U.S. GOVERNMENT PRINTING OFFICE

WASHINGTON : 

1 

89–010 

" ! SENATE 

111TH CONGRESS

1st Session 

REPORT

2009

111–95 

Calendar No. 193 

COAST GUARD AUTHORIZATION ACT FOR 

FISCAL YEARS 2010 AND 2011 

R E P O R T 

OF THE

COMMITTEE ON COMMERCE, SCIENCE, AND 

TRANSPORTATION 

ON

S. 1194 

OCTOBER 30, 2009.—Ordered to be printed 


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(II) 

COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION 

ONE HUNDRED ELEVENTH CONGRESS

FIRST SESSION

JOHN D. ROCKEFELLER IV, West Virginia, Chairman 

DANIEL K. INOUYE, Hawaii 

JOHN F. KERRY, Massachusetts 

BYRON L. DORGAN, North Dakota 

BARBARA BOXER, California 

BILL NELSON, Florida 

MARIA CANTWELL, Washington 

FRANK R. LAUTENBERG, New Jersey 

MARK PRYOR, Arkansas 

CLAIRE MCCASKILL, Missouri 

AMY KLOBUCHAR, Minnesota 

TOM UDALL, Colorado 

MARK WARNER, Virginia 

MARK BEGICH, Alaska 

KAY BAILEY HUTCHISON, Texas 

OLYMPIA J. SNOWE, Maine 

JOHN ENSIGN, Nevada 

JIM DEMINT, South Carolina 

JOHN THUNE, South Dakota 

ROGER F. WICKER, Mississippi 

GEORGE LEMIEUX, Florida 

JOHNNY ISAKSON, Georgia 

DAVID VITTER, Louisiana 

SAM BROWNBACK, Kansas 

MIKE JOHANNS, Nebraska 

ELLEN DONESKI, Chief of Staff 

JAMES REID, Deputy Chief of Staff 

BRUCE ANDREWS, General Counsel 

ANN BEGEMAN, Acting Republican Staff Director 

BRIAN HENDRICKS, Republican Chief Counsel 

TODD BERTOSON, Republican Senior Counsel 


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Calendar No. 193 

111TH CONGRESS REPORT " ! SENATE 1st Session 111–95 

COAST GUARD AUTHORIZATION ACT FOR FISCAL YEARS 

2010 AND 2011 

OCTOBER 30, 2009.—Ordered to be printed 

Mr. ROCKEFELLER, from the Committee on Commerce, Science, and 

Transportation, submitted the following 

R E P O R T 

[To accompany S. 1194] 

The Committee on Commerce, Science, and Transportation, to 

which was referred the bill (S. 1194) to reauthorize the Coast 

Guard for fiscal years 2010 and 2011, and for other purposes, having considered the same, reports favorably thereon with an amendment (in the nature of a substitute) and recommends that the bill 

(as amended) do pass. 

PURPOSE OF THE BILL

S. 1194, the Coast Guard Authorization Act for Fiscal Years 2010 

and 2011, as amended, would make a number of changes to current 

law affecting the Coast Guard and its statutory missions, and 

would serve two very important purposes. First, it would authorize 

appropriations for the Coast Guard for fiscal year (FY) 2010 and 

FY 2011 covering six accounts: (1) operation and maintenance expenses; (2) acquisition, construction, and improvement of facilities 

and equipment (AC&I); (3) retired pay; (4) environmental compliance and restoration; (5) research, development, testing, and evaluation (RDT&E); and (6) the reserve program. Second, it would 

provide for comprehensive reform to the Coast Guard’s major systems acquisition processes and procedures. 

BACKGROUND AND NEEDS

The Coast Guard was established on January 28, 1915, as part 

of the Department of the Treasury, through the consolidation of the 

Revenue Cutter Service (established in 1790) and the Lifesaving 


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Service (established in 1848). The Coast Guard later assumed the 

duties of three other agencies: the Lighthouse Service (established 

in 1789), the Steamboat Inspection Service (established in 1838), 

and the Bureau of Navigation (established in 1884). 

The Coast Guard remained a part of the Department of the 

Treasury until 1967, when it was transferred to the newly created 

Department of Transportation. On March 1, 2003, pursuant to the 

Homeland Security Act of 2002 (Public Law 107–296), the Coast 

Guard was transferred to the newly constituted Department of 

Homeland Security. The Coast Guard provides many critical services for our Nation which can be grouped into five fundamental categories: maritime security; maritime safety; maritime mobility; protection of natural resources; and national defense. 

The Coast Guard is the Federal government’s principal maritime 

law-enforcement agency, and is also a branch of the United States 

armed forces. As such, the Coast Guard maintains defense readiness to operate as a specialized service in the Navy upon the declaration of war or when the President so directs. The Coast Guard 

has defended the nation in every war since 1790. During the recent 

combat operations in Iraq, the Coast Guard deployed two 378-foot 

high endurance cutters, one 225-foot ocean going buoy tender, and 

one Port Security Team. It continues to operate six 110-foot Island 

Class patrol boats in the Persian Gulf. This was the first deployment of Coast Guard cutters in support of a wartime contingency 

since the Vietnam War. 

Under title 14, United States Code, the Coast Guard has primary 

responsibility for enforcing or assisting in the enforcement of all 

applicable Federal laws on, under, and over the high seas and waters subject to the jurisdiction of the United States; ensuring the 

safety of life and property at sea; protecting the marine environment; carrying out domestic and international icebreaking activities; and ensuring the safety and security of vessels, ports, waterways, and related facilities. In carrying out these responsibilities, 

the Coast Guard’s activities include commercial and recreational 

vessel safety inspection, the rescue of lives and property at sea, enforcement of fisheries laws, marine environmental protection, and 

the interdiction of drug traffickers and smugglers of illegal migrants. Since September 11, 2001, the Coast Guard’s security responsibilities have increased significantly, with new authorities 

provided under the Maritime Transportation Security Act of 2002 

(MTSA, Public Law 107–295). 

The Coast Guard is composed of 41,950 active duty military personnel, 7,500 reservists, 7,700 civilian employees, and 29,000 Coast 

Guard Auxiliary volunteers. In 2008, the Coast Guard responded to 

more than 24,000 calls for assistance, boarded 70,000 vessels, 

saved 4,000 lives, seized 370,000 pounds of cocaine, and stopped 

5,000 illegal migrants from reaching our shores. The Coast Guard 

conducted also waterborne, aerial, and shore-side security patrols, 

including approximately 84,000 patrols of critical infrastructure 

and key assets. Additionally, the Coast Guard conducted more than 

20,700 security zone patrols near critical infrastructure. The Coast 

Guard escorted approximately 5,900 naval vessels, vessels engaged 

in military outloads, vessels carrying certain dangerous cargoes in 

bulk, and high capacity passenger vessels, including cruise ships 

and ferry vessels. Coast Guard assets also patrolled to protect our 


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fisheries stocks and responded to 14,647 pollution incidents (4,474 

from vessels and 10,173 from facilities and other sources). 

Oil pollution from vessels continues to pose major environmental 

risks to our Nation. In 2007, the most recent year for which complete information is currently available from the Energy Information Administration, the United States had net imports of 12.2 million barrels of oil per day, more than twice as much as Japan (4.9 

million barrels) and more than three times as much as China (3.7 

million barrels), the world’s next largest importers. The transport 

of crude oil into the United States occurs primarily by sea with 

ports throughout the United States receiving tens of thousands of 

shipments of oil each year. The Maritime Administration reported 

that the United States received over 8,400 shipments of crude oil 

via Tanker Vessels with at least 70,000 dead weight tons in 2007— 

a 33 percent increase from 2002. In addition, vessels not transporting oil, such as cargo and freight vessels, fishing vessels, and 

passenger ships, often carry tens of thousands of gallons of fuel oil 

to power their engines. According to Coast Guard data, while the 

number of oil spills from vessels has decreased notably since passage of the Oil Pollution Act of 1990 (OPA 90), the volume of oil 

spilled nationwide is still significant. The Government Accountability Office (GAO), in its September 2007 report entitled ‘‘Major 

Oil Spills Occur Infrequently, but Risks to the Federal Oil Spill 

Fund Remain’’ (GAO–07–1085), found that 51 spills with costs 

above $1 million have occurred since 1990, costing a total of between $860 million and $1.1 billion. 

A comparison of data from 1992 and 2004 is telling. In 1992, 

there were 5,310 reported vessel spills in U.S. waters, amounting 

to 665,432 gallons of oil; in 2004, the total was higher, at 722,768 

gallons, and a considerable number of spills are still occurring. In 

2004, there were 3,897 reported vessel spills in U.S. waters, including 35 spills from tank ships, 143 spills from barges, and 1,527 

spills from other vessels, including cargo ships. Another 1,055 were 

from unknown sources. Furthermore, even though the number of 

spills from tankers declined from 193 spills in 1992 to 35 spills in 

2004, a single incident from a vessel like the Exxon Valdez can be 

devastating, both environmentally and economically. 

Further improvements in the Coast Guard’s authority will better 

enable it to achieve its environmental protection and response mission and other statutory missions. Improvements in the Coast 

Guard’s authorizing statute are also needed to ensure it can successfully acquire the assets it needs to accomplish these missions. 

The Coast Guard is struggling right now to replace its rapidly 

aging fleet of ships, aircraft, and facilities. With current cost estimates ranging from $24 billion to $26 billion, the Integrated Deepwater System Program is the largest and most complex acquisition 

program in the Coast Guard’s history. The primary purpose of the 

Deepwater program is to modernize its aging fleet of 90 cutters and 

200 aircraft used for missions that occur beyond 50 miles from the 

shoreline through a mix of new acquisitions and retrofits to existing ‘‘legacy assets.’’ 

In 2002, the Coast Guard selected Integrated Coast Guard Systems (ICGS), a joint venture between Lockheed Martin and Northrop Grumman, as its primary contractor, with ICGS using a lead 

systems integrator (LSI) approach intended to develop new assets 


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as an integrated ‘‘system of systems.’’ This LSI approach provided 

the contractor with significant decision-making and management 

authority over many aspects of the acquisition, including decisions 

on whether to ‘‘make or buy’’ assets to be delivered. The LSI approach also did not require competition for subcontracts. 

In 1998, the Coast Guard’s initial estimated cost for the Deep- water project was $17 billion, with an estimated delivery date for 

all new and retrofitted assets of 2018. The Coast Guard submitted 

a revised Deepwater implementation plan to Congress in February, 

2005, to address increased costs, and to account for new security 

capabilities and the service’s new missions following its shift from 

the Department of Transportation to the Department of Homeland 

Security (DHS) subsequent to the events of September 11, 2001. 

Under this revised plan, the overall program cost increased to $24 

billion, with the final assets scheduled for delivery in 2027. 

Problems with the Deepwater program, many of which have been 

documented in reports from the DHS Inspector General and the 

GAO, have raised serious concerns about specific acquisitions 

under the program, as well as more fundamental problems with 

the program as a whole. The GAO issued a report in March 2004 

(GAO–04–380) citing significant risks with the use of the LSI contracting model and recommending changes to address three broad 

areas of concern: (1) improving program management; (2) strengthening contractor accountability; and (3) promoting cost control 

through greater competition among potential subcontractors. A 

GAO report (GAO–06–764) issued in June of 2006 detailed problems with the design of one of the three major new vessel assets 

to be acquired, the Fast Response Cutter (FRC), that led the Coast 

Guard to issue a stop-work order to ICGS. On November 30, 2006, 

the Coast Guard announced the decision to suspend all operations 

of the eight 110-foot patrol boats that had been converted to 123- 

foot patrol boats, due to structural damage and safety concerns. A 

report (OIG–07–23) of the DHS IG issued on January 23, 2007, 

found that the largest new vessel to be delivered under the contract, the National Security Cutter (NSC), would not meet the 

Coast Guard’s performance requirements and had design flaws that 

could result in significant additional costs. Another report (OIG– 

07–27) from the DHS IG dated February 9, 2007, found that ICGS 

failed to install low-smoke cable and other elements of the command, control, communications, computers, intelligence, surveillance, and reconnaissance (C4ISR) system on the converted 123- 

foot vessels, as required by the contract specifications. 

The Defense Acquisition University, housed within the Department of Defense (DOD), released a study on February 5, 2007, 

which found problems with nearly every aspect of the Deepwater 

program, including the implementation of the ‘‘system-of-systems’’ 

approach; the LSI contractual arrangement; and Coast Guard management, workforce and organizational structure, financial management, and logistics. As problems with the Deepwater program 

continued to grow in 2007, the Coast Guard began to transition 

away from the system-of-systems approach and use of a private 

sector entity as an LSI, toward a more conventional approach focused on acquisitions at the asset level, with the Coast Guard serving as the systems integrator for each acquisition program. In the 

last two years, the Coast Guard has assumed the role of systems 


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integrator for the overall Deepwater program, reduced the work 

being performed under contract by ICGS, and has undertaken a reassessment of needs with regard to Deepwater asset capabilities 

and numbers. The Coast Guard also is applying more rigorous 

processes and procedures contained in its revised Major Systems 

Acquisition Manual, although it has bypassed these requirements 

in more than one instance. 

On April 22, 2009, GAO provided testimony (GAO-09-620T) to 

Congress in which it estimated that the cost of the Deepwater program could increase by as much as $2.1 billion, bringing the total 

cost of the program to an estimated $26.3 billion. At that time GAO 

also noted that, as the Coast Guard continues to assume the role 

of systems integrator for the acquisition of various Deepwater assets and gains increased insight into what it is buying, further cost 

growth may be observed. More recently, on July 14, 2009, GAO released a report (GAO–09–682) which included a revised estimated 

Deepwater cost increase of $2.7 billion, bringing the total cost to 

an estimated $26.9 billion. 

The Coast Guard has made, and continues to make, changes in 

its management of the Deepwater program and its major systems 

acquisition requirements more broadly in order to address Congressional concerns. However, evidence of departures from those new 

requirements, coupled with ever-growing cost projections and 

project timelines, continue to be significant sources of apprehension. 

SUMMARY OF PROVISIONS

S. 1194, as reported, would authorize appropriations in Title I for 

the Coast Guard accounts covered in the bill totaling approximately $9.4 billion for each of FY 2010 and FY 2011. 

Operating Expenses—The Coast Guard uses over two-thirds of its 

total budget conducting operations in support of its primary mission areas: protecting public safety and the marine environment; 

safeguarding our ports, waterways, and coastal areas; enforcing 

laws and treaties, including preventing illegal drug trafficking, 

interdicting illegal aliens and enforcing fisheries laws; maintaining 

aids to navigation; and preserving defense readiness. For each of 

FY 2010 and FY 2011, S. 1194 would authorize $6.556 billion for 

operating expenses, an increase of approximately $326 million from 

the FY 2009 appropriated level. Of that amount, $24.5 million 

would be transferred from the Oil Spill Liability Trust Fund to the 

Operating Expenses account. 

AC&I—AC&I funds are used to pay for major capital improvements, including vessel and aircraft acquisition and rehabilitation, 

information management, and construction programs at selected 

facilities. Major AC&I projects include arming helicopters; recapitalizing the National Distress and Response System; implementing 

the vessel Automatic Identification System (AIS); aircraft sensor, 

avionics, and engine upgrades; the Integrated Deepwater System 

project; and various shore facility upgrades to those units in need. 

For each of FY 2010 and FY 2011, S. 1194 would authorize $1.384 

billion. The AC&I authorization directs that $20 million would be 

transferred from the Oil Spill Liability Trust Fund to the AC&I account. 


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Retired Pay—Funds from this account are used for retired pay, 

annuities, and medical care for retired military personnel and 

former Lighthouse Service members, their dependents, and their 

survivors under chapter 55 of title 10, United States Code. S. 1194 

would authorize $1.361 billion for this account for each of FY 2010 

and FY 2011. 

Environmental Compliance and Restoration—This account provides resources to bring current and former Coast Guard facilities 

into compliance with national environmental standards. S. 1194 

would authorize $13.198 million for this account for each of FY 

2010 and FY 2011. 

RDT&E—Funds from this account are used for applied scientific 

research that aids in the development of hardware, procedures, and 

systems that directly contribute to increasing the productivity of 

Coast Guard operating and regulatory programs. S. 1194 would authorize $19.745 million for this account. 

Reserve Program—The Coast Guard Reserve Forces provide 

trained and qualified personnel available for active duty in time of 

war or national emergency and at such other times as the national 

security requires. Reserve personnel maintain their readiness 

through realistic coordinated mobilization exercises, formal military training and duty alongside regular Coast Guard members 

during routine and emergency operations. S. 1194 would authorize 

$133.6 million to provide resources to fully train, support, and sustain a reserve force of approximately 8,100 members. 

Title II of S. 1194, as reported, would authorize the Coast Guard 

to enter into beneficial public-private partnerships, address administrative needs of the Coast Guard, and increase the authorities of 

the Coast Guard with respect to maritime authorities and activities 

with foreign governments. 

Title III of S. 1194, as reported, would improve the organizational flexibility of the Coast Guard. 

Title IV of S. 1194, as reported, would authorize several significant changes in the way the Coast Guard utilizes its Reserve personnel, conducts officer promotions, and retains personnel leave. 

Title V of S. 1194, as reported, contains provisions that would address the need for comprehensive reform of the Coast Guard’s 

major systems acquisition processes and procedures. It would establish a leadership structure, direct accountability, and clear roles 

and responsibilities with regard to major acquisitions throughout 

the Coast Guard’s chain of command by, among other things, creating a Chief Acquisition Officer at the Assistant Commandant 

level with mandatory acquisition and contracting qualifications and 

training. It would also prohibit the Coast Guard’s continued use of 

a ‘‘lead systems integrator’’ throughout the entire Coast Guard on 

the date of enactment, except in limited instances in which the 

mechanism will instead be phased out by the end of 2012. 

Title VI of S. 1194, as reported, includes several provisions that 

would aid in improving navigation of vessels and the authority of 

the Coast Guard to regulate shipping. 

Title VII of S. 1194, as reported, would require that, when the 

Coast Guard is authorized by law to transfer ownership of a vessel 

to an eligible entity for use for educational, cultural, historical, 

charitable, recreational, or other public purposes, such a transfer 

must be conducted through the General Services Administration. 


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Title VIII of S. 1194, as reported, includes several provisions 

found in S. 684, the Oil Pollution Prevention and Response Act of 

2009, that would provide the Coast Guard and the National Oceanic and Atmospheric Administration (NOAA) with additional authorities to deal with oil spills under OPA 90. 

Title IX of S. 1194, as reported, includes several miscellaneous 

provisions that relate to the Coast Guard and Coast Guard missions. 

LEGISLATIVE HISTORY

S. 1194 was introduced on June 4, 2009, by Senator Cantwell, 

Senator Snowe, Senator Rockefeller, and Senator Hutchison, and 

was referred to the Committee on Commerce, Science, and Transportation. An oversight hearing on Coast Guard issues was held on 

July 7, 2009. On July 8, 2009, the Committee ordered that S. 1194 

be reported with an amendment in the nature of a substitute. 

ESTIMATED COSTS

In accordance with paragraph 11(a) of rule XXVI of the Standing 

Rules of the Senate and section 403 of the Congressional Budget 

Act of 1974, the Committee provides the following cost estimate, 

prepared by the Congressional Budget Office: 

SEPTEMBER 24, 2009. 

