because of
physical disqualification may not be denied a degree
for not taking the examination.
(b) Master's Degree.--The Superintendent of the Academy may
confer a master's degree on an individual who has met the
conditions prescribed by the Secretary. A master's degree
program may be funded through non-appropriated funds. To
maintain the appropriate academic standards, the program shall
be accredited by the appropriate accreditation body. Non-
appropriated funds received for this purpose shall be credited
to the Maritime Administration's Operations and Training
appropriation, to remain available until expended, for those
expenses directly related to the purpose of such receipts. The
Superintendent shall maintain a separate and detailed
accounting of non-appropriated fund receipts and all associated
expenses. The Secretary may prescribe regulations necessary to
administer such a program.
(c) Graduation Not Entitlement To Hold License.--Graduation
from the Academy does not entitle an individual to hold a
license authorizing service on a merchant vessel.
Sec. 51314. Limitation on charges and fees for attendance
(a) Prohibition.--Except as provided in subsection (b), no
charge or fee for tuition, room, or board for attendance at the
United States Merchant Marine Academy may be imposed unless the
charge or fee is specifically authorized by a law enacted after
October 5, 1994.
(b) Exception.--The prohibition specified in subsection (a)
does not apply with respect to any item or service provided to
cadets for which a charge or fee is imposed as of October 5,
[1994.] 1994, or for calculators, computers, personal and
academic supplies, midshipman services such as barber, tailor,
or laundry services, and U.S. Coast Guard license fees. The
Secretary of Transportation shall notify Congress of any change
made by the Academy in the amount of a charge or fee authorized
under this subsection.
(c) Use and Accounting.--
(1) Use.--Midshipman fees collected by the Academy
shall be credited to the Maritime Administration's
Operations and Training appropriations, to remain
available until expended, for those expenses directly
related to the purposes of the fees. Fees collected in
excess of actual expenses may be returned to the
midshipmen through a mechanism approved by the Maritime
Administrator.
(2) Accounting.--The Maritime Administration shall
maintain a separate and detailed accounting of fee
revenue and all associated expenses.
* * * * * * *
51317. Adjunct professors
(a) In General.--The Maritime Administrator may, subject to
the availability of appropriations, contract with individuals
as personal services contractors to provide services as adjunct
professors at the United States Merchant Marine Academy, if the
Maritime Administrator determines that there is a need for
adjunct professors and the need is not of permanent duration.
(b) Contract Requirements.--Each contract under this
section--
(1) shall be approved by the Maritime Administrator;
and
(2) shall be for a duration, including options, of
not to exceed one year unless the Maritime
Administration finds that exceptional circumstances
justify an extension, which may not exceed one
additional year.
(c) Limitation on Number of Contractors.--In awarding
contracts under this section, the Maritime Administrator shall
ensure that not more than 25 individuals actively provide
services in any one academic trimester, or equivalent, as
contractors under subsection (a).
(d) Existing Contracts.--Any contract entered into before the
date of enactment of the Maritime Administration Authorization
Act of 2010 for the services of an adjunct professor at the
Academy shall remain in effect for the trimester (or
trimesters) for which the services were contracted.
* * * * * * *
TITLE 46. SHIPPING
SUBTITLE V. MERCHANT MARINE
PART B. MERCHANT MARINE SERVICE
CHAPTER 515. STATE MARITIME ACADEMY SUPPORT PROGRAM
Sec. 51509. Student incentive payment agreements
(a) General Authority.--If a State maritime academy has an
agreement with the Secretary of Transportation under section
51505 of this title, the Secretary may make an agreement with a
student at the academy who is a citizen of the United States to
make student incentive payments to the individual. An agreement
with a student may not be effective for more than 4 academic
years. The Secretary shall allocate payments under this section
among the various State maritime academies in an equitable
manner.
(b) Payments.--Payments under an agreement under this section
shall be equal to $8,000 each academic year and be [paid before
the start of each academic year,] paid as prescribed by the
Secretary, while the individual is attending the academy. The
payments shall be used for uniforms, tuition, books, and
subsistence.
(c) Enlisted Reserve Status.--An agreement under this section
shall require the student to accept enlisted reserve status in
the Navy Reserve (including the Merchant Marine Reserve, Navy
Reserve) or the Coast Guard Reserve before receiving any
payments under the agreement.
