[Senate Report 111-95]
[From the U.S. Government Publishing Office]


111th Congress                                                   Report
                                 SENATE
 1st Session                                                     111-95
_______________________________________________________________________

                                     

                                                       Calendar No. 193

      COAST GUARD AUTHORIZATION ACT FOR FISCAL YEARS 2010 AND 2011

                               __________

                              R E P O R T

                                 OF THE

           COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION

                                   on

                                S. 1194



                                     

                October 30, 2009.--Ordered to be printed
           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      GEORGE LeMIEUX, Florida
MARK PRYOR, Arkansas                 JOHNNY ISAKSON, Georgia
CLAIRE McCASKILL, Missouri           DAVID VITTER, Louisiana
AMY KLOBUCHAR, Minnesota             SAM BROWNBACK, Kansas
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, Acting Republican Staff Director
               Brian Hendricks, Republican Chief Counsel
                Todd Bertoson, Republican Senior Counsel


                                                       Calendar No. 193
111th Congress                                                   Report
                                 SENATE
 1st Session                                                     111-95

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



 
      COAST GUARD AUTHORIZATION ACT FOR FISCAL YEARS 2010 AND 2011

                                _______
                                

                October 30, 2009.--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. 1194]

    The Committee on Commerce, Science, and Transportation, to 
which was referred the bill (S. 1194) to reauthorize the Coast 
Guard for fiscal years 2010 and 2011, 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

  S. 1194, the Coast Guard Authorization Act for Fiscal Years 
2010 and 2011, as amended, would make a number of changes to 
current law affecting the Coast Guard and its statutory 
missions, and would serve two very important purposes. First, 
it would authorize appropriations for the Coast Guard for 
fiscal year (FY) 2010 and FY 2011 covering six accounts: (1) 
operation and maintenance expenses; (2) acquisition, 
construction, and improvement of facilities and equipment 
(AC&I); (3) retired pay; (4) environmental compliance and 
restoration; (5) research, development, testing, and evaluation 
(RDT&E); and (6) the reserve program. Second, it would provide 
for comprehensive reform to the Coast Guard's major systems 
acquisition processes and procedures.

                          Background and Needs

  The Coast Guard was established on January 28, 1915, as part 
of the Department of the Treasury, through the consolidation of 
the Revenue Cutter Service (established in 1790) and the 
Lifesaving Service (established in 1848). The Coast Guard later 
assumed the duties of three other agencies: the Lighthouse 
Service (established in 1789), the Steamboat Inspection Service 
(established in 1838), and the Bureau of Navigation 
(established in 1884).
  The Coast Guard remained a part of the Department of the 
Treasury until 1967, when it was transferred to the newly 
created Department of Transportation. On March 1, 2003, 
pursuant to the Homeland Security Act of 2002 (Public Law 107-
296), the Coast Guard was transferred to the newly constituted 
Department of Homeland Security. The Coast Guard provides many 
critical services for our Nation which can be grouped into five 
fundamental categories: maritime security; maritime safety; 
maritime mobility; protection of natural resources; and 
national defense.
  The Coast Guard is the Federal government's principal 
maritime law-enforcement agency, and is also a branch of the 
United States armed forces. As such, the Coast Guard maintains 
defense readiness to operate as a specialized service in the 
Navy upon the declaration of war or when the President so 
directs. The Coast Guard has defended the nation in every war 
since 1790. During the recent combat operations in Iraq, the 
Coast Guard deployed two 378-foot high endurance cutters, one 
225-foot ocean going buoy tender, and one Port Security Team. 
It continues to operate six 110-foot Island Class patrol boats 
in the Persian Gulf. This was the first deployment of Coast 
Guard cutters in support of a wartime contingency since the 
Vietnam War.
  Under title 14, United States Code, the Coast Guard has 
primary responsibility for enforcing or assisting in the 
enforcement of all applicable Federal laws on, under, and over 
the high seas and waters subject to the jurisdiction of the 
United States; ensuring the safety of life and property at sea; 
protecting the marine environment; carrying out domestic and 
international icebreaking activities; and ensuring the safety 
and security of vessels, ports, waterways, and related 
facilities. In carrying out these responsibilities, the Coast 
Guard's activities include commercial and recreational vessel 
safety inspection, the rescue of lives and property at sea, 
enforcement of fisheries laws, marine environmental protection, 
and the interdiction of drug traffickers and smugglers of 
illegal migrants. Since September 11, 2001, the Coast Guard's 
security responsibilities have increased significantly, with 
new authorities provided under the Maritime Transportation 
Security Act of 2002 (MTSA, Public Law 107-295).
  The Coast Guard is composed of 41,950 active duty military 
personnel, 7,500 reservists, 7,700 civilian employees, and 
29,000 Coast Guard Auxiliary volunteers. In 2008, the Coast 
Guard responded to more than 24,000 calls for assistance, 
boarded 70,000 vessels, saved 4,000 lives, seized 370,000 
pounds of cocaine, and stopped 5,000 illegal migrants from 
reaching our shores. The Coast Guard conducted also waterborne, 
aerial, and shore-side security patrols, including 
approximately 84,000 patrols of critical infrastructure and key 
assets. Additionally, the Coast Guard conducted more than 
20,700 security zone patrols near critical infrastructure. The 
Coast Guard escorted approximately 5,900 naval vessels, vessels 
engaged in military outloads, vessels carrying certain 
dangerous cargoes in bulk, and high capacity passenger vessels, 
including cruise ships and ferry vessels. Coast Guard assets 
also patrolled to protect our fisheries stocks and responded to 
14,647 pollution incidents (4,474 from vessels and 10,173 from 
facilities and other sources).
  Oil pollution from vessels continues to pose major 
environmental risks to our Nation. In 2007, the most recent 
year for which complete information is currently available from 
the Energy Information Administration, the United States had 
net imports of 12.2 million barrels of oil per day, more than 
twice as much as Japan (4.9 million barrels) and more than 
three times as much as China (3.7 million barrels), the world's 
next largest importers. The transport of crude oil into the 
United States occurs primarily by sea with ports throughout the 
United States receiving tens of thousands of shipments of oil 
each year. The Maritime Administration reported that the United 
States received over 8,400 shipments of crude oil via Tanker 
Vessels with at least 70,000 dead weight tons in 2007--a 33 
percent increase from 2002. In addition, vessels not 
transporting oil, such as cargo and freight vessels, fishing 
vessels, and passenger ships, often carry tens of thousands of 
gallons of fuel oil to power their engines. According to Coast 
Guard data, while the number of oil spills from vessels has 
decreased notably since passage of the Oil Pollution Act of 
1990 (OPA 90), the volume of oil spilled nationwide is still 
significant. The Government Accountability Office (GAO), in its 
September 2007 report entitled ``Major Oil Spills Occur 
Infrequently, but Risks to the Federal Oil Spill Fund Remain'' 
(GAO-07-1085), found that 51 spills with costs above $1 million 
have occurred since 1990, costing a total of between $860 
million and $1.1 billion.
  A comparison of data from 1992 and 2004 is telling. In 1992, 
there were 5,310 reported vessel spills in U.S. waters, 
amounting to 665,432 gallons of oil; in 2004, the total was 
higher, at 722,768 gallons, and a considerable number of spills 
are still occurring. In 2004, there were 3,897 reported vessel 
spills in U.S. waters, including 35 spills from tank ships, 143 
spills from barges, and 1,527 spills from other vessels, 
including cargo ships. Another 1,055 were from unknown sources. 
Furthermore, even though the number of spills from tankers 
declined from 193 spills in 1992 to 35 spills in 2004, a single 
incident from a vessel like the Exxon Valdez can be 
devastating, both environmentally and economically.
  Further improvements in the Coast Guard's authority will 
better enable it to achieve its environmental protection and 
response mission and other statutory missions. Improvements in 
the Coast Guard's authorizing statute are also needed to ensure 
it can successfully acquire the assets it needs to accomplish 
these missions. The Coast Guard is struggling right now to 
replace its rapidly aging fleet of ships, aircraft, and 
facilities. With current cost estimates ranging from $24 
billion to $26 billion, the Integrated Deepwater System Program 
is the largest and most complex acquisition program in the 
Coast Guard's history. The primary purpose of the Deepwater 
program is to modernize its aging fleet of 90 cutters and 200 
aircraft used for missions that occur beyond 50 miles from the 
shoreline through a mix of new acquisitions and retrofits to 
existing ``legacy assets.''
  In 2002, the Coast Guard selected Integrated Coast Guard 
Systems (ICGS), a joint venture between Lockheed Martin and 
Northrop Grumman, as its primary contractor, with ICGS using a 
lead systems integrator (LSI) approach intended to develop new 
assets as an integrated ``system of systems.'' This LSI 
approach provided the contractor with significant decision-
making and management authority over many aspects of the 
acquisition, including decisions on whether to ``make or buy'' 
assets to be delivered. The LSI approach also did not require 
competition for subcontracts.
  In 1998, the Coast Guard's initial estimated cost for the 
Deepwater project was $17 billion, with an estimated delivery 
date for all new and retrofitted assets of 2018. The Coast 
Guard submitted a revised Deepwater implementation plan to 
Congress in February, 2005, to address increased costs, and to 
account for new security capabilities and the service's new 
missions following its shift from the Department of 
Transportation to the Department of Homeland Security (DHS) 
subsequent to the events of September 11, 2001. Under this 
revised plan, the overall program cost increased to $24 
billion, with the final assets scheduled for delivery in 2027.
  Problems with the Deepwater program, many of which have been 
documented in reports from the DHS Inspector General and the 
GAO, have raised serious concerns about specific acquisitions 
under the program, as well as more fundamental problems with 
the program as a whole. The GAO issued a report in March 2004 
(GAO-04-380) citing significant risks with the use of the LSI 
contracting model and recommending changes to address three 
broad areas of concern: (1) improving program management; (2) 
strengthening contractor accountability; and (3) promoting cost 
control through greater competition among potential 
subcontractors. A GAO report (GAO-06-764) issued in June of 
2006 detailed problems with the design of one of the three 
major new vessel assets to be acquired, the Fast Response 
Cutter (FRC), that led the Coast Guard to issue a stop-work 
order to ICGS. On November 30, 2006, the Coast Guard announced 
the decision to suspend all operations of the eight 110-foot 
patrol boats that had been converted to 123-foot patrol boats, 
due to structural damage and safety concerns. A report (OIG-07-
23) of the DHS IG issued on January 23, 2007, found that the 
largest new vessel to be delivered under the contract, the 
National Security Cutter (NSC), would not meet the Coast 
Guard's performance requirements and had design flaws that 
could result in significant additional costs. Another report 
(OIG-07-27) from the DHS IG dated February 9, 2007, found that 
ICGS failed to install low-smoke cable and other elements of 
the command, control, communications, computers, intelligence, 
surveillance, and reconnaissance (C4ISR) system on the 
converted 123-foot vessels, as required by the contract 
specifications.
  The Defense Acquisition University, housed within the 
Department of Defense (DOD), released a study on February 5, 
2007, which found problems with nearly every aspect of the 
Deepwater program, including the implementation of the 
``system-of-systems'' approach; the LSI contractual 
arrangement; and Coast Guard management, workforce and 
organizational structure, financial management, and logistics. 
As problems with the Deepwater program continued to grow in 
2007, the Coast Guard began to transition away from the system-
of-systems approach and use of a private sector entity as an 
LSI, toward a more conventional approach focused on 
acquisitions at the asset level, with the Coast Guard serving 
as the systems integrator for each acquisition program. In the 
last two years, the Coast Guard has assumed the role of systems 
integrator for the overall Deepwater program, reduced the work 
being performed under contract by ICGS, and has undertaken a 
reassessment of needs with regard to Deepwater asset 
capabilities and numbers. The Coast Guard also is applying more 
rigorous processes and procedures contained in its revised 
Major Systems Acquisition Manual, although it has bypassed 
these requirements in more than one instance.
  On April 22, 2009, GAO provided testimony (GAO-09-620T) to 
Congress in which it estimated that the cost of the Deepwater 
program could increase by as much as $2.1 billion, bringing the 
total cost of the program to an estimated $26.3 billion. At 
that time GAO also noted that, as the Coast Guard continues to 
assume the role of systems integrator for the acquisition of 
various Deepwater assets and gains increased insight into what 
it is buying, further cost growth may be observed. More 
recently, on July 14, 2009, GAO released a report (GAO-09-682) 
which included a revised estimated Deepwater cost increase of 
$2.7 billion, bringing the total cost to an estimated $26.9 
billion.
  The Coast Guard has made, and continues to make, changes in 
its management of the Deepwater program and its major systems 
acquisition requirements more broadly in order to address 
Congressional concerns. However, evidence of departures from 
those new requirements, coupled with ever-growing cost 
projections and project timelines, continue to be significant 
sources of apprehension.

                         Summary of Provisions

  S. 1194, as reported, would authorize appropriations in Title 
I for the Coast Guard accounts covered in the bill totaling 
approximately $9.4 billion for each of FY 2010 and FY 2011.
  Operating Expenses--The Coast Guard uses over two-thirds of 
its total budget conducting operations in support of its 
primary mission areas: protecting public safety and the marine 
environment; safeguarding our ports, waterways, and coastal 
areas; enforcing laws and treaties, including preventing 
illegal drug trafficking, interdicting illegal aliens and 
enforcing fisheries laws; maintaining aids to navigation; and 
preserving defense readiness. For each of FY 2010 and FY 2011, 
S. 1194 would authorize $6.556 billion for operating expenses, 
an increase of approximately $326 million from the FY 2009 
appropriated level. Of that amount, $24.5 million would be 
transferred from the Oil Spill Liability Trust Fund to the 
Operating Expenses account.
  AC&I--AC&I funds are used to pay for major capital 
improvements, including vessel and aircraft acquisition and 
rehabilitation, information management, and construction 
programs at selected facilities. Major AC&I projects include 
arming helicopters; recapitalizing the National Distress and 
Response System; implementing the vessel Automatic 
Identification System (AIS); aircraft sensor, avionics, and 
engine upgrades; the Integrated Deepwater System project; and 
various shore facility upgrades to those units in need. For 
each of FY 2010 and FY 2011, S. 1194 would authorize $1.384 
billion. The AC&I authorization directs that $20 million would 
be transferred from the Oil Spill Liability Trust Fund to the 
AC&I account.
  Retired Pay--Funds from this account are used for retired 
pay, annuities, and medical care for retired military personnel 
and former Lighthouse Service members, their dependents, and 
their survivors under chapter 55 of title 10, United States 
Code. S. 1194 would authorize $1.361 billion for this account 
for each of FY 2010 and FY 2011.
  Environmental Compliance and Restoration--This account 
provides resources to bring current and former Coast Guard 
facilities into compliance with national environmental 
standards. S. 1194 would authorize $13.198 million for this 
account for each of FY 2010 and FY 2011.
  RDT&E--Funds from this account are used for applied 
scientific research that aids in the development of hardware, 
procedures, and systems that directly contribute to increasing 
the productivity of Coast Guard operating and regulatory 
programs. S. 1194 would authorize $19.745 million for this 
account.
  Reserve Program--The Coast Guard Reserve Forces provide 
trained and qualified personnel available for active duty in 
time of war or national emergency and at such other times as 
the national security requires. Reserve personnel maintain 
their readiness through realistic coordinated mobilization 
exercises, formal military training and duty alongside regular 
Coast Guard members during routine and emergency operations. S. 
1194 would authorize $133.6 million to provide resources to 
fully train, support, and sustain a reserve force of 
approximately 8,100 members.
  Title II of S. 1194, as reported, would authorize the Coast 
Guard to enter into beneficial public-private partnerships, 
address administrative needs of the Coast Guard, and increase 
the authorities of the Coast Guard with respect to maritime 
authorities and activities with foreign governments.
  Title III of S. 1194, as reported, would improve the 
organizational flexibility of the Coast Guard.
  Title IV of S. 1194, as reported, would authorize several 
significant changes in the way the Coast Guard utilizes its 
Reserve personnel, conducts officer promotions, and retains 
personnel leave.
  Title V of S. 1194, as reported, contains provisions that 
would address the need for comprehensive reform of the Coast 
Guard's major systems acquisition processes and procedures. It 
would establish a leadership structure, direct accountability, 
and clear roles and responsibilities with regard to major 
acquisitions throughout the Coast Guard's chain of command by, 
among other things, creating a Chief Acquisition Officer at the 
Assistant Commandant level with mandatory acquisition and 
contracting qualifications and training. It would also prohibit 
the Coast Guard's continued use of a ``lead systems 
integrator'' throughout the entire Coast Guard on the date of 
enactment, except in limited instances in which the mechanism 
will instead be phased out by the end of 2012.
  Title VI of S. 1194, as reported, includes several provisions 
that would aid in improving navigation of vessels and the 
authority of the Coast Guard to regulate shipping.
  Title VII of S. 1194, as reported, would require that, when 
the Coast Guard is authorized by law to transfer ownership of a 
vessel to an eligible entity for use for educational, cultural, 
historical, charitable, recreational, or other public purposes, 
such a transfer must be conducted through the General Services 
Administration.
  Title VIII of S. 1194, as reported, includes several 
provisions found in S. 684, the Oil Pollution Prevention and 
Response Act of 2009, that would provide the Coast Guard and 
the National Oceanic and Atmospheric Administration (NOAA) with 
additional authorities to deal with oil spills under OPA 90.
  Title IX of S. 1194, as reported, includes several 
miscellaneous provisions that relate to the Coast Guard and 
Coast Guard missions.

                          Legislative History

  S. 1194 was introduced on June 4, 2009, by Senator Cantwell, 
Senator Snowe, Senator Rockefeller, and Senator Hutchison, and 
was referred to the Committee on Commerce, Science, and 
Transportation. An oversight hearing on Coast Guard issues was 
held on July 7, 2009. On July 8, 2009, the Committee ordered 
that S. 1194 be reported with an amendment in the nature of a 
substitute.

                            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 24, 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. 1194, the Coast 
Guard Authorization Act for Fiscal Years 2010 and 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. 1194--Coast Guard Authorization Act for Fiscal Years 2010 and 2011

    Summary: S. 1194 would amend various laws that govern the 
activities of the U.S. Coast Guard (USCG). The bill also would 
authorize appropriations totaling nearly $16.4 billion through 
fiscal year 2014, primarily for ongoing USCG operations during 
2010 and 2011. CBO estimates that appropriating the amounts 
specifically authorized by the bill (or estimated to be 
necessary to carry out title V) would result in discretionary 
spending of about $16 billion over the 2010-2014 period.
    Implementing title V, which addresses the Coast Guard's 
acquisition practices, could result in future savings in 
discretionary spending, but CBO cannot estimate such savings or 
clearly identify how much of that savings should be attributed 
to the legislation rather than to reforms that the Coast Guard 
has already begun implementing under existing authority.
    Enacting S. 1194 would increase direct spending by an 
estimated $6 million over the 2010-2019 period. First, the bill 
would increase certain annual payments made from the Oil Spill 
Liability Trust Fund (OSLTF) by $4 million over the 2010-2019 
period. The bill also would reduce offsetting receipts (a 
credit against direct spending) by directing the Coast Guard to 
donate--rather than sell--certain properties to local 
governments in Michigan. We estimate that the resulting loss of 
receipts would total about $2 million over the 2010-2019 
period. Enacting S. 1194 would not affect revenues.
    S. 1194 contains intergovernmental and private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA) 
because it would increase the costs of complying with existing 
mandates related to active-duty personnel in the Coast Guard.
    The bill also would impose additional intergovernmental 
mandates by preempting state laws. CBO estimates that the 
compliance costs for public entities would not exceed the 
annual threshold established in UMRA for intergovernmental 
mandates ($69 million in 2009, adjusted annually for 
inflation). In addition, the bill would impose additional 
private-sector mandates on owners and operators of certain 
vessels and facilities. The cost of most of the mandates on 
private entities would be small; however, the costs of some 
mandates are uncertain and would depend on future regulations. 
Therefore, CBO cannot determine whether the aggregate cost of 
the mandates in the bill would exceed the annual threshold 
established in UMRA for private-sector mandates ($139 million 
in 2009, adjusted annually for inflation).
    Estimated cost to the Federal Government: The estimated 
budgetary effects of S. 1194 are summarized in the following 
table. The costs of this legislation fall within budget 
functions 300 (natural resources and environment) and 400 
(transportation).
    Basis of estimate: For this estimate, CBO assumes that S. 
1194 will be enacted early in fiscal year 2010 and that the 
amounts specifically authorized by the bill or estimated to be 
necessary will be appropriated for each year. Estimated outlays 
are based on historical spending patterns for the authorized 
activities.

Spending subject to appropriation

    The proposed authorization levels shown in the table are 
those specified by S. 1194 for ongoing Coast Guard activities 
and for certain new or existing programs of the Department of 
Transportation (DOT) and the National Oceanic and Atmospheric 
Administration (NOAA). The table excludes $24 million to be 
derived from the OSLTF for USCG operating expenses because that 
amount is already authorized under existing law.

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

USCG authorizations:\1\
    Authorization level......................    8,083    8,083        0        0        0    16,166     16,166
    Estimated outlays........................    5,489    6,886    1,987      927      449    15,738     16,166
USCG acquisition reform:
    Estimated authorization level............        5        0        0        0        0         5          5
    Estimated outlays........................        3        2        0        0        0         5          5
LORAN-C:
    Authorization level......................       37       37        0        0        0        74         74
    Estimated outlays........................       29       35        7        2        1        74         74
Grants to tribes for oil spill recovery:
    Authorization level......................        1        1        1        1        1         3          3
    Estimated outlays........................        1        1        1        1        1         3          3
NOAA authorizations:\2\
    Authorization level......................       26       25       25       25       25       126        251
    Estimated outlays........................       17       22       24       25       25       113        238
    Total proposed changes:
        Estimated authorization level........    8,152    8,146       26       26       26    16,374     16,499
        Estimated outlays....................    5,539    6,946    2,019      955      476    15,933     16,486

                                           CHANGES IN DIRECT SPENDING

Estimated budget authority...................        0        *        *        *        *         2          6
Estimated outlays............................        0        *        *        *        *         2         6
----------------------------------------------------------------------------------------------------------------
\1\The USCG received appropriations totaling over $8.3 billion for fiscal year 2009, including $240 million
  under the American Recovery and Reinvestment Act of 2009.
\2\NOAA authorizations and outlays of $25 million a year would continue over the 2015-2019 period.
Notes: USCG = U.S. Coast Guard; NOAA = National Oceanic and Atmospheric Administration; LORAN-C = Long-Range Aid
  to Navigation;  * = less than $500,000; numbers may not add up to totals because of rounding.

    USCG Authorizations. Title I would reauthorize funding for 
ongoing USCG activities for 2010 and 2011. Specifically, for 
each of the two years, title I would authorize the 
appropriation of about $6.7 billion for USCG operations 
(including $134 million for reserve training and $13 million 
for environmental compliance), about $1.4 billion for capital 
acquisitions, and nearly $20 million for research programs. Of 
the amounts authorized by title I for each year, $44 million 
would be derived from the OSLTF.
    CBO estimates that appropriating the amounts specified in 
title I for ongoing USCG activities would cost nearly $5.5 
billion in 2010 and by about $15.7 billion over the 2010-2014 
period.
    Title I also would authorize the appropriation of about 
$1.4 billion for Coast Guard retirement benefits in each of 
fiscal years 2010 and 2011, but those amounts are excluded from 
this estimate because such benefits are considered an 
entitlement under current law and are not subject to 
appropriation. Thus, authorizing those amounts would have no 
additional budgetary impact.
    USCG Acquisition Reform. Title V addresses the contracting 
practices used by the Coast Guard to acquire capital assets 
such as vessels and aircraft. Assuming appropriation of the 
necessary amounts, CBO estimates that implementing title V 
would cost the USCG about $5 million over the next two years, 
mostly to develop life-cycle cost estimates for current 
acquisition initiatives. We estimate that other administrative 
costs for additional testing and certification (and to develop 
life-cycle cost estimates for major acquisition initiatives in 
the future) would not significantly affect the agency's annual 
budget.
    Title V would restrict the Coast Guard's reliance on 
private entities to manage major acquisitions and would require 
the agency to revise other procurement practices to rectify 
problems identified by the Department of Defense (DoD) and 
other federal agencies. It also would require that many future 
acquisitions be open to competition and be subject to specified 
testing, analysis, and certification requirements. Finally, the 
title would require the Coast Guard to hire additional 
contracting and management personnel and to produce various 
reports on its acquisition activities.
    The contracting reforms required by S. 1194 could result in 
lower procurement expenditures in the future. Much of the long-
term savings, however, might occur even in the absence of the 
legislation because the Coast Guard is already implementing 
many of those reforms, including hiring additional contracting 
personnel. CBO cannot estimate the likely size of cost savings 
from improving procurement practices or clearly identify what 
proportion of such savings would be attributable to the 
legislation and what share would result from changes that the 
Coast Guard is already implementing.
    Any savings realized by the Coast Guard as a result of the 
legislation would depend on future changes in the level of 
discretionary appropriations for capital acquisitions. Annual 
funding for Coast Guard acquisition has risen rapidly in recent 
years--from about $640 million in fiscal year 2002 to nearly 
$1.6 billion for 2009. (The 2009 figure includes nearly $100 
million provided by the American Recovery and Reinvestment Act 
of 2009.) Most of the increase over this period stems from new 
funding for the Integrated Deepwater Initiative, which will 
provide for the replacement of many of the agency's vessels, 
aircraft, and other assets at an estimated cost of between $25 
billion to $30 billion over the next 25 years.
    LORAN-C. Title VI would authorize the appropriation of $37 
million for each of fiscal years 2010 and 2011 to the 
Department of Transportation to reimburse the Coast Guard for 
operating the current system of long-range aids to navigation 
(known as LORAN-C). Appropriating the authorized amounts would 
cost $74 million over the 2010-2014 period.
    Grants to Tribes for Oil Spill Recovery. Title VII would 
authorize the appropriation of $500,000 a year through 2014 for 
grants and other assistance to tribal governments. The funding 
would be used by the tribes to help respond to oil spills. 
Appropriating the authorized amounts would cost about $3 
million over the 2010-2014 period.
    NOAA Authorizations. S. 1194 would authorize appropriations 
for certain programs carried out by NOAA. CBO estimates that 
appropriating those amounts would cost $113 million over the 
2010-2014 period. The authorizations for NOAA include:
           $15 million a year from the OSLTF for oil-
        spill response and damage assessments;
           $10 million a year through 2014 for a 
        program to prevent oil spills from small vessels; and
           $0.7 million in 2010 to conduct an emergency 
        drill in the Olympic Coast National Marine Sanctuary.

Changes in direct spending

    Enacting section 814 would increase the annual payment made 
from the Oil Spill Liability Trust Fund to OSRI (an Alaska-
based research institute) by an estimated $400,000, resulting 
in additional direct spending of about $4 million over the 
2010-2019 period.
    Under current law, OSRI receives an annual payment from the 
OSLTF equal to the interest credited (in the previous year) on 
$22.5 million of that fund's unspent balances. Such payments--
about $1 million a year--are not subject to appropriation 
action and are used by the institute to carry out research on 
oil spills.
    Section 814 would increase the portion of the trust fund's 
principal that would be held on behalf of OSRI by about $13 
million, resulting in the increase in annual payments beginning 
in 2011.
    Title IX would direct the USCG to donate certain real and 
personal property located in Michigan to local governments. CBO 
estimates that one of the affected assets--a 5.5-acre parcel of 
land in the city of Marquette--has significant market value. 
Based on local property values and on information provided by 
the General Services Administration regarding disposals of 
surplus USCG property, we estimate that donating the Marquette 
parcel to the city (rather than selling it under existing 
authority) would result in a loss of offsetting receipts of 
about $2 million over the next 10 years. We expect that all of 
the other affected property would either be retained by the 
Coast Guard or eventually donated to local governments under 
current law; therefore, donating those assets would result in 
no loss of offsetting receipts.
    Intergovernmental and private-sector impact: S. 1194 would 
impose mandates, as defined in UMRA, because it would increase 
the costs of complying with existing intergovernmental and 
private-sector mandates related to active-duty personnel in the 
Coast Guard. The bill also would impose additional 
intergovernmental mandates by preempting state laws. CBO 
estimates that the compliance costs for public entities would 
not exceed the annual threshold established in UMRA for 
intergovernmental mandates ($69 million in 2009, adjusted 
annually for inflation).
    The bill also would impose additional new safety 
requirements on private entities. The costs to private entities 
to comply with some of the mandates in the bill are uncertain 
and would depend, in part, on future regulations. Therefore, 
CBO cannot determine whether the aggregate cost of the mandates 
in the bill would exceed the annual threshold established in 
UMRA for private-sector mandates ($139 million in 2009, 
adjusted annually for inflation).

Mandates that apply to both public and private entities

    Increasing Authorized Coast Guard Personnel. The bill would 
increase the costs of complying with existing intergovernmental 
and private-sector mandates by increasing the number of active-
duty personnel in the Coast Guard. The additional personnel 
would be eligible for protections under the Servicemembers 
Civil Relief Act (SCRA). Under SCRA, servicemembers have the 
right to maintain a single state of residence for purposes of 
paying state and local personal income taxes. They also have 
the right to request a deferral in the payment of certain state 
and local taxes and fees. SCRA also requires creditors to 
charge no more than 6 percent interest on servicemembers' 
obligations when such obligations predate active-duty service 
and allows courts to temporarily stay certain civil 
proceedings, such as evictions, foreclosures, and 
repossessions. Extending these existing protections to 
additional servicemembers would constitute mandates as defined 
in UMRA and could result in lost revenues to government and 
private-sector entities.
    The number of active-duty servicemembers covered by SCRA 
would increase by less than 1 percent, CBO estimates. 
Servicemembers' utilization of the various provisions of the 
SCRA depends on a number of uncertain factors, including how 
often and how long they are deployed. CBO expects, however, 
that relatively few of the added servicemembers would take 
advantage of the deferrals in certain state and local tax 
payments; the lost revenues to those governments thus would be 
insignificant. Moreover, because the increase in the number of 
active-duty servicemembers covered by SCRA would be so small, 
CBO expects that the increased costs for private-sector 
entities also would be small.

Mandates that apply to public entities only

    In addition to the mandates discussed above, the bill would 
preempt state and local authority governing vessels 
transferring oil. The bill also could preempt state authority 
by granting privately owned watercraft equal access to the 
Atlantic Intracoastal Waterway. Because preemptions limit the 
authority of state and local governments, they are considered 
intergovernmental mandates under UMRA, but CBO estimates that 
those preemptions would not impose significant additional costs 
on state, local, or tribal governments as regulators.

