Division C — Department of Energy National Security Authorizations and Other Authorizations
DIVISION C Department of Energy National Security Authorizations and Other Authorizations
TITLE XXXI Department of Energy National Security Programs
Subtitle A National Security Programs and Authorizations
SEC. 3102. Defense Environmental Cleanup.
SEC. 3103. Other Defense Activities.
SEC. 3104. Nuclear Energy.
Subtitle B Nuclear Weapons Stockpile Matters
SEC. 3111. W93 Nuclear Warhead Acquisition Process.
“SEC. 4223. W93 NUCLEAR WARHEAD ACQUISITION PROCESS.
“(a) Reporting Requirements.—
“(1) Phase 1.—Upon receiving a concept definition study under phase 1 of the joint nuclear weapons life cycle for the W93 nuclear weapon, the Nuclear Weapons Council shall submit to the congressional defense committees a report that includes the following:
“(A) A description of the potential military characteristics of the weapon.
“(B) A description of the stockpile-to-target sequence requirements of the weapon.
“(C) An initial assessment of the requirements a W93 nuclear weapon program is likely to generate for the nuclear security enterprise, including—
“(i) adjustments to the size and composition of the workforce;
“(ii) additions to existing weapon design and production capabilities; or
“(iii) additional facility recapitalization or new construction.
“(D) A preliminary description of other significant requirements for a W93 nuclear weapon program, including—
“(i) first production unit date;
“(ii) initial operational capability date;
“(iii) full operational capability date; and
“(iv) any unique safety and surety requirements that could increase design complexity or cost estimate uncertainty.
“(2) Phase 2.—
“(A) In general.—Not later than 15 days after the date on which the Nuclear Weapons Council approves phase 2 of the joint nuclear weapons life cycle for the W93 nuclear weapon, the Administrator shall submit to the congressional defense committees a plan to implement a process of independent peer review or review by a board of experts, or both, with respect to—
“(i) the nonnuclear components of the weapon;
“(ii) subsystem design; and
“(iii) engineering aspects of the weapon.
“(B) Requirements for process.—The Administrator shall ensure that the process required by subparagraph (A)—
“(i) uses—
“(I) all relevant capabilities of the Federal Government, the defense industrial base, and institutions of higher education; and
“(II) other capabilities that the Administrator determines necessary; and
“(ii) informs the entire development life cycle of the W93 nuclear weapon.
“(b) Certifications and Reports at Phase 3.—Not later than 15 days after the date on which the Nuclear Weapons Council approves phase 3 of the joint nuclear weapons life cycle for the W93 nuclear weapon—
“(1) the Administrator shall certify to the congressional defense committees that—
“(A) phases 1 through 5 of the joint nuclear weapons life cycle for the weapon will employ, at a minimum, the same best practices and will provide Congress with the same level of programmatic insight as exists under the phase 6.X process for life extension programs; and
“(B) the proposed design for the weapon can be carried out within estimated schedule and cost objectives; and
“(2) the Commander of the United States Strategic Command shall submit to the congressional defense committees a report containing the requirements for weapon quantity and composition by type for the sub-surface ballistic nuclear (SSBN) force, including such requirements planned for the 15-year period following the date of the report, including any planned life extensions, retirements, or alterations.
“(c) Waivers.—Subsections (a) and (b) may be waived during a period of war declared by Congress after the date of the enactment of the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021.
“(d) Joint Nuclear Weapons Life Cycle Defined.—In this section, the term ‘joint nuclear weapons life cycle’ has the meaning given that term in section 4220.”
“Sec. 4223. W93 nuclear warhead acquisition process.”.
“(iv) Each new weapon system at the completion of phase 4, relating to production engineering, and before the initiation of phase 5, relating to first production.”
; and
SEC. 3112. Earned Value Management and Technology Readiness Levels for Life Extension Programs.
“SEC. 4224. EARNED VALUE MANAGEMENT AND TECHNOLOGY READINESS LEVELS FOR LIFE EXTENSION PROGRAMS.
“(a) Review of Contractor Earned Value Management Systems.—The Administrator shall enter into an arrangement with an independent entity under which that entity shall—
“(1) review and validate whether the earned value management systems of contractors of the Administration for life extension programs meet the earned value management national standard; and
“(2) conduct periodic surveillance reviews of such systems to ensure that such systems maintain compliance with that standard through program completion.
“(b) Benchmarks for Technology Readiness Levels.—The Administrator shall—
“(1) establish specific benchmarks for technology readiness levels of critical technologies for life extension programs at key decision points; and
“(2) ensure that critical technologies meet such benchmarks at such decision points.
“(c) Applicability.—This section shall apply to programs that, as of the date of the enactment of this section, have not entered phase 3 of the nuclear weapons acquisition process or phase 6.3 of a nuclear weapons life extension program.
“(d) Definition.—In this section, the term ‘earned value management national standard’ means the most recent version of the EIA-748 Earned Value Management System Standard published by the National Defense Industrial Association.”
“Sec. 4224. Earned value management and technology readiness levels for life extension programs.”.
SEC. 3113. Monitoring of Industrial Base for Nuclear Weapons Components, Subsystems, and Materials.
SEC. 3114. Plutonium Pit Production.
Subtitle C Defense Environmental Cleanup Matters
SEC. 3121. Public Statement of Environmental Liabilities for Facilities Undergoing Defense Environmental Cleanup.
“SEC. 4410. PUBLIC STATEMENT OF ENVIRONMENTAL LIABILITIES.
“Each year, at the same time that the Department of Energy submits its annual financial report under section 3516 of title 31, United States Code, the Secretary of Energy shall make available to the public a statement of environmental liabilities, as calculated for the most recent audited financial statement of the Department under section 3515 of that title, for each defense nuclear facility at which defense environmental cleanup activities are occurring.”
“Sec. 4410. Public statement of environmental liabilities.”.
SEC. 3122. Inclusion of Missed Milestones in Future-Years Defense Environmental Cleanup Plan.
“(D) For any milestone that has been missed, renegotiated, or postponed, a statement of the current milestone, the original milestone, and any interim milestones.”
SEC. 3123. Classification of Defense Environmental Cleanup as Capital Asset Projects or Operations Activities.
SEC. 3124. Extension of Limitation Relating to Reclassification of High-Level Waste.
SEC. 3125. Continued Analysis of Approaches for Supplemental Treatment of Low-Activity Waste at Hanford Nuclear Reservation.
Subtitle D Safeguards and Security Matters
SEC. 3131. Reporting on Penetrations of Networks of Contractors and Subcontractors.
“SEC. 4511. REPORTING ON PENETRATIONS OF NETWORKS OF CONTRACTORS AND SUBCONTRACTORS.
“(a) Procedures for Reporting Penetrations.—The Administrator shall establish procedures that require each contractor and subcontractor to report to the Chief Information Officer when a covered network of the contractor or subcontractor that meets the criteria established pursuant to subsection (b) is successfully penetrated.
