[Senate Report 111-73]
[From the U.S. Government Publishing Office]


111th Congress 
 1st Session                     SENATE                          Report
                                                                 111-73
_______________________________________________________________________

                                     

                                                       Calendar No. 157
 
           MARITIME ADMINISTRATION AUTHORIZATION ACT OF 2010

                               __________

                              R E P O R T

                                 OF THE

           COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION

                                   on

                                S. 1308



                                     

               September 9, 2009.--Ordered to be printed
       SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
                     one hundred eleventh congress
                             first session

            JOHN D. ROCKEFELLER IV, West Virginia, Chairman
DANIEL K. INOUYE, Hawaii             KAY BAILEY HUTCHISON, Texas
JOHN F. KERRY, Massachusetts         OLYMPIA J. SNOWE, Maine
BYRON L. DORGAN, North Dakota        JOHN ENSIGN, Nevada
BARBARA BOXER, California            JIM DeMINT, South Carolina
BILL NELSON, Florida                 JOHN THUNE, South Dakota
MARIA CANTWELL, Washington           ROGER F. WICKER, Mississippi
FRANK R. LAUTENBERG, New Jersey      JOHNNY ISAKSON, Georgia
MARK PRYOR, Arkansas                 DAVID VITTER, Louisiana
CLAIRE McCASKILL, Missouri           SAM BROWNBACK, Kansas
AMY KLOBUCHAR, Minnesota             MEL MARTINEZ, Florida
TOM UDALL, Colorado                  MIKE JOHANNS, Nebraska
MARK WARNER, Virginia
MARK BEGICH, Alaska
                     Ellen Doneski, Chief of Staff
                   James Reid, Deputy Chief of Staff
                     Bruce Andrews, General Counsel
                 Ann Begeman, Republican Staff Director
               Brian Hendricks, Republican Chief Counsel
                Todd Bertoson, Republican Senior Counsel


                                                       Calendar No. 157
111th Congress                                                   Report
                                 SENATE
 1st Session                                                     111-73

======================================================================




           MARITIME ADMINISTRATION AUTHORIZATION ACT OF 2010

                                _______
                                

               September 9, 2009.--Ordered to be printed

                                _______
                                

     Mr. Rockefeller, from the Committee on Commerce, Science, and 
                Transportation, submitted the following

                                 REPORT

                         [To accompany S. 1308]

    The Committee on Commerce, Science, and Transportation, to 
which was referred the bill (S. 1308) to reauthorize the 
Maritime Administration, and for other purposes, having 
considered the same, reports favorably thereon with an 
amendment (in the nature of a substitute) and recommends that 
the bill (as amended) do pass.

                          Purpose of the Bill

  This legislation is the annual authorization act for the 
Maritime Administration (MARAD) within the Department of 
Transportation (DOT). The bill would authorize funds for fiscal 
year (FY) 2010 and amend laws governing the activities of the 
MARAD. The bill would improve the operations and fiscal 
controls at the U.S. Merchant Marine Academy (USMMA), authorize 
and strengthen the Port Infrastructure Development program, 
provide grant authority for Short Sea Transportation 
development projects, and authorize the Marine View (MARVIEW) 
information technology system.

                          Background and Needs

  The MARAD was authorized through FY 2009 in the Duncan Hunter 
National Defense Authorization Act for Fiscal Year 2009 (P.L. 
110-417). The MARAD administers U.S. merchant marine support 
programs within the DOT, including the Maritime Security 
Program (MSP); the Title XI guaranteed loan program; various 
cargo preference programs; the Small Shipyard Assistance 
program; the Short Sea Transportation Program; the maintenance 
of the Ready Reserve Force (RRF) and the National Defense 
Reserve Fleet (NDRF); and operation of the USMMA at Kings 
Point, New York.

                         Summary of Provisions

  The legislation would provide the USMMA permanent authority 
to hire adjunct professors, authority to liquidate unused leave 
of non-appropriated fund instrumentality employees who were 
terminated or converted in the transition to civil service in 
FY 2009, limit fees that can be imposed on midshipmen at the 
USMMA, and require MARAD to develop a separate and distinct 
accounting of such fees in the Operations and Training account 
to establish greater financial accountability. The DOT 
Secretary would be authorized to establish a Short Sea 
Transportation Grant Program to assist in the development of 
Short Sea Transportation projects and along marine 
transportation corridors designated by the Secretary. 
Additionally, the bill would authorize the establishment of a 
Port Infrastructure Development Program to allow the MARAD to 
provide technical and other assistance to modernize port 
facilities and generate greater efficiencies in the movement of 
freight. Such assistance would be provided at the request of 
State, regional, or other municipal partners. This bill would 
provide the MARAD authority to enter into cooperative 
agreements. Lastly, the legislation would limit the 
administrative expenses for Maritime Administration grant 
programs to no more than three percent unless otherwise 
stipulated by law.

                          Legislative History

  S. 1308 was introduced by Senator Lautenberg and is 
cosponsored by Senator Rockefeller, Senator Hutchison, Senator 
Thune, and Senator Wicker. An amendment was offered by Senator 
Begich to authorize and expand the MARVIEW System. The Senate 
Committee on Commerce, Science, and Transportation reported the 
bill favorably as amended on July 8, 2009. The staff members 
assigned to this legislation are: Dabney Hegg, Democratic 
Senior Professional Staff; and Todd Bertoson, Senior Republican 
Counsel.

                            Estimated Costs

  In accordance with paragraph 11(a) of rule XXVI of the 
Standing Rules of the Senate and section 403 of the 
Congressional Budget Act of 1974, the Committee provides the 
following cost estimate, prepared by the Congressional Budget 
Office:
                                                   August 25, 2009.
Hon. John D. Rockefeller IV,
Chairman, Committee on Commerce, Science, and Transportation,
U.S. Senate, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for S. 1308, the Maritime 
Administration Act of 2010.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Deborah Reis.
            Sincerely,
                                              Douglas W. Elmendorf.
    Enclosure.

S. 1308--Maritime Administration Act of 2010

    Summary: S. 1308 would amend various laws governing the 
activities of the Maritime Administration (MARAD) and would 
authorize appropriations for that agency, mostly for fiscal 
year 2010. Assuming appropriation of the amounts specifically 
authorized and estimated to be necessary, CBO estimates that 
implementing S. 1308 would result in outlays of $223 million 
over the 2010-2014 period. Additional amounts could be spent 
for the port development program authorized by section 8 of S. 
1308, but such spending could occur in the absence of this 
legislation and also would be subject to future appropriation 
action.
    Enacting S. 1308 also would increase direct spending by 
allowing MARAD to spend, without further appropriation, amounts 
credited as interest earnings on any unspent balances in a 
proposed fund for port development projects and by authorizing 
the agency to pay certain former employees for accrued leave. 
We estimate that direct spending under the bill would total 
$190 million over the 2010-2019 period. Enacting the bill would 
not affect revenues.
    The bill contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA) 
and would impose no costs on state, local, or tribal 
governments.
    Estimated cost to the Federal Government: The estimated 
budgetary impact of S. 1308 is shown in the following table. 
The costs of this legislation fall within budget function 400 
(transportation).

----------------------------------------------------------------------------------------------------------------
                                                            By fiscal year, in millions of dollars--
                                              ------------------------------------------------------------------
                                                 2010     2011     2012     2013     2014   2010-2014  2010-2019
----------------------------------------------------------------------------------------------------------------
                                  CHANGES IN SPENDING SUBJECT TO APPROPRIATION

MARAD Activities:
    Authorization Level......................      178       10       10       10        0       208        208
    Estimated Outlays........................      145       29       22       10        2       208        208
Short Sea Transportation Grants:
    Estimated Authorization Level............       15        0        0        0        0        15         15
    Estimated Outlays........................        5        5        5        0        0        15         15
Total Changes:
    Estimated Authorization Level............      193       10       10       10        0       223        223
    Estimated Outlays........................      150       34       27       10        2       223        223

                                           CHANGES IN DIRECT SPENDINGa
Estimated Budget Authority...................       20       20       20       20       20       100        200
Estimated Outlays............................       10       20       20       20       20        90        190
----------------------------------------------------------------------------------------------------------------
aCBO estimates that direct spending under S. 1308 would be $20 million a year over the 2015-2019 period.