Mandates that apply to private entities only

    Standards for Facilities and Vessels that Transfer Oil. S. 
1194 would require certain facilities and vessels to meet new 
safety standards when transferring oil. The bill would direct 
the Coast Guard to issue regulations to reduce the risk of oil 
spills in such operations. In implementing the standards, the 
Secretary would have to consider updating equipment 
requirements and operational procedures in high-risk areas. The 
costs of those requirements are uncertain and would depend upon 
future actions of the Secretary.
    Extension of Financial Responsibility Requirements. The 
bill would extend to tank vessels weighing more than 100 gross 
tons the current requirement that vessels establish and 
maintain evidence of financial responsibility sufficient to 
meet their liability in the event of an oil spill. According to 
the Coast Guard, such evidence is usually established through 
an insurance guarantee. In effect, this provision would require 
owners and operators to show proof of the insurance that they 
are already required to carry under current law. Consequently, 
CBO estimates that the cost to comply with this requirement 
would be small.
    Inspection Requirements for Towing Vessels. The bill would 
require the Secretary of Homeland Security to issue a final 
rule for inspections of towing vessels within two years of the 
date of enactment. Current law requires the Secretary to issue 
regulations for the inspection of towing vessels and authorizes 
the Secretary to establish a safety management system. To the 
extent that the bill would accelerate the implementation of any 
of those requirements, the bill would impose a private-sector 
mandate. Based on information from the Coast Guard, CBO expects 
that the cost of the mandate, if imposed, would be relatively 
small.
    Estimate prepared by: Federal Spending: Deborah Reis; 
Impact on State, Local, and Tribal Governments: Ryan Miller; 
Impact on the Private Sector: Amy Petz and Jacob Kuipers.
    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. 1194 as reported by the Committee would authorize 
appropriations to continue existing Coast Guard programs and 
make a number of changes to current law. The bill would have 
little, if any, regulatory impact. It would require changes to 
the contracting approach used by the Coast Guard in its current 
and future major systems acquisitions, and improvements to the 
Coast Guard's management of this program.

                            ECONOMIC IMPACT

  S. 1194 would enhance existing Coast Guard authorities and 
authorize funding for Coast Guard activities that have a 
positive impact on the U.S. economy by ensuring the safety and 
security of maritime commerce and enforcing our fisheries laws. 
For example, the provisions of title VIII would improve oil 
spill prevention and response capabilities that could assist in 
avoiding future incidents with a negative economic impact at 
the local, State, and Federal levels. The legislation also 
contains changes to the contracting approach used by the Coast 
Guard in its current and future major acquisitions, including 
requirements that will increase competition and improve 
contractor oversight, all of which are aimed at reducing 
unnecessary costs to taxpayers and the Federal government.

                                PRIVACY

  The reported bill would have little, if any, impact on the 
personal privacy of individuals.

                               PAPERWORK

  The reported bill should not significantly 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                                          Provision      Member
----------------------------------------------------------------------------------------------------------------
Sec. 805                                                                                  Olympic       Senator
                                                                                                 Coast         Cantwell
                                                                                         National
                                                                                           Marine
                                                                                        Sanctuary
----------------------------------------------------------------------------------------------------------------
Sec. 814                                                                                Oil spill       Senator
                                                                                        liability        Begich
                                                                                       trust fund
                                                                                       investment
                                                                                           amount
----------------------------------------------------------------------------------------------------------------

                      Section-by-Section Analysis


                         title i--authorization


Section 101. Authorization of appropriations
  This section would authorize funds for each of fiscal years 
2010 and 2011 at the following levels: $6.556 billion for 
operating expenses; $1.384 billion for AC&I $1.361 billion for 
retired pay; $13.2 million for environmental compliance and 
restoration; $91.7 million for RDT&E and $133.6 million for 
the reserve program.
Section 102. Authorized Levels of Military Strength and Training
  This section would authorize a Coast Guard end-of-year 
strength of 49,954 active duty military personnel for fiscal 
year 2010 and 52,452 active duty military personnel for fiscal 
year 2011. The authorized strength does not include members of 
the Ready Reserve called to active duty for special or 
emergency augmentation of regular Coast Guard forces for 
periods of 180 days or less. This section also would authorize 
average military training student loads for fiscal year 2010 
and 2011 as follows:

----------------------------------------------------------------------------------------------------------------
                                                                                         FY 2010       FY 2011
                                      Training                                           Student       Student
                                                                                          Years         Years
----------------------------------------------------------------------------------------------------------------
Recruit/Special                                                                             2,500         2,625
----------------------------------------------------------------------------------------------------------------
Flight                                                                                        170           179
----------------------------------------------------------------------------------------------------------------
Professional                                                                                  350           368
----------------------------------------------------------------------------------------------------------------
Officer Acquisition                                                                         1,300         1,365
----------------------------------------------------------------------------------------------------------------

                        title ii--administration


Section 201. Authority to distribute funds through grants, cooperative 
        agreements, and contracts to maritime authorities and 
        organizations
  This section would give the Coast Guard limited authority to 
provide financial support (approx. $100,000 per year) to 
international maritime authorities and organizations that 
collect and maintain databases in order to obtain information 
on foreign vessels and ports that is directly linked to 
maintaining and enhancing United States maritime safety and 
security. The provision requires the Commandant to consult with 
the Secretary of State when providing such support to 
international authorities and organizations. In order to access 
global safety and security information on foreign vessels, the 
U.S. entered into an agreement with six foreign maritime 
authorities to form EQUASIS, a global clearinghouse for Port 
State Control information from all countries. However, current 
statutory authority does not permit the Coast Guard to use 
appropriated funds to support, maintain, and expand these 
international Port State Control efforts of EQUASIS and other 
similar systems.
Section 202. Assistance to foreign governments and maritime authorities
  Section 202 of the Coast Guard and Maritime Transportation 
Act of 2006 amended 14 U.S.C. 149, which authorizes the Coast 
Guard to provide technical assistance, including law 
enforcement and maritime safety and security training, to 
foreign maritime authorities in conjunction with regular Coast 
Guard operations. The Coast Guard may provide such technical 
assistance in coordination with the Secretary of State.
  This section would clarify the Coast Guard's authority to 
expend funds to assist foreign governments and maritime 
authorities, including the detail of personnel, convening 
conferences and seminars, and distributing publications 
designed to develop the maritime capabilities of key partner 
nations, all of which might be considered outside the scope of 
traditional ``technical assistance.''
Section 203. Cooperative agreements for industrial activities
  This section would simplify accounting requirements by 
authorizing appropriations to remain available for payment 
beyond the year in which they are appropriated for industrial 
work performed by the Coast Guard for the Department of Defense 
or Department of Homeland Security.
Section 204. Defining Coast Guard vessels and aircraft
  This section would amend title 14, United States Code, by 
adding section 638a. The new section would define ``Coast Guard 
vessels and aircraft'' for the purposes of 14 U.S.C. 637 and 
638. The new definition would include non-traditional vessels 
and aircraft from which Coast Guard personnel may conduct Coast 
Guard missions and exercise Coast Guard authority. This would 
expand the type of assets from which the Coast Guard may 
exercise its authority to enforce U.S. law, while ensuring that 
the men and women of the Coast Guard are given the appropriate 
statutory protections.


                        title iii--organization


Section 301. Vice commandant; vice admirals
  This section would increase the organizational flexibility of 
the current Coast Guard command structure as well as increase 
alignment with other armed forces.
  Section 301(a) would change the vice commandant position from 
a 3-star position to a 4-star position, which will increase the 
Coast Guard's alignment with other armed forces.
  Section 301(b) would create a new structure for vice 
admirals. Section 50(a)(1) of title 14, United States Code, 
authorizes the President to appoint no more than four 
``positions of importance and responsibility.'' This provision 
would not set a percentage distribution of commissioned 
officers on active duty in general officer or flag officer 
grades as in the other armed forces. Instead, the provision 
would parallel the command structure of the Marine Corps, 
fixing the number of vice admirals at no more than four.
  Section 50(a)(2) of title 14, United States Code, would 
retain the existing scheme for the nomination, appointment and 
confirmation of officers. However, this provision contemplates 
the reappointment of officers and expressly provides for Senate 
confirmation prior to such reappointment.
  Section 50(b)(1) of title 14, United States Code, would carry 
forward the language of 14 U.S.C. 50(b) and 50a(b) with regard 
to the effective and termination dates that the officer assumes 
and attaches from duty.
  Section 50(b)(2) of title 14, United States Code, would 
provide the treatment of grade of officers who are transferred 
from one appointment, hospitalized, or awaiting retirement. 
Section 50(c) of title 14, United States Code, would adopt like 
treatment of permanency of grade and promotion afforded to such 
officers of the other armed forces. Section 50(d) of title 14, 
United States Code, would borrow the notification and 
recommendation concept of 10 U.S.C. 601(d)(2).
Section 302. Number and distribution of commissioned officers on the 
        Active Duty Promotion List
  This section would amend section 42 of title 14, United 
States Code, to permit the Secretary to continue the 6,700 
Coast Guard commissioned officer cap beyond FY 2006, applicable 
only to the commissioned officers on the Coast Guard Active 
Duty Promotion List, and provide guidance for the management of 
these commissioned officers.
  Subsection (a), in addition to continuing the 6,700 beyond FY 
2006, would provide a temporary two percent (2%) increase, or 
buffer, to accommodate a recurrent and temporary, annual spike 
in the number of Coast Guard commissioned officers. Current 
officer management practice is to incorporate a buffer of 
approximately 200 into the officer cap to accommodate the 
number of commissioned officers the Coast Guard Academy 
graduates annually, thereby ensuring the statutory cap of 6,700 
is not exceeded.


                          title iv--personnel


Section 401. Leave retention authority
  This section would give the Secretary, and all other service 
secretaries, the authority to allow service members to retain 
leave they would otherwise forfeit due to support of major 
disasters or other emergencies declared by the President under 
the Robert T. Stafford Disaster Relief and Emergency Assistance 
Act (Public Law 93-288, 42 U.S.C. 5121 et seq.).
  In recent years, several major events such as the September 
11, 2001, attacks and Hurricanes Katrina, Rita, and Wilma 
prevented many Coast Guard members from taking leave that they 
had accrued before the end of a fiscal year. Since only 60 days 
of leave may be carried over from one fiscal year to the next, 
this resulted in Coast Guard members losing leave they earned.
Section 402. Legal assistance for Coast Guard reservists
  Currently, Coast Guard reservists are not covered under 10 
U.S.C. 1044, which allows for legal assistance in connection 
with their personal civil affairs. This provision would amend 
10 U.S.C. 1044(a)(4) to establish parity among all similarly 
situated reservists by making Coast Guard reservists who have 
served on active duty for more than 30 days under mobilization 
authority eligible for legal assistance upon release from 
active duty.
Section 403. Reimbursement for certain medical related expenses
  This section would amend 10 U.S.C. 1074i to allow for the 
reimbursement of travel-related expenses when a service member 
is stationed on an INCONUS island and his/her family member is 
referred to a specialty care provider off-island that is less 
than 100 miles from the primary care provider. Currently, there 
is an authorization for the reimbursement of travel-related 
expenses incurred by the beneficiaries of active duty military 
personnel when their primary care physician refers such 
beneficiary to a specialty care provider who provides services 
more than 100 miles from the location in which the primary care 
physician provides services. Although the medical-related 
travel costs are covered for active duty members receiving 
treatment, such expenses incurred by family members are 
currently not reimbursable because the travel distance is less 
than 100 miles.
Section 404. Reserve commissioned warrant officer to lieutenant program
  Currently, the Coast Guard has more commissioned warrant 
officers (CWOs) than vacant billets on the Reserve Personnel 
Allowance List; inversely, there are fewer junior officers than 
authorized billets. Also, there is no presidential authority to 
appoint temporary commissioned officers in the Reserves (in a 
grade not above lieutenant) from among the Reserve CWOs.
  This section would expand the President's existing authority 
to appoint temporary commissioned officers in the Regular Coast 
Guard from among CWOs to cover the appointment of temporary 
commissioned officers in the Reserves (in a grade not above 
lieutenant) from among Reserve CWOs. The qualifications and 
requirements that apply to appointments from among the CWOs in 
the Regular Coast Guard would apply to those appointments from 
the Reserve CWOs.
Section 405. Enhanced status quo officer promotion system
  This section would address a deficiency in the existing Coast 
Guard officer promotion system regarding the Coast Guard's 
ability to fulfill specialty needs of its officer corps which 
may arise from time to time. It would preserve the ``best 
qualified'' promotion system while affording the Commandant the 
flexibility, when needed, to furnish selection boards with 
specific direction to consider the specialty needs of the 
officer corps during the selection programs. Such specialty 
needs selections would be limited, as are ``below promotion 
zone'' selections.
Section 406. Appointment of civilian Coast Guard judges
  This section would provide a limited authority to enable the 
Secretary to appoint civilian judges to the Coast Guard Court 
as vacancies occur. As part of our armed forces, the Coast 
Guard is required to operate an Appellate Court to hear appeals 
from courts-martial. In accordance with Article 66(a) of the 
Uniform Code of Military Justice, the judges on this court are 
a mixture of military and civilian personnel.
Section 407. Coast Guard participation in the Armed Forces Retirement 
        Home System
  This section would provide the Coast Guard parity with 
veterans of the other military services and allow Coast Guard 
enlisted and warrant officer personnel eligibility for 
admission into the Armed Forces Retirement Home (AFRH) system. 
The AFRH system is funded by a trust fund that receives 
revenues from small monthly contributions from all active duty 
enlisted and warrant officer personnel and a portion of all 
enlisted and warrant officer Uniform Code of Military Justice 
fines and forfeitures. Under current law (24 U.S.C. 401), only 
retirees from the Army, Navy, Air Force, and Marine Corps are 
eligible for admission into the AFRH. The Coast Guard is 
currently excluded, except when it operates as a service in the 
Navy.
Section 408. Crew wages on passenger vessels
  This section would impose a three year limitation on class 
action suits that are the subject of violations of Section 
10313 and Section 10504 of title 46, United States Code. 
Further, the provision permits the employer of a seaman to make 
payments to a seaman by direct deposit into a checking, savings 
or other such account of the seaman's choosing and with the 
seaman's explicit written authorization.


                      title v--acquisition reform


Section 501. Chief acquisition officer
  This section would authorize the establishment of a chief 
acquisition officer who has acquisition management as their 
primary duty, to ensure that the Coast Guard acquires and 
delivers assets and capabilities in the best interest of the 
federal government and increases the Agency's operational 
readiness and performance. This section would require, at 
minimum, that the Chief Acquisition Officer serve at the level 
of Assistant Commandant with a rank of Rear Admiral or be a 
career reserved civilian from the Senior Executive Service.
  This section also would require that the Chief Acquisition 
Officer satisfy a list of qualifications, primary among them 
having the highest Department of Homeland Security Level III 
acquisition certification, with ten years of acquisition 
experience, four of which were spent as either the program 
executive officer, program or deputy program manager of a Level 
I or Level II project or program, or a combination of such 
positions. Further, this section would define the functions of 
the Chief Acquisition Officer. The Chief Acquisition Officer 
will serve as the component acquisition executive for the Coast 
Guard. The Chief Acquisition Officer should also perform the 
duties of the Component Acquisition Executive pursuant to 
Departmental policies and procedures.
Section 502. Acquisitions
  This section would create a new chapter 15 in title 14 of the 
United States Code, with the following subchapters:


                    subchapter 1--general provisions


Section 561. Acquisition directorate
  New section 561 of Title 14 would establish an acquisition 
directorate to provide oversight for the implementation and 
management of all Coast Guard acquisition processes, programs, 
and projects.
Section 562. Senior acquisition leadership team
  New section 562 would mandate that the Commandant establish a 
leadership team to advise, inform, and support acquisition 
processes, programs, and projects that comprises the Vice 
Commandant, Deputy and Assistant Commandants, appropriate 
senior staff members, and any other Coast Guard officer or 
employee as designated by the Commandant.
Section 563. Improvements in Coast Guard acquisition management
  New section 563 would define the roles and responsibilities 
of program and project managers, as well as specify the level 
of certification required in order to be assigned to manage a 
program or project. In addition, this section would mandate 
that the Commandant issue guidance for program and project 
managers on tenure and accountability. Further, this section 
would specify positions that require certain competencies and 
functions to ensure that the Agency has the relevant expertise 
and responsibilities to carry out acquisition program 
functions. Also, this section would establish management 
information capabilities to improve workforce management, and 
identifies specific career paths to enable effective 
procurement activities. The requirements are intended to 
leverage Department-wide initiatives to improve acquisition 
management, while allowing for additional tailored measures to 
meet specific needs of the Coast Guard.
Sec. 564. Recognition of Coast Guard personnel for excellence in 
        acquisition
  New section 564 would require the Commandant to implement a 
program to recognize individuals and teams that contribute to 
successful acquisition program performance. It would mandate 
the establishment of specific award categories, criteria, and 
eligibility, in addition to procedures for the award of cash 
bonuses for civilian career employees.
Section 565. Prohibition on use of lead systems integrators
  New section 565 would prohibit the use of a Lead Systems 
Integrator on the date of enactment of the Act. It would 
require full and open competition for any acquisition contract 
in accordance with Federal Acquisition Regulations. In 
addition, this section would ensure that the Coast Guard can 
continue, through contract closeout, to use a Lead Systems 
Integrator only for delivery orders and task orders for 
National Security Cutters 2 and 3, the C4ISR projects directly 
related to the Integrated Deepwater Program, and for the 
completion of the National Distress and Response System 
Modernization Program if the Commandant certifies that in so 
doing, the execution of such task orders and delivery orders is 
in the best interest of the government and is in accordance 
with Federal Acquisition Regulations. These exceptions would 
only be permitted through September 30, 2012.
Section 566. Required contract terms
  New section 566 would apply to all major system acquisition 
projects or programs. It would prohibit self certification by a 
contractor or subcontractor, and require that all capabilities 
or assets under contract have a third party certification or be 
certified directly by the Commandant. Further, this section 
would require that contractor and subcontractor performance be 
based on the status of all work performed. In addition, this 
section would require that all contracts for the acquisition of 
air, surface, or shore capabilities be in compliance with the 
air, surface, or shore standard used by the Department of the 
Navy. This section also would require that any contract awarded 
to acquire an Offshore Patrol Cutter includes provisions 
specifying the service life, fatigue life, maximum range and 
speed, and days underway in general Atlantic and North Pacific 
sea conditions that the cutter will be built to achieve. 
Lastly, this section would require that the Commandant 
establish and maintain Integrated Product teams and Technical 
Authorities to establish, approve and maintain technical 
requirements.
Section 567. Department of Defense consultation
  New section 567 would require the Commandant to arrange for 
the Department of Defense to have a supporting role of 
contracting and management of Coast Guard acquisition programs. 
This section would allow the Coast Guard to enter into a 
memorandum of understanding or agreement with the Secretary of 
the Navy to leverage and obtain their research, development, 
and acquisition resources. Arrangements made with the Secretary 
of Defense shall be made with the concurrence of the Secretary.
Section 568. Undefinitized contractual actions
  New section 568 would prohibit the use of undefinitized 
contracts by the Coast Guard unless such a contract is directly 
approved by the Chief Acquisition Officer of the Coast Guard. 
If the Chief Acquisition Officer approves requests for 
undefinitized contracts, this section would require agreement 
upon contractual terms, specification, and price within 180 
days after the submission of the request for approval. Further, 
this section would provide a limitation on the obligation of 
funds that exceed 50 percent of the negotiated overall ceiling 
price until the contractual terms, specification, and overall 
price are definitized for such contractual action. This section 
would allow the Commandant to waive the application of this 
section if such a contract is necessary to support a 
contingency operation, a transportation security incident, an 
operation in response to an unacceptable threat to human health 
or safety, or an operation in response to a natural, major or 
emergency disaster as designated by the President.


       subchapter 2--improved acquisition process and procedures


Section 571. Identification of major systems acquisitions
  New section 571 would require the Commandant to develop and 
implement mechanisms to support operational requirements for 
major systems acquisition programs and projects. Further, this 
section would stipulate that the Commandant may not initiate a 
major systems acquisition program or project until the 
following requirements are met:
  
   A mission analysis to identify a clear mission need to 
address gaps in capability;
   A mission needs statement;
   An affordability assessment that includes an assessment of 
trade-offs;
   A concept-of-operations document;
   A capability development plan; and
   A resource funding proposal.
  
  Also, this section would require the Commandant to develop 
staffing predictions, establish performance initiatives, and 
determine preliminary training needs.
Section 572. Acquisition
  New section 572 would mandate that the Commandant complete 
the objectives listed below prior to establishing a major 
systems acquisition program or project:
  
   Establish clear operational requirements;
   Develop an acquisition program or project baseline;
   Conduct a life-cycle cost estimate; and
   Complete an alternatives analysis conducted by a third 
party.
  
  In addition, this section would mandate the development and 
use of a Test and Evaluation Master Plan. This plan would 
require the establishment of a strategy to verify capability 
design and development, and require that adequate developmental 
and operational tests and evaluations are conducted. The Test 
and Evaluation Master Plan also would identify critical 
operational issues, operational test and evaluation phases, 
require early operational assessments, and would estimate the 
resources required for the test and evaluation activities. The 
Coast Guard may not move forward with a major systems 
acquisition program or project or award any production contract 
until the Test and Evaluation Master Plan is approved by the 
Chief Acquisition Officer. These procedures are consistent with 
the Department of Homeland Security's acquisition procedures.
  Further, this section would mandate that, upon completion of 
the objectives above, and the development and approval of the 
Test and Evaluation Plan, a major systems acquisition program 
or project may not enter into the obtain phase until approval 
is granted by the Department of Homeland Security Acquisition 
Review Board or the Joint Review Board.
Section 573. Preliminary development and demonstration
  New section 573 would require that all developmental and 
operational tests and evaluations are conducted in accordance 
with the master plan developed under section 572(c)(1), and 
would require the Commandant to ensure that during the 
preliminary development and demonstration phase major systems 
acquisition programs or projects demonstrate the following:
  
   The design, manufacturing, and production solution is based 
upon a stable and cost-effective design;
   The design is mature enough to commit to full scale 
production; and
   The product capabilities meet contract specifications, 
acceptable operational performance requirements, and system 
security requirements.
  
  In addition, this section would require that the Coast Guard 
use third parties with expertise in testing and evaluating the 
capabilities or assets being acquired whenever the Coast Guard 
lacks the capability to do so. It would also mandate that 
communication concerns identified during the development and 
demonstration phase be communicated no later than 30 days after 
completion of the test, evaluation, or both as the case may be, 
to the program or project manager and to the Chief Acquisition 
Officer.
  This section also contains specific requirements that are to 
be met with regard to technical certification of major systems 
acquisition programs or projects. The Coast Guard would be 
mandated to certify major systems acquisition programs or 
projects through the Coast Guard's technical authority after 
review by an independent third party. This review would be 
satisfied by the test and evaluation requirements described in 
subsection (b). This review requirement is not intended to 
diminish, limit, or otherwise affect the authority or 
responsibility of the Coast Guard technical authority, nor is 
it intended to make the Coast Guard technical authority 
subordinate to an independent third party or to impose a review 
requirement when the Coast Guard possesses the capability to 
conduct the tests and evaluations required by a master plan. 
All electronics on any asset that requires TEMPEST 
certification would be tested and certified in accordance with 
the Master Plan standards by an independent third party 
authorized by the federal government.
  Lastly, this section would mandate that all cutters acquired 
by the Coast Guard be classed by the American Bureau of 
Shipping before final acceptance, and that the Commandant may 
not proceed to full scale production, deployment, and support 
of a major systems acquisition program or project until 
approval is granted by the Department of Homeland Security 
Acquisition Review Board or the Joint Review Board.
Section 574. Acquisition production, deployment, and support
  New section 574 would require the Commandant to conduct 
follow-on testing, monitor performance, and correct 
deficiencies for assets or systems acquired. In addition, the 
Commandant would be mandated to conduct acceptance tests and 
trials upon the delivery of each asset or system to ensure full 
operational capability is achieved.
  In addition, this section makes clear that the Commandant 
would be required to execute the production contracts, make 
sure the delivered products meet cost and schedule requirements 
in accordance with the acquisition program baseline, validate 
manpower and training requirements to support the operation of 
the acquired product or system, and prepare transition plans 
for programmatic sustainment, operations, and support.
Section 575. Acquisition program baseline breach
  New section 575 would direct the Commandant to submit a 
report to Congress not later than 30 days after the date the 
Chief Acquisition Officer of the Coast Guard becomes aware of a 
breach of an acquisition program baseline for any Level I or 
Level II acquisition program. The breach would be defined as a 
likely cost overrun greater than 15 percent of the acquisition 
program baseline, a delay of more than 180 days in the delivery 
schedule or an anticipated failure for any individual asset or 
class of assets to satisfy any key performance threshold or 
parameter under the Acquisition Program Baseline. If 
substantial variances of greater than a 25 percent cost overrun 
or a delay of more than one year are likely, additional 
information would be required from the Commandant.


                       subchapter 3--definitions


Section 581. Definitions
  New section 581 would define key terms used in the new 
chapter created by Sec. 502 of the Act.
Section 503. Report and regulations on excess pass-through charges
  This section would require a report from the Comptroller 
General not later than 180 days after the date of enactment of 
the Act on pass-through charges on contracts, subcontracts, 
delivery orders, and task orders that were executed by a Lead 
Systems Integrator to the Coast Guard during the 3 calendar 
years preceding the date of enactment of this Act. In addition, 
this section would require the Commandant to prescribe 
regulations to ensure that such pass-through charges are not 
excessive in relation to the cost of work performed, and set 
forth clear standards for determining when no value has been 
added to a contract by a contractor or subcontractor. Also the 
regulations would set forth procedures for preventing the 
payment by the government of excessive pass through charges, 
and identify any exceptions determined by the Commandant to be 
in the best interest of the Government.


                   title vi--shipping and navigation


Section 601. Technical amendments to Chapter 313 of title 46, United 
        States Code
  This section would make two technical corrections to Chapter 
313 of title 46, United States Code. The first correction would 
clean up the Chapter by replacing references to the Secretary 
of Transportation (SECDOT) with the Secretary of the Department 
of Homeland Security (SECDHS), as appropriate. Replacing SECDOT 
with SECDHS is necessary to avoid confusion since certain 
Chapter functions and responsibilities were transferred, along 
with the responsible agency (i.e., the U.S. Coast Guard), to 
the Department of Homeland Security. The second would involve 
the Chapter's penalty provision, section 31330, and its 
incorrect application of punishment for a mortgagor.
Section 602. Clarification of rulemaking authority
  Section 102(a) of the Maritime Transportation Security Act of 
2002 (P. L. No. 107-295), codified in Chapter 701 of title 46, 
United States Code, forms the framework for the port security 
regulations which are an integral component of the Nation's 
maritime security efforts. The authority necessary to implement 
Chapter 701 is found in section 102(d) of that Act, which would 
provide the Secretary with an interim final rule authority, as 
well as authority to ``initiate'' a rulemaking necessary to 
implement that Chapter. This subsection was not codified, most 
likely because its intended purpose was merely to expedite the 
Chapter 701 rulemaking process under extraordinary 
circumstances.
  Since publication of the final rule, section 102(d) 
supplemented, rather than defined, the Secretary's regulatory 
authority to implement Chapter 701, while being unclear to the 
regulated public. There is some potential to read Section 
102(d) as limiting the Secretary's ability to implement Chapter 
701 beyond one year, rather than to give the Secretary an APA 
waiver. This section would clarify that the Secretary may issue 
regulations to implement, as necessary, Chapter 701 at any 
time.
Section 603. Coast Guard maintenance of LORAN-C navigation system
  This section would put in place certain requirements related 
to the LORAN-C navigation system. LORAN-C is a terrestrial 
navigation system maintained by the Coast Guard for use by 
general aviators, recreational boaters, commercial fishermen, 
and the military as a back-up to the satellite-based Global 
Positioning System (GPS). GPS has been shown to be vulnerable 
to jamming and other interference. The eLORAN system is already 
in use in other countries and is considered by many to be a 
logical choice to replace LORAN-C as a GPS back-up. Despite the 
vulnerabilities of GPS, the President's budget proposal for FY 
2010 includes no funding request for the phasing out of LORAN-C 
or for the development and deployment of a next generation GPS 
back-up, such as eLORAN. Furthermore, the Coast Guard has 
indicated that after LORAN-C is terminated, it plans to sell 
the 24 LORAN-C station sites located throughout the United 
States, even though similar sites will be required to deploy a 
new terrestrial back-up to GPS like eLORAN.
  This section would require the Secretary of the Department of 
Transportation to maintain the LORAN-C navigation system until 
the Secretary of the Department in which the Coast Guard is 
operating is authorized by statute to stop operations of LORAN-
C but expedite modernization projects necessary for transition 
to eLORAN technology. It would authorize appropriations to the 
Secretary of the Department of Transportation in the amount of 
$37 million for each of FY 2010 and 2011 for capital expenses 
related to the LORAN-C infrastructure, in addition to funds 
authorized to the Coast Guard under section 101 of this Act for 
continued operation of the LORAN-C system. Finally, it would 
require the Secretary of Transportation, in cooperation with 
the Secretary of the Department in which the Coast Guard is 
operating, to provide a report to Congress no later than six 
months after the date of enactment of the Act providing a 
detailed 5-year plan for transition from LORAN-C to eLORAN 
technology as a national back-up to GPS.
Section 604. Icebreakers
  This section would require the Coast Guard to perform an 
analysis comparing the costs and benefits of rebuilding, 
renovating, or improving its existing polar icebreaker fleet 
with the costs and benefits of constructing a new polar 
icebreaker fleet. It would also require the Coast Guard to 
perform an analysis of the impact on mission capacity and US 
presence in the polar regions over the next 10 years if 
recapitalization of the polar icebreaker fleet is not fully 
funded. These analyses would be required to be based on the 
independent assessment of needs currently being undertaken as 
part of the High Latitude Study commissioned by the Coast 
Guard. Not later than one year after the date of enactment of 
this Act, the Commandant of the Coast Guard would be required 
to submit reports to Congress containing the results of the 
analyses required under this section.
Section 605. Vessel size limits
  Section 605 would amend vessel documentation law to provide 
flexibility for owners of fishing and fish processing vessels 
eligible under provisions of the American Fisheries Act (AFA) 
to participate in the rationalized Bering Sea/Aleutian Island 
Alaska pollock fishery to rebuild or replace AFA-eligible 
vessels without limits on vessel length, tonnage or horsepower. 
The provision would further provide that any catcher vessel 
delivering its catch to the onshore sector as defined in 
section 208(a) of the AFA can be removed from the fishery and 
that the catch history for any such vessel shall be assigned in 
the manner specified by the vessel owner to another vessel or 
vessels participating in the same fishery cooperative. The 
vessel, or vessels, to which the catch history is assigned 
would remain in the fishery cooperative for at least one year 
after the date on which the vessel being removed leaves the 
directed pollock fishery.
  Section 605(a)(5) and section 605(a)(7)(B) state that any 
vessel that is replaced or removed under these amendments would 
be permanently ineligible for a fishery endorsement. These 
provisions would further provide, however, that a replaced or 
removed vessel can be designated to replace another AFA-
eligible vessel. The Committee intends that the implementing 
regulations issued by the Coast Guard provide a reasonable time 
period for a replaced or removed vessel that forfeits its 
fishery endorsement to reclaim a fishery endorsement if that 
vessel is to serve as a replacement vessel under this 
provision.
Section 606. Phaseout of vessels supporting oil and gas development
  This section would extend the current authorization of 
vessels to support oil and gas operations on the U.S. Outer 
Continental Shelf (OCS) in the Beaufort Sea and the Chukchi Sea 
and provide for a flexible transition to the use of U.S.-flag 
anchor handling vessels in certain exploration activities for a 
limited period of time. Specifically, the language provides 
that, if the Secretary of Transportation certifies that a U.S.-
flag anchor handling vessel is not reasonably available and 
suitable for these operations, then a foreign-flag anchor 
handling vessel may be used until the end of 2012, by an OCS 
lessee that has entered into a binding agreement to use a 
suitable anchor handling vessel documented as a U.S.-flag 
vessel or to be so documented upon completion of construction 
of that vessel. Further, the provision states that, if a 
binding agreement to employ another U.S.-flag anchor handling 
vessel is signed by or on behalf of a lessee as of December 31, 
2012, and there are insufficient U.S.-flag anchor handling 
vessels to support operations, then a foreign-flag anchor 
handling vessel can be used until the end of 2014.