“(b) Establishment of Criteria for Covered Networks.—
“(1) In general.—The Administrator shall, in consultation with the officials specified in paragraph (2), establish criteria for covered networks to be subject to the procedures for reporting penetrations under subsection (a).
“(2) Officials specified.—The officials specified in this paragraph are the following officials of the Administration:
“(A) The Deputy Administrator for Defense Programs.
“(B) The Associate Administrator for Acquisition and Project Management.
“(C) The Chief Information Officer.
“(D) Any other official of the Administration the Administrator considers necessary.
“(c) Procedure Requirements.—
“(1) Rapid reporting.—
“(A) In general.—The procedures established pursuant to subsection (a) shall require each contractor or subcontractor to submit to the Chief Information Officer a report on each successful penetration of a covered network of the contractor or subcontractor that meets the criteria established pursuant to subsection (b) not later than 60 days after the discovery of the successful penetration.
“(B) Elements.—Subject to subparagraph (C), each report required by subparagraph (A) with respect to a successful penetration of a covered network of a contractor or subcontractor shall include the following:
“(i) A description of the technique or method used in such penetration.
“(ii) A sample of the malicious software, if discovered and isolated by the contractor or subcontractor, involved in such penetration.
“(iii) A summary of information created by or for the Administration in connection with any program of the Administration that has been potentially compromised as a result of such penetration.
“(C) Avoidance of delays in reporting.—If a contractor or subcontractor is not able to obtain all of the information required by subparagraph (B) to be included in a report required by subparagraph (A) by the date that is 60 days after the discovery of a successful penetration of a covered network of the contractor or subcontractor, the contractor or subcontractor shall—
“(i) include in the report all information available as of that date; and
“(ii) provide to the Chief Information Officer the additional information required by subparagraph (B) as the information becomes available.
“(2) Access to equipment and information by administration personnel.—Concurrent with the establishment of the procedures pursuant to subsection (a), the Administrator shall establish procedures to be used if information owned by the Administration was in use during or at risk as a result of the successful penetration of a covered network—
“(A) in order to—
“(i) in the case of a penetration of a covered network of a management and operating contractor, enhance the access of personnel of the Administration to Government-owned equipment and information; and
“(ii) in the case of a penetration of a covered network of a contractor or subcontractor that is not a management and operating contractor, facilitate the access of personnel of the Administration to the equipment and information of the contractor or subcontractor; and
“(B) which shall—
“(i) include mechanisms for personnel of the Administration to, upon request, obtain access to equipment or information of a contractor or subcontractor necessary to conduct forensic analysis in addition to any analysis conducted by the contractor or subcontractor;
“(ii) provide that a contractor or subcontractor is only required to provide access to equipment or information as described in clause (i) to determine whether information created by or for the Administration in connection with any program of the Administration was successfully exfiltrated from a network of the contractor or subcontractor and, if so, what information was exfiltrated; and
“(iii) provide for the reasonable protection of trade secrets, commercial or financial information, and information that can be used to identify a specific person.
“(3) Dissemination of information.—The procedures established pursuant to subsection (a) shall allow for limiting the dissemination of information obtained or derived through such procedures so that such information may be disseminated only to entities—
“(A) with missions that may be affected by such information;
“(B) that may be called upon to assist in the diagnosis, detection, or mitigation of cyber incidents;
“(C) that conduct counterintelligence or law enforcement investigations; or
“(D) for national security purposes, including cyber situational awareness and defense purposes.
“(d) Definitions.—In this section:
“(1) Chief information officer.—The term ‘Chief Information Officer’ means the Associate Administrator for Information Management and Chief Information Officer of the Administration.
“(2) Contractor.—The term ‘contractor’ means a private entity that has entered into a contract or contractual action of any kind with the Administration to furnish supplies, equipment, materials, or services of any kind.
“(3) Covered network.—The term ‘covered network’ includes any network or information system that accesses, receives, or stores—
“(A) classified information; or
“(B) sensitive unclassified information germane to any program of the Administration, as determined by the Administrator.
“(4) Subcontractor.—The term ‘subcontractor’ means a private entity that has entered into a contract or contractual action with a contractor or another subcontractor to furnish supplies, equipment, materials, or services of any kind in connection with another contract in support of any program of the Administration.”
“Sec. 4511. Reporting on penetrations of networks of contractors and subcontractors.”.
Subtitle E Personnel Matters
SEC. 3141. Extension of Authority for Appointment of Certain Scientific, Engineering, and Technical Personnel.
SEC. 3142. Inclusion of Certain Employees and Contractors of Department of Energy in Definition of Public Safety Officer for Purposes of Certain Death Benefits.
“(F) an employee or contractor of the Department of Energy who—
“(i) is—
“(I) a nuclear materials courier (as defined in section 8331(27) of title 5, United States Code); or
“(II) designated by the Secretary of Energy as a member of an emergency response team; and
“(ii) is performing official duties of the Department, pursuant to a deployment order issued by the Secretary, to protect the public, property, or the interests of the United States by—
“(I) assessing, locating, identifying, securing, rendering safe, or disposing of weapons of mass destruction (as defined in section 1403 of the Defense Against Weapons of Mass Destruction Act of 1996 (50 U.S.C. 2302)); or
“(II) managing the immediate consequences of a radiological release or exposure.”
SEC. 3143. Reimbursement for Liability Insurance for Nuclear Materials Couriers.
SEC. 3144. Transportation and Moving Expenses for Immediate Family of Deceased Nuclear Materials Couriers.
“(D) any nuclear materials courier, as defined in section 8331(27); and”
SEC. 3145. Permanent Extension of Office of Ombudsman for Energy Employees Occupational Illness Compensation Program.
SEC. 3146. Reports on Diversity of Certain Contractor Employees of National Nuclear Security Administration.
SEC. 3147. Sense of Congress Regarding Compensation of Individuals Relating to Uranium Mining and Nuclear Testing.
Subtitle F Budget and Financial Management Matters
SEC. 3151. Reports on Financial Balances for Atomic Energy Defense Activities.
“SEC. 4732. REPORTS ON FINANCIAL BALANCES FOR ATOMIC ENERGY DEFENSE ACTIVITIES.
“(a) Reports Required.—
“(1) In general.—Concurrent with the submission of the budget justification materials submitted to Congress in support of the budget of the President for a fiscal year (submitted to Congress pursuant to section 1105(a) of title 31, United States Code), the Secretary of Energy shall submit to the congressional defense committees a report on the financial balances for each atomic energy defense program.
“(2) Presentation of information.—In each report required by paragraph (1), the Secretary shall—
“(A) present information on the financial balances for each atomic energy defense program at the budget control levels used in the report accompanying the most current Act appropriating funds for energy and water development; and
“(B) present financial balances in connection with funding under recurring DOE national security authorizations (as defined in section 4701) separately from balances in connection with funding under any other provision of law.
“(b) Elements.—
“(1) Format.—Each report required by subsection (a) shall—
“(A) be divided into two parts, as specified in paragraphs (2) and (3); and
“(B) set forth the information required by those paragraphs in summary form and by fiscal year.