    Basis of estimate: For this estimate, CBO assumes that S. 
1308 will be enacted near the end of fiscal year 2009 and that 
the amounts newly authorized by the bill will be appropriated 
for each year. Estimated budget authority for provisions that 
may affect direct spending is based on information provided by 
MARAD. Estimated outlays are based on historical spending 
patterns for MARAD activities.

                   SPENDING SUBJECT TO APPROPRIATION

    Maritime Operations and Grants. CBO estimates that 
implementing S. 1308 would increase discretionary spending by 
$223 million over the 2010-2014 period, including $153 million 
for MARAD operations, $15 million for the agency's program to 
dispose of obsolete vessels in the National Defense Reserve 
Fleet (both specifically authorized for fiscal year 2010), $10 
million specifically authorized for each of fiscal years 2010 
through 2013 for MARAD's Internet programs, and an estimated 
$15 million for 2010 for grants to states and other entities to 
encourage the use of short-distance shipping by sea (short sea 
transportation grants).
    S. 1308 also would authorize appropriations for other MARAD 
programs, including $174 million for subsidies to U.S. flag 
vessels under the maritime security program, $19.5 million for 
reimbursements to vessel owners for repairs made in U.S. 
shipyards, and $36 million for the cost of making maritime loan 
guarantees. Those amounts are not shown in the table, however, 
because they are already authorized under current law.
    Port Infrastructure Development. Section 8 of the bill 
would direct MARAD to create a program to develop and improve 
port facilities. Under this section, MARAD would act as the 
lead entity for port development projects nationwide and would 
coordinate activities among participants, including ports, 
states, businesses, and the many federal agencies that are 
typically involved in such projects (such as the U.S. Army 
Corps of Engineers).
    Section 8 also would establish a Port Infrastructure 
Development Fund (PIDF) to be available to MARAD to administer 
and finance port development projects. The PIDF would receive 
amounts appropriated to MARAD (or other federal agencies and 
transferred to MARAD), contributions from nonfederal partners 
such as local port authorities, and (as discussed below under 
Direct Spending) interest credited on unspent balances in the 
fund.
    The effect of section 8 on discretionary spending is 
uncertain, largely because funding for port development 
projects can occur even in the absence of this legislation. The 
federal government already finances many projects at U.S. ports 
through MARAD and other agencies within the Departments of 
Transportation (DOT), Homeland Security, and Defense. Several 
of those projects (most notably, those in Hawaii, Alaska, and 
Guam) are being managed by MARAD in much the same manner as 
authorized in section 8. The cost of such projects varies 
widely from as little as a few million at smaller facilities to 
over $500 million at larger ports. The federal share of those 
costs also varies widely, from less than 10 percent to over 50 
percent.
    Based on information provided by states, port authorities, 
and MARAD, we expect that U.S. ports will spend between $5 
billion and $10 billion over the next 10 years to improve and 
develop their facilities. We expect that some portion of this 
spending would be financed by the federal government, but any 
such financing could also be provided in the absence of this 
legislation. Therefore, CBO has not attributed any additional 
discretionary costs to the provisions in section 8.

                            DIRECT SPENDING

    Two provisions of S. 1308 could increase direct spending. 
Section 8 would allow MARAD to spend amounts credited as 
interest on unspent balances in the PIDF. CBO expects that 
transfers into the PIDF would begin early in fiscal year 2010 
and would include over $600 million from amounts previously 
appropriated for specific port development projects (for 
example, the Anchorage initiative), from transfers of related 
federal funds (for example, DOT grants for intermodal 
projects), or from deposits of reprogrammed funds (such as 
emergency appropriations to certain states such as 
Mississippi). We estimate that interest credited on those 
amounts and other appropriations or cost-sharing contributions 
to the PIDF would increase direct spending by $190 million over 
the 2010-2019 period. We expect that MARAD would use those 
amounts to fund smaller projects at U.S. ports.
    Section 4 would allow MARAD to use balances of previously 
appropriated funds to make lump-sum payments to former 
employees of the U.S. Merchant Marine Academy for unused annual 
leave. Because this amount would not have been spent under 
current law, CBO estimates that this provision would increase 
direct spending by about $200,000 in fiscal year 2010.
    Intergovernmental and private-sector impact: S. 1308 
contains no intergovernmental or private-sector mandates as 
defined in UMRA. The bill would authorize grants to states for 
marine transportation infrastructure and relative initiatives. 
Any costs to state, local, or tribal governments would result 
from complying with conditions of assistance.
    Previous CBO estimate: On June 22, 2009, CBO transmitted a 
cost estimate for H.R. 2647, the National Defense Authorization 
for Fiscal Year 2010, as ordered reported by the House 
Committee on Armed Services on June 18, 2009. H.R. 2647 would 
authorize funding for MARAD operations and ship disposal at the 
same level as under S. 1308 but would not authorize 
appropriations for short sea transportation grants or for 
MARAD's Internet program. The House legislation also would 
allow the agency to pay accrued leave to certain former 
employees, as would S. 1308. Other provisions of the two 
versions of the legislation are different, however, as 
reflected in the CBO cost estimates.
    Estimate prepared by: Federal Costs: Deborah Reis; Impact 
on State, Local, and Tribal Governments: Ryan Miller; Impact on 
the Private Sector: Patrice Gordon.
    Estimate approved by:Theresa Gullo,Deputy Assistant 
Director for Budget Analysis.

                      Regulatory Impact Statement

  S. 1308 would require the development of grant guidelines for 
the Short Sea Transportation Grand Program to be administered 
by the Office of Intermodal System Development. The legislation 
would not require additional reporting requirements. The 
legislation would have no further effect on the number or types 
of individuals and businesses regulated, the economic impact of 
such regulation, the personal privacy of affected individuals, 
or the paperwork required from such individuals and businesses.

                   Congressionally Directed Spending

  In compliance with paragraph 4(b) of rule XLIV of the 
Standing Rules of the Senate, the Committee provides that no 
provisions contained in the bill, as reported, meet the 
definition of congressionally directed spending items under the 
rule.

                      Section-by-Section Analysis


Section 1. Short Title.

  Section 1 would provide that the legislation may be cited as 
the ``Maritime Administration Authorization Act for Fiscal Year 
2010''.

Section 2. Cooperative Agreements, Grant Administrative Expenses, and 
        Contracting Authority.

  Section 2 would clarify that the MARAD has the authority to 
enter into cooperative agreements. The MARAD has been entering 
into agreements that are encompassed within the broad 
contracting authority of 49 U.S.C. Sec. 109. Section 2 would 
clarify this legal issue.
  This section would also include a paragraph that would 
address funding for administrative expenses associated with 
grant programs administered by the MARAD. This would allow the 
MARAD to use no more than three percent of any grant funds to 
offset such administrative expenses, unless another number is 
specifically set by statute.
  This section would also correct an inadvertent change 
resulting from recent codification of 46 U.S.C. App., which 
limited the use of this contracting authority to duties and 
activities carried out by the Secretary under 49 U.S.C. 
Sec. 109 and Chapter V of Title 46. Section 2 would also 
clarify the statutory contracting authority of the MARAD set 
forth in 49 U.S.C. Sec. 109 which applies to all of the MARAD's 
programs.

Section 3. Maritime Administration Use of Funding for Maritime Heritage 
        Property of the Department of Transportation.