                      title vii--vessel conveyance


  This Title would authorize the Coast Guard to transfer 
ownership of any vessel to an eligible entity for use for 
educational, cultural, historical, charitable, recreational, or 
other public purposes. The transfer of ownership would be 
conducted by the General Services Administration. In this 
title, the term ``eligible entity'' means a State or local 
government, nonprofit corporation, educational agency, 
community development organization, or other entity that agrees 
to comply with the conditions established under this section.


                  title viii--oil pollution prevention


Section 801. Rulemakings
  This section would address the issue of certain Coast Guard 
rulemakings which are required by current law, but for which a 
final rule has yet to be issued. Subsection (a) would require 
the Coast Guard to provide a report to Congress on the status 
of all rulemakings required but not yet finalized under Section 
311 of the Federal Water Pollution Control Act (33 U.S.C. 
1321). With respect to each such rulemaking, the report would 
include a detailed explanation of what steps have been 
completed, what areas remain to be addressed, the cause of any 
delays, and the date by which a final rule may reasonably be 
expected to be issued. Subsection (b) would require that, in 
the case of each rulemaking to which subsection (a) applies, a 
final rule must be issued as soon as practicable, but in no 
event later than 18 months after the date of enactment of this 
Act. Subsection (c) would require that, no later than one year 
after the date of enactment of this Act, the Secretary must 
issue a notice of proposed rulemaking regarding inspection 
requirements for towing vessels as described in section 3306(j) 
of title 46, United States Code. It also would require the 
Secretary to issue a final rule pursuant to that rulemaking no 
later than 2 years after the date of enactment of this Act.
Section 802. Oil spill response capability
  This section would amend existing federal pilot requirements 
under 46 U.S.C. 8502 to address specific tank vessel pilotage 
issues related to Buzzards Bay, Massachusetts. Subsection (a) 
would require that in any area of Buzzards Bay, Massachusetts, 
where a single-hull tank vessel carrying 5,000 or more barrels 
of oil or other hazardous material is required to be under the 
direction and control of a federal pilot, the pilot may not be 
a member of the crew of that vessel, and must be a pilot 
licensed by the Commonwealth of Massachusetts who is operating 
under a federal license. Subsection (b) would require the 
Secretary to transmit an annual report to Congress on the 
extent to which tank vessels on Buzzards Bay are using routes 
recommended by the Coast Guard.
Section 803. Oil transfers from vessels
  This section would direct the Coast Guard to promulgate 
regulations to reduce the incidence of oil spills in operations 
involving the transfer of oil from or to tank vessels. It would 
require the Coast Guard, in doing so, to take into account the 
safety of personnel and the effectiveness of available 
procedures and equipment--a process which should include 
consultation with relevant advisory bodies. For example, the 
Coast Guard should consult with the Towing Safety Advisory 
Committee to ensure any proposed oil transfer rules will 
maintain or enhance safety while also reflecting operational 
realities and limitations associated with the transfer of oil 
from or to a tank vessel.
Section 804. Improvements to reduce human errors and near-miss 
        incidents
  This section would require the Coast Guard to provide a 
report to Congress on the most frequent sources of human error 
that have led to oil spills from vessels, as well as on the 
most significant types of ``near miss'' incidents. It also 
would require the Coast Guard to make recommendations for 
reducing such incidents and to take appropriate action to 
reduce the risk of oil spills from human error. In order to 
encourage and facilitate voluntary disclosure of such 
information, this section includes important protections 
relating to the confidentiality and judicial discovery of 
voluntarily submitted information.
Section 805. Olympic Coast National Marine Sanctuary
  This section would expand the application of the voluntary 
Area to Be Avoided (ATBA) encompassing the Olympic Coast 
National Marine Sanctuary so that it would apply to all non-
tank vessels greater than 400 gross tons, other than fishing or 
research vessels engaged in fishing or research within the 
ATBA. This section also would authorize $700,000 for the Coast 
Guard and the NOAA to conduct a ``Safe Seas'' oil spill drill 
in the Olympic Coast National Marine Sanctuary in fiscal year 
2010. This drill would be coordinated with Federal agencies and 
State, local, and tribal governments and other appropriate 
entities.
Section 806. Prevention of small oil spills
  This section would require the Under Secretary of Commerce 
for Oceans and Atmosphere, in consultation with the Secretary 
of the Department of Homeland Security, the Coast Guard, and 
other appropriate agencies, to establish an assessment, 
outreach, training, and voluntary compliance program to prevent 
oil spills from smaller boats such as fishing boats, pleasure 
craft, or small commercial vessels. The Under Secretary would 
be authorized to provide grants to Sea Grant Colleges, State 
and tribal governments, and other appropriate entities to carry 
out this program. The provision would authorize $10,000,000 
annually for each of fiscal years 2010 through 2012 to carry 
out this section.
Section 807. Improved coordination with tribal governments
  This section would require the Coast Guard to improve its 
consultation and coordination process with Federally-recognized 
tribes with respect to oil spill prevention, preparedness, and 
response. It also would require the Coast Guard to include 
tribes whose natural and cultural resources are likely to be 
impacted by a spill as part of the incident response team for 
such spill, thus ensuring that the tribe would have an integral 
role in decision-making related to the response effort and be 
appropriately recognized as a major stakeholder alongside 
local, State, and Federal entities. It would authorize the 
Coast Guard to enter into cooperative agreements with tribes 
for oil spill prevention, preparedness, and response. This 
section would authorize $500,000 for the establishment and 
implementation of such agreements for each of fiscal years 2010 
through 2014.
Section 808. Report on availability of technology to detect the loss of 
        oil
  This section would require the Secretary to submit a report 
to Congress within one year after the date of enactment of this 
Act, on the availability, feasibility, and potential cost of 
technology that can detect the loss of oil carried as cargo or 
fuel on tank and non-tank vessels greater than 400 gross tons.
Section 809. Use of oil spill liability trust fund
  This section would authorize the National Oceanic and 
Atmospheric Administration to directly access up to $15 million 
annually from the Oil Spill Liability Trust Fund to carry out 
its functions relating to natural damage assessment and 
environmental restoration under OPA 90. Currently, NOAA must 
seek reimbursement from the Fund for expenses after the costs 
are incurred.
Section 810. International efforts on enforcement
  This section would help ensure that the Coast Guard pursues 
stronger enforcement standards in the International Maritime 
Organization (IMO) relating to oil discharges, including joint 
enforcement operations, training, and stronger compliance 
mechanisms.
Section 811. Higher volume port area regulatory definition change
  Section 811 would change the definition of ``higher volume 
port area'' for Puget Sound to make the westerly boundary begin 
at Cape Flattery, WA, the entry to the Strait of Juan de Fuca, 
given the volume of vessel traffic and the risk of oil spills 
throughout the entire length of the Strait of Juan de Fuca. It 
also would require the Coast Guard to complete its review of 
any changes to emergency response plans resulting from the 
definition change, within five years after the date of 
enactment.
Section 812. Tug escorts for laden oil tankers
  This section would address several important issues relating 
to the need for adequate tug escorts for oil tankers in high 
traffic or high risk waterways. Subsection (a) would direct the 
Secretary of State, in consultation with the Commandant of the 
Coast Guard, to enter into negotiations with the Government of 
Canada to ensure that tug escorts are required for tank ships 
greater than 40,000 dead weight tons transiting the Strait of 
Juan de Fuca, Strait of Georgia, and Haro Straight. Vancouver, 
British Columbia, is Canada's largest port, with more than 
2,600 vessel calls annually, and the traffic separation scheme 
in the region places much of this in-bound traffic in U.S. 
waters. The Commandant would be required to consult with the 
State of Washington and affected tribal governments during 
negotiations with Canada. Subsection (b) would require a report 
to Congress within one year of the date of enactment of this 
Act on the costs and benefits to require escort by at least two 
towing vessels, for vessels over 5,000 gross tons transporting 
oil in bulk in Rosario Strait and Puget Sound, Washington, 
including those portions of the Strait of Juan de Fuca east of 
Port Angeles, Haro Strait, and the Strait of Georgia which are 
subject to United States jurisdiction.
Section 813. Extension of financial responsibility
  This section would extend current requirements of financial 
responsibility in section 1016(a) of OPA 90 (33 U.S.C. 2716(a)) 
to all tank vessels over 100 gross tons, except non-self 
propelled vessels not carrying oil as cargo. This extension 
would ensure that responsible parties for vessels of this size-
range are able to pay for claims related to spills.
Section 814. Oil spill liability trust fund investment amount
  This section would increase the principal amount of funds 
that support the Oil Spill Recovery Institute by $12.851 
million to account for reduced funding due to low interest 
rates and inflation. The OSRI conducts research and develops 
technologies to prevent and mitigate the effects of oil spills, 
and has a unique capability to conduct such research in Arctic 
and sub-Arctic regions. As resources are developed in these 
regions, new research will be needed to mitigate potential 
spills in extreme cold water and icy conditions.
Section 815. Liability for use of single-hull vessels
  This section would include in the definition of ``responsible 
party'' under section 1001(32) of OPA 90 (33 U.S.C. 2701(32)) 
the owner of oil products being transported by a single-hull 
tank vessel (other than certain vessels described in 
3703a(b)(3) of title 46, United States Code).


                   title ix--miscellaneous provisions


Section 901. Homeporting of the BIGELOW
  This section would require the Administrator of the National 
Oceanic and Atmospheric Administration to submit a report to 
Congress within 90 days of enactment of the Act regarding the 
agency's progress in determination of a homeport for the FSV 
HENRY B BIGELOW, and would direct the agency to give special 
consideration to specific factors as a part of its decision 
making process. It also would require the Administrator to 
notify Congress of its proposed final decision, and the 
rationale upon which that proposed decision is based, at least 
45 days before a final decision is implemented. The agency 
would be required to make a final decision on the homeport for 
the BIGELOW no later than December 31, 2009.
Section 902. Vessel Determination
  This section would provide that the documented United States 
vessels with official numbers 981472 and 988333 shall be deemed 
new vessels following the completion of their major shipyard 
reconstruction projects. The certificates of documentation 
showing the ``new vessel'' status for those vessels may not be 
issued until there are no encumbrances on record for those 
vessels with the Coast Guard National Vessel Documentation 
Center at the time of issuance. The vessels would retain their 
official numbers of 981472 and 988333, and this section would 
not change U.S. Coast Guard vessel safety and inspection 
requirements applicable to each vessel prior to the enactment 
of this section.
Section 903. Conveyance of the Presque Isle Light Station Fresnel Lens 
        to Presque Isle Township, Michigan
  This section would authorize the Commandant of the Coast 
Guard to convey ownership of the fresnel lens from the historic 
Presque Isle Light Station Lighthouse, Michigan, to the 
Township of Presque Isle, Michigan, for operation as an aid to 
navigation.
Section 904. Land Conveyance, Coast Guard Property in Marquette County, 
        Michigan, to the City of Marquette, Michigan
  This section would authorize the Commandant of the Coast 
Guard to convey approximately 5.5 acres of real property and 
any improvements thereon, located in Marquette County, 
Michigan, and commonly referred to as Coast Guard Station 
Marquette and Lighthouse Point, to the City of Marquette, 
Michigan.
Section 905. Large offshore supply vessels
  This section would require the Commandant of the Coast Guard 
to submit a report to Congress within one year after the date 
of enactment of the Act on the design, inspection, 
certification, manning, operation, and credentialing 
requirements for offshore supply vessels greater than 500 gross 
tons or an alternate tonnage as measured under specific 
sections of title 46, United States Code. In developing the 
required report to Congress, the Commandant would have the 
discretion to request the participation of senior 
representatives of any other Federal department or agency, as 
appropriate, and would be required to consider all applicable 
provisions of U.S. law and international conventions and 
agreements.
Section 906. Conveyance of Decommissioned Coast Guard Cutters STORIS, 
        IRIS, and PLANETREE
  This section would authorize the conveyance, without 
consideration, of the Coast Guard Cutters STORIS, IRIS, and 
PLANETREE to certain nonprofit entities upon being 
decommissioned. Specifically, the Commandant of the Coast Guard 
would be authorized to convey the STORIS to the Storis Museum 
in Juneau, Alaska, provided the museum agrees to use the vessel 
as a historic memorial, to make the cutter available to the 
public as a museum, and to work cooperatively with other 
museums to provide education and memorialize the maritime 
heritage of the STORIS and other maritime activities in Alaska, 
the Pacific Northwest, the Arctic Ocean, and adjacent oceans 
and seas. Similarly, the Commandant would be authorized to 
convey the IRIS and PLANETREE to the Anchor Program in 
Richmond, California, provided the Anchor Program agrees to use 
the vessels as job training sites, primarily in the San 
Francisco Bay and Puget Sound, leading to employment in the 
merchant marine and associated shore-side occupations. Certain 
other provisos would apply in the case of each conveyance 
authorized by this section, including: that the vessels not be 
used for commercial transportation purposes; and that the 
vessels be made available to the U.S. Government if needed in 
time of war or national emergency. The Commandant would also be 
authorized to convey to the recipient of a vessel under this 
section any excess equipment or parts from other decommissioned 
Coast Guard vessels for use to enhance the vessel's operability 
and function for purposes of a public museum and historical 
display.
Section 907. Access for Personal Watercraft
  This section would require that personal watercraft have 
access to the Atlantic Intracoastal Waterway equal to all other 
vessels and rafts permitted on the Waterway. The access 
requirement would take effect 150 days after the date of 
enactment of the Act, and would remain in effect unless and 
until the Commandant of the Coast Guard, after a public 
hearing, concludes that personal watercraft have an 
environmental impact on the Atlantic Intracoastal Waterway that 
is more disparate than all other vessels and rafts permitted in 
the Waterway. The Commandant would be required to complete an 
environmental assessment regarding the impact of personal 
watercraft within 150 after the date of enactment of the Act. 
This section would also establish a working group consisting of 
representatives from the Coast Guard, the National Park 
Service, and other authorities and stakeholders with an 
interest in the Waterway access issue, for the purpose of 
developing recommendations concerning reasonable requirements 
for access to the Waterway. It also includes language 
preserving the authority of the Coast Guard to enforce safety 
regulations, and of the National Park Service and the 
Department of the Interior to ensure that watercraft observe 
all boating safety and marine mammal protections.

                        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):

                     HOMELAND SECURITY ACT OF 2002

SEC. 875. MISCELLANEOUS AUTHORITIES.

                             [6 U.S.C. 455]

  (a) Seal.--The Department shall have a seal, whose design is 
subject to the approval of the President.
  (b) Participation of Members of the Armed Forces.--With 
respect to the Department, the Secretary shall have the same 
authorities that the Secretary of Transportation has with 
respect to the Department of Transportation under section 324 
of title 49, United States Code.
  (c) Appointment of Judges.--The Secretary may appoint 
civilian employees of the Department of Homeland Security as 
appellate military judges, available for assignment to the 
Coast Guard Court of Criminal Appeals as provided for in 
section 866(a) of title 10, United States Code.
  [(c)] (d) Redelegation of Functions.--Unless otherwise 
provided in the delegation or by law, any function delegated 
under this Act may be redelegated to any subordinate.

                         TITLE 10. ARMED FORCES

                    SUBTITLE A. GENERAL MILITARY LAW

                           PART II. PERSONNEL

                           CHAPTER 40. LEAVE

Sec. 701. Entitlement and accumulation

  (a) A member of an armed force is entitled to leave at the 
rate of 2\1/2\ calendar days for each month of active service, 
excluding periods of--
          (1) absence from duty without leave;
          (2) absence over leave;
          (3) confinement as the result of a sentence of a 
        court-martial; and
          (4) leave required to be taken under section 876a of 
        this title.
Full-time training, or other full-time duty for a period of 
more than 29 days, performed under section 316, 502, 503, 504, 
or 505 of title 32 by a member of the Army National Guard of 
the United States or the Air National Guard of the United 
States in his status as a member of the National Guard, and for 
which he is entitled to pay, is active service for the purposes 
of this section.
  (b) Except as provided in subsections (d), (f), and (g), a 
member may not accumulate more than 60 days' leave. However, 
leave taken during a fiscal year may be charged to leave 
accumulated during that fiscal year without regard to this 
limitation.
  (c) A member who retired after August 9, 1946, who is 
continued on, or is recalled to, active duty, may have his 
leave which accumulated during his service before retirement 
carried over to his period of service after retirement.
  (d) Notwithstanding subsection (b), during the period 
beginning on October 1, 2008, through December 31, 2010, a 
member may accumulate up to 75 days of leave.
  (e) Leave taken before discharge is considered to be active 
service.
  (f)(1)(A) The Secretary concerned, under uniform regulations 
to be prescribed by the Secretary of Defense, may authorize a 
member described in subparagraph (B) who, except for this 
paragraph, would lose at the end of the fiscal year any 
accumulated leave in excess of the number of days of leave 
authorized to be accumulated under subsection (b) or (d), to 
retain an accumulated total of 120 days leave.
  (B) This subsection applies to a member who--
          (i) serves on active duty for a continuous period of 
        at least 120 days in an area in which the member is 
        entitled to special pay under section 310(a) of title 
        37;
          (ii) is assigned to a deployable ship or mobile unit 
        or to other duty designated for the purpose of this 
        section; or
          (iii) on or after August 29, 2005, performs duty 
        designated by the Secretary of Defense as qualifying 
        duty for purposes of this subsection.
  (C) Except as provided in paragraph (2), leave in excess of 
the days of leave authorized to be accumulated under subsection 
(b) or (d) that are accumulated under this paragraph is lost 
unless it is used by the member before the end of the third 
fiscal year (or fourth fiscal year, if accumulated while 
subsection (d) is in effect) after the fiscal year in which the 
continuous period of service referred to in subparagraph (B) 
terminated.
  (2) Under the uniform regulations referred to in paragraph 
(1), a member of an armed force who serves on active duty in a 
duty assignment in support of a contingency operation or a 
declaration of a major disaster or emergency by the President 
under the Robert T. Stafford Disaster Relief and Emergency 
Assistance Act (Public Law 93-288, 42 U.S.C. 5121 et seq.)  
during a fiscal year and who, except for this paragraph, would 
lose at the end of that fiscal year any accumulated leave in 
excess of the number of days of leave authorized to be 
accumulated under subsection (b) or (d), shall be permitted to 
retain such leave until the end of the second fiscal year after 
the fiscal year in which such service on active duty is 
terminated.

           *       *       *       *       *       *       *


             CHAPTER 53. MISCELLANEOUS RIGHTS AND BENEFITS

Sec. 1044. Legal Assistance

  (a) Subject to the availability of legal staff resources, the 
Secretary concerned may provide legal assistance in connection 
with their personal civil legal affairs to the following 
persons:
          (1) Members of the armed forces who are on active 
        duty.
          (2) Members and former members entitled to retired or 
        retainer pay or equivalent pay.
          (3) Officers of the commissioned corps of the Public 
        Health Service who are on active duty or entitled to 
        retired or equivalent pay.
          (4) Members of reserve components not covered by 
        paragraph (1) or (2) following release from active duty 
        under a call or order to active duty for more than 30 
        days issued under a mobilization authority [(as 
        determined by the Secretary of Defense),] (as 
        determined by the Secretary of Defense and the 
        Secretary of the department in which the Coast Guard is 
        operating, with respect to the Coast Guard when it is 
        not operating as a service of the Navy), for a period 
        of time, [prescribed by the Secretary of Defense,] 
        prescribed by the Secretary of Defense and the 
        Secretary of the department in which the Coast Guard is 
        operating, with respect to the Coast Guard when it is 
        not operating as a service of the Navy, that begins on 
        the date of the release and is not less than twice the 
        length of the period served on active duty under that 
        call or order to active duty.
          (5) Dependents of members and former members 
        described in paragraphs (1), (2), (3), and (4).
          (6) Survivors of a deceased member or former member 
        described in paragraphs (1), (2), (3), and (4) who were 
        dependents of the member or former member at the time 
        of the death of the member or former member, except 
        that the eligibility of such survivors shall be 
        determined pursuant to regulations prescribed by the 
        Secretary concerned.
          (7) Civilian employees of the Federal Government 
        serving in locations where legal assistance from non-
        military legal assistance providers is not reasonably 
        available, except that the eligibility of civilian 
        employees shall be determined pursuant to regulations 
        prescribed by the Secretary concerned.
  (b) Under such regulations as may be prescribed by the 
Secretary concerned, the Judge Advocate General (as defined in 
section 801(1) of this title) under the jurisdiction of the 
Secretary is responsible for the establishment and supervision 
of legal assistance programs under this section.
  (c) This section does not authorize legal counsel to be 
provided to represent a member or former member of the 
uniformed services described in subsection (a), or the 
dependent of such a member or former member, in a legal 
proceeding if the member or former member can afford legal fees 
for such representation without undue hardship.
  (d)(1) Notwithstanding any law regarding the licensure of 
attorneys, a judge advocate or civilian attorney who is 
authorized to provide military legal assistance is authorized 
to provide that assistance in any jurisdiction, subject to such 
regulations as may be prescribed by the Secretary concerned.
  (2) Military legal assistance may be provided only by a judge 
advocate or a civilian attorney who is a member of the bar of a 
Federal court or of the highest court of a State.
  (3) In this subsection, the term ``military legal 
assistance'' includes--
          (A) legal assistance provided under this section; and
          (B) legal assistance contemplated by sections 1044a, 
        1044b, 1044c, and 1044d of this title.
  (e) The Secretary concerned shall define ``dependent'' for 
the purposes of this section.

                  CHAPTER 55. MEDICAL AND DENTAL CARE

1074i. Reimbursement for certain travel expenses

  (a) In General.--(1) In any case in which a covered 
beneficiary is referred by a primary care physician to a 
specialty care provider who provides services more than 100 
miles from the location in which the primary care provider 
provides services to the covered beneficiary, the Secretary 
shall provide reimbursement for reasonable travel expenses for 
the covered beneficiary and, when accompaniment by an adult is 
necessary, for a parent or guardian of the covered beneficiary 
or another member of the covered beneficiary's family who is at 
least 21 years of age.
  (2) In any case in which a covered beneficiary resides on an 
INCONUS island that lacks public access roads to the mainland 
and is referred by a primary care physician to a specialty care 
provider on the mainland who provides services less than 100 
miles from the location in which the beneficiary resides, the 
Secretary shall reimburse the reasonable travel expenses of the 
covered beneficiary, and, when accompaniment by an adult is 
necessary, for a parent or guardian of the covered beneficiary 
or another member of the covered beneficiary's family who is at 
least 21 years of age.
  (b) Outreach Program and Travel Reimbursement for Follow-on 
Specialty Care and Related Services.--The Secretary concerned 
shall ensure that an outreach program is implemented for each 
member of the uniformed services who incurred a combat-related 
disability and is entitled to retired or retainer pay, or 
equivalent pay, so that--
          (1) the progress of the member is closely monitored; 
        and
          (2) the member receives the travel reimbursement 
        authorized by subsection (a) whenever the member 
        requires follow-on specialty care, services, or 
        supplies.
  (c) Definitions.--In this section:
          (1) The term ``specialty care provider'' includes a 
        dental specialist.
          (2) The term ``dental specialist'' means an oral 
        surgeon, orthodontist, prosthodontist, periodontist, 
        endodontist, or pediatric dentist, and includes such 
        other providers of dental care and services as 
        determined appropriate by the Secretary of Defense.
          (3) The term ``combat-related disability'' has the 
        meaning given that term in section 1413a of this title.

               PART IV. SERVICE, SUPPLY, AND PROCUREMENT

             CHAPTER 165. ACCOUNTABILITY AND RESPONSIBILITY

Sec. 2772. Share of fines and forfeitures to benefit Armed Forces 
                    retirement homes

  (a) Deposit required. The Secretary [of the military 
department] concerned shall deposit in the Armed Forces 
Retirement Home Trust Fund a percentage (determined under 
subsection (b)) of the following amounts:
          (1) The amount of forfeitures and fines adjudged 
        against an enlisted member, warrant officer, or limited 
        duty officer of the armed forces by sentence of a court 
        martial or under authority of section 815 of this title 
        (article 15) over and above any amount that may be due 
        from the member, warrant officer, or limited duty 
        officer for the reimbursement of the United States or 
        any individual.
          (2) The amount of forfeitures on account of the 
        desertion of an enlisted member, warrant officer, or 
        limited duty officer of the armed forces.
  (b) Determination of percentage. The [Armed Forces Retirement 
Home Board] Chief Operating Officer of the Armed Forces 
Retirement Home  shall determine, on the basis of the financial 
needs of the Armed Forces Retirement Home, the percentage of 
the amounts referred to in subsection (a) to be deposited in 
the trust fund referred to in such subsection.
  [(c) Application to Coast Guard. In this section, the term 
``armed forces'' does not include the Coast Guard when it is 
not operating as a service in the Navy.]

                         TITLE 14. COAST GUARD

                      PART I. REGULAR COAST GUARD

                CHAPTER 3. COMPOSITION AND ORGANIZATION

[Sec. 42. Number and distribution of commissioned officers]

  [(a) The total number of commissioned officers, excluding 
commissioned warrant officers, on active duty in the Coast 
Guard shall not exceed 6,700 in each fiscal year 2004, 2005, 
and 2006.
  [(b) The commissioned officers on the active duty promotion 
list shall be distributed in grade in the following 
percentages, respectively: rear admiral 0.375; rear admiral 
(lower half) 0.375; captain 6.0; commander 15.0; lieutenant 
commander 22.0. The Secretary shall prescribe the percentages 
applicable to the grades of lieutenant, lieutenant (junior 
grade), and ensign. The Secretary may, as the needs of the 
Coast Guard require, reduce the percentage applicable to any 
grade above lieutenant commander, and in order to compensate 
for such reduction increase correspondingly the percentage 
applicable to any lower grade.
  [(c) The Secretary shall, at least once each year, make a 
computation to determine the number of officers on the active 
duty promotion list authorized to be serving in each grade. The 
number in each grade shall be computed by applying the 
applicable percentage to the total number of such officers 
serving on active duty on the date the computation is made. In 
making computations under this section the nearest whole number 
shall be regarded as the authorized number in any case where 
there is a fraction in the final result.]

Sec. 42. Number and distribution of commissioned officers on the active 
                    duty promotion list

  (a) The total number of Coast Guard commissioned officers on 
the active duty promotion list, excluding warrant officers, 
shall not exceed 7,200. This total number may be temporarily 
increased up to 2 percent for no more than the 60 days that 
follow the commissioning of a Coast Guard Academy class.
  (b) The total number of commissioned officers authorized by 
this section shall be distributed in grade not to exceed the 
following percentages:
          (1) 0.375 percent for rear admiral.
          (2) 0.375 percent for rear admiral (lower half).
          (3) 6.0 percent for captain.
          (4) 15.0 percent for commander.
          (5) 22.0 percent for lieutenant commander.
The Secretary shall prescribe the percentages applicable to the 
grades of lieutenant, lieutenant (junior grade), and ensign. 
The Secretary may, as the needs of the Coast Guard require, 
reduce any of the percentages set forth in paragraphs (1) 
through (5) and apply that total percentage reduction to any 
other lower grade or combination of lower grades.
  (c) The Secretary shall, at least once a year, compute the 
total number of commissioned officers authorized to serve in 
each grade by applying the grade distribution percentages of 
this section to the total number of commissioned officers 
listed on the current active duty promotion list. In making 
such calculations, any fraction shall be rounded to the nearest 
whole number. The number of commissioned officers on the active 
duty promotion list serving with other departments or agencies 
on a reimbursable basis or excluded under the provisions of 
section 324(d) of title 49, shall not be counted against the 
total number of commissioned officers authorized to serve in 
each grade.
  (d) The numbers resulting from such computations shall be for 
all purposes the authorized number in each grade, except that 
the authorized number for a grade is temporarily increased 
during the period between one computation and the next by the 
number of officers originally appointed in that grade during 
that period and the number of officers of that grade for whom 
vacancies exist in the next higher grade but whose promotion 
has been delayed for any reason.
  [(e) Officers who are not included in the active duty 
promotion list, officers serving as extra numbers in grade 
under sections 432 and 433 of this title , and officers serving 
with other departments or agencies on a reimbursable basis or 
excluded under the provisions of section 324(d) of title 49, 
shall not be counted in determining authorized strengths under 
subsection (c) and shall not count against those strengths. The 
number of officers authorized to be serving on active duty in 
each grade of the permanent commissioned teaching staff of the 
Coast Guard Academy and of the Reserve serving in connection 
with organizing, administering, recruiting, instructing, or 
training the reserve components shall be prescribed by the 
Secretary.]
  (e) The number of officers authorized to be serving on active 
duty in each grade of the permanent commissioned teaching staff 
of the Coast Guard Academy and of the Reserve serving in 
connection with organizing, administering, recruiting, 
instructing, or training the reserve components shall be 
prescribed by the Secretary.