“(2) Part 1.—The first part of the report required by subsection (a) shall set forth, for each atomic energy defense program, the following information, as of the end of the most recently completed fiscal year:
“(A) The balance of any unobligated funds and an explanation for why those funds are unobligated.
“(B) The total funds available to cost.
“(C) The total balance of costed funds.
“(D) The total balance of uncosted funds.
“(E) The threshold for the balance of uncosted funds, stated in dollars.
“(F) The amount of any balance of uncosted funds that is over or under that threshold and, in the case of a balance over that threshold, an explanation for why the balance is over that threshold.
“(G) The total balance of committed, uncosted funds.
“(H) The total balance of uncommitted, uncosted funds.
“(I) The amount of any balance of uncommitted, uncosted funds that is over or under the threshold described in subparagraph (E) and, in the case of a balance over that threshold, an explanation for why the balance is over that threshold.
“(3) Part 2.—The second part of the report required by subsection (a) shall set forth, for each atomic energy defense program, the following information:
“(A) The balance of any unobligated funds, as of the end of the first quarter of the current fiscal year.
“(B) The total balance of uncosted funds, as of the end of the first quarter of the current fiscal year.
“(C) Unalloted budget authority.
“(c) Definitions.—In this section:
“(1) Committed.—The term ‘committed’, with respect to funds, means the funds are associated with a legally enforceable agreement, such as a purchase order or contract, that has been entered into.
“(2) Costed.—The term ‘costed’, with respect to funds, means the funds have been obligated to a contract and goods or services have been received by the contractor in exchange for the funds.
“(3) Uncommitted.—The term ‘uncommitted’, with respect to funds, means the funds are not committed.
“(4) Uncosted.—The term ‘uncosted’, with respect to funds, means the funds have been obligated to a contract and goods or services have not been received by the contractor in exchange for the funds.
“(5) Threshold.—The term ‘threshold’ means a benchmark over which a balance carried over at the end of a fiscal year should be given greater scrutiny by Congress.
“(6) Total funds available to cost.—The term ‘total funds available to cost’ means the sum of—
“(A) total uncosted obligations from prior fiscal years;
“(B) current fiscal year obligations; and
“(C) current fiscal year deobligations.”
“Sec. 4732. Reports on financial balances for atomic energy defense activities.”.
Subtitle G Administrative Matters
SEC. 3161. Modifications to Enhanced Procurement Authority to Manage Supply Chain Risk.
“(e) Delegation of Authority.—The Secretary may delegate the authority under this section to—
“(1) in the case of the Administration, the Administrator; and
“(2) in the case of any other component of the Department of Energy, the Senior Procurement Executive of the Department.”
; and
“(6) Special exclusion action.—The term ‘special exclusion action’ means an action to prohibit, for a period not to exceed two years, the award of any contracts or subcontracts by the Administration or any other component of the Department of Energy related to any covered system to a source the Secretary determines to represent a supply chain risk.”
SEC. 3162. Extension of Pilot Program on Unavailability for Overhead Costs of Amounts Specified for Laboratory-Directed Research and Development.
Subtitle H Other Matters
SEC. 3171. Independent Study on Potential Environmental Effects of Nuclear War.
SEC. 3172. Review of Future of Computing Beyond Exascale at the National Nuclear Security Administration.
SEC. 3173. Sense of Congress on the Agreement Suspending the Antidumping Investigation on Uranium from the Russian Federation.
TITLE XXXII Defense Nuclear Facilities Safety Board
SEC. 3201. Authorization.
SEC. 3202. Nonpublic Collaborative Discussions by Defense Nuclear Facilities Safety Board.
“(k) Nonpublic Collaborative Discussions.—
“(1) In general.—Notwithstanding section 552b of title 5, United States Code, a quorum of the members of the Board may hold a meeting that is not open to public observation to discuss official business of the Board if—
“(A) no formal or informal vote or other official action is taken at the meeting;
“(B) each individual present at the meeting is a member or an employee of the Board;
“(C) at least one member of the Board from each political party is present at the meeting, unless all members of the Board are of the same political party at the time of the meeting; and
“(D) the general counsel of the Board, or a designee of the general counsel, is present at the meeting.
“(2) Disclosure of nonpublic collaborative discussions.—
“(A) In general.—Except as provided by subparagraph (B), not later than two business days after the conclusion of a meeting described in paragraph (1), the Board shall make available to the public, in a place easily accessible to the public—
“(i) a list of the individuals present at the meeting; and
“(ii) a summary of the matters, including key issues, discussed at the meeting, except for any matter the Board properly determines may be withheld from the public under section 552b(c) of title 5, United States Code.
“(B) Information about matters withheld from public.—If the Board properly determines under subparagraph (A)(ii) that a matter may be withheld from the public under section 552b(c) of title 5, United States Code, the Board shall include in the summary required by that subparagraph as much general information as possible with respect to the matter.
“(3) Rules of construction.—Nothing in this subsection may be construed—
“(A) to limit the applicability of section 552b of title 5, United States Code, with respect to—
“(i) a meeting of the members of the Board other than a meeting described in paragraph (1); or
“(ii) any information that is proposed to be withheld from the public under paragraph (2)(A)(ii); or
“(B) to authorize the Board to withhold from any individual any record that is accessible to that individual under section 552a of title 5, United States Code.”
TITLE XXXIV Naval Petroleum Reserves
SEC. 3401. Authorization of Appropriations.
TITLE XXXV Maritime Matters
Subtitle A Maritime Administration
SEC. 3501. Authorization of the Maritime Administration.
SEC. 3502. Improvements to Process for Waiving Navigation and Vessel-Inspection Laws and Approving Foreign Vessel Charters for Passenger Vessels.
“(a) On Request of Secretary of Defense.—
“(1) In general.—On request of the Secretary of Defense, the head of an agency responsible for the administration of the navigation or vessel-inspection laws shall waive compliance with those laws to the extent the Secretary considers necessary in the interest of national defense to address an immediate adverse effect on military operations.
“(2) Submittal of explanation to congress.—Not later than 24 hours after making a request under paragraph (1), the Secretary of Defense shall submit to the Committee on Transportation and Infrastructure and the Committee on Armed Services of the House of Representatives and the Committee on Commerce, Science, and Transportation and the Committee on Armed Services of the Senate a written explanation of the circumstances requiring such a waiver in the interest of national defense, including a confirmation that there are insufficient qualified vessels to meet the needs of national defense without such a waiver.”
“(2) Duration of waiver.—
“(A) In general.—Subject to subparagraphs (B) and (C), a waiver issued under this subsection shall be for a period of not more than 10 days.
“(B) Waiver extension.—Upon the termination of the period of a waiver issued under this subsection, the head of an agency may extend the waiver for an additional period of not more than 10 days, if the Maritime Administrator makes the determinations referred to in paragraph (1).