  Section 3 would allow the MARAD to use proceeds from the sale 
of National Defense Reserve Fleet (NDRF) vessels under the 
maritime heritage program for the purpose of preserving the 
historic maritime property of the MARAD.
  The National Maritime Heritage Act allows the use of funds 
from the sale of scrapping of obsolete vessels. Fifty percent 
of such funds shall be available to the Maritime Administration 
for the acquisition, maintenance, repair, reconditioning, or 
improvement of NDRF vessels; twenty-five percent shall be 
available to the MARAD for payment or reimbursement of expenses 
incurred by or on behalf of the State maritime academies or the 
U.S. Merchant Marine Academy for facility and training ship 
maintenance, repair and modernization, and for the purchase of 
simulators and fuel. The remaining twenty-five percent shall be 
available to the Secretary of Interior to carry out a maritime 
heritage program.
  The MARAD has maritime heritage property for which funding is 
needed for historic preservation. This section would grant the 
Secretary of Interior the authority to preserve the historic 
maritime property of the MARAD with a portion of the remaining 
twenty-five percent of the funds available.

Section 4. Liquidation of Unused Leave Balance at the U.S. Merchant 
        Marine Academy.

  Section 4 would authorize the use of appropriated funds to 
pay the unpaid annual leave balances of former non-appropriated 
fund instrumentality employees at the U.S. Merchant Marine 
Academy who were terminated or converted to the civil service 
during FY 2009.

Section 5. Permanent Authority to Hire Adjunct Professors at the U.S. 
        Merchant Marine Academy.

  Section 5 would make permanent the authority established in 
Section 3506 of P.L. 110-417, the Duncan Hunter National 
Defense Authorization Act for Fiscal Year 2009, to hire adjunct 
professors at the U.S. Merchant Marine Academy.

Section 6. Use of Midshipman Fees.

  Section 6 would authorize the MARAD to credit midshipman fees 
to a separate account within its Operations and Training 
appropriations to achieve greater accountability and financial 
management. The funds would remain available until expended, 
for those expenses directly related to the purposes of the 
fees. Fees collected in excess of actual expenses may be 
returned to the midshipman through a mechanism approved by the 
Maritime Administrator. The MARAD would be directed to maintain 
a separate and detailed accounting of fee revenue and all 
associated expenses.

Section 7. Construction of Vessels in the United States.

  Section 7 would make a technical correction to section 
50101(a) of title 46, U.S.C. regarding vessel construction that 
was the result of the recent codification of title 46. The 
provisions contained in the codification no longer contain the 
reference to the need and policy for having a merchant marine 
constructed in the United States. Promoting vessel construction 
in the United States is an important component of the Merchant 
Marine Act, 1936. The recent codification of title 46 was not 
intended to make any substantive changes.

Section 8. Authorization to Establish a Port Infrastructure Development 
        Program.

  Section 8 would establish a Port Infrastructure Development 
Program. This section would allow the MARAD to assist States, 
territories, municipalities, and port facilities, at their 
request, with the management and federal coordination of their 
port infrastructure development projects.
  America's ports are the critical link between other modes of 
transportation and in the movement of freight. Port authorities 
are working to meet a projected demand for additional capacity, 
and maintain and modernize their aging infrastructure. The 
MARAD has been successful in assisting ports with 
infrastructure projects as the lead federal agency overseeing 
redevelopment and expansion projects. In this role, they have 
coordinated with other federal agencies to expedite the Port 
development environmental review process, speed construction 
activities, and reduce overall costs.

Section 9. Authorization to Convey Obsolete Vessels to Foreign 
        Countries.

  Section 9 would place into title 46 the Maritime 
Administration's existing authority to convey obsolete vessels 
to foreign countries. This is consistent with the MARAD's 
authority as set out in P.L. 108-136.

Section 10. Student Incentive Payment Agreements.

  Section 10 would strike the requirement that the MARAD pay 
student incentive payments at the beginning of the school year. 
The funding allocation for student incentive payments is 
inconsistent with the timing of federal appropriations. This 
change is necessary to appropriately align the execution of 
Student Incentive Payments to the federal fiscal year.

Section 11. United States Merchant Marine Academy Graduate Program 
        Receipt, Disbursement, and Accounting for Non-Appropriated 
        Funds.

  Section 11 would allow the MARAD to credit tuition and 
designated gifts to its Operations and Training appropriations. 
The funds will remain available until expended, for those 
expenses directly related for the purposes of the program. The 
MARAD would be directed to maintain a separate and detailed 
accounting of these revenues and all associated expenses.

Section 12. America's Short Sea Transportation Grants for the 
        Development of the Marine Highway.

  Section 12 would allow the Secretary to establish a Short Sea 
Transportation Grant Program to support the Short Sea 
Transportation Initiative created in the Energy Independence 
and Security Act of 2007. The Act required the Secretary to 
implement programs to establish America's Marine Highway as an 
extension of the surface transportation system to mitigate 
landside congestion.
  America's Marine Highway provides several advantages to the 
overall national transportation system, including reduced 
surface transportation congestion, decreased air emissions, 
decreased energy consumption, and the potential to improve 
highway safety by reducing motor carrier freight 
transportation. A typical vessel and barge service can shift 
over 450 trucks or 225 rail cars from costly and congested road 
and rail corridors to our underutilized waterways. The typical 
Marine Highway vessel and barge service can move one ton of 
cargo 576 miles on one gallon of fuel, whereas a truck would 
move that same cargo 155 miles and a train 413 miles on the 
same gallon of fuel. Inland marine transportation involves only 
1 fatality for every 155 by truck and 22 by rail for every 
billion ton-miles moved.

Section 13. Expansion of the Marine View System.

  Section 13 would expand the information technology system 
known as MARVIEW to support the strategic requirements of the 
United States marine transportation system and its contribution 
to the economic viability of the United States.
  MARVIEW is a web-based resource that pulls maritime 
information from several Federal sources and non-profit 
organizations to create a common operating picture of the 
maritime domain. This system provides for various levels of 
information access to users based upon clearance level. Some of 
the basic applications include: maritime domain awareness, 
centralized information exchange, support for critical incident 
response, emergency alerts, and statistical information on 
ports, vessels, and waterway usage on both a national and 
global basis.

Section 14. Authorization of Appropriations for Fiscal Year 2010.

  Section 14 would describe the Authorization of Appropriations 
for the MARAD for Fiscal Year 2010.

                        Changes in Existing Law

  In compliance with paragraph 12 of rule XXVI of the Standing 
Rules of the Senate, changes in existing law made by the bill, 
as reported, are shown as follows (existing law proposed to be 
omitted is enclosed in black brackets, new material is printed 
in italic, existing law in which no change is proposed is shown 
in roman):

                           TITLE 46. SHIPPING

                      SUBTITLE V. MERCHANT MARINE

                            PART A. GENERAL

               CHAPTER 501. POLICY, STUDIES, AND REPORTS

Sec. 50101. Objectives and policy

  (a) Objectives.--It is necessary for the national defense and 
the development of the domestic and foreign commerce of the 
United States that the United States have a merchant marine--
          (1) sufficient to carry the waterborne domestic 
        commerce and a substantial part of the waterborne 
        export and import foreign commerce of the United States 
        and to provide shipping service essential for 
        maintaining the flow of the waterborne domestic and 
        foreign commerce at all times;
          (2) capable of serving as a naval and military 
        auxiliary in time of war or national emergency;
          (3) owned and operated as vessels of the United 
        States by citizens of the United States;
          (4) composed of the best-equipped, safest, and most 
        suitable types of vessels constructed in the United 
        States and manned with a trained and efficient citizen 
        personnel; and
          (5) supplemented by efficient facilities for building 
        and repairing vessels.
  (b) Policy.--It is the policy of the United States to 
encourage and aid the development and maintenance of a merchant 
marine satisfying the objectives described in subsection (a).

