[House Report 119-145]
[From the U.S. Government Publishing Office]
119th Congress } { REPORT
HOUSE OF REPRESENTATIVES
1st Session } { 119-145
======================================================================
MARITIME SUPPLY CHAIN SECURITY ACT
_______
June 6, 2025.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Graves, from the Committee on Transportation and Infrastructure,
submitted the following
R E P O R T
[To accompany H.R. 2390]
[Including cost estimate of the Congressional Budget Office]
The Committee on Transportation and Infrastructure, to whom
was referred the bill (H.R. 2390) to amend title 46, United
States Code, to clarify that port infrastructure development
program funds may be used to replace Chinese port crane
hardware or software, and for other purposes, having considered
the same, reports favorably thereon without amendment and
recommends that the bill do pass.
CONTENTS
Purpose of Legislation........................................... 2
Background and Need for Legislation.............................. 2
Hearings......................................................... 2
Legislative History and Consideration............................ 3
Committee Votes.................................................. 3
Committee Oversight Findings and Recommendations................. 3
New Budget Authority and Tax Expenditures........................ 3
Congressional Budget Office Cost Estimate........................ 3
Performance Goals and Objectives................................. 4
Duplication of Federal Programs.................................. 4
Congressional Earmarks, Limited Tax Benefits, and Limited Tariff
Benefits....................................................... 4
Federal Mandates Statement....................................... 5
Preemption Clarification......................................... 5
Advisory Committee Statement..................................... 5
Applicability to Legislative Branch.............................. 5
Changes in Existing Law Made by the Bill, as Reported............ 5
Purpose of Legislation
The purpose of H.R. 2390 is to amend title 46, United
States Code, to clarify that port infrastructure development
program funds may be used to replace Chinese port crane
hardware or software, and for other purposes.
Background and Need for Legislation
The United States is a maritime nation, with 95 percent of
all cargo entering through the Marine Transportation System
(MTS).\1\ Cargo activity at United States ports accounts for 26
percent of the United States' gross domestic product (GDP),
generating nearly $5.4 trillion in total economic activity, and
supporting 31 million direct and indirect jobs.\2\ To ensure
the uninterrupted operation of the MTS, the Coast Guard is
responsible for the safe operation of United States ports and
waterways.\3\ The United States Maritime Administration (MARAD)
is responsible for the administration of the Port
Infrastructure Development Program (PIDP), a discretionary
grant program that provides awards on a competitive basis to
projects at coastal seaports, inland river ports, and Great
Lakes ports to improve the safety, efficiency, or reliability
of the movement of goods into, out of, around, or within a
port.\4\ Acting as the sole discretionary grant program
dedicated to port infrastructure improvements, PIDP has grown
exponentially over the last several years with the
Infrastructure Investment and Jobs Act (P.L. 117-58) providing
advanced appropriations of $450 million per year through fiscal
year (FY) 2026, which is in addition to annual appropriations
the program receives.\5\ Since its initial round of funding in
FY 2019, PIDP has distributed over $9 billion in grant
awards.\6\
---------------------------------------------------------------------------
\1\U.C. Santa Barbara, the American Presidency Project, Fact Sheet:
Biden-Harris Administration Announces Initiative to Bolster
Cybersecurity of U.S. Ports (Feb. 21, 2024), available at https://
www.presidency.ucsb.edu/documents/fact-sheet-biden-harris-
administration-announces-initiative-bolster-cybersecurity-us-ports.
\2\Id.
\3\U.S. Coast Guard, Ports and Waterways Safety Assessment (PAWSA),
available at https://www.dco.uscg.mil/PAWSA/
#::text=The%20United%20States%20Coast%20Guard,efficient%2C%
20and%20commercially%20viable%20as.
\4\U.S. Maritime Admin., Port Infrastructure Development Program,
available at https://www.maritime.dot.gov/PIDPgrants.
\5\Infrastructute Investment and Jobs Act, Pub. L. No. 117-58, 135
Stat. 429.
\6\U.S. Maritime Admin., PIDP Applicant List, available at https://
www.maritime.dot.gov/grants-finances/federal-grant-assistance/pidp-
applicant-list.