Hon. JOHN D. ROCKEFELLER IV, 

Chairman, Committee on Commerce, Science, and Transportation, 

U.S. Senate, Washington, DC. 

DEAR MR. CHAIRMAN: The Congressional Budget Office has prepared the enclosed cost estimate for S. 1194, the Coast Guard Authorization Act for Fiscal Years 2010 and 2011. 

If you wish further details on this estimate, we will be pleased 

to provide them. The CBO staff contact is Deborah Reis. 

Sincerely, 

DOUGLAS W. ELMENDORF. 

Enclosure. 

S. 1194—Coast Guard Authorization Act for Fiscal Years 2010 and 

2011 

Summary: S. 1194 would amend various laws that govern the activities of the U.S. Coast Guard (USCG). The bill also would authorize appropriations totaling nearly $16.4 billion through fiscal 

year 2014, primarily for ongoing USCG operations during 2010 and 

2011. CBO estimates that appropriating the amounts specifically 

authorized by the bill (or estimated to be necessary to carry out 

title V) would result in discretionary spending of about $16 billion 

over the 2010–2014 period. 

Implementing title V, which addresses the Coast Guard’s acquisition practices, could result in future savings in discretionary spending, but CBO cannot estimate such savings or clearly identify how 

much of that savings should be attributed to the legislation rather 

than to reforms that the Coast Guard has already begun implementing under existing authority. 

Enacting S. 1194 would increase direct spending by an estimated 

$6 million over the 2010–2019 period. First, the bill would increase 


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certain annual payments made from the Oil Spill Liability Trust 

Fund (OSLTF) by $4 million over the 2010–2019 period. The bill 

also would reduce offsetting receipts (a credit against direct spending) by directing the Coast Guard to donate—rather than sell—certain properties to local governments in Michigan. We estimate that 

the resulting loss of receipts would total about $2 million over the 

2010–2019 period. Enacting S. 1194 would not affect revenues. 

S. 1194 contains intergovernmental and private-sector mandates 

as defined in the Unfunded Mandates Reform Act (UMRA) because 

it would increase the costs of complying with existing mandates related to active-duty personnel in the Coast Guard. 

The bill also would impose additional intergovernmental mandates by preempting state laws. CBO estimates that the compliance costs for public entities would not exceed the annual threshold 

established in UMRA for intergovernmental mandates ($69 million 

in 2009, adjusted annually for inflation). In addition, the bill would 

impose additional private-sector mandates on owners and operators 

of certain vessels and facilities. The cost of most of the mandates 

on private entities would be small; however, the costs of some mandates are uncertain and would depend on future regulations. 

Therefore, CBO cannot determine whether the aggregate cost of 

the mandates in the bill would exceed the annual threshold established in UMRA for private-sector mandates ($139 million in 2009, 

adjusted annually for inflation). 

Estimated cost to the Federal Government: The estimated budgetary effects of S. 1194 are summarized in the following table. The 

costs of this legislation fall within budget functions 300 (natural resources and environment) and 400 (transportation). 

Basis of estimate: For this estimate, CBO assumes that S. 1194 

will be enacted early in fiscal year 2010 and that the amounts specifically authorized by the bill or estimated to be necessary will be 

appropriated for each year. Estimated outlays are based on historical spending patterns for the authorized activities. 

Spending subject to appropriation 

The proposed authorization levels shown in the table are those 

specified by S. 1194 for ongoing Coast Guard activities and for certain new or existing programs of the Department of Transportation 

(DOT) and the National Oceanic and Atmospheric Administration 

(NOAA). The table excludes $24 million to be derived from the 

OSLTF for USCG operating expenses because that amount is already authorized under existing law. 

By fiscal year, in millions of dollars— 

2010 2011 2012 2013 2014 2010– 

2014 

2010– 

2019 

CHANGES IN SPENDING SUBJECT TO APPROPRIATION 

USCG authorizations:1

Authorization level .............................................. 8,083 8,083 0 0 0 16,166 16,166 

Estimated outlays ............................................... 5,489 6,886 1,987 927 449 15,738 16,166 

USCG acquisition reform: 

Estimated authorization level ............................. 5 0 0 0 0 5 5 

Estimated outlays ............................................... 3 2 0 0 0 5 5 

LORAN–C: 

Authorization level .............................................. 37 37 0 0 0 74 74 

Estimated outlays ............................................... 29 35 7 2 1 74 74 


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By fiscal year, in millions of dollars— 

2010 2011 2012 2013 2014 2010– 

2014 

2010– 

2019 

Grants to tribes for oil spill recovery: 

Authorization level .............................................. 1 1 1 1 1 3 3 

Estimated outlays ............................................... 1 1 1 1 1 3 3 

NOAA authorizations: 2

Authorization level .............................................. 26 25 25 25 25 126 251 

Estimated outlays ............................................... 17 22 24 25 25 113 238 

Total proposed changes: 

Estimated authorization level .................... 8,152 8,146 26 26 26 16,374 16,499 

Estimated outlays ...................................... 5,539 6,946 2,019 955 476 15,933 16,486 

CHANGES IN DIRECT SPENDING 

Estimated budget authority ......................................... 0 * * * * 2 6 

Estimated outlays ........................................................ 0 * * * * 2 6 

1 The USCG received appropriations totaling over $8.3 billion for fiscal year 2009, including $240 million under the American Recovery and Reinvestment Act of 2009. 2 NOAA authorizations and outlays of $25 million a year would continue over the 2015–2019 period. 

Notes: USCG = U.S. Coast Guard; NOAA = National Oceanic and Atmospheric Administration; LORAN–C = Long-Range Aid to Navigation;

* = less than $500,000; numbers may not add up to totals because of rounding. 

USCG Authorizations. Title I would reauthorize funding for ongoing USCG activities for 2010 and 2011. Specifically, for each of 

the two years, title I would authorize the appropriation of about 

$6.7 billion for USCG operations (including $134 million for reserve 

training and $13 million for environmental compliance), about $1.4 

billion for capital acquisitions, and nearly $20 million for research 

programs. Of the amounts authorized by title I for each year, $44 

million would be derived from the OSLTF. 

CBO estimates that appropriating the amounts specified in title 

I for ongoing USCG activities would cost nearly $5.5 billion in 2010 

and by about $15.7 billion over the 2010–2014 period. 

Title I also would authorize the appropriation of about $1.4 billion for Coast Guard retirement benefits in each of fiscal years 

2010 and 2011, but those amounts are excluded from this estimate 

because such benefits are considered an entitlement under current 

law and are not subject to appropriation. Thus, authorizing those 

amounts would have no additional budgetary impact. 

USCG Acquisition Reform. Title V addresses the contracting 

practices used by the Coast Guard to acquire capital assets such 

as vessels and aircraft. Assuming appropriation of the necessary 

amounts, CBO estimates that implementing title V would cost the 

USCG about $5 million over the next two years, mostly to develop 

life-cycle cost estimates for current acquisition initiatives. We estimate that other administrative costs for additional testing and certification (and to develop life-cycle cost estimates for major acquisition initiatives in the future) would not significantly affect the 

agency’s annual budget. 

Title V would restrict the Coast Guard’s reliance on private entities to manage major acquisitions and would require the agency to 

revise other procurement practices to rectify problems identified by 

the Department of Defense (DoD) and other federal agencies. It 

also would require that many future acquisitions be open to competition and be subject to specified testing, analysis, and certification requirements. Finally, the title would require the Coast 

Guard to hire additional contracting and management personnel 

and to produce various reports on its acquisition activities. 

The contracting reforms required by S. 1194 could result in lower 

procurement expenditures in the future. Much of the long-term 


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savings, however, might occur even in the absence of the legislation 

because the Coast Guard is already implementing many of those 

reforms, including hiring additional contracting personnel. CBO 

cannot estimate the likely size of cost savings from improving procurement practices or clearly identify what proportion of such savings would be attributable to the legislation and what share would 

result from changes that the Coast Guard is already implementing. 

Any savings realized by the Coast Guard as a result of the legislation would depend on future changes in the level of discretionary 

appropriations for capital acquisitions. Annual funding for Coast 

Guard acquisition has risen rapidly in recent years—from about 

$640 million in fiscal year 2002 to nearly $1.6 billion for 2009. (The 

2009 figure includes nearly $100 million provided by the American 

Recovery and Reinvestment Act of 2009.) Most of the increase over 

this period stems from new funding for the Integrated Deepwater 

Initiative, which will provide for the replacement of many of the 

agency’s vessels, aircraft, and other assets at an estimated cost of 

between $25 billion to $30 billion over the next 25 years. LORAN–C. Title VI would authorize the appropriation of $37 

million for each of fiscal years 2010 and 2011 to the Department 

of Transportation to reimburse the Coast Guard for operating the 

current system of long-range aids to navigation (known as 

LORAN–C). Appropriating the authorized amounts would cost $74 

million over the 2010–2014 period. 

Grants to Tribes for Oil Spill Recovery. Title VII would authorize the appropriation of $500,000 a year through 2014 for grants and 

other assistance to tribal governments. The funding would be used 

by the tribes to help respond to oil spills. Appropriating the authorized amounts would cost about $3 million over the 2010–2014 period. 

NOAA Authorizations. S. 1194 would authorize appropriations 

for certain programs carried out by NOAA. CBO estimates that appropriating those amounts would cost $113 million over the 2010– 

2014 period. The authorizations for NOAA include: 

• $15 million a year from the OSLTF for oil-spill response 

and damage assessments; 

• $10 million a year through 2014 for a program to prevent 

oil spills from small vessels; and 

• $0.7 million in 2010 to conduct an emergency drill in the 

Olympic Coast National Marine Sanctuary. 

Changes in direct spending 

Enacting section 814 would increase the annual payment made 

from the Oil Spill Liability Trust Fund to OSRI (an Alaska-based 

research institute) by an estimated $400,000, resulting in additional direct spending of about $4 million over the 2010–2019 period. 

Under current law, OSRI receives an annual payment from the 

OSLTF equal to the interest credited (in the previous year) on 

$22.5 million of that fund’s unspent balances. Such payments— 

about $1 million a year—are not subject to appropriation action 

and are used by the institute to carry out research on oil spills. 

Section 814 would increase the portion of the trust fund’s principal that would be held on behalf of OSRI by about $13 million, 

resulting in the increase in annual payments beginning in 2011. 


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Title IX would direct the USCG to donate certain real and personal property located in Michigan to local governments. CBO estimates that one of the affected assets—a 5.5-acre parcel of land in 

the city of Marquette—has significant market value. Based on local 

property values and on information provided by the General Services Administration regarding disposals of surplus USCG property, 

we estimate that donating the Marquette parcel to the city (rather 

than selling it under existing authority) would result in a loss of 

offsetting receipts of about $2 million over the next 10 years. We 

expect that all of the other affected property would either be retained by the Coast Guard or eventually donated to local governments under current law; therefore, donating those assets would 

result in no loss of offsetting receipts. 

Intergovernmental and private-sector impact: S. 1194 would impose mandates, as defined in UMRA, because it would increase the 

costs of complying with existing intergovernmental and private-sector mandates related to active-duty personnel in the Coast Guard. 

The bill also would impose additional intergovernmental mandates 

by preempting state laws. CBO estimates that the compliance costs 

for public entities would not exceed the annual threshold established in UMRA for intergovernmental mandates ($69 million in 

2009, adjusted annually for inflation). 

The bill also would impose additional new safety requirements 

on private entities. The costs to private entities to comply with 

some of the mandates in the bill are uncertain and would depend, 

in part, on future regulations. Therefore, CBO cannot determine 

whether the aggregate cost of the mandates in the bill would exceed the annual threshold established in UMRA for private-sector 

mandates ($139 million in 2009, adjusted annually for inflation). 

Mandates that apply to both public and private entities 

Increasing Authorized Coast Guard Personnel. The bill would increase the costs of complying with existing intergovernmental and 

private-sector mandates by increasing the number of active-duty 

personnel in the Coast Guard. The additional personnel would be 

eligible for protections under the Servicemembers Civil Relief Act 

(SCRA). Under SCRA, servicemembers have the right to maintain 

a single state of residence for purposes of paying state and local 

personal income taxes. They also have the right to request a deferral in the payment of certain state and local taxes and fees. SCRA 

also requires creditors to charge no more than 6 percent interest 

on servicemembers’ obligations when such obligations predate active-duty service and allows courts to temporarily stay certain civil 

proceedings, such as evictions, foreclosures, and repossessions. Extending these existing protections to additional servicemembers 

would constitute mandates as defined in UMRA and could result 

in lost revenues to government and private-sector entities. 

The number of active-duty servicemembers covered by SCRA 

would increase by less than 1 percent, CBO estimates. Servicemembers’ utilization of the various provisions of the SCRA depends 

on a number of uncertain factors, including how often and how long 

they are deployed. CBO expects, however, that relatively few of the 

added servicemembers would take advantage of the deferrals in 

certain state and local tax payments; the lost revenues to those 

governments thus would be insignificant. Moreover, because the inVerDate Nov 24 2008 03:15 Nov 03, 2009 Jkt 089010 PO 00000 Frm 00013 Fmt 6659 Sfmt 6602 E:\HR\OC\SR095.XXX SR095

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crease in the number of active-duty servicemembers covered by 

SCRA would be so small, CBO expects that the increased costs for 

private-sector entities also would be small. 

Mandates that apply to public entities only 

In addition to the mandates discussed above, the bill would preempt state and local authority governing vessels transferring oil. 

The bill also could preempt state authority by granting privately 

owned watercraft equal access to the Atlantic Intracoastal Waterway. Because preemptions limit the authority of state and local 

governments, they are considered intergovernmental mandates 

under UMRA, but CBO estimates that those preemptions would 

not impose significant additional costs on state, local, or tribal governments as regulators. 

Mandates that apply to private entities only 

Standards for Facilities and Vessels that Transfer Oil. S. 1194 

would require certain facilities and vessels to meet new safety 

standards when transferring oil. The bill would direct the Coast 

Guard to issue regulations to reduce the risk of oil spills in such 

operations. In implementing the standards, the Secretary would 

have to consider updating equipment requirements and operational 

procedures in high-risk areas. The costs of those requirements are 

uncertain and would depend upon future actions of the Secretary. 

Extension of Financial Responsibility Requirements. The bill 

would extend to tank vessels weighing more than 100 gross tons 

the current requirement that vessels establish and maintain evidence of financial responsibility sufficient to meet their liability in 

the event of an oil spill. According to the Coast Guard, such evidence is usually established through an insurance guarantee. In effect, this provision would require owners and operators to show 

proof of the insurance that they are already required to carry 

under current law. Consequently, CBO estimates that the cost to 

comply with this requirement would be small. 

Inspection Requirements for Towing Vessels. The bill would require the Secretary of Homeland Security to issue a final rule for 

inspections of towing vessels within two years of the date of enactment. Current law requires the Secretary to issue regulations for 

the inspection of towing vessels and authorizes the Secretary to establish a safety management system. To the extent that the bill 

would accelerate the implementation of any of those requirements, 

the bill would impose a private-sector mandate. Based on information from the Coast Guard, CBO expects that the cost of the mandate, if imposed, would be relatively small. 

Estimate prepared by: Federal Spending: Deborah Reis; Impact 

on State, Local, and Tribal Governments: Ryan Miller; Impact on 

the Private Sector: Amy Petz and Jacob Kuipers. 

Estimate approved by: Theresa Gullo, Deputy Assistant Director 

for Budget Analysis. 

REGULATORY IMPACT STATEMENT

In accordance with paragraph 11(b) of rule XXVI of the Standing 

Rules of the Senate, the Committee provides the following evaluation of the regulatory impact of the legislation, as reported: 


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NUMBER OF PERSONS COVERED

S. 1194 as reported by the Committee would authorize appropriations to continue existing Coast Guard programs and make a number of changes to current law. The bill would have little, if any, 

regulatory impact. It would require changes to the contracting approach used by the Coast Guard in its current and future major 

systems acquisitions, and improvements to the Coast Guard’s management of this program. 

ECONOMIC IMPACT

S. 1194 would enhance existing Coast Guard authorities and authorize funding for Coast Guard activities that have a positive impact on the U.S. economy by ensuring the safety and security of 

maritime commerce and enforcing our fisheries laws. For example, 

the provisions of title VIII would improve oil spill prevention and 

response capabilities that could assist in avoiding future incidents 

with a negative economic impact at the local, State, and Federal 

levels. The legislation also contains changes to the contracting approach used by the Coast Guard in its current and future major acquisitions, including requirements that will increase competition 

and improve contractor oversight, all of which are aimed at reducing unnecessary costs to taxpayers and the Federal government. 

PRIVACY

The reported bill would have little, if any, impact on the personal 

privacy of individuals. 

PAPERWORK

The reported bill should not significantly increase paperwork requirements for individuals and businesses. 

CONGRESSIONALLY DIRECTED SPENDING

In compliance with paragraph 4(b) of rule XLIV of the Standing 

Rules of the Senate, the Committee provides the following identification of congressionally directed spending items contained in the 

bill, as reported: 

Section Provision Member 

Sec. 805 Olympic Coast National 

Marine Sanctuary 

Senator Cantwell 

Sec. 814 Oil spill liability trust fund 

investment amount 

Senator Begich 

SECTION-BY-SECTION ANALYSIS

TITLE I—AUTHORIZATION

Section 101. Authorization of appropriations 

This section would authorize funds for each of fiscal years 2010 and 2011 at the following levels: $6.556 billion for operating expenses; $1.384 billion for AC&I; $1.361 billion for retired pay; $13.2 

million for environmental compliance and restoration; $91.7 million 

for RDT&E; and $133.6 million for the reserve program. 


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Section 102. Authorized Levels of Military Strength and Training 

This section would authorize a Coast Guard end-of-year strength 

of 49,954 active duty military personnel for fiscal year 2010 and 

52,452 active duty military personnel for fiscal year 2011. The authorized strength does not include members of the Ready Reserve 

called to active duty for special or emergency augmentation of regular Coast Guard forces for periods of 180 days or less. This section 

also would authorize average military training student loads for 

fiscal year 2010 and 2011 as follows: 

Training FY 2010 Student Years FY 2011 Student Years 

Recruit/Special 2,500 2,625 

Flight 170 179 

Professional 350 368 

Officer Acquisition 1,300 1,365 

TITLE II—ADMINISTRATION

Section 201. Authority to distribute funds through grants, cooperative agreements, and contracts to maritime authorities and organizations 

This section would give the Coast Guard limited authority to provide financial support (approx. $100,000 per year) to international 

maritime authorities and organizations that collect and maintain 

databases in order to obtain information on foreign vessels and 

ports that is directly linked to maintaining and enhancing United 

States maritime safety and security. The provision requires the 

Commandant to consult with the Secretary of State when providing 

such support to international authorities and organizations. In 

order to access global safety and security information on foreign 

vessels, the U.S. entered into an agreement with six foreign maritime authorities to form EQUASIS, a global clearinghouse for Port 

State Control information from all countries. However, current 

statutory authority does not permit the Coast Guard to use appropriated funds to support, maintain, and expand these international 

Port State Control efforts of EQUASIS and other similar systems. 