Sec. 47. Vice Commandant; assignment

  The President may appoint, by and with the advice and consent 
of the Senate, one Vice Commandant who shall rank next after 
the Commandant, shall perform such duties as the Commandant may 
prescribe and shall act as Commandant during the absence or 
disability of the Commandant or in the event that there is a 
vacancy in the office of Commandant. The Vice Commandant shall 
be selected from the officers on the active duty promotion list 
serving above the grade of captain. The Commandant shall make 
recommendation for such appointment. The Vice Commandant shall, 
while so serving, have the grade of [vice admiral] admiral with 
pay and allowances of that grade. The appointment and grade of 
a Vice Commandant shall be effective on the date the officer 
assumes that duty, and shall terminate on the date the officer 
is detached from that duty, except as provided in [subsection] 
section 51(d) of this title.

[50. Area commanders

  [(a) The President may appoint, by and with the advice and 
consent of the Senate, a Commander, Atlantic Area, and a 
Commander, Pacific Area, each of whom shall be an intermediate 
commander between the Commandant and the district commanders in 
his respective area and shall perform such duties as the 
Commandant may prescribe. The area commanders shall be 
appointed from officers on the active duty promotion list 
serving above the grade of captain. The Commandant shall make 
recommendations for such appointments.
  [(b) An area commander shall, while so serving, have the 
grade of vice admiral with pay and allowances of that grade. 
The appointment and grade of an area commander shall be 
effective on the date the officer assumes that duty, and shall 
terminate on the date the officer is detached from that duty, 
except as provided in subsection 51(d) of this title.]

Sec. 50. Vice admirals

  (a)(1) The President may designate no more than 4 positions 
of importance and responsibility that shall be held by officers 
who--
          (A) while so serving, shall have the grade of vice 
        admiral, with the pay and allowances of that grade; and
          (B) shall perform such duties as the Commandant may 
        prescribe.
  (2) The President may appoint, by and with the advice and 
consent of the Senate, and reappoint, by and with the advice 
and consent of the Senate, to any such position an officer of 
the Coast Guard who is serving on active duty above the grade 
of captain. The Commandant shall make recommendations for such 
appointments.
  (b)(1) The appointment and the grade of vice admiral shall be 
effective on the date the officer assumes that duty and, except 
as provided in paragraph (2) of this subsection or in section 
51(d) of this title, shall terminate on the date the officer is 
detached from that duty.
  (2) An officer who is appointed to a position designated 
under subsection (a) shall continue to hold the grade of vice 
admiral--
          (A) while under orders transferring the officer to 
        another position designated under subsection (a), 
        beginning on the date the officer is detached from that 
        duty and terminating on the date before the day the 
        officer assumes the subsequent duty, but not for more 
        than 60 days;
          (B) while hospitalized, beginning on the day of the 
        hospitalization and ending on the day the officer is 
        discharged from the hospital, but not for more than 180 
        days; and
          (C) while awaiting retirement, beginning on the date 
        the officer is detached from duty and ending on the day 
        before the officer's retirement, but not for more than 
        60 days.
  (c)(1) An appointment of an officer under subsection (a) does 
not vacate the permanent grade held by the officer.
  (2) An officer serving in a grade above rear admiral who 
holds the permanent grade of rear admiral (lower half) shall be 
considered for promotion to the permanent grade of rear admiral 
as if the officer was serving in the officer's permanent grade.
  (d) Whenever a vacancy occurs in a position designated under 
subsection (a), the Commandant shall inform the President of 
the qualifications needed by an officer serving in that 
position or office to carry out effectively the duties and 
responsibilities of that position or office.

[50a. Chief of Staff

  [(a) The President may appoint, by and with the advice and 
consent of the Senate, a Chief of Staff of the Coast Guard who 
shall rank next after the area commanders and who shall perform 
duties as prescribed by the Commandant. The Chief of Staff 
shall be appointed from the officers on the active duty 
promotion list serving above the grade of captain. The 
Commandant shall make recommendations for the appointment.
  [(b) The Chief of Staff shall have the grade of vice admiral 
with the pay and allowances of that grade. The appointment and 
grade of the Chief of Staff shall be effective on the date the 
officer assumes that duty, and shall terminate on the date the 
officer is detached from that duty, except as provided in 
section 51(d) of this title.]

Sec. 51. Retirement

  [(a) An officer who, while serving in the grade of vice 
admiral, is retired for physical disability shall be placed on 
the retired list with the grade of vice admiral.
  [(b) An officer who is retired while serving in the grade of 
vice admiral, or who, after serving at least two and one-half 
years in the grade of vice admiral, is retired while serving in 
a lower grade, may in the discretion of the President, be 
retired with the grade of vice admiral.
  [(c) An officer who, after serving less than two and one-half 
years in the grade of vice admiral, is retired while serving in 
a lower grade, shall be retired in his permanent grade.]
  (a) An officer, other than the Commandant, who, while serving 
in the grade of admiral or vice admiral, is retired for 
physical disability shall be placed on the retired list with 
the highest grade in which that officer served.
  (b) An officer, other than the Commandant, who is retired 
while serving in the grade of admiral or vice admiral, or who, 
after serving at least 2\1/2\ years in the grade of admiral or 
vice admiral, is retired while serving in a lower grade, may in 
the discretion of the President, be retired with the highest 
grade in which that officer served.
  (c) An officer, other than the Commandant, who, after serving 
less than 2\1/2\ years in the grade of admiral or vice admiral, 
is retired while serving in a lower grade, shall be retired in 
his permanent grade.
  (d) An officer serving in the grade of admiral or vice 
admiral shall continue to hold that grade--
          (1) while being processed for physical disability 
        retirement, beginning on the day of the processing and 
        ending on the day that officer is retired, but not for 
        more than 180 days; and
          (2) while awaiting retirement, beginning on the day 
        that officer is relieved from the position of 
        Commandant, Vice Commandant, [Area Commander, or Chief 
        of Staff] or Vice Admiral and ending on the day before 
        the officer's retirement, but not for more than 60 
        days.

           *       *       *       *       *       *       *


Sec. 55. Chief Acquisition Officer

  (a) In General.--There shall be in the Coast Guard a Chief 
Acquisition Officer selected by the Commandant who shall be a 
Rear Admiral or civilian from the Senior Executive Service 
(career reserved). The Chief Acquisition Officer shall serve at 
the Assistant Commandant level and have acquisition management 
as that individual's primary duty.
  (b) Qualifications.--The Chief Acquisition Officer shall be 
an acquisition professional with a Level III certification and 
must have at least 10 years experience in an acquisition 
position, of which at least 4 years were spent as--
          (1) the program executive officer;
          (2) the program manager of a Level 1 or Level 2 
        acquisition project or program;
          (3) the deputy program manager of a Level 1 or Level 
        2 acquisition; or
          (4) a combination of such positions.
  (c) Functions of the Chief Acquisition Officer.--The 
functions of the Chief Acquisition Officer include--
          (1) monitoring the performance of programs and 
        projects on the basis of applicable performance 
        measurements and advising the Commandant, through the 
        chain of command, regarding the appropriate business 
        strategy to achieve the missions of the Coast Guard;
          (2) maximizing the use of full and open competition 
        at the prime contract and subcontract levels in the 
        acquisition of property, capabilities, and services by 
        the Coast Guard by establishing policies, procedures, 
        and practices that ensure that the Coast Guard receives 
        a sufficient number of competitive proposals from 
        responsible sources to fulfill the Government's 
        requirements, including performance and delivery 
        schedules, at the lowest cost or best value considering 
        the nature of the property or service procured;
          (3) making acquisition decisions in concurrence with 
        the technical authority, or technical authorities, as 
        appropriate, of the Coast Guard, as designated by the 
        Commandant, consistent with all other applicable laws 
        and decisions establishing procedures within the Coast 
        Guard;
          (4) ensuring the use of detailed performance 
        specifications in instances in which performance based 
        contracting is used;
          (5) managing the direction of acquisition policy for 
        the Coast Guard, including implementation of the unique 
        acquisition policies, regulations, and standards of the 
        Coast Guard;
          (6) developing and maintaining an acquisition career 
        management program in the Coast Guard to ensure that 
        there is an adequate acquisition workforce;
          (7) assessing the requirements established for Coast 
        Guard personnel regarding knowledge and skill in 
        acquisition resources and management and the adequacy 
        of such requirements for facilitating the achievement 
        of the performance goals established for acquisition 
        management;
          (8) developing strategies and specific plans for 
        hiring, training, and professional development; and
          (9) reporting to the Commandant, through the chain of 
        command, on the progress made in improving acquisition 
        management capability.

           *       *       *       *       *       *       *


               CHAPTER 7. COOPERATION WITH OTHER AGENCIES

Sec. 149. Assistance to foreign governments and maritime authorities

  (a) Detail of members to assist foreign governments.--The 
President may upon application from the foreign governments 
concerned, and whenever in his discretion the public interests 
render such a course advisable, detail members of the Coast 
Guard to assist foreign governments in matters concerning which 
the Coast Guard may be of assistance. Members so detailed may 
accept, from the government to which detailed, offices and such 
compensation and emoluments thereunder appertaining as may be 
first approved by the Secretary. While so detailed such members 
shall receive, in addition to the compensation and emoluments 
allowed by such governments, the pay and allowances to which 
they are entitled in the Coast Guard and shall be allowed the 
same credit for longevity, retirement, and for all other 
purposes that they would receive if they were serving with the 
Coast Guard.
  (b) Technical Assistance to Foreign Maritime Authorities.--
The Commandant, in coordination with the Secretary of State, 
may provide, in conjunction with regular Coast Guard 
operations, technical assistance (including law enforcement and 
maritime safety and security training) to foreign navies, coast 
guards, and other maritime authorities.
  (c) Grants to International Maritime Organizations.--The 
Commandant may, after consultation with the Secretary of State, 
make grants to, or enter into cooperative agreements, 
contracts, or other agreements with, international maritime 
organizations for the purpose of acquiring information or data 
about merchant vessel inspections, security, safety and 
environmental requirements, classification, and port state or 
flag state law enforcement or oversight.
  (d) Authorized Activities.--
          (1) The Commandant may transfer or expend funds from 
        any appropriation available to the Coast Guard for--
                  (A) the activities of traveling contact 
                teams, including any transportation expense, 
                translation services expense, or administrative 
                expense that is related to such activities;
                  (B) the activities of maritime authority 
                liaison teams of foreign governments making 
                reciprocal visits to Coast Guard units, 
                including any transportation expense, 
                translation services expense, or administrative 
                expense that is related to such activities;
                  (C) seminars and conferences involving 
                members of maritime authorities of foreign 
                governments;
                  (D) distribution of publications pertinent to 
                engagement with maritime authorities of foreign 
                governments; and
                  (E) personnel expenses for Coast Guard 
                civilian and military personnel to the extent 
                that those expenses relate to participation in 
                an activity described in subparagraph (C) or 
                (D).
          (2) An activity may not be conducted under this 
        subsection with a foreign country unless the Secretary 
        of State approves the conduct of such activity in that 
        foreign country.

Sec. 151. Contracts with Government-owned establishments for work and 
                    material

  (a) In General._All orders or contracts for work or material, 
under authorization of law, placed with Government-owned 
establishments by the Coast Guard, shall be considered as 
obligations in the same manner as provided for similar orders 
or contracts placed with private contractors, and 
appropriations for such work or material shall remain available 
for payment therefor as in the case of orders or contracts 
placed with private contractors.
  (b) Orders and Agreements for Industrial Activities.--Under 
this section, the Coast Guard industrial activities may accept 
orders and enter into reimbursable agreements with 
establishments, agencies, and departments of the Department of 
Defense and the Department of Homeland Security.

                         CHAPTER 11. PERSONNEL

Sec. 214. Appointment of temporary officers

  [(a) The President may appoint temporary commissioned 
officers in the Regular Coast Guard in a grade, not above 
lieutenant, appropriate to their qualifications, experience, 
and length of service, as the needs of the Coast Guard may 
require, from among the commissioned warrant officers, warrant 
officers, and enlisted members of the Coast Guard, and from 
licensed officers of the United States merchant marine.]
  (a) The President may appoint temporary commissioned 
officers--
          (1) in the Regular Coast Guard in a grade, not above 
        lieutenant, appropriate to their qualifications, 
        experience, and length of service, as the needs of the 
        Coast Guard may require, from among the commissioned 
        warrant officers, warrant officers, and enlisted 
        members of the Coast Guard, and from licensed officers 
        of the United States merchant marine; and
          (2) in the Coast Guard Reserve in a grade, not above 
        lieutenant, appropriate to their qualifications, 
        experience, and length of service, as the needs of the 
        Coast Guard may require, from among the commissioned 
        warrant officers of the Coast Guard Reserve.
  (b) Temporary appointments under this section do not change 
the permanent, probationary, or acting status of persons so 
appointed, prejudice them in regard to promotion or 
appointment, or abridge their rights or benefits. A person who 
is appointed under this section may not suffer any reduction in 
the rate of pay and allowances to which he would have been 
entitled had he remained in his former grade and continued to 
receive the increases in pay and allowances authorized for that 
grade.
  (c) An appointment under this section, or a subsequent 
promotion appointment of a temporary officer, may be vacated by 
the appointing officer at any time. Each officer whose 
appointment is so vacated shall revert to his permanent status.
  (d) Appointees under this section shall take precedence in 
the grade to which appointed in accordance with the dates of 
their appointments as officers in such grade. Appointees whose 
dates of appointment are the same shall take precedence with 
each other as the Secretary shall determine.

Sec. 253. Selection boards; notice of convening; communication with 
                    board

  (a) Before a board is convened under section 251 of this 
title, notice of the convening date, the promotion zone to be 
considered, and the officers eligible for [consideration, and 
the number of officers the board may recommend for promotion] 
consideration shall be given to the service at large.
  (b) Each officer eligible for consideration by a selection 
board convened under section 251 of this title may send a 
communication through official channels to the board, to arrive 
not later than the date the board convenes, inviting attention 
to any matter of record in the armed forces concerning himself. 
A communication sent under this section may not criticize any 
officer or reflect upon the character, conduct, or motive of 
any officer.

Sec. 258. Selection boards; information to be furnished boards

  (a) The Secretary shall furnish the appropriate selection 
board convened under section 251 of this title with:
          (1) the number of officers that the board may 
        recommend for promotion to the next higher grade; and
          (2) the names and records of all officers who are 
        eligible for consideration for promotion to the grade 
        to which the board will recommend officers for 
        promotion.
  (b) In addition to the information provided pursuant to 
subsection (a), the Secretary may furnish the selection board--
          (1) specific direction relating to the needs of the 
        service for officers having particular skills, 
        including direction relating to the need for a minimum 
        number of officers with particular skills within a 
        specialty; and
          (2) such other guidance that the Secretary believes 
        may be necessary to enable the board to properly 
        perform its functions.
Selections made based on the direction and guidance provided 
under this subsection shall not exceed the maximum percentage 
of officers who may be selected from below the announced 
promotion zone at any given selection board convened under 
section 251 of this title.

Sec. 259. Officers to be recommended for promotion

  (a) A selection board convened to recommend officers for 
promotion shall recommend those eligible officers whom the 
[board] board, giving due consideration to the needs of the 
service for officers with particular skills so noted in the 
specific direction furnished pursuant to section 258 of this 
title, considers best qualified of the officers under 
consideration for promotion. No officer may be recommended for 
promotion unless he receives the recommendation of at least a 
majority of the members of a board composed of five members, or 
at least two-thirds of the members of a board composed of more 
than five members.
  (b) The number of officers that a board convened under 
section 251 of this title may recommend for promotion to a 
grade below rear admiral (lower half) from among eligible 
officers junior in rank to the junior officer in the 
appropriate promotion zone may not exceed--
          (1) 5 percent of the total number of officers that 
        the board is authorized to recommend for promotion to 
        the grade of lieutenant or lieutenant commander;
          (2) 7\1/2\ percent of the total number of officers 
        that the board is authorized to recommend for promotion 
        to the grade of commander; and
          (3) 10 percent of the total number of officers that 
        the board is authorized to recommend for promotion to 
        the grade of captain;
unless such percentage is a number less than one, in which case 
the board may recommend one such officer for promotion.
  (c)(1) After selecting the officers to be recommended for 
promotion, a selection board may recommend officers of 
particular merit, from among those officers chosen for 
promotion, to be placed at the top of the list of selectees 
promulgated by the Secretary under section 271(a) of this 
title. The number of officers that a board may recommend to be 
placed at the top of the list of selectees may not exceed the 
percentages set forth in subsection (b) unless such a 
percentage is a number less than one, in which case the board 
may recommend one officer for such placement. No officer may be 
recommended to be placed at the top of the list of selectees 
unless he or she receives the recommendation of at least a 
majority of the members of a board composed of five members, or 
at least two-thirds of the members of a board composed of more 
than five members.
  (2) The Secretary shall conduct a survey of the Coast Guard 
officer corps to determine if implementation of this subsection 
will improve Coast Guard officer retention. A selection board 
may not make any recommendation under this subsection before 
the date on which the Secretary publishes a finding, based upon 
the results of the survey, that implementation of this 
subsection will improve Coast Guard officer retention.
  (3) The Secretary shall submit any finding made by the 
Secretary pursuant to paragraph (2) to the Committee on 
Transportation and Infrastructure of the House of 
Representatives and the Committee on Commerce, Science, and 
Transportation of the Senate.

Sec. 260. Selection boards; reports

  (a) Each board convened under section 251 of this title shall 
submit a report in writing, signed by all the members thereof, 
containing the names of the officers recommended for promotion 
and the names of those officers recommended to be advanced to 
the top of the list of selectees established by the Secretary 
under section 271(a) of this title.
  (b) A board convened under section 251 of this title shall 
certify that, in the opinion of at least a majority of the 
members if the board has five members, or in the opinion of at 
least two-thirds of the members if the board has more than five 
members, the officers recommended for promotion are the best 
qualified for promotion to meet the needs of the service (as 
noted in the specific direction furnished the board under 
section 258 of this title) of those officers whose names have 
been furnished to the board.

           *       *       *       *       *       *       *


                        CHAPTER 15. ACQUISITIONS

                    Subchapter 1--General Provisions

Sec.
561. Acquisition directorate
562. Senior acquisition leadership team
563. Improvements in Coast Guard acquisition management
564. Recognition of Coast Guard personnel for excellence in acquisition
565. Prohibition on use of lead systems integrators
566. Required contract terms
567. Department of Defense consultation
568. Undefinitized contractual actions

        Subchapter 2--Improved Acquisition Process and Procedures

Sec.
571. Identification of major system acquisitions
572. Acquisition
573. Preliminary development and demonstration
574. Acquisition, production, deployment, and support
575. Acquisition program baseline breach

                        Subchapter 3--Definitions

Sec.
581. Definitions

                    Subchapter 1--General Provisions

Sec. 561. Acquisition directorate

  (a) Establishment.--The Commandant of the Coast Guard shall 
establish an acquisition directorate to provide guidance and 
oversight for the implementation and management of all Coast 
Guard acquisition processes, programs, and projects.
  (b) Mission.--The mission of the acquisition directorate is--
          (1) to acquire and deliver assets and systems that 
        increase operational readiness, enhance mission 
        performance, and create a safe working environment; and
          (2) to assist in the development of a workforce that 
        is trained and qualified to further the Coast Guard's 
        missions and deliver the best value products and 
        services to the Nation.

Sec. 562. Senior acquisition leadership team

  (a) Establishment.--The Commandant shall establish a senior 
acquisition leadership team within the Coast Guard comprised 
of--
          (1) the Vice Commandant;
          (2) the Deputy and Assistant Commandants;
          (3) appropriate senior staff members of each Coast 
        Guard directorate;
          (4) appropriate senior staff members for each 
        assigned field activity or command; and
          (5) any other Coast Guard officer or employee 
        designated by the Commandant.
  (b) Function.--The senior acquisition leadership team shall--
          (1) meet at the call of the Commandant at such places 
        and such times as the Commandant may require;
          (2) provide advice and information on operational and 
        performance requirements of the Coast Guard;
          (3) identify gaps and vulnerabilities in the 
        operational readiness of the Coast Guard;
          (4) make recommendations to the Commandant and the 
        Chief Acquisition Officer to remedy the identified gaps 
        and vulnerabilities in the operational readiness of the 
        Coast Guard; and
          (5) contribute to the development of a professional, 
        experienced acquisition workforce by providing 
        acquisition-experience tours of duty and educational 
        development for officers and employees of the Coast 
        Guard.

Sec. 563. Improvements in Coast Guard acquisition management

  (a) Project and Program Managers.--
          (1) Project or program manager defined.--In this 
        section, the term ``project or program manager'' means 
        an individual designated--
                  (A) to develop, produce, and deploy a new 
                asset to meet identified operational 
                requirements; and
                  (B) to manage cost, schedule, and performance 
                of the acquisition or project or program.
          (2) Level 1 projects.-- An individual may not be 
        assigned as the project or program manager for a Level 
        1 acquisition unless the individual holds a Level III 
        acquisition certification as a program manager.
          (3) Level 2 projects.--An individual may not be 
        assigned as the project or program manager for a Level 
        2 acquisition unless the individual holds a Level II 
        acquisition certification as a program manager.
  (b) Guidance on Tenure and Accountability of Program and 
Project Managers.--Not later than one year after the date of 
enactment of the Coast Guard Authorization Act for Fiscal years 
2010 and 2011, the Commandant shall issue guidance to address 
the qualifications, resources, responsibilities, tenure, and 
accountability of program and project managers for the 
management of acquisition programs and projects. The guidance 
shall address, at a minimum--
          (1) the qualifications required for project or 
        program managers, including the number of years of 
        acquisition experience and the professional training 
        levels to be required of those appointed to project or 
        program management positions; and
          (2) authorities available to project or program 
        managers, including, to the extent appropriate, the 
        authority to object to the addition of new program 
        requirements that would be inconsistent with the 
        parameters established for an acquisition program.
  (c) Acquisition Workforce.--
          (1) In general.--The Commandant shall designate a 
        sufficient number of positions to be in the Coast 
        Guard's acquisition workforce to perform acquisition-
        related functions at Coast Guard headquarters and field 
        activities.
          (2) Required positions.--The Commandant shall ensure 
        that members of the acquisition workforce have 
        expertise, education, and training in at least 1 of the 
        following acquisition career fields:
                  (A) Acquisition logistics.
                  (B) Auditing.
                  (C) Business, cost estimating, and financial 
                management.
                  (D) Contracting.
                  (E) Facilities engineering.
                  (F) Industrial or contract property 
                management.
                  (G) Information technology.
                  (H) Manufacturing, production, and quality 
                assurance.
                  (I) Program management.
                  (J) Purchasing.
                  (K) Science and technology.
                  (L) Systems planning, research, development, 
                and engineering.
                  (M) Test and evaluation.
          (3) Acquisition workforce expedited hiring 
        authority.--
                  (A) In general.--For purposes of sections 
                3304, 5333, and 5753 of title 5, the Commandant 
                may--
                          (i) designate any category of 
                        acquisition positions within the Coast 
                        Guard as shortage category positions; 
                        and
                          (ii) use the authorities in such 
                        sections to recruit and appoint highly 
                        qualified person directly to positions 
                        so designated.
                  (B) Limitation.--The Commandant may not 
                appoint a person to a position of employment 
                under this paragraph after September 30, 2012.
  (d) Management Information System.--
          (1) In general.--The Commandant shall establish a 
        management information system capability to improve 
        acquisition workforce management and reporting.
          (2) Information maintained.--Information maintained 
        with such capability shall include the following 
        standardized information on individuals assigned to 
        positions in the workforce:
                  (A) Qualifications, assignment history, and 
                tenure of those individuals assigned to 
                positions in the acquisition workforce or 
                holding acquisition-related certifications.
                  (B) Promotion rates for officers and members 
                of the Coast Guard in the acquisition 
                workforce.
  (e) Career Paths.--To establish acquisition management as a 
core competency of the Coast Guard, the Commandant shall--
          (1) ensure that career paths for officers, members, 
        and employees of the Coast Guard who wish to pursue 
        careers in acquisition are identified in terms of the 
        education, training, experience, and assignments 
        necessary for career progression of those officers, 
        members, and employees to the most senior positions in 
        the acquisition workforce; and
          (2) publish information on such career paths.

Sec. 564. Recognition of Coast Guard personnel for excellence in 
                    acquisition

  (a) In General.--Not later than 180 days after the date of 
enactment of the Coast Guard Authorization Act for Fiscal Years 
2010 and 2011, the Commandant shall commence implementation of 
a program to recognize excellent performance by individuals and 
teams comprised of officers, members, and employees of the 
Coast Guard that contributed to the long-term success of a 
Coast Guard acquisition project or program.
  (b) Elements.--The program shall include--
          (1) specific award categories, criteria, and 
        eligibility and manners of recognition;
          (2) procedures for the nomination by personnel of the 
        Coast Guard of individuals and teams comprised of 
        officers, members, and employees of the Coast Guard for 
        recognition under the program; and
          (3) procedures for the evaluation of nominations for 
        recognition under the program by one or more panels of 
        individuals from the Government, academia, and the 
        private sector who have such expertise and are 
        appointed in such manner as the Commandant shall 
        establish for the purposes of this program.
  (c) Award of Cash Bonuses.--As part of the program required 
by subsection (a), the Commandant, subject to the availability 
of appropriations, may award to any civilian employee 
recognized pursuant to the program a cash bonus to the extent 
that the performance of such individual so recognized warrants 
the award of such bonus.

Sec. 565. Prohibition on use of lead systems integrators

  (a) In General.--
          (1) Use of lead systems integrator.--Except as 
        provided in subsection (b), the Commandant may not use 
        a private sector entity as a lead systems integrator 
        for an acquisition contract awarded or delivery order 
        or task order issued after the date of enactment of the 
        Coast Guard Authorization Act for Fiscal Years 2010 and 
        2011.
          (2) Full and open competition.--The Commandant and 
        any lead systems integrator engaged by the Coast Guard, 
        pursuant to the exceptions described in subsection (b), 
        shall use full and open competition for any acquisition 
        contract awarded after the date of enactment of that 
        Act, unless otherwise excepted in accordance with the 
        Competition in Contracting Act of 1984 (41 U.S.C. 251 
        note), the amendments made by that Act, and the Federal 
        Acquisition Regulations.
          (3) No effect on small business act.--Nothing in this 
        subsection shall be construed to supersede or otherwise 
        affect the authorities provided by and under the Small 
        Business Act (15 U.S.C. 631 et seq.).
  (b) Exceptions.--
          (1) National distress and response system 
        modernization program; national security cutters 2 and 
        3.--Notwithstanding subsection (a), the Commandant may 
        use a private sector entity as a lead systems 
        integrator for the Coast Guard to complete the National 
        Distress and Response System Modernization Program, the 
        C4ISR projects directly related to the Integrated 
        Deepwater Program, and National Security Cutters 2 and 
        3 if the Secretary of Homeland Security certifies 
        that--
                  (A) the acquisition is in accordance with the 
                Competition in Contracting Act of 1984 (41 
                U.S.C. 251 note), the amendments made by that 
                Act, and the Federal Acquisition Regulations; 
                and
                  (B) the acquisition and the use of a private 
                sector entity as a lead systems integrator for 
                the acquisition is in the best interest of the 
                Federal Government.
          (2) Termination date for exceptions.--Except for the 
        modification of delivery or task orders pursuant to 
        Parts 4 and 42 of the Federal Acquisition Regulations, 
        the Commandant may not use a private sector entity as a 
        lead systems integrator after the earlier of--
                  (A) September 30, 2012; or
                  (B) the date on which the Commandant 
                certifies in writing to the appropriate 
                congressional committees that the Coast Guard 
                has available and can retain sufficient 
                contracting personnel and expertise within the 
                Coast Guard, through an arrangement with other 
                Federal agencies, or through contracts or other 
                arrangements with private sector entities, to 
                perform the functions and responsibilities of 
                the lead system integrator in an efficient and 
                cost-effective manner.

Sec. 566. Required contract terms

  (a) In General.--The Commandant shall ensure that a contract 
awarded or a delivery order or task order issued for an 
acquisition of a capability or an asset with an expected 
service life of 10 years and with a total acquisition cost that 
is equal to or exceeds $10,000,000 awarded or issued by the 
Coast Guard after the date of enactment of the Coast Guard 
Authorization Act for Fiscal Years 2010 and 2011--
          (1) provides that all certifications for an end-state 
        capability or asset under such contract, delivery 
        order, or task order, respectively, will be conducted 
        by the Commandant or an independent third party, and 
        that self-certification by a contractor or 
        subcontractor is not allowed;
          (2) requires that the Commandant shall maintain the 
        authority to establish, approve, and maintain technical 
        requirements;
          (3) requires that any measurement of contractor and 
        subcontractor performance be based on the status of all 
        work performed, including the extent to which the work 
        performed met all performance, cost, and schedule 
        requirements;
          (4) specifies that, for the acquisition or upgrade of 
        air, surface, or shore capabilities and assets for 
        which compliance with TEMPEST certification is a 
        requirement, the standard for determining such 
        compliance will be the air, surface, or shore standard 
        then used by the Department of the Navy for that type 
        of capability or asset; and
          (5) for any contract awarded to acquire an Offshore 
        Patrol Cutter, includes provisions specifying the 
        service life, fatigue life, and days underway in 
        general Atlantic and North Pacific Sea conditions, 
        maximum range, and maximum speed the cutter will be 
        built to achieve.
  (b) Prohibited Contract Provisions.--The Commandant shall 
ensure that any contract awarded or delivery order or task 
order issued by the Coast Guard after the date of enactment of 
the Coast Guard Authorization Act for Fiscal Years 2010 and 
2011 does not include any provision allowing for equitable 
adjustment that is not consistent with the Federal Acquisition 
Regulations.
  (c) Integrated Product Teams.--Integrated product teams, and 
all teams that oversee integrated product teams, shall be 
chaired by officers, members, or employees of the Coast Guard.
  (d) Deepwater Technical Authorities.--The Commandant shall 
maintain or designate the technical authorities to establish, 
approve, and maintain technical requirements. Any such 
designation shall be made in writing and may not be delegated 
to the authority of the Chief Acquisition Officer established 
by section 55 of this title.