                           TITLE 46. SHIPPING

                      SUBTITLE V. MERCHANT MARINE

                            PART A. GENERAL

                      CHAPTER 503. ADMINISTRATIVE

Sec. 50302. Port development

  (a) General Requirements.--With the objective of promoting, 
encouraging, and developing ports and transportation facilities 
in connection with water commerce over which the Secretary of 
Transportation has jurisdiction, the Secretary, in cooperation 
with the Secretary of the Army, shall--
          (1) investigate territorial regions and zones 
        tributary to ports, taking into consideration the 
        economies of transportation by rail, water, and highway 
        and the natural direction of the flow of commerce;
          (2) investigate the causes of congestion of commerce 
        at ports and applicable remedies;
          (3) investigate the subject of water terminals, 
        including the necessary docks, warehouses, and 
        equipment, to devise and suggest the types most 
        appropriate for different locations and for the most 
        expeditious and economical transfer or interchange of 
        passengers or property between water carriers and rail 
        carriers;
          (4) consult with communities on the appropriate 
        location and plan of construction of wharves, piers, 
        and water terminals;
          (5) investigate the practicability and advantages of 
        harbor, river, and port improvements in connection with 
        foreign and coastwise trade; and
          (6) investigate any other matter that may tend to 
        promote and encourage the use by vessels of ports 
        adequate to care for the freight that naturally would 
        pass through those ports.
  (b) Submission of Findings to Surface Transportation Board.--
After an investigation under subsection (a), if the Secretary 
of Transportation believes that the rates or practices of a 
rail carrier subject to the jurisdiction of the Surface 
Transportation Board are detrimental to the objective specified 
in subsection (a), or that new rates or practices, new or 
additional port terminal facilities, or affirmative action by a 
rail carrier is necessary to promote that objective, the 
Secretary may submit findings to the Board for action the Board 
considers appropriate under existing law.
  (c) Port Infrastructure Development Program.--
          (1) Establishment of program.--The Secretary of 
        Transportation, through the Maritime Administration, 
        shall establish a port infrastructure development 
        program for the improvement of port facilities.
          (2) Authority of the administrator.--In order to 
        carry out any program established under paragraph (1), 
        the Maritime Administrator may--
                  (A) receive funds provided for the program 
                from non-Federal and private entities that have 
                a specific agreement or contract with the 
                Maritime Administration to further the purposes 
                of this subsection;
                  (B) coordinate with other Federal agencies to 
                expedite the process established under the 
                National Environmental Policy Act of 1969 (42 
                U.S.C. 4321 et seq.) for the improvement of 
                port facilities to relieve port congestion, to 
                increase port security, or to provide greater 
                access to port facilities;
                  (C) seek to coordinate all reviews or 
                requirements with appropriate local, State, and 
                Federal agencies;
                  (D) provide such technical assistance to port 
                authorities or commissions or their 
                subdivisions and agents as needed for project 
                planning, design, and construction; and
                  (E) encourage such public-private 
                partnerships as may be necessary for the 
                development of financial support of the project 
                as the Administrator deems necessary.
          (3)  Port infrastructure development fund.--
                  (A) Establishment.--There is a Port 
                Infrastructure Development Fund for use by the 
                Administrator in carrying out the port 
                infrastructure development program. The Fund 
                shall be available to the Administrator--
                          (i) to administer and carry out the 
                        program;
                          (ii) to receive non-Federal and 
                        private funds from entities which have 
                        specific agreements or contracts with 
                        the Administrator; and
                          (iii) to make refunds for projects 
                        that will not be completed.
                  (B) Credits.--There shall be deposited into 
                the Fund--
                          (i) funds from non-Federal and 
                        private entities which have agreements 
                        or contracts with the Administrator and 
                        which shall remain in the Fund until 
                        expended;
                          (ii) income from investments made 
                        pursuant to subparagraph (D); and
                          (iii) such amounts as may be 
                        appropriated or transferred to the Fund 
                        under this subsection.
                  (C) Transfers.--Amounts appropriated or 
                otherwise made available for any fiscal year 
                for an intermodal or marine facility comprising 
                a component of the program shall be transferred 
                to the Fund and administered by the 
                Administrator.
                  (D) Investments.--Amounts in the Fund which 
                are not currently needed for the program shall 
                be kept on deposit or invested in obligations 
                of, or guaranteed by, the United States.
                  (E) Administrative expenses.--Administrative 
                and related expenses for the program for any 
                fiscal year may not exceed 3 percent of the 
                amount available to the program for that fiscal 
                year.
                  (F) Authorization of appropriations.--There 
                are authorized to be appropriated to the Fund 
                such sums as may be necessary to carry out the 
                program, taking into account amounts received 
                under subparagraph (A)(ii).

                           TITLE 46. SHIPPING

                      SUBTITLE V. MERCHANT MARINE

                    PART B. MERCHANT MARINE SERVICE

           CHAPTER 513. UNITED STATES MERCHANT MARINE ACADEMY

Sec. 51309. Academic degree

  (a) Bachelor's Degree.--
          (1) In general.--The Superintendent of the United 
        States Merchant Marine Academy may confer the degree of 
        bachelor of science on an individual who--
                  (A) has met the conditions prescribed by the 
                Secretary of Transportation; and
                  (B) if a citizen of the United States, has 
                passed the examination for a merchant marine 
                officer's license.
          (2) Effect of physical disqualification,--An 
        individual not allowed to take the examination for a 
        merchant marine officer's license only because of 
        physical disqualification may not be denied a degree 
        for not taking the examination.
  (b) Master's Degree.--The Superintendent of the Academy may 
confer a master's degree on an individual who has met the 
conditions prescribed by the Secretary. A master's degree 
program may be funded through non-appropriated funds. To 
maintain the appropriate academic standards, the program shall 
be accredited by the appropriate accreditation body. Non-
appropriated funds received for this purpose shall be credited 
to the Maritime Administration's Operations and Training 
appropriation, to remain available until expended, for those 
expenses directly related to the purpose of such receipts. The 
Superintendent shall maintain a separate and detailed 
accounting of non-appropriated fund receipts and all associated 
expenses. The Secretary may prescribe regulations necessary to 
administer such a program.
  (c) Graduation Not Entitlement To Hold License.--Graduation 
from the Academy does not entitle an individual to hold a 
license authorizing service on a merchant vessel.

Sec. 51314. Limitation on charges and fees for attendance

  (a) Prohibition.--Except as provided in subsection (b), no 
charge or fee for tuition, room, or board for attendance at the 
United States Merchant Marine Academy may be imposed unless the 
charge or fee is specifically authorized by a law enacted after 
October 5, 1994.
  (b) Exception.--The prohibition specified in subsection (a) 
does not apply with respect to any item or service provided to 
cadets for which a charge or fee is imposed as of October 5, 
[1994.] 1994, or for calculators, computers, personal and 
academic supplies, midshipman services such as barber, tailor, 
or laundry services, and U.S. Coast Guard license fees. The 
Secretary of Transportation shall notify Congress of any change 
made by the Academy in the amount of a charge or fee authorized 
under this subsection.
  (c) Use and Accounting.--
          (1) Use.--Midshipman fees collected by the Academy 
        shall be credited to the Maritime Administration's 
        Operations and Training appropriations, to remain 
        available until expended, for those expenses directly 
        related to the purposes of the fees. Fees collected in 
        excess of actual expenses may be returned to the 
        midshipmen through a mechanism approved by the Maritime 
        Administrator.
          (2) Accounting.--The Maritime Administration shall 
        maintain a separate and detailed accounting of fee 
        revenue and all associated expenses.