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Up to 80 percent of the ship-to-shore cranes that United
States ports rely on to move cargo from ships are manufactured
in China, presenting serious vulnerabilities to the MTS.\7\
H.R. 2390, as amended, clarifies that PIDP funds can be used to
remove vulnerabilities from Chinese made port equipment,
strengthening operational security at United States ports.
---------------------------------------------------------------------------
\7\Lori Ann LaRocco, A Look Inside the Chinese Cyber Threat at the
Biggest Ports in US, CNBC (Mar. 13, 2024), available at, https://
www.cnbc.com/2024/03/13/a-look-inside-the-true-nature-of-chinese-cyber-
threat-at-us-ports.html.
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Hearings
For the purposes of rule XIII, clause 3(c)(6)(A) of the
119th Congress, the following hearing was used to develop or
consider H.R. 2390:
The Subcommittee on Coast Guard and Maritime Transportation
held a hearing on February 5, 2025, entitled ``America Builds:
Maritime Infrastructure.'' The hearing examined the importance
of domestic ports, infrastructure safety and security issues,
and current funding and investment needs. The subcommittee
received testimony from Mr. Paul Anderson, President and Chief
Executive Officer, Port Tampa Bay, Mr. Joe Rella, President,
St. Johns Ship Building Inc. on behalf of the Shipbuilders
Council of America, Mr. Tome Reynolds, Chief Strategy Officer,
SEASATS on behalf of the Association for Uncrewed Vehicle
Systems International, and Mr. Brian Schoeneman, Political and
Legislative Director, Seafarers International Union of North
America on behalf of USA Maritime.
Legislative History and Consideration
H.R. 2390, the ``Maritime Supply Chain Act'', was
introduced in the United States House of Representatives on
March 26, 2025, by Rep. David Rouzer and referred to the
Committee on Transportation and Infrastructure. Within the
Committee on Transportation and Infrastructure, H.R. 2390 was
referred to the Subcommittee on Coast Guard and Maritime
Transportation. The Subcommittee on Coast Guard and Maritime
Transportation was discharged from further consideration of
H.R. 2390 on April 2, 2025.
The Committee considered H.R. 2390 on April 2, 2025, and
ordered the measure to be reported to the House with a
favorable recommendation, without amendment, by voice vote.
Committee Votes
Clause 3(b) of rule XIII of the Rules of the House of
Representatives requires each committee report to include the
total number of votes cast for and against on each record vote
on a motion to report and on any amendment offered to the
measure or matter, and the names of those members voting for
and against.
No recorded votes were requested for H.R. 2390.
Committee Oversight Findings and Recommendations
With respect to the requirements of clause 3(c)(1) of rule
XIII of the Rules of the House of Representatives, the
Committee's oversight findings and recommendations are
reflected in this report.
New Budget Authority and Tax Expenditures
Clause 3(c)(2) of rule XIII of the Rules of the House of
Representatives does not apply where a cost estimate and
comparison prepared by the Director of the Congressional Budget
Office under section 402 of the Congressional Budget Act of
1974 has been timely submitted prior to the filing of the
report and is included in the report. Such a cost estimate is
included in this report.
Congressional Budget Office Cost Estimate
With respect to the requirement of clause 3(c)(3) of rule
XIII of the Rules of the House of Representatives and section
402 of the Congressional Budget Act of 1974, the Committee has
received the enclosed cost estimate for H.R. 2390 from the
Director of the Congressional Budget Office:
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
H.R. 2390 would clarify that projects to upgrade or replace
cranes that were installed or maintained by the Chinese
government at U.S. ports are eligible for grants under the
Maritime Administration's Port Infrastructure Development
Program (PIDP). Those projects are typically eligible for PIDP
grants under current law. Accordingly, CBO estimates that
enacting H.R. 2390 would not affect the federal budget.
The CBO staff contact for this estimate is Aaron Krupkin.
The estimate was reviewed by H. Samuel Papenfuss, Deputy
Director of Budget Analysis.
Phillip L. Swagel,
Director, Congressional Budget Office.
Performance Goals and Objectives
With respect to the requirement of clause 3(c)(4) of rule
XIII of the Rules of the House of Representatives, the
performance goal and objective of this legislation is to
increase the safety and cyber security of domestic ports by
making funds available to eliminate Chinese software and
hardware form port cranes.