Section 202. Assistance to foreign governments and maritime authorities 

Section 202 of the Coast Guard and Maritime Transportation Act 

of 2006 amended 14 U.S.C. 149, which authorizes the Coast Guard 

to provide technical assistance, including law enforcement and 

maritime safety and security training, to foreign maritime authorities in conjunction with regular Coast Guard operations. The Coast 

Guard may provide such technical assistance in coordination with 

the Secretary of State. 

This section would clarify the Coast Guard’s authority to expend 

funds to assist foreign governments and maritime authorities, including the detail of personnel, convening conferences and seminars, and distributing publications designed to develop the maritime capabilities of key partner nations, all of which might be considered outside the scope of traditional ‘‘technical assistance.’’ 


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Section 203. Cooperative agreements for industrial activities 

This section would simplify accounting requirements by authorizing appropriations to remain available for payment beyond the 

year in which they are appropriated for industrial work performed 

by the Coast Guard for the Department of Defense or Department 

of Homeland Security. 

Section 204. Defining Coast Guard vessels and aircraft 

This section would amend title 14, United States Code, by adding 

section 638a. The new section would define ‘‘Coast Guard vessels 

and aircraft’’ for the purposes of 14 U.S.C. 637 and 638. The new 

definition would include non-traditional vessels and aircraft from 

which Coast Guard personnel may conduct Coast Guard missions 

and exercise Coast Guard authority. This would expand the type of 

assets from which the Coast Guard may exercise its authority to 

enforce U.S. law, while ensuring that the men and women of the 

Coast Guard are given the appropriate statutory protections. 

TITLE III—ORGANIZATION

Section 301. Vice commandant; vice admirals 

This section would increase the organizational flexibility of the 

current Coast Guard command structure as well as increase alignment with other armed forces. 

Section 301(a) would change the vice commandant position from 

a 3-star position to a 4-star position, which will increase the Coast 

Guard’s alignment with other armed forces. 

Section 301(b) would create a new structure for vice admirals. 

Section 50(a)(1) of title 14, United States Code, authorizes the 

President to appoint no more than four ‘‘positions of importance 

and responsibility.’’ This provision would not set a percentage distribution of commissioned officers on active duty in general officer 

or flag officer grades as in the other armed forces. Instead, the provision would parallel the command structure of the Marine Corps, 

fixing the number of vice admirals at no more than four. 

Section 50(a)(2) of title 14, United States Code, would retain the 

existing scheme for the nomination, appointment and confirmation 

of officers. However, this provision contemplates the reappointment 

of officers and expressly provides for Senate confirmation prior to 

such reappointment. 

Section 50(b)(1) of title 14, United States Code, would carry forward the language of 14 U.S.C. 50(b) and 50a(b) with regard to the 

effective and termination dates that the officer assumes and attaches from duty. 

Section 50(b)(2) of title 14, United States Code, would provide the 

treatment of grade of officers who are transferred from one appointment, hospitalized, or awaiting retirement. Section 50(c) of 

title 14, United States Code, would adopt like treatment of permanency of grade and promotion afforded to such officers of the other 

armed forces. Section 50(d) of title 14, United States Code, would 

borrow the notification and recommendation concept of 10 U.S.C. 

601(d)(2). 


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Section 302. Number and distribution of commissioned officers on 

the Active Duty Promotion List 

This section would amend section 42 of title 14, United States 

Code, to permit the Secretary to continue the 6,700 Coast Guard 

commissioned officer cap beyond FY 2006, applicable only to the 

commissioned officers on the Coast Guard Active Duty Promotion 

List, and provide guidance for the management of these commissioned officers. 

Subsection (a), in addition to continuing the 6,700 beyond FY 

2006, would provide a temporary two percent (2%) increase, or 

buffer, to accommodate a recurrent and temporary, annual spike in 

the number of Coast Guard commissioned officers. Current officer 

management practice is to incorporate a buffer of approximately 

200 into the officer cap to accommodate the number of commissioned officers the Coast Guard Academy graduates annually, 

thereby ensuring the statutory cap of 6,700 is not exceeded. 

TITLE IV—PERSONNEL

Section 401. Leave retention authority 

This section would give the Secretary, and all other service secretaries, the authority to allow service members to retain leave they 

would otherwise forfeit due to support of major disasters or other 

emergencies declared by the President under the Robert T. Stafford 

Disaster Relief and Emergency Assistance Act (Public Law 93–288, 

42 U.S.C. 5121 et seq.). 

In recent years, several major events such as the September 11, 

2001, attacks and Hurricanes Katrina, Rita, and Wilma prevented 

many Coast Guard members from taking leave that they had accrued before the end of a fiscal year. Since only 60 days of leave 

may be carried over from one fiscal year to the next, this resulted 

in Coast Guard members losing leave they earned. 

Section 402. Legal assistance for Coast Guard reservists 

Currently, Coast Guard reservists are not covered under 10 

U.S.C. 1044, which allows for legal assistance in connection with 

their personal civil affairs. This provision would amend 10 U.S.C. 

1044(a)(4) to establish parity among all similarly situated reservists by making Coast Guard reservists who have served on active 

duty for more than 30 days under mobilization authority eligible 

for legal assistance upon release from active duty. 

Section 403. Reimbursement for certain medical related expenses 

This section would amend 10 U.S.C. 1074i to allow for the reimbursement of travel-related expenses when a service member is 

stationed on an INCONUS island and his/her family member is referred to a specialty care provider off-island that is less than 100 

miles from the primary care provider. Currently, there is an authorization for the reimbursement of travel-related expenses incurred by the beneficiaries of active duty military personnel when 

their primary care physician refers such beneficiary to a specialty 

care provider who provides services more than 100 miles from the 

location in which the primary care physician provides services. Although the medical-related travel costs are covered for active duty 

members receiving treatment, such expenses incurred by family 


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members are currently not reimbursable because the travel distance is less than 100 miles. 

Section 404. Reserve commissioned warrant officer to lieutenant 

program 

Currently, the Coast Guard has more commissioned warrant officers (CWOs) than vacant billets on the Reserve Personnel Allowance List; inversely, there are fewer junior officers than authorized 

billets. Also, there is no presidential authority to appoint temporary commissioned officers in the Reserves (in a grade not above 

lieutenant) from among the Reserve CWOs. 

This section would expand the President’s existing authority to 

appoint temporary commissioned officers in the Regular Coast 

Guard from among CWOs to cover the appointment of temporary 

commissioned officers in the Reserves (in a grade not above lieutenant) from among Reserve CWOs. The qualifications and requirements that apply to appointments from among the CWOs in the 

Regular Coast Guard would apply to those appointments from the 

Reserve CWOs. 

Section 405. Enhanced status quo officer promotion system 

This section would address a deficiency in the existing Coast 

Guard officer promotion system regarding the Coast Guard’s ability 

to fulfill specialty needs of its officer corps which may arise from 

time to time. It would preserve the ‘‘best qualified’’ promotion system while affording the Commandant the flexibility, when needed, 

to furnish selection boards with specific direction to consider the 

specialty needs of the officer corps during the selection programs. 

Such specialty needs selections would be limited, as are ‘‘below promotion zone’’ selections. 

Section 406. Appointment of civilian Coast Guard judges 

This section would provide a limited authority to enable the Secretary to appoint civilian judges to the Coast Guard Court as vacancies occur. As part of our armed forces, the Coast Guard is required to operate an Appellate Court to hear appeals from courtsmartial. In accordance with Article 66(a) of the Uniform Code of 

Military Justice, the judges on this court are a mixture of military 

and civilian personnel. 

Section 407. Coast Guard participation in the Armed Forces Retirement Home System 

This section would provide the Coast Guard parity with veterans 

of the other military services and allow Coast Guard enlisted and 

warrant officer personnel eligibility for admission into the Armed 

Forces Retirement Home (AFRH) system. The AFRH system is 

funded by a trust fund that receives revenues from small monthly 

contributions from all active duty enlisted and warrant officer personnel and a portion of all enlisted and warrant officer Uniform 

Code of Military Justice fines and forfeitures. Under current law 

(24 U.S.C. 401), only retirees from the Army, Navy, Air Force, and 

Marine Corps are eligible for admission into the AFRH. The Coast 

Guard is currently excluded, except when it operates as a service 

in the Navy. 


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Section 408. Crew wages on passenger vessels 

This section would impose a three year limitation on class action 

suits that are the subject of violations of Section 10313 and Section 

10504 of title 46, United States Code. Further, the provision permits the employer of a seaman to make payments to a seaman by 

direct deposit into a checking, savings or other such account of the 

seaman’s choosing and with the seaman’s explicit written authorization. 

TITLE V—ACQUISITION REFORM

Section 501. Chief acquisition officer 

This section would authorize the establishment of a chief acquisition officer who has acquisition management as their primary duty, 

to ensure that the Coast Guard acquires and delivers assets and 

capabilities in the best interest of the federal government and increases the Agency’s operational readiness and performance. This 

section would require, at minimum, that the Chief Acquisition Officer serve at the level of Assistant Commandant with a rank of 

Rear Admiral or be a career reserved civilian from the Senior Executive Service. 

This section also would require that the Chief Acquisition Officer 

satisfy a list of qualifications, primary among them having the 

highest Department of Homeland Security Level III acquisition certification, with ten years of acquisition experience, four of which 

were spent as either the program executive officer, program or deputy program manager of a Level I or Level II project or program, 

or a combination of such positions. Further, this section would define the functions of the Chief Acquisition Officer. The Chief Acquisition Officer will serve as the component acquisition executive for 

the Coast Guard. The Chief Acquisition Officer should also perform 

the duties of the Component Acquisition Executive pursuant to Departmental policies and procedures. 

Section 502. Acquisitions 

This section would create a new chapter 15 in title 14 of the 

United States Code, with the following subchapters: 

SUBCHAPTER 1—GENERAL PROVISIONS

Section 561. Acquisition directorate 

New section 561 of Title 14 would establish an acquisition directorate to provide oversight for the implementation and management of all Coast Guard acquisition processes, programs, and 

projects. 

Section 562. Senior acquisition leadership team 

New section 562 would mandate that the Commandant establish 

a leadership team to advise, inform, and support acquisition processes, programs, and projects that comprises the Vice Commandant, Deputy and Assistant Commandants, appropriate senior 

staff members, and any other Coast Guard officer or employee as 

designated by the Commandant. 


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Section 563. Improvements in Coast Guard acquisition management 

New section 563 would define the roles and responsibilities of 

program and project managers, as well as specify the level of certification required in order to be assigned to manage a program or 

project. In addition, this section would mandate that the Commandant issue guidance for program and project managers on tenure and accountability. Further, this section would specify positions 

that require certain competencies and functions to ensure that the 

Agency has the relevant expertise and responsibilities to carry out 

acquisition program functions. Also, this section would establish 

management information capabilities to improve workforce management, and identifies specific career paths to enable effective procurement activities. The requirements are intended to leverage Department-wide initiatives to improve acquisition management, 

while allowing for additional tailored measures to meet specific 

needs of the Coast Guard. 

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

New section 564 would require the Commandant to implement a 

program to recognize individuals and teams that contribute to successful acquisition program performance. It would mandate the establishment of specific award categories, criteria, and eligibility, in 

addition to procedures for the award of cash bonuses for civilian career employees. 

Section 565. Prohibition on use of lead systems integrators 

New section 565 would prohibit the use of a Lead Systems Integrator on the date of enactment of the Act. It would require full 

and open competition for any acquisition contract in accordance 

with Federal Acquisition Regulations. In addition, this section 

would ensure that the Coast Guard can continue, through contract 

closeout, to use a Lead Systems Integrator only for delivery orders 

and task orders for National Security Cutters 2 and 3, the C4ISR 

projects directly related to the Integrated Deepwater Program, and 

for the completion of the National Distress and Response System 

Modernization Program if the Commandant certifies that in so 

doing, the execution of such task orders and delivery orders is in 

the best interest of the government and is in accordance with Federal Acquisition Regulations. These exceptions would only be permitted through September 30, 2012. 

Section 566. Required contract terms 

New section 566 would apply to all major system acquisition 

projects or programs. It would prohibit self certification by a contractor or subcontractor, and require that all capabilities or assets 

under contract have a third party certification or be certified directly by the Commandant. Further, this section would require that 

contractor and subcontractor performance be based on the status of 

all work performed. In addition, this section would require that all 

contracts for the acquisition of air, surface, or shore capabilities be 

in compliance with the air, surface, or shore standard used by the 

Department of the Navy. This section also would require that any 

contract awarded to acquire an Offshore Patrol Cutter includes provisions specifying the service life, fatigue life, maximum range and 


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speed, and days underway in general Atlantic and North Pacific 

sea conditions that the cutter will be built to achieve. Lastly, this 

section would require that the Commandant establish and maintain Integrated Product teams and Technical Authorities to establish, approve and maintain technical requirements. 

Section 567. Department of Defense consultation 

New section 567 would require the Commandant to arrange for 

the Department of Defense to have a supporting role of contracting 

and management of Coast Guard acquisition programs. This section would allow the Coast Guard to enter into a memorandum of 

understanding or agreement with the Secretary of the Navy to leverage and obtain their research, development, and acquisition resources. Arrangements made with the Secretary of Defense shall be 

made with the concurrence of the Secretary. 

Section 568. Undefinitized contractual actions 

New section 568 would prohibit the use of undefinitized contracts 

by the Coast Guard unless such a contract is directly approved by 

the Chief Acquisition Officer of the Coast Guard. If the Chief Acquisition Officer approves requests for undefinitized contracts, this 

section would require agreement upon contractual terms, specification, and price within 180 days after the submission of the request 

for approval. Further, this section would provide a limitation on 

the obligation of funds that exceed 50 percent of the negotiated 

overall ceiling price until the contractual terms, specification, and 

overall price are definitized for such contractual action. This section would allow the Commandant to waive the application of this 

section if such a contract is necessary to support a contingency operation, a transportation security incident, an operation in response 

to an unacceptable threat to human health or safety, or an operation in response to a natural, major or emergency disaster as designated by the President. 

SUBCHAPTER 2—IMPROVED ACQUISITION PROCESS AND PROCEDURES

Section 571. Identification of major systems acquisitions 

New section 571 would require the Commandant to develop and 

implement mechanisms to support operational requirements for 

major systems acquisition programs and projects. Further, this section would stipulate that the Commandant may not initiate a 

major systems acquisition program or project until the following requirements are met: 

• A mission analysis to identify a clear mission need to address 

gaps in capability; 

• A mission needs statement; 

• An affordability assessment that includes an assessment of 

trade-offs; 

• A concept-of-operations document; 

• A capability development plan; and 

• A resource funding proposal. 


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Also, this section would require the Commandant to develop 

staffing predictions, establish performance initiatives, and determine preliminary training needs. 

Section 572. Acquisition 

New section 572 would mandate that the Commandant complete 

the objectives listed below prior to establishing a major systems acquisition program or project: 

• Establish clear operational requirements; 

• Develop an acquisition program or project baseline; 

• Conduct a life-cycle cost estimate; and 

• Complete an alternatives analysis conducted by a third party. 

In addition, this section would mandate the development and use 

of a Test and Evaluation Master Plan. This plan would require the 

establishment of a strategy to verify capability design and development, and require that adequate developmental and operational 

tests and evaluations are conducted. The Test and Evaluation Master Plan also would identify critical operational issues, operational 

test and evaluation phases, require early operational assessments, 

and would estimate the resources required for the test and evaluation activities. The Coast Guard may not move forward with a 

major systems acquisition program or project or award any production contract until the Test and Evaluation Master Plan is approved by the Chief Acquisition Officer. These procedures are consistent with the Department of Homeland Security’s acquisition 

procedures. 

Further, this section would mandate that, upon completion of the 

objectives above, and the development and approval of the Test and 

Evaluation Plan, a major systems acquisition program or project 

may not enter into the obtain phase until approval is granted by 

the Department of Homeland Security Acquisition Review Board or 

the Joint Review Board. 

Section 573. Preliminary development and demonstration 

New section 573 would require that all developmental and operational tests and evaluations are conducted in accordance with the 

master plan developed under section 572(c)(1), and would require 

the Commandant to ensure that during the preliminary development and demonstration phase major systems acquisition programs 

or projects demonstrate the following: 

• The design, manufacturing, and production solution is based 

upon a stable and cost-effective design; 

• The design is mature enough to commit to full scale production; 

and 

• The product capabilities meet contract specifications, acceptable 

operational performance requirements, and system security requirements. 

In addition, this section would require that the Coast Guard use 

third parties with expertise in testing and evaluating the capabilities or assets being acquired whenever the Coast Guard lacks the 

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cerns identified during the development and demonstration phase 

be communicated no later than 30 days after completion of the test, 

evaluation, or both as the case may be, to the program or project 

manager and to the Chief Acquisition Officer. 

This section also contains specific requirements that are to be 

met with regard to technical certification of major systems acquisition programs or projects. The Coast Guard would be mandated to 

certify major systems acquisition programs or projects through the 

Coast Guard’s technical authority after review by an independent 

third party. This review would be satisfied by the test and evaluation requirements described in subsection (b). This review requirement is not intended to diminish, limit, or otherwise affect the authority or responsibility of the Coast Guard technical authority, nor 

is it intended to make the Coast Guard technical authority subordinate to an independent third party or to impose a review requirement when the Coast Guard possesses the capability to conduct the 

tests and evaluations required by a master plan. All electronics on 

any asset that requires TEMPEST certification would be tested and 

certified in accordance with the Master Plan standards by an independent third party authorized by the federal government. 

Lastly, this section would mandate that all cutters acquired by 

the Coast Guard be classed by the American Bureau of Shipping 

before final acceptance, and that the Commandant may not proceed 

to full scale production, deployment, and support of a major systems acquisition program or project until approval is granted by 

the Department of Homeland Security Acquisition Review Board or 

the Joint Review Board. 

Section 574. Acquisition production, deployment, and support 

New section 574 would require the Commandant to conduct follow-on testing, monitor performance, and correct deficiencies for assets or systems acquired. In addition, the Commandant would be 

mandated to conduct acceptance tests and trials upon the delivery 

of each asset or system to ensure full operational capability is 

achieved. 

In addition, this section makes clear that the Commandant 

would be required to execute the production contracts, make sure 

the delivered products meet cost and schedule requirements in accordance with the acquisition program baseline, validate manpower 

and training requirements to support the operation of the acquired 

product or system, and prepare transition plans for programmatic 

sustainment, operations, and support. 

Section 575. Acquisition program baseline breach 

New section 575 would direct the Commandant to submit a report to Congress not later than 30 days after the date the Chief Acquisition Officer of the Coast Guard becomes aware of a breach of 

an acquisition program baseline for any Level I or Level II acquisition program. The breach would be defined as a likely cost overrun 

greater than 15 percent of the acquisition program baseline, a 

delay of more than 180 days in the delivery schedule or an anticipated failure for any individual asset or class of assets to satisfy 

any key performance threshold or parameter under the Acquisition 

Program Baseline. If substantial variances of greater than a 25 


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percent cost overrun or a delay of more than one year are likely, 

additional information would be required from the Commandant. 

SUBCHAPTER 3—DEFINITIONS

Section 581. Definitions 

New section 581 would define key terms used in the new chapter 

created by Sec. 502 of the Act. 

