[Senate Report 111-382]
[From the U.S. Government Publishing Office]
Calendar No. 712
111th Congress Report
2d Session SENATE 111-382
_______________________________________________________________________
MARITIME ADMINISTRATION AUTHORIZATION ACT FOR FISCAL YEAR 2011
__________
R E P O R T
of the
COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
on
S. 3566
December 21, 2010.--Ordered to be printed
_______
U.S. GOVERNMENT PRINTING OFFICE
99-010 WASHINGTON : 2010
SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
one hundred eleventh congress
second 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 GEORGE S. LeMIEUX, Florida
MARK PRYOR, Arkansas JOHNNY ISAKSON, Georgia
CLAIRE McCASKILL, Missouri DAVID VITTER, Louisiana
AMY KLOBUCHAR, Minnesota SAM BROWNBACK, Kansas
TOM UDALL, New Mexico MIKE JOHANNS, Nebraska
MARK WARNER, Virginia
MARK BEGICH, Alaska
Ellen Doneski, Staff Director
James Reid, Deputy Staff Director
Bruce Andrews, General Counsel
Ann Begeman, Republican Staff Director
Brian Hendricks, Republican General Counsel
Todd Bertoson, Republican Senior Counsel
Calendar No. 712
111th Congress Report
SENATE
2d Session 111-382
======================================================================
MARITIME ADMINISTRATION AUTHORIZATION ACT FOR FISCAL YEAR 2011
_______
December 21, 2010.--Ordered to be printed
_______
Mr. Rockefeller, from the Committee on Commerce, Science, and
Transportation, submitted the following
R E P O R T
[To accompany S. 3566]
The Committee on Commerce, Science, and Transportation, to
which was referred the bill (S. 3566) to authorize certain
maritime programs of the Department of Transportation, and for
other purposes, having considered the same, reports favorably
thereon with amendments 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 2011 and amend laws governing the activities of the MARAD.
The bill would require a report and assessment of future marine
transportation system requirements, including intercoastal and
inland waterway needs. It would broaden the eligibility of
Short Sea Transportation projects, and make modifications to
the recycling and donation program. The bill would also clarify
that the U.S. Merchant Marine Academy (USMMA) is permitted to
use appropriated funds for research and development purposes.
Background and Needs
The MARAD was authorized through fiscal year 2010 in the
National Defense Authorization Act for Fiscal Year 2010 (P.L.
111-84). 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; 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 clarify that the USMMA is permitted to
use appropriated funds for research purposes associated with
maritime-related matters. The bill would also require the
Secretary to submit a report on future marine transportation
system needs, factoring in investment levels, environmental
management, and intercoastal and inland waterways. It would
also require the Secretary to assess the potential of
container-on-barge transportation. Additionally, the bill would
broaden the eligibility of the Short Sea Transportation
Initiative by including increased efficiency as a way to make
routes and projects eligible for the program. This bill makes
modifications to the recycling and donation program for
obsolete National Defense Reserve Fleet Vessels by making
acquisitions explicitly available to recycling operations. The
bill would also create a Green Ships Program within MARAD to
identify, evaluate, demonstrate, or improve technologies likely
to achieve environmental improvements.
Legislative History
S. 3566 was introduced by Senator Lautenberg on July 12,
2010, and is cosponsored by Senator Rockefeller, Senator
Hutchison, and Senator Thune. The bill was amended by Senator
Inouye to revise portions of the Green Ship Program. The Senate
Committee on Commerce, Science, and Transportation reported the
bill favorably as amended on July 15, 2010.
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:
September 17, 2010.
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. 3566, the Maritime
Administration Authorization Act of Fiscal Year 2011.
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. 3566--Maritime Administration Authorization Act for Fiscal Year 2011
Summary: S. 3566 would authorize appropriations for fiscal
year 2011 for programs carried out by the Maritime
Administration (MARAD). Assuming appropriation of the
authorized amounts, CBO estimates that implementing S. 3566
would cost $169 million over the 2011-2015 period. Enacting S.
3566 would not affect revenues or direct spending; therefore,
pay-as-you-go procedures do not apply.
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. 3566 is shown in the following table.
The costs of this legislation fall within budget function 400
(transportation).