           *       *       *       *       *       *       *


51317. Adjunct professors

  (a) In General.--The Maritime Administrator may, subject to 
the availability of appropriations, contract with individuals 
as personal services contractors to provide services as adjunct 
professors at the United States Merchant Marine Academy, if the 
Maritime Administrator determines that there is a need for 
adjunct professors and the need is not of permanent duration.
  (b) Contract Requirements.--Each contract under this 
section--
          (1) shall be approved by the Maritime Administrator; 
        and
          (2) shall be for a duration, including options, of 
        not to exceed one year unless the Maritime 
        Administration finds that exceptional circumstances 
        justify an extension, which may not exceed one 
        additional year.
  (c) Limitation on Number of Contractors.--In awarding 
contracts under this section, the Maritime Administrator shall 
ensure that not more than 25 individuals actively provide 
services in any one academic trimester, or equivalent, as 
contractors under subsection (a).
  (d) Existing Contracts.--Any contract entered into before the 
date of enactment of the Maritime Administration Authorization 
Act of 2010 for the services of an adjunct professor at the 
Academy shall remain in effect for the trimester (or 
trimesters) for which the services were contracted.

           *       *       *       *       *       *       *


                           TITLE 46. SHIPPING

                      SUBTITLE V. MERCHANT MARINE

                    PART B. MERCHANT MARINE SERVICE

          CHAPTER 515. STATE MARITIME ACADEMY SUPPORT PROGRAM

Sec. 51509. Student incentive payment agreements

  (a) General Authority.--If a State maritime academy has an 
agreement with the Secretary of Transportation under section 
51505 of this title, the Secretary may make an agreement with a 
student at the academy who is a citizen of the United States to 
make student incentive payments to the individual. An agreement 
with a student may not be effective for more than 4 academic 
years. The Secretary shall allocate payments under this section 
among the various State maritime academies in an equitable 
manner.
  (b) Payments.--Payments under an agreement under this section 
shall be equal to $8,000 each academic year and be [paid before 
the start of each academic year,] paid as prescribed by the 
Secretary, while the individual is attending the academy. The 
payments shall be used for uniforms, tuition, books, and 
subsistence.
  (c) Enlisted Reserve Status.--An agreement under this section 
shall require the student to accept enlisted reserve status in 
the Navy Reserve (including the Merchant Marine Reserve, Navy 
Reserve) or the Coast Guard Reserve before receiving any 
payments under the agreement.
  (d) Agreement Requirements.--An agreement under this section 
shall require the student to--
          (1) complete the course of instruction at the academy 
        the individual is attending;
          (2) take the examination for a license as an officer 
        in the merchant marine of the United States before 
        graduation from the academy and fulfill the 
        requirements for such a license within 3 months after 
        graduation from the academy;
          (3) maintain a valid license as an officer in the 
        merchant marine of the United States for at least 6 
        years after graduation from the academy, accompanied by 
        the appropriate national and international endorsements 
        and certification required by the Coast Guard for 
        service aboard vessels on domestic and international 
        voyages;
          (4) accept, if tendered, an appointment as a 
        commissioned officer in the Navy Reserve (including the 
        Merchant Marine Reserve, Navy Reserve), the Coast Guard 
        Reserve, or any other reserve unit of an armed force of 
        the United States, and, if tendered the appointment, to 
        serve for at least 6 years after graduation from the 
        academy;
          (5) serve the foreign and domestic commerce and the 
        national defense of the United States for at least 3 
        years after graduation from the academy--
                  (A) as a merchant marine officer on a 
                documented vessel or a vessel owned and 
                operated by the United States Government or by 
                a State;
                  (B) as an employee in a United States 
                maritime-related industry, profession, or 
                marine science (as determined by the 
                Secretary), if the Secretary determines that 
                service under subparagraph (A) is not available 
                to the individual;
                  (C) as a commissioned officer on active duty 
                in an armed force of the United States, as a 
                commissioned officer in the National Oceanic 
                and Atmospheric Administration, or in other 
                maritime-related Federal employment which 
                serves the national security interests of the 
                United States, as determined by the Secretary; 
                or
                  (D) by a combination of the service 
                alternatives referred to in subparagraphs (A)-
                (C); and
          (6) report to the Secretary on compliance with this 
        subsection.
  (e) Failure to Complete Course of Instruction.--
          (1) Active duty.--If the Secretary of Transportation 
        determines that an individual who has accepted the 
        payments described in subsection (b) for a minimum of 2 
        academic years has failed to fulfill the part of the 
        agreement described in subsection (d)(1), the 
        individual may be ordered by the Secretary of Defense 
        to serve on active duty in the armed forces of the 
        United States for a period of not more than 2 years. In 
        cases of hardship as determined by the Secretary of 
        Transportation, the Secretary of Transportation may 
        waive this paragraph in whole or in part.
          (2) Recovery of cost.--If the Secretary of Defense is 
        unable or unwilling to order an individual to serve on 
        active duty under paragraph (1), or if the Secretary of 
        Transportation determines that reimbursement of the 
        cost of education provided would better serve the 
        interests of the United States, the Secretary of 
        Transportation may recover from the individual the 
        amount of student incentive payments, plus interest and 
        attorney fees. The Secretary may reduce the amount to 
        be recovered to reflect partial performance of service 
        obligations and other factors the Secretary determines 
        merit a reduction.
  (f) Failure To Carry Out Other Requirements.--
          (1) Active duty.--If the Secretary of Transportation 
        determines that an individual has failed to fulfill any 
        part of the agreement described in subsection (d)(2)-
        (6), the individual may be ordered to serve on active 
        duty for a period of at least 2 years but not more than 
        the unexpired period (as determined by the Secretary) 
        of the service required by subsection (d)(5). The 
        Secretary of Transportation, in consultation with the 
        Secretary of Defense, shall determine in which service 
        the individual shall serve. In cases of hardship as 
        determined by the Secretary of Transportation, the 
        Secretary of Transportation may waive this paragraph in 
        whole or in part.
          (2) Recovery of cost.--If the Secretary of Defense is 
        unable or unwilling to order an individual to serve on 
        active duty under paragraph (1), or if the Secretary of 
        Transportation determines that reimbursement of the 
        cost of education provided would better serve the 
        interests of the United States, the Secretary of 
        Transportation may recover from the individual the 
        amount of student incentive payments, plus interest and 
        attorney fees. The Secretary may reduce the amount to 
        be recovered to reflect partial performance of service 
        obligations and other factors the Secretary determines 
        merit a reduction.
  (g) Actions To Recover Cost.--To aid in the recovery of the 
cost of education provided by the Government under a commitment 
agreement under this section, the Secretary of Transportation 
may--
          (1) request the Attorney General to bring a civil 
        action against the individual; and
          (2) make use of the Federal debt collection 
        procedures in chapter 176 of title 28 or other 
        applicable administrative remedies.

