[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5991 Introduced in House (IH)]

<DOC>






118th CONGRESS
  1st Session
                                H. R. 5991

 To require the Commandant of the Coast Guard and the Commissioner of 
 U.S. Customs and Border Protection to make certain determinations in 
            enforcing the Jones Act, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            October 19, 2023

              Mr. Garamendi introduced the following bill

                            October 25, 2023

Referred to the Committee on Transportation and Infrastructure, and in 
  addition to the Committee on Rules, for a period to be subsequently 
   determined by the Speaker, in each case for consideration of such 
 provisions as fall within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
 To require the Commandant of the Coast Guard and the Commissioner of 
 U.S. Customs and Border Protection to make certain determinations in 
            enforcing the Jones Act, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Close Agency Loopholes to the Jones 
Act of 2023''.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) In 1920, Congress enacted the Merchant Marine Act 
        (chapters 121 and 551 of title 46, United States Code), 
        commonly referred to as the ``Jones Act''.
            (2) In 1953, Congress enacted the Outer Continental Shelf 
        Lands Act (43 U.S.C. 1331 et seq.) applying the Constitution, 
        laws, and civil and political jurisdiction of the United States 
        to the outer Continental Shelf.
            (3) In 2020, Congress enacted section 9503 of the William 
        M. (Mac) Thornberry National Defense Authorization Act for 
        Fiscal Year 2021 (Public Law 116-283) affirming that 
        application of the Constitution, laws, and civil and political 
        jurisdiction of the United States to the outer Continental 
        Shelf also applies to non-mineral energy resources and 
        exploring for, developing, producing, transporting, or 
        transmitting such resources.
            (4) Therefore, the Jones Act prohibits the use of a non-
        Jones Act qualified vessel for the provision of any coastwise 
        transportation of merchandise to or from a port of the United 
        States (including territories or possessions to which the 
        coastwise laws apply) to any point on the outer Continental 
        Shelf, or between any two points on the outer Continental 
        Shelf.
            (5) U.S. Customs and Border Protection (hereinafter 
        referred to as ``CBP'') is responsible for interpreting and 
        enforcing the Jones Act. CBP has issued ruling letters and 
        other interpretative guidance to requesting parties that 
        provide the description of proposed activities.
            (6) Unlike most federal agencies, CBP is required by 
        section 625(c) of the Tariff Act of 1930 (19 U.S.C. 1625(c)) to 
        follow its past interpretive guidance and treatments of 
        ``substantially identical transactions,'' unless it institutes 
        a public notice and comment process to modify or revoke that 
        interpretative guidance. As a result, CBP and market 
        participants treat as binding ruling letters and interpretative 
        guidance in addressing whether and how the Jones Act applies in 
        substantially identical factual situations.
            (7) Thus, CBP's ruling letters--even if legally incorrect--
        have substantial impacts: When CBP purports to authorize a 
        foreign vessel to transport merchandise between coastwise 
        points, unless ordered by a Federal court to rescind such 
        ruling letters, CBP does not take enforcement action against 
        other foreign vessels engaging in substantially identical 
        transactions, and vessel operators accordingly rely on CBP's 
        past ruling letters and guidance issued to other parties.
            (8) Over several decades, CBP has purported to create an 
        array of exemptions from the prohibitions of the Jones Act for 
        the benefit of foreign vessels.
            (9) On December 11, 2019, CBP published Customs Bulletin 
        and Decisions, Vol. 53, No. 45 (hereinafter referred to as the 
        ``2019 Decision'') revoking a handful of its interpretations, 
        recognizing that the analyses employed therein were 
        inconsistent with the Jones Act and original congressional 
        intent, including by using statutory language ``out of 
        context,'' having been superseded by amendments, or being 
        predicated on CBP-created distinctions that had always been 
        ``irrelevant'' under the Jones Act.
            (10) However, the 2019 Decision still left in force many 
        ruling letters inconsistent with the Jones Act and original 
        congressional intent, espousing the same unlawful doctrines, 
        revoked others that properly interpreted the Jones Act, and 
        created several new loopholes that purport to immunize much of 
        the same foreign vessel activities that are now, and have 
        always been, prohibited under the Jones Act.
            (11) Thus, CBP has created invalid exemptions from the 
        prohibition embodied in the Jones Act, using a variety of new 
        and old doctrines inconsistent with original congressional 
        intent. In 2014, the Supreme Court of the United States found 
        in Utility Air Regulatory Group v. Environmental Protection 
        Agency (573 U.S. 302, 328) that it is a ``core administrative 
        law principle that an agency may not rewrite clear statutory 
        terms to suit its own sense of how the statute should 
        operate''.
            (12) These invalid, ultra vires doctrines, and their uses, 
        include--
                    (A) an unlawfully broad interpretation of ``vessel 
                equipment'' which conflicts with Congress' statutory 
                description of ``merchandise,'' and the explicit, 
                limited statutory exemption;
                    (B) the ``paid out not unladen'' doctrine, which 
                provides that pipe or cable laying operations are not 
                coastwise trade subject to the Jones Act--even when the 
                pipe is laid between two coastwise points, and in spite 
                of Congress' statutory prohibition against foreign 
                vessels performing ``any part of the transportation by 
                water'' of merchandise;
                    (C) the ``paid out not unladen'' doctrine is also 
                used by foreign vessel operators to justify the 
                transportation of merchandise attached to the paid out 
                pipe or cable;
                    (D) the ``lifting operations'' exemption, which 
                purports to permit self-propelled movements by a vessel 
                when using a crane or like equipment to install or 
                remove merchandise on or from offshore facilities or 
                subsea infrastructure;
                    (E) the ``decommissioning activity'' exemption, 
                which purports that merchandise transported as a result 
                of decommissioning--i.e., the restoration of the sea-
                floor and the water surface by plugging and abandoning 
                the well and removing the installation and facility--is 
                not subject to the Jones Act;
                    (F) the ``offshore research vessel'' 
                misapplications, which improperly extends the exclusion 
                for oceanographic or limnological research vessels to 
                commercial research activities that directly support 
                the exploration for, or development, production, 
                transportation, or transmission of, resources, on the 
                outer Continental Shelf; and
                    (G) the ``pristine seabed'' exemption, where CBP 
                has purported to hold that Outer Continental Shelf 
                Lands Act's explicit application to the ``subsoil and 
                seabed'' of the outer Continental Shelf does not 
                include the ``pristine seabed''.
            (13) If a ruling letter is contrary to the statute's plain 
        text and the expressed intent of Congress, or found 
        unpersuasive by a Federal court, it will be invalidated as 
        arbitrary and capricious.
            (14) Federal courts have not squarely addressed the 
        interpretations contained in these CBP ruling letters and other 
        guidance, and thus have never upheld these interpretations as 
        valid and authoritative.