----------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
-------------------------------------------------------------
2011 2012 2013 2014 2015 2011--2015
----------------------------------------------------------------------------------------------------------------
CHANGES IN SPENDING SUBJECT TO APPROPRIATION
Authorization Level............................... 169 0 0 0 0 169
Estimated Outlays................................. 116 28 22 3 0 169
----------------------------------------------------------------------------------------------------------------
Note: The proposed authorization level does not include amounts specified in the legislation for maritime loan
guarantees or payments to shipping companies under the maritime security program because such amuonts are
authorized for 2011 by existing statute.
Basis of estimate: For this estimate, CBO assumes that S.
3566 will be enacted in 2010 and that the amounts authorized by
the bill will be appropriated for 2011. Estimated outlays are
based on historical spending patterns for MARAD activities.
CBO estimates that implementing S. 3566 would cost $169
million over the 2011-2015 period, including $159 million for
MARAD operations and training and $10 million for the agency's
program to dispose of obsolete vessels in the National Defense
Reserve Fleet.
Section 7 of the legislation would authorize MARAD to
establish a green ship program to study technologies to reduce
pollution from ships. Under the bill, MARAD could finance the
program using donations or amounts appropriated for that
purpose. For this estimate, CBO assumes that the green ship
program would be funded, as it currently is, through
appropriations to the Operations and Training account. For
fiscal year 2010, MARAD received an appropriation of about $3
million for the program.
Finally, S. 3566 would authorize appropriations for other
MARAD programs, including $174 million for subsidies to U.S.
flag vessels under the maritime security program and $4 million
for the costs of administering maritime loan guarantees. Those
amounts are not included in this cost estimate, however,
because they are already authorized under current law.
Pay-As-You-Go considerations: None.
Intergovernmental and private-sector impact: S. 3566
contains no intergovernmental or private-sector mandates as
defined in UMRA and would impose no costs on state, local, or
tribal governments.
Previous CBO estimate: On May 26, 2010, CBO transmitted a
cost estimate for H.R. 5136, the National Defense Authorization
Act for Fiscal Year 2011, as ordered reported by the House
Committee on Armed Services on May 21, 2010. H.R. 5136 also
would authorize funding for MARAD operations and ship disposal,
but at a lower level than under S. 3566. On June 21, 2010, CBO
transmitted a cost estimate for S. 3454, the National Defense
Authorization Act for Fiscal Year 2011, as ordered reported by
the Senate Committee on Armed Services on June 4, 2010. That
legislation also authorized MARAD programs but did not specify
authorization levels. The cost estimates for the bills reflect
those differences.
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
In accordance with paragraph 11(b) of rule XXVI of the
Standing Rules of the Senate, the Committee provides the
following evaluation of the regulatory impact of the
legislation, as reported:
NUMBER OF PERSONS COVERED
S. 3566 as reported by the Committee would authorize
appropriations to continue existing Maritime Administration
programs and make several changes to current law. The bill
would have little, if any, regulatory impact.
ECONOMIC IMPACT
S. 3566 would not have a significant impact on the nation's
economy.
PRIVACY
S. 3566 would have no impact on the personal privacy of
individuals.
PAPERWORK
S. 3566, as reported, should not increase paperwork
requirements for 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 the
following identification of congressionally directed spending
items contained in the bill, as reported:
Section-by-Section Analysis
Section 1. Short Title, Amendment of Title 46, United States Code;
Table of Contents
Section 1 would state the short title, the ``Maritime
Administration Authorization Act for Fiscal Year 2011,'' as
well as clarify that any amendments are to Title 46 United
States Code, unless otherwise stated.
Section 2. Authorization of Appropriations
Section 2 would authorize appropriations for Operations and
Training, including at the USMMA and State Maritime Schools;
Title XI Loans, Ship Disposal, and the Maritime Security
Program.
Section 3. Research Authority
Section 3 would give the USMMA the explicit authority to
conduct research with respect to maritime-related matters.
Section 4. Marine Transportation System
Section 4 would require the Secretary of Transportation, in
consultation with the Secretary of Defense and the commanding
officer of the Army Corps of Engineers, and in concurrence with
the U.S. Coast Guard, to submit a report on the status of the
nation's coastal and inland waterways. The report must describe
the state of marine transportation infrastructure; provide
estimates of the investment levels required to maintain and
improve the infrastructure; and describe the overall
environmental management of the maritime transportation system.