Duplication of Federal Programs
Pursuant to clause 3(c)(5) of rule XIII of the Rules of the
House of Representatives, the Committee finds that no provision
of H.R. 2390 establishes or reauthorizes a program of the
Federal government known to be duplicative of another Federal
program, a program that was included in any report from the
Government Accountability Office to Congress pursuant to
section 21 of Public Law 111-139, or a program related to a
program identified in the most recent Catalog of Federal
Domestic Assistance.
Congressional Earmarks, Limited Tax Benefits,
and Limited Tariff Benefits
In compliance with clause 9 of rule XXI of the Rules of the
House of Representatives, this bill, as reported, contains no
congressional earmarks, limited tax benefits, or limited tariff
benefits as defined in clause 9(e), 9(f), or 9(g) of the rule
XXI.
Federal Mandates Statement
An estimate of Federal mandates prepared by the Director of
the Congressional Budget Office pursuant to section 423 of the
Unfunded Mandates Reform Act was not made available to the
Committee in time for the filing of this report. The Chairman
of the Committee shall cause such estimate to be printed in the
Congressional Record upon its receipt by the Committee.
Preemption Clarification
Section 423 of the Congressional Budget Act of 1974
requires the report of any Committee on a bill or joint
resolution to include a statement on the extent to which the
bill or joint resolution is intended to preempt state, local,
or tribal law. The Committee finds that H.R. 2390 does not
preempt any state, local, or tribal law.
Advisory Committee Statement
No advisory committees within the definition of Section
5(b) of Public Law 92-463 (5 U.S.C. 1004(b)), United States
Code, are created by this legislation.
Applicability to Legislative Branch
The Committee finds that the legislation does not relate to
the terms and conditions of employment or access to public
services or accommodations within the meaning of section
102(b)(3) of the Congressional Accountability Act (Public Law
104-1).
Section-by-Section Analysis of the Legislation
Section 1. Short title
This act may be cited as the ``Maritime Supply Chain
Security Act''.
Section 2. Amendments to clarify that port infrastructure development
program funds may be used to replace Chinese port crane
hardware or software
This section amends Section 54301(a)(3)(A)(ii)(III) of
title 46, United States Code by adding language that allows for
projects to receive Port Infrastructure Development program
(PIDP) funds to improve port resilience, projects to upgrade or
replace port cranes, and port crane hardware and software that
were installed, provided, maintained, controlled, or sponsored
by the People's Republic of China or any of its departments,
ministries, centers, agencies, or instrumentalities.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, 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
matter is printed in italic, existing law in which no change is
proposed is shown in roman):
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, 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
matter is printed in italics, and existing law in which no
change is proposed is shown in roman):
TITLE 46, UNITED STATES CODE
* * * * * * *
SUBTITLE V--MERCHANT MARINE
* * * * * * *
PART C--FINANCIAL ASSISTANCE PROGRAMS
* * * * * * *
CHAPTER 543--PORT INFRASTRUCTURE DEVELOPMENT PROGRAM
* * * * * * *
Sec. 54301. Port infrastructure development program
(a) Port and Intermodal Improvement Program.--
(1) General authority.--Subject to the availability
of appropriations, the Secretary of Transportation
shall make grants, on a competitive basis, to eligible
applicants to assist in funding eligible projects for
the purpose of improving the safety, efficiency, or
reliability of the movement of goods through ports and
intermodal connections to ports.
(2) Eligible applicant.--The Secretary may make a
grant under this subsection or subsection (b) to the
following:
(A) A State.
(B) A political subdivision of a State, or a
local government.
(C) A public agency or publicly chartered
authority established by 1 or more States.
(D) A special purpose district with a
transportation function.
(E) An Indian Tribe (as defined in section 4
of the Indian Self-Determination and Education
Assistance Act (25 U.S.C. 5304), without regard
to capitalization), or a consortium of Indian
Tribes.
(F) A multistate or multijurisdictional group
of entities described in this paragraph.
(G) A lead entity described in subparagraph
(A), (B), (C), (D), (E), or (F) jointly with a
private entity or group of private entities,
including the owners or operators of a
facility, or collection of facilities at a
port.