Sec. 567. Department of Defense consultation

  (a) In General.--The Commandant shall make arrangements as 
appropriate with the Secretary of Defense for support in 
contracting and management of Coast Guard acquisition programs. 
The Commandant shall also seek opportunities to make use of 
Department of Defense contracts, and contracts of other 
appropriate agencies, to obtain the best possible price for 
assets acquired for the Coast Guard.
  (b) Inter-service Technical Assistance.--The Commandant shall 
seek to enter into a memorandum of understanding or a 
memorandum of agreement with the Secretary of the Navy to 
obtain the assistance of the Office of the Assistant Secretary 
of the Navy for Research, Development, and Acquisition, 
including the Navy Systems Command, with the oversight of Coast 
Guard major acquisition programs. The memorandum of 
understanding or memorandum of agreement shall, at a minimum, 
provide for--
          (1) the exchange of technical assistance and support 
        that the Assistant Commandants for Acquisition, Human 
        Resources, Engineering, and Information technology may 
        identify;
          (2) the use, as appropriate, of Navy technical 
        expertise; and
          (3) the exchange of personnel between the Coast Guard 
        and the Office of the Assistant Secretary of the Navy 
        for Research, Development, and Acquisition, including 
        Naval Systems Commands, to facilitate the development 
        of organic capabilities in the Coast Guard.
  (c) Technical Requirement Approval Procedures.--The Chief 
Acquisition Officer shall adopt, to the extent practicable, 
procedures modeled after those used by the Navy Senior 
Acquisition Official to approve all technical requirements.

Sec. 568. Undefinitized contractual actions

  (a) In General.--The Coast Guard may not enter into an 
undefinitized contractual action unless such action is directly 
approved by the Head of Contracting Activity of the Coast 
Guard.
  (b) Requests for Undefinitized Contractual Actions.--Any 
request to the Head of Contracting Activity for approval of an 
undefinitized contractual action shall include a description of 
the anticipated effect on requirements of the Coast Guard if a 
delay is incurred for the purposes of determining contractual 
terms, specifications, and price before performance is begun 
under the contractual action.
  (c) Requirements for Undefinitized Contractual Actions.--
          (1) Deadline for agreement on terms, specifications, 
        and price.--A contracting officer of the Coast Guard 
        may not enter into an undefinitized contractual action 
        unless the contractual action provides for agreement 
        upon contractual terms, specification, and price by the 
        earlier of--
                  (A) the end of the 180-day period beginning 
                on the date on which the contractor submits a 
                qualifying proposal to definitize the 
                contractual terms, specifications, and price; 
                or
                  (B) the date on which the amount of funds 
                obligated under the contractual action is equal 
                to more than 50 percent of the negotiated 
                overall ceiling price for the contractual 
                action.
          (2) Limitation on obligations.--
                  (A) In general.--Except as provided in 
                subparagraph (B), the contracting officer for 
                an undefinitized contractual action may not 
                obligate under such contractual action an 
                amount that exceeds 50 percent of the 
                negotiated overall ceiling price until the 
                contractual terms, specifications, and price 
                are definitized for such contractual action.
                  (B) Exception.--Notwithstanding subparagraph 
                (A), if a contractor submits a qualifying 
                proposal to definitize an undefinitized 
                contractual action before an amount that 
                exceeds 50 percent of the negotiated overall 
                ceiling price is obligated on such action, the 
                contracting officer for such action may not 
                obligate with respect to such contractual 
                action an amount that exceeds 75 percent of the 
                negotiated overall ceiling price until the 
                contractual terms, specifications, and price 
                are definitized for such contractual action.
          (3) Waiver.--The Commandant may waive the application 
        of this subsection with respect to a contract if the 
        Commandant determines that the waiver is necessary to 
        support--
                  (A) a contingency operation (as that term is 
                defined in section 101(a)(13) of title 10);
                  (B) operations to prevent or respond to a 
                transportation security incident (as defined in 
                section 70101(6) of title 46);
                  (C) an operation in response to an emergency 
                that poses an unacceptable threat to human 
                health or safety or to the marine environment; 
                or
                  (D) an operation in response to a natural 
                disaster or major disaster or emergency 
                designated by the President under the Robert T. 
                Stafford Disaster Relief and Emergency 
                Assistance Act (42 U.S.C. 5121 et seq.).
          (4) Limitation on application.--This subsection does 
        not apply to an undefinitized contractual action for 
        the purchase of initial spares.
  (d) Inclusion of Nonurgent Requirements.--Requirements for 
spare parts and support equipment that are not needed on an 
urgent basis may not be included in an undefinitized 
contractual action by the Coast Guard for spare parts and 
support equipment that are needed on an urgent basis unless the 
Commandant approves such inclusion as being--
          (1) good business practice; and
          (2) in the best interests of the United States.
  (e) Modification of Scope.--The scope of an undefinitized 
contractual action under which performance has begun may not be 
modified unless the Commandant approves such modification as 
being--
          (1) good business practice; and
          (2) in the best interests of the United States.
  (f) Allowable Profit.--The Commandant shall ensure that the 
profit allowed on an undefinitized contractual action for which 
the final price is negotiated after a substantial portion of 
the performance required is completed reflects--
          (1) the possible reduced cost risk of the contractor 
        with respect to costs incurred during performance of 
        the contract before the final price is negotiated; and
          (2) the reduced cost risk of the contractor with 
        respect to costs incurred during performance of the 
        remaining portion of the contract.
  (g) Definitions.--In this section:
          (1) Undefinitized contractual action.--
                  (A) In general.--Except as provided in 
                subparagraph (B), the term ``undefinitized 
                contractual action'' means a new procurement 
                action entered into by the Coast Guard for 
                which the contractual terms, specifications, or 
                price are not agreed upon before performance is 
                begun under the action.
                  (B) Exclusion.--The term ``undefinitized 
                contractual action'' does not include 
                contractual actions with respect to--
                          (i) foreign military sales;
                          (ii) purchases in an amount not in 
                        excess of the amount of the simplified 
                        acquisition threshold; or
                          (iii) special access programs.
          (2) Qualifying proposal.--The term ``qualifying 
        proposal'' means a proposal that contains sufficient 
        information to enable complete and meaningful audits of 
        the information contained in the proposal as determined 
        by the contracting officer.

       Subchapter 2--Improved Acquisition Process and Procedures

Sec. 571. Identification of major system acquisitions

  (a) In General.--
          (1) Support mechanisms.--The Commandant shall develop 
        and implement mechanisms to support the establishment 
        of mature and stable operational requirements for 
        acquisitions under this subchapter.
          (2) Mission analysis; affordability assessment.--The 
        Commandant may not initiate a Level 1 or Level 2 
        acquisition project or program until the Commandant--
                  (A) completes a mission analysis that--
                          (i) identifies any gaps in 
                        capability; and
                          (ii) develops a clear mission need; 
                        and
                  (B) prepares a preliminary affordability 
                assessment for the project or program.
  (b) Elements.--
          (1) Requirements.--The mechanisms required by 
        subsection (a) shall ensure the implementation of a 
        formal process for the development of a mission-needs 
        statement, concept-of-operations document, capability 
        development plan, and resource proposal for the initial 
        project or program funding, and shall ensure the 
        project or program is included in the Coast Guard 
        Capital Investment Plan.
          (2) Assessment of trade-offs.--In conducting an 
        affordability assessment under subsection (a)(2)(B), 
        the Commandant shall develop and implement mechanisms 
        to ensure that trade-offs among cost, schedule, and 
        performance are considered in the establishment of 
        preliminary operational requirements for development 
        and production of new assets and capabilities for Level 
        1 and Level 2 acquisitions projects and programs.
  (c) Human Resource Capital Planning.--The Commandant shall 
develop staffing predictions, define human capital performance 
initiatives, and identify preliminary training needs for any 
such project or program.
  (d) DHS Acquisition Approval.--A Level 1 or Level 2 
acquisition project or program may not be implemented unless it 
is approved by the Department of Homeland Security Acquisition 
Review Board or the Joint Review Board.

Sec. 572. Acquisition

  (a) In General.--The Commandant may not establish a Level 1 
or Level 2 acquisition project or program approved under 
section 571(d) until the Commandant--
          (1) clearly defines the operational requirements for 
        the project or program;
          (2) establishes the feasibility of alternatives;
          (3) develops an acquisition project or program 
        baseline;
          (4) produces a life-cycle cost estimate; and
          (5) assesses the relative merits of alternatives to 
        determine a preferred solution in accordance with the 
        requirements of this section.
  (b) Analysis of Alternatives.--
          (1) In general.--The Commandant shall conduct an 
        analysis of alternatives for the asset or capability to 
        be acquired in an analyze and select phase of the 
        acquisition process.
          (2) Requirements.--The analysis of alternatives shall 
        be conducted by a federally funded research and 
        development center, a qualified entity of the 
        Department of Defense, or a similar independent third 
        party entity that has appropriate acquisition expertise 
        and has no substantial financial interest in any part 
        of the acquisition project or program that is the 
        subject of the analysis. At a minimum, the analysis of 
        alternatives shall include--
                  (A) an assessment of the technical maturity, 
                and technical and other risks;
                  (B) an examination of capability, 
                interoperability, and other disadvantages;
                  (C) an evaluation of whether different 
                combinations or quantities of specific assets 
                or capabilities could meet the Coast Guard's 
                overall performance needs;
                  (D) a discussion of key assumptions and 
                variables, and sensitivity to change in such 
                assumptions and variables;
                  (E) when an alternative is an existing asset 
                or prototype, an evaluation of relevant safety 
                and performance records and costs;
                  (F) a calculation of life-cycle costs 
                including--
                          (i) an examination of likely research 
                        and development costs and the levels of 
                        uncertainty associated with such 
                        estimated costs;
                          (ii) an examination of likely 
                        production and deployment costs and 
                        levels of uncertainty associated with 
                        such estimated costs;
                          (iii) an examination of likely 
                        operating and support costs and the 
                        levels of uncertainty associated with 
                        such estimated costs;
                          (iv) if they are likely to be 
                        significant, an examination of likely 
                        disposal costs and the levels of 
                        uncertainty associated with such 
                        estimated costs; and
                          (v) such additional measures as the 
                        Commandant or the Secretary of Homeland 
                        Security determines to be necessary for 
                        appropriate evaluation of the asset; 
                        and
                  (G) the business case for each viable 
                alternative.
  (c) Test and Evaluation Master Plan.--
          (1) In general.--For any Level 1 or Level 2 
        acquisition project or program the Chief Acquisition 
        Officer shall approve a test and evaluation master plan 
        specific to the acquisition project or program for the 
        capability, asset, or subsystems of the capability or 
        asset and intended to minimize technical, cost, and 
        schedule risk as early as practicable in the 
        development of the project or program.
          (2) Test and evaluation strategy.--The master plan 
        shall--
                  (A) set forth an integrated test and 
                evaluation strategy that will verify that 
                capability-level or asset-level and subsystem-
                level design and development, including 
                performance and supportability, have been 
                sufficiently proven before the capability, 
                asset, or subsystem of the capability or asset 
                is approved for production; and
                  (B) require that adequate developmental tests 
                and evaluations and operational tests and 
                evaluations established under subparagraph (A) 
                are performed to inform production decisions.
          (3) Other components of the master plan.--At a 
        minimum, the master plan shall identify--
                  (A) the key performance parameters to be 
                resolved through the integrated test and 
                evaluation strategy;
                  (B) critical operational issues to be 
                assessed in addition to the key performance 
                parameters;
                  (C) specific development test and evaluation 
                phases and the scope of each phase;
                  (D) modeling and simulation activities to be 
                performed, if any, and the scope of such 
                activities;
                  (E) early operational assessments to be 
                performed, if any, and the scope of such 
                assessments;
                  (F) operational test and evaluation phases;
                  (G) an estimate of the resources, including 
                funds, that will be required for all test, 
                evaluation, assessment, modeling, and 
                simulation activities; and
                  (H) the Government entity or independent 
                entity that will perform the test, evaluation, 
                assessment, modeling, and simulation 
                activities.
          (4) Update.--The Chief Acquisition Officer shall 
        approve an updated master plan whenever there is a 
        revision to project or program test and evaluation 
        strategy, scope, or phasing.
          (5) Limitation.--The Coast Guard may not--
                  (A) proceed beyond that phase of the 
                acquisition process that entails approving the 
                supporting acquisition of a capability or asset 
                before the master plan is approved by the Chief 
                Acquisition Officer; or
                  (B) award any production contract for a 
                capability, asset, or subsystem for which a 
                master plan is required under this subsection 
                before the master plan is approved by the Chief 
                Acquisition Officer.
  (d) Life-cycle Cost Estimates.--
          (1) In general.--The Commandant shall implement 
        mechanisms to ensure the development and regular 
        updating of life-cycle cost estimates for each Level 1 
        or Level 2 acquisition to ensure that these estimates 
        are considered in decisions to develop or produce new 
        or enhanced capabilities and assets.
          (2) Types of estimates.--In addition to life-cycle 
        cost estimates that may be developed by acquisition 
        program offices, the Commandant shall require that an 
        independent life-cycle cost estimate be developed for 
        each Level 1 or Level 2 acquisition project or program.
          (3) Required updates.--For each Level 1 or Level 2 
        acquisition project or program the Commandant shall 
        require that life-cycle cost estimates shall be updated 
        before each milestone decision is concluded and the 
        project or program enters a new acquisition phase.
  (e) DHS Acquisition Approval.--A project or program may not 
enter the obtain phase under section 573 unless the Department 
of Homeland Security Acquisition Review Board or the Joint 
Review Board (or other entity to which such responsibility is 
delegated by the Secretary of Homeland Security) has approved 
the analysis of alternatives for the project. The Joint Review 
Board may also approve the low rates initial production 
quantity for the project or program if such an initial 
production quantity is planned by the acquisition project or 
program and deemed appropriate by the Joint Review Board.

Sec. 573. Preliminary development and demonstration

  (a) In General.--The Commandant shall ensure that 
developmental test and evaluation, operational test and 
evaluation, life cycle cost estimates, and the development and 
demonstration requirements are met to confirm that the projects 
or programs meet the requirements described in the mission-
needs statement and the operational-requirements document and 
the following development and demonstration objectives:
          (1) To demonstrate that the most promising design, 
        manufacturing, and production solution is based upon a 
        stable, producible, and cost-effective product design.
          (2) To ensure that the product capabilities meet 
        contract specifications, acceptable operational 
        performance requirements, and system security 
        requirements.
          (3) To ensure that the product design is mature 
        enough to commit to full production and deployment.
  (b) Tests and Evaluations.--
          (1) In general.--The Commandant shall ensure that the 
        Coast Guard conducts developmental tests and 
        evaluations and operational tests and evaluations of a 
        capability or asset and the subsystems of the 
        capability or asset for which a master plan has been 
        prepared under section 572(c)(1).
          (2) Use of third parties.--The Commandant shall 
        ensure that the Coast Guard uses independent third 
        parties with expertise in testing and evaluating the 
        capabilities or assets and the subsystems of the 
        capabilities or assets being acquired to conduct 
        developmental tests and evaluations and operational 
        tests and evaluations whenever the Coast Guard lacks 
        the capability to conduct the tests and evaluations 
        required by a master plan.
          (3) Communication of safety concerns.--The Commandant 
        shall require that safety concerns identified during 
        developmental or operational tests and evaluations or 
        through independent or Government-conducted design 
        assessments of capabilities or assets and subsystems of 
        capabilities or assets to be acquired by the Coast 
        Guard shall be communicated as soon as practicable, but 
        not later than 30 days after the completion of the test 
        or assessment event or activity that identified the 
        safety concern, to the program manager for the 
        capability or asset and the subsystems concerned and to 
        the Chief Acquisition Officer.
          (4) Asset already in low, initial, or full-rate 
        production.--If operational test and evaluation on a 
        capability or asset already in low, initial, or full-
        rate production identifies a safety concern with the 
        capability or asset or any subsystems of the capability 
        or asset not previously identified during developmental 
        or operational test and evaluation, the Commandant 
        shall--
                  (A) notify the program manager and the Chief 
                Acquisition Officer of the safety concern as 
                soon as practicable, but not later than 30 days 
                after the completion of the test and evaluation 
                event or activity that identified the safety 
                concern; and
                  (B) notify the Chief Acquisition Officer and 
                include in such notification--
                          (i) an explanation of the actions 
                        that will be taken to correct or 
                        mitigate the safety concern in all 
                        capabilities or assets and subsystems 
                        of the capabilities or assets yet to be 
                        produced, and the date by which those 
                        actions will be taken;
                          (ii) an explanation of the actions 
                        that will be taken to correct or 
                        mitigate the safety concern in 
                        previously produced capabilities or 
                        assets and subsystems of the 
                        capabilities or assets, and the date by 
                        which those actions will be taken; and
                          (iii) an assessment of the adequacy 
                        of current funding to correct or 
                        mitigate the safety concern in 
                        capabilities or assets and subsystems 
                        of the capabilities or assets and in 
                        previously produced capabilities or 
                        assets and subsystems.
  (c) Technical Certification.--
          (1) In general.--The Commandant shall--ensure that 
        any Level 1 or Level 2 acquisition project or program 
        is certified by the technical authority of the Coast 
        Guard after review by an independent third party with 
        capabilities in the mission area, asset, or particular 
        asset component.
          (2) TEMPEST testing.--The Commandant shall--
                  (A) cause all electronics on all aircraft, 
                surface, and shore assets that require TEMPEST 
                certification and that are delivered after the 
                date of enactment of the Coast Guard 
                Authorization Act for Fiscal Years 2010 and 
                2011 to be tested in accordance with master 
                plan standards and communications security 
                standards by an independent third party that is 
                authorized by the Federal Government to perform 
                such testing; and
                  (B) certify that the assets meet all 
                applicable TEMPEST requirements.
          (3) Vessel classification.--The Commandant shall 
        cause each cutter, other than the National Security 
        Cutter, acquired by the Coast Guard and delivered after 
        the date of enactment of the Coast Guard Authorization 
        Act for Fiscal Years 2010 and 2011 is to be classed by 
        the American Bureau of Shipping before final 
        acceptance.
  (d) Acquisition Decision.--The Commandant may not proceed to 
full scale production, deployment, and support of a Level 1 or 
Level 2 acquisition project or program unless the Department of 
Homeland Security Acquisition Review Board has verified that 
the delivered asset or system meets the project or program 
performance and cost goals.

Sec. 574. Acquisition, production, deployment, and support

  (a) In General.--The Commandant shall--
          (1) ensure there is a stable and efficient production 
        and support capability to develop an asset or system;
          (2) conduct follow on testing to confirm and monitor 
        performance and correct deficiencies; and
          (3) conduct acceptance tests and trails upon the 
        delivery of each asset or system to ensure the 
        delivered asset or system achieves full operational 
        capability.
  (b) Elements.--The Commandant shall--
          (1) execute the productions contracts;
          (2) ensure the delivered products meet operational 
        cost and schedules requirements established in the 
        acquisition program baseline;
          (3) validate manpower and training requirements to 
        meet system needs to operate, maintain, support, and 
        instruct the system; and
          (4) prepare a project or program transition plan to 
        enter into programmatic sustainment, operations, and 
        support.

Sec. 575. Acquisition program baseline breach

  (a) In General.--The Commandant shall submit a report to the 
appropriate congressional committees as soon as possible, but 
not later than 30 days, after the Chief Acquisition Officer of 
the Coast Guard becomes aware of the breach of an acquisition 
program baseline for any Level 1 or Level 2 acquisition 
program, by--
          (1) a likely cost overrun greater than 15 percent of 
        the acquisition program baseline for that individual 
        capability or asset or a class of capabilities or 
        assets;
          (2) a likely delay of more than 180 days in the 
        delivery schedule for any individual capability or 
        asset or class of capabilities or assets; or
          (3) an anticipated failure for any individual 
        capability or asset or class of capabilities or assets 
        to satisfy any key performance threshold or parameter 
        under the acquisition program baseline.
  (b) Content.--The report submitted under subsection (a) shall 
include--
          (1) a detailed description of the breach and an 
        explanation of its cause;
          (2) the projected impact to performance, cost, and 
        schedule;
          (3) an updated acquisition program baseline and the 
        complete history of changes to the original acquisition 
        program baseline;
          (4) the updated acquisition schedule and the complete 
        history of changes to the original schedule;
          (5) a full life-cycle cost analysis for the 
        capability or asset or class of capabilities or assets;
          (6) a remediation plan identifying corrective actions 
        and any resulting issues or risks; and
          (7) a description of how progress in the remediation 
        plan will be measured and monitored.
  (c) Substantial Variances in Costs or Schedule.--If a likely 
cost overrun is greater than 25 percent or a likely delay is 
greater than 12 months from the costs and schedule described in 
the acquisition program baseline for any Level 1 or Level 2 
acquisition project or program of the Coast Guard, the 
Commandant shall include in the report a written certification, 
with a supporting explanation, that--
          (1) the capability or asset or capability or asset 
        class to be acquired under the project or program is 
        essential to the accomplishment of Coast Guard 
        missions;
          (2) there are no alternatives to such capability or 
        asset or capability or asset class which will provide 
        equal or greater capability in both a more cost-
        effective and timely manner;
          (3) the new acquisition schedule and estimates for 
        total acquisition cost are reasonable; and
          (4) the management structure for the acquisition 
        program is adequate to manage and control performance, 
        cost, and schedule.

                       Subchapter 3--Definitions

Sec. 581. Definitions

  In this chapter:
          (1) Appropriate congressional committees.--The term 
        ``appropriate congressional committees'' means the 
        House of Representatives Committee on Transportation 
        and Infrastructure and the Senate Committee on 
        Commerce, Science, and Transportation.
          (2) Chief acquisition officer.--The term ``Chief 
        Acquisition Officer'' means the officer appointed under 
        section 55 of this title.
          (3) Commandant.--The term ``Commandant'' means the 
        Commandant of the Coast Guard.
          (4) Joint review board.--The term ``Joint Review 
        Board'' means the Department of Homeland Security's 
        Investment Review Board, Joint Requirements Council, or 
        other entity within the Department designated by the 
        Secretary as the Joint Review Board for purposes of 
        this chapter.
          (5) Level 1 acquisition.--The term ``Level 1 
        acquisition'' means--
                  (A) an acquisition by the Coast Guard--
                          (i) the estimated life-cycle costs of 
                        which exceed $1,000,000,000; or
                          (ii) the estimated total acquisition 
                        costs of which exceed $300,000,000; or
                  (B) any acquisition that the Chief 
                Acquisition Officer of the Coast Guard 
                determines to have a special interest--
                          (i) due to--
                                  (I) the experimental or 
                                technically immature nature of 
                                the asset;
                                  (II) the technological 
                                complexity of the asset;
                                  (III) the commitment of 
                                resources; or
                                  (IV) the nature of the 
                                capability or set of 
                                capabilities to be achieved; or
                          (ii) because such acquisition is a 
                        joint acquisition.
          (6) Level 2 acquisition.--The term ``Level 2 
        acquisition'' means an acquisition by the Coast Guard--
                  (A) the estimated life-cycle costs of which 
                are equal to or less than $1,000,000,000, but 
                greater than $300,000,000; or
                  (B) the estimated total acquisition costs of 
                which are equal to or less than $300,000,0000, 
                but greater than $100,000,000.
          (7) Life-cycle cost.--The term ``life-cycle cost'' 
        means all costs for development, procurement, 
        construction, and operations and support for a 
        particular capability or asset, without regard to 
        funding source or management control.
          (8) Safety concern.--The term ``safety concern'' 
        means any hazard associated with a capability or asset 
        or a subsystem of a capability or asset that is likely 
        to cause serious bodily injury or death to a typical 
        Coast Guard user in testing, maintaining, repairing, or 
        operating the capability, asset, or subsystem or any 
        hazard associated with the capability, asset, or 
        subsystem that is likely to cause major damage to the 
        capability, asset, or subsystem during the course of 
        its normal operation by a typical Coast Guard user.

           *       *       *       *       *       *       *


                       CHAPTER 17. ADMINISTRATION

Sec. 638a. Coast Guard vessels and aircraft defined

  For the purposes of sections 637 and 638 of this title, the 
term Coast Guard vessels and aircraft means--
          (1) any vessel or aircraft owned, leased, transferred 
        to, or operated by the Coast Guard and under the 
        command of a Coast Guard member; or
          (2) any other vessel or aircraft under the tactical 
        control of the Coast Guard on which one or more members 
        of the Coast Guard are assigned and conducting Coast 
        Guard missions.

                ARMED FORCES RETIREMENT HOME ACT OF 1991

SEC. 1502. DEFINITIONS.

                            [24 U.S.C. 401]

  For purposes of this title:
          (1) The term ``Retirement Home'' includes the 
        institutions established under section 1511, as 
        follows:
                  (A) The Armed Forces Retirement Home--
                Washington.
                  (B) The Armed Forces Retirement Home--
                Gulfport.
          (2) The term ``Local Board''means a Local Board of 
        Trustees established under section 1516.
          (3) The terms ``Armed Forces Retirement Home Trust 
        Fund'' and ``Fund'' mean the Armed Forces Retirement 
        Home Trust Fund established under section 1519(a).
          (4) The term ``Armed Forces'' [does not include the 
        Coast Guard when it is not operating as a service in 
        the Navy.] has the meaning given such term in section 
        101(4) of title 10.
          (5) The term ``chief personnel officers'' means--
                  (A) the Deputy Chief of Staff for Personnel 
                of the Army;
                  (B) the Chief of Naval Personnel;
                  (C) the Deputy Chief of Staff for Personnel 
                of the Air Force; [and]
                  (D) the Deputy Commandant of the Marine Corps 
                for Manpower and Reserve [Affairs.] Affairs; 
                and
                  (E) the Assistant Commandant of the Coast 
                Guard for Human Resources.
          (6) The term ``senior noncommissioned officers'' 
        means the following:
                  (A) The Sergeant Major of the Army.
                  (B) The Master Chief Petty Officer of the 
                Navy.
                  (C) The Chief Master Sergeant of the Air 
                Force.
                  (D) The Sergeant Major of the Marine Corps.
                  (E) The Master Chief Petty Officer of the 
                Coast Guard.