This section would also allow the Secretary to investigate,
make determinations concerning, and develop a repository of
statistical information relating to intercoastal water
transportation.
Section 4 would also require MARAD to assess the potential
for using container-on-barge transportation on the inland
waterways system and submit a report with MARAD's findings,
conclusions, and recommendations. The factors to be considered
in the assessment include: environmental benefits of increasing
container-on-barge movements; regional differences in the
inland waterways system; existing programs for establishing
awareness of deep sea shipping operations; mechanisms to ensure
that the implementation of the plan would not be inconsistent
with the antitrust laws; and potential frequency of service at
inland river ports.
Section 5. Amendments to the Short Sea Transportation Initiative
Section 5 would broaden the benefits of using America's
Marine Highway beyond surface congestion reduction to include
the more efficient use of the Nation's waterways. The Secretary
of Transportation would be authorized to designate a project as
a short sea shipping project if it would provide transportation
services for passengers or freight that may reduce congestion
on landside infrastructure or lead to other public benefits.
Section 6. Recycling of National Defense Reserve Fleet Vessels
Section 6 would facilitate disposal, through recycling, of
obsolete National Defense Reserve Fleet vessels by making
acquisitions explicitly available to recycling operations. This
provision would enable exceptions to apply to contracts for
``disposal for recycling and all contracts related thereto
(including, but not limited to, contracts for towing, dry-
docking, sale or purchase of services for recycling, vessel
management).''
Section 7. Green Ships Program
Section 7 would create a programmatic framework for targeted
maritime environmental study and assessment, capitalizing on
the availability of MARAD vessels as analysis and testing
platforms and employment of MARAD administrative, engineering,
and scientific staff to carry out and coordinate environmental
work. This would also include partnerships and cooperative
efforts with academic, public and non-governmental entities.
The objective of work within the program would be to facilitate
compliance with U.S. environmental law and consistency with
international environmental standards through identification,
evaluation, demonstration or improvement of promising
technologies, the results of which would be broadly
disseminated to the public. Because proving the effectiveness
of certain technologies or the cost-effectiveness of other
technologies are likely to be economically valuable to vessel
operators, evaluation of these technologies should prove to be
a very cost-effective way to encourage technology adoption by
industry. Likely areas of analysis include vessel air emission
reduction, energy audits, feasibility studies of alternative
fuel use, re-engining pilot projects, energy conservation
studies, ballast water treatment technologies, biofouling
management systems, techniques for capturing material generated
during in-water hull cleaning, and compliance monitoring
methods.
Section 8. Technical Corrections
Section 8 would make a technical change to Section 57103 of
title 46, U.S.C. regarding obsolete National Defense Reserve
Fleet vessels to allow for the donation of property.
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 40. PUBLIC BUILDINGS, PROPERTY, AND WORKS
SUBTITLE I. FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES
CHAPTER 1. GENERAL
SUBCHAPTER II. SCOPE
Sec. 113. Limitations
(a) In General.--Except as otherwise provided in this
section, the authority conferred by this subtitle is in
addition to any other authority conferred by law and is not
subject to any inconsistent provision of law.
(b) Limitation Regarding the Office of Federal Procurement
Policy Act.--The authority conferred by this subtitle is
subject to the Office of Federal Procurement Policy Act (41
U.S.C. 401 et seq.).
(c) Limitation Regarding Certain Government Corporations and
Agencies.--Sections 121(b) and 506(c) of this title do not
apply to a Government corporation or agency that is subject to
chapter 91 of title 31.
(d) Limitation Regarding Congress.--This subtitle does not
apply to the Senate or the House of Representatives (including
the Architect of the Capitol and any building, activity, or
function under the direction of the Architect). However,
services and facilities authorized by this subtitle shall, as
far as practicable, be made available to the Senate, the House
of Representatives, and the Architect of the Capitol on their
request. If payment would be required for providing a similar
service or facility to an executive agency, payment shall be
made by the recipient, on presentation of proper vouchers, in
advance or by reimbursement (as may be agreed upon by the
Administrator of General Services and the officer or body
making the request). The payment may be credited to the
applicable appropriation of the executive agency receiving the
payment.