                           TITLE 46. SHIPPING

                      SUBTITLE V. MERCHANT MARINE

                      PART D. PROMOTIONAL PROGRAMS

                 CHAPTER 556. SHORT SEA TRANSPORTATION

Sec. 55602. Short sea transportation grant program

  (a) In General.--The Secretary of Transportation shall 
establish and implement a short sea transportation grant 
program.
  (b) Purpose.--The purposes of the program are to make grants 
to States and other public entities and sponsors of short sea 
transportation projects designated by the Secretary--
          (1) to facilitate and support marine transportation 
        initiatives at the State and local levels to facilitate 
        commerce, mitigate landside congestion, reduce the 
        transportation energy consumption, reduce harmful 
        emissions, improve safety, assist in environmental 
        mitigation efforts, and improve transportation system 
        resiliency; and
          (2) to provide capital funding to address short sea 
        transportation infrastructure and freight 
        transportation needs for ports, vessels, and intermodal 
        cargo facilities.
  (c) Eligible Projects.--To be eligible for a grant under the 
program, a project--
          (1) shall be designed to help relieve congestion, 
        improve transportation safety, facilitate domestic and 
        international trade, or encourage public-private 
        partnerships; and
          (2) may include development, modification, and 
        construction of marine and intermodal cargo facilities, 
        vessels, port infrastructure and cargo handling 
        equipment, and transfer facilities at ports.
  (d) Selection Process.--
          (1) Applications.--A State or other public entity, or 
        the sponsor of any short sea transportation project 
        designated by the Secretary under the America's Marine 
        Highway Program (MARAD Docket No. 2008-0096; 73 FR 
        59530), may submit an application to Secretary for a 
        grant under the short sea transportation grant program. 
        The application shall contain such information and 
        assurances as the Secretary may require.
          (2) Priority.--In selecting projects for grants, the 
        Secretary shall give priority to projects that are 
        consistent with the objectives of the short sea 
        transportation initiative and America's Marine Highway 
        Program that will--
                  (A) mitigate landside congestion;
                  (B) provide the greatest public benefit in 
                energy savings, reduced emissions, improved 
                system resiliency, and improved safety;
                  (C) include and demonstrate the greatest 
                environmental responsibility; and
                  (D) provide savings as an alternative to or 
                means to avoid highway or rail transportation 
                infrastructure construction and maintenance.
  (e) Use of Grant Funds.--Funds made available to a recipient 
of a grant under this section shall be used by the recipient 
for the project described in the application of the recipient 
approved by the Secretary.

[Sec. 55602. Cargo and shippers]

Sec. 55603. Cargo and shippers

  (a) Memorandums of Agreement.--The Secretary of 
Transportation shall enter into memorandums of understanding 
with the heads of other Federal entities to transport federally 
owned or generated cargo using a short sea transportation 
project designated under section 55601 when practical or 
available.
  (b) Short-term Incentives.--The Secretary shall consult 
shippers and other participants in transportation logistics and 
develop proposals for short-term incentives to encourage the 
use of short sea transportation.

[Sec. 55603. Interagency coordination]

Sec. 55604. Interagency coordination

  The Secretary of Transportation shall establish a board to 
identify and seek solutions to impediments hindering effective 
use of short sea transportation. The board shall include 
representatives of the Environmental Protection Agency and 
other Federal, State, and local governmental entities and 
private sector entities.

[Sec. 55604. Research on short sea transportation]

Sec. 55605. Research on short sea transportation

  The Secretary of Transportation, in consultation with the 
Administrator of the Environmental Protection Agency, may 
conduct research on short sea transportation, regarding--
          (1) the environmental and transportation benefits to 
        be derived from short sea transportation alternatives 
        for other forms of transportation;
          (2) technology, vessel design, and other improvements 
        that would reduce emissions, increase fuel economy, and 
        lower costs of short sea transportation and increase 
        the efficiency of intermodal transfers; and
          (3) solutions to impediments to short sea 
        transportation projects designated under section 55601.

[Sec. 55605. Short sea transportation defined]

Sec. 55606. Short sea transportation defined

  In this chapter, the term ``short sea transportation'' means 
the carriage by vessel of cargo--
          (1) that is--
                  (A) contained in intermodal cargo containers 
                and loaded by crane on the vessel; or
                  (B) loaded on the vessel by means of wheeled 
                technology; and
          (2) that is--
                  (A) loaded at a port in the United States and 
                unloaded either at another port in the United 
                States or at a port in Canada located in the 
                Great Lakes Saint Lawrence Seaway System; or
                  (B) loaded at a port in Canada located in the 
                Great Lakes Saint Lawrence Seaway System and 
                unloaded at a port in the United States.

                        TITLE 49. TRANSPORTATION

                SUBTITLE I. DEPARTMENT OF TRANSPORTATION

                        CHAPTER 1. ORGANIZATION

Sec. 109. Maritime Administration

  (a) Organization.--The Maritime Administration is an 
administration in the Department of Transportation.
  (b) Maritime Administrator.--The head of the Maritime 
Administration is the Maritime Administrator, who is appointed 
by the President by and with the advice and consent of the 
Senate. The Administrator shall report directly to the 
Secretary of Transportation and carry out the duties prescribed 
by the Secretary.
  (c) Deputy Maritime Administrator.--The Maritime 
Administration shall have a Deputy Maritime Administrator, who 
is appointed in the competitive service by the Secretary, after 
consultation with the Administrator. The Deputy Administrator 
shall carry out the duties prescribed by the Administrator. The 
Deputy Administrator shall be Acting Administrator during the 
absence or disability of the Administrator and, unless the 
Secretary designates another individual, during a vacancy in 
the office of Administrator.
  (d) Duties and Powers Vested in Secretary.--All duties and 
powers of the Maritime Administration are vested in the 
Secretary.
  (e) Regional Offices.--The Maritime Administration shall have 
regional offices for the Atlantic, Gulf, Great Lakes, and 
Pacific port ranges, and may have other regional offices as 
necessary. The Secretary shall appoint a qualified individual 
as Director of each regional office. The Secretary shall carry 
out appropriate activities and programs of the Maritime 
Administration through the regional offices.
  (f) Interagency and Industry Relations.--The Secretary shall 
establish and maintain liaison with other agencies, and with 
representative trade organizations throughout the United 
States, concerned with the transportation of commodities by 
water in the export and import foreign commerce of the United 
States, for the purpose of securing preference to vessels of 
the United States for the transportation of those commodities.
  (g) Detailing Officers From Armed Forces.--To assist the 
Secretary in carrying out duties and powers relating to the 
Maritime Administration, not more than five officers of the 
armed forces may be detailed to the Secretary at any one time, 
in addition to details authorized by any other law. During the 
period of a detail, the Secretary shall pay the officer an 
amount that, when added to the officer's pay and allowances as 
an officer in the armed forces, makes the officer's total pay 
and allowances equal to the amount that would be paid to an 
individual performing work the Secretary considers to be of 
similar importance, difficulty, and responsibility as that 
performed by the officer during the detail.
  [(h) Contracts and Audits.--]
  (h) Contracts, Cooperative Agreements, and Audits.--
          [(1) Contracts.--] (1) Contracts and cooperative 
        agreements._In the same manner that a private 
        corporation may make a contract within the scope of its 
        authority under its charter, the Secretary may [make 
        contracts] make contracts and cooperative agreements 
        for the United States Government and disburse amounts 
        to--
                  (A) carry out the Secretary's duties and 
                powers under this [section and] section, 
                subtitle V of [title 46;] title 46, and all 
                other Maritime Administration programs; and
                  (B) protect, preserve, and improve collateral 
                held by the Secretary to secure indebtedness.
          (2) Audits.--The financial transactions of the 
        Secretary under paragraph (1) shall be audited by the 
        Comptroller General. The Comptroller General shall 
        allow credit for an expenditure shown to be necessary 
        because of the nature of the business activities 
        authorized by this section or subtitle V of title 46. 
        At least once a year, the Comptroller General shall 
        report to Congress any departure by the Secretary from 
        this section or subtitle V of title 46.
  (i) Grant Administrative Expenses.--Except as otherwise 
provided by law, the administrative and related expenses for 
the administration of any grant programs by the Maritime 
Administrator may not exceed 3 percent.
  [(i)] (j) Authorization of Appropriations.--
          (1) In general.--Except as otherwise provided in this 
        subsection, there are authorized to be appropriated 
        such amounts as may be necessary to carry out the 
        duties and powers of the Secretary relating to the 
        Maritime Administration.
          (2) Limitations.--Only those amounts specifically 
        authorized by law may be appropriated for the use of 
        the Maritime Administration for--
                  (A) acquisition, construction, or 
                reconstruction of vessels;
                  (B) construction-differential subsidies 
                incident to the construction, reconstruction, 
                or reconditioning of vessels;
                  (C) costs of national defense features;
                  (D) payments of obligations incurred for 
                operating-differential subsidies;
                  (E) expenses necessary for research and 
                development activities, including reimbursement 
                of the Vessel Operations Revolving Fund for 
                losses resulting from expenses of experimental 
                vessel operations;
                  (F) the Vessel Operations Revolving Fund;
                  (G) National Defense Reserve Fleet expenses;
                  (H) expenses necessary to carry out part B of 
                subtitle V of title 46; and
                  (I) other operations and training expenses 
                related to the development of waterborne 
                transportation systems, the use of waterborne 
                transportation systems, and general 
                administration.
          (3) Training vessels.--Amounts may not be 
        appropriated for the purchase or construction of 
        training vessels for State maritime academies unless 
        the Secretary has approved a plan for sharing training 
        vessels between State maritime academies.