                       OIL POLLUTION ACT OF 1990

SEC. 1001. DEFINITIONS

                            [33 U.S.C. 2701]

  For the purposes of this Act, the term--
          (1) ``act of God'' means an unanticipated grave 
        natural disaster or other natural phenomenon of an 
        exceptional, inevitable, and irresistible character the 
        effects of which could not have been prevented or 
        avoided by the exercise of due care or foresight;
          (2) ``barrel'' means 42 United States gallons at 60 
        degrees fahrenheit;
          (3) ``claim'' means a request, made in writing for a 
        sum certain, for compensation for damages or removal 
        costs resulting from an incident;
          (4) ``claimant'' means any person or government who 
        presents a claim for compensation under this title;
          (5) ``damages'' means damages specified in section 
        1002(b) of this Act, and includes the cost of assessing 
        these damages;
          (6) ``deepwater port'' is a facility licensed under 
        the Deepwater Port Act of 1974 (33 U.S.C. 1501-1524);
          (7) ``discharge'' means any emission (other than 
        natural seepage), intentional or unintentional, and 
        includes, but is not limited to, spilling, leaking, 
        pumping, pouring, emitting, emptying, or dumping;
          (8) ``exclusive economic zone'' means the zone 
        established by Presidential Proclamation Numbered 5030, 
        dated March 10, 1983, including the ocean waters of the 
        areas referred to as ``eastern special areas'' in 
        Article 3(1) of the Agreement between the United States 
        of America and the Union of Soviet Socialist Republics 
        on the Maritime Boundary, signed June 1, 1990;
          (9) ``facility'' means any structure, group of 
        structures, equipment, or device (other than a vessel) 
        which is used for one or more of the following 
        purposes: exploring for, drilling for, producing, 
        storing, handling, transferring, processing, or 
        transporting oil. This term includes any motor vehicle, 
        rolling stock, or pipeline used for one or more of 
        these purposes;
          (10) ``foreign offshore unit'' means a facility which 
        is located, in whole or in part, in the territorial sea 
        or on the continental shelf of a foreign country and 
        which is or was used for one or more of the following 
        purposes: exploring for, drilling for, producing, 
        storing, handling, transferring, processing, or 
        transporting oil produced from the seabed beneath the 
        foreign country's territorial sea or from the foreign 
        country's continental shelf;
          (11) ``Fund'' means the Oil Spill Liability Trust 
        Fund, established by section 9509 of the Internal 
        Revenue Code of 1986 (26 U.S.C. 9509);
          (12) ``gross ton'' has the meaning given that term by 
        the Secretary under part J of title 46, United States 
        Code;
          (13) ``guarantor'' means any person, other than the 
        responsible party, who provides evidence of financial 
        responsibility for a responsible party under this Act;
          (14) ``incident'' means any occurrence or series of 
        occurrences having the same origin, involving one or 
        more vessels, facilities, or any combination thereof, 
        resulting in the discharge or substantial threat of 
        discharge of oil;
          (15) ``Indian tribe'' means any Indian tribe, band, 
        nation, or other organized group or community, but not 
        including any Alaska Native regional or village 
        corporation, which is recognized as eligible for the 
        special programs and services provided by the United 
        States to Indians because of their status as Indians 
        and has governmental authority over lands belonging to 
        or controlled by the tribe;
          (16) ``lessee'' means a person holding a leasehold 
        interest in an oil or gas lease on lands beneath 
        navigable waters (as that term is defined in section 
        2(a) of the Submerged Lands Act (43 U.S.C. 1301(a))) or 
        on submerged lands of the Outer Continental Shelf, 
        granted or maintained under applicable State law or the 
        Outer Continental Shelf Lands Act (43 U.S.C. 1331 et 
        seq.);
          (17) ``liable'' or ``liability'' shall be construed 
        to be the standard of liability which obtains under 
        section 311 of the Federal Water Pollution Control Act 
        (33 U.S.C. 1321);
          (18) ``mobile offshore drilling unit'' means a vessel 
        (other than a self-elevating lift vessel) capable of 
        use as an offshore facility;
          (19) ``National Contingency Plan'' means the National 
        Contingency Plan prepared and published under section 
        311(d) of the Federal Water Pollution Control Act, as 
        amended by this Act, or revised under section 105 of 
        the Comprehensive Environmental Response, Compensation, 
        and Liability Act (42 U.S.C. 9605);
          (20) ``natural resources'' includes land, fish, 
        wildlife, biota, air, water, ground water, drinking 
        water supplies, and other such resources belonging to, 
        managed by, held in trust by, appertaining to, or 
        otherwise controlled by the United States (including 
        the resources of the exclusive economic zone), any 
        State or local government or Indian tribe, or any 
        foreign government;
          (21) ``navigable waters'' means the waters of the 
        United States, including the territorial sea;
          (22) ``offshore facility'' means any facility of any 
        kind located in, on, or under any of the navigable 
        waters of the United States, and any facility of any 
        kind which is subject to the jurisdiction of the United 
        States and is located in, on, or under any other 
        waters, other than a vessel or a public vessel;
          (23) ``oil'' means oil of any kind or in any form, 
        including petroleum, fuel oil, sludge, oil refuse, and 
        oil mixed with wastes other than dredged spoil, but 
        does not include any substance which is specifically 
        listed or designated as a hazardous substance under 
        subparagraphs (A) through (F) of section 101(14) of the 
        Comprehensive Environmental Response, Compensation, and 
        Liability Act (42 U.S.C. 9601) and which is subject to 
        the provisions of that Act;
          (24) ``onshore facility'' means any facility 
        (including, but not limited to, motor vehicles and 
        rolling stock) of any kind located in, on, or under, 
        any land within the United States other than submerged 
        land;
          (25) the term ``Outer Continental Shelf facility'' 
        means an offshore facility which is located, in whole 
        or in part, on the Outer Continental Shelf and is or 
        was used for one or more of the following purposes: 
        exploring for, drilling for, producing, storing, 
        handling, transferring, processing, or transporting oil 
        produced from the Outer Continental Shelf;
          (26) ``owner or operator''--
                  (A) means--
                          (i) in the case of a vessel, any 
                        person owning, operating, or chartering 
                        by demise, the vessel;
                          (ii) in the case of an onshore or 
                        offshore facility, any person owning or 
                        operating such facility;
                          (iii) in the case of any abandoned 
                        offshore facility, the person who owned 
                        or operated such facility immediately 
                        prior to such abandonment;
                          (iv) in the case of any facility, 
                        title or control of which was conveyed 
                        due to bankruptcy, foreclosure, tax 
                        delinquency, abandonment, or similar 
                        means to a unit of State or local 
                        government, any person who owned, 
                        operated, or otherwise controlled 
                        activities at such facility immediately 
                        beforehand;
                          (v) notwithstanding subparagraph 
                        (B)(i), and in the same manner and to 
                        the same extent, both procedurally and 
                        substantively, as any nongovernmental 
                        entity, including for purposes of 
                        liability under section 1002, any State 
                        or local government that has caused or 
                        contributed to a discharge or 
                        substantial threat of a discharge of 
                        oil from a vessel or facility ownership 
                        or control of which was acquired 
                        involuntarily through--
                                  (I) seizure or otherwise in 
                                connection with law enforcement 
                                activity;
                                  (II) bankruptcy;
                                  (III) tax delinquency;
                                  (IV) abandonment; or
                                  (V) other circumstances in 
                                which the government 
                                involuntarily acquires title by 
                                virtue of its function as 
                                sovereign;
                          (vi) notwithstanding subparagraph 
                        (B)(ii), a person that is a lender and 
                        that holds indicia of ownership 
                        primarily to protect a security 
                        interest in a vessel or facility if, 
                        while the borrower is still in 
                        possession of the vessel or facility 
                        encumbered by the security interest, 
                        the person--
                                  (I) exercises decision making 
                                control over the environmental 
                                compliance related to the 
                                vessel or facility, such that 
                                the person has undertaken 
                                responsibility for oil handling 
                                or disposal practices related 
                                to the vessel or facility; or
                                  (II) exercises control at a 
                                level comparable to that of a 
                                manager of the vessel or 
                                facility, such that the person 
                                has assumed or manifested 
                                responsibility--
                                          (aa) for the overall 
                                        management of the 
                                        vessel or facility 
                                        encompassing day-to-day 
                                        decision making with 
                                        respect to 
                                        environmental 
                                        compliance; or
                                          (bb) over all or 
                                        substantially all of 
                                        the operational 
                                        functions (as 
                                        distinguished from 
                                        financial or 
                                        administrative 
                                        functions) of the 
                                        vessel or facility 
                                        other than the function 
                                        of environmental 
                                        compliance; and
                  (B) does not include--
                          (i) A unit of state or local 
                        government that acquired ownership or 
                        control of a vessel or facility 
                        involuntarily through--
                                  (I) seizure or otherwise in 
                                connection with law enforcement 
                                activity;
                                  (II) bankruptcy;
                                  (III) tax delinquency;
                                  (IV) abandonment; or
                                  (V) other circumstances in 
                                which the government 
                                involuntarily acquires title by 
                                virtue of its function as 
                                sovereign;
                          (ii) a person that is a lender that 
                        does not participate in management of a 
                        vessel or facility, but holds indicia 
                        of ownership primarily to protect the 
                        security interest of the person in the 
                        vessel or facility; or
                          (iii) a person that is a lender that 
                        did not participate in management of a 
                        vessel or facility prior to 
                        foreclosure, notwithstanding that the 
                        person--
                                  (I) forecloses on the vessel 
                                or facility; and
                                  (II) after foreclosure, 
                                sells, re-leases (in the case 
                                of a lease finance 
                                transaction), or liquidates the 
                                vessel or facility, maintains 
                                business activities, winds up 
                                operations, undertakes a 
                                removal action under section 
                                311(c) of the Federal Water 
                                Pollution Control Act (33 
                                U.S.C. 1321(c)) or under the 
                                direction of an on-scene 
                                coordinator appointed under the 
                                National Contingency Plan, with 
                                respect to the vessel or 
                                facility, or takes any other 
                                measure to preserve, protect, 
                                or prepare the vessel or 
                                facility prior to sale or 
                                disposition, if the person 
                                seeks to sell, re-lease (in the 
                                case of a lease finance 
                                transaction), or otherwise 
                                divest the person of the vessel 
                                or facility at the earliest 
                                practicable, commercially 
                                reasonable time, on 
                                commercially reasonable terms, 
                                taking into account market 
                                conditions and legal and 
                                regulatory requirements;
          (27) ``person'' means an individual, corporation, 
        partnership, association, State, municipality, 
        commission, or political subdivision of a State, or any 
        interstate body;
          (28) ``permittee'' means a person holding an 
        authorization, license, or permit for geological 
        exploration issued under section 11 of the Outer 
        Continental Shelf Lands Act (43 U.S.C. 1340) or 
        applicable State law;
          (29) ``public vessel'' means a vessel owned or 
        bareboat chartered and operated by the United States, 
        or by a State or political subdivision thereof, or by a 
        foreign nation, except when the vessel is engaged in 
        commerce;
          (30) ``remove'' or ``removal'' means containment and 
        removal of oil or a hazardous substance from water and 
        shorelines or the taking of other actions as may be 
        necessary to minimize or mitigate damage to the public 
        health or welfare, including, but not limited to, fish, 
        shellfish, wildlife, and public and private property, 
        shorelines, and beaches;
          (31) ``removal costs'' means the costs of removal 
        that are incurred after a discharge of oil has occurred 
        or, in any case in which there is a substantial threat 
        of a discharge of oil, the costs to prevent, minimize, 
        or mitigate oil pollution from such an incident;
          (32) ``responsible party'' means the following:
                  (A) Vessels.--In the case of a vessel, any 
                person owning, operating, or demise chartering 
                the vessel. In the case of a vessel, the term 
                ``responsible party'' also includes the owner 
                of oil being transported in a tank vessel with 
                a single hull after December 31, 2010 (other 
                than a vessel described in section 3703a(b)(3) 
                of title 46, United States Code).
                  (B) Onshore facilities.--In the case of an 
                onshore facility (other than a pipeline), any 
                person owning or operating the facility, except 
                a Federal agency, State, municipality, 
                commission, or political subdivision of a 
                State, or any interstate body, that as the 
                owner transfers possession and right to use the 
                property to another person by lease, 
                assignment, or permit.
                  (C) Offshore facilities.--In the case of an 
                offshore facility (other than a pipeline or a 
                deepwater port licensed under the Deepwater 
                Port Act of 1974 (33 U.S.C. 1501 et seq.)), the 
                lessee or permittee of the area in which the 
                facility is located or the holder of a right of 
                use and easement granted under applicable State 
                law or the Outer Continental Shelf Lands Act 
                (43 U.S.C. 1301-1356) for the area in which the 
                facility is located (if the holder is a 
                different person than the lessee or permittee), 
                except a Federal agency, State, municipality, 
                commission, or political subdivision of a 
                State, or any interstate body, that as owner 
                transfers possession and right to use the 
                property to another person by lease, 
                assignment, or permit.
                  (D) Deepwater ports.--In the case of a 
                deepwater port licensed under the Deepwater 
                Port Act of 1974 (33 U.S.C. 1501-1524), the 
                licensee.
                  (E) Pipelines.--In the case of a pipeline, 
                any person owning or operating the pipeline.
                  (F) Abandonment.--In the case of an abandoned 
                vessel, onshore facility, deepwater port, 
                pipeline, or offshore facility, the persons who 
                would have been responsible parties immediately 
                prior to the abandonment of the vessel or 
                facility.
          (33) ``Secretary'' means the Secretary of the 
        department in which the Coast Guard is operating;
          (34) ``tank vessel'' means a vessel that is 
        constructed or adapted to carry, or that carries, oil 
        or hazardous material in bulk as cargo or cargo 
        residue, and that--
                  (A) is a vessel of the United States;
                  (B) operates on the navigable waters; or
                  (C) transfers oil or hazardous material in a 
                place subject to the jurisdiction of the United 
                States;
          (35) ``territorial seas'' means the belt of the seas 
        measured from the line of ordinary low water along that 
        portion of the coast which is in direct contact with 
        the open sea and the line marking the seaward limit of 
        inland waters, and extending seaward a distance of 3 
        miles;
          (36) ``United States'' and ``State'' mean the several 
        States of the United States, the District of Columbia, 
        the Commonwealth of Puerto Rico, Guam, American Samoa, 
        the United States Virgin Islands, the Commonwealth of 
        the Northern Marianas, and any other territory or 
        possession of the United States;
          (37) ``vessel'' means every description of watercraft 
        or other artificial contrivance used, or capable of 
        being used, as a means of transportation on water, 
        other than a public vessel;
          (38) ``participate in management''--
                  (A)(i) means actually participating in the 
                management or operational affairs of a vessel 
                or facility; and
                  (ii) does not include merely having the 
                capacity to influence, or the unexercised right 
                to control, vessel or facility operations; and
                  (B) does not include--
                          (i) performing an act or failing to 
                        act prior to the time at which a 
                        security interest is created in a 
                        vessel or facility;
                          (ii) holding a security interest or 
                        abandoning or releasing a security 
                        interest;
                          (iii) including in the terms of an 
                        extension of credit, or in a contract 
                        or security agreement relating to the 
                        extension, a covenant, warranty, or 
                        other term or condition that relates to 
                        environmental compliance;
                          (iv) monitoring or enforcing the 
                        terms and conditions of the extension 
                        of credit or security interest;
                          (v) monitoring or undertaking one or 
                        more inspections of the vessel or 
                        facility;
                          (vi) requiring a removal action or 
                        other lawful means of addressing a 
                        discharge or substantial threat of a 
                        discharge of oil in connection with the 
                        vessel or facility prior to, during, or 
                        on the expiration of the term of the 
                        extension of credit;
                          (vii) providing financial or other 
                        advice or counseling in an effort to 
                        mitigate, prevent, or cure default or 
                        diminution in the value of the vessel 
                        or facility;
                          (viii) restructuring, renegotiating, 
                        or otherwise agreeing to alter the 
                        terms and conditions of the extension 
                        of credit or security interest, 
                        exercising forbearance;
                          (ix) exercising other remedies that 
                        may be available under applicable law 
                        for the breach of a term or condition 
                        of the extension of credit or security 
                        agreement; or
                          (x) conducting a removal action under 
                        311(c) of the Federal Water Pollution 
                        Control Act (33 U.S.C. 1321(c)) or 
                        under the direction of an on-scene 
                        coordinator appointed under the 
                        National Contingency Plan, if such 
                        actions do not rise to the level of 
                        participating in management under 
                        subparagraph (A) of this paragraph and 
                        paragraph (26)(A)(vi);
          (39) ``extension of credit'' has the meaning provided 
        in section 101(20)(G)(i) of the Comprehensive 
        Environmental Response, Compensation and Liability Act 
        of 1980 (42 U.S.C. 9601(20)(G)(i));
          (40) ``financial or administrative function'' has the 
        meaning provided in section 101(20)(G)(ii) of the 
        Comprehensive Environmental Response, Compensation and 
        Liability Act of 1980 (42 U.S.C. 9601(20)(G)(ii));
          (41) ``foreclosure'' and ``foreclose'' each has the 
        meaning provided in section 101(20)(G)(iii) of the 
        Comprehensive Environmental Response, Compensation and 
        Liability Act of 1980 (42 U.S.C. 9601(20)(G)(iii));
          (42) ``lender'' has the meaning provided in section 
        101(20)(G)(iv) of the Comprehensive Environmental 
        Response, Compensation and Liability Act of 1980 (42 
        U.S.C. 9601(20)(G)(iv));
          (43) ``operational function'' has the meaning 
        provided in section 101(20)(G)(v) of the Comprehensive 
        Environmental Response, Compensation and Liability Act 
        of 1980 (42 U.S.C. 9601(20)(G)(v)); and
          (44) ``security interest'' has the meaning provided 
        in section 101(20)(G)(vi) of the Comprehensive 
        Environmental Response, Compensation and Liability Act 
        of 1980 (42 U.S.C. 9601(20)(G)(vi)).

SEC. 1012. USES OF THE FUND.

                            [33 U.S.C. 2712]

  (a) Uses Generally.--The Fund shall be available to the 
President for--
          (1) the payment of removal costs, including the costs 
        of monitoring removal actions, determined by the 
        President to be consistent with the National 
        Contingency Plan--
                  (A) by Federal authorities; or
                  (B) by a Governor or designated State 
                official under subsection (d);
          (2) the payment of costs incurred by Federal, State, 
        or Indian tribe trustees in carrying out their 
        functions under section 1006 for assessing natural 
        resource damages and for developing and implementing 
        plans for the restoration, rehabilitation, replacement, 
        or acquisition of the equivalent of damaged resources 
        determined by the President to be consistent with the 
        National Contingency Plan;
          (3) the payment of removal costs determined by the 
        President to be consistent with the National 
        Contingency Plan as a result of, and damages resulting 
        from, a discharge, or a substantial threat of a 
        discharge, of oil from a foreign offshore unit;
          (4) the payment of claims in accordance with section 
        1013 for uncompensated removal costs determined by the 
        President to be consistent with the National 
        Contingency Plan or uncompensated damages;
          (5) the payment of Federal administrative, 
        operational, and personnel costs and expenses 
        reasonably necessary for and incidental to the 
        implementation, administration, and enforcement of this 
        Act (including, but not limited to, sections 
        1004(d)(2), 1006(e), 4107, 4110, 4111, 4112, 4117, 
        5006, 8103, and title VII) and subsections (b), (c), 
        (d), (j), and (l) of section 311 of the Federal Water 
        Pollution Control Act (33 U.S.C. 1321), as amended by 
        this Act, with respect to prevention, removal, and 
        enforcement related to oil discharges, provided that--
                  (A) not more than $25,000,000 in each fiscal 
                year shall be available to the Secretary for 
                operating expenses incurred by the Coast Guard;
                  (B) not more than $15,000,000 in each fiscal 
                year shall be available to the Under Secretary 
                of Commerce for Oceans and Atmosphere for 
                expenses incurred by, and activities related 
                to, response and damage assessment capabilities 
                of the National Oceanic and Atmospheric 
                Administration;
                  [(B)] (C) not more than $30,000,000 each year 
                through the end of fiscal year 1992 shall be 
                available to establish the National Response 
                System under section 311(j) of the Federal 
                Water Pollution Control Act, as amended by this 
                Act, including the purchase and prepositioning 
                of oil spill removal equipment; and
                  [(C)] (D) not more than $27,250,000 in each 
                fiscal year shall be available to carry out 
                title VII of this Act; and
          (6) the making of loans pursuant to the program 
        established under section 1013(f).
  (b) Defense to Liability for Fund.--The Fund shall not be 
available to pay any claim for removal costs or damages to a 
particular claimant, to the extent that the incident, removal 
costs, or damages are caused by the gross negligence or willful 
misconduct of that claimant.
  (c) Obligation of Fund by Federal Officials.--The President 
may promulgate regulations designating one or more Federal 
officials who may obligate money in accordance with subsection 
(a).
  (d) Access to Fund by State officials.--
          (1) Immediate removal.--In accordance with 
        regulations promulgated under this section, the 
        President, upon the request of the Governor of a State 
        or pursuant to an agreement with a State under 
        paragraph (2), may obligate the Fund for payment in an 
        amount not to exceed $250,000 for removal costs 
        consistent with the National Contingency Plan required 
        for the immediate removal of a discharge, or the 
        mitigation or prevention of a substantial threat of a 
        discharge, of oil.
          (2) Agreements.--
                  (A) In general.--The President shall enter 
                into an agreement with the Governor of any 
                interested State to establish procedures under 
                which the Governor or a designated State 
                official may receive payments from the Fund for 
                removal costs pursuant to paragraph (1).
                  (B) Terms.--Agreements under this paragraph--
                          (i) may include such terms and 
                        conditions as may be agreed upon by the 
                        President and the Governor of a State;
                          (ii) shall provide for political 
                        subdivisions of the State to receive 
                        payments for reasonable removal costs; 
                        and
                          (iii) may authorize advance payments 
                        from the Fund to facilitate removal 
                        efforts.
  (e) Regulations.--The President shall--
          (1) not later than 6 months after the date of the 
        enactment of this Act, publish proposed regulations 
        detailing the manner in which the authority to obligate 
        the Fund and to enter into agreements under this 
        subsection shall be exercised; and
          (2) not later than 3 months after the close of the 
        comment period for such proposed regulations, 
        promulgate final regulations for that purpose.
  (f) Rights of Subrogation.--Payment of any claim or 
obligation by the Fund under this Act shall be subject to the 
United States Government acquiring by subrogation all rights of 
the claimant or State to recover from the responsible party.
  [(g) Audits.--The Comptroller General shall audit all 
payments, obligations, reimbursements, and other uses of the 
Fund, to assure that the Fund is being properly administered 
and that claims are being appropriately and expeditiously 
considered. The Comptroller General shall submit to the 
Congress an interim report one year after the date of the 
enactment of this Act. The Comptroller General shall thereafter 
audit the Fund as is appropriate. Each Federal agency shall 
cooperate with the Comptroller General in carrying out this 
subsection.]
  (g) Audits.--
          (1) In general.--The Comptroller General of the 
        United States shall conduct an audit, including a 
        detailed accounting of each disbursement from the Fund 
        in excess of $500,000 that is--
                  (A) disbursed by the National Pollution Fund 
                Center; and
                  (B) administered and managed by the receiving 
                Federal agencies, including final payments made 
                to agencies and contractors and, to the extent 
                possible, subcontractors.
          (2) Frequency.--The audits shall be conducted--
                  (A) at least once every 3 years after the 
                date of enactment of the Coast Guard 
                Authorization Act for Fiscal Years 2010 and 
                2011 until 2016; and
                  (B) at least once every 5 years after the 
                last audit conducted under subparagraph (A).
          (3) Submission of results.--The Comptroller shall 
        submit the results of each audit conducted under 
        paragraph (1) to--
                  (A) the Senate Committee on Commerce, 
                Science, and Transportation;
                  (B) the House of Representatives Committee on 
                Transportation and Infrastructure; and
                  (C) the Secretary or Administrator of each 
                agency referred to in paragraph (1)(B).
  (h) Reports.--
          (1) In general.--Within one year after the date of 
        enactment of the Coast Guard Authorization Act for 
        Fiscal Years 2010 and 2011, and annually thereafter, 
        the President, through the Secretary of the Department 
        in which the Coast Guard is operating, shall--
                  (A) provide a report on disbursements for the 
                preceding fiscal year from the Fund, regardless 
                of whether those disbursements were subject to 
                annual appropriations, to--
                          (i) the Senate Committee on Commerce, 
                        Science, and Transportation; and
                          (ii) the House of Representatives 
                        Committee on Transportation and 
                        Infrastructure: and
                  (B) make the report available to the public 
                on the National Pollution Funds Center Internet 
                website.
          (2) Contents.--The report shall include--
                  (A) a list of each disbursement of $250,000 
                or more from the Fund during the preceding 
                fiscal year; and
                  (B) a description of how each such use of the 
                Fund meets the requirements of subsection (a).
          (3) Agency recordkeeping.--Each Federal agency that 
        receives amounts from the Fund shall maintain records 
        describing the purposes for which such funds were 
        obligated or expended in such detail as the Secretary 
        may require for purposes of the report required under 
        paragraph (1).
  (i) Authorizations.--There are authorized to be appropriated 
such sums as may be necessary to carry out subsections (g) and 
(h).
  [(h)] (j) Period of Limitations for Claims.--
          (1) Removal costs.--No claim may be presented under 
        this title for recovery of removal costs for an 
        incident unless the claim is presented within 6 years 
        after the date of completion of all removal actions for 
        that incident.
          (2) Damages.--No claim may be presented under this 
        section for recovery of damages unless the claim is 
        presented within 3 years after the date on which the 
        injury and its connection with the discharge in 
        question were reasonably discoverable with the exercise 
        of due care, or in the case of natural resource damages 
        under section 1002(b)(2)(A), if later, the date of 
        completion of the natural resources damage assessment 
        under section 1006(e).
          (3) Minors and incompetents.--The time limitations 
        contained in this subsection shall not begin to run--
                  (A) against a minor until the earlier of the 
                date when such minor reaches 18 years of age or 
                the date on which a legal representative is 
                duly appointed for the minor, or
                  (B) against an incompetent person until the 
                earlier of the date on which such incompetent's 
                incompetency ends or the date on which a legal 
                representative is duly appointed for the 
                incompetent.
  [(i)] (k) Limitation on Payment for Same Costs.--In any case 
in which the President has paid an amount from the Fund for any 
removal costs or damages specified under subsection (a), no 
other claim may be paid from the Fund for the same removal 
costs or damages.
  [(j)] (l) Obligation in Accordance with Plan.--
          (1) In general.--Except as provided in paragraph (2), 
        amounts may be obligated from the Fund for the 
        restoration, rehabilitation, replacement, or 
        acquisition of natural resources only in accordance 
        with a plan adopted under section 1006(c).
          (2) Exception.--Paragraph (1) shall not apply in a 
        situation requiring action to avoid irreversible loss 
        of natural resources or to prevent or reduce any 
        continuing danger to natural resources or similar need 
        for emergency action.
  [(k)] (m) Preference for Private Persons in Area Affected by 
Discharge.--
          (1) In general.--In the expenditure of Federal funds 
        for removal of oil, including for distribution of 
        supplies, construction, and other reasonable and 
        appropriate activities, under a contract or agreement 
        with a private person, preference shall be given, to 
        the extent feasible and practicable, to private persons 
        residing or doing business primarily in the area 
        affected by the discharge of oil.
          (2) Limitation.--This subsection shall not be 
        considered to restrict the use of Department of Defense 
        resources.

SEC. 1016. FINANCIAL RESPONSIBILITY.

                            [33 U.S.C. 2716]

  (a) Requirement.--The responsible party for--
          (1) any vessel over 300 gross tons (except a non-
        self-propelled vessel that does not carry oil as cargo 
        or fuel) using any place subject to the jurisdiction of 
        the United States; [or]
          (2) any vessel using the waters of the exclusive 
        economic zone to transship or lighter oil destined for 
        a place subject to the jurisdiction of the United 
        States; or
          (3) any tank vessel over 100 gross tons (except a 
        non-self-propelled vessel that does not carry oil as 
        cargo) using any place subject to the jurisdiction of 
        the United States;
shall establish and maintain, in accordance with regulations 
promulgated by the Secretary, evidence of financial 
responsibility sufficient to meet the maximum amount of 
liability to which the responsible party could be subjected 
under section 1004(a) or (d) of this Act, in a case where the 
responsible party would be entitled to limit liability under 
that section. If the responsible party owns or operates more 
than one vessel, evidence of financial responsibility need be 
established only to meet the amount of the maximum liability 
applicable to the vessel having the greatest maximum liability.
  (b) Sanctions.--
          (1) Withholding clearance.--The Secretary of the 
        Treasury shall withhold or revoke the clearance 
        required by section 4197 of the Revised Statutes of the 
        United States of any vessel subject to this section 
        that does not have the evidence of financial 
        responsibility required for the vessel under this 
        section.
          (2) Denying entry to or detaining vessels.--The 
        Secretary may--
                  (A) deny entry to any vessel to any place in 
                the United States, or to the navigable waters, 
                or
                  (B) detain at the place, any vessel that, 
                upon request, does not produce the evidence of 
                financial responsibility required for the 
                vessel under this section.
          (3) Seizure of vessel.--Any vessel subject to the 
        requirements of this section which is found in the 
        navigable waters without the necessary evidence of 
        financial responsibility for the vessel shall be 
        subject to seizure by and forfeiture to the United 
        States.
  (c) Offshore Facilities.--
          (1) In general.--
                  (A) Evidence of financial responsibility 
                required.--Except as provided in paragraph (2), 
                a responsible party with respect to an offshore 
                facility that--
                          (i)(I) is located seaward of the line 
                        of ordinary low water along that 
                        portion of the coast that is in direct 
                        contact with the open sea and the line 
                        marking the seaward limit of inland 
                        waters; or
                          (II) is located in coastal inland 
                        waters, such as bays or estuaries, 
                        seaward of the line of ordinary low 
                        water along that portion of the coast 
                        that is not in direct contact with the 
                        open sea;
                          (ii) is used for exploring for, 
                        drilling for, producing, or 
                        transporting oil from facilities 
                        engaged in oil exploration, drilling, 
                        or production; and
                          (iii) has a worst-case oil spill 
                        discharge potential of more than 1,000 
                        barrels of oil (or a lesser amount if 
                        the President determines that the risks 
                        posed by such facility justify it), 
                        shall establish and maintain evidence 
                        of financial responsibility in the 
                        amount required under subparagraph (B) 
                        or (C), as applicable.
                  (B) Amount required generally.--Except as 
                provided in subparagraph (C), the amount of 
                financial responsibility for offshore 
                facilities that meet the criteria of 
                subparagraph (A) is--
                          (i) $35,000,000 for an offshore 
                        facility located seaward of the seaward 
                        boundary of a State; or
                          (ii) $10,000,000 for an offshore 
                        facility located landward of the 
                        seaward boundary of a State.
                  (C) Greater amount.--If the President 
                determines that an amount of financial 
                responsibility for a responsible party greater 
                than the amount required by subparagraph (B) is 
                justified based on the relative operational, 
                environmental, human health, and other risks 
                posed by the quantity or quality of oil that is 
                explored for, drilled for, produced, or 
                transported by the responsible party, the 
                evidence of financial responsibility required 
                shall be for an amount determined by the 
                President not exceeding $150,000,000.
                  (D) Multiple facilities.--In a case in which 
                a person is a responsible party for more than 
                one facility subject to this subsection, 
                evidence of financial responsibility need be 
                established only to meet the amount applicable 
                to the facility having the greatest financial 
                responsibility requirement under this 
                subsection.
                  (E) Definition.--For the purpose of this 
                paragraph, the seaward boundary of a State 
                shall be determined in accordance with section 
                2(b) of the Submerged Lands Act (43 U.S.C. 
                1301(b)).
          (2) Deepwater ports.--Each responsible party with 
        respect to a deepwater port shall establish and 
        maintain evidence of financial responsibility 
        sufficient to meet the maximum amount of liability to 
        which the responsible party could be subjected under 
        section 1004(a) of this Act in a case where the 
        responsible party would be entitled to limit liability 
        under that section. If the Secretary exercises the 
        authority under section 1004(d)(2) to lower the limit 
        of liability for deepwater ports, the responsible party 
        shall establish and maintain evidence of financial 
        responsibility sufficient to meet the maximum amount of 
        liability so established. In a case in which a person 
        is the responsible party for more than one deepwater 
        port, evidence of financial responsibility need be 
        established only to meet the maximum liability 
        applicable to the deepwater port having the greatest 
        maximum liability.
  (d) [Not enacted]
  (e) Methods of Financial Responsibility.--Financial 
responsibility under this section may be established by any 
one, or by any combination, of the following methods which the 
Secretary (in the case of a vessel) or the President (in the 
case of a facility) determines to be acceptable: evidence of 
insurance, surety bond, guarantee, letter of credit, 
qualification as a self-insurer, or other evidence of financial 
responsibility. Any bond filed shall be issued by a bonding 
company authorized to do business in the United States. In 
promulgating requirements under this section, the Secretary or 
the President, as appropriate, may specify policy or other 
contractual terms, conditions, or defenses which are necessary, 
or which are unacceptable, in establishing evidence of 
financial responsibility to effectuate the purposes of this 
Act.
  (f) Claims Against Guarantor.--
          (1) In general.--Subject to paragraph (2), a claim 
        for which liability may be established under section 
        1002 may be asserted directly against any guarantor 
        providing evidence of financial responsibility for a 
        responsible party liable under that section for removal 
        costs and damages to which the claim pertains. In 
        defending against such a claim, the guarantor may 
        invoke--
                  (A) all rights and defenses which would be 
                available to the responsible party under this 
                Act;
                  (B) any defense authorized under subsection 
                (e); and
                  (C) the defense that the incident was caused 
                by the willful misconduct of the responsible 
                party.
        The guarantor may not invoke any other defense that 
        might be available in proceedings brought by the 
        responsible party against the guarantor.
          (2) Further requirement.--A claim may be asserted 
        pursuant to paragraph (1) directly against a guarantor 
        providing evidence of financial responsibility under 
        subsection (c)(1) with respect to an offshore facility 
        only if--
                  (A) the responsible party for whom evidence 
                of financial responsibility has been provided 
                has denied or failed to pay a claim under this 
                Act on the basis of being insolvent, as defined 
                under section 101(32) of title 11, United 
                States Code, and applying generally accepted 
                accounting principles;
                  (B) the responsible party for whom evidence 
                of financial responsibility has been provided 
                has filed a petition for bankruptcy under title 
                11, United States Code; or
                  (C) the claim is asserted by the United 
                States for removal costs and damages or for 
                compensation paid by the Fund under this Act, 
                including costs incurred by the Fund for 
                processing compensation claims.
          (3) Rulemaking authority.--Not later than 1 year 
        after the date of enactment of this paragraph, the 
        President shall promulgate regulations to establish a 
        process for implementing paragraph (2) in a manner that 
        will allow for the orderly and expeditious presentation 
        and resolution of claims and effectuate the purposes of 
        this Act.
  (g) Limitation on Guarantor's Liability.--Nothing in this Act 
shall impose liability with respect to an incident on any 
guarantor for damages or removal costs which exceed, in the 
aggregate, the amount of financial responsibility which that 
guarantor has provided for a responsible party pursuant to this 
section. The total liability of the guarantor on direct action 
for claims brought under this Act with respect to an incident 
shall be limited to that amount.
  (h) Continuation of Regulations.--Any regulation relating to 
financial responsibility, which has been issued pursuant to any 
provision of law repealed or superseded by this Act, and which 
is in effect on the date immediately preceding the effective 
date of this Act, is deemed and shall be construed to be a 
regulation issued pursuant to this section. Such a regulation 
shall remain in full force and effect unless and until 
superseded by a new regulation issued under this section.
  (i) Unified Certificate.--The Secretary may issue a single 
unified certificate of financial responsibility for purposes of 
this Act and any other law.