(e) Other Limitations.--Nothing in this subtitle impairs or
affects the authority of--
(1) the President under the Philippine Property Act
of 1946 (22 U.S.C. 1381 et seq.);
(2) an executive agency, with respect to any program
conducted for purposes of resale, price support, grants
to farmers, stabilization, transfer to foreign
governments, or foreign aid, relief, or rehabilitation,
but the agency carrying out the program shall, to the
maximum extent practicable, consistent with the
purposes of the program and the effective, efficient
conduct of agency business, coordinate its operations
with the requirements of this subtitle and with
policies and regulations prescribed under this
subtitle;
(3) an executive agency named in chapter 137 of title
10, and the head of the agency, with respect to the
administration of that chapter;
(4) the Secretary of Defense with respect to property
required for or located in occupied territories;
(5) the Secretary of Defense with respect to the
administration of section 2535 of title 10;
(6) the Secretary of Defense and the Secretaries of
the Army, Navy, and Air Force with respect to the
administration of the Strategic and Critical Materials
Stock Piling Act (50 U.S.C. 98 et seq.);
(7) the Secretary of State under the Foreign Service
Buildings Act, 1926 (22 U.S.C. 292 et seq.);
(8) the Secretary of Agriculture under--
(A) the Richard B. Russell National School
Lunch Act (42 U.S.C. 1751 et seq.);
(B) the Farmers Home Administration Act of
1946 (ch. 964, 60 Stat. 1062);
(C) section 32 of the Act of August 24, 1935
(7 U.S.C. 612c), with respect to the
exportation and domestic consumption of
agricultural products;
(D) section 201 of the Agricultural
Adjustment Act of 1938 (7 U.S.C. 1291); or
(E) section 203(j) of the Agricultural
Marketing Act of 1946 (7 U.S.C. 1622(j));
(9) an official or entity under the Farm Credit Act
of 1971 (12 U.S.C. 2001 et seq.), with respect to the
acquisition or disposal of property;
(10) the Secretary of Housing and Urban Development
or the Federal Deposit Insurance Corporation (or an
officer of the Corporation) with respect to the
disposal of--
(A) residential property; or
(B) other property--
(i) acquired or held as part of, or
in connection with, residential
property; or
(ii) held in connection with the
insurance of mortgages, loans, or
savings association accounts under the
National Housing Act (12 U.S.C. 1701 et
seq.), the Federal Deposit Insurance
Act (12 U.S.C. 1811 et seq.), or any
other law;
(11) the Tennessee Valley Authority with respect to
nonpersonal services, with respect to section 501(c) of
this title, and with respect to property acquired in
connection with a program of processing, manufacture,
production, or force account construction, but the
Authority shall, to the maximum extent it considers
practicable, consistent with the purposes of its
program and the effective, efficient conduct of its
business, coordinate its operations with the
requirements of this subtitle and with policies and
regulations prescribed under this subtitle;
(12) the Secretary of Energy with respect to atomic
energy;
(13) the Secretary of Transportation or the Secretary
of Commerce with respect to the disposal of airport
property and airway property (as those terms are
defined in section 47301 of title 49) for use as such
property;
(14) the United States Postal Service;
[(15) the Maritime Administration with respect to the
acquisition, procurement, operation, maintenance,
preservation, sale, lease, charter, construction,
reconstruction, or reconditioning (including outfitting
and equipping incidental to construction,
reconstruction, or reconditioning) of a merchant vessel
or shipyard, ship site, terminal, pier, dock,
warehouse, or other installation necessary or
appropriate for carrying out a program of the
Administration authorized by law or nonadministrative
activities incidental to a program of the
Administration authorized by law, but the
Administration shall, to the maximum extent it
considers practicable, consistent with the purposes of
its programs and the effective, efficient conduct of
its activities, coordinate its operations with the
requirements of this subtitle and with policies and
regulations prescribed under this subtitle;]
(15) the Maritime Administration with respect to the
acquisition, procurement, operation, maintenance,
preservation, sale, lease, charter, construction,
reconstruction, reconditioning (including outfitting
and equipping incidental to construction,
reconstruction, or reconditioning) or disposal for
recycling (including related contracts for towing, dry-
docking, sale or purchase of services for recycling,
and vessel management), of a merchant vessel or
shipyard, ship site, terminal, pier, dock, warehouse,
or other installation necessary or appropriate for
carrying out a program of the Administration authorized
by law or non-administrative activities incidental to a
program of the Administration authorized by law, but
the Administration shall, to the maximum extent it
considers practicable, consistent with the purposes of
its programs and the effective, efficient conduct of
its activities, coordinate its operations with the
requirements of this subtitle and with policies and
regulations prescribed under this subtitle;
(16) the Central Intelligence Agency;
(17) the Joint Committee on Printing, under title 44
or any other law;
(18) the Secretary of the Interior with respect to
procurement for program operations under the Bonneville
Project Act of 1937 (16 U.S.C. 832 et seq.);
(19) the Secretary of State with respect to the
furnishing of facilities in foreign countries and
reception centers within the United States; or
(20) the Office of the Director of National
Intelligence.