(3) Eligible projects.--The Secretary may make a
grant under this subsection--
(A) for a project, or package of projects,
that--
(i) is either--
(I) within the boundary of a
port; or
(II) outside the boundary of
a port, but is directly related
to port operations or to an
intermodal connection to a
port; and
(ii) will be used to improve the
safety, efficiency, or reliability of--
(I) the loading and unloading
of goods at the port, such as
for marine terminal equipment;
(II) the movement of goods
into, out of, around, or within
a port, such as for highway or
rail infrastructure, intermodal
facilities, freight intelligent
transportation systems, and
digital infrastructure systems;
(III) operational
improvements, [including
projects to improve port
resilience;] including--
(aa) projects to
improve port
resilience; and
(bb) projects to
upgrade or replace port
cranes or parts of port
cranes (including
hardware and software)
that--
(AA) were
installed or
provided by the
People's
Republic of
China or any
department,
ministry,
center, agency,
or
instrumentality
of the
Government of
the People's
Republic of
China; or
(BB) are
maintained,
controlled, or
sponsored by
the People's
Republic of
China or any
department,
ministry,
center, agency,
or
instrumentality
of the
Government of
the People's
Republic of
China;
(IV) environmental and
emission mitigation measures;
including projects for--
(aa) port
electrification or
electrification master
planning;
(bb) harbor craft or
equipment replacements
or retrofits;
(cc) development of
port or terminal
microgrids;
(dd) providing idling
reduction
infrastructure;
(ee) purchase of
cargo handling
equipment and related
infrastructure;
(ff) worker training
to support
electrification
technology;
(gg) installation of
port bunkering
facilities from
oceangoing vessels for
fuels;
(hh) electric vehicle
charge or hydrogen
refueling
infrastructure for
drayage and medium or
heavy duty trucks and
locomotives that
service the port and
related grid upgrades;
or
(ii) other related
port activities,
including charging
infrastructure,
electric rubber-tired
gantry cranes, and
anti-idling
technologies; or
(V) port and port-related
infrastructure that supports
seafood and seafood-related
businesses, including the
loading and unloading of
commercially harvested fish and
fish products, seafood
processing, cold storage, and
other related infrastructure.
(B) notwithstanding paragraph (6)(A)(v), to
provide financial assistance to 1 or more
projects under subparagraph (A) for development
phase activities, including planning,
feasibility analysis, revenue forecasting,
environmental review, permitting, and
preliminary engineering and design work.
(4) Prohibited uses.--A grant award under this
subsection may not be used--
(A) to finance or refinance the construction,
reconstruction, reconditioning, or purchase of
a vessel that is eligible for such assistance
under chapter 537, unless the Secretary
determines such vessel--
(i) is necessary for a project
described in paragraph (3)(A)(ii)(III)
of this subsection; and
(ii) is not receiving assistance
under chapter 537; or
(B) for any project within a small shipyard
(as defined in section 54101).
(5) Applications and process.--
(A) Applications.--
(i) In general.--To be eligible for a
grant under this subsection or
subsection (b), an eligible applicant
shall submit to the Secretary an
application in such form, at such time,
and containing such information as the
Secretary considers appropriate.
(ii) Ensuring cybersecurity.--If a
covered applicant for a grant under
this subsection is applying to use the
grant to acquire digital infrastructure
or a software component, such applicant
shall--
(I) certify the facility for
which a covered applicant is
applying for a grant has an
approved facility security plan
pursuant to section 70103(c) of
this title that addresses the
cybersecurity risks of such
digital infrastructure or
software component; or
(II) if the approved facility
security plan of a facility for
which a covered applicant is
applying for a grant does not
address such cybersecurity
risks, provide a brief
description in the application
of how such applicant will
address the cybersecurity risks
of such digital infrastructure
or software component.
(iii) Update of facility security
plan.--If the approved facility
security plan required under section
70103(c) of this title of a facility
for which a covered applicant is
applying for a grant under this
subsection does not address the
cybersecurity risks of digital
infrastructure or a software component
to be acquired by such grant and such
applicant provides a brief description
to address such cybersecurity risks
under clause (ii)(II), the covered
applicant shall ensure that such
security plan is updated to address the
cybersecurity risks described in clause
(ii)(II) in the next update required
under paragraph (3)(G) of such section.
(iv) Covered applicant defined.--In
this paragraph, the term ``covered
applicant'' means an applicant under
this subsection that is not otherwise
eligible under subsection (b).
(B) Solicitation process.--Not later than 90
days after the date that amounts are made
available for grants under this subsection or
subsection (b) for a fiscal year, the Secretary
shall solicit grant applications for eligible
projects in accordance with this subsection.