“(C) Aggregate duration.—The aggregate duration of the period of all waivers and extensions of waivers under this subsection with respect to any one set of events shall not exceed 45 days.”
; and
“(C) Notification required for extensions.—For purposes of this paragraph, an extension requested or issued under paragraph (2)(B) shall be treated in the same manner as a waiver requested or issued under this subsection.”
“(c) Report.—
“(1) In general.—Not later than 10 days after the date of the conclusion of the voyage of a vessel that, during such voyage, operated under a waiver issued under this section, the owner or operator of the vessel shall submit to the Maritime Administrator a report that includes—
“(A) the name and flag of the vessel;
“(B) the dates of the voyage;
“(C) any relevant ports of call; and
“(D) any other information the Maritime Administrator determines necessary.
“(2) Publication.—Not later than 48 hours after receiving a report under paragraph (1), the Maritime Administrator shall publish such report on an appropriate website of the Department of Transportation.”
SEC. 3503. Superintendent of the United States Merchant Marine Academy.
SEC. 3504. Assistance for Inland and Small Coastal Ports and Terminals.
“(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 (d)(3)(A)(ii)(III).”
“(d) Assistance for Small Inland and Coastal Ports and Terminals.—
“(1) In general.—From amounts reserved under subsection (c)(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 the findings of which are acceptable to the Secretary.
“(2) 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.
“(3) 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 (c)(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.
“(4) 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.
“(5) Matching requirements.—
“(A) In general.—Any costs of the project to be paid by the recipient’s matching share pursuant to subsection (c)(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 (c)(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.”
; and
SEC. 3505. Maritime Transportation System Emergency Relief Program.
“§ 50308. Maritime transportation system emergency relief program
“(a) General Authority.—The Maritime Administrator may make grants to, and enter into contracts and agreement with, eligible State and Tribal entities and eligible entities for—
“(1) the costs of capital projects to protect, repair, reconstruct, or replace equipment and facilities of the United States maritime transportation system that the Maritime Administrator determines is in danger of suffering serious physical damage, or has suffered serious physical damage, as a result of an emergency; and
“(2) eligible operating costs of United States maritime transportation equipment and facilities in an area directly affected by an emergency during—
“(A) the one-year period beginning on the date of a declaration of an emergency referred to in subparagraph (A) or (B) of subsection (j)(4); and
“(B) an additional one-year period beginning one year after the date of an emergency referred to in subparagraph (A) or (B) of subsection (j)(4), if the Maritime Administrator, in consultation with the Administrator of the Federal Emergency Management Administration, determines there is a compelling need arising out of the emergency for which the declaration is made.
“(b) Allocation.—
“(1) In general.—The Maritime Administrator shall determine an appropriate method for the equitable allocation and distribution of funds under this section to eligible State and Tribal entities and eligible entities.
“(2) Priority.—To the extent practicable, in allocating and distributing funds under this section, the Maritime Administrator shall give priority to applications submitted by eligible State or Tribal entities.
“(c) Applications.—An applicant for assistance under this section shall submit an application for such assistance to the Maritime Administrator at such time, in such manner, and containing such information and assurances as the Maritime Administrator may require.
“(d) Coordination of Emergency Funds.—
“(1) Use of funds.—Funds appropriated to carry out this section shall be in addition to any other funds available under this chapter.
“(2) No effect on other government activity.—The provision of funds under this section shall not affect the ability of any other agency of the Government, including the Federal Emergency Management Agency, or a State agency, a local governmental entity, organization, or person, to provide any other funds otherwise authorized by law.
“(e) Grant Requirements.—A grant awarded under this section that is made to address an emergency referred to in subsection (j)(4)(B) shall be—
“(1) subject to the terms and conditions the Maritime Administrator determines are necessary;
“(2) made only for expenses that are not reimbursed under the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.) or any Federal, State, or local assistance program; and
“(3) made only for expenses that are not reimbursed under any type of marine insurance.
“(f) Federal Share of Costs.—The Federal share payable of the costs for which a grant is made under this section shall be 100 percent.
“(g) Administrative Costs.—Of the amounts available to carry out this section, not more than two percent may be used for administration of this section.
“(h) Quality Assurance.—The Maritime Administrator shall institute adequate policies, procedures, and internal controls to prevent waste, fraud, abuse, and program mismanagement for the distribution of funds under this section.
“(i) Reports.—On an annual basis, the Maritime Administrator shall submit to the Committee on Commerce, Science, and Transportation of the Senate and the Committee on Transportation and Infrastructure of the House of Representatives a report on the financial assistance provided under this section during the year covered by the report. Each such report shall include, for such year, a description of such assistance provided and of how such assistance—
“(1) affected the United States maritime transportation system;
“(2) mitigated the financial impact of the emergency on the recipient of the assistance; and
“(3) protected critical infrastructure in the United States.
“(j) Definitions.—In this section:
“(1) Eligible state or tribal entity.—The term ‘eligible State or Tribal entity’ means—
“(A) a port authority; or
“(B) a vessel owned and operated by a State or Tribal government and facilities associated with the operation of such vessel.
“(2) Eligible entity.—The term ‘eligible entity’ means a public or private entity that is created or organized in the United States or under the laws of the United States, with significant operations in and a majority of its employees based in the United States, that is engaged in—
“(A) vessel construction, transportation by water, or support activities for transportation by water with an assigned North American Industry Classification System code beginning with 3366, 483, 4883, or 6113, or in the case of such construction, transportation, or support activities conducted by a fish processing vessel, such an assigned code beginning with 3117; or
“(B) as determined by the Secretary of Transportation—
“(i) construction or water transportation related to activities described in subparagraph (A); or
“(ii) maritime education and training.
“(3) Eligible operating costs.—The term ‘eligible operating costs’ means costs relating to—
“(A) emergency response;
“(B) cleaning;
“(C) sanitization;
“(D) janitorial services;
“(E) staffing;
“(F) workforce retention;
“(G) paid leave;
“(H) procurement and use of protective health equipment, testing, and training for employees and contractors;
“(I) debt service payments;
“(J) infrastructure repair projects;
“(K) fuel; and
“(L) other maritime transportation system operations, as determined by the Secretary of Transportation;
“(4) Emergency.—The term ‘emergency’ means a natural disaster affecting a wide area (such as a flood, hurricane, tidal wave, earthquake, severe storm, or landslide) or a catastrophic failure from any external cause, that impacts the United States maritime transportation system and as a result of which—
“(A) the Governor of a State has declared an emergency and the Maritime Administrator, in consultation with the Administrator of the Federal Emergency Management Administration, has concurred in the declaration;
“(B) the President has declared a major disaster under section 401 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5170);
“(C) national emergency declared by the President under the National Emergencies Act (50 U.S.C. 1601 et seq.) is in effect; or
“(D) a public health emergency declared pursuant to section 319 of the Public Health Service Act (42 U.S.C. 247d) is in effect.”
“50308. Port development; maritime transportation system emergency relief program.”.