TITLE 46. SHIPPING
SUBTITLE V. MERCHANT MARINE
PART A. GENERAL
CHAPTER 501. POLICY, STUDIES, AND REPORTS
Sec. 50109. Miscellaneous studies
(a) Foreign Subsidies.--The Secretary of Transportation shall
investigate, determine, and keep current records of the extent
and character of the governmental aid and subsidies granted by
foreign governments to their merchant marine.
(b) Laws Applicable to Aircraft.--The Secretary shall
investigate, determine, and keep current records of the
provisions of law relating to shipping that should be made
applicable to aircraft engaged in foreign commerce to further
the policy in section 50101 of this title, and any appropriate
legislation in this regard.
(c) Aid for Cotton, Coal, Lumber, and Cement.--The Secretary
shall investigate, determine, and keep current records of the
advisability of enactment of suitable legislation authorizing
the Secretary, in an economic or commercial emergency, to aid
farmers and producers of cotton, coal, lumber, and cement in
any section of the United States in the transportation and
landing of their products in any foreign port, which products
can be carried in dry-cargo vessels by reducing rates, by
supplying additional tonnage to any American operator, or by
operation of vessels directly by the Secretary, until the
Secretary considers the special rate reduction and operation
unnecessary for the benefit of those farmers and producers.
[(d) Intercoastal and Inland Water Transportation.--The
Secretary shall investigate, determine, and keep current
records of intercoastal and inland water transportation,
including their relation to transportation by land and air.]
(d) Marine Transportation System.--
(1) Report on waterways.--Not later than July 31,
2012, the Secretary, in consultation with the Secretary
of Defense and the commanding officer of the Army Corps
of Engineers, and with the concurrence of the Secretary
of the department in which the Coast Guard is
operating, shall submit a report to the Senate
Committee on Commerce, Science, and Transportation and
the House of Representatives Committees on Armed
Services and on Transportation and Infrastructure on
the status of the Nation's coastal and inland waterways
that--
(A) describes the state of the United States'
marine transportation infrastructure, including
intercoastal and inland waterway
infrastructure;
(B) provides estimates of the investment
levels required--
(i) to maintain the infrastructure;
and
(ii) to improve the infrastructure;
and
(C) describes the overall environmental
management of the maritime transportation
system and the integration of environmental
stewardship into the overall system.
(2) Intercoastal and inland water transportation.--
The Secretary may investigate, make determinations
concerning, and develop a repository of statistical
information relating to intercoastal water
transportation, including its relationship to
transportation by land and air to facilitate research,
assessment, and maintenance of the maritime
transportation system.
(3) Authorization of appropriations.--There are
authorized to be appropriated to the Secretary such
sums as may be necessary to carry out this subsection.
(e) Obsolete Tonnage and Tramp Service.--The Secretary shall
make studies and reports to Congress on--
(1) the scrapping or removal from service of old or
obsolete merchant tonnage owned by the United States
Government or in use in the merchant marine; and
(2) tramp shipping service and the advisability of
citizens of the United States participating in that
service with vessels under United States registry.
(f) Mortgage Loans.--The Secretary shall investigate the
legal status of mortgage loans on vessel property, with a view
to the means of improving the security of those loans and of
encouraging investment in American shipping.