Section 503. Report and regulations on excess pass-through charges 

This section would require a report from the Comptroller General 

not later than 180 days after the date of enactment of the Act on 

pass-through charges on contracts, subcontracts, delivery orders, 

and task orders that were executed by a Lead Systems Integrator 

to the Coast Guard during the 3 calendar years preceding the date 

of enactment of this Act. In addition, this section would require the 

Commandant to prescribe regulations to ensure that such passthrough charges are not excessive in relation to the cost of work 

performed, and set forth clear standards for determining when no 

value has been added to a contract by a contractor or subcontractor. Also the regulations would set forth procedures for preventing the payment by the government of excessive pass through 

charges, and identify any exceptions determined by the Commandant to be in the best interest of the Government. 

TITLE VI—SHIPPING AND NAVIGATION

Section 601. Technical amendments to Chapter 313 of title 46, 

United States Code 

This section would make two technical corrections to Chapter 

313 of title 46, United States Code. The first correction would clean 

up the Chapter by replacing references to the Secretary of Transportation (SECDOT) with the Secretary of the Department of 

Homeland Security (SECDHS), as appropriate. Replacing SECDOT 

with SECDHS is necessary to avoid confusion since certain Chapter functions and responsibilities were transferred, along with the 

responsible agency (i.e., the U.S. Coast Guard), to the Department 

of Homeland Security. The second would involve the Chapter’s penalty provision, section 31330, and its incorrect application of punishment for a mortgagor. 

Section 602. Clarification of rulemaking authority 

Section 102(a) of the Maritime Transportation Security Act of 

2002 (P. L. No. 107–295), codified in Chapter 701 of title 46, United 

States Code, forms the framework for the port security regulations 

which are an integral component of the Nation’s maritime security 

efforts. The authority necessary to implement Chapter 701 is found 

in section 102(d) of that Act, which would provide the Secretary 

with an interim final rule authority, as well as authority to ‘‘initiate’’ a rulemaking necessary to implement that Chapter. This 

subsection was not codified, most likely because its intended purpose was merely to expedite the Chapter 701 rulemaking process 

under extraordinary circumstances. 

Since publication of the final rule, section 102(d) supplemented, 

rather than defined, the Secretary’s regulatory authority to implement Chapter 701, while being unclear to the regulated public. 


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There is some potential to read Section 102(d) as limiting the Secretary’s ability to implement Chapter 701 beyond one year, rather 

than to give the Secretary an APA waiver. This section would clarify that the Secretary may issue regulations to implement, as necessary, Chapter 701 at any time. 

Section 603. Coast Guard maintenance of LORAN–C navigation 

system 

This section would put in place certain requirements related to 

the LORAN–C navigation system. LORAN–C is a terrestrial navigation system maintained by the Coast Guard for use by general 

aviators, recreational boaters, commercial fishermen, and the military as a back-up to the satellite-based Global Positioning System 

(GPS). GPS has been shown to be vulnerable to jamming and other 

interference. The eLORAN system is already in use in other countries and is considered by many to be a logical choice to replace 

LORAN–C as a GPS back-up. Despite the vulnerabilities of GPS, 

the President’s budget proposal for FY 2010 includes no funding request for the phasing out of LORAN–C or for the development and 

deployment of a next generation GPS back-up, such as eLORAN. 

Furthermore, the Coast Guard has indicated that after LORAN–C 

is terminated, it plans to sell the 24 LORAN–C station sites located 

throughout the United States, even though similar sites will be required to deploy a new terrestrial back-up to GPS like eLORAN. 

This section would require the Secretary of the Department of 

Transportation to maintain the LORAN–C navigation system until 

the Secretary of the Department in which the Coast Guard is operating is authorized by statute to stop operations of LORAN–C but 

expedite modernization projects necessary for transition to 

eLORAN technology. It would authorize appropriations to the Secretary of the Department of Transportation in the amount of $37 

million for each of FY 2010 and 2011 for capital expenses related 

to the LORAN–C infrastructure, in addition to funds authorized to 

the Coast Guard under section 101 of this Act for continued operation of the LORAN–C system. Finally, it would require the Secretary of Transportation, in cooperation with the Secretary of the 

Department in which the Coast Guard is operating, to provide a report to Congress no later than six months after the date of enactment of the Act providing a detailed 5-year plan for transition from 

LORAN–C to eLORAN technology as a national back-up to GPS. 

Section 604. Icebreakers 

This section would require the Coast Guard to perform an analysis comparing the costs and benefits of rebuilding, renovating, or 

improving its existing polar icebreaker fleet with the costs and benefits of constructing a new polar icebreaker fleet. It would also require the Coast Guard to perform an analysis of the impact on mission capacity and US presence in the polar regions over the next 

10 years if recapitalization of the polar icebreaker fleet is not fully 

funded. These analyses would be required to be based on the independent assessment of needs currently being undertaken as part of 

the High Latitude Study commissioned by the Coast Guard. Not 

later than one year after the date of enactment of this Act, the 

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ports to Congress containing the results of the analyses required 

under this section. 

Section 605. Vessel size limits 

Section 605 would amend vessel documentation law to provide 

flexibility for owners of fishing and fish processing vessels eligible 

under provisions of the American Fisheries Act (AFA) to participate 

in the rationalized Bering Sea/Aleutian Island Alaska pollock fishery to rebuild or replace AFA-eligible vessels without limits on vessel length, tonnage or horsepower. The provision would further provide that any catcher vessel delivering its catch to the onshore sector as defined in section 208(a) of the AFA can be removed from 

the fishery and that the catch history for any such vessel shall be 

assigned in the manner specified by the vessel owner to another 

vessel or vessels participating in the same fishery cooperative. The 

vessel, or vessels, to which the catch history is assigned would remain in the fishery cooperative for at least one year after the date 

on which the vessel being removed leaves the directed pollock fishery. 

Section 605(a)(5) and section 605(a)(7)(B) state that any vessel 

that is replaced or removed under these amendments would be permanently ineligible for a fishery endorsement. These provisions 

would further provide, however, that a replaced or removed vessel 

can be designated to replace another AFA-eligible vessel. The Committee intends that the implementing regulations issued by the 

Coast Guard provide a reasonable time period for a replaced or removed vessel that forfeits its fishery endorsement to reclaim a fishery endorsement if that vessel is to serve as a replacement vessel 

under this provision. 

Section 606. Phaseout of vessels supporting oil and gas development 

This section would extend the current authorization of vessels to 

support oil and gas operations on the U.S. Outer Continental Shelf 

(OCS) in the Beaufort Sea and the Chukchi Sea and provide for a 

flexible transition to the use of U.S.-flag anchor handling vessels 

in certain exploration activities for a limited period of time. Specifically, the language provides that, if the Secretary of Transportation 

certifies that a U.S.-flag anchor handling vessel is not reasonably 

available and suitable for these operations, then a foreign-flag anchor handling vessel may be used until the end of 2012, by an OCS 

lessee that has entered into a binding agreement to use a suitable 

anchor handling vessel documented as a U.S.-flag vessel or to be 

so documented upon completion of construction of that vessel. Further, the provision states that, if a binding agreement to employ 

another U.S.-flag anchor handling vessel is signed by or on behalf 

of a lessee as of December 31, 2012, and there are insufficient U.S.- 

flag anchor handling vessels to support operations, then a foreignflag anchor handling vessel can be used until the end of 2014. 

TITLE VII—VESSEL CONVEYANCE

This Title would authorize the Coast Guard to transfer ownership of any vessel to an eligible entity for use for educational, cultural, historical, charitable, recreational, or other public purposes. 

The transfer of ownership would be conducted by the General Services Administration. In this title, the term ‘‘eligible entity’’ means 


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a State or local government, nonprofit corporation, educational 

agency, community development organization, or other entity that 

agrees to comply with the conditions established under this section. 

TITLE VIII—OIL POLLUTION PREVENTION

Section 801. Rulemakings 

This section would address the issue of certain Coast Guard 

rulemakings which are required by current law, but for which a 

final rule has yet to be issued. Subsection (a) would require the 

Coast Guard to provide a report to Congress on the status of all 

rulemakings required but not yet finalized under Section 311 of the 

Federal Water Pollution Control Act (33 U.S.C. 1321). With respect 

to each such rulemaking, the report would include a detailed explanation of what steps have been completed, what areas remain to 

be addressed, the cause of any delays, and the date by which a 

final rule may reasonably be expected to be issued. Subsection (b) 

would require that, in the case of each rulemaking to which subsection (a) applies, a final rule must be issued as soon as practicable, but in no event later than 18 months after the date of enactment of this Act. Subsection (c) would require that, no later 

than one year after the date of enactment of this Act, the Secretary 

must issue a notice of proposed rulemaking regarding inspection 

requirements for towing vessels as described in section 3306(j) of 

title 46, United States Code. It also would require the Secretary to 

issue a final rule pursuant to that rulemaking no later than 2 

years after the date of enactment of this Act. 

Section 802. Oil spill response capability 

This section would amend existing federal pilot requirements 

under 46 U.S.C. 8502 to address specific tank vessel pilotage issues 

related to Buzzards Bay, Massachusetts. Subsection (a) would require that in any area of Buzzards Bay, Massachusetts, where a 

single-hull tank vessel carrying 5,000 or more barrels of oil or other 

hazardous material is required to be under the direction and control of a federal pilot, the pilot may not be a member of the crew 

of that vessel, and must be a pilot licensed by the Commonwealth 

of Massachusetts who is operating under a federal license. Subsection (b) would require the Secretary to transmit an annual report to Congress on the extent to which tank vessels on Buzzards 

Bay are using routes recommended by the Coast Guard. 

Section 803. Oil transfers from vessels 

This section would direct the Coast Guard to promulgate regulations to reduce the incidence of oil spills in operations involving the 

transfer of oil from or to tank vessels. It would require the Coast 

Guard, in doing so, to take into account the safety of personnel and 

the effectiveness of available procedures and equipment—a process 

which should include consultation with relevant advisory bodies. 

For example, the Coast Guard should consult with the Towing 

Safety Advisory Committee to ensure any proposed oil transfer 

rules will maintain or enhance safety while also reflecting operational realities and limitations associated with the transfer of oil 

from or to a tank vessel. 


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Section 804. Improvements to reduce human errors and near-miss 

incidents 

This section would require the Coast Guard to provide a report 

to Congress on the most frequent sources of human error that have 

led to oil spills from vessels, as well as on the most significant 

types of ‘‘near miss’’ incidents. It also would require the Coast 

Guard to make recommendations for reducing such incidents and 

to take appropriate action to reduce the risk of oil spills from 

human error. In order to encourage and facilitate voluntary disclosure of such information, this section includes important protections relating to the confidentiality and judicial discovery of voluntarily submitted information. 

Section 805. Olympic Coast National Marine Sanctuary 

This section would expand the application of the voluntary Area 

to Be Avoided (ATBA) encompassing the Olympic Coast National 

Marine Sanctuary so that it would apply to all non-tank vessels 

greater than 400 gross tons, other than fishing or research vessels 

engaged in fishing or research within the ATBA. This section also 

would authorize $700,000 for the Coast Guard and the NOAA to 

conduct a ‘‘Safe Seas’’ oil spill drill in the Olympic Coast National 

Marine Sanctuary in fiscal year 2010. This drill would be coordinated with Federal agencies and State, local, and tribal governments and other appropriate entities. 

Section 806. Prevention of small oil spills 

This section would require the Under Secretary of Commerce for 

Oceans and Atmosphere, in consultation with the Secretary of the 

Department of Homeland Security, the Coast Guard, and other appropriate agencies, to establish an assessment, outreach, training, 

and voluntary compliance program to prevent oil spills from smaller boats such as fishing boats, pleasure craft, or small commercial 

vessels. The Under Secretary would be authorized to provide grants 

to Sea Grant Colleges, State and tribal governments, and other appropriate entities to carry out this program. The provision would 

authorize $10,000,000 annually for each of fiscal years 2010 

through 2012 to carry out this section. 

Section 807. Improved coordination with tribal governments 

This section would require the Coast Guard to improve its consultation and coordination process with Federally-recognized tribes 

with respect to oil spill prevention, preparedness, and response. It 

also would require the Coast Guard to include tribes whose natural 

and cultural resources are likely to be impacted by a spill as part 

of the incident response team for such spill, thus ensuring that the 

tribe would have an integral role in decision-making related to the 

response effort and be appropriately recognized as a major stakeholder alongside local, State, and Federal entities. It would authorize the Coast Guard to enter into cooperative agreements with 

tribes for oil spill prevention, preparedness, and response. This section would authorize $500,000 for the establishment and implementation of such agreements for each of fiscal years 2010 through 

2014. 


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Section 808. Report on availability of technology to detect the loss 

of oil 

This section would require the Secretary to submit a report to 

Congress within one year after the date of enactment of this Act, 

on the availability, feasibility, and potential cost of technology that 

can detect the loss of oil carried as cargo or fuel on tank and nontank vessels greater than 400 gross tons. 

Section 809. Use of oil spill liability trust fund 

This section would authorize the National Oceanic and Atmospheric Administration to directly access up to $15 million annually 

from the Oil Spill Liability Trust Fund to carry out its functions 

relating to natural damage assessment and environmental restoration under OPA 90. Currently, NOAA must seek reimbursement 

from the Fund for expenses after the costs are incurred. 

Section 810. International efforts on enforcement 

This section would help ensure that the Coast Guard pursues 

stronger enforcement standards in the International Maritime Organization (IMO) relating to oil discharges, including joint enforcement operations, training, and stronger compliance mechanisms. 

Section 811. Higher volume port area regulatory definition change 

Section 811 would change the definition of ‘‘higher volume port 

area’’ for Puget Sound to make the westerly boundary begin at 

Cape Flattery, WA, the entry to the Strait of Juan de Fuca, given 

the volume of vessel traffic and the risk of oil spills throughout the 

entire length of the Strait of Juan de Fuca. It also would require 

the Coast Guard to complete its review of any changes to emergency response plans resulting from the definition change, within 

five years after the date of enactment. 

Section 812. Tug escorts for laden oil tankers 

This section would address several important issues relating to 

the need for adequate tug escorts for oil tankers in high traffic or 

high risk waterways. Subsection (a) would direct the Secretary of 

State, in consultation with the Commandant of the Coast Guard, 

to enter into negotiations with the Government of Canada to ensure that tug escorts are required for tank ships greater than 

40,000 dead weight tons transiting the Strait of Juan de Fuca, 

Strait of Georgia, and Haro Straight. Vancouver, British Columbia, 

is Canada’s largest port, with more than 2,600 vessel calls annually, and the traffic separation scheme in the region places much 

of this in-bound traffic in U.S. waters. The Commandant would be 

required to consult with the State of Washington and affected tribal governments during negotiations with Canada. Subsection (b) 

would require a report to Congress within one year of the date of 

enactment of this Act on the costs and benefits to require escort by 

at least two towing vessels, for vessels over 5,000 gross tons transporting oil in bulk in Rosario Strait and Puget Sound, Washington, 

including those portions of the Strait of Juan de Fuca east of Port 

Angeles, Haro Strait, and the Strait of Georgia which are subject 

to United States jurisdiction. 


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Section 813. Extension of financial responsibility 

This section would extend current requirements of financial responsibility in section 1016(a) of OPA 90 (33 U.S.C. 2716(a)) to all 

tank vessels over 100 gross tons, except non-self propelled vessels 

not carrying oil as cargo. This extension would ensure that responsible parties for vessels of this size-range are able to pay for claims 

related to spills. 

Section 814. Oil spill liability trust fund investment amount 

This section would increase the principal amount of funds that 

support the Oil Spill Recovery Institute by $12.851 million to account for reduced funding due to low interest rates and inflation. 

The OSRI conducts research and develops technologies to prevent 

and mitigate the effects of oil spills, and has a unique capability 

to conduct such research in Arctic and sub-Arctic regions. As resources are developed in these regions, new research will be needed 

to mitigate potential spills in extreme cold water and icy conditions. 

Section 815. Liability for use of single-hull vessels 

This section would include in the definition of ‘‘responsible party’’ 

under section 1001(32) of OPA 90 (33 U.S.C. 2701(32)) the owner 

of oil products being transported by a single-hull tank vessel (other 

than certain vessels described in 3703a(b)(3) of title 46, United 

States Code). 

TITLE IX—MISCELLANEOUS PROVISIONS

Section 901. Homeporting of the BIGELOW 

This section would require the Administrator of the National 

Oceanic and Atmospheric Administration to submit a report to 

Congress within 90 days of enactment of the Act regarding the 

agency’s progress in determination of a homeport for the FSV 

HENRY B BIGELOW, and would direct the agency to give special 

consideration to specific factors as a part of its decision making 

process. It also would require the Administrator to notify Congress 

of its proposed final decision, and the rationale upon which that 

proposed decision is based, at least 45 days before a final decision 

is implemented. The agency would be required to make a final decision on the homeport for the BIGELOW no later than December 

31, 2009. 

Section 902. Vessel Determination 

This section would provide that the documented United States 

vessels with official numbers 981472 and 988333 shall be deemed 

new vessels following the completion of their major shipyard reconstruction projects. The certificates of documentation showing the 

‘‘new vessel’’ status for those vessels may not be issued until there 

are no encumbrances on record for those vessels with the Coast 

Guard National Vessel Documentation Center at the time of 

issuance. The vessels would retain their official numbers of 981472 

and 988333, and this section would not change U.S. Coast Guard 

vessel safety and inspection requirements applicable to each vessel 

prior to the enactment of this section. 


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Section 903. Conveyance of the Presque Isle Light Station Fresnel 

Lens to Presque Isle Township, Michigan 

This section would authorize the Commandant of the Coast 

Guard to convey ownership of the fresnel lens from the historic 

Presque Isle Light Station Lighthouse, Michigan, to the Township 

of Presque Isle, Michigan, for operation as an aid to navigation. 

Section 904. Land Conveyance, Coast Guard Property in Marquette 

County, Michigan, to the City of Marquette, Michigan 

This section would authorize the Commandant of the Coast 

Guard to convey approximately 5.5 acres of real property and any 

improvements thereon, located in Marquette County, Michigan, 

and commonly referred to as Coast Guard Station Marquette and 

Lighthouse Point, to the City of Marquette, Michigan. 

Section 905. Large offshore supply vessels 

This section would require the Commandant of the Coast Guard 

to submit a report to Congress within one year after the date of 

enactment of the Act on the design, inspection, certification, manning, operation, and credentialing requirements for offshore supply 

vessels greater than 500 gross tons or an alternate tonnage as 

measured under specific sections of title 46, United States Code. In 

developing the required report to Congress, the Commandant 

would have the discretion to request the participation of senior representatives of any other Federal department or agency, as appropriate, and would be required to consider all applicable provisions 

of U.S. law and international conventions and agreements. 