SEC. 3506. Sea Year Cadets on Cable Security Fleet and Tanker Security Fleet Vessels.
“(b) Sea Year Cadets on Cable Security Fleet and Tanker Security Fleet Vessels.—The Secretary shall require an operator of a vessel participating in the Maritime Security Program under chapter 531 of this title, the Cable Security Fleet under chapter 532 of this title, or the Tanker Security Fleet under chapter 534 of this title to carry on each Maritime Security Program vessel, Cable Security Fleet vessel, or Tanker Security Fleet vessel 2 United States Merchant Marine Academy cadets, if available, on each voyage.”
SEC. 3507. Centers of Excellence for Domestic Maritime Workforce Training and Education: Technical Amendments.
“51705. Training for use of force against piracy.
“51706. Center of excellence for domestic maritime workforce training and education.”.
SEC. 3508. Merchant Mariner Training and Education.
“§ 51707. Merchant mariner recruitment, training, and retention strategic plan
“(a) Strategic Plan.—
“(1) In general.—Not later than one year after the date of the enactment of this section, and at least once every five years thereafter until the termination date under paragraph (6), the Secretary of Transportation, acting through the Administrator of the Maritime Administration, shall publish in the Federal Register a plan to recruit, train, and retain merchant mariners for the five-year period following the date of publication of the most recently published plan under this paragraph.
“(2) Contents.—A plan published under paragraph (1) shall contain—
“(A) a strategy to address merchant mariner recruitment, training, and retention issues in the United States; and
“(B) demonstration and research priorities concerning merchant mariner recruitment, training, and retention.
“(3) Factors.—In developing a plan under paragraph (1), the Secretary shall take into account, at a minimum—
“(A) the availability of existing research (as of the date of publication of the plan); and
“(B) the need to ensure results that have broad applicability for the United States merchant marine workforce development.
“(4) Consultation.—In developing a plan under paragraph (1), the Secretary shall consult with representatives of the maritime industry, labor organizations, including the Commander of the Transportation Command and the Commander of the Military Sealift Command, and other governmental entities and stakeholders in the maritime industry.
“(5) Transmittal to congress.—The Secretary shall transmit copies of any plan published under paragraph (1) to the Committee on Transportation and Infrastructure of the House of Representatives and the Committee on Commerce, Science, and Transportation of the Senate.
“(6) Termination date.—The requirement to publish a plan under this paragraph shall terminate on the date that the Administrator of the Maritime Administration determines that there is an adequate number of United States mariners for sustained strategic sealift.”
“51707. Merchant mariner recruitment, training, and retention strategic plan.”.
SEC. 3509. Publication of Information About Students and Recent Graduates of Maritime Academies.
SEC. 3510. Mariner Licensing and Credentialing for M/v Liseron.
Subtitle B Tanker Security Fleet
SEC. 3511. Tanker Security Fleet.
“CHAPTER 534— TANKER SECURITY FLEET
“53401. Definitions.
“53402. Establishment of the Tanker Security Fleet.
“53403. Award of operating agreements.
“53404. Effectiveness of operating agreements.
“53405. Obligations and rights under operating agreements.
“53406. Payments.
“53407. National security requirements.
“53408. Regulatory relief.
“53409. Special rule regarding age of participating Fleet vessels.
“53410. Regulations.
“53411. Authorization of appropriations.
“53412. Acquisition of Fleet vessels.
“§ 53401. Definitions
“In this chapter:
“(1) Foreign commerce.—The term ‘foreign commerce’ means—
“(A) commerce or trade between the United States, its territories or possessions, or the District of Columbia, and a foreign country; and
“(B) commerce or trade between foreign countries.
“(2) Participating fleet vessel.—The term ‘participating Fleet vessel’ means any product tank vessel covered by an operating agreement under this chapter on or after January 1, 2022, that—
“(A) meets the requirements of one of paragraphs (1) through (4) of section 53402(b) of this title; and
“(B) is no more than 20 years of age.
“(3) Person.—The term ‘person’ includes corporations, partnerships, and associations existing under, or authorized by, laws of the United States, or any State, territory, district, or possession thereof, or any foreign country.
“(4) Product tank vessel.—The term ‘product tank vessel’ means a double-hulled tank vessel capable of carrying simultaneously more than 2 separated grades of refined petroleum products.
“(5) Program participant.—The term ‘program participant’ means an owner or operator of a vessel that enters into an operating agreement covering a participating fleet vessel with the Secretary under section 53403.
“(6) Secretary.—The term ‘Secretary’ means the Secretary of Transportation, unless the context indicates otherwise.
“(7) United states citizen trust.—The term ‘United States citizen trust’—
“(A) means a trust for which—
“(i) each of the trustees is a citizen of the United States; and
“(ii) the application for documentation of the vessel under chapter 121 of this title includes an affidavit of each trustee stating that the trustee is not aware of any reason involving a beneficiary of the trust that is not a citizen of the United States, or involving any other person who is not a citizen of the United States, as a result of which the beneficiary or other person would hold more than 25 percent of the aggregate power to influence or limit the exercise of the authority of the trustee with respect to matters involving any ownership or operation of the vessel that may adversely affect the interests of the United States;
“(B) does not include a trust for which any person that is not a citizen of the United States has authority to direct, or participate in directing, a trustee for a trust in matters involving any ownership or operation of the vessel that may adversely affect the interests of the United States or in removing a trustee without cause, either directly or indirectly through the control of another person, unless the trust instrument provides that persons who are not citizens of the United States may not hold more than 25 percent of the aggregate authority to so direct or remove a trustee; and
“(C) may include a trust for which a person who is not a citizen of the United States holds more than 25 percent of the beneficial interest in the trust.
“§ 53402. Establishment of the Tanker Security Fleet
“(a) In General.—The Secretary of Transportation, in consultation with the Secretary of Defense, shall establish a fleet of active, commercially viable, militarily useful, privately owned product tank vessels to meet national defense and other security requirements and maintain a United States presence in international commercial shipping. The fleet shall consist of privately owned vessels of the United States for which there are in effect operating agreements under this chapter, and shall be known as the ‘Tanker Security Fleet’ (hereafter in this chapter referred to as the ‘Fleet’).
“(b) Vessel Eligibility.—A vessel is eligible to be included in the Fleet if the vessel—
“(1) meets the requirements under paragraph (1), (2), (3), or (4) of subsection (c);
“(2) is operated (or in the case of a vessel to be constructed, will be operated) in providing transportation in United States foreign commerce;
“(3) is self-propelled;
“(4) is not more than 10 years of age on the date the vessel is first included in the Fleet;
“(5) is determined by the Secretary of Defense to be suitable for use by the United States for national defense or military purposes in time of war or national emergency;
“(6) is commercially viable, as determined by the Secretary of Transportation; and
“(7) is—
“(A) a vessel of the United States; or
“(B) not a vessel of the United States, but—
“(i) the owner of the vessel has demonstrated an intent to have the vessel documented under chapter 121 of this title if it is included in the Fleet; and
“(ii) at the time an operating agreement is entered into under this chapter, the vessel is eligible for documentation under chapter 121 of this title.