SEC. 3. PRECLUDING EXEMPTIONS FROM JONES ACT REQUIREMENTS FOR CERTAIN 
              FOREIGN VESSELS.

    The Secretary may not provide any exemption from the requirements 
of chapters 121 and 551 of title 46, United States Code (commonly 
referred to as the ``Jones Act''), to the owner of a foreign vessel 
engaging in commercial transportation services to directly support the 
exploration for, or development, production, transportation, or 
transmission of, resources, including non-mineral energy resources, 
from a planning or leasing area designated by the Secretary of the 
Interior under the Outer Continental Shelf Lands Act (43 U.S.C. 1331 et 
seq.).

SEC. 4. OCEANOGRAPHIC RESEARCH VESSELS.

    (a) In General.--In enforcing chapter 551 of title 46, United 
States Code, the Secretary may not determine that a vessel engaging in 
commercial research activities to directly support the exploration for, 
or development, production, transportation, or transmission of, 
resources, including non-mineral energy resources, from a planning or 
leasing area designated by the Secretary of the Interior under the 
Outer Continental Shelf Lands Act (43 U.S.C. 1331 et seq.) is not 
engaged in trade or commerce under such chapter.
    (b) Oceanographic Research Vessel Clarification.--Section 50503 of 
title 46, United States Code is amended by inserting ``, except that 
any vessel engaging in commercial research activities to directly 
support the exploration for, or development, production, 
transportation, or transmission of, resources, including non-mineral 
energy resources, from a planning or leasing area designated by the 
Secretary of the Interior under the Outer Continental Shelf Lands Act 
(43 U.S.C. 1331 et seq.) may be determined to be engaged in trade or 
commerce under this section'' after ``trade or commerce''.
    (c) Designation.--The Commandant of the Coast Guard shall deny any 
request from a foreign vessel to be designated as an oceanographic 
research vessel for any such vessel engaging in commercial research 
activities to directly support the exploration for, or development, 
production, transportation, or transmission of, resources, including 
non-mineral energy resources, from a planning or leasing area 
designated by the Secretary of the Interior under the Outer Continental 
Shelf Lands Act (43 U.S.C. 1331 et seq.).
    (d) Revocation or Modification of Certain Ruling Letters.--
            (1) In general.--The Secretary shall revoke or modify, as 
        appropriate, the following headquarters ruling letters:
                    (A) HQ H216579 (May 15, 2012).
                    (B) HQ H205655 (March 20, 2012).
                    (C) HQ 112830 (August 12, 1993).
                    (D) HQ 110364 (September 29, 1989).
            (2) Substantially identical transatcions.--The Secretary 
        shall revoke or modify, as appropriate, any treatments, 
        including ruling letters, accorded by the Secretary to 
        transactions that are substantially identical to the 
        transactions described in the ruling letters listed in 
        paragraph (1).