(d) Agreement Requirements.--An agreement under this section
shall require the student to--
(1) complete the course of instruction at the academy
the individual is attending;
(2) take the examination for a license as an officer
in the merchant marine of the United States before
graduation from the academy and fulfill the
requirements for such a license within 3 months after
graduation from the academy;
(3) maintain a valid license as an officer in the
merchant marine of the United States for at least 6
years after graduation from the academy, accompanied by
the appropriate national and international endorsements
and certification required by the Coast Guard for
service aboard vessels on domestic and international
voyages;
(4) accept, if tendered, an appointment as a
commissioned officer in the Navy Reserve (including the
Merchant Marine Reserve, Navy Reserve), the Coast Guard
Reserve, or any other reserve unit of an armed force of
the United States, and, if tendered the appointment, to
serve for at least 6 years after graduation from the
academy;
(5) serve the foreign and domestic commerce and the
national defense of the United States for at least 3
years after graduation from the academy--
(A) as a merchant marine officer on a
documented vessel or a vessel owned and
operated by the United States Government or by
a State;
(B) as an employee in a United States
maritime-related industry, profession, or
marine science (as determined by the
Secretary), if the Secretary determines that
service under subparagraph (A) is not available
to the individual;
(C) as a commissioned officer on active duty
in an armed force of the United States, as a
commissioned officer in the National Oceanic
and Atmospheric Administration, or in other
maritime-related Federal employment which
serves the national security interests of the
United States, as determined by the Secretary;
or
(D) by a combination of the service
alternatives referred to in subparagraphs (A)-
(C); and
(6) report to the Secretary on compliance with this
subsection.
(e) Failure to Complete Course of Instruction.--
(1) Active duty.--If the Secretary of Transportation
determines that an individual who has accepted the
payments described in subsection (b) for a minimum of 2
academic years has failed to fulfill the part of the
agreement described in subsection (d)(1), the
individual may be ordered by the Secretary of Defense
to serve on active duty in the armed forces of the
United States for a period of not more than 2 years. In
cases of hardship as determined by the Secretary of
Transportation, the Secretary of Transportation may
waive this paragraph in whole or in part.
(2) Recovery of cost.--If the Secretary of Defense is
unable or unwilling to order an individual to serve on
active duty under paragraph (1), or if the Secretary of
Transportation determines that reimbursement of the
cost of education provided would better serve the
interests of the United States, the Secretary of
Transportation may recover from the individual the
amount of student incentive payments, plus interest and
attorney fees. The Secretary may reduce the amount to
be recovered to reflect partial performance of service
obligations and other factors the Secretary determines
merit a reduction.
(f) Failure To Carry Out Other Requirements.--
(1) Active duty.--If the Secretary of Transportation
determines that an individual has failed to fulfill any
part of the agreement described in subsection (d)(2)-
(6), the individual may be ordered to serve on active
duty for a period of at least 2 years but not more than
the unexpired period (as determined by the Secretary)
of the service required by subsection (d)(5). The
Secretary of Transportation, in consultation with the
Secretary of Defense, shall determine in which service
the individual shall serve. In cases of hardship as
determined by the Secretary of Transportation, the
Secretary of Transportation may waive this paragraph in
whole or in part.
(2) Recovery of cost.--If the Secretary of Defense is
unable or unwilling to order an individual to serve on
active duty under paragraph (1), or if the Secretary of
Transportation determines that reimbursement of the
cost of education provided would better serve the
interests of the United States, the Secretary of
Transportation may recover from the individual the
amount of student incentive payments, plus interest and
attorney fees. The Secretary may reduce the amount to
be recovered to reflect partial performance of service
obligations and other factors the Secretary determines
merit a reduction.
(g) Actions To Recover Cost.--To aid in the recovery of the
cost of education provided by the Government under a commitment
agreement under this section, the Secretary of Transportation
may--
(1) request the Attorney General to bring a civil
action against the individual; and
(2) make use of the Federal debt collection
procedures in chapter 176 of title 28 or other
applicable administrative remedies.
TITLE 46. SHIPPING
SUBTITLE V. MERCHANT MARINE
PART D. PROMOTIONAL PROGRAMS
CHAPTER 556. SHORT SEA TRANSPORTATION
Sec. 55602. Short sea transportation grant program
(a) In General.--The Secretary of Transportation shall
establish and implement a short sea transportation grant
program.