(C) Delayed notice of funding opportunity.--
If the Secretary amends a published
solicitation for grant applications such that
an applicant would need the information
contained in the amendment to draft an
application, other than an amendment of the
amount of grant funding available, the
Secretary shall extend the application deadline
by the number of days between the initial
solicitation and the amendment.
(6) Project selection criteria.--
(A) In general.--The Secretary may select a
project described in paragraph (3) for funding
under this subsection if the Secretary
determines that--
(i) the project improves the safety,
efficiency, or reliability of the
movement of goods through a port or
intermodal connection to a port;
(ii) the project is cost effective
(except in the case of a project
described under subparagraph (D));
(iii) the eligible applicant has
authority to carry out the project;
(iv) the eligible applicant has
sufficient funding available to meet
the matching requirements under
paragraph (8);
(v) the project will be completed
without unreasonable delay; and
(vi) the project cannot be easily and
efficiently completed without Federal
funding or financial assistance
available to the project sponsor.
(B) Additional considerations.--In selecting
projects described in paragraph (3) for funding
under this subsection, the Secretary shall give
substantial weight to--
(i) the utilization of non-Federal
contributions;
(ii) the net benefits of the funds
awarded under this subsection,
considering the cost-benefit analysis
of the project, as applicable (except
in the case of a project described
under subparagraph (D)); and
(iii) a port's increased resilience
as a result of the project.
(C) In general.--In selecting projects
described in paragraph (3), the Maritime
Administrator, in consultation with the
Secretary of Defense, may give priority to
providing funding to strategic seaports in
support of national security requirements.
(D) Noncontiguous states and territories.--
The requirements under subparagraphs (A)(ii)
and (B)(ii) shall not apply in the case of a
project described in paragraph (3) in a
noncontiguous State or territory.
(7) Allocation of funds.--
(A) Geographic distribution.--Not more than
25 percent of the amounts made available for
grants under this subsection for a fiscal year
may be used to make grants for projects in any
1 State.
(B) Small projects.--The Secretary shall
reserve 25 percent of the amounts made
available for grants under this subsection each
fiscal year to make grants for eligible
projects described in subsection (b). The
requirement under paragraph (6)(A)(ii) shall
not apply to grants made under subsection (b).
(C) Development phase activities.--Of the
amounts made available for grants under this
section for a fiscal year--
(i) not more than 10 percent may be
used to make grants for development
phase activities under paragraph
(3)(B); and
(ii) not more than 10 percent may be
used to make grants for development
phase activities under subsection
(b)(5)(A)(ii)(III).
(8) Federal share of total project costs.--
(A) Total project costs.--To be eligible for
a grant under this subsection or subsection
(b), an eligible applicant shall submit to the
Secretary an estimate of the total costs of the
project for which the grant is requested based
on the best available information, including
any available engineering studies, studies of
economic feasibility, environmental analyses,
and information on the expected use of
equipment or facilities.
(B) Federal share.--
(i) In general.--Except as provided
in clause (ii), the Federal share of
the total costs of a project under this
subsection or subsection (b) shall not
exceed 80 percent.
(ii) Rural areas.--The Secretary may
increase the Federal share of costs
above 80 percent for a project for
which a grant is awarded under
subsection (b) or that is located in a
rural area.
(9) Procedural safeguards.--The Secretary shall issue
guidelines to establish appropriate accounting,
reporting, and review procedures for grants made under
this subsection and subsection (b) to ensure that--
(A) grant funds are used for the purposes for
which those funds were made available;
(B) each grantee properly accounts for all
expenditures of grant funds;
(C) grant funds not used for such purposes
and amounts not obligated or expended are
returned; and
(D) grant contracts are approved efficiently
by the Secretary, minimizing delays for minor
adjustments to project scopes and budgets,
including due to inflationary effects on
projects.
(10) Grant conditions.--
(A) In general.--The Secretary shall require
as a condition of making a grant under this
subsection or subsection (b) that a grantee--
(i) maintain such records as the
Secretary considers necessary;
(ii) make the records described in
clause (i) available for review and
audit by the Secretary; and
(iii) periodically report to the
Secretary such information as the
Secretary considers necessary to assess
progress.