Section 906. Conveyance of Decommissioned Coast Guard Cutters 

STORIS, IRIS, and PLANETREE 

This section would authorize the conveyance, without consideration, of the Coast Guard Cutters STORIS, IRIS, and PLANETREE 

to certain nonprofit entities upon being decommissioned. Specifically, the Commandant of the Coast Guard would be authorized to 

convey the STORIS to the Storis Museum in Juneau, Alaska, provided the museum agrees to use the vessel as a historic memorial, 

to make the cutter available to the public as a museum, and to 

work cooperatively with other museums to provide education and 

memorialize the maritime heritage of the STORIS and other maritime activities in Alaska, the Pacific Northwest, the Arctic Ocean, 

and adjacent oceans and seas. Similarly, the Commandant would 

be authorized to convey the IRIS and PLANETREE to the Anchor 

Program in Richmond, California, provided the Anchor Program 

agrees to use the vessels as job training sites, primarily in the San 

Francisco Bay and Puget Sound, leading to employment in the merchant marine and associated shore-side occupations. Certain other 

provisos would apply in the case of each conveyance authorized by 

this section, including: that the vessels not be used for commercial 

transportation purposes; and that the vessels be made available to 

the U.S. Government if needed in time of war or national emergency. The Commandant would also be authorized to convey to the 

recipient of a vessel under this section any excess equipment or 

parts from other decommissioned Coast Guard vessels for use to 

enhance the vessel’s operability and function for purposes of a public museum and historical display. 


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Section 907. Access for Personal Watercraft 

This section would require that personal watercraft have access 

to the Atlantic Intracoastal Waterway equal to all other vessels 

and rafts permitted on the Waterway. The access requirement 

would take effect 150 days after the date of enactment of the Act, 

and would remain in effect unless and until the Commandant of 

the Coast Guard, after a public hearing, concludes that personal 

watercraft have an environmental impact on the Atlantic Intracoastal Waterway that is more disparate than all other vessels and 

rafts permitted in the Waterway. The Commandant would be required to complete an environmental assessment regarding the impact of personal watercraft within 150 after the date of enactment 

of the Act. This section would also establish a working group consisting of representatives from the Coast Guard, the National Park 

Service, and other authorities and stakeholders with an interest in 

the Waterway access issue, for the purpose of developing recommendations concerning reasonable requirements for access to 

the Waterway. It also includes language preserving the authority 

of the Coast Guard to enforce safety regulations, and of the National Park Service and the Department of the Interior to ensure 

that watercraft observe all boating safety and marine mammal protections. 

CHANGES IN EXISTING LAW

In compliance with paragraph 12 of rule XXVI of the Standing 

Rules of the Senate, changes in existing law made by the bill, as 

reported, are shown as follows (existing law proposed to be omitted 

is enclosed in black brackets, new material is printed in italic, existing law in which no change is proposed is shown in roman): 

HOMELAND SECURITY ACT OF 2002 

SEC. 875. MISCELLANEOUS AUTHORITIES. 

[6 U.S.C. 455] 

(a) SEAL.—The Department shall have a seal, whose design is 

subject to the approval of the President. 

(b) PARTICIPATION OF MEMBERS OF THE ARMED FORCES.—With 

respect to the Department, the Secretary shall have the same authorities that the Secretary of Transportation has with respect to 

the Department of Transportation under section 324 of title 49, 

United States Code. 

(c) APPOINTMENT OF JUDGES.—The Secretary may appoint civilian employees of the Department of Homeland Security as appellate 

military judges, available for assignment to the Coast Guard Court 

of Criminal Appeals as provided for in section 866(a) of title 10, 

United States Code. 

ø(c)¿ (d) REDELEGATION OF FUNCTIONS.—Unless otherwise provided in the delegation or by law, any function delegated under this 

Act may be redelegated to any subordinate. 


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TITLE 10. ARMED FORCES 

SUBTITLE A. GENERAL MILITARY LAW

PART II. PERSONNEL

CHAPTER 40. LEAVE

§ 701. Entitlement and accumulation 

(a) A member of an armed force is entitled to leave at the rate 

of 21⁄2 calendar days for each month of active service, excluding periods of— 

(1) absence from duty without leave; 

(2) absence over leave; 

(3) confinement as the result of a sentence of a court-martial; 

and 

(4) leave required to be taken under section 876a of this title. 

Full-time training, or other full-time duty for a period of more than 

29 days, performed under section 316, 502, 503, 504, or 505 of title 

32 by a member of the Army National Guard of the United States 

or the Air National Guard of the United States in his status as a 

member of the National Guard, and for which he is entitled to pay, 

is active service for the purposes of this section. 

(b) Except as provided in subsections (d), (f), and (g), a member 

may not accumulate more than 60 days’ leave. However, leave 

taken during a fiscal year may be charged to leave accumulated 

during that fiscal year without regard to this limitation. 

(c) A member who retired after August 9, 1946, who is continued 

on, or is recalled to, active duty, may have his leave which accumulated during his service before retirement carried over to his period 

of service after retirement. 

(d) Notwithstanding subsection (b), during the period beginning 

on October 1, 2008, through December 31, 2010, a member may accumulate up to 75 days of leave. 

(e) Leave taken before discharge is considered to be active service. 

(f)(1)(A) The Secretary concerned, under uniform regulations to 

be prescribed by the Secretary of Defense, may authorize a member 

described in subparagraph (B) who, except for this paragraph, 

would lose at the end of the fiscal year any accumulated leave in 

excess of the number of days of leave authorized to be accumulated 

under subsection (b) or (d), to retain an accumulated total of 120 

days leave. 

(B) This subsection applies to a member who— 

(i) serves on active duty for a continuous period of at least 

120 days in an area in which the member is entitled to special 

pay under section 310(a) of title 37; 

(ii) is assigned to a deployable ship or mobile unit or to other 

duty designated for the purpose of this section; or 

(iii) on or after August 29, 2005, performs duty designated 

by the Secretary of Defense as qualifying duty for purposes of 

this subsection. 

(C) Except as provided in paragraph (2), leave in excess of the 

days of leave authorized to be accumulated under subsection (b) or 

(d) that are accumulated under this paragraph is lost unless it is 

used by the member before the end of the third fiscal year (or 


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fourth fiscal year, if accumulated while subsection (d) is in effect) 

after the fiscal year in which the continuous period of service referred to in subparagraph (B) terminated. 

(2) Under the uniform regulations referred to in paragraph (1), 

a member of an armed force who serves on active duty in a duty 

assignment in support of a contingency operation or a declaration 

of a major disaster or emergency by the President under the Robert 

T. Stafford Disaster Relief and Emergency Assistance Act (Public 

Law 93–288, 42 U.S.C. 5121 et seq.) during a fiscal year and who, 

except for this paragraph, would lose at the end of that fiscal year 

any accumulated leave in excess of the number of days of leave authorized to be accumulated under subsection (b) or (d), shall be permitted to retain such leave until the end of the second fiscal year 

after the fiscal year in which such service on active duty is terminated. 

* * * * * * * 

CHAPTER 53. MISCELLANEOUS RIGHTS AND BENEFITS

§ 1044. Legal Assistance 

(a) Subject to the availability of legal staff resources, the Secretary concerned may provide legal assistance in connection with 

their personal civil legal affairs to the following persons: 

(1) Members of the armed forces who are on active duty. 

(2) Members and former members entitled to retired or retainer pay or equivalent pay. 

(3) Officers of the commissioned corps of the Public Health 

Service who are on active duty or entitled to retired or equivalent pay. 

(4) Members of reserve components not covered by paragraph 

(1) or (2) following release from active duty under a call or 

order to active duty for more than 30 days issued under a mobilization authority ø(as determined by the Secretary of Defense),¿ (as determined by the Secretary of Defense and the Secretary of the department in which the Coast Guard is operating, 

with respect to the Coast Guard when it is not operating as a 

service of the Navy), for a period of time, øprescribed by the 

Secretary of Defense,¿ prescribed by the Secretary of Defense 

and the Secretary of the department in which the Coast Guard 

is operating, with respect to the Coast Guard when it is not operating as a service of the Navy, that begins on the date of the 

release and is not less than twice the length of the period 

served on active duty under that call or order to active duty. 

(5) Dependents of members and former members described 

in paragraphs (1), (2), (3), and (4). 

(6) Survivors of a deceased member or former member described in paragraphs (1), (2), (3), and (4) who were dependents 

of the member or former member at the time of the death of 

the member or former member, except that the eligibility of 

such survivors shall be determined pursuant to regulations 

prescribed by the Secretary concerned. 

(7) Civilian employees of the Federal Government serving in 

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gibility of civilian employees shall be determined pursuant to 

regulations prescribed by the Secretary concerned. 

(b) Under such regulations as may be prescribed by the Secretary 

concerned, the Judge Advocate General (as defined in section 

801(1) of this title) under the jurisdiction of the Secretary is responsible for the establishment and supervision of legal assistance 

programs under this section. 

(c) This section does not authorize legal counsel to be provided 

to represent a member or former member of the uniformed services 

described in subsection (a), or the dependent of such a member or 

former member, in a legal proceeding if the member or former 

member can afford legal fees for such representation without 

undue hardship. 

(d)(1) Notwithstanding any law regarding the licensure of attorneys, a judge advocate or civilian attorney who is authorized to 

provide military legal assistance is authorized to provide that assistance in any jurisdiction, subject to such regulations as may be 

prescribed by the Secretary concerned. 

(2) Military legal assistance may be provided only by a judge advocate or a civilian attorney who is a member of the bar of a Federal court or of the highest court of a State. 

(3) In this subsection, the term ‘‘military legal assistance’’ includes— 

(A) legal assistance provided under this section; and 

(B) legal assistance contemplated by sections 1044a, 1044b, 

1044c, and 1044d of this title. 

(e) The Secretary concerned shall define ‘‘dependent’’ for the purposes of this section. 

CHAPTER 55. MEDICAL AND DENTAL CARE

§ 1074i. Reimbursement for certain travel expenses 

(a) IN GENERAL.—(1) In any case in which a covered beneficiary 

is referred by a primary care physician to a specialty care provider 

who provides services more than 100 miles from the location in 

which the primary care provider provides services to the covered 

beneficiary, the Secretary shall provide reimbursement for reasonable travel expenses for the covered beneficiary and, when accompaniment by an adult is necessary, for a parent or guardian of the 

covered beneficiary or another member of the covered beneficiary’s 

family who is at least 21 years of age. 

(2) In any case in which a covered beneficiary resides on an 

INCONUS island that lacks public access roads to the mainland 

and is referred by a primary care physician to a specialty care provider on the mainland who provides services less than 100 miles 

from the location in which the beneficiary resides, the Secretary 

shall reimburse the reasonable travel expenses of the covered beneficiary, and, when accompaniment by an adult is necessary, for a 

parent or guardian of the covered beneficiary or another member of 

the covered beneficiary’s family who is at least 21 years of age. 

(b) OUTREACH PROGRAM AND TRAVEL REIMBURSEMENT FOR FOLLOW-ON SPECIALTY CARE AND RELATED SERVICES.—The Secretary 

concerned shall ensure that an outreach program is implemented 

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related disability and is entitled to retired or retainer pay, or 

equivalent pay, so that— 

(1) the progress of the member is closely monitored; and 

(2) the member receives the travel reimbursement authorized by subsection (a) whenever the member requires follow-on 

specialty care, services, or supplies. 

(c) DEFINITIONS.—In this section: 

(1) The term ‘‘specialty care provider’’ includes a dental specialist. 

(2) The term ‘‘dental specialist’’ means an oral surgeon, orthodontist, prosthodontist, periodontist, endodontist, or pediatric dentist, and includes such other providers of dental care 

and services as determined appropriate by the Secretary of Defense. 

(3) The term ‘‘combat-related disability’’ has the meaning 

given that term in section 1413a of this title. 

PART IV. SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 165. ACCOUNTABILITY AND RESPONSIBILITY

§ 2772. Share of fines and forfeitures to benefit Armed 

Forces retirement homes 

(a) Deposit required. The Secretary øof the military department¿ 

concerned shall deposit in the Armed Forces Retirement Home 

Trust Fund a percentage (determined under subsection (b)) of the 

following amounts: 

(1) The amount of forfeitures and fines adjudged against an 

enlisted member, warrant officer, or limited duty officer of the 

armed forces by sentence of a court martial or under authority 

of section 815 of this title (article 15) over and above any 

amount that may be due from the member, warrant officer, or 

limited duty officer for the reimbursement of the United States 

or any individual. 

(2) The amount of forfeitures on account of the desertion of 

an enlisted member, warrant officer, or limited duty officer of 

the armed forces. 

(b) Determination of percentage. The øArmed Forces Retirement 

Home Board¿ Chief Operating Officer of the Armed Forces Retirement Home shall determine, on the basis of the financial needs of 

the Armed Forces Retirement Home, the percentage of the amounts 

referred to in subsection (a) to be deposited in the trust fund referred to in such subsection. 

ø(c) Application to Coast Guard. In this section, the term ‘‘armed 

forces’’ does not include the Coast Guard when it is not operating 

as a service in the Navy.¿ 

TITLE 14. COAST GUARD 

PART I. REGULAR COAST GUARD

CHAPTER 3. COMPOSITION AND ORGANIZATION

ø§ 42. Number and distribution of commissioned officers¿ 

ø(a) The total number of commissioned officers, excluding commissioned warrant officers, on active duty in the Coast Guard shall 

not exceed 6,700 in each fiscal year 2004, 2005, and 2006. 


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ø(b) The commissioned officers on the active duty promotion list 

shall be distributed in grade in the following percentages, respectively: rear admiral 0.375; rear admiral (lower half) 0.375; captain 

6.0; commander 15.0; lieutenant commander 22.0. The Secretary 

shall prescribe the percentages applicable to the grades of lieutenant, lieutenant (junior grade), and ensign. The Secretary may, as 

the needs of the Coast Guard require, reduce the percentage applicable to any grade above lieutenant commander, and in order to 

compensate for such reduction increase correspondingly the percentage applicable to any lower grade. 

ø(c) The Secretary shall, at least once each year, make a computation to determine the number of officers on the active duty promotion list authorized to be serving in each grade. The number in 

each grade shall be computed by applying the applicable percentage to the total number of such officers serving on active duty on 

the date the computation is made. In making computations under 

this section the nearest whole number shall be regarded as the authorized number in any case where there is a fraction in the final 

result.¿ 

§ 42. Number and distribution of commissioned officers on 

the active duty promotion list 

(a) The total number of Coast Guard commissioned officers on the 

active duty promotion list, excluding warrant officers, shall not exceed 7,200. This total number may be temporarily increased up to 

2 percent for no more than the 60 days that follow the commissioning of a Coast Guard Academy class. 

(b) The total number of commissioned officers authorized by this 

section shall be distributed in grade not to exceed the following percentages: 

(1) 0.375 percent for rear admiral. 

(2) 0.375 percent for rear admiral (lower half). 

(3) 6.0 percent for captain. 

(4) 15.0 percent for commander. 

(5) 22.0 percent for lieutenant commander. 

The Secretary shall prescribe the percentages applicable to the 

grades of lieutenant, lieutenant (junior grade), and ensign. The Secretary may, as the needs of the Coast Guard require, reduce any of 

the percentages set forth in paragraphs (1) through (5) and apply 

that total percentage reduction to any other lower grade or combination of lower grades. 

(c) The Secretary shall, at least once a year, compute the total 

number of commissioned officers authorized to serve in each grade 

by applying the grade distribution percentages of this section to the 

total number of commissioned officers listed on the current active 

duty promotion list. In making such calculations, any fraction shall 

be rounded to the nearest whole number. The number of commissioned officers on the active duty promotion list serving with other 

departments or agencies on a reimbursable basis or excluded under 

the provisions of section 324(d) of title 49, shall not be counted 

against the total number of commissioned officers authorized to 

serve in each grade. 

(d) The numbers resulting from such computations shall be for 

all purposes the authorized number in each grade, except that the 

authorized number for a grade is temporarily increased during the 


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period between one computation and the next by the number of officers originally appointed in that grade during that period and the 

number of officers of that grade for whom vacancies exist in the 

next higher grade but whose promotion has been delayed for any 

reason. 

ø(e) Officers who are not included in the active duty promotion 

list, officers serving as extra numbers in grade under sections 432 

and 433 of this title , and officers serving with other departments 

or agencies on a reimbursable basis or excluded under the provisions of section 324(d) of title 49, shall not be counted in determining authorized strengths under subsection (c) and shall not 

count against those strengths. The number of officers authorized to 

be serving on active duty in each grade of the permanent commissioned teaching staff of the Coast Guard Academy and of the Reserve serving in connection with organizing, administering, recruiting, instructing, or training the reserve components shall be prescribed by the Secretary.¿ 

(e) The number of officers authorized to be serving on active duty 

in each grade of the permanent commissioned teaching staff of the 

Coast Guard Academy and of the Reserve serving in connection with 

organizing, administering, recruiting, instructing, or training the 

reserve components shall be prescribed by the Secretary. 

§ 47. Vice Commandant; assignment 

The President may appoint, by and with the advice and consent 

of the Senate, one Vice Commandant who shall rank next after the 

Commandant, shall perform such duties as the Commandant may 

prescribe and shall act as Commandant during the absence or disability of the Commandant or in the event that there is a vacancy 

in the office of Commandant. The Vice Commandant shall be selected from the officers on the active duty promotion list serving 

above the grade of captain. The Commandant shall make recommendation for such appointment. The Vice Commandant shall, 

while so serving, have the grade of øvice admiral¿ admiral with 

pay and allowances of that grade. The appointment and grade of 

a Vice Commandant shall be effective on the date the officer assumes that duty, and shall terminate on the date the officer is detached from that duty, except as provided in øsubsection¿ section 

51(d) of this title. 

ø§ 50. Area commanders 

ø(a) The President may appoint, by and with the advice and consent of the Senate, a Commander, Atlantic Area, and a Commander, Pacific Area, each of whom shall be an intermediate commander between the Commandant and the district commanders in 

his respective area and shall perform such duties as the Commandant may prescribe. The area commanders shall be appointed 

from officers on the active duty promotion list serving above the 

grade of captain. The Commandant shall make recommendations 

for such appointments. 

ø(b) An area commander shall, while so serving, have the grade 

of vice admiral with pay and allowances of that grade. The appointment and grade of an area commander shall be effective on the 

date the officer assumes that duty, and shall terminate on the date 


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the officer is detached from that duty, except as provided in subsection 51(d) of this title.¿ 

§ 50. Vice admirals 

(a)(1) The President may designate no more than 4 positions of 

importance and responsibility that shall be held by officers who— 

(A) while so serving, shall have the grade of vice admiral, 

with the pay and allowances of that grade; and 

(B) shall perform such duties as the Commandant may prescribe. 

(2) The President may appoint, by and with the advice and consent of the Senate, and reappoint, by and with the advice and consent of the Senate, to any such position an officer of the Coast 

Guard who is serving on active duty above the grade of captain. The 

Commandant shall make recommendations for such appointments. 

(b)(1) The appointment and the grade of vice admiral shall be effective on the date the officer assumes that duty and, except as provided in paragraph (2) of this subsection or in section 51(d) of this 

title, shall terminate on the date the officer is detached from that 

duty. 

(2) An officer who is appointed to a position designated under 

subsection (a) shall continue to hold the grade of vice admiral— 

(A) while under orders transferring the officer to another position designated under subsection (a), beginning on the date 

the officer is detached from that duty and terminating on the 

date before the day the officer assumes the subsequent duty, but 

not for more than 60 days; 

(B) while hospitalized, beginning on the day of the hospitalization and ending on the day the officer is discharged 

from the hospital, but not for more than 180 days; and 

(C) while awaiting retirement, beginning on the date the officer is detached from duty and ending on the day before the officer’s retirement, but not for more than 60 days. 