(b) Purpose.--The purposes of the program are to make grants
to States and other public entities and sponsors of short sea
transportation projects designated by the Secretary--
(1) to facilitate and support marine transportation
initiatives at the State and local levels to facilitate
commerce, mitigate landside congestion, reduce the
transportation energy consumption, reduce harmful
emissions, improve safety, assist in environmental
mitigation efforts, and improve transportation system
resiliency; and
(2) to provide capital funding to address short sea
transportation infrastructure and freight
transportation needs for ports, vessels, and intermodal
cargo facilities.
(c) Eligible Projects.--To be eligible for a grant under the
program, a project--
(1) shall be designed to help relieve congestion,
improve transportation safety, facilitate domestic and
international trade, or encourage public-private
partnerships; and
(2) may include development, modification, and
construction of marine and intermodal cargo facilities,
vessels, port infrastructure and cargo handling
equipment, and transfer facilities at ports.
(d) Selection Process.--
(1) Applications.--A State or other public entity, or
the sponsor of any short sea transportation project
designated by the Secretary under the America's Marine
Highway Program (MARAD Docket No. 2008-0096; 73 FR
59530), may submit an application to Secretary for a
grant under the short sea transportation grant program.
The application shall contain such information and
assurances as the Secretary may require.
(2) Priority.--In selecting projects for grants, the
Secretary shall give priority to projects that are
consistent with the objectives of the short sea
transportation initiative and America's Marine Highway
Program that will--
(A) mitigate landside congestion;
(B) provide the greatest public benefit in
energy savings, reduced emissions, improved
system resiliency, and improved safety;
(C) include and demonstrate the greatest
environmental responsibility; and
(D) provide savings as an alternative to or
means to avoid highway or rail transportation
infrastructure construction and maintenance.
(e) Use of Grant Funds.--Funds made available to a recipient
of a grant under this section shall be used by the recipient
for the project described in the application of the recipient
approved by the Secretary.
[Sec. 55602. Cargo and shippers]
Sec. 55603. Cargo and shippers
(a) Memorandums of Agreement.--The Secretary of
Transportation shall enter into memorandums of understanding
with the heads of other Federal entities to transport federally
owned or generated cargo using a short sea transportation
project designated under section 55601 when practical or
available.
(b) Short-term Incentives.--The Secretary shall consult
shippers and other participants in transportation logistics and
develop proposals for short-term incentives to encourage the
use of short sea transportation.
[Sec. 55603. Interagency coordination]
Sec. 55604. Interagency coordination
The Secretary of Transportation shall establish a board to
identify and seek solutions to impediments hindering effective
use of short sea transportation. The board shall include
representatives of the Environmental Protection Agency and
other Federal, State, and local governmental entities and
private sector entities.
[Sec. 55604. Research on short sea transportation]
Sec. 55605. Research on short sea transportation
The Secretary of Transportation, in consultation with the
Administrator of the Environmental Protection Agency, may
conduct research on short sea transportation, regarding--
(1) the environmental and transportation benefits to
be derived from short sea transportation alternatives
for other forms of transportation;
(2) technology, vessel design, and other improvements
that would reduce emissions, increase fuel economy, and
lower costs of short sea transportation and increase
the efficiency of intermodal transfers; and
(3) solutions to impediments to short sea
transportation projects designated under section 55601.
[Sec. 55605. Short sea transportation defined]
Sec. 55606. Short sea transportation defined
In this chapter, the term ``short sea transportation'' means
the carriage by vessel of cargo--
(1) that is--
(A) contained in intermodal cargo containers
and loaded by crane on the vessel; or
(B) loaded on the vessel by means of wheeled
technology; and
(2) that is--
(A) loaded at a port in the United States and
unloaded either at another port in the United
States or at a port in Canada located in the
Great Lakes Saint Lawrence Seaway System; or
(B) loaded at a port in Canada located in the
Great Lakes Saint Lawrence Seaway System and
unloaded at a port in the United States.
TITLE 49. TRANSPORTATION
SUBTITLE I. DEPARTMENT OF TRANSPORTATION
CHAPTER 1. ORGANIZATION
Sec. 109. Maritime Administration
(a) Organization.--The Maritime Administration is an
administration in the Department of Transportation.
(b) Maritime Administrator.--The head of the Maritime
Administration is the Maritime Administrator, who is appointed
by the President by and with the advice and consent of the
Senate. The Administrator shall report directly to the
Secretary of Transportation and carry out the duties prescribed
by the Secretary.