         TITLE 37. PAY AND ALLOWANCES OF THE UNIFORMED SERVICES

                       CHAPTER 19. ADMINISTRATION

1007. Deductions from pay

  (a) The pay of an officer of an armed force may be withheld, 
under section 5512 of title 5, only for an indebtedness to the 
United States admitted by the officer or shown by the judgment 
of a court, or upon a special order issued in the discretion of 
the Secretary of Defense (or the Secretary of Homeland 
Security, in the case of an officer of the Coast Guard when the 
Coast Guard is not operating as a service in the Navy), or upon 
the denial of relief of an officer pursuant to section 3527 of 
title 31.
  (b) An amount due the United States from an enlisted member 
of the Army or the Air Force for articles sold to him on credit 
under section 4621(a)(1) or 9621(a)(1) of title 10, as the case 
may be, shall be deducted from the next pay due him after the 
sale is reported.
  (c)(1) Under regulations prescribed by the Secretary 
concerned, an amount that a member of the uniformed services is 
administratively determined to owe the United States or any of 
its instrumentalities may be deducted from the member's pay in 
monthly installments.
  (2) After the deduction of pay forfeited by the sentence of a 
court-martial, if any, or otherwise authorized by law to be 
withheld, the deductions authorized by this section may not 
reduce the pay actually received by a member of the uniformed 
services for any month to less than one-third of the member's 
pay for that month.
  (3) If the indebtedness of a member of the uniformed services 
to the United States is due to the overpayment of pay or 
allowances to the member through no fault of the member, the 
amount of the overpayment shall be recovered in monthly 
installments. The amount deducted from the pay of the member 
for a month to recover the overpayment amount may not exceed 20 
percent of the member's pay for that month unless the member 
requests or consents to collection of the overpayment at an 
accelerated rate.
  (4) If a member of the uniformed services is injured or 
wounded under the circumstances described in section 
310(a)(2)(C) of this title or, while in the line of duty, 
incurs a wound, injury, or illness in a combat operation or 
combat zone designated by the Secretary of Defense, any 
overpayment of pay or allowances made to the member while the 
member recovers from the wound, injury, or illness may not be 
deducted from the member's pay until--
          (A) the end of the 90-day period beginning on the 
        date on which the member is notified of the 
        overpayment; or
          (B) such earlier date as may be requested or agreed 
        to by the member.
  (d) Subject to subsection (c), an amount due the United 
States from an enlisted member of the Army or the Air Force may 
be deducted from his pay on final statement, or from his 
savings on his clothing allowance.
  (e) The amount of any damage, or cost of repairs, to arms or 
equipment caused by the abuse or negligence of a member of the 
Army, Navy, Air Force, or Marine Corps, as the case may be, who 
had the care of, or was using, the property when it was 
damaged, shall be deducted from his pay.
  (f) If, upon final settlement of the accounts of an officer 
of the Army or the Air Force charged with the issue of an 
article of military supply, there is a deficiency of that 
article, or if an article of military supply with whose issue 
an officer is charged is damaged, the value of the lost article 
or the amount of the damage shall be charged against the 
officer and deducted from his monthly pay, unless he shows to 
the satisfaction of the Secretary of the Army or the Secretary 
of the Air Force, as the case may be, by one or more affidavits 
setting forth the circumstances, that he was not at fault.
  (g) An amount due the United States from an officer of the 
Army or the Air Force for rations bought on credit, and for 
articles bought on credit under section 4621(a)(1) or 
9621(a)(1) of title 10, shall be deducted from the next pay due 
that officer after the sale is reported.
  (h)(1) Upon request by a service relief society and subject 
to paragraph (2), an amount owed by a member of the uniformed 
services to the relief society may be deducted from the pay on 
final statement of such member and paid to that relief society.
  (2) An amount may not be deducted under paragraph (1) from 
the pay of a member unless the Secretary concerned makes a 
determination of the amount owed in accordance with the 
regulations prescribed under subsection (c). Any amount 
determined to be owed to a service relief society under this 
paragraph shall be considered an amount that the member is 
administratively determined to owe the United States under 
subsection (c) and shall be collectible in accordance with such 
subsection.
  (3) The Secretaries concerned shall prescribe regulations to 
carry out this subsection.
  (4) In this subsection, the term ``service relief society'' 
means the Army Emergency Relief, the Air Force Aid Society, the 
Navy Relief Society, or the Coast Guard Mutual Assistance.
  (i)(1) There shall be deducted each month from the pay of 
each enlisted member, warrant officer, and limited duty officer 
of the armed forces on active duty an amount (determined under 
paragraph (3)) not to exceed $1.00.
  (2) Amounts deducted under paragraph (1) shall be deposited 
in the Armed Forces Retirement Home Trust Fund.
  (3) The Secretary of Defense, after consultation with the 
[Armed Forces Retirement Home Board,] Chief Operating Officer 
of the Armed Forces Retirement Home, shall determine from time 
to time the amount to be deducted under paragraph (1) from the 
pay of enlisted members, warrant officers and limited duty 
officers on the basis of the financial needs of the Armed 
Forces Retirement Home. The amount to be deducted may be fixed 
at different amounts on the basis of grade or length of 
service, or both.
  (4) In this subsection, the term ``armed forces'' [does not 
include the Coast Guard when it is not operating as a service 
in the Navy.] has the meaning given such term in section 101(4) 
of title 10.
  (5) This subsection does not apply to an enlisted member, 
warrant officer, or limited duty officer of a reserve 
component.

                           TITLE 46. SHIPPING

                    SUBTITLE II. VESSELS AND SEAMEN

             PART G. MERCHANT SEAMEN PROTECTION AND RELIEF

             CHAPTER 103. FOREIGN AND INTERCOASTAL VOYAGES

                     CHAPTER 105. COASTWISE VOYAGES

                   PART H. IDENTIFICATION OF VESSELS

                 CHAPTER 121. DOCUMENTATION OF VESSELS

         SUBCHAPTER II. ENDORSEMENTS AND SPECIAL DOCUMENTATION

Sec. 12113. Fishery endorsement

  (a) Requirements.--A fishery endorsement may be issued for a 
vessel that--
          (1) satisfies the requirements of section 12103 of 
        this title and, if owned by an entity, the entity 
        satisfies the ownership requirements in subsection (c);
          (2) was built in the United States;
          (3) if rebuilt, was rebuilt in the United States;
          (4) was not forfeited to the United States Government 
        after July 1, 2001, for a breach of the laws of the 
        United States; and
          (5) otherwise qualifies under the laws of the United 
        States to engage in the fisheries.
  (b) Authorized Activity.--
          (1) In general.--Subject to the laws of the United 
        States regulating the fisheries, a vessel for which a 
        fishery endorsement is issued may engage in the 
        fisheries.
          (2) Use by prohibited persons.--A fishery endorsement 
        is invalid immediately if the vessel for which it is 
        issued is used as a fishing vessel while it is 
        chartered or leased to an individual who is not a 
        citizen of the United States or to an entity that is 
        not eligible to own a vessel with a fishery 
        endorsement.
  (c) Ownership Requirements for Entities.--
          (1) In general.--A vessel owned by an entity is 
        eligible for a fishery endorsement only if at least 75 
        percent of the interest in the entity, at each tier of 
        ownership and in the aggregate, is owned and controlled 
        by citizens of the United States.
          (2) Determining 75 percent interest.--In determining 
        whether at least 75 percent of the interest in the 
        entity is owned and controlled by citizens of the 
        United States under paragraph (1), the Secretary shall 
        apply section 50501(d) of this title, except that for 
        this purpose the terms ``control'' or ``controlled''--
                  (A) include the right to--
                          (i) direct the business of the 
                        entity;
                          (ii) limit the actions of or replace 
                        the chief executive officer, a majority 
                        of the board of directors, any general 
                        partner, or any person serving in a 
                        management capacity of the entity; or
                          (iii) direct the transfer, operation, 
                        or manning of a vessel with a fishery 
                        endorsement; but
                  (B) do not include the right to simply 
                participate in the activities under 
                subparagraph (A), or the exercise of rights 
                under loan or mortgage covenants by a mortgagee 
                eligible to be a preferred mortgagee under 
                section 31322(a) of this title, except that a 
                mortgagee not eligible to own a vessel with a 
                fishery endorsement may only operate such a 
                vessel to the extent necessary for the 
                immediate safety of the vessel or for repairs, 
                drydocking, or berthing changes.
          (3) Exceptions.--This subsection does not apply to a 
        vessel when it is engaged in the fisheries in the 
        exclusive economic zone under the authority of the 
        Western Pacific Fishery Management Council established 
        under section 302(a)(1)(H) of the Magnuson-Stevens 
        Fishery Conservation and Management Act (16 U.S.C. 
        1852(a)(1)(H)) or to a purse seine vessel when it is 
        engaged in tuna fishing in the Pacific Ocean outside 
        the exclusive economic zone or pursuant to the South 
        Pacific Regional Fisheries Treaty, provided that the 
        owner of the vessel continues to comply with the 
        eligibility requirements for a fishery endorsement 
        under the Federal law that was in effect on October 1, 
        1998. A fishery endorsement issued pursuant to this 
        paragraph is valid for engaging only in the activities 
        described in this paragraph.
  (d) Requirements Based on Length, Tonnage, or Horsepower.----
          (1) Application.--This subsection applies to a vessel 
        that----
                  (A) is greater than 165 feet in registered 
                length;
                  (B) is more than 750 gross registered tons as 
                measured under chapter 145 of this title or 
                1,900 gross registered tons as measured under 
                chapter 143 of this title; or
                  (C) has an engine or engines capable of 
                producing a total of more than 3,000 shaft 
                horsepower.
          (2) Requirements.--A vessel subject to this 
        subsection is not eligible for a fishery endorsement 
        unless----
                  (A)(i) a certificate of documentation was 
                issued for the vessel and endorsed with a 
                fishery endorsement that was effective on 
                September 25, 1997; and
                  (ii) the vessel is not placed under foreign 
                registry after October 21, 1998; [and]
                  [(iii) if the fishery endorsement is 
                invalidated after October 21, 1998, application 
                is made for a new fishery endorsement within 15 
                business days of the invalidation; or]
                  (B) the owner of the vessel demonstrates to 
                the Secretary that the regional fishery 
                management council of jurisdiction established 
                under section 302(a)(1) of the Magnuson-Stevens 
                Fishery Conservation and Management Act (16 
                U.S.C. 1852(a)(1)) has recommended after 
                October 21, 1998, and the Secretary of Commerce 
                has approved, conservation and management 
                measures in accordance with the American 
                Fisheries Act (Public Law 105-277, div. C, 
                title II) (16 U.S.C. 1851 note) to allow the 
                vessel to be used in fisheries under the 
                council's [authority.] authority; or
                  (C) the vessel is either a rebuilt vessel or 
                a replacement vessel under section 208(g) of 
                the American Fisheries Act (title II of 
                division C of Public Law 105-277; 112 Stat. 
                2681-627) and is eligible for a fishery 
                endorsement under this section.
  (e) Vessels Measuring 100 Feet or Greater.--
          (1) In general.--The Administrator of the Maritime 
        Administration shall administer subsections (c) and (d) 
        with respect to vessels 100 feet or greater in 
        registered length. The owner of each such vessel shall 
        file a statement of citizenship setting forth all 
        relevant facts regarding vessel ownership and control 
        with the Administrator on an annual basis to 
        demonstrate compliance with those provisions.
          (2) Regulations.--Regulations to implement this 
        subsection shall conform to the extent practicable with 
        the regulations establishing the form of citizenship 
        affidavit set forth in part 355 of title 46, Code of 
        Federal Regulations, as in effect on September 25, 
        1997, except that the form of the statement shall be 
        written in a manner to allow the owner of the vessel to 
        satisfy any annual renewal requirements for a 
        certificate of documentation for the vessel and to 
        comply with this subsection and subsections (c) and 
        (d), and shall not be required to be notarized.
          (3) Transfer of ownership.--Transfers of ownership 
        and control of vessels subject to subsection (c) or 
        (d), which are 100 feet or greater in registered 
        length, shall be rigorously scrutinized for violations 
        of those provisions, with particular attention given 
        to--
                  (A) leases, charters, mortgages, financing, 
                and similar arrangements;
                  (B) the control of persons not eligible to 
                own a vessel with a fishery endorsement under 
                subsection (c) or (d), over the management, 
                sales, financing, or other operations of an 
                entity; and
                  (C) contracts involving the purchase over 
                extended periods of time of all, or 
                substantially all, of the living marine 
                resources harvested by a fishing vessel.
  (f) Vessels Measuring Less Than 100 Feet.--The Secretary 
shall establish reasonable and necessary requirements to 
demonstrate compliance with subsections (c) and (d), with 
respect to vessels measuring less than 100 feet in registered 
length, and shall seek to minimize the administrative burden on 
individuals who own and operate those vessels.
  (g) Vessels Purchased Through Fishing Capacity Reduction 
Program.--A vessel purchased by the Secretary of Commerce 
through a fishing capacity reduction program under the 
Magnuson-Stevens Fishery Conservation and Management Act (16 
U.S.C. 1801 et seq.) or section 308 of the Interjurisdictional 
Fisheries Act of 1986 (16 U.S.C. 4107) is not eligible for a 
fishery endorsement, and any fishery endorsement issued for 
that vessel is invalid.
  (h) Revocation of Endorsements.--The Secretary shall revoke 
the fishery endorsement of any vessel subject to subsection (c) 
or (d) whose owner does not comply with those provisions.
  (i) Regulations.--Regulations to implement subsections (c) 
and (d) and sections 12151(c) and 31322(b) of this title shall 
prohibit impermissible transfers of ownership or control, 
specify any transactions that require prior approval of an 
implementing agency, identify transactions that do not require 
prior agency approval, and to the extent practicable, minimize 
disruptions to the commercial fishing industry, to the 
traditional financing arrangements of that industry, and to the 
opportunity to form fishery cooperatives.

                    SUBTITLE III. MARITIME LIABILITY

         CHAPTER 313. COMMERCIAL INSTRUMENTS AND MARITIME LIENS

                         SUBCHAPTER I. GENERAL

31301. Definitions

  In this chapter--
          (1) ``acknowledge'' means making--
                  (A) an acknowledgment or notarization before 
                a notary public or other official authorized by 
                a law of the United States or a State to take 
                acknowledgments of deeds; or
                  (B) a certificate issued under the Hague 
                Convention Abolishing the Requirement of 
                Legalisation for Foreign Public Documents, 
                1961;
          (2) ``district court'' means--
                  (A) a district court of the United States (as 
                defined in section 451 of title 28);
                  (B) the District Court of Guam;
                  (C) the District Court of the Virgin Islands;
                  (D) the District Court for the Northern 
                Mariana Islands;
                  (E) the High Court of American Samoa; and
                  (F) any other court of original jurisdiction 
                of a territory or possession of the United 
                States;
          (3) ``mortgagee'' means--
                  (A) a person to whom property is mortgaged; 
                or
                  (B) when a mortgage on a vessel involves a 
                trust, the trustee that is designated in the 
                trust agreement;
          (4) ``necessaries'' includes repairs, supplies, 
        towage, and the use of a dry dock or marine railway;
          (5) ``preferred maritime lien'' means a maritime lien 
        on a vessel--
                  (A) arising before a preferred mortgage was 
                filed under section 31321 of this title;
                  (B) for damage arising out of maritime tort;
                  (C) for wages of a stevedore when employed 
                directly by a person listed in section 31341 of 
                this title;
                  (D) for wages of the crew of the vessel;
                  (E) for general average; or
                  (F) for salvage, including contract salvage; 
                [and]
          (6) ``preferred mortgage''--
                  (A) means a mortgage that is a preferred 
                mortgage under section 31322 of this title; and
                  (B) also means in sections 31325 and 31326 of 
                this title, a mortgage, hypothecation, or 
                similar charge that is established as a 
                security on a foreign vessel if the mortgage, 
                hypothecation, or similar charge was executed 
                under the laws of the foreign country under 
                whose laws the ownership of the vessel is 
                documented and has been registered under those 
                laws in a public register at the port of 
                registry of the vessel or at a central 
                [office.] office; and
          (7) ``Secretary'' means the Secretary of the 
        Department of Homeland Security, unless otherwise 
        noted.''.

Sec. 31302. Availability of instruments, copies, and information

  The Secretary [of Transportation] shall--
          (1) make any instrument filed or recorded with the 
        Secretary under this chapter available for public 
        inspection;
          (2) on request, provide a copy, including a certified 
        copy, of any instrument made available for public 
        inspection under this chapter; and
          (3) on request, provide a certificate containing 
        information included in an instrument filed or recorded 
        under this chapter.

                           TITLE 46. SHIPPING

                    SUBTITLE III. MARITIME LIABILITY

         CHAPTER 313. COMMERCIAL INSTRUMENTS AND MARITIME LIENS

                         SUBCHAPTER I. GENERAL

                           [46 U.S.C. 31306]

Sec. 31306. Declaration of citizenship

  (a) Except as provided by the Secretary [of Transportation], 
when an instrument transferring an interest in a vessel is 
presented to the Secretary of Transportation for filing or 
recording, the transferee shall file with the instrument a 
declaration, in the form the Secretary may prescribe by 
regulation, stating information about citizenship and other 
information the Secretary may require to show the transaction 
involved does not violate section 56102 or 56103 of this title.
  (b) A declaration under this section filed by a corporation 
must be signed by its president, secretary, treasurer, or other 
official authorized by the corporation to execute the 
declaration.
  (c) Except as provided by the Secretary, an instrument 
transferring an interest in a vessel is not valid against any 
person until the declaration required by this section has been 
filed.
  (d) A person knowingly making a false statement of a material 
fact in a declaration filed under this section shall be fined 
under title 18, imprisoned for not more than 5 years, or both. 
31308. Secretary of Commerce or Transportation as mortgagee
  [When the Secretary of Commerce or Transportation is a 
mortgagee under this chapter, the Secretary] The Secretary of 
Commerce or Transportation, as a mortgagee under this chapter,  
may foreclose on a lien arising from a right established under 
a mortgage under chapter 537 of this title, subject to section 
362(b) of title 11.

                 SUBCHAPTER II. COMMERCIAL INSTRUMENTS

Sec. 31321. Filing, recording, and discharge

  (a)(1) A bill of sale, conveyance, mortgage, assignment, or 
related instrument, whenever made, that includes any part of a 
documented vessel or a vessel for which an application for 
documentation is filed, must be filed with the Secretary [of 
Transportation] to be valid, to the extent the vessel is 
involved, against any person except--
          (A) the grantor, mortgagor, or assignor;
          (B) the heir or devisee of the grantor, mortgagor, or 
        assignor; and
          (C) a person having actual notice of the sale, 
        conveyance, mortgage, assignment, or related 
        instrument.
  (2) Each bill of sale, conveyance, mortgage, assignment, or 
related instrument that is filed in substantial compliance with 
this section is valid against any person from the time it is 
filed with the Secretary.
  (3) The parties to an instrument or an application for 
documentation shall use diligence to ensure that the parts of 
the instrument or application for which they are responsible 
are in substantial compliance with the filing and documentation 
requirements.
  (4) A bill of sale, conveyance, mortgage, assignment, or 
related instrument may be filed electronically under 
regulations prescribed by the Secretary.
  (b) To be filed, a bill of sale, conveyance, mortgage, 
assignment, or related instrument must--
          (1) identify the vessel;
          (2) state the name and address of each party to the 
        instrument;
          (3) state, if a mortgage, the amount of the direct or 
        contingent obligations (in one or more units of account 
        as agreed to by the parties) that is or may become 
        secured by the mortgage, excluding interest, expenses, 
        and fees;
          (4) state the interest of the grantor, mortgagor, or 
        assignor in the vessel;
          (5) state the interest sold, conveyed, mortgaged, or 
        assigned; and
          (6) be signed and acknowledged.
  (c) If a bill of sale, conveyance, mortgage, assignment, or 
related document is filed that involves a vessel for which an 
application for documentation is filed, and the Secretary 
decides that the vessel cannot be documented by an applicant--
          (1) the Secretary shall send notice of the 
        Secretary's decision, including reasons for the 
        decision, to each interested party to the instrument 
        filed for recording; and
          (2) 90 days after sending the notice as provided 
        under clause (1) of this subsection, the Secretary--
                  (A) may terminate the filing; and
                  (B) may return the instrument filed without 
                recording it under subsection (e) of this 
                section.
  (d) A person may withdraw an application for documentation of 
a vessel for which a mortgage has been filed under this section 
only if the mortgagee consents.
  (e) The Secretary shall--
          (1) record the bills of sale, conveyances, mortgages, 
        assignments, and related instruments of a documented 
        vessel complying with subsection (b) of this section in 
        the order they are filed; and
          (2) maintain appropriate indexes, for use by the 
        public, of instruments filed or recorded, or both.
  (f) On full and final discharge of the indebtedness under a 
mortgage recorded under subsection (e)(1) of this section, a 
mortgagee, on request of the Secretary or mortgagor, shall 
provide the Secretary with an acknowledged certificate of 
discharge of the indebtedness in a form prescribed by the 
Secretary. The Secretary shall record the certificate.
  (g) The mortgage or related instrument of a vessel covered by 
a preferred mortgage under section 31322(d) of this title, that 
is later filed under this section at the time an application 
for documentation is filed, is valid under this section from 
the time the mortgage or instrument representing financing 
became a preferred mortgage under section 31322(d).
  (h) On full and final discharge of the indebtedness under a 
mortgage deemed to be a preferred mortgage under section 
31322(d) of this title, a mortgagee, on request of the 
Secretary, a State, or mortgagor, shall provide the Secretary 
or the State, as appropriate, with an acknowledged certificate 
of discharge of the indebtedness in a form prescribed by the 
Secretary or the State, as applicable. If filed with the 
Secretary, the Secretary shall enter that information in the 
vessel identification system under chapter 125 of this title.

Sec. 31329. Court sales of documented vessels

  (a) A documented vessel may be sold by order of a district 
court only to--
          (1) a person eligible to own a documented vessel 
        under section 12103 of this title; or
          (2) a mortgagee of that vessel.
  (b) When a vessel is sold to a mortgagee not eligible to own 
a documented vessel--
          (1) the vessel must be held by the mortgagee for 
        resale;
          (2) the vessel held by the mortgagee is subject to 
        chapter 563 of this title; and
          (3) the sale of the vessel to the mortgagee is not a 
        sale to a person not a citizen of the United States 
        under section 12132 of this title.
  (c) Unless waived by the Secretary of Transportation, a 
person purchasing a vessel by court order under subsection 
(a)(1) of this section or from a mortgagee under subsection 
(a)(2) of this section must document the vessel under chapter 
121 of this title.
  (d) The vessel may be operated by the mortgagee not eligible 
to own a documented vessel only with the approval of the 
[Secretary.] Secretary of Transportation.
  (e) A sale of a vessel contrary to this section is void.
  (f) This section does not apply to a documented vessel that 
has been operated only for pleasure.

Sec. 31330. Penalties

  (a)(1) A mortgagor shall be fined under title 18, imprisoned 
for not more than 2 years, or both, if the mortgagor--
          (A) with intent to defraud, does not disclose an 
        obligation on a vessel as required by section 31323(a) 
        of this title;
          (B) with intent to defraud, incurs a contractual 
        obligation in violation of section 31323(b) of this 
        title; or
          (C) with intent to hinder or defraud an existing or 
        future creditor of the mortgagor or a lienor of the 
        vessel, files a mortgage with the [Secretary; or] 
        Secretary.
          [(D) with intent to defraud, does not comply with 
        section 31321(h) of this title.]
  (2) A mortgagor is liable to the United States Government for 
a civil penalty of not more than $10,000 if the mortgagor--
          (A) does not disclose an obligation on a vessel as 
        required by section 31323(a) of this title;
          (B) incurs a contractual obligation in violation of 
        section 31323(b) of this title; or
          (C) files with the Secretary a mortgage made not in 
        good [faith; or] faith.
          [(D) does not comply with section 31321(h) of this 
        title.]
  (b) (1) A person that knowingly violates section 31329 of 
this title shall be fined under title 18, imprisoned for not 
more than 3 years, or both.
          (2) A person violating section 31329 of this title is 
        liable to the Government for a civil penalty of not 
        more than $25,000.
          (3) A vessel involved in a violation under section 
        31329 of this title and its equipment may be seized by, 
        and forfeited to, the Government.
  (c) If a person not an individual violates this section, the 
president or chief executive of the person also is subject to 
any penalty provided under this section.

                     SUBCHAPTER III. MARITIME LIENS

Sec. 31343. Recording and discharging notices of claim of maritime lien

  (a) Except as provided under subsection (d) of this section, 
a person claiming a lien on a vessel documented, or for which 
an application for documentation has been filed, under chapter 
121 may record with the Secretary [of Transportation] a notice 
of that person's lien claim on the vessel. To be recordable, 
the notice must--
          (1) state the nature of the lien;
          (2) state the date the lien was established;
          (3) state the amount of the lien;
          (4) state the name and address of the person; and
          (5) be signed and acknowledged.
  (b)(1) The Secretary shall record a notice complying with 
subsection (a) of this section if, when the notice is presented 
to the Secretary for recording, the person having the claim 
files with the notice a declaration stating the following:
          (A) The information in the notice is true and correct 
        to the best of the knowledge, information, and belief 
        of the individual who signed it.
          (B) A copy of the notice, as presented for 
        recordation, has been sent to each of the following:
                  (i) The owner of the vessel.
                  (ii) Each person that recorded under 
                subsection (a) of this section an unexpired 
                notice of a claim of an undischarged lien on 
                the vessel.
                  (iii) The mortgagee of each mortgage filed or 
                recorded under section 31321 of this title that 
                is an undischarged mortgage on the vessel.
  (2) A declaration under this subsection filed by a person 
that is not an individual must be signed by the president, 
member, partner, trustee, or other individual authorized to 
execute the declaration on behalf of the person.
  (c)(1) On full and final discharge of the indebtedness that 
is the basis for a notice of claim of lien recorded under 
subsection (b) of this section, the person having the claim 
shall provide the Secretary with an acknowledged certificate of 
discharge of the indebtedness. The Secretary shall record the 
certificate.
  (2) The district courts of the United States shall have 
jurisdiction over a civil action in Admiralty to declare that a 
vessel is not subject to a lien claimed under subsection (b) of 
this section, or that the vessel is not subject to the notice 
of claim of lien, or both, regardless of the amount in 
controversy or the citizenship of the parties. Venue in such an 
action shall be in the district where the vessel is found or 
where the claimant resides or where the notice of claim of lien 
is recorded. The court may award costs and attorneys fees to 
the prevailing party, unless the court finds that the position 
of the other party was substantially justified or other 
circumstances make an award of costs and attorneys fees unjust. 
The Secretary shall record any such declaratory order.
  (d) A person claiming a lien on a vessel covered by a 
preferred mortgage under section 31322(d) of this title must 
record and discharge the lien as provided by the law of the 
State in which the vessel is titled.
  (e) A notice of claim of lien recorded under subsection (b) 
of this section shall expire 3 years after the date the lien 
was established, as such date is stated in the notice under 
subsection (a) of this section.
  (f) This section does not alter in any respect the law 
pertaining to the establishment of a maritime lien, the remedy 
provided by such a lien, or the defenses thereto, including any 
defense under the doctrine of laches.

              SUBTITLE VII. SECURITY AND DRUG ENFORCEMENT

CHAPTER 701. PORT SECURITY

           *       *       *       *       *       *       *


Sec. 70122. Regulations

  Unless otherwise provided, the Secretary may issue 
regulations necessary to implement this chapter.

                         AMERICAN FISHERIES ACT

SEC. 203. ENFORCEMENT OF STANDARD.