CHAPTER 503. OTHER GENERAL PROVISIONS
Sec. 50307. Green ships program
(a) In General.--The Secretary may establish a green ships
program to engage in the environmental study and assessment of
emerging marine technologies through the use of public vessels
under the control of the Maritime Administration or private
vessels under United States registry. The program shall--
(1) identify, evaluate, demonstrate, or improve
emerging marine technologies likely to achieve
environmental improvements through reductions of air
and water emissions, increased fuel economy, or control
of aquatic invasive species; and
(2) be coordinated with the Environmental Protection
Agency, the United States Coast Guard, or State
agencies as appropriate, to develop and approve a
validation and testing regime to certify or validate
emerging technologies that demonstrate significant
environmental benefits.
(b) Funding.--In carrying out the program the Secretary may
apply such funds as may be appropriated or such funds or
resources as may become available by gift, cooperative
agreement, or otherwise for the purposes of the program and its
administration.
(c) Reports.--The Secretary shall submit an annual report to
the Senate Committee on Commerce, Science, and Transportation
and the House of Representatives Committee on Transportation
and Infrastructure on the activities, expenditures, and results
of the program during the preceding fiscal year.
PART B. MERCHANT MARINE SERVICE
CHAPTER 513. UNITED STATES MERCHANT MARINE ACADEMY
Sec. 51301. Maintenance of the Academy
The Secretary of Transportation shall maintain the United
States Merchant Marine Academy as an institution of higher
education to provide instruction to individuals to prepare them
for service in the merchant marine of the United [States.]
States, to conduct research with respect to maritime-related
matters, and to provide such other appropriate academic
support, assistance, training, and activities in accordance
with the provisions of this chapter as the Secretary may
authorize.
PART D. PROMOTIONAL PROGRAMS
CHAPTER 556. SHORT SEA TRANSPORTATION
Sec. 55601. Short sea transportation program
(a) Establishment.--The Secretary of Transportation shall
establish a short sea transportation program and designate
short sea transportation projects to be conducted under the
[program to mitigate landside congestion.] program.
(b) Program Elements.--The program shall encourage the use of
short sea transportation through the development and expansion
of--
(1) documented vessels;
(2) shipper utilization;
(3) port and landside infrastructure; and
(4) marine transportation strategies by State and
local governments.
(c) Short Sea Transportation Routes.--The Secretary shall
designate short sea transportation routes as extensions of the
surface transportation system to focus public and private
efforts [to use the waterways to relieve landside congestion
along coastal corridors.] to make more efficient use of the
Nation's waterways. The Secretary may collect and disseminate
data for the designation and delineation of short sea
transportation routes.
[(d) Project Designation.--The Secretary may designate a
project to be a short sea transportation project if the
Secretary determines that the project may--
(1) offer a waterborne alternative to available
landside transportation services using documented
vessels; and
(2) provide transportation services for passengers or
freight (or both) that may reduce congestion on
landside infrastructure using documented vessels.
(e) Elements of Program.--For a short sea transportation
project designated under this section, the Secretary may--
(1) promote the development of short sea
transportation services;
(2) coordinate, with ports, State departments of
transportation, localities, other public agencies, and
the private sector and on the development of landside
facilities and infrastructure to support short sea
transportation services; and
(3) develop performance measures for the short sea
transportation program.]
(d) Project Designation.--The Secretary may designate a
project as a short sea transportation project if the Secretary
determines that the project will provide transportation
services for passengers or freight (or both) that may reduce
congestion on landside infrastructure or lead to other public
benefits, as determined by the Secretary, using documented
vessels.
(f) Multistate, State and Regional Transportation Planning.--
The Secretary, in consultation with Federal entities and State
and local governments, shall develop strategies to encourage
the use of short sea transportation for transportation of
passengers and cargo. The Secretary shall--
(1) assess the extent to which States and local
governments include short sea transportation and other
marine transportation solutions in their transportation
planning;
(2) encourage State departments of transportation to
develop strategies, where appropriate, to incorporate
short sea transportation, ferries, and other marine
transportation solutions for regional and interstate
transport of freight and passengers in their
transportation planning; and
(3) encourage groups of States and multi-State
transportation entities to determine how short sea
transportation can address congestion, bottlenecks, and
other interstate transportation challenges.
(g) Grants.--
(1) In general.--The Secretary shall establish and
implement a short sea transportation grant program to
implement projects or components of a project
designated under subsection (d).