(c) Deputy Maritime Administrator.--The Maritime
Administration shall have a Deputy Maritime Administrator, who
is appointed in the competitive service by the Secretary, after
consultation with the Administrator. The Deputy Administrator
shall carry out the duties prescribed by the Administrator. The
Deputy Administrator shall be Acting Administrator during the
absence or disability of the Administrator and, unless the
Secretary designates another individual, during a vacancy in
the office of Administrator.
(d) Duties and Powers Vested in Secretary.--All duties and
powers of the Maritime Administration are vested in the
Secretary.
(e) Regional Offices.--The Maritime Administration shall have
regional offices for the Atlantic, Gulf, Great Lakes, and
Pacific port ranges, and may have other regional offices as
necessary. The Secretary shall appoint a qualified individual
as Director of each regional office. The Secretary shall carry
out appropriate activities and programs of the Maritime
Administration through the regional offices.
(f) Interagency and Industry Relations.--The Secretary shall
establish and maintain liaison with other agencies, and with
representative trade organizations throughout the United
States, concerned with the transportation of commodities by
water in the export and import foreign commerce of the United
States, for the purpose of securing preference to vessels of
the United States for the transportation of those commodities.
(g) Detailing Officers From Armed Forces.--To assist the
Secretary in carrying out duties and powers relating to the
Maritime Administration, not more than five officers of the
armed forces may be detailed to the Secretary at any one time,
in addition to details authorized by any other law. During the
period of a detail, the Secretary shall pay the officer an
amount that, when added to the officer's pay and allowances as
an officer in the armed forces, makes the officer's total pay
and allowances equal to the amount that would be paid to an
individual performing work the Secretary considers to be of
similar importance, difficulty, and responsibility as that
performed by the officer during the detail.
[(h) Contracts and Audits.--]
(h) Contracts, Cooperative Agreements, and Audits.--
[(1) Contracts.--] (1) Contracts and cooperative
agreements._In the same manner that a private
corporation may make a contract within the scope of its
authority under its charter, the Secretary may [make
contracts] make contracts and cooperative agreements
for the United States Government and disburse amounts
to--
(A) carry out the Secretary's duties and
powers under this [section and] section,
subtitle V of [title 46;] title 46, and all
other Maritime Administration programs; and
(B) protect, preserve, and improve collateral
held by the Secretary to secure indebtedness.
(2) Audits.--The financial transactions of the
Secretary under paragraph (1) shall be audited by the
Comptroller General. The Comptroller General shall
allow credit for an expenditure shown to be necessary
because of the nature of the business activities
authorized by this section or subtitle V of title 46.
At least once a year, the Comptroller General shall
report to Congress any departure by the Secretary from
this section or subtitle V of title 46.
(i) Grant Administrative Expenses.--Except as otherwise
provided by law, the administrative and related expenses for
the administration of any grant programs by the Maritime
Administrator may not exceed 3 percent.
[(i)] (j) Authorization of Appropriations.--
(1) In general.--Except as otherwise provided in this
subsection, there are authorized to be appropriated
such amounts as may be necessary to carry out the
duties and powers of the Secretary relating to the
Maritime Administration.
(2) Limitations.--Only those amounts specifically
authorized by law may be appropriated for the use of
the Maritime Administration for--
(A) acquisition, construction, or
reconstruction of vessels;
(B) construction-differential subsidies
incident to the construction, reconstruction,
or reconditioning of vessels;
(C) costs of national defense features;
(D) payments of obligations incurred for
operating-differential subsidies;
(E) expenses necessary for research and
development activities, including reimbursement
of the Vessel Operations Revolving Fund for
losses resulting from expenses of experimental
vessel operations;
(F) the Vessel Operations Revolving Fund;
(G) National Defense Reserve Fleet expenses;
(H) expenses necessary to carry out part B of
subtitle V of title 46; and
(I) other operations and training expenses
related to the development of waterborne
transportation systems, the use of waterborne
transportation systems, and general
administration.
(3) Training vessels.--Amounts may not be
appropriated for the purchase or construction of
training vessels for State maritime academies unless
the Secretary has approved a plan for sharing training
vessels between State maritime academies.
PUBLIC LAW 92-402
SEC. 3. STATE APPLICATIONS FOR OBSOLETE SHIPS FOR USE AS OFFSHORE
REEFS.
