United States marine highway program

(a)

In general

Section 55601 of title 46, United States Code, is amended to read as follows:

55601.

United States marine highway program

(a)

Program

(1)

Establishment

The Maritime Administrator shall establish a marine highway program to be known as the United States marine highway program. Under such program, the Maritime Administrator shall—(A)designate marine highway routes as extensions of the surface transportation system under subsection (b); and(B)subject to the availability of appropriations, make grants and enter into contracts and cooperative agreements under subsection (c).(2)

Program activities

In carrying out the marine highway program established under paragraph (1), the Maritime Administrator may—(A)coordinate with ports, State departments of transportation, localities, other public agencies, and the private sector on the development of landside facilities and infrastructure to support marine highway transportation;(B)develop performance measures for such marine highway program;(C)collect and disseminate data for the designation and delineation of marine highway routes under subsection (b); and(D)conduct research on solutions to impediments to marine highway services eligible for assistance under subsection (c)(1).(b)

Designation of marine highway routes

(1)

Authority

The Maritime Administrator may designate or modify a marine highway route as an extension of the surface transportation system if—(A)such a designation or modification is requested by the Governor of a State or territory; and(B)the Maritime Administrator determines such marine highway route satisfies at least one covered function under subsection (d).(2)

Determination

Not later than 180 days after the date on which the Maritime Administrator receives a request for designation or modification of a marine highway route under paragraph (1), the Maritime Administrator shall make a determination of whether to make the requested designation or modification.(3)

Notification

Not later than 14 days after the date on which the Maritime Administrator makes the determination whether to make the requested designation or modification, the Maritime Administrator shall send the requester a notification of the determination.(4)

Map

Not later than 120 days after the date of enactment of the United States Marine Highway Promotion Act, and thereafter each time a marine highway route is designated or modified, the Administrator shall make publicly available a map showing the location of marine highway routes, including such routes along the coasts, in the inland waterways, and at sea.(c)

Assistance for marine highway services

(1)

In general

The Maritime Administrator may make grants to, or enter into contracts or cooperative agreements with an applicant to implement a marine highway service or component of a marine highway service, if the Administrator determines the service—(A)satisfies at least one covered function under subsection (d); (B)uses vessels documented under chapter 121;(C)develops, expands, or promotes—(i)marine highway transportation services;(ii)shipper utilization of marine highway transportation; or(iii)infrastructure for which assistance is not available under section 5307(h) of title 49; or(D)implements strategies developed under section 55603.(2)

Application

To be eligible to receive a grant or enter into a contract or cooperative agreement under this subsection to implement a marine highway service, an applicant shall—(A)submit an application in such form and manner, at such time, and containing such information as the Maritime Administrator may require, including a comprehensive description of—(i)the regions to be served by the marine highway service;(ii)the marine highway route that the service will use, which may include connection to existing or planned transportation infrastructure and intermodal facilities, key navigational factors such as available draft, channel width, bridge air draft, or lock clearance, and any foreseeable impacts on navigation or commerce, and a map of the proposed route;(iii)the marine highway service supporters, which may include business affiliations, private sector stakeholders, State departments of transportation, metropolitan planning organizations, municipalities, or other governmental entities (including Tribal governments), as applicable;(iv)the estimated volume of passengers or cargo using the service, and predicted changes in such volume during the 5-year period following the date of the application;(v)the need for the service;(vi)the definition of the success goal for the service, such as volumes of cargo or passengers moved, or contribution to environmental mitigation, safety, reduced vehicle miles traveled, or reduced maintenance and repair costs;(vii)the methodology for implementing the service, including a description of the proposed operational framework of the service including the origin, destination, and any intermediate stops on the route, transit times, vessel types, and service frequency; and(viii)any existing programs or arrangements that can be used to supplement or leverage assistance under the program; and(B)demonstrate to the satisfaction of the Maritime Administrator that—(i)the marine highway service is financially viable;(ii)the funds or other assistance provided under this subsection will be spent or used efficiently and effectively; and(iii)a market exists for the services of the proposed marine highway service, as evidenced by contracts or written statements of intent from potential customers.(3)

Timing of grant notice

The Maritime Administrator shall post a Notice of Funding Opportunity regarding grants, contracts, and cooperative agreements under this subsection not more than 90 days after the date of enactment of the appropriations Act for the fiscal year concerned.(4)

Grant application feedback

Following the award of grants for a particular fiscal year, the Maritime Administrator may provide feedback to applicants to help applicants improve future applications if the feedback is requested by that applicant.(5)

Timing of grants

The Maritime Administrator shall award grants, contracts, and cooperative agreements under this subsection not later than 270 days after the date of the enactment of the appropriations Act for the fiscal year concerned.(6)

Non-Federal share

(A)

In general

An applicant shall provide not less than 20 percent of the costs from non-Federal sources, except as provided in subparagraph (B). (B)

Rural areas

The Maritime Administrator may increase the Federal share of service costs above 80 percent for a service located in a rural area.(C)

Preference

In awarding grants, or entering in contracts or cooperative agreements under this subsection, the Maritime Administrator shall give a preference to marine highway services that present the most financially viable transportation services and require the lowest percentage Federal share of the costs.(7)

Reuse of unexpended grant funds

Notwithstanding paragraph (5), amounts awarded under this subsection that are not expended by the recipient for 3 fiscal years after the award is made shall be returned to the Maritime Administrator and remain available to make grants and enter into contracts and cooperative agreements under this subsection.(8)

Administrative costs

Not more than 3 percent of the total amount made available to carry out this subsection for any fiscal year may be used for the necessary administrative costs associated with grants, contracts, and cooperative agreements made under this subsection.(9)

Procedural safeguards

The Maritime Administrator, in consultation with the Office of the Inspector General, shall issue guidelines to establish appropriate accounting, reporting, and review procedures to ensure that—(A)amounts made available to carry out this subsection are used for the purposes for which they were made available;(B)recipients of funds under this subsection (including through grants, contracts, or cooperative agreements) have properly accounted for all expenditures of such funds; and(C)any such funds that are not obligated or expended for the purposes for which they were made available are returned to the Administrator.(10)

Conditions on provision of funds

The Maritime Administrator may not award funds an applicant under this subsection unless the Maritime Administrator determines that—(A)sufficient funding is available to meet the non-Federal share requirement of paragraph (6);(B)the marine highway service for which such funds are provided will be completed without unreasonable delay; and(C)the recipient of such funds has authority to implement the proposed marine highway service.(d)

Covered functions

A covered function under this subsection is one of the following:(1)Promotion of marine highway transportation.(2)Provision of a coordinated and capable alternative to landside transportation.(3)Mitigation or relief of landside congestion.(e)

Prohibited uses

Funds awarded under this section may not be used to—(1)raise sunken vessels, construct buildings or other physical facilities, or acquire land unless such activities are necessary for the establishment or operation of a marine highway service implemented using grant funds provided, or pursuant to a contract or cooperative entered into under, subsection (c); or(2)distribute resources outside the United States.(f)

Geographic distribution

In making grants, contracts, and cooperative agreements under this section the Maritime Administrator shall take such measures so as to ensure an equitable geographic distribution of funds. (g)

Audits and examinations

All recipients (including recipients of grants, contracts, and cooperative agreements) under this section shall maintain such records as the Maritime Administrator may require and make such records available for review and audit by the Maritime Administrator.