(2) Applications.--In order to receive a grant under
the program, an applicant shall--
(A) submit an application to the Secretary,
in such form and manner, at such time, and
containing such information as the Secretary
may require; and
(B) demonstrate to the satisfaction of the
Secretary that--
(i) the project is financially
viable;
(ii) the funds received will be spent
efficiently and effectively; and
(iii) a market exists for the
services of the proposed project as
evidenced by contracts or written
statements of intent from potential
customers.
(3) Non-Federal share.--An applicant shall provide at
least 20 percent of the project costs from non-Federal
sources. In awarding grants under the program, the
Secretary shall give a preference to those projects or
components that present the most financially viable
transportation services and require the lowest
percentage Federal share of the costs.
Sec. 55605. Short sea transportation defined
In this chapter, the term ``short sea transportation'' means
the carriage [by vessel] by documented 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 or
its territories and unloaded either at another
port in the United States or its territories 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 or its
territories.
PART F. GOVERNMENT-OWNED MERCHANT VESSELS
CHAPTER 571. GENERAL AUTHORITY
[Sec. 57103. Sale of obsolete vessels in National Defense Reserve
Fleet]
Sec. 57103. Donation of non-retention vessel in the National Defense
Reserve Fleet
(a) In General.--The Secretary of Transportation may convey
the right, title, and interest of the United States Government
in any vessel of the National Defense Reserve Fleet that has
been identified by the Secretary as an obsolete vessel of
insufficient value to warrant its further preservation, if the
recipient--
(1) is a non-profit organization, a State, or a
municipal corporation or political subdivision of a
State;
(2) agrees not to use, or allow others to use, the
vessel for commercial transportation purposes;
(3) agrees to make the vessel available to the
Government whenever the Secretary indicates that it is
needed by the Government;
(4) agrees to hold the Government harmless for any
claims arising from exposure to asbestos,
polychlorinated biphenyls, lead paint, or other
hazardous substances after conveyance of the vessel,
except for claims arising from use of the vessel by the
Government;
(5) has a conveyance plan and a business plan that
describes the intended use of the vessel, each of which
has been submitted to and approved by the Secretary;
(6) has provided proof, as determined by the
Secretary, of resources sufficient to accomplish the
transfer, necessary repairs and modifications, and
initiation of the intended use of the vessel; and
(7) agrees that when the recipient no longer requires
the vessel for use as described in the business plan
required under paragraph (5)--
(A) the recipient will, at the discretion of
the Secretary, reconvey the vessel to the
Government in good condition except for
ordinary wear and tear; or
(B) if the Board of Trustees of the recipient
has decided to dissolve the recipient according
to the laws of the State in which the recipient
is incorporated, then--
(i) the recipient shall distribute
the vessel, as an asset of the
recipient, to a person that has been
determined exempt from taxation under
section 501(c)(3) of the Internal
Revenue Code of 1986 (26 U.S.C.
501(c)(3)), or to the Federal
Government or a State or local
government for a public purpose; and
(ii) the vessel shall be disposed of
by a court of competent jurisdiction of
the county in which the principal
office of the recipient is located, for
such purposes as the court shall
determine, or to such organizations as
the court shall determine are organized
exclusively for public purposes.
(b) Other Equipment.--At the Secretary's discretion,
additional equipment from other obsolete vessels of the Fleet
may be conveyed to assist the recipient with maintenance,
repairs, or modifications.
(c) Additional Terms.--The Secretary may require any
additional terms the Secretary considers appropriate.
(d) Delivery of Vessel.--If conveyance is made under this
section, the vessel shall be delivered to the recipient at a
time and place to be determined by the Secretary. The vessel
shall be conveyed in an ``as is'' condition.
(e) Limitations.--If at any time prior to delivery of the
vessel to the recipient, the Secretary determines that a
different disposition of the vessel would better serve the
interests of the Government, the Secretary shall pursue the
more favorable disposition of the obsolete vessel and shall not
be liable for any damages that may result from an intended
recipient's reliance upon a proposed transfer.
(f) Reversion.--The Secretary shall include in any conveyance
under this section terms under which all right, title, and
interest conveyed by the Secretary shall revert to the
Government if the Secretary determines the vessel has been used
other than as described in the business plan required under
subsection (a)(5).