Sec. 1220. State applications for obsolete ships for use as offshore
reefs
(a) Conservation of Marine Life.--Any State may apply to the
Secretary of Transportation (hereafter referred to in this Act
as the ``Secretary'') for obsolete ships which, but for the
operation of this Act, would be designated by the Secretary for
scrapping if the State intends to sink such ships for use as an
offshore artificial reef for the conservation of marine life.
(b) Manner and Form of Applications; Minimum Requirements.--A
State shall apply for obsolete ships under this Act in such
manner and form as the Secretary shall prescribe, but such
application shall include at least (1) the location at which
the State proposes to sink the ships, (2) a certificate from
the Administrator, Environmental Protection Agency, that the
proposed use of the particular vessel or vessels requested by
the State will be compatible with water quality standards and
other appropriate environmental protection requirements, and
(3) statements and estimates with respect to the conservation
goals which are sought to be achieved by use of the ships.
(c) Copies to Federal Officers for Official Comments and
Views.--Before taking any action with respect to an application
submitted under this Act, the Secretary shall provide copies of
the application to the Secretary of the Interior, the Secretary
of Defense, and any other appropriate Federal officer, and
shall consider comments and views of such officers with respect
to the application.
(d) Any territory, possession, or Commonwealth of the United
States, and any foreign country, may apply to the Secretary for
an obsolete vessel to be used for an artificial reef under this
section. The application process and reefing of any such
obsolete vessel shall be performed in a manner consistent with
the process jointly developed by the Secretary of
Transportation and the Administrator of the Environmental
Protection Agency under section 3504(b) of Public Law 107-314
(16 U.S.C. 1220 note).
PUBLIC LAW 92-402
SEC. 7. FINANCIAL ASSISTANCE TO STATE TO PREPARE TRANSFERRED SHIP.
[16 U.S.C. 1220c-1]
(a) Assistance Authorized.--The Secretary, subject to the
availability of appropriations, may provide, to any State to
which an obsolete ship is transferred under this Act, financial
assistance to prepare the ship for use as an artificial reef,
including for--
(1) environmental remediation;
(2) towing; and
(3) sinking.
(b) Amount of Assistance.--The Secretary shall determine the
amount of assistance under this section with respect to an
obsolete ship based on--
(1) the total amount available for providing
assistance under this section;
(2) the benefit achieved by providing assistance for
that ship; and
(3) the cost effectiveness of disposing of the ship
by transfer under this Act and provision of assistance
under this section, compared to other disposal options
for that ship.
(c) Terms and Conditions.--The Secretary--
(1) shall require a State seeking assistance under
this section to provide cost data and other information
determined by the Secretary to be necessary to justify
and document the assistance; and
(2) may require a State receiving such assistance to
comply with terms and conditions necessary to protect
the environment and the interests of the United States.
(d) Limitation.--The Secretary may not provide assistance
under this section to a foreign country to which an obsolete
ship is transferred under this Act.
NATIONAL MARITIME HERITAGE ACT OF 1994
SEC. 6. FUNDING.
[16 U.S.C. 5405]
(a) Availability of Funds From Sale and Scrapping of Obsolete
Vessels.--
(1) In general.--Notwithstanding any other provision
of law, the amount of funds credited in a fiscal year
to the Vessel Operations Revolving Fund established by
the Act of June 2, 1951 (46 App. U.S.C. 1241a), that is
attributable to the sale of obsolete vessels in the
National Defense Reserve Fleet that are scrapped or
sold under section 508 or 510(i) of the Merchant Marine
Act, 1936 (46 App. U.S.C. 1158 or 1160(i)) shall be
available until expended as follows:
(A) 50 percent shall be available to the
Administrator of the Maritime Administration
for such acquisition, maintenance, repair,
reconditioning, or improvement of vessels in
the National Defense Reserve Fleet as is
authorized under other Federal law.
(B) 25 percent shall be available to the
Administrator of the Maritime Administration
for the payment or reimbursement of expenses
incurred by or on behalf of State maritime
academies or the United States Merchant Marine
Academy for facility and training ship
maintenance, repair, and modernization, and for
the purchase of simulators and fuel.
[(C) The remainder shall be available to the
Secretary to carry out the Program, as provided
in subsection (b).]
(C) The remainder, whether collected before
or after the date of enactment of the Maritime
Administration Authorization Act of 2010, shall
be available to the Secretary to carry out the
Program, as provided in subsection (b) of this
section or, if otherwise determined by the
Maritime Administrator, for use in the
preservation and presentation to the public of
maritime heritage property of the Maritime
Administration.