(B) Efficient use of non-federal funds.--
(i) In general.--Notwithstanding any
other provision of law and subject to
approval by the Secretary, in the case
of any grant for a project under this
section, during the period beginning on
the date on which the grant recipient
is selected and ending on the date on
which the grant agreement is signed--
(I) the grant recipient may
obligate and expend non-Federal
funds with respect to the
project for which the grant is
provided; and
(II) any non-Federal funds
obligated or expended in
accordance with subclause (I)
shall be credited toward the
non-Federal cost share for the
project for which the grant is
provided.
(ii) Requirements.--
(I) Application.--In order to
obligate and expend non-Federal
funds under clause (i), the
grant recipient shall submit to
the Secretary a request to
obligate and expend non-Federal
funds under that clause,
including--
(aa) a description of
the activities the
grant recipient intends
to fund;
(bb) a justification
for advancing the
activities described in
item (aa), including an
assessment of the
effects to the project
scope, schedule, and
budget if the request
is not approved; and
(cc) the level of
risk of the activities
described in item (aa).
(II) Approval.--The Secretary
shall approve or disapprove
each request submitted under
subclause (I).
(III) Compliance with
applicable requirements.--Any
obligation or expenditure of
non-Federal funds under clause
(i) shall be in compliance with
all applicable requirements,
including any requirements
included in the grant
agreement.
(iii) Effect.--The obligation or
expenditure of any non-Federal funds in
accordance with this subparagraph shall
not--
(I) affect the signing of a
grant agreement or other
applicable grant procedures
with respect to the applicable
grant;
(II) create an obligation on
the part of the Federal
Government to repay any non-
Federal funds if the grant
agreement is not signed; or
(III) affect the ability of
the recipient of the grant to
obligate or expend non-Federal
funds to meet the non-Federal
cost share for the project for
which the grant is provided
after the period described in
clause (i).
(C) Construction, repair, or alteration of
vessels.--With regard to the construction,
repair, or alteration of vessels, the same
requirements of section 117(k) of title 23,
United States Code, shall apply regardless of
whether the location of contract performance is
known when bids for such work are solicited.
(11) Administration.--
(A) Administrative and oversight costs.--The
Secretary may retain not more than 2 percent of
the amounts appropriated for each fiscal year
to make grants for port development under this
section for the administrative and oversight
costs incurred by the Secretary to make grants
for port development under this section.
(B) Availability.--
(i) In general.--Amounts appropriated
to make grants for port development
under this section shall remain
available until expended.
(ii) Unexpended funds.--Amounts
awarded as a grant for port development
under this section that are not
expended by the grantee during the 5-
year period following the date of the
award or that are returned under
paragraph (9)(C) shall remain available
to the Secretary for use for grants
under this subsection in a subsequent
fiscal year. Any such amount may only
be expended to award a grant under the
same subsection of this section under
which the original grant was made.
(12) Definitions.--In this subsection and subsection
(b):
(A) Port.--The term ``port'' includes--
(i) any port on the navigable waters
of the United States; and
(ii) any harbor, marine terminal, or
other shore side facility used
principally for the movement of goods
on inland waters (including the Great
Lakes).
(B) Project.--The term ``project'' includes
construction, reconstruction, environmental
rehabilitation, acquisition of property,
including land related to the project and
improvements to the land, equipment
acquisition, and operational improvements.
(C) Rural area.--The term ``rural area''
means an area that is outside an urbanized
area.
(D) Resilience.--The term ``resilience''
means the ability to anticipate, prepare for,
adapt to, withstand, respond to, and recover
from operational disruptions and sustain
critical operations at ports, including
disruptions caused by natural or manmade
hazards, such as sea level rise, flooding,
earthquakes, hurricanes, tsunami inundation or
other extreme weather events.
(E) Strategic seaport defined.--In this
subsection the term ``strategic seaport'' means
a military port or commercial port that is
subject to a port planning order or Basic
Ordering Agreement (or both) that is projected
to be used for the deployment of forces and
shipment of ammunition or sustainment supplies
in support of military operations.
(b) Assistance for Small Inland River and Coastal Ports and
Terminals.--
(1) In general.--From amounts reserved under
subsection (a)(7)(B), the Secretary, acting through the
Administrator of the Maritime Administration, shall
make grants under this subsection to eligible
applicants for eligible projects at a port, to and from
which the average annual tonnage of cargo for the
immediately preceding 3 calendar years from the time an
application is submitted is less than 8,000,000 short
tons, as determined using United States Army Corps of
Engineers data or data provided by an independent
audit.