SEC. 5. U.S. CUSTOMS AND BORDER PROTECTION RULINGS.

    (a) Vessel Equipment.--
            (1) In general.--In enforcing chapter 551 of title 46, 
        United States Code, the Secretary may not apply an 
        interpretation of the terms ``vessel equipment'' or 
        ``equipment'' that conflicts with the definition of the term 
        ``merchandise'' or sections 55105, 55106, 55107, 55108, 55110, 
        55113, and 55115 of such title.
            (2) Revocation or modification of certain ruling letters.--
                    (A) In general.--The Secretary shall revoke or 
                modify, as appropriate, any ruling letters that apply 
                an incorrect interpretation of the terms ``vessel 
                equipment'' or ``equipment'' as described in paragraph 
                (1), including the following headquarters ruling 
                letters:
                            (i) HQ H032757 (July 28, 2008).
                            (ii) HQ H029417 (June 5, 2008).
                            (iii) HQ H004242 (December 22, 2006).
                            (iv) HQ 116078 (February 11, 2004).
                            (v) HQ 115938 (April 1, 2003).
                            (vi) HQ 115771 (August 19, 2002).
                            (vii) HQ 115333 (April 27, 2001).
                            (viii) HQ 115487 (November 20, 2001).
                            (ix) HQ 115381 (June 15, 2001).
                            (x) HQ 114435 (August 6, 1998).
                            (xi) HQ 114305 (March 31, 1998).
                            (xii) HQ 113841 (February 28, 1997).
                            (xiii) HQ 113137 (June 27, 1994).
                            (xiv) HQ 112218 (July 22, 1992).
                            (xv) HQ 111889 (February 11, 1992).
                            (xvi) HQ 111892 (September 16, 1991).
                            (xvii) HQ 110402 (August 18, 1989).
                            (xviii) HQ 108223 (March 13, 1986).
                            (xix) HQ 105644 (June 7, 1982).
                            (xx) HQ 101925 (October 7, 1976).
                    (B) Substantially identical transactions.--The 
                Secretary shall revoke or modify, as appropriate, any 
                treatments, including ruling letters, accorded by the 
                Secretary to transactions that are substantially 
                identical to the transactions described in the ruling 
                letters listed in subparagraph (A).
    (b) Paid Out Not Unladen.--
            (1) In general.--In enforcing chapter 551 of title 46, 
        United States Code, the Secretary may not determine that pipe 
        or cable laying operations, including the transportation of 
        merchandise attached to such pipe or cable, are not subject to 
        such chapter because the vessel pays out the pipe or cable to a 
        coastwise point.
            (2) Revocation or modification of certain ruling letters.--
                    (A) In general.--The Secretary shall revoke or 
                modify, as appropriate, any ruling letters that apply 
                an incorrect determination with respect to pipe or 
                cable laying operations described in paragraph (1), 
                including the following headquarters ruling letters:
                            (i) HQ 115522 (December 3, 2001).
                            (ii) HQ 115487 (November 20, 2001).
                            (iii) HQ 115311 (May 10, 2001).
                            (iv) HQ 115333 (April 27, 2001).
                            (v) HQ 114435 (August 6, 1998).
                            (vi) HQ 114305 (March 31, 1998).
                            (vii) HQ 105644 (June 7, 1982).
                            (viii) HQ 101925 (October 7, 1976) (also 
                        referred to as T.D. 78-387).
                    (B) Substantially identical transactions.--The 
                Secretary shall revoke or modify, as appropriate, any 
                treatments, including ruling letters, accorded by the 
                Secretary to transactions that are substantially 
                identical to the transactions described in the ruling 
                letters listed in subparagraph (A).
    (c) Lifting Operations.--
            (1) In general.--In enforcing chapter 551 of title 46, 
        United States Code, the Secretary may not exempt lifting 
        operations from the requirements of such chapter.
            (2) Revocation or modification of certain agency actions.--
        The Secretary shall--
                    (A) revoke or modify, as appropriate, any ruling 
                letters that apply the exemption described in paragraph 
                (1);
                    (B) modify the Customs Bulletin and Decision issued 
                on December 11, 2019, titled ``Modification and 
                revocation of ruling letters relating to CBP's 
                application of the Jones Act to the transportation of 
                certain merchandise and equipment between coastwise 
                points'' (Customs Bulletin and Decisions, Vol. 53, No. 
                45) to be consistent with paragraph (1); and
                    (C) revoke or modify, as appropriate, any other 
                treatments, including ruling letters, accorded by the 
                Secretary to transactions that are substantially 
                identical to the transactions described in this 