(2) Application.--Paragraph (1) does not apply to
amounts credited to the Vessel Operations Revolving
Fund before July 1, 1994.
(b) Use of Amounts for Program.--
(1) In general.--Except as provided in paragraph (2),
of amounts available each fiscal year for the Program
under subsection (a)(1)(C)--
(A) 1/2 shall be used for grants under
section 4(b); and
(B) 1/2 shall be used for grants under
section 4(c).
(2) Use for interim projects.--Amounts available for
the Program under subsection (a)(1)(C) that are the
proceeds of any of the first 8 obsolete vessels in the
National Defense Reserve Fleet that are sold or
scrapped after July 1, 1994, under section 508 or
510(i) of the Merchant Marine Act, 1936 (46 U.S.C. 1158
or 1160(i)) are available to the Secretary for grants
for interim projects approved under section 4(j) of
this Act.
(3) Administrative expenses.--
(A) In general.--Not more than 15 percent or
$ 500,000, whichever is less, of the amount
available for the Program under subsection
(a)(1)(C) for a fiscal year may be used for
expenses of administering the Program.
(B) Allocation.--Of the amount available
under subparagraph (A) for a fiscal year--
(i) 1/2 shall be allocated to the
National Trust for expenses incurred in
administering grants under section
4(b); and
(ii) 1/2 shall be allocated as
appropriate by the Secretary to the
National Park Service and participating
State Historic Preservation Officers.
(c) Disposals of Vessels.--
(1) Requirement.--The Secretary of Transportation
shall dispose (either by sale or purchase of disposal
services) of all vessels described in paragraph (2)--
(A) in accordance with a priority system for
disposing of vessels, as determined by the
Secretary, which shall include provisions
requiring the Maritime Administration to--
(i) dispose of all deteriorated high
priority ships that are available for
disposal, within 12 months of their
designation as such; and
(ii) give priority to the disposition
of those vessels that pose the most
significant danger to the environment
or cost the most to maintain;
(B) in the manner that provides the best
value to the Government, except in any case in
which obtaining the best value would require
towing a vessel and such towing poses a serious
threat to the environment; and
(C) in accordance with the plan of the
Department of Transportation for disposal of
those vessels and requirements under sections
508 and 510(i) of the Merchant Marine Act, 1936
(46 App. U.S.C. 1158, 1160(i)).
(2) Vessels described.--The vessels referred to in
paragraph (1) are the vessels in the National Defense
Reserve Fleet after July 1, 1994, that--
(A) are not assigned to the Ready Reserve
Force component of that fleet; and
(B) are not specifically authorized or
required by statute to be used for a particular
purpose.
(d) Treatment of Amounts Available.--Amounts available under
this section shall not be considered in any determination of
the amounts available to the Department of the Interior.
DUNCAN HUNTER NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2009
[46 U.S.C. 53101 note]
Sec. 53101. Definitions
In this chapter:
(1) Bulk cargo.--The term ``bulk cargo'' means cargo
that is loaded and carried in bulk without mark or
count.
(2) Contractor.--The term ``contractor'' means an
owner or operator of a vessel that enters into an
operating agreement for the vessel with the Secretary
under section 53103.
(3) Fleet.--The term ``Fleet'' means the Maritime
Security Fleet established under section 53102(a).
(4) Foreign commerce.--The term ``foreign
commerce''--
(A) subject to subparagraph (B), means--
(i) commerce or trade between the
United States, its territories or
possessions, or the District of
Columbia, and a foreign country; and
(ii) commerce or trade between
foreign countries; and
(B) includes, in the case of liquid and dry
bulk cargo carrying services, trading between
foreign ports in accordance with normal
commercial bulk shipping practices in such
manner as will permit United States-documented
vessels freely to compete with foreign-flag
bulk carrying vessels in their operation or in
competing for charters, subject to rules and
regulations promulgated by the Secretary of
Transportation pursuant to this chapter or
subtitle D of the Maritime Security Act of
2003.
(5) LASH vessel.--The term ``LASH vessel'' means a
lighter aboard ship vessel.