“(c) Requirements Regarding Citizenship of Owners, Charterers, and Operators.—
“(1) Vessels owned and operated by section 50501 citizens.—A vessel meets the requirements of this paragraph if, during the period of an operating agreement under this chapter that applies to the vessel, the vessel will be owned and operated by one or more persons that are citizens of the United States under section 50501 of this title.
“(2) Vessels owned by a section 50501 citizen, or united states citizen trust, and chartered to a documentation citizen.—A vessel meets the requirements of this paragraph if—
“(A) during the period of an operating agreement under this chapter that applies to the vessel, the vessel will be—
“(i) owned by a person that is a citizen of the United States under section 50501 of this title or that is a United States citizen trust; and
“(ii) demise chartered to a person—
“(I) that is eligible to document the vessel under chapter 121 of this title;
“(II) the chairman of the board of directors, chief executive officer, and a majority of the members of the board of directors of which are citizens of the United States under section 50501 of this title, and are appointed and subjected to removal only upon approval by the Secretary of Transportation; and
“(III) that certifies to the Secretary of Transportation that there are no treaties, statutes, regulations, or other laws that would prohibit the program participant for the vessel from performing its obligations under an operating agreement under this chapter;
“(B) in the case of a vessel that will be demise chartered to a person that is owned or controlled by another person that is not a citizen of the United States under section 50501 of this title, the other person enters into an agreement with the Secretary of Transportation not to influence the operation of the vessel in a manner that will adversely affect the interests of the United States; and
“(C) the Secretary of Transportation and the Secretary of Defense notify the Committee on Armed Services and the Committee on Commerce, Science, and Transportation of the Senate and the Committee on Armed Services and the Committee on Transportation and Infrastructure of the House of Representatives that the Secretaries concur with the certification required under subparagraph (A)(ii)(III), and have reviewed and agree that there are no legal, operational, or other impediments that would prohibit the owner or operator for the vessel from performing its obligations under an operating agreement under this chapter.
“(3) Vessels owned and operated by a defense contractor.—A vessel meets the requirements of this paragraph if—
“(A) during the period of an operating agreement under this chapter that applies to the vessel, the vessel will be owned and operated by a person that—
“(i) is eligible to document a vessel under chapter 121 of this title;
“(ii) operates or manages other vessels of the United States for the Secretary of Defense, or charters other vessels to the Secretary of Defense;
“(iii) has entered into a special security agreement for the purpose of this paragraph with the Secretary of Defense;
“(iv) makes the certification described in paragraph (2)(A)(ii)(III); and
“(v) in the case of a vessel described in paragraph (2)(B), enters into an agreement referred to in that paragraph; and
“(B) the Secretary of Transportation and the Secretary of Defense notify the Committee on Armed Services and the Committee on Commerce, Science, and Transportation of the Senate and the Committee on Armed Services and the Committee on Transportation and Infrastructure of the House of Representatives that they concur with the certification required under subparagraph (A)(iv), and have reviewed and agree that there are no legal, operational, or other impediments that would prohibit the program participant for the vessel from performing its obligations under an operating agreement under this chapter.
“(4) Vessels owned by documentation citizens and chartered to section 50501 citizens.—A vessel meets the requirements of this paragraph if, during the period of an operating agreement under this chapter, the vessel will be—
“(A) owned by a person who is eligible to document a vessel under chapter 121 of this title; and
“(B) demise chartered to a person that is a citizen of the United States under section 50501 of this title.
“(d) Request by Secretary of Defense.—The Secretary of Defense shall request that the Secretary of Homeland Security issue any waiver under section 501 of this title that the Secretary of Defense determines is necessary for purposes of this chapter.
“(e) Vessel Standards.—
“(1) Certificate of inspection.—A vessel used to provide oceangoing transportation the Secretary of the department in which the Coast Guard is operating determines meets the criteria of subsection (b) but which, on the date of enactment of this section, is not documented under chapter 121, shall be eligible for a certificate of inspection if the Secretary of the department in which the Coast Guard is operating determines that—
“(A) the vessel is classed by and designed in accordance with the rules of the American Bureau of Shipping, or another classification society accepted by the Commandant of the Coast Guard;
“(B) the vessel complies with applicable international agreements and associated guidelines, as determined by the country in which the vessel was documented immediately before becoming documented under chapter 121 of this title; and
“(C) the country has not been identified by the Commandant of the Coast Guard as inadequately enforcing international vessel regulations as to that vessel.
“(2) Continued eligibility for certificate.—Subsection (a) shall not apply to any vessel that has failed to comply with the applicable international agreements and associated guidelines referred to in paragraph (1)(B).
“(3) Reliance on classification society.—
“(A) In general.—The Commandant of the Coast Guard may rely on a certification from the American Bureau of Shipping or, subject to subparagraph (B), another classification society accepted by the Commandant of the Coast Guard, to establish that a vessel is in compliance with the requirements of paragraph (1).
“(B) Foreign classification society.—The Commandant of the Coast Guard may accept certification from a foreign classification society under subparagraph (A) only—
“(i) to the extent that the government of the foreign country in which the society is headquartered provides access on a reciprocal basis to the American Bureau of Shipping; and
“(ii) if the foreign classification society has offices and maintains records in the United States.
“§ 53403. Award of operating agreements
“(a) In General.—The Secretary of Transportation shall require, as a condition of including any vessel in the Fleet, that the program participant of the vessel enter into an operating agreement with the Secretary under this section.
“(b) Procedure for Applications.—
“(1) Eligible vessels.—The Secretary of Transportation shall accept an application for an operating agreement for an eligible product tank vessel under the priority under paragraph (2) only from a person that has authority to enter into an operating agreement under this chapter.
“(2) Establishment of priority.—The Secretary of Transportation may enter into a new operating agreement with an applicant that meets the requirements of section 53402(c) for a vessel that meets the qualifications of section 53402(b), and shall give priority to applications based on—
“(A) vessel capabilities, as established by the Secretary of Defense; then
“(B) after consideration of vessel type, according to an applicant’s record of owning and operating vessels; then
“(C) after consideration of ownership and operation, according to such additional priorities as the Secretary of Transportation may consider appropriate.
“(3) Concurrence of award.—The Secretary of Transportation may not approve an application for an operating agreement without the concurrence of the Secretary of Defense.
“(c) Limitation.—For any fiscal year, the Secretary of Transportation may not award operating agreements under this chapter that require payments under section 53406 of this title for more than 10 vessels.
“(d) Judicial Review.—No court shall have jurisdiction to review the Secretary’s decision with respect to the award or non-award of an operating agreement issued under this chapter.
“§ 53404. Effectiveness of operating agreements
“(a) In General.—Subject to the availability of appropriations for such purpose, the Secretary may enter into an operating agreement under this chapter for fiscal year 2022 and any subsequent fiscal year. The agreement shall be effective only for 1 fiscal year, but shall be renewable, subject to the availability of appropriations, for each fiscal year through the end of fiscal year 2035.