                paragraph.
            (3) Reinstatement of certain ruling letters.--Upon revoking 
        and modifying the agency actions under paragraph (2), the 
        Secretary shall reinstate the following headquarters ruling 
        letters (popularly known as the ``Koff rulings''):
                    (A) HQ H242466 (July 3, 2013).
                    (B) HQ H235242 (November 15, 2012).
                    (C) HQ H225102 (September 24, 2012).
    (d) Installation Activities.--
            (1) In general.--The Secretary shall revoke the following 
        headquarters ruling letters in which the Secretary determined 
        that certain installation activities do not involve 
        transportation of merchandise between points in the United 
        States for purposes of section 55102 of title 46, United States 
        Code:
                    (A) HQ 115185 (November 20, 2000).
                    (B) HQ 115218 (November 30, 2000).
                    (C) HQ 113838 (February 25, 1997).
                    (D) HQ 108442 (August 13, 1986).
            (2) Similar ruling letters.--The Secretary shall revoke or 
        modify, as appropriate, any treatments, including ruling 
        letters, accorded by the Secretary to transactions that are 
        substantially identical to the transactions described in the 
        ruling letters described in paragraph (1).
    (e) Decommissioning.--
            (1) In general.--In enforcing chapter 551 of title 46, 
        United States Code, the Secretary may not exempt merchandise 
        transported as a result of decommissioning an installation or 
        facility on the outer Continental Shelf from the requirements 
        of such chapter.
            (2) Revocation or modification of certain ruling letters.--
        The Secretary shall revoke or modify, as appropriate--
                    (A) any ruling letters that apply the exemption 
                described in paragraph (1), including the headquarters 
                ruling letter HQ H004242 (December 22, 2006); and
                    (B) any treatments, including ruling letters, 
                accorded by the Secretary to transactions that are 
                substantially identical to the transactions described 
                in the ruling letter described in subparagraph (A).
    (f) Subsoil or Seabed Samples.--
            (1) In general.--In enforcing chapter 551 of title 46, 
        United States Code, the Secretary may not determine that--
                    (A) subsoil or seabed samples are not merchandise 
                for purposes of section 55102 of title 46, United 
                States Code; or
                    (B) taking subsoil or seabed samples from the 
                seabed is not considered an installation or other 
                device for purposes of section 4(a)(1) of the Outer 
                Continental Shelf Lands Act (43 U.S.C. 1333(a)(1)).
            (2) Revocation or modification of certain ruling letters.--
                    (A) In general.--The Secretary shall revoke or 
                modify, as appropriate, any ruling letters that apply 
                an incorrect determination described in paragraph (1), 
                including the following headquarters ruling letters:
                            (i) HQ H317289 (March 25, 2021).
                            (ii) HQ 115799 (September 30, 2002).
                            (iii) HQ 116602 (January 30, 2006).
                            (iv) HQ 108442 (August 13, 1986).
                    (B) Substantially identical transactions.--The 
                Secretary shall revoke or modify, as appropriate, any 
                treatments, including ruling letters, accorded by the 
                Secretary to transactions that are substantially 
                identical to the transactions described in the ruling 
                letters listed in subparagraph (A).
    (g) Pristine Seabed.--
            (1) In general.--In enforcing chapter 551 of title 46, 
        United States Code, the Secretary may not determine that such 
        chapter does not apply to--
                    (A) the pristine seabed of the outer Continental 
                Shelf; or
                    (B) articles or devices, including seismic nodes or 
                rock, aggregate, or other scour protection materials, 
                either temporarily or permanently placed onto or 
                embedded into the seabed on the outer Continental 
                Shelf.
            (2) Attached articles.--In enforcing chapter 551 of title 
        46, United States Code, the Secretary shall determine that any 
        articles or devices described in paragraph (1)(B) that are 
        attached to the seabed are merchandise for the purposes of 
        section 55102 of such title.
            (3) Revocation of certain ruling letters.--The Secretary 
        shall revoke or modify, as appropriate, any ruling letters that 
        apply an incorrect determination described in paragraph (1), 
        including the following headquarters ruling letters:
                    (A) HQ H317289 (March 25, 2021).
                    (B) HQ 115799 (September 30, 2002).
            (4) Reinstatement of ruling letter.--Upon revoking and 
        modifying the agency actions under paragraph (3), the Secretary 
        shall reinstate headquarters ruling letter HQ H309186 (January 
        27, 2021).

