[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).

                                  
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