                         [46 U.S.C. 12102 note]

  (a) Effective Date.--The amendments made by section 202 shall 
take effect on October 1, 2001.
  (b) Regulations.--Final regulations to implement this 
subtitle shall be published in the Federal Register by April 1, 
2000. Letter rulings and other interim interpretations about 
the effect of this subtitle and amendments made by this 
subtitle on specific vessels may not be issued prior to the 
publication of such final regulations. The regulations to 
implement this subtitle shall prohibit impermissible transfers 
of ownership or control, specify any transactions which require 
prior approval of an implementing agency, identify transactions 
which do not require prior agency approval, and to the extent 
practicable, minimize disruptions to the commercial fishing 
industry, to the traditional financing arrangements of such 
industry, and to the opportunity to form fishery cooperatives.
  (c) Vessels Measuring 100 Feet and Greater.--(1) The 
Administrator of the Maritime Administration shall administer 
section 12102(c) of title 46, United States Code, as amended by 
this subtitle, with respect to vessels 100 feet or greater in 
registered length. The owner of each such vessel shall file a 
statement of citizenship setting forth all relevant facts 
regarding vessel ownership and control with the Administrator 
of the Maritime Administration on an annual basis to 
demonstrate compliance with such section. Regulations to 
implement this subsection shall conform to the extent 
practicable with the regulations establishing the form of 
citizenship affidavit set forth in part 355 of title 46, Code 
of Federal Regulations, as in effect on September 25, 1997, 
except that the form of the statement under this paragraph 
shall be written in a manner to allow the owner of each such 
vessel to satisfy any annual renewal requirements for a 
certificate of documentation for such vessel and to comply with 
this subsection and section 12102(c) of title 46, United States 
Code, as amended by this Act, and shall not be required to be 
notarized.
  (2) After October 1, 2001, transfers of ownership and control 
of vessels subject to section 12102(c) of title 46, United 
States Code, as amended by this Act, which are 100 feet or 
greater in registered length, shall be rigorously scrutinized 
for violations of such section, with particular attention given 
to leases, charters, mortgages, financing, and similar 
arrangements, to the control of persons not eligible to own a 
vessel with a fishery endorsement under section 12102(c) of 
title 46, United States Code, as amended by this Act, over the 
management, sales, financing, or other operations of an entity, 
and to contracts involving the purchase over extended periods 
of time of all, or substantially all, of the living marine 
resources harvested by a fishing vessel.
  (d) Vessels Measuring Less Than 100 Feet.--The Secretary of 
Transportation shall establish such requirements as are 
reasonable and necessary to demonstrate compliance with section 
12102(c) of title 46, United States Code, as amended by this 
Act, with respect to vessels measuring less than 100 feet in 
registered length, and shall seek to minimize the 
administrative burden on individuals who own and operate such 
vessels.
  (e) Endorsements Revoked.--The Secretary of Transportation 
shall revoke the fishery endorsement of any vessel subject to 
section 12102(c) of title 46, United States Code, as amended by 
this Act, whose owner does not comply with such section.
  (f) [Executed]
  (g) Certain Vessels.--The vessels EXCELLENCE (United States 
official number 967502), GOLDEN ALASKA (United States official 
number 651041) and , OCEAN PHOENIX (United States official 
number 296779), [NORTHERN TRAVELER (United States official 
number 635986), and NORTHERN VOYAGER (United States official 
number 637398) (or a replacement vessel for the NORTHERN 
VOYAGER that complies with paragraphs (2), (5), and (6) of 
section 208(g) of this Act)] shall be exempt from section 
12102(c), as amended by this Act, until such time after October 
1, 2001 as more than 50 percent of the interest owned and 
controlled in the vessel changes, provided that the vessel 
maintains eligibility for a fishery endorsement under the 
federal law that was in effect the day before the date of the 
enactment of this Act, and unless[, in the case of the NORTHERN 
TRAVELER or the NORTHERN VOYAGER (or such replacement), the 
vessel is used in any fishery under the authority of a regional 
fishery management council other than the New England Fishery 
Management Council or Mid-Atlantic Fishery Management Council 
established, respectively, under subparagraphs (A) and (B) of 
section 302(a)(1) of the Magnuson-Stevens Fishery Conservation 
and Management Act (16 U.S.C. 1852(a)(1)(A) and (B)), or in the 
case of the EXCELLENCE, GOLDEN ALASKA, or OCEAN PHOENIX,] the 
vessel is used to harvest any fish.

SEC. 208. ELIGIBLE VESSELS AND PROCESSORS.

                          [112 Stat. 2681-624]

  (a) Catcher Vessels Onshore.--Effective January 1, 2000, only 
catcher vessels which are--
          (1) determined by the Secretary--
                  (A) to have delivered at least 250 metric 
                tons of pollock; or
                  (B) to be less than 60 feet in length overall 
                and to have delivered at least 40 metric tons 
                of pollock,
        for processing by the inshore component in the directed 
        pollock fishery in any one of the years 1996 or 1997, 
        or between January 1, 1998 and September 1, 1998;
          (2) eligible to harvest pollock in the directed 
        pollock fishery under the license limitation program 
        recommended by the North Pacific Council and approved 
        by the Secretary; and
          (3) not listed in subsection (b),
    Lshall be eligible to harvest the directed fishing 
allowance under section 206(b)(1) pursuant to a federal fishing 
permit.
  (b) Catcher Vessels to Catcher/Processors.--Effective January 
1, 1999, only the following catcher vessels shall be eligible 
to harvest the directed fishing allowance under section 
206(b)(2) pursuant to a federal fishing permit:
          (1) AMERICAN CHALLENGER (United States official 
        number 615085);
          (2) FORUM STAR (United States official number 
        925863);
          (3) MUIR MILACH (United States official number 
        611524);
          (4) NEAHKAHNIE (United States official number 
        599534);
          (5) OCEAN HARVESTER (United States official number 
        549892);
          (6) SEA STORM (United States official number 628959);
          (7) TRACY ANNE (United States official number 
        904859); and
          (8) any catcher vessel--
                  (A) determined by the Secretary to have 
                delivered at least 250 metric tons and at least 
                75 percent of the pollock it harvested in the 
                directed pollock fishery in 1997 to catcher/
                processors for processing by the offshore 
                component; and
                  (B) eligible to harvest pollock in the 
                directed pollock fishery under the license 
                limitation program recommended by the North 
                Pacific Council and approved by the Secretary.
  (c) Catcher Vessels to Motherships.--Effective January 1, 
2000, only the following catcher vessels shall be eligible to 
harvest the directed fishing allowance under section 206(b)(3) 
pursuant to a federal fishing permit:
          (1) ALEUTIAN CHALLENGER (United States official 
        number 603820);
          (2) ALYESKA (United States official number 560237);
          (3) AMBER DAWN (United States official number 
        529425);
          (4) AMERICAN BEAUTY (United States official number 
        613847);
          (5) CALIFORNIA HORIZON (United States official number 
        590758);
          (6) MAR-GUN (United States official number 525608);
          (7) MARGARET LYN (United States official number 
        615563);
          (8) MARK I (United States official number 509552);
          (9) MISTY DAWN (United States official number 
        926647);
          (10) NORDIC FURY (United States official number 
        542651);
          (11) OCEAN LEADER (United States official number 
        561518);
          (12) OCEANIC (United States official number 602279);
          (13) PACIFIC ALLIANCE (United States official number 
        612084);
          (14) PACIFIC CHALLENGER (United States official 
        number 518937);
          (15) PACIFIC FURY (United States official number 
        561934);
          (16) PAPADO II (United States official number 
        536161);
          (17) TRAVELER (United States official number 929356);
          (18) VESTERAALEN (United States official number 
        611642);
          (19) WESTERN DAWN (United States official number 
        524423); and
          (20) any vessel--
                  (A) determined by the Secretary to have 
                delivered at least 250 metric tons of pollock 
                for processing by motherships in the offshore 
                component of the directed pollock fishery in 
                any one of the years 1996 or 1997, or between 
                January 1, 1998 and September 1, 1998;
                  (B) eligible to harvest pollock in the 
                directed pollock fishery under the license 
                limitation program recommended by the North 
                Pacific Council and approved by the Secretary; 
                and
                  (C) not listed in subsection (b).
  (d) Motherships.--Effective January 1, 2000, only the 
following motherships shall be eligible to process the directed 
fishing allowance under section 206(b)(3) pursuant to a Federal 
fishing permit:
          (1) EXCELLENCE (United States official number 
        967502);
          (2) GOLDEN ALASKA (United States official number 
        651041); and
          (3) OCEAN PHOENIX (United States official number 
        296779).
  (e) Catcher/Processors.--Effective January 1, 1999, only the 
following catcher/processors shall be eligible to harvest the 
directed fishing allowance under section 206(b)(2) pursuant to 
a Federal fishing permit:
          (1) AMERICAN DYNASTY (United States official number 
        951307);
          (2) KATIE ANN (United States official number 518441);
          (3) AMERICAN TRIUMPH (United States official number 
        646737);
          (4) NORTHERN EAGLE (United States official number 
        506694);
          (5) NORTHERN HAWK (United States official number 
        643771);
          (6) NORTHERN JAEGER (United States official number 
        521069);
          (7) OCEAN ROVER (United States official number 
        552100);
          (8) ALASKA OCEAN (United States official number 
        637856);
          (9) ENDURANCE (United States official number 592206);
          (10) AMERICAN ENTERPRISE (United States official 
        number 594803);
          (11) ISLAND ENTERPRISE (United States official number 
        610290);
          (12) KODIAK ENTERPRISE (United States official number 
        579450);
          (13) SEATTLE ENTERPRISE (United States official 
        number 904767);
          (14) US ENTERPRISE (United States official number 
        921112);
          (15) ARCTIC STORM (United States official number 
        903511);
          (16) ARCTIC FJORD (United States official number 
        940866);
          (17) NORTHERN GLACIER (United States official number 
        663457);
          (18) PACIFIC GLACIER (United States official number 
        933627);
          (19) HIGHLAND LIGHT (United States official number 
        577044);
          (20) STARBOUND (United States official number 
        944658); and
          (21) any catcher/processor not listed in this 
        subsection and determined by the Secretary to have 
        harvested more than 2,000 metric tons of the pollock in 
        the 1997 directed pollock fishery and determined to be 
        eligible to harvest pollock in the directed pollock 
        fishery under the license limitation program 
        recommended by the North Pacific Council and approved 
        by the Secretary, except that catcher/processors 
        eligible under this paragraph shall be prohibited from 
        harvesting in the aggregate a total of more than one-
        half (0.5) of a percent of the pollock apportioned for 
        the directed pollock fishery under section 206(b)(2). 
        Notwithstanding section 213(a), failure to satisfy the 
        requirements of section 4(a) of the Commercial Fishing 
        Industry Vessel Anti-Reflagging Act of 1987 (Public Law 
        100-239; 46 U.S.C. 12108 note) shall not make a 
        catcher/processor listed under this subsection 
        ineligible for a fishery endorsement.
  (f) Shoreside Processors.--(1) Effective January 1, 2000 and 
except as provided in paragraph (2), the catcher vessels 
eligible under subsection (a) may deliver pollock harvested 
from the directed fishing allowance under section 206(b)(1) 
only to--
          (A) shoreside processors (including vessels in a 
        single geographic location in Alaska State waters) 
        determined by the Secretary to have processed more than 
        2,000 metric tons round-weight of pollock in the 
        inshore component of the directed pollock fishery 
        during each of 1996 and 1997; and
          (B) shoreside processors determined by the Secretary 
        to have processed pollock in the inshore component of 
        the directed pollock fishery in 1996 or 1997, but to 
        have processed less than 2,000 metric tons round-weight 
        of such pollock in each year, except that effective 
        January 1, 2000, each such shoreside processor may not 
        process more than 2,000 metric tons round-weight from 
        such directed fishing allowance in any year.
  (2) Upon recommendation by the North Pacific Council, the 
Secretary may approve measures to allow catcher vessels 
eligible under subsection (a) to deliver pollock harvested from 
the directed fishing allowance under section 206(b)(1) to 
shoreside processors not eligible under paragraph (1) if the 
total allowable catch for pollock in the Bering Sea and 
Aleutian Islands Management Area increases by more than 10 
percent above the total allowable catch in such fishery in 
1997, or in the event of the actual total loss or constructive 
total loss of a shoreside processor eligible under paragraph 
(1)(A).
  [(g) Replacement Vessels.--In the event of the actual total 
loss or constructive total loss of a vessel eligible under 
subsections (a), (b), (c), (d), or (e), the owner of such 
vessel may replace such vessel with a vessel which shall be 
eligible in the same manner under that subsection as the 
eligible vessel, provided that--
          [(1) such loss was caused by an act of God, an act of 
        war, a collision, an act or omission of a party other 
        than the owner or agent of the vessel, or any other 
        event not caused by the willful misconduct of the owner 
        or agent;
          [(2) the replacement vessel was built in the United 
        States and if ever rebuilt, was rebuilt in the United 
        States;
          [(3) the fishery endorsement for the replacement 
        vessel is issued within 36 months of the end of the 
        last year in which the eligible vessel harvested or 
        processed pollock in the directed pollock fishery;
          [(4) if the eligible vessel is greater than 165 feet 
        in registered length, of more than 750 gross registered 
        tons, or has engines capable of producing more than 
        3,000 shaft horsepower, the replacement vessel is of 
        the same or lesser registered length, gross registered 
        tons, and shaft horsepower;
          [(5) if the eligible vessel is less than 165 feet in 
        registered length, of fewer than 750 gross registered 
        tons, and has engines incapable of producing less than 
        3,000 shaft horsepower, the replacement vessel is less 
        than each of such thresholds and does not exceed by 
        more than 10 percent the registered length, gross 
        registered tons or shaft horsepower of the eligible 
        vessel; and
          [(6) the replacement vessel otherwise qualifies under 
        federal law for a fishery endorsement, including under 
        section 12102(c) of title 46, United States Code, as 
        amended by this Act.]
  (g) Vessel Rebuilding and Replacement.--
          (1) In general.--
                  (A) Rebuild or replace.--Notwithstanding any 
                limitation to the contrary on replacing, 
                rebuilding, or lengthening vessels or 
                transferring permits or licenses to a 
                replacement vessel contained in sections 679.2 
                and 679.4 of title 50, Code of Federal 
                Regulations, as in effect on the date of 
                enactment of the Coast Guard Authorization Act 
                for Fiscal Years 2010 and 2011 and except as 
                provided in paragraph (4), the owner of a 
                vessel eligible under subsection (a), (b), (c), 
                (d), or (e) (other than paragraph (21)), in 
                order to improve vessel safety and operational 
                efficiencies (including fuel efficiency), may 
                rebuild or replace that vessel (including fuel 
                efficiency) with a vessel documented with a 
                fishery endorsement under section 12113 of 
                title 46, United States Code.
                  (B) Same requirements.--The rebuilt or 
                replacement vessel shall be eligible in the 
                same manner and subject to the same 
                restrictions and limitations under such 
                subsection as the vessel being rebuilt or 
                replaced.
                  (C) Transfer of permits and licenses.--Each 
                fishing permit and license held by the owner of 
                a vessel or vessels to be rebuilt or replaced 
                under subparagraph (A) shall be transferred to 
                the rebuilt or replacement vessel.
          (2) Recommendations of north pacific council.--The 
        North Pacific Council may recommend for approval by the 
        Secretary such conservation and management measures, 
        including size limits and measures to control fishing 
        capacity, in accordance with the Magnuson-Stevens Act 
        as it considers necessary to ensure that this 
        subsection does not diminish the effectiveness of 
        fishery management plans of the Bering Sea and Aleutian 
        Islands Management Area or the Gulf of Alaska.
          (3) Special rule for replacement of certain 
        vessels.--
                  (A) In general.--Notwithstanding the 
                requirements of subsections (b)(2), (c)(1), and 
                (c)(2) of section 12113 of title 46, United 
                States Code, a vessel that is eligible under 
                subsection (a), (b), (c), (d), or (e) (other 
                than paragraph (21)) and that qualifies to be 
                documented with a fishery endorsement pursuant 
                to section 203(g) or 213(g) may be replaced 
                with a replacement vessel under paragraph (1) 
                if the vessel that is replaced is validly 
                documented with a fishery endorsement pursuant 
                to section 203(g) or 213(g) before the 
                replacement vessel is documented with a fishery 
                endorsement under section 12113 of title 46, 
                United States Code.
                  (B) Applicability.--A replacement vessel 
                under subparagraph (A) and its owner and 
                mortgagee are subject to the same limitations 
                under section 203(g) or 213(g) that are 
                applicable to the vessel that has been replaced 
                and its owner and mortgagee.
          (4) Special rules for certain catcher vessels.--
                  (A) In general.--A replacement for a covered 
                vessel described in subparagraph (B) is 
                prohibited from harvesting fish in any fishery 
                (except for the Pacific whiting fishery) 
                managed under the authority of any regional 
                fishery management council (other than the 
                North Pacific Council) established under 
                section 302(a) of the Magnuson-Stevens Act.
                  (B) Covered vessels.--A covered vessel 
                referred to in subparagraph (A) is--
                          (i) a vessel eligible under 
                        subsection (a), (b), or (c) that is 
                        replaced under paragraph (1); or
                          (ii) a vessel eligible under 
                        subsection (a), (b), or (c) that is 
                        rebuilt to increase its registered 
                        length, gross tonnage, or shaft 
                        horsepower.
          (5) Limitation on fishery endorsements.--Any vessel 
        that is replaced under this subsection shall thereafter 
        not be eligible for a fishery endorsement under section 
        12113 of title 46, United States Code, unless that 
        vessel is also a replacement vessel described in 
        paragraph (1).
          (6) Gulf of alaska limitation.--Notwithstanding 
        paragraph (1), the Secretary shall prohibit from 
        participation in the groundfish fisheries of the Gulf 
        of Alaska any vessel that is rebuilt or replaced under 
        this subsection and that exceeds the maximum length 
        overall specified on the license that authorizes 
        fishing for groundfish pursuant to the license 
        limitation program under part 679 of title 50, Code of 
        Federal Regulations, as in effect on the date of 
        enactment of the Coast Guard Authorization Act for 
        Fiscal Years 2010 and 2011.
          (7) Authority of pacific council.--Nothing in this 
        section shall be construed to diminish or otherwise 
        affect the authority of the Pacific Council to 
        recommend to the Secretary conservation and management 
        measures to protect fisheries under its jurisdiction 
        (including the Pacific whiting fishery) and 
        participants in such fisheries from adverse impacts 
        caused by this Act.
  (h) Eligibility During Implementation.--In the event the 
Secretary is unable to make a final determination about the 
eligibility of a vessel under subsection (b)(8) or subsection 
(e)(21) before January 1, 1999, or a vessel or shoreside 
processor under subsection (a), subsection (c)(21), or 
subsection (f) before January 1, 2000, such vessel or shoreside 
processor, upon the filing of an application for eligibility, 
shall be eligible to participate in the directed pollock 
fishery pending final determination by the Secretary with 
respect to such vessel or shoreside processor.
  (i) Eligibility Not a Right.--Eligibility under this section 
shall not be construed--
          (1) to confer any right of compensation, monetary or 
        otherwise, to the owner of any catcher vessel, catcher/
        processor, mothership, or shoreside processor if such 
        eligibility is revoked or limited in any way, including 
        through the revocation or limitation of a fishery 
        endorsement or any federal permit or license;
          (2) to create any right, title, or interest in or to 
        any fish in any fishery; or
          (3) to waive any provision of law otherwise 
        applicable to such catcher vessel, catcher/processor, 
        mothership, or shoreside processor.

SEC. 210. FISHERY COOPERATIVE LIMITATIONS.

                          [112 Stat. 2681-628]

  (a) Public Notice.--(1) Any contract implementing a fishery 
cooperative under section 1 of the Act of June 25, 1934 (15 
U.S.C. 521) in the directed pollock fishery and any material 
modifications to any such contract shall be filed not less than 
30 days prior to the start of fishing under the contract with 
the North Pacific Council and with the Secretary, together with 
a copy of a letter from a party to the contract requesting a 
business review letter on the fishery cooperative from the 
Department of Justice and any response to such request. 
Notwithstanding section 402 of the Magnuson-Stevens Act (16 
U.S.C. 1881a) or any other provision of law, but taking into 
account the interest of parties to any such contract in 
protecting the confidentiality of proprietary information, the 
North Pacific Council and Secretary shall--
          (A) make available to the public such information 
        about the contract, contract modifications, or fishery 
        cooperative the North Pacific Council and Secretary 
        deem appropriate, which at a minimum shall include a 
        list of the parties to the contract, a list of the 
        vessels involved, and the amount of pollock and other 
        fish to be harvested by each party to such contract; 
        and
          (B) make available to the public in such manner as 
        the North Pacific Council and Secretary deem 
        appropriate information about the harvest by vessels 
        under a fishery cooperative of all species (including 
        bycatch) in the directed pollock fishery on a vessel-
        by-vessel basis.
  (b) Catcher Vessels Onshore.--
          (1) Catcher vessel cooperatives.--Effective January 
        1, 2000, upon the filing of a contract implementing a 
        fishery cooperative under subsection (a) which--
                  (A) is signed by the owners of 80 percent or 
                more of the qualified catcher vessels that 
                delivered pollock for processing by a shoreside 
                processor in the directed pollock fishery in 
                the year prior to the year in which the fishery 
                cooperative will be in effect; and
                  (B) specifies, except as provided in 
                paragraph (6), that such catcher vessels will 
                deliver pollock in the directed pollock fishery 
                only to such shoreside processor during the 
                year in which the fishery cooperative will be 
                in effect and that such shoreside processor has 
                agreed to process such pollock,
the Secretary shall allow only such catcher vessels (and 
catcher vessels whose owners voluntarily participate pursuant 
to paragraph (2)) to harvest the aggregate percentage of the 
directed fishing allowance under section 206(b)(1) in the year 
in which the fishery cooperative will be in effect that is 
equivalent to the aggregate total amount of pollock harvested 
by such catcher vessels (and by such catcher vessels whose 
owners voluntarily participate pursuant to paragraph (2)) in 
the directed pollock fishery for processing by the inshore 
component during 1995, 1996, and 1997 relative to the aggregate 
total amount of pollock harvested in the directed pollock 
fishery for processing by the inshore component during such 
years and shall prevent such catcher vessels (and catcher 
vessels whose owners voluntarily participate pursuant to 
paragraph (2)) from harvesting in aggregate in excess of such 
percentage of such directed fishing allowance.
          (2) Voluntary participation.--Any contract 
        implementing a fishery cooperative under paragraph (1) 
        must allow the owners of other qualified catcher 
        vessels to enter into such contract after it is filed 
        and before the calender year in which fishing will 
        begin under the same terms and conditions as the owners 
        of the qualified catcher vessels who entered into such 
        contract upon filing.
          (3) Qualified catcher vessel.--For the purposes of 
        this subsection, a catcher vessel shall be considered a 
        ``qualified catcher vessel'' if, during the year prior 
        to the year in which the fishery cooperative will be in 
        effect, it delivered more pollock to the shoreside 
        processor to which it will deliver pollock under the 
        fishery cooperative in paragraph (1) than to any other 
        shoreside processor.
          (4) Consideration of certain vessels.--Any contract 
        implementing a fishery cooperative under paragraph (1) 
        which has been entered into by the owner of a qualified 
        catcher vessel eligible under section 208(a) that 
        harvested pollock for processing by catcher/processors 
        or motherships in the directed pollock fishery during 
        1995, 1996, and 1997 shall, to the extent practicable, 
        provide fair and equitable terms and conditions for the 
        owner of such qualified catcher vessel.
          (5) Open access.--A catcher vessel eligible under 
        section 208(a) the catch history of which has not been 
        attributed to a fishery cooperative under paragraph (1) 
        may be used to deliver pollock harvested by such vessel 
        from the directed fishing allowance under section 
        206(b)(1) (other than pollock reserved under paragraph 
        (1) for a fishery cooperative) to any of the shoreside 
        processors eligible under section 208(f). A catcher 
        vessel eligible under section 208(a) the catch history 
        of which has been attributed to a fishery cooperative 
        under paragraph (1) during any calendar year may not 
        harvest any pollock apportioned under section 206(b)(1) 
        in such calendar year other than the pollock reserved 
        under paragraph (1) for such fishery cooperative.
          (6) Transfer of cooperative harvest.--A contract 
        implementing a fishery cooperative under paragraph (1) 
        may, notwithstanding the other provisions of this 
        subsection, provide for up to 10 percent of the pollock 
        harvested under such cooperative to be processed by a 
        shoreside processor eligible under section 208(f) other 
        than the shoreside processor to which pollock will be 
        delivered under paragraph (1).
          (7) Fishery cooperative exit provisions.--
                  (A) Fishing allowance determination.--For 
                purposes of determining the aggregate 
                percentage of directed fishing allowances under 
                paragraph (1), when a catcher vessel is removed 
                from the directed pollock fishery, the fishery 
                allowance for pollock for the vessel being 
                removed--
                          (i) shall be based on the catch 
                        history determination for the vessel 
                        made pursuant to section 679.62 of 
                        title 50, Code of Federal Regulations, 
                        as in effect on the date of enactment 
                        of the Coast Guard Authorization Act of 
                        2008; and
                          (ii) shall be assigned, for all 
                        purposes under this title, in the 
                        manner specified by the owner of the 
                        vessel being removed to any other 
                        catcher vessel or among other catcher 
                        vessels participating in the fishery 
                        cooperative if such vessel or vessels 
                        remain in the fishery cooperative for 
                        at least one year after the date on 
                        which the vessel being removed leaves 
                        the directed pollock fishery.
                  (B) Eligibility for fishery endorsement.--
                Except as provided in subparagraph (C), a 
                vessel that is removed pursuant to this 
                paragraph shall be permanently ineligible for a 
                fishery endorsement, and any claim (including 
                relating to catch history) associated with such 
                vessel that could qualify any owner of such 
                vessel for any permit to participate in any 
                fishery within the exclusive economic zone of 
                the United States shall be extinguished, unless 
                such removed vessel is thereafter designated to 
                replace a vessel to be removed pursuant to this 
                paragraph.
                  (C) Limitations on statutory construction.--
                Nothing in this paragraph shall be construed--
                          (i) to make the vessels AJ (United 
                        States official number 905625), DONA 
                        MARTITA (United States official number 
                        651751), NORDIC EXPLORER (United States 
                        official number 678234), and PROVIDIAN 
                        (United States official number 1062183) 
                        ineligible for a fishery endorsement or 
                        any permit necessary to participate in 
                        any fishery under the authority of the 
                        New England Fishery Management Council 
                        or the Mid-Atlantic Fishery Management 
                        Council established, respectively, 
                        under subparagraphs (A) and (B) of 
                        section 302(a)(1) of the Magnuson-
                        Stevens Act; or
                          (ii) to allow the vessels referred to 
                        in clause (i) to participate in any 
                        fishery under the authority of the 
                        Councils referred to in clause (i) in 
                        any manner that is not consistent with 
                        the fishery management plan for the 
                        fishery developed by the Councils under 
                        section 303 of the Magnuson-Stevens 
                        Act.
  (c) Catcher Vessels to Catcher/Processors.--Effective January 
1, 1999, not less than 8.5 percent of the directed fishing 
allowance under section 206(b)(2) shall be available for 
harvest only by the catcher vessels eligible under section 
208(b). The owners of such catcher vessels may participate in a 
fishery cooperative with the owners of the catcher/processors 
eligible under paragraphs (1) through (20) of the section 
208(e). The owners of such catcher vessels may participate in a 
fishery cooperative that will be in effect during 1999 only if 
the contract implementing such cooperative establishes 
penalties to prevent such vessels from exceeding in 1999 the 
traditional levels harvested by such vessels in all other 
fisheries in the exclusive economic zone of the United States.
  (d) Catcher Vessels to Motherships.--
          (1) Processing.--Effective January 1, 2000, the 
        authority in section 1 of the Act of June 25, 1934 (48 
        Stat. 1213 and 1214; 15 U.S.C. 521 et seq.) shall 
        extend to processing by motherships eligible under 
        section 208(d) solely for the purposes of forming or 
        participating in a fishery cooperative in the directed 
        pollock fishery upon the filing of a contract to 
        implement a fishery cooperative under subsection (a) 
        which has been entered into by the owners of 80 percent 
        or more of the catcher vessels eligible under section 
        208(c) for the duration of such contract, provided that 
        such owners agree to the terms of the fishery 
        cooperative involving processing by the motherships.
          (2) Voluntary participation.--Any contract 
        implementing a fishery cooperative described in 
        paragraph (1) must allow the owners of any other 
        catcher vessels eligible under section 208(c) to enter 
        such contract after it is filed and before the calendar 
        year in which fishing will begin under the same terms 
        and conditions as the owners of the catcher vessels who 
        entered into such contract upon filing.
  (e) Excessive Shares.--
          (1) Harvesting.--No particular individual, 
        corporation, or other entity may harvest, through a 
        fishery cooperative or otherwise, a total of more than 
        17.5 percent of the pollock available to be harvested 
        in the directed pollock fishery.
          (2) Processing.--Under the authority of section 
        301(a)(4) of the Magnuson-Stevens Act (16 U.S.C. 
        1851(a)(4)), the North Pacific Council is directed to 
        recommend for approval by the Secretary conservation 
        and management measures to prevent any particular 
        individual or entity from processing an excessive share 
        of the pollock available to be harvested in the 
        directed pollock fishery. In the event the North 
        Pacific Council recommends and the Secretary approves 
        an excessive processing share that is lower than 17.5 
        percent, any individual or entity that previously 
        processed a percentage greater than such share shall be 
        allowed to continue to process such percentage, except 
        that their percentage may not exceed 17.5 percent 
        (excluding pollock processed by catcher/processors that 
        was harvested in the directed pollock fishery by 
        catcher vessels eligible under 208(b)) and shall be 
        reduced if their percentage decreases, until their 
        percentage is below such share. In recommending the 
        excessive processing share, the North Pacific Council 
        shall consider the need of catcher vessels in the 
        directed pollock fishery to have competitive buyers for 
        the pollock harvested by such vessels.
          (3) Review by maritime administration.--At the 
        request of the North Pacific Council or the Secretary, 
        any individual or entity believed by such Council or 
        the Secretary to have exceeded the percentage in either 
        paragraph (1) or (2) shall submit such information to 
        the Administrator of the Maritime Administration as the 
        Administrator deems appropriate to allow the 
        Administrator to determine whether such individual or 
        entity has exceeded either such percentage. The 
        Administrator shall make a finding as soon as 
        practicable upon such request and shall submit such 
        finding to the North Pacific Council and the Secretary. 
        For the purposes of this subsection, any entity in 
        which 10 percent or more of the interest is owned or 
        controlled by another individual or entity shall be 
        considered to be the same entity as the other 
        individual or entity.
  (f) Landing Tax Jurisdiction.--Any contract filed under 
subsection (a) shall include a contract clause under which the 
parties to the contract agree to make payments to the State of 
Alaska for any pollock harvested in the directed pollock 
fishery which is not landed in the State of Alaska, in amounts 
which would otherwise accrue had the pollock been landed in the 
State of Alaska subject to any landing taxes established under 
Alaska law. Failure to include such a contract clause or for 
such amounts to be paid shall result in a revocation of the 
authority to form fishery cooperatives under section 1 of the 
Act of June 25, 1934 (15 U.S.C. 521 et seq.).
  (g) Penalties.--The violation of any of the requirements of 
this section or section 211 shall be considered the commission 
of an act prohibited by section 307 of the Magnuson-Stevens Act 
(16 U.S.C. 1857). In addition to the civil penalties and permit 
sanctions applicable to prohibited acts under section 308 of 
such Act (16 U.S.C. 1858), any person who is found by the 
Secretary, after notice and an opportunity for a hearing in 
accordance with section 554 of title 5, United States Code, to 
have violated a requirement of this section shall be subject to 
the forfeiture to the Secretary of Commerce of any fish 
harvested or processed during the commission of such act.

                                  