SEC. 6. PETITIONS BY DOMESTIC INTERESTED PARTIES.

    (a) In General.--Chapter 551 of title 46, United States Code, is 
amended by adding at the end the following:
``Sec. 55124. Petitions by domestic interested parties
    ``(a) Request for Interpretive Ruling.--The Secretary of Homeland 
Security shall, upon written request by an interested party, furnish, 
within 60 days, an interpretive ruling regarding a non-coastwise 
qualified vessel's activities and compliance with Federal laws in the 
internal waters of the United States, the territorial sea, and the 
waters of the outer Continental Shelf, including the vessel's 
compliance with this chapter and section 50503. If the interested party 
believes that the conclusion of such interpretive ruling, or any other 
interpretive ruling regarding the interpretation, application, or 
enforcement of the coastwise laws, is incorrect, such party may file a 
petition with the Secretary setting forth the following:
            ``(1) Such party's understanding of the factual scenario.
            ``(2) The outcome of the decision that such party believes 
        to be proper in the provided factual scenario and the reasons 
        supporting such party's belief.
    ``(b) Determination on Petition.--If, after receipt and 
consideration of a petition filed by such an interested party, the 
Secretary determines that the conclusion reached in the contested 
letter is not correct, the Secretary shall determine the proper outcome 
and notify the petitioner of the Secretary's determination within 60 
days.
    ``(c) Contest by Petitioner.--If the Secretary determines that the 
contested interpretive ruling filed pursuant to subsection (a) is 
correct, the Secretary shall notify the petitioner within 30 days. If 
dissatisfied with the determination of the Secretary, the petitioner 
may file with the Secretary, not later than 30 days after the date of 
the notification, notice that it desires to contest the ruling. Upon 
receipt of notice from the petitioner, the Secretary shall cause 
publication to be made within 7 days of the Secretary's determination 
as presented in the ruling letter.
    ``(d) Review of Interpretive Ruling.--Not later than 90 days after 
the petitioner files the notice of a desire to contest a ruling under 
subparagraph (c), any interested party may commence an action in any 
district court of the United States, subject to the venue requirements 
of section 1391 of title 28, by filing concurrently a summons and 
complaint, each with the content and in the form, manner, and style 
prescribed by the rules of such court, contesting any legal conclusions 
of the Secretary.
    ``(e) Rulemaking.--Not later than 60 days after the date of 
enactment of this section, the Secretary shall issue such regulations 
as are necessary to implement this section.
    ``(f) Definitions.--In this section:
            ``(1) Coastwise qualified vessel.--The term `coastwise 
        qualified vessel' has the meaning given such term in section 
        55108(a).
            ``(2) Interested party.--The term `interested party' 
        means--
                    ``(A) the owner or operator of a vessel engaged in 
                coastwise trade;
                    ``(B) a manufacturer of coastwise qualified 
                vessels;
                    ``(C) a certified union, recognized union, or group 
                of workers or mariners which is representative of an 
                industry engaged or employed in--
                            ``(i) the coastwise trade; or
                            ``(ii) construction of coastwise qualified 
                        vessels;
                    ``(D) a trade or business association of which the 
                majority of members are--
                            ``(i) owners or operators of vessels 
                        engaged in coastwise trade; or
                            ``(ii) manufacturers of coastwise qualified 
                        vessels; or
                    ``(E) an association of which the majority of 
                members are persons described in paragraphs (1) through 
                (4).''.
    (b) Rulemaking.--Not later than 60 days after the date of enactment 
of this Act, the Secretary shall issue such regulations as are 
necessary to implement the amendments made by subsection (a).
    (c) Clerical Amendment.--The analysis for chapter 551 of title 46, 
United States Code, is amended by adding at the end the following:

``55124. Petitions by domestic interested parties.''.

SEC. 7. CONGRESSIONAL REVIEW ACT APPLICABILITY.

    (a) In General.--Notwithstanding section 804(3)(A) of title 5, 
United States Code, for purposes of the application of chapter 8 of 
such title to a covered ruling letter, the term ``rule'' shall be read 
to include such a covered ruling letter.
    (b) Definition.--In this subsection, the term ``covered ruling 
letter'' means a ruling letter issued after the date of enactment of 
this Act.

SEC. 8. NOTIFICATION.

    (a) Advance Notification Required.--Prior to engaging in any 
activity or operations on the outer Continental Shelf, the operator of 
a foreign vessel used in such activity or operations shall file with 
the Secretary a notification describing all activities and operations 
to be performed on the outer Continental Shelf and an identification of 
applicable ruling letters issued by the Secretary that have approved 
the use of a foreign vessel in a substantially similar activity or 
operation.
    (b) Publication of Notices.--
            (1) Publication.--The Secretary shall publish a 
        notification under subsection (a) in the Customs Bulletin and 
        Decisions within 14 days of receipt of such notification.
            (2) Confidential information.--The Secretary shall redact 
        any information exempt from disclosure under section 552 of 
        title 5, United States Code, in a notification published under 
        paragraph (1).

SEC. 9. PUBLICATION OF FINES AND PENALTIES.

    (a) In General.--Section 55102 of title 46, United States Code, is 
amended by adding at the end the following:
    ``(d) Publication of Penalty.--
            ``(1) In general.--Not later than 14 days after the 
        issuance of a pre-penalty notice or a penalty, including a 
        settlement, under subsection (c), the Secretary of Homeland 
        Security shall publish such pre-penalty notice or a 
        notification of such penalty in the Customs Bulletin and 
        Decisions to the party impacted by the penalty.
            ``(2) Contents.--A pre-penalty notice or penalty 
        notification published under paragraph (1) shall include--
                    ``(A) the name and the International Maritime 
                Organization identification number of the vessel that 
                is the subject of the penalty;
                    ``(B) the name of the owner of the vessel that is 
                the subject of the penalty;
                    ``(C) the amount of the fine or value of 
                merchandise seized; and
                    ``(D) a summary of the alleged misconduct and 
                justification for imposing a penalty.''.
    (b) Rulemaking.--Not later than 90 days after the date of enactment 
of this Act, the Secretary shall issue such regulations as are 
necessary to implement the amendments made by subsection (a), 
including--
            (1) regulations regarding the information to be contained 
        in a penalty notification under section 55102(d) of title 46, 
        United States Code (as amended by such subsection); and
            (2) any changes to existing regulations relating to 
        penalties issued by the Secretary.

SEC. 10. PREVAILING WAGE REQUIREMENT.