(c)(1) An appointment of an officer under subsection (a) does not 

vacate the permanent grade held by the officer. 

(2) An officer serving in a grade above rear admiral who holds 

the permanent grade of rear admiral (lower half) shall be considered for promotion to the permanent grade of rear admiral as if the 

officer was serving in the officer’s permanent grade. 

(d) Whenever a vacancy occurs in a position designated under 

subsection (a), the Commandant shall inform the President of the 

qualifications needed by an officer serving in that position or office 

to carry out effectively the duties and responsibilities of that position 

or office. 

ø§ 50a. Chief of Staff 

ø(a) The President may appoint, by and with the advice and consent of the Senate, a Chief of Staff of the Coast Guard who shall 

rank next after the area commanders and who shall perform duties 

as prescribed by the Commandant. The Chief of Staff shall be appointed from the officers on the active duty promotion list serving 

above the grade of captain. The Commandant shall make recommendations for the appointment. 

ø(b) The Chief of Staff shall have the grade of vice admiral with 

the pay and allowances of that grade. The appointment and grade 


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of the Chief of Staff shall be effective on the date the officer assumes that duty, and shall terminate on the date the officer is detached from that duty, except as provided in section 51(d) of this 

title.¿ 

§ 51. Retirement 

ø(a) An officer who, while serving in the grade of vice admiral, 

is retired for physical disability shall be placed on the retired list 

with the grade of vice admiral. 

ø(b) An officer who is retired while serving in the grade of vice 

admiral, or who, after serving at least two and one-half years in 

the grade of vice admiral, is retired while serving in a lower grade, 

may in the discretion of the President, be retired with the grade 

of vice admiral. 

ø(c) An officer who, after serving less than two and one-half 

years in the grade of vice admiral, is retired while serving in a 

lower grade, shall be retired in his permanent grade.¿ 

(a) An officer, other than the Commandant, who, while serving in 

the grade of admiral or vice admiral, is retired for physical disability shall be placed on the retired list with the highest grade in 

which that officer served. 

(b) An officer, other than the Commandant, who is retired while 

serving in the grade of admiral or vice admiral, or who, after serving at least 21⁄2 years in the grade of admiral or vice admiral, is 

retired while serving in a lower grade, may in the discretion of the 

President, be retired with the highest grade in which that officer 

served. 

(c) An officer, other than the Commandant, who, after serving less 

than 21⁄2 years in the grade of admiral or vice admiral, is retired 

while serving in a lower grade, shall be retired in his permanent 

grade. 

(d) An officer serving in the grade of admiral or vice admiral 

shall continue to hold that grade— 

(1) while being processed for physical disability retirement, 

beginning on the day of the processing and ending on the day 

that officer is retired, but not for more than 180 days; and 

(2) while awaiting retirement, beginning on the day that officer is relieved from the position of Commandant, Vice Commandant, øArea Commander, or Chief of Staff¿ or Vice Admiral and ending on the day before the officer’s retirement, but 

not for more than 60 days. 

* * * * * * * 

§ 55. Chief Acquisition Officer 

(a) IN GENERAL.—There shall be in the Coast Guard a Chief Acquisition Officer selected by the Commandant who shall be a Rear 

Admiral or civilian from the Senior Executive Service (career reserved). The Chief Acquisition Officer shall serve at the Assistant 

Commandant level and have acquisition management as that individual’s primary duty. 

(b) QUALIFICATIONS.—The Chief Acquisition Officer shall be an 

acquisition professional with a Level III certification and must have 

at least 10 years experience in an acquisition position, of which at 

least 4 years were spent as— 


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(1) the program executive officer; 

(2) the program manager of a Level 1 or Level 2 acquisition 

project or program; 

(3) the deputy program manager of a Level 1 or Level 2 acquisition; or 

(4) a combination of such positions. 

(c) FUNCTIONS OF THE CHIEF ACQUISITION OFFICER.—The functions of the Chief Acquisition Officer include— 

(1) monitoring the performance of programs and projects on 

the basis of applicable performance measurements and advising 

the Commandant, through the chain of command, regarding 

the appropriate business strategy to achieve the missions of the 

Coast Guard; 

(2) maximizing the use of full and open competition at the 

prime contract and subcontract levels in the acquisition of property, capabilities, and services by the Coast Guard by establishing policies, procedures, and practices that ensure that the 

Coast Guard receives a sufficient number of competitive proposals from responsible sources to fulfill the Government’s requirements, including performance and delivery schedules, at 

the lowest cost or best value considering the nature of the property or service procured; 

(3) making acquisition decisions in concurrence with the technical authority, or technical authorities, as appropriate, of the 

Coast Guard, as designated by the Commandant, consistent 

with all other applicable laws and decisions establishing procedures within the Coast Guard; 

(4) ensuring the use of detailed performance specifications in 

instances in which performance based contracting is used; 

(5) managing the direction of acquisition policy for the Coast 

Guard, including implementation of the unique acquisition 

policies, regulations, and standards of the Coast Guard; 

(6) developing and maintaining an acquisition career management program in the Coast Guard to ensure that there is an 

adequate acquisition workforce; 

(7) assessing the requirements established for Coast Guard 

personnel regarding knowledge and skill in acquisition resources and management and the adequacy of such requirements for facilitating the achievement of the performance goals 

established for acquisition management; 

(8) developing strategies and specific plans for hiring, training, and professional development; and 

(9) reporting to the Commandant, through the chain of command, on the progress made in improving acquisition management capability. 

* * * * * * * 

CHAPTER 7. COOPERATION WITH OTHER AGENCIES

§ 149. Assistance to foreign governments and maritime authorities 

(a) DETAIL OF MEMBERS TO ASSIST FOREIGN GOVERNMENTS.—The 

President may upon application from the foreign governments concerned, and whenever in his discretion the public interests render 

such a course advisable, detail members of the Coast Guard to asVerDate Nov 24 2008 03:15 Nov 03, 2009 Jkt 089010 PO 00000 Frm 00042 Fmt 6659 Sfmt 6601 E:\HR\OC\SR095.XXX SR095

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sist foreign governments in matters concerning which the Coast 

Guard may be of assistance. Members so detailed may accept, from 

the government to which detailed, offices and such compensation 

and emoluments thereunder appertaining as may be first approved 

by the Secretary. While so detailed such members shall receive, in 

addition to the compensation and emoluments allowed by such governments, the pay and allowances to which they are entitled in the 

Coast Guard and shall be allowed the same credit for longevity, retirement, and for all other purposes that they would receive if they 

were serving with the Coast Guard. 

(b) TECHNICAL ASSISTANCE TO FOREIGN MARITIME AUTHORI- TIES.—The Commandant, in coordination with the Secretary of 

State, may provide, in conjunction with regular Coast Guard operations, technical assistance (including law enforcement and maritime safety and security training) to foreign navies, coast guards, 

and other maritime authorities. 

(c) GRANTS TO INTERNATIONAL MARITIME ORGANIZATIONS.—The 

Commandant may, after consultation with the Secretary of State, 

make grants to, or enter into cooperative agreements, contracts, or 

other agreements with, international maritime organizations for the 

purpose of acquiring information or data about merchant vessel inspections, security, safety and environmental requirements, classification, and port state or flag state law enforcement or oversight. 

(d) AUTHORIZED ACTIVITIES.— (1) The Commandant may transfer or expend funds from any 

appropriation available to the Coast Guard for— 

(A) the activities of traveling contact teams, including 

any transportation expense, translation services expense, or 

administrative expense that is related to such activities; 

(B) the activities of maritime authority liaison teams of 

foreign governments making reciprocal visits to Coast 

Guard units, including any transportation expense, translation services expense, or administrative expense that is related to such activities; 

(C) seminars and conferences involving members of maritime authorities of foreign governments; 

(D) distribution of publications pertinent to engagement 

with maritime authorities of foreign governments; and 

(E) personnel expenses for Coast Guard civilian and military personnel to the extent that those expenses relate to 

participation in an activity described in subparagraph (C) 

or (D). 

(2) An activity may not be conducted under this subsection 

with a foreign country unless the Secretary of State approves 

the conduct of such activity in that foreign country. 

§ 151. Contracts with Government-owned establishments for 

work and material 

(a) IN GENERAL.—All orders or contracts for work or material, 

under authorization of law, placed with Government-owned establishments by the Coast Guard, shall be considered as obligations in 

the same manner as provided for similar orders or contracts placed 

with private contractors, and appropriations for such work or material shall remain available for payment therefor as in the case of 

orders or contracts placed with private contractors. 


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(b) ORDERS AND AGREEMENTS FOR INDUSTRIAL ACTIVITIES.— 

Under this section, the Coast Guard industrial activities may accept 

orders and enter into reimbursable agreements with establishments, 

agencies, and departments of the Department of Defense and the Department of Homeland Security. 

CHAPTER 11. PERSONNEL

§ 214. Appointment of temporary officers 

ø(a) The President may appoint temporary commissioned officers 

in the Regular Coast Guard in a grade, not above lieutenant, appropriate to their qualifications, experience, and length of service, 

as the needs of the Coast Guard may require, from among the commissioned warrant officers, warrant officers, and enlisted members 

of the Coast Guard, and from licensed officers of the United States 

merchant marine.¿ 

(a) The President may appoint temporary commissioned officers— 

(1) in the Regular Coast Guard in a grade, not above lieutenant, appropriate to their qualifications, experience, and length 

of service, as the needs of the Coast Guard may require, from 

among the commissioned warrant officers, warrant officers, and 

enlisted members of the Coast Guard, and from licensed officers 

of the United States merchant marine; and 

(2) in the Coast Guard Reserve in a grade, not above lieutenant, appropriate to their qualifications, experience, and length 

of service, as the needs of the Coast Guard may require, from 

among the commissioned warrant officers of the Coast Guard 

Reserve. 

(b) Temporary appointments under this section do not change the 

permanent, probationary, or acting status of persons so appointed, 

prejudice them in regard to promotion or appointment, or abridge 

their rights or benefits. A person who is appointed under this section may not suffer any reduction in the rate of pay and allowances 

to which he would have been entitled had he remained in his 

former grade and continued to receive the increases in pay and allowances authorized for that grade. 

(c) An appointment under this section, or a subsequent promotion appointment of a temporary officer, may be vacated by the 

appointing officer at any time. Each officer whose appointment is 

so vacated shall revert to his permanent status. 

(d) Appointees under this section shall take precedence in the 

grade to which appointed in accordance with the dates of their appointments as officers in such grade. Appointees whose dates of appointment are the same shall take precedence with each other as 

the Secretary shall determine. 

§ 253. Selection boards; notice of convening; communication 

with board 

(a) Before a board is convened under section 251 of this title, notice of the convening date, the promotion zone to be considered, and 

the officers eligible for øconsideration, and the number of officers 

the board may recommend for promotion¿ consideration shall be 

given to the service at large. 

(b) Each officer eligible for consideration by a selection board convened under section 251 of this title may send a communication 


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through official channels to the board, to arrive not later than the 

date the board convenes, inviting attention to any matter of record 

in the armed forces concerning himself. A communication sent 

under this section may not criticize any officer or reflect upon the 

character, conduct, or motive of any officer. 

§ 258. Selection boards; information to be furnished boards 

(a) The Secretary shall furnish the appropriate selection board 

convened under section 251 of this title with: 

(1) the number of officers that the board may recommend for 

promotion to the next higher grade; and 

(2) the names and records of all officers who are eligible for 

consideration for promotion to the grade to which the board 

will recommend officers for promotion. 

(b) In addition to the information provided pursuant to subsection 

(a), the Secretary may furnish the selection board— 

(1) specific direction relating to the needs of the service for officers having particular skills, including direction relating to 

the need for a minimum number of officers with particular 

skills within a specialty; and 

(2) such other guidance that the Secretary believes may be 

necessary to enable the board to properly perform its functions. 

Selections made based on the direction and guidance provided 

under this subsection shall not exceed the maximum percentage of 

officers who may be selected from below the announced promotion 

zone at any given selection board convened under section 251 of this 

title. 

§ 259. Officers to be recommended for promotion 

(a) A selection board convened to recommend officers for promotion shall recommend those eligible officers whom the øboard¿ 

board, giving due consideration to the needs of the service for officers with particular skills so noted in the specific direction furnished pursuant to section 258 of this title, considers best qualified 

of the officers under consideration for promotion. No officer may be 

recommended for promotion unless he receives the recommendation 

of at least a majority of the members of a board composed of five 

members, or at least two-thirds of the members of a board composed of more than five members. 

(b) The number of officers that a board convened under section 

251 of this title may recommend for promotion to a grade below 

rear admiral (lower half) from among eligible officers junior in rank 

to the junior officer in the appropriate promotion zone may not exceed— 

(1) 5 percent of the total number of officers that the board 

is authorized to recommend for promotion to the grade of lieutenant or lieutenant commander; 

(2) 71⁄2 percent of the total number of officers that the board 

is authorized to recommend for promotion to the grade of commander; and 

(3) 10 percent of the total number of officers that the board 

is authorized to recommend for promotion to the grade of captain; 

unless such percentage is a number less than one, in which case 

the board may recommend one such officer for promotion. 


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(c)(1) After selecting the officers to be recommended for promotion, a selection board may recommend officers of particular 

merit, from among those officers chosen for promotion, to be placed 

at the top of the list of selectees promulgated by the Secretary 

under section 271(a) of this title. The number of officers that a 

board may recommend to be placed at the top of the list of selectees 

may not exceed the percentages set forth in subsection (b) unless 

such a percentage is a number less than one, in which case the 

board may recommend one officer for such placement. No officer 

may be recommended to be placed at the top of the list of selectees 

unless he or she receives the recommendation of at least a majority 

of the members of a board composed of five members, or at least 

two-thirds of the members of a board composed of more than five 

members. 

(2) The Secretary shall conduct a survey of the Coast Guard officer corps to determine if implementation of this subsection will improve Coast Guard officer retention. A selection board may not 

make any recommendation under this subsection before the date on 

which the Secretary publishes a finding, based upon the results of 

the survey, that implementation of this subsection will improve 

Coast Guard officer retention. 

(3) The Secretary shall submit any finding made by the Secretary 

pursuant to paragraph (2) to the Committee on Transportation and 

Infrastructure of the House of Representatives and the Committee 

on Commerce, Science, and Transportation of the Senate. 

§ 260. Selection boards; reports 

(a) Each board convened under section 251 of this title shall submit a report in writing, signed by all the members thereof, containing the names of the officers recommended for promotion and 

the names of those officers recommended to be advanced to the top 

of the list of selectees established by the Secretary under section 

271(a) of this title. 

(b) A board convened under section 251 of this title shall certify 

that, in the opinion of at least a majority of the members if the 

board has five members, or in the opinion of at least two-thirds of 

the members if the board has more than five members, the officers 

recommended for promotion are the best qualified for promotion to 

meet the needs of the service (as noted in the specific direction furnished the board under section 258 of this title) of those officers 

whose names have been furnished to the board. 

* * * * * * * 

CHAPTER 15. ACQUISITIONS 

SUBCHAPTER 1—GENERAL PROVISIONS

Sec. 

561. Acquisition directorate 

562. Senior acquisition leadership team 

563. Improvements in Coast Guard acquisition management 

564. Recognition of Coast Guard personnel for excellence in acquisition 

565. Prohibition on use of lead systems integrators 

566. Required contract terms 

567. Department of Defense consultation 

568. Undefinitized contractual actions 


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SUBCHAPTER 2—IMPROVED ACQUISITION PROCESS AND PROCEDURES

Sec. 

571. Identification of major system acquisitions 

572. Acquisition 

573. Preliminary development and demonstration 

574. Acquisition, production, deployment, and support 

575. Acquisition program baseline breach 

SUBCHAPTER 3—DEFINITIONS

Sec. 

581. Definitions 

SUBCHAPTER 1—GENERAL PROVISIONS

§ 561. Acquisition directorate 

(a) ESTABLISHMENT.—The Commandant of the Coast Guard shall 

establish an acquisition directorate to provide guidance and oversight for the implementation and management of all Coast Guard 

acquisition processes, programs, and projects. 

(b) MISSION.—The mission of the acquisition directorate is— 

(1) to acquire and deliver assets and systems that increase 

operational readiness, enhance mission performance, and create 

a safe working environment; and 

(2) to assist in the development of a workforce that is trained 

and qualified to further the Coast Guard’s missions and deliver 

the best value products and services to the Nation. 

§ 562. Senior acquisition leadership team 

(a) ESTABLISHMENT.—The Commandant shall establish a senior 

acquisition leadership team within the Coast Guard comprised of— 

(1) the Vice Commandant; 

(2) the Deputy and Assistant Commandants; 

(3) appropriate senior staff members of each Coast Guard directorate; 

(4) appropriate senior staff members for each assigned field 

activity or command; and 

(5) any other Coast Guard officer or employee designated by 

the Commandant. 

(b) FUNCTION.—The senior acquisition leadership team shall— 

(1) meet at the call of the Commandant at such places and 

such times as the Commandant may require; 

(2) provide advice and information on operational and performance requirements of the Coast Guard; 

(3) identify gaps and vulnerabilities in the operational readiness of the Coast Guard; 

(4) make recommendations to the Commandant and the Chief 

Acquisition Officer to remedy the identified gaps and 

vulnerabilities in the operational readiness of the Coast Guard; 

and 

(5) contribute to the development of a professional, experienced acquisition workforce by providing acquisition-experience 

tours of duty and educational development for officers and employees of the Coast Guard. 

§ 563. Improvements in Coast Guard acquisition management 

(a) PROJECT AND PROGRAM MANAGERS.— 


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(1) PROJECT OR PROGRAM MANAGER DEFINED.—In this section, 

the term ‘‘project or program manager’’ means an individual 

designated— 

(A) to develop, produce, and deploy a new asset to meet 

identified operational requirements; and 

(B) to manage cost, schedule, and performance of the acquisition or project or program. 

(2) LEVEL 1 PROJECTS.— An individual may not be assigned 

as the project or program manager for a Level 1 acquisition unless the individual holds a Level III acquisition certification as 

a program manager. 

(3) LEVEL 2 PROJECTS.—An individual may not be assigned 

as the project or program manager for a Level 2 acquisition unless the individual holds a Level II acquisition certification as 

a program manager. 

(b) GUIDANCE ON TENURE AND ACCOUNTABILITY OF PROGRAM AND

PROJECT MANAGERS.—Not later than one year after the date of enactment of the Coast Guard Authorization Act for Fiscal years 2010 

and 2011, the Commandant shall issue guidance to address the 

qualifications, resources, responsibilities, tenure, and accountability 

of program and project managers for the management of acquisition 

programs and projects. The guidance shall address, at a minimum— 

(1) the qualifications required for project or program managers, including the number of years of acquisition experience 

and the professional training levels to be required of those appointed to project or program management positions; and 

(2) authorities available to project or program managers, including, to the extent appropriate, the authority to object to the 

addition of new program requirements that would be inconsistent with the parameters established for an acquisition program. 

(c) ACQUISITION WORKFORCE.— (1) IN GENERAL.—The Commandant shall designate a sufficient number of positions to be in the Coast Guard’s acquisition 

workforce to perform acquisition-related functions at Coast 

Guard headquarters and field activities. 