(6) Participating fleet vessel.--The term
``participating fleet vessel'' means any vessel that--
(A) on October 1, 2005--
(i) meets the requirements of
paragraph (1), (2), (3), or (4) of
section 53102(c); and
(ii) is less than 25 years of age, or
less than 30 years of age in the case
of a LASH vessel; and
(B) on December 31, 2004, is covered by an
operating agreement under subtitle B of title
VI of the Merchant Marine Act, 1936 (46 U.S.C.
App. 1187 et seq.).
(7) Person.--The term ``person'' includes
corporations, partnerships, and associations existing
under or authorized by the laws of the United States,
or any State, Territory, District, or possession
thereof, or of any foreign country.
(8) Product tank vessel.--The term ``product tank
vessel'' means a double hulled tank vessel capable of
carrying simultaneously more than 2 separated grades of
refined petroleum products.
(9) Secretary.--The term ``Secretary'' means the
Secretary of Transportation.
(10) Tank Vessel.--The term ``tank vessel'' has the
meaning that term has under section 2101 of this title.
(11) United states.--The term ``United States''
includes the District of Columbia, the Commonwealth of
Puerto Rico, the Northern Mariana Islands, Guam,
American Samoa, the Virgin Islands.
(12) United states citizen trust.--
(A) Subject to subparagraph (C), the term
``United States citizen trust'' means a trust
that is qualified under this paragraph.
(B) A trust is qualified under this paragraph
with respect to a vessel only if--
(i) each of the trustees is a citizen
of the United States; and
(ii) the application for
documentation of the vessel under
chapter 121 of this title includes the
affidavit of each trustee stating that
the trustee is not aware of any reason
involving a beneficiary of the trust
that is not a citizen of the United
States, or involving any other person
that is not a citizen of the United
States, as a result of which the
beneficiary or other person would hold
more than 25 percent of the aggregate
power to influence or limit the
exercise of the authority of the
trustee with respect to matters
involving any ownership or operation of
the vessel that may adversely affect
the interests of the United States.
(C) If any person that is not a citizen of
the United States has authority to direct or
participate in directing a trustee for a trust
in matters involving any ownership or operation
of the vessel that may adversely affect the
interests of the United States or in removing a
trustee for a trust without cause, either
directly or indirectly through the control of
another person, the trust is not qualified
under this paragraph unless the trust
instrument provides that persons who are not
citizens of the United States may not hold more
than 25 percent of the aggregate authority to
so direct or remove a trustee.
(D) This paragraph shall not be considered to
prohibit a person who is not a citizen of the
United States from holding more than 25 percent
of the beneficial interest in a trust.
(13) United states-documented vessel.--The term
``United States-documented vessel'' means a vessel
documented under chapter 121 of this title.
[SEC. 3506. TEMPORARY PROGRAM AUTHORIZING CONTRACTS WITH ADJUNCT
PROFESSORS AT THE UNITED STATES MERCHANT MARINE
ACADEMY AND FOR OTHER PURPOSES.
[(a) In General.--The Maritime Administrator may establish a
temporary program for the purpose of, subject to the
availability of appropriations, contracting with individuals as
personal services contractors to provide services as adjunct
professors at the Academy, if the Maritime Administrator
determines that there is a need for adjunct professors and the
need is not of permanent duration.
[(b) Contract Requirements.--Each contract under the
program--
[(1) must be approved by the Maritime Administrator;
[(2) subject to paragraph (3), shall be for a
duration, including options, of not to exceed one year
unless the Maritime Administrator finds that
exceptional circumstances justify an extension of up to
one additional year; and
[(3) shall terminate not later than 6 months after
the termination of contract authority under subsection
(d).
[(c) Limitation on Number of Contractors.--In awarding
contacts under the program, the Maritime Administrator shall
ensure that not more than 25 individuals actively provide
services in any one academic trimester, or equivalent, as
contractors under the program.
[(d) Termination of Contracting Authority.--The authority to
award contracts under the program shall terminate upon the end
of the academic year 2008-2009.
[(e) Existing Contracts.--Any contract entered into before
the effective date of this section for the services of an
adjunct professor at the Academy shall remain in effect for the
trimester (or trimesters) for which the services were
contracted.
[(f) Definitions.--In this section:
[(1) Academy.--The term ``Academy'' means the United
States Merchant Marine Academy.
[(2) Maritime administrator.--The term ``Maritime
Administrator'' means the Administrator of the Maritime
Administration, or a designee of the Administrator.
[(3) Program.--The term ``program'' means the program
established under subsection (a).]