(2) Independent audit.--
(A) In general.--If an eligible applicant
provides data by an independent audit for
purposes of paragraph (1), the Secretary shall
use such data to make a tonnage determination
if the Secretary determines that it is
acceptable to use such data instead of using
Corps of Engineers data.
(B) Acceptable use of data.--For purposes of
subparagraph (A), an acceptable use of data
means that the Secretary has determined such
data is a reasonable substitute for Army Corps
data.
(C) Justification.--If the Secretary makes a
determination pursuant to subparagraph (A) that
it is not acceptable to use independent audit
data provided by an eligible applicant, the
Secretary shall provide the eligible applicant
with notification of, and justification for,
such determination.
(3) Tonnage determination.--In making a determination
of the average annual tonnage of cargo using Corps of
Engineers data for purposes of evaluating an
application of an eligible applicant pursuant to
paragraph (1), the Secretary shall use data that is
specific to the eligible applicant.
(4) Awards.--In providing assistance under this
subsection, the Secretary shall--
(A) take into account--
(i) the economic advantage and the
contribution to freight transportation
at a port; and
(ii) the competitive disadvantage of
such a port;
(B) not make more than 1 award per applicant
under this subsection for each fiscal year
appropriation; and
(C) take into consideration the degree to
which a project would promote the enhancement
and efficiencies of a port.
(5) Use of funds.--
(A) In general.--Assistance provided under
this subsection may be used for a project
that--
(i) is--
(I) within the boundary of a
port; or
(II) outside the boundary of
a port, but is directly related
to port operations or to an
intermodal connection to a
port; and
(ii) for--
(I) making capital
improvements, including to
piers, wharves, docks,
terminals, and similar
structures used principally for
the movement of goods;
(II) acquiring, improving,
repairing, or maintaining
transportation or physical
infrastructure, buildings, or
equipment;
(III) performing development
phase activities described in
subsection (a)(3)(B) related to
carrying out an activity
described in this clause; and
(IV) otherwise fulfilling the
purposes for which such
assistance is provided.
(B) Acquisition methods.--The Secretary may
not require as a condition of issuing a grant
under this subsection--
(i) direct ownership of either a
facility or equipment to be procured
using funds awarded under this
subsection; or
(ii) that equipment procured using
such funds be new.
(6) Prohibited uses.--Funds provided under this
subsection may not be used for--
(A) projects conducted on property outside
the boundary of a port unless such property is
directly related to port operations or to an
intermodal connection to a port;
(B) any single grant award more than 10
percent of total allocation of funds to carry
out this subsection per fiscal year
appropriation; or
(C) activities, including channel
improvements or harbor deepening that is part
of a Federal channel or an access channel
associated with a Federal channel, authorized,
as of the date of the application for
assistance under this subsection, to be carried
out by of the United States Army Corps of
Engineers.
(7) Matching requirements.--
(A) In general.--Any costs of the project to
be paid by the recipient's matching share
pursuant to subsection (a)(8)(B) may--
(i) be incurred prior to the date on
which assistance is provided; and
(ii) include a loan agreement, a
commitment from investors, cash on
balance sheet, or other contributions
determined acceptable by the Secretary.
(B) Determination of effectiveness.--In
determining whether a project meets the
criteria under clauses (i), (iii), (iv), (v),
and (vi) of subsection (a)(6)(A), the Secretary
shall accept documentation used to obtain a
commitment of the matching funds covered by
this paragraph, including feasibility studies,
business plans, investor prospectuses, loan
applications, or similar documentation.
(c) Additional Authority of the Secretary.--In carrying out
this section, the Secretary may--
(1) coordinate with other Federal agencies to
expedite the process established under the National
Environmental Policy Act of 1969 (42 U.S.C. 4321 et
seq.) for the improvement of port facilities to improve
the efficiency of the transportation system, to
increase port security, or to provide greater access to
port facilities;
(2) seek to coordinate all reviews or requirements
with appropriate Federal, State, and local agencies;
and
(3) in addition to any financial assistance provided
under subsection (a) or subsection (b), provide such
technical assistance to any eligible applicants as
described in subsection (a)(2).
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