(2) REQUIRED POSITIONS.—The Commandant shall ensure 

that members of the acquisition workforce have expertise, education, and training in at least 1 of the following acquisition 

career fields: 

(A) Acquisition logistics. 

(B) Auditing. 

(C) Business, cost estimating, and financial management. 

(D) Contracting. 

(E) Facilities engineering. 

(F) Industrial or contract property management. 

(G) Information technology. 

(H) Manufacturing, production, and quality assurance. 

(I) Program management. 

(J) Purchasing. 

(K) Science and technology. 

(L) Systems planning, research, development, and engineering. 

(M) Test and evaluation. 


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(3) ACQUISITION WORKFORCE EXPEDITED HIRING AUTHORITY.— (A) IN GENERAL.—For purposes of sections 3304, 5333, 

and 5753 of title 5, the Commandant may— 

(i) designate any category of acquisition positions 

within the Coast Guard as shortage category positions; 

and 

(ii) use the authorities in such sections to recruit and 

appoint highly qualified person directly to positions so 

designated. 

(B) LIMITATION.—The Commandant may not appoint a 

person to a position of employment under this paragraph 

after September 30, 2012. 

(d) MANAGEMENT INFORMATION SYSTEM.— (1) IN GENERAL.—The Commandant shall establish a management information system capability to improve acquisition 

workforce management and reporting. 

(2) INFORMATION MAINTAINED.—Information maintained with 

such capability shall include the following standardized information on individuals assigned to positions in the workforce: 

(A) Qualifications, assignment history, and tenure of 

those individuals assigned to positions in the acquisition 

workforce or holding acquisition-related certifications. 

(B) Promotion rates for officers and members of the Coast 

Guard in the acquisition workforce. 

(e) CAREER PATHS.—To establish acquisition management as a 

core competency of the Coast Guard, the Commandant shall— 

(1) ensure that career paths for officers, members, and employees of the Coast Guard who wish to pursue careers in acquisition are identified in terms of the education, training, experience, and assignments necessary for career progression of those 

officers, members, and employees to the most senior positions in 

the acquisition workforce; and 

(2) publish information on such career paths. 

§ 564. Recognition of Coast Guard personnel for excellence in 

acquisition 

(a) IN GENERAL.—Not later than 180 days after the date of enactment of the Coast Guard Authorization Act for Fiscal Years 2010 

and 2011, the Commandant shall commence implementation of a 

program to recognize excellent performance by individuals and 

teams comprised of officers, members, and employees of the Coast 

Guard that contributed to the long-term success of a Coast Guard 

acquisition project or program. 

(b) ELEMENTS.—The program shall include— 

(1) specific award categories, criteria, and eligibility and 

manners of recognition; 

(2) procedures for the nomination by personnel of the Coast 

Guard of individuals and teams comprised of officers, members, 

and employees of the Coast Guard for recognition under the 

program; and 

(3) procedures for the evaluation of nominations for recognition under the program by one or more panels of individuals 

from the Government, academia, and the private sector who 

have such expertise and are appointed in such manner as the 

Commandant shall establish for the purposes of this program. 


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(c) AWARD OF CASH BONUSES.—As part of the program required 

by subsection (a), the Commandant, subject to the availability of appropriations, may award to any civilian employee recognized pursuant to the program a cash bonus to the extent that the performance 

of such individual so recognized warrants the award of such bonus. 

§ 565. Prohibition on use of lead systems integrators 

(a) IN GENERAL.— (1) USE OF LEAD SYSTEMS INTEGRATOR.—Except as provided 

in subsection (b), the Commandant may not use a private sector 

entity as a lead systems integrator for an acquisition contract 

awarded or delivery order or task order issued after the date of 

enactment of the Coast Guard Authorization Act for Fiscal 

Years 2010 and 2011. 

(2) FULL AND OPEN COMPETITION.—The Commandant and 

any lead systems integrator engaged by the Coast Guard, pursuant to the exceptions described in subsection (b), shall use full 

and open competition for any acquisition contract awarded 

after the date of enactment of that Act, unless otherwise excepted in accordance with the Competition in Contracting Act 

of 1984 (41 U.S.C. 251 note), the amendments made by that 

Act, and the Federal Acquisition Regulations. 

(3) NO EFFECT ON SMALL BUSINESS ACT.—Nothing in this 

subsection shall be construed to supersede or otherwise affect 

the authorities provided by and under the Small Business Act 

(15 U.S.C. 631 et seq.). 

(b) EXCEPTIONS.— (1) NATIONAL DISTRESS AND RESPONSE SYSTEM MODERNIZA- TION PROGRAM; NATIONAL SECURITY CUTTERS 2 AND 3.—Notwithstanding subsection (a), the Commandant may use a private sector entity as a lead systems integrator for the Coast 

Guard to complete the National Distress and Response System 

Modernization Program, the C4ISR projects directly related to 

the Integrated Deepwater Program, and National Security Cutters 2 and 3 if the Secretary of Homeland Security certifies 

that— 

(A) the acquisition is in accordance with the Competition 

in Contracting Act of 1984 (41 U.S.C. 251 note), the 

amendments made by that Act, and the Federal Acquisition 

Regulations; and 

(B) the acquisition and the use of a private sector entity 

as a lead systems integrator for the acquisition is in the 

best interest of the Federal Government. 

(2) TERMINATION DATE FOR EXCEPTIONS.—Except for the 

modification of delivery or task orders pursuant to Parts 4 and 

42 of the Federal Acquisition Regulations, the Commandant 

may not use a private sector entity as a lead systems integrator 

after the earlier of— 

(A) September 30, 2012; or 

(B) the date on which the Commandant certifies in writing to the appropriate congressional committees that the 

Coast Guard has available and can retain sufficient contracting personnel and expertise within the Coast Guard, 

through an arrangement with other Federal agencies, or 

through contracts or other arrangements with private sector 


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entities, to perform the functions and responsibilities of the 

lead system integrator in an efficient and cost-effective 

manner. 

§ 566. Required contract terms 

(a) IN GENERAL.—The Commandant shall ensure that a contract 

awarded or a delivery order or task order issued for an acquisition 

of a capability or an asset with an expected service life of 10 years 

and with a total acquisition cost that is equal to or exceeds 

$10,000,000 awarded or issued by the Coast Guard after the date 

of enactment of the Coast Guard Authorization Act for Fiscal Years 

2010 and 2011— 

(1) provides that all certifications for an end-state capability 

or asset under such contract, delivery order, or task order, respectively, will be conducted by the Commandant or an independent third party, and that self-certification by a contractor 

or subcontractor is not allowed; 

(2) requires that the Commandant shall maintain the authority to establish, approve, and maintain technical requirements; 

(3) requires that any measurement of contractor and subcontractor performance be based on the status of all work performed, including the extent to which the work performed met 

all performance, cost, and schedule requirements; 

(4) specifies that, for the acquisition or upgrade of air, surface, or shore capabilities and assets for which compliance with 

TEMPEST certification is a requirement, the standard for determining such compliance will be the air, surface, or shore 

standard then used by the Department of the Navy for that type 

of capability or asset; and 

(5) for any contract awarded to acquire an Offshore Patrol 

Cutter, includes provisions specifying the service life, fatigue 

life, and days underway in general Atlantic and North Pacific 

Sea conditions, maximum range, and maximum speed the cutter will be built to achieve. 

(b) PROHIBITED CONTRACT PROVISIONS.—The Commandant shall 

ensure that any contract awarded or delivery order or task order 

issued by the Coast Guard after the date of enactment of the Coast 

Guard Authorization Act for Fiscal Years 2010 and 2011 does not 

include any provision allowing for equitable adjustment that is not 

consistent with the Federal Acquisition Regulations. 

(c) INTEGRATED PRODUCT TEAMS.—Integrated product teams, and 

all teams that oversee integrated product teams, shall be chaired by 

officers, members, or employees of the Coast Guard. 

(d) DEEPWATER TECHNICAL AUTHORITIES.—The Commandant 

shall maintain or designate the technical authorities to establish, 

approve, and maintain technical requirements. Any such designation shall be made in writing and may not be delegated to the authority of the Chief Acquisition Officer established by section 55 of 

this title. 

§ 567. Department of Defense consultation 

(a) IN GENERAL.—The Commandant shall make arrangements as 

appropriate with the Secretary of Defense for support in contracting 

and management of Coast Guard acquisition programs. The Commandant shall also seek opportunities to make use of Department 


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of Defense contracts, and contracts of other appropriate agencies, to 

obtain the best possible price for assets acquired for the Coast 

Guard. 

(b) INTER-SERVICE TECHNICAL ASSISTANCE.—The Commandant 

shall seek to enter into a memorandum of understanding or a 

memorandum of agreement with the Secretary of the Navy to obtain 

the assistance of the Office of the Assistant Secretary of the Navy 

for Research, Development, and Acquisition, including the Navy 

Systems Command, with the oversight of Coast Guard major acquisition programs. The memorandum of understanding or memorandum of agreement shall, at a minimum, provide for— 

(1) the exchange of technical assistance and support that the 

Assistant Commandants for Acquisition, Human Resources, Engineering, and Information technology may identify; 

(2) the use, as appropriate, of Navy technical expertise; and 

(3) the exchange of personnel between the Coast Guard and 

the Office of the Assistant Secretary of the Navy for Research, 

Development, and Acquisition, including Naval Systems Commands, to facilitate the development of organic capabilities in 

the Coast Guard. 

(c) TECHNICAL REQUIREMENT APPROVAL PROCEDURES.—The Chief 

Acquisition Officer shall adopt, to the extent practicable, procedures 

modeled after those used by the Navy Senior Acquisition Official to 

approve all technical requirements. 

§ 568. Undefinitized contractual actions 

(a) IN GENERAL.—The Coast Guard may not enter into an 

undefinitized contractual action unless such action is directly approved by the Head of Contracting Activity of the Coast Guard. 

(b) REQUESTS FOR UNDEFINITIZED CONTRACTUAL ACTIONS.—Any 

request to the Head of Contracting Activity for approval of an 

undefinitized contractual action shall include a description of the 

anticipated effect on requirements of the Coast Guard if a delay is 

incurred for the purposes of determining contractual terms, specifications, and price before performance is begun under the contractual action. 

(c) REQUIREMENTS FOR UNDEFINITIZED CONTRACTUAL ACTIONS.— 

(1) DEADLINE FOR AGREEMENT ON TERMS, SPECIFICATIONS, 

AND PRICE.—A contracting officer of the Coast Guard may not 

enter into an undefinitized contractual action unless the contractual action provides for agreement upon contractual terms, 

specification, and price by the earlier of— 

(A) the end of the 180-day period beginning on the date 

on which the contractor submits a qualifying proposal to 

definitize the contractual terms, specifications, and price; or 

(B) the date on which the amount of funds obligated 

under the contractual action is equal to more than 50 percent of the negotiated overall ceiling price for the contractual action. 

(2) LIMITATION ON OBLIGATIONS.— 

(A) IN GENERAL.—Except as provided in subparagraph 

(B), the contracting officer for an undefinitized contractual 

action may not obligate under such contractual action an 

amount that exceeds 50 percent of the negotiated overall 


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ceiling price until the contractual terms, specifications, and 

price are definitized for such contractual action. 

(B) EXCEPTION.—Notwithstanding subparagraph (A), if a 

contractor submits a qualifying proposal to definitize an 

undefinitized contractual action before an amount that exceeds 50 percent of the negotiated overall ceiling price is obligated on such action, the contracting officer for such action may not obligate with respect to such contractual action an amount that exceeds 75 percent of the negotiated 

overall ceiling price until the contractual terms, specifications, and price are definitized for such contractual action. 

(3) WAIVER.—The Commandant may waive the application of 

this subsection with respect to a contract if the Commandant 

determines that the waiver is necessary to support— 

(A) a contingency operation (as that term is defined in 

section 101(a)(13) of title 10); 

(B) operations to prevent or respond to a transportation 

security incident (as defined in section 70101(6) of title 46); 

(C) an operation in response to an emergency that poses 

an unacceptable threat to human health or safety or to the 

marine environment; or 

(D) an operation in response to a natural disaster or 

major disaster or emergency designated by the President 

under the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.). 

(4) LIMITATION ON APPLICATION.—This subsection does not 

apply to an undefinitized contractual action for the purchase of 

initial spares. 

(d) INCLUSION OF NONURGENT REQUIREMENTS.—Requirements for 

spare parts and support equipment that are not needed on an urgent basis may not be included in an undefinitized contractual action by the Coast Guard for spare parts and support equipment that 

are needed on an urgent basis unless the Commandant approves 

such inclusion as being— 

(1) good business practice; and 

(2) in the best interests of the United States. 

(e) MODIFICATION OF SCOPE.—The scope of an undefinitized contractual action under which performance has begun may not be 

modified unless the Commandant approves such modification as 

being— 

(1) good business practice; and 

(2) in the best interests of the United States. 

(f) ALLOWABLE PROFIT.—The Commandant shall ensure that the 

profit allowed on an undefinitized contractual action for which the 

final price is negotiated after a substantial portion of the performance required is completed reflects— 

(1) the possible reduced cost risk of the contractor with respect to costs incurred during performance of the contract before 

the final price is negotiated; and 

(2) the reduced cost risk of the contractor with respect to costs 

incurred during performance of the remaining portion of the 

contract. 

(g) DEFINITIONS.—In this section: 

(1) UNDEFINITIZED CONTRACTUAL ACTION.— 


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(A) IN GENERAL.—Except as provided in subparagraph 

(B), the term ‘‘undefinitized contractual action’’ means a 

new procurement action entered into by the Coast Guard 

for which the contractual terms, specifications, or price are 

not agreed upon before performance is begun under the action. 

(B) EXCLUSION.—The term ‘‘undefinitized contractual action’’ does not include contractual actions with respect to— 

(i) foreign military sales; 

(ii) purchases in an amount not in excess of the 

amount of the simplified acquisition threshold; or 

(iii) special access programs. 

(2) QUALIFYING PROPOSAL.—The term ‘‘qualifying proposal’’ 

means a proposal that contains sufficient information to enable 

complete and meaningful audits of the information contained in 

the proposal as determined by the contracting officer. 

SUBCHAPTER 2—IMPROVED ACQUISITION PROCESS AND PROCEDURES

§ 571. Identification of major system acquisitions 

(a) IN GENERAL.— 

(1) SUPPORT MECHANISMS.—The Commandant shall develop 

and implement mechanisms to support the establishment of mature and stable operational requirements for acquisitions under 

this subchapter. 

(2) MISSION ANALYSIS; AFFORDABILITY ASSESSMENT.—The 

Commandant may not initiate a Level 1 or Level 2 acquisition 

project or program until the Commandant— 

(A) completes a mission analysis that— 

(i) identifies any gaps in capability; and 

(ii) develops a clear mission need; and 

(B) prepares a preliminary affordability assessment for 

the project or program. 

(b) ELEMENTS.— 

(1) REQUIREMENTS.—The mechanisms required by subsection 

(a) shall ensure the implementation of a formal process for the 

development of a mission-needs statement, concept-of-operations 

document, capability development plan, and resource proposal 

for the initial project or program funding, and shall ensure the 

project or program is included in the Coast Guard Capital Investment Plan. 

(2) ASSESSMENT OF TRADE-OFFS.—In conducting an affordability assessment under subsection (a)(2)(B), the Commandant 

shall develop and implement mechanisms to ensure that tradeoffs among cost, schedule, and performance are considered in 

the establishment of preliminary operational requirements for 

development and production of new assets and capabilities for 

Level 1 and Level 2 acquisitions projects and programs. 

(c) HUMAN RESOURCE CAPITAL PLANNING.—The Commandant 

shall develop staffing predictions, define human capital performance initiatives, and identify preliminary training needs for any 

such project or program. 

(d) DHS ACQUISITION APPROVAL.—A Level 1 or Level 2 acquisition project or program may not be implemented unless it is apVerDate Nov 24 2008 03:15 Nov 03, 2009 Jkt 089010 PO 00000 Frm 00054 Fmt 6659 Sfmt 6603 E:\HR\OC\SR095.XXX SR095

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proved by the Department of Homeland Security Acquisition Review 

Board or the Joint Review Board. 

§ 572. Acquisition 

(a) IN GENERAL.—The Commandant may not establish a Level 1 

or Level 2 acquisition project or program approved under section 

571(d) until the Commandant— 

(1) clearly defines the operational requirements for the project 

or program; 

(2) establishes the feasibility of alternatives; 

(3) develops an acquisition project or program baseline; 

(4) produces a life-cycle cost estimate; and 

(5) assesses the relative merits of alternatives to determine a 

preferred solution in accordance with the requirements of this 

section. 

(b) ANALYSIS OF ALTERNATIVES.— (1) IN GENERAL.—The Commandant shall conduct an analysis of alternatives for the asset or capability to be acquired in 

an analyze and select phase of the acquisition process. 

(2) REQUIREMENTS.—The analysis of alternatives shall be 

conducted by a federally funded research and development center, a qualified entity of the Department of Defense, or a similar 

independent third party entity that has appropriate acquisition 

expertise and has no substantial financial interest in any part 

of the acquisition project or program that is the subject of the 

analysis. At a minimum, the analysis of alternatives shall include— 

(A) an assessment of the technical maturity, and technical and other risks; 

(B) an examination of capability, interoperability, and 

other disadvantages; 

(C) an evaluation of whether different combinations or 

quantities of specific assets or capabilities could meet the 

Coast Guard’s overall performance needs; 

(D) a discussion of key assumptions and variables, and 

sensitivity to change in such assumptions and variables; 

(E) when an alternative is an existing asset or prototype, 

an evaluation of relevant safety and performance records 

and costs; 

(F) a calculation of life-cycle costs including— 

(i) an examination of likely research and development costs and the levels of uncertainty associated with 

such estimated costs; 

(ii) an examination of likely production and deployment costs and levels of uncertainty associated with 

such estimated costs; 

(iii) an examination of likely operating and support 

costs and the levels of uncertainty associated with such 

estimated costs; 

(iv) if they are likely to be significant, an examination of likely disposal costs and the levels of uncertainty associated with such estimated costs; and 

(v) such additional measures as the Commandant or 

the Secretary of Homeland Security determines to be 

necessary for appropriate evaluation of the asset; and 


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(G) the business case for each viable alternative. 

(c) TEST AND EVALUATION MASTER PLAN.— (1) IN GENERAL.—For any Level 1 or Level 2 acquisition 

project or program the Chief Acquisition Officer shall approve 

a test and evaluation master plan specific to the acquisition 

project or program for the capability, asset, or subsystems of the 

capability or asset and intended to minimize technical, cost, 

and schedule risk as early as practicable in the development of 

the project or program. 

(2) TEST AND EVALUATION STRATEGY.—The master plan 

shall— 

(A) set forth an integrated test and evaluation strategy 

that will verify that capability-level or asset-level and subsystem-level design and development, including performance and supportability, have been sufficiently proven before the capability, asset, or subsystem of the capability or 

asset is approved for production; and 

(B) require that adequate developmental tests and evaluations and operational tests and evaluations established 

under subparagraph (A) are performed to inform production decisions. 