    (a) In General.--Chapter 81 of title 46, United States Code, is 
amended by adding at the end the following:
``Sec. 8108. Prevailing wage requirement
    ``(a) In General.--The Secretary shall require the owner or 
operator of a covered facility to provide each individual who is 
manning or crewing the covered facility a prevailing wage (as such term 
is defined in section 3141 of title 40) as determined by the Secretary 
of Labor in accordance with subchapter IV of chapter 31 of title 40 
(commonly referred to as the Davis-Bacon Act).
    ``(b) Review of Compliance.--The Secretary shall periodically, but 
not less than once annually, inspect each covered facility to verify 
that the owner or operator of such covered facility is in compliance 
with this section.
    ``(c) Penalty.--The Secretary may impose on the owner or operator 
of a covered facility a civil penalty of $10,000 per day for each day 
the owner or operator is not in compliance with this section.
    ``(d) Definition of Covered Facility.--In this section, the term 
`covered facility' means any vessel, rig, platform, or other vehicle or 
structure, over 50 percent of which is owned by citizens of a foreign 
nation or with respect to which the citizens of a foreign nation have 
the right effectively to control and operates under section 302(a)(3) 
of the Outer Continental Shelf Lands Act (43 U.S.C. 1356(a)(3)).''.
    (b) Rulemaking.--Not later than 90 days after the date of the 
enactment of this Act, the Secretary shall, in consultation with the 
Secretary of Labor, promulgate regulations that specify the prevailing 
wage requirements under section 8108 of title 46, United States Code, 
as added by this section.
    (c) Existing Exemptions.--
            (1) Effect of amendments; termination.--Each exemption 
        under section 30(c)(2) of the Outer Continental Shelf Lands Act 
        (43 U.S.C. 1356(c)(2)) issued before the date of the enactment 
        of this Act--
                    (A) shall not be affected by the amendments made by 
                this section during the 120-day period beginning on the 
                date of the enactment of this Act; and
                    (B) shall not be effective after such period.
            (2) Notification to holders.--Not later than 60 days after 
        the date of the enactment of this Act, the Secretary shall 
        notify all persons that hold an exemption described in 
        paragraph (1) that such exemption will expire as provided in 
        paragraph (1).
    (d) Rule of Construction.--The prevailing wage requirements under 
section 8108 of title 46, United States Code, as added by this section, 
shall not be construed to apply to collective bargaining agreements at 
ports, marine terminals, or similar facilities that are in effect as of 
the date of enactment of this Act.
    (e) Clerical Amendment.--The analysis for chapter 81 of title 46, 
United States Code, is amended by adding at the end the following:

``8108. Prevailing wage requirement.''.

SEC. 11. RULEMAKING ON GARAMENDI AMENDMENT.

    Not later than 90 days after the date of enactment of this Act, the 
Commandant of the Coast Guard shall issue such regulations as are 
necessary to implement the amendments to section 4(a)(1) of the Outer 
Continental Shelf Lands Act (43 U.S.C. 1333(a)(1)) made by section 9503 
of the William M. (Mac) Thornberry National Defense Authorization Act 
for Fiscal Year 2021 (Public Law 116-283).

SEC. 12. RULES OF CONSTRUCTION.

    (a) Outer Continental Shelf Lands Act.--Nothing in this Act may be 
construed to nullify or supersede any other provision of law relating 
to the outer Continental Shelf (as such term is defined in section 2 of 
the Outer Continental Shelf Lands Act (43 U.S.C. 1331)).
    (b) Ruling Letters.--Nothing in this Act may be construed as 
congressional validation of a ruling letter, interpretative guidance, 
doctrine, or other action relating to the enforcement of chapters 121 
and 551 of title 46, United States Code (commonly referred to as the 
``Jones Act'') issued by the Secretary.

SEC. 13. DEFINITIONS.

    In this Act:
            (1) Lifting operations.--The term ``lifting operations'' 
        means self-propelled movements by a vessel when using a crane, 
        or other similar equipment, to install or remove merchandise on 
        or from offshore facilities or subsea infrastructure.
            (2) Merchandise.--The term ``merchandise'' has the meaning 
        given such term in section 55102(a) of title 46, United States 
        Code.
            (3) Oceanographic research vessel.--The term 
        ``oceanographic research vessel'' has the meaning given such 
        term in section 2101 of title 46, United States Code.
            (4) Outer continental shelf.--The term ``outer Continental 
        Shelf'' has the meaning given such term in section 2 of the 
        Outer Continental Shelf Lands Act (43 U.S.C. 1331).
            (5) Ruling letter.--The term ``ruling letter'' means any 
        ruling letter or headquarters ruling letter relating to the 
        enforcement of chapters 121 and 551 of title 46, United States 
        Code (commonly referred to as the ``Jones Act''), issued by the 
        Commissioner of U.S. Customs and Border Protection pursuant to 
        sections 502(a) or 625 of the Tariff Act of 1930 (19 U.S.C. 
        1502(a) and 1625).
            (6) Secretary.--The term ``Secretary'' means the Secretary 
        of Homeland Security, acting through the Commissioner of U.S. 
        Customs and Border Protection.
                                 <all>