“(b) Vessels Under Charter to the United States.—The program participant of a vessel under charter to the United States is eligible to receive payments pursuant to any operating agreement that covers such vessel.
“(c) Termination.—
“(1) Termination by secretary for lack of program participant compliance.—If the program participant with respect to an operating agreement materially fails to comply with the terms of the agreement—
“(A) the Secretary shall notify the program participant and provide a reasonable opportunity to comply with the operating agreement; and
“(B) the Secretary shall terminate the operating agreement if the program participant fails to achieve such compliance.
“(2) Termination by program participant.—If a program participant provides notice of the intent to terminate an operating agreement under this chapter on a date specified by not later than 60 days prior to the date specified by the program participant for such termination, such agreement shall terminate on the date specified by the program participant.
“(d) Nonrenewal for Lack of Funds.—If, by the first day of a fiscal year, sufficient funds have not been appropriated under the authority provided by this chapter for that fiscal year, then the Secretary shall notify the Committee on Armed Services and the Committee on Commerce, Science, and Transportation of the Senate and the Committee on Armed Services and the Committee on Transportation and Infrastructure of the House of Representatives that operating agreements authorized under this chapter for which sufficient funds are not available will not be renewed for that fiscal year if sufficient funds are not appropriated by the 60th day of that fiscal year.
“(e) Release of Vessels From Obligations.—If funds are not appropriated for payments under an operating agreement under this chapter for any fiscal year by the 60th day of that fiscal year, then—
“(1) each vessel covered by the operating agreement is thereby released from any further obligation under the operating agreement;
“(2) the program participant for the vessel may transfer and register such vessel under a foreign registry that is acceptable to the Secretary of Transportation and the Secretary of Defense, notwithstanding section 56101 of this title; and
“(3) if chapter 563 of this title is applicable to the vessel after registration, then the vessel is available to be requisitioned by the Secretary pursuant to chapter 563 of this title.
“§ 53405. Obligations and rights under operating agreements
“(a) Operation of Vessel.—An operating agreement under this chapter shall require that, during the period the vessel covered by the agreement is operating under the agreement the vessel shall—
“(1) be operated in the United States foreign commerce, mixed United States foreign commerce and domestic trade allowed under a registry endorsement issued under section 12111 of this title, in foreign-to-foreign commerce, or under a charter to the United States;
“(2) not be operated in the coastwise trade except as described in paragraph (1); and
“(3) be documented under chapter 121 of this title.
“(b) Annual Payments by the Secretary.—
“(1) In general.—An operating agreement under this chapter shall require, subject to the availability of appropriations, that the Secretary make a payment to the program participant in accordance with section 53406.
“(2) Operating agreement is an obligation of the united states government.—An operating agreement under this chapter constitutes a contractual obligation of the United States Government to pay the amounts provided for in the agreement to the extent of actual appropriations.
“(c) Documentation Requirement.—Each vessel covered by the operating agreement, including an agreement terminated under section 53404(c)(2), shall remain documented under chapter 121 of this title until the date the operating agreement would terminate according to its terms.
“(d) National Security Requirements.—
“(1) In general.—A program participant with respect to an operating agreement, including an agreement terminated under section 53404(c)(2), shall continue to be bound by the provisions of section 53407 until the date the operating agreement would terminate according to its terms.
“(2) Emergency preparedness agreement.—All terms and conditions of an Emergency Preparedness Agreement entered into under section 53407 shall remain in effect until the date the operating agreement would terminate according to its terms, except that the terms of such Emergency Preparedness Agreement may be modified by the mutual consent of the program participant, the Secretary of Transportation, and the Secretary of Defense.
“(e) Transfer of Operating Agreements.—A program participant may transfer an operating agreement (including all rights and obligations under the agreement) to any person that is eligible to enter into that operating agreement under this chapter, if the Secretary of Transportation and the Secretary of Defense determine that the transfer is in the best interests of the United States.
“(f) Replacement of Vessels Covered by Agreements.—A program participant may replace the vessel with another vessel that is eligible to be included in the Fleet under section 53402(b), if the Secretary of Transportation, in coordination with the Secretary of Defense, approves the replacement of the vessel. No court shall have jurisdiction to review a decision by the Secretary of Transportation or the Secretary of Defense pertaining to the replacement of a vessel under this section.
“§ 53406. Payments
“(a) Annual Payment.—Subject to the availability of appropriations for such purpose and the other provisions of this chapter, the Secretary shall pay to program participant for an operating agreement under this chapter an amount equal to $6,000,000 for each vessel covered by the agreement for each fiscal year that the vessel is covered by the agreement. Such amount shall be paid in equal monthly installments on the last day of each month. The amount payable under this subsection may not be reduced except as provided by this section.
“(b) Certification Required for Payment.—As a condition of receiving payment under this section for a fiscal year for a vessel, the program participant shall certify, in accordance with regulations issued by the Secretary, that the vessel has been and will be operated in accordance with section 53405(a) of this title for at least 320 days during the fiscal year. Days during which the vessel is drydocked, surveyed, inspected, or repaired shall be considered days of operation for purposes of this subsection.
“(c) General Limitations.—The Secretary may not make any payment under this chapter for a vessel with respect to any days for which the vessel is—
“(1) not operated or maintained in accordance with an operating agreement under this chapter;
“(2) more than 20 years of age; or
“(3) simultaneously operating under an agreement pursuant to chapter 531 of this title.
“(d) Reductions in Payments.—With respect to payments under this chapter for a vessel covered by an operating agreement, the Secretary—
“(1) except as provided in paragraph (2), may not reduce such a payment for—
“(A) the operation of the vessel to carry military or other preference cargoes under section 55302(a), 55304, 55305, or 55314 of this title, section 2631 of title 10, or any other cargo preference law of the United States; or
“(B) any days in which the vessel is operated under charter to the United States Government;
“(2) may not make such a payment for any day that the vessel is engaged in transporting more than 7,500 tons of civilian bulk preference cargoes pursuant to section 55302(a), 55305, or 55314 of this title; and
“(3) shall make a pro rata reduction for each day less than 320 in a fiscal year that the vessel is not operated in accordance with section 53405 of this title.
“(e) Limitations Regarding Noncontiguous Domestic Trade.—
“(1) In general.—No program participant shall receive payments pursuant to this chapter during a period in which it participates in noncontiguous domestic trade.
“(2) Limitation on application.—Paragraph (1) shall not apply to a program participant that is a citizen of the United States within the meaning of section 50501 of this title, applying the 75 percent ownership requirement of that section.
“(3) Participates in a noncontiguous trade defined.—In this subsection the term ‘participates in a noncontiguous domestic trade’ means directly or indirectly owns, charters, or operates a vessel engaged in transportation of cargo between a point in the contiguous 48 States and a point in Alaska, Hawaii, or Puerto Rico, other than a point in Alaska north of the Arctic Circle.