                           PUBLIC LAW 92-402

SEC. 3. STATE APPLICATIONS FOR OBSOLETE SHIPS FOR USE AS OFFSHORE 
                    REEFS.

Sec. 1220. State applications for obsolete ships for use as offshore 
                    reefs

  (a) Conservation of Marine Life.--Any State may apply to the 
Secretary of Transportation (hereafter referred to in this Act 
as the ``Secretary'') for obsolete ships which, but for the 
operation of this Act, would be designated by the Secretary for 
scrapping if the State intends to sink such ships for use as an 
offshore artificial reef for the conservation of marine life.
  (b) Manner and Form of Applications; Minimum Requirements.--A 
State shall apply for obsolete ships under this Act in such 
manner and form as the Secretary shall prescribe, but such 
application shall include at least (1) the location at which 
the State proposes to sink the ships, (2) a certificate from 
the Administrator, Environmental Protection Agency, that the 
proposed use of the particular vessel or vessels requested by 
the State will be compatible with water quality standards and 
other appropriate environmental protection requirements, and 
(3) statements and estimates with respect to the conservation 
goals which are sought to be achieved by use of the ships.
  (c) Copies to Federal Officers for Official Comments and 
Views.--Before taking any action with respect to an application 
submitted under this Act, the Secretary shall provide copies of 
the application to the Secretary of the Interior, the Secretary 
of Defense, and any other appropriate Federal officer, and 
shall consider comments and views of such officers with respect 
to the application.
  (d) Any territory, possession, or Commonwealth of the United 
States, and any foreign country, may apply to the Secretary for 
an obsolete vessel to be used for an artificial reef under this 
section. The application process and reefing of any such 
obsolete vessel shall be performed in a manner consistent with 
the process jointly developed by the Secretary of 
Transportation and the Administrator of the Environmental 
Protection Agency under section 3504(b) of Public Law 107-314 
(16 U.S.C. 1220 note).

                           PUBLIC LAW 92-402

SEC. 7. FINANCIAL ASSISTANCE TO STATE TO PREPARE TRANSFERRED SHIP.

                          [16 U.S.C. 1220c-1]

  (a) Assistance Authorized.--The Secretary, subject to the 
availability of appropriations, may provide, to any State to 
which an obsolete ship is transferred under this Act, financial 
assistance to prepare the ship for use as an artificial reef, 
including for--
          (1) environmental remediation;
          (2) towing; and
          (3) sinking.
  (b) Amount of Assistance.--The Secretary shall determine the 
amount of assistance under this section with respect to an 
obsolete ship based on--
          (1) the total amount available for providing 
        assistance under this section;
          (2) the benefit achieved by providing assistance for 
        that ship; and
          (3) the cost effectiveness of disposing of the ship 
        by transfer under this Act and provision of assistance 
        under this section, compared to other disposal options 
        for that ship.
  (c) Terms and Conditions.--The Secretary--
          (1) shall require a State seeking assistance under 
        this section to provide cost data and other information 
        determined by the Secretary to be necessary to justify 
        and document the assistance; and
          (2) may require a State receiving such assistance to 
        comply with terms and conditions necessary to protect 
        the environment and the interests of the United States.
  (d) Limitation.--The Secretary may not provide assistance 
under this section to a foreign country to which an obsolete 
ship is transferred under this Act.

                 NATIONAL MARITIME HERITAGE ACT OF 1994

SEC. 6. FUNDING.

                            [16 U.S.C. 5405]

  (a) Availability of Funds From Sale and Scrapping of Obsolete 
Vessels.--
          (1) In general.--Notwithstanding any other provision 
        of law, the amount of funds credited in a fiscal year 
        to the Vessel Operations Revolving Fund established by 
        the Act of June 2, 1951 (46 App. U.S.C. 1241a), that is 
        attributable to the sale of obsolete vessels in the 
        National Defense Reserve Fleet that are scrapped or 
        sold under section 508 or 510(i) of the Merchant Marine 
        Act, 1936 (46 App. U.S.C. 1158 or 1160(i)) shall be 
        available until expended as follows:
                  (A) 50 percent shall be available to the 
                Administrator of the Maritime Administration 
                for such acquisition, maintenance, repair, 
                reconditioning, or improvement of vessels in 
                the National Defense Reserve Fleet as is 
                authorized under other Federal law.
                  (B) 25 percent shall be available to the 
                Administrator of the Maritime Administration 
                for the payment or reimbursement of expenses 
                incurred by or on behalf of State maritime 
                academies or the United States Merchant Marine 
                Academy for facility and training ship 
                maintenance, repair, and modernization, and for 
                the purchase of simulators and fuel.
                  [(C) The remainder shall be available to the 
                Secretary to carry out the Program, as provided 
                in subsection (b).]
                  (C) The remainder, whether collected before 
                or after the date of enactment of the Maritime 
                Administration Authorization Act of 2010, shall 
                be available to the Secretary to carry out the 
                Program, as provided in subsection (b) of this 
                section or, if otherwise determined by the 
                Maritime Administrator, for use in the 
                preservation and presentation to the public of 
                maritime heritage property of the Maritime 
                Administration.
          (2) Application.--Paragraph (1) does not apply to 
        amounts credited to the Vessel Operations Revolving 
        Fund before July 1, 1994.
  (b) Use of Amounts for Program.--
          (1) In general.--Except as provided in paragraph (2), 
        of amounts available each fiscal year for the Program 
        under subsection (a)(1)(C)--
                  (A) 1/2 shall be used for grants under 
                section 4(b); and
                  (B) 1/2 shall be used for grants under 
                section 4(c).
          (2) Use for interim projects.--Amounts available for 
        the Program under subsection (a)(1)(C) that are the 
        proceeds of any of the first 8 obsolete vessels in the 
        National Defense Reserve Fleet that are sold or 
        scrapped after July 1, 1994, under section 508 or 
        510(i) of the Merchant Marine Act, 1936 (46 U.S.C. 1158 
        or 1160(i)) are available to the Secretary for grants 
        for interim projects approved under section 4(j) of 
        this Act.
          (3) Administrative expenses.--
                  (A) In general.--Not more than 15 percent or 
                $ 500,000, whichever is less, of the amount 
                available for the Program under subsection 
                (a)(1)(C) for a fiscal year may be used for 
                expenses of administering the Program.
                  (B) Allocation.--Of the amount available 
                under subparagraph (A) for a fiscal year--
                          (i) 1/2 shall be allocated to the 
                        National Trust for expenses incurred in 
                        administering grants under section 
                        4(b); and
                          (ii) 1/2 shall be allocated as 
                        appropriate by the Secretary to the 
                        National Park Service and participating 
                        State Historic Preservation Officers.
  (c) Disposals of Vessels.--
          (1) Requirement.--The Secretary of Transportation 
        shall dispose (either by sale or purchase of disposal 
        services) of all vessels described in paragraph (2)--
                  (A) in accordance with a priority system for 
                disposing of vessels, as determined by the 
                Secretary, which shall include provisions 
                requiring the Maritime Administration to--
                          (i) dispose of all deteriorated high 
                        priority ships that are available for 
                        disposal, within 12 months of their 
                        designation as such; and
                          (ii) give priority to the disposition 
                        of those vessels that pose the most 
                        significant danger to the environment 
                        or cost the most to maintain;
                  (B) in the manner that provides the best 
                value to the Government, except in any case in 
                which obtaining the best value would require 
                towing a vessel and such towing poses a serious 
                threat to the environment; and
                  (C) in accordance with the plan of the 
                Department of Transportation for disposal of 
                those vessels and requirements under sections 
                508 and 510(i) of the Merchant Marine Act, 1936 
                (46 App. U.S.C. 1158, 1160(i)).
          (2) Vessels described.--The vessels referred to in 
        paragraph (1) are the vessels in the National Defense 
        Reserve Fleet after July 1, 1994, that--
                  (A) are not assigned to the Ready Reserve 
                Force component of that fleet; and
                  (B) are not specifically authorized or 
                required by statute to be used for a particular 
                purpose.
  (d) Treatment of Amounts Available.--Amounts available under 
this section shall not be considered in any determination of 
the amounts available to the Department of the Interior.