“§ 53407. National security requirements
“(a) Emergency Preparedness Agreement Required.—The Secretary of Transportation, in coordination with the Secretary of Defense, shall establish an emergency preparedness program under this section under which the program participant for an operating agreement under this chapter shall agree, as a condition of the operating agreement, to enter into an emergency preparedness agreement with the Secretary. The Secretary shall negotiate and enter into an Emergency Preparedness Agreement with each program participant as promptly as practicable after the program participant has entered into the operating agreement.
“(b) Terms of Agreement.—The terms of an agreement under this section—
“(1) shall provide that upon request by the Secretary of Defense during time of war or national emergency, or whenever determined by the Secretary of Defense to be necessary for national security or contingency operation (as that term is defined in section 101 of title 10), the program participant shall make available commercial transportation resources (including services) described in subsection (d) to the Secretary of Defense;
“(2) shall include such additional terms as may be established by the Secretary of Transportation and the Secretary of Defense; and
“(3) shall allow for the modification or addition of terms upon agreement by the Secretary of Transportation and the program participant and the approval by the Secretary of Defense.
“(c) Participation After Expiration of Operating Agreement.—Except as provided by section 53406, the Secretary of Transportation may not require, through an emergency preparedness agreement or an operating agreement, that a program participant covered by an operating agreement continue to participate in an emergency preparedness agreement after the operating agreement has expired according to its terms or is otherwise no longer in effect. After the expiration of an emergency preparedness agreement, a program participant may voluntarily continue to participate in the agreement.
“(d) Resources Made Available.—The commercial transportation resources to be made available under an emergency preparedness agreement shall include vessels or capacity in vessels, terminal facilities, management services, and other related services, or any agreed portion of such nonvessel resources for activation as the Secretary of Defense may determine to be necessary, seeking to minimize disruption of the program participant’s service to commercial customers.
“(e) Compensation.—
“(1) In general.—The Secretary of Transportation shall include in each Emergency Preparedness Agreement provisions approved by the Secretary of Defense under which the Secretary of Defense shall pay fair and reasonable compensation for all commercial transportation resources provided pursuant to this section.
“(2) Specific requirements.—Compensation under this subsection—
“(A) shall not be less than the program participant’s commercial market charges for like transportation resources;
“(B) shall be fair and reasonable considering all circumstances;
“(C) shall be provided from the time that a vessel or resource is required by the Secretary of Defense until the time it is redelivered to the program participant and is available to reenter commercial service; and
“(D) shall be in addition to and shall not in any way reflect amounts payable under section 53406 of this title.
“(f) Temporary Replacement Vessels.—Notwithstanding section 55302(a), 55304, 55305, or 55314 of this title, section 2631 of title 10, or any other cargo preference law of the United States—
“(1) a program participant may operate or employ in foreign commerce a foreign-flag vessel or foreign-flag vessel capacity as a temporary replacement for a vessel of the United States or vessel of the United States capacity that is activated by the Secretary of Defense under an emergency preparedness agreement or a primary Department of Defense sealift-approved readiness program; and
“(2) such replacement vessel or vessel capacity shall be eligible during the replacement period to transport preference cargoes subject to sections 55302(a), 55304, 55305, and 55314 of this title and section 2631 of title 10, United States Code, to the same extent as the eligibility of the vessel or vessel capacity replaced.
“(g) Redelivery and Liability of the United States for Damages.—
“(1) In general.—All commercial transportation resources activated under an emergency preparedness agreement shall, upon termination of the period of activation, be redelivered to the program participant in the same good order and condition as when received, less ordinary wear and tear, or the Secretary of Defense shall fully compensate the program participant for any necessary repair or replacement.
“(2) Limitation on united states liability.—Except as may be expressly agreed in an emergency preparedness agreement, or as otherwise provided by law, the Government shall not be liable for disruption of a program participant’s commercial business or other consequential damages to the program participant arising from the activation of commercial transportation resources under an emergency preparedness agreement.
“§ 53408. Regulatory relief
“(a) Operation in Foreign Commerce.—A program participant for a vessel included in an operating agreement under this chapter may operate the vessel in the foreign commerce of the United States without restriction.
“(b) Other Restrictions.—The restrictions of section 55305(a) of this title concerning the building, rebuilding, or documentation of a vessel in a foreign country shall not apply to a vessel for any day the operator of the vessel is receiving payments for the operation of that vessel under an operating agreement under this chapter.
“(c) Telecommunications Equipment.—The telecommunications and other electronic equipment on an existing vessel that is redocumented under the laws of the United States for operation under an operating agreement under this chapter shall be deemed to satisfy all Federal Communications Commission equipment approval requirements, if—
“(1) such equipment complies with all applicable international agreements and associated guidelines as determined by the country in which the vessel was documented immediately before becoming documented under the laws of the United States;
“(2) that country has not been identified by the Secretary as inadequately enforcing international regulations as to that vessel; and
“(3) at the end of its useful life, such equipment shall be replaced with equipment that meets Federal Communications Commission equipment approval standards.
“§ 53409. Special rule regarding age of participating Fleet vessels
“Any age restriction under section 53402(b)(4) of this title shall not apply to a participating Fleet vessel during the 30-month period beginning on the date the vessel begins operating under an operating agreement under this chapter, if the Secretary determines that the program participant for the vessel has entered into an arrangement to obtain and operate under the operating agreement for the participating Fleet vessel a replacement vessel that, upon commencement of such operation, will be eligible to be included in the Fleet under section 53402(b) of this title.
“§ 53410. Regulations
“The Secretary of Transportation and the Secretary of Defense may each prescribe rules as necessary to carry out their respective responsibilities under this chapter.
“§ 53411. Authorization of appropriations
“There is authorized to be appropriated for payments under section 53406, $60,000,000 for each of fiscal years 2022 through 2035, to remain available until expended.
“§ 53412. Acquisition of Fleet vessels
“(a) In General.—Upon replacement of a Fleet vessel under an operating agreement under this chapter, and subject to agreement by the program participant of the vessel, the Secretary of Transportation is authorized, subject to the concurrence of the Secretary of Defense, acquire the vessel being replaced for inclusion in the National Defense Reserve Fleet.
“(b) Requirements.—To be eligible for acquisition by the Secretary of Transportation under this section a vessel shall—
“(1) have been covered by an operating agreement under this chapter for not less than 3 years; and
“(2) meet recapitalization requirements for the Ready Reserve Force.
“(c) Fair Market Value.—A fair market value shall be established by the Maritime Administration for acquisition of an eligible vessel under this section.
“(d) Appropriations.—Vessel acquisitions under this section shall be subject to the availability of appropriations. Amounts made available to carry out this section shall be derived from amounts authorized to be appropriated for the National Defense Reserve Fleet. Amounts authorized to be appropriated to carry out the Maritime Security Program may not be use to carry out this section.”
“534. Tanker Security Fleet 53401”.