 DUNCAN HUNTER NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2009

                         [46 U.S.C. 53101 note]

Sec. 53101. Definitions

  In this chapter:
          (1) Bulk cargo.--The term ``bulk cargo'' means cargo 
        that is loaded and carried in bulk without mark or 
        count.
          (2) Contractor.--The term ``contractor'' means an 
        owner or operator of a vessel that enters into an 
        operating agreement for the vessel with the Secretary 
        under section 53103.
          (3) Fleet.--The term ``Fleet'' means the Maritime 
        Security Fleet established under section 53102(a).
          (4) Foreign commerce.--The term ``foreign 
        commerce''--
                  (A) subject to subparagraph (B), means--
                          (i) commerce or trade between the 
                        United States, its territories or 
                        possessions, or the District of 
                        Columbia, and a foreign country; and
                          (ii) commerce or trade between 
                        foreign countries; and
                  (B) includes, in the case of liquid and dry 
                bulk cargo carrying services, trading between 
                foreign ports in accordance with normal 
                commercial bulk shipping practices in such 
                manner as will permit United States-documented 
                vessels freely to compete with foreign-flag 
                bulk carrying vessels in their operation or in 
                competing for charters, subject to rules and 
                regulations promulgated by the Secretary of 
                Transportation pursuant to this chapter or 
                subtitle D of the Maritime Security Act of 
                2003.
          (5) LASH vessel.--The term ``LASH vessel'' means a 
        lighter aboard ship vessel.
          (6) Participating fleet vessel.--The term 
        ``participating fleet vessel'' means any vessel that--
                  (A) on October 1, 2005--
                          (i) meets the requirements of 
                        paragraph (1), (2), (3), or (4) of 
                        section 53102(c); and
                          (ii) is less than 25 years of age, or 
                        less than 30 years of age in the case 
                        of a LASH vessel; and
                  (B) on December 31, 2004, is covered by an 
                operating agreement under subtitle B of title 
                VI of the Merchant Marine Act, 1936 (46 U.S.C. 
                App. 1187 et seq.).
          (7) Person.--The term ``person'' includes 
        corporations, partnerships, and associations existing 
        under or authorized by the laws of the United States, 
        or any State, Territory, District, or possession 
        thereof, or of any foreign country.
          (8) Product tank vessel.--The term ``product tank 
        vessel'' means a double hulled tank vessel capable of 
        carrying simultaneously more than 2 separated grades of 
        refined petroleum products.
          (9) Secretary.--The term ``Secretary'' means the 
        Secretary of Transportation.
          (10) Tank Vessel.--The term ``tank vessel'' has the 
        meaning that term has under section 2101 of this title.
          (11) United states.--The term ``United States'' 
        includes the District of Columbia, the Commonwealth of 
        Puerto Rico, the Northern Mariana Islands, Guam, 
        American Samoa, the Virgin Islands.
          (12) United states citizen trust.--
                  (A) Subject to subparagraph (C), the term 
                ``United States citizen trust'' means a trust 
                that is qualified under this paragraph.
                  (B) A trust is qualified under this paragraph 
                with respect to a vessel only if--
                          (i) each of the trustees is a citizen 
                        of the United States; and
                          (ii) the application for 
                        documentation of the vessel under 
                        chapter 121 of this title includes the 
                        affidavit of each trustee stating that 
                        the trustee is not aware of any reason 
                        involving a beneficiary of the trust 
                        that is not a citizen of the United 
                        States, or involving any other person 
                        that is not a citizen of the United 
                        States, as a result of which the 
                        beneficiary or other person would hold 
                        more than 25 percent of the aggregate 
                        power to influence or limit the 
                        exercise of the authority of the 
                        trustee with respect to matters 
                        involving any ownership or operation of 
                        the vessel that may adversely affect 
                        the interests of the United States.
                  (C) If any person that is not a citizen of 
                the United States has authority to direct or 
                participate in directing a trustee for a trust 
                in matters involving any ownership or operation 
                of the vessel that may adversely affect the 
                interests of the United States or in removing a 
                trustee for a trust without cause, either 
                directly or indirectly through the control of 
                another person, the trust is not qualified 
                under this paragraph unless the trust 
                instrument provides that persons who are not 
                citizens of the United States may not hold more 
                than 25 percent of the aggregate authority to 
                so direct or remove a trustee.
                  (D) This paragraph shall not be considered to 
                prohibit a person who is not a citizen of the 
                United States from holding more than 25 percent 
                of the beneficial interest in a trust.
          (13) United states-documented vessel.--The term 
        ``United States-documented vessel'' means a vessel 
        documented under chapter 121 of this title.

[SEC. 3506. TEMPORARY PROGRAM AUTHORIZING CONTRACTS WITH ADJUNCT 
                    PROFESSORS AT THE UNITED STATES MERCHANT MARINE 
                    ACADEMY AND FOR OTHER PURPOSES.

  [(a) In General.--The Maritime Administrator may establish a 
temporary program for the purpose of, subject to the 
availability of appropriations, contracting with individuals as 
personal services contractors to provide services as adjunct 
professors at the Academy, if the Maritime Administrator 
determines that there is a need for adjunct professors and the 
need is not of permanent duration.
  [(b) Contract Requirements.--Each contract under the 
program--
          [(1) must be approved by the Maritime Administrator;
          [(2) subject to paragraph (3), shall be for a 
        duration, including options, of not to exceed one year 
        unless the Maritime Administrator finds that 
        exceptional circumstances justify an extension of up to 
        one additional year; and
          [(3) shall terminate not later than 6 months after 
        the termination of contract authority under subsection 
        (d).
  [(c) Limitation on Number of Contractors.--In awarding 
contacts under the program, the Maritime Administrator shall 
ensure that not more than 25 individuals actively provide 
services in any one academic trimester, or equivalent, as 
contractors under the program.
  [(d) Termination of Contracting Authority.--The authority to 
award contracts under the program shall terminate upon the end 
of the academic year 2008-2009.
  [(e) Existing Contracts.--Any contract entered into before 
the effective date of this section for the services of an 
adjunct professor at the Academy shall remain in effect for the 
trimester (or trimesters) for which the services were 
contracted.
  [(f) Definitions.--In this section:
          [(1) Academy.--The term ``Academy'' means the United 
        States Merchant Marine Academy.
          [(2) Maritime administrator.--The term ``Maritime 
        Administrator'' means the Administrator of the Maritime 
        Administration, or a designee of the Administrator.
          [(3) Program.--The term ``program'' means the program 
        established under subsection (a).]

                                  
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