(3) OTHER COMPONENTS OF THE MASTER PLAN.—At a minimum, the master plan shall identify— 

(A) the key performance parameters to be resolved 

through the integrated test and evaluation strategy; 

(B) critical operational issues to be assessed in addition 

to the key performance parameters; 

(C) specific development test and evaluation phases and 

the scope of each phase; 

(D) modeling and simulation activities to be performed, 

if any, and the scope of such activities; 

(E) early operational assessments to be performed, if any, 

and the scope of such assessments; 

(F) operational test and evaluation phases; 

(G) an estimate of the resources, including funds, that 

will be required for all test, evaluation, assessment, modeling, and simulation activities; and 

(H) the Government entity or independent entity that will 

perform the test, evaluation, assessment, modeling, and 

simulation activities. 

(4) UPDATE.—The Chief Acquisition Officer shall approve an 

updated master plan whenever there is a revision to project or 

program test and evaluation strategy, scope, or phasing. 

(5) LIMITATION.—The Coast Guard may not— 

(A) proceed beyond that phase of the acquisition process 

that entails approving the supporting acquisition of a capability or asset before the master plan is approved by the 

Chief Acquisition Officer; or 

(B) award any production contract for a capability, asset, 

or subsystem for which a master plan is required under 

this subsection before the master plan is approved by the 

Chief Acquisition Officer. 

(d) LIFE-CYCLE COST ESTIMATES.— 

(1) IN GENERAL.—The Commandant shall implement mechanisms to ensure the development and regular updating of lifeVerDate Nov 24 2008 03:15 Nov 03, 2009 Jkt 089010 PO 00000 Frm 00056 Fmt 6659 Sfmt 6603 E:\HR\OC\SR095.XXX SR095

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cycle cost estimates for each Level 1 or Level 2 acquisition to ensure that these estimates are considered in decisions to develop 

or produce new or enhanced capabilities and assets. 

(2) TYPES OF ESTIMATES.—In addition to life-cycle cost estimates that may be developed by acquisition program offices, the 

Commandant shall require that an independent life-cycle cost 

estimate be developed for each Level 1 or Level 2 acquisition 

project or program. 

(3) REQUIRED UPDATES.—For each Level 1 or Level 2 acquisition project or program the Commandant shall require that lifecycle cost estimates shall be updated before each milestone decision is concluded and the project or program enters a new acquisition phase. 

(e) DHS ACQUISITION APPROVAL.—A project or program may not 

enter the obtain phase under section 573 unless the Department of 

Homeland Security Acquisition Review Board or the Joint Review 

Board (or other entity to which such responsibility is delegated by 

the Secretary of Homeland Security) has approved the analysis of 

alternatives for the project. The Joint Review Board may also approve the low rates initial production quantity for the project or program if such an initial production quantity is planned by the acquisition project or program and deemed appropriate by the Joint Review Board. 

§ 573. Preliminary development and demonstration 

(a) IN GENERAL.—The Commandant shall ensure that developmental test and evaluation, operational test and evaluation, life 

cycle cost estimates, and the development and demonstration requirements are met to confirm that the projects or programs meet 

the requirements described in the mission-needs statement and the 

operational-requirements document and the following development 

and demonstration objectives: 

(1) To demonstrate that the most promising design, manufacturing, and production solution is based upon a stable, producible, and cost-effective product design. 

(2) To ensure that the product capabilities meet contract specifications, acceptable operational performance requirements, 

and system security requirements. 

(3) To ensure that the product design is mature enough to 

commit to full production and deployment. 

(b) TESTS AND EVALUATIONS.— 

(1) IN GENERAL.—The Commandant shall ensure that the 

Coast Guard conducts developmental tests and evaluations and 

operational tests and evaluations of a capability or asset and 

the subsystems of the capability or asset for which a master 

plan has been prepared under section 572(c)(1). 

(2) USE OF THIRD PARTIES.—The Commandant shall ensure 

that the Coast Guard uses independent third parties with expertise in testing and evaluating the capabilities or assets and the 

subsystems of the capabilities or assets being acquired to conduct developmental tests and evaluations and operational tests 

and evaluations whenever the Coast Guard lacks the capability 

to conduct the tests and evaluations required by a master plan. 

(3) COMMUNICATION OF SAFETY CONCERNS.—The Commandant shall require that safety concerns identified during 


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developmental or operational tests and evaluations or through 

independent or Government-conducted design assessments of 

capabilities or assets and subsystems of capabilities or assets to 

be acquired by the Coast Guard shall be communicated as soon 

as practicable, but not later than 30 days after the completion 

of the test or assessment event or activity that identified the 

safety concern, to the program manager for the capability or 

asset and the subsystems concerned and to the Chief Acquisition Officer. 

(4) ASSET ALREADY IN LOW, INITIAL, OR FULL-RATE PRODUC- TION.—If operational test and evaluation on a capability or 

asset already in low, initial, or full-rate production identifies a 

safety concern with the capability or asset or any subsystems of 

the capability or asset not previously identified during developmental or operational test and evaluation, the Commandant 

shall— 

(A) notify the program manager and the Chief Acquisition Officer of the safety concern as soon as practicable, but 

not later than 30 days after the completion of the test and 

evaluation event or activity that identified the safety concern; and 

(B) notify the Chief Acquisition Officer and include in 

such notification— 

(i) an explanation of the actions that will be taken to 

correct or mitigate the safety concern in all capabilities 

or assets and subsystems of the capabilities or assets 

yet to be produced, and the date by which those actions 

will be taken; 

(ii) an explanation of the actions that will be taken 

to correct or mitigate the safety concern in previously 

produced capabilities or assets and subsystems of the 

capabilities or assets, and the date by which those actions will be taken; and 

(iii) an assessment of the adequacy of current funding to correct or mitigate the safety concern in capabilities or assets and subsystems of the capabilities or assets and in previously produced capabilities or assets 

and subsystems. 

(c) TECHNICAL CERTIFICATION.— (1) IN GENERAL.—The Commandant shall—ensure that any 

Level 1 or Level 2 acquisition project or program is certified by 

the technical authority of the Coast Guard after review by an 

independent third party with capabilities in the mission area, 

asset, or particular asset component. 

(2) TEMPEST TESTING.—The Commandant shall— 

(A) cause all electronics on all aircraft, surface, and 

shore assets that require TEMPEST certification and that 

are delivered after the date of enactment of the Coast 

Guard Authorization Act for Fiscal Years 2010 and 2011 to 

be tested in accordance with master plan standards and 

communications security standards by an independent 

third party that is authorized by the Federal Government 

to perform such testing; and 

(B) certify that the assets meet all applicable TEMPEST 

requirements. 


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(3) VESSEL CLASSIFICATION.—The Commandant shall cause 

each cutter, other than the National Security Cutter, acquired 

by the Coast Guard and delivered after the date of enactment 

of the Coast Guard Authorization Act for Fiscal Years 2010 and 

2011 is to be classed by the American Bureau of Shipping before final acceptance. 

(d) ACQUISITION DECISION.—The Commandant may not proceed 

to full scale production, deployment, and support of a Level 1 or 

Level 2 acquisition project or program unless the Department of 

Homeland Security Acquisition Review Board has verified that the 

delivered asset or system meets the project or program performance 

and cost goals. 

§ 574. Acquisition, production, deployment, and support 

(a) IN GENERAL.—The Commandant shall— 

(1) ensure there is a stable and efficient production and support capability to develop an asset or system; 

(2) conduct follow on testing to confirm and monitor performance and correct deficiencies; and 

(3) conduct acceptance tests and trails upon the delivery of 

each asset or system to ensure the delivered asset or system 

achieves full operational capability. 

(b) ELEMENTS.—The Commandant shall— 

(1) execute the productions contracts; 

(2) ensure the delivered products meet operational cost and 

schedules requirements established in the acquisition program 

baseline; 

(3) validate manpower and training requirements to meet system needs to operate, maintain, support, and instruct the system; and 

(4) prepare a project or program transition plan to enter into 

programmatic sustainment, operations, and support. 

§ 575. Acquisition program baseline breach 

(a) IN GENERAL.—The Commandant shall submit a report to the 

appropriate congressional committees as soon as possible, but not 

later than 30 days, after the Chief Acquisition Officer of the Coast 

Guard becomes aware of the breach of an acquisition program baseline for any Level 1 or Level 2 acquisition program, by— 

(1) a likely cost overrun greater than 15 percent of the acquisition program baseline for that individual capability or asset 

or a class of capabilities or assets; 

(2) a likely delay of more than 180 days in the delivery schedule for any individual capability or asset or class of capabilities 

or assets; or 

(3) an anticipated failure for any individual capability or 

asset or class of capabilities or assets to satisfy any key performance threshold or parameter under the acquisition program 

baseline. 

(b) CONTENT.—The report submitted under subsection (a) shall 

include— 

(1) a detailed description of the breach and an explanation of 

its cause; 

(2) the projected impact to performance, cost, and schedule; 


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(3) an updated acquisition program baseline and the complete 

history of changes to the original acquisition program baseline; 

(4) the updated acquisition schedule and the complete history 

of changes to the original schedule; 

(5) a full life-cycle cost analysis for the capability or asset or 

class of capabilities or assets; 

(6) a remediation plan identifying corrective actions and any 

resulting issues or risks; and 

(7) a description of how progress in the remediation plan will 

be measured and monitored. 

(c) SUBSTANTIAL VARIANCES IN COSTS OR SCHEDULE.—If a likely 

cost overrun is greater than 25 percent or a likely delay is greater 

than 12 months from the costs and schedule described in the acquisition program baseline for any Level 1 or Level 2 acquisition 

project or program of the Coast Guard, the Commandant shall include in the report a written certification, with a supporting explanation, that— 

(1) the capability or asset or capability or asset class to be acquired under the project or program is essential to the accomplishment of Coast Guard missions; 

(2) there are no alternatives to such capability or asset or capability or asset class which will provide equal or greater capability in both a more cost-effective and timely manner; 

(3) the new acquisition schedule and estimates for total acquisition cost are reasonable; and 

(4) the management structure for the acquisition program is 

adequate to manage and control performance, cost, and schedule. 

SUBCHAPTER 3—DEFINITIONS

§ 581. Definitions 

In this chapter: 

(1) APPROPRIATE CONGRESSIONAL COMMITTEES.—The term 

‘‘appropriate congressional committees’’ means the House of 

Representatives Committee on Transportation and Infrastructure and the Senate Committee on Commerce, Science, and 

Transportation. 

(2) CHIEF ACQUISITION OFFICER.—The term ‘‘Chief Acquisition 

Officer’’ means the officer appointed under section 55 of this 

title. 

(3) COMMANDANT.—The term ‘‘Commandant’’ means the Commandant of the Coast Guard. 

(4) JOINT REVIEW BOARD.—The term ‘‘Joint Review Board’’ 

means the Department of Homeland Security’s Investment Review Board, Joint Requirements Council, or other entity within 

the Department designated by the Secretary as the Joint Review 

Board for purposes of this chapter. 

(5) LEVEL 1 ACQUISITION.—The term ‘‘Level 1 acquisition’’ 

means— 

(A) an acquisition by the Coast Guard— 

(i) the estimated life-cycle costs of which exceed 

$1,000,000,000; or 

(ii) the estimated total acquisition costs of which exceed $300,000,000; or 


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(B) any acquisition that the Chief Acquisition Officer of 

the Coast Guard determines to have a special interest— 

(i) due to— 

(I) the experimental or technically immature nature of the asset; 

(II) the technological complexity of the asset; 

(III) the commitment of resources; or 

(IV) the nature of the capability or set of capabilities to be achieved; or 

(ii) because such acquisition is a joint acquisition. 

(6) LEVEL 2 ACQUISITION.—The term ‘‘Level 2 acquisition’’ 

means an acquisition by the Coast Guard— 

(A) the estimated life-cycle costs of which are equal to or less than $1,000,000,000, but greater than $300,000,000; or 

(B) the estimated total acquisition costs of which are equal to or less than $300,000,0000, but greater than 

$100,000,000. 

(7) LIFE-CYCLE COST.—The term ‘‘life-cycle cost’’ means all 

costs for development, procurement, construction, and operations and support for a particular capability or asset, without 

regard to funding source or management control. 

(8) SAFETY CONCERN.—The term ‘‘safety concern’’ means any 

hazard associated with a capability or asset or a subsystem of 

a capability or asset that is likely to cause serious bodily injury 

or death to a typical Coast Guard user in testing, maintaining, 

repairing, or operating the capability, asset, or subsystem or 

any hazard associated with the capability, asset, or subsystem 

that is likely to cause major damage to the capability, asset, or 

subsystem during the course of its normal operation by a typical Coast Guard user. 

* * * * * * * 

CHAPTER 17. ADMINISTRATION

§ 638a. Coast Guard vessels and aircraft defined 

For the purposes of sections 637 and 638 of this title, the term 

Coast Guard vessels and aircraft means— 

(1) any vessel or aircraft owned, leased, transferred to, or operated by the Coast Guard and under the command of a Coast 

Guard member; or 

(2) any other vessel or aircraft under the tactical control of 

the Coast Guard on which one or more members of the Coast 

Guard are assigned and conducting Coast Guard missions. 

ARMED FORCES RETIREMENT HOME ACT OF 1991 

SEC. 1502. DEFINITIONS. 

[24 U.S.C. 401] 

For purposes of this title: 

(1) The term ‘‘Retirement Home’’ includes the institutions established under section 1511, as follows: 

(A) The Armed Forces Retirement Home—Washington. 

(B) The Armed Forces Retirement Home—Gulfport. 

(2) The term ‘‘Local Board’’means a Local Board of Trustees 

established under section 1516. 


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60 

(3) The terms ‘‘Armed Forces Retirement Home Trust Fund’’ 

and ‘‘Fund’’ mean the Armed Forces Retirement Home Trust 

Fund established under section 1519(a). 

(4) The term ‘‘Armed Forces’’ ødoes not include the Coast 

Guard when it is not operating as a service in the Navy.¿ has 

the meaning given such term in section 101(4) of title 10. 

(5) The term ‘‘chief personnel officers’’ means— 

(A) the Deputy Chief of Staff for Personnel of the Army; 

(B) the Chief of Naval Personnel; 

(C) the Deputy Chief of Staff for Personnel of the Air 

Force; øand¿ 

(D) the Deputy Commandant of the Marine Corps for 

Manpower and Reserve øAffairs.¿ Affairs; and 

(E) the Assistant Commandant of the Coast Guard for 

Human Resources. 

(6) The term ‘‘senior noncommissioned officers’’ means the 

following: 

(A) The Sergeant Major of the Army. 

(B) The Master Chief Petty Officer of the Navy. 

(C) The Chief Master Sergeant of the Air Force. 

(D) The Sergeant Major of the Marine Corps. 

(E) The Master Chief Petty Officer of the Coast Guard. 

OIL POLLUTION ACT OF 1990 

SEC. 1001. DEFINITIONS 

[33 U.S.C. 2701] 

For the purposes of this Act, the term— 

(1) ‘‘act of God’’ means an unanticipated grave natural disaster or other natural phenomenon of an exceptional, inevitable, and irresistible character the effects of which could not 

have been prevented or avoided by the exercise of due care or 

foresight; 

(2) ‘‘barrel’’ means 42 United States gallons at 60 degrees 

fahrenheit; 

(3) ‘‘claim’’ means a request, made in writing for a sum certain, for compensation for damages or removal costs resulting 

from an incident; 

(4) ‘‘claimant’’ means any person or government who presents a claim for compensation under this title; 

(5) ‘‘damages’’ means damages specified in section 1002(b) of 

this Act, and includes the cost of assessing these damages; 

(6) ‘‘deepwater port’’ is a facility licensed under the Deepwater Port Act of 1974 (33 U.S.C. 1501–1524); 

(7) ‘‘discharge’’ means any emission (other than natural seepage), intentional or unintentional, and includes, but is not limited to, spilling, leaking, pumping, pouring, emitting, emptying, 

or dumping; 

(8) ‘‘exclusive economic zone’’ means the zone established by 

Presidential Proclamation Numbered 5030, dated March 10, 

1983, including the ocean waters of the areas referred to as 

‘‘eastern special areas’’ in Article 3(1) of the Agreement between the United States of America and the Union of Soviet 

Socialist Republics on the Maritime Boundary, signed June 1, 

1990; 


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(9) ‘‘facility’’ means any structure, group of structures, equipment, or device (other than a vessel) which is used for one or 

more of the following purposes: exploring for, drilling for, producing, storing, handling, transferring, processing, or transporting oil. This term includes any motor vehicle, rolling stock, 

or pipeline used for one or more of these purposes; 

(10) ‘‘foreign offshore unit’’ means a facility which is located, 

in whole or in part, in the territorial sea or on the continental 

shelf of a foreign country and which is or was used for one or 

more of the following purposes: exploring for, drilling for, producing, storing, handling, transferring, processing, or transporting oil produced from the seabed beneath the foreign country’s territorial sea or from the foreign country’s continental 

shelf; 

(11) ‘‘Fund’’ means the Oil Spill Liability Trust Fund, established by section 9509 of the Internal Revenue Code of 1986 

(26 U.S.C. 9509); 

(12) ‘‘gross ton’’ has the meaning given that term by the Secretary under part J of title 46, United States Code; 

(13) ‘‘guarantor’’ means any person, other than the responsible party, who provides evidence of financial responsibility for 

a responsible party under this Act; 

(14) ‘‘incident’’ means any occurrence or series of occurrences 

having the same origin, involving one or more vessels, facilities, or any combination thereof, resulting in the discharge or 

substantial threat of discharge of oil; 

(15) ‘‘Indian tribe’’ means any Indian tribe, band, nation, or 

other organized group or community, but not including any 

Alaska Native regional or village corporation, which is recognized as eligible for the special programs and services provided 

by the United States to Indians because of their status as Indians and has governmental authority over lands belonging to or 

controlled by the tribe; 

(16) ‘‘lessee’’ means a person holding a leasehold interest in 

an oil or gas lease on lands beneath navigable waters (as that 

term is defined in section 2(a) of the Submerged Lands Act (43 

U.S.C. 1301(a))) or on submerged lands of the Outer Continental Shelf, granted or maintained under applicable State law 

or the Outer Continental Shelf Lands Act (43 U.S.C. 1331 et 

seq.); 

(17) ‘‘liable’’ or ‘‘liability’’ shall be construed to be the standard of liability which obtains under section 311 of the Federal 

Water Pollution Control Act (33 U.S.C. 1321); 

(18) ‘‘mobile offshore drilling unit’’ means a vessel (other 

than a self-elevating lift vessel) capable of use as an offshore 

facility; 

(19) ‘‘National Contingency Plan’’ means the National Contingency Plan prepared and published under section 311(d) of 

the Federal Water Pollution Control Act, as amended by this 

Act, or revised under section 105 of the Comprehensive Environmental Response, Compensation, and Liability Act (42 

U.S.C. 9605); 

(20) ‘‘natural resources’’ includes land, fish, wildlife, biota, 

air, water, ground water, drinking water supplies, and other 

such resources belonging to, managed by, held in trust by, apVerDate Nov 24 2008 03:15 Nov 03, 2009 Jkt 089010 PO 00000 Frm 00063 Fmt 6659 Sfmt 6601 E:\HR\OC\SR095.XXX SR095

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pertaining to, or otherwise controlled by the United States (including the resources of the exclusive economic zone), any 

State or local government or Indian tribe, or any foreign government; 

(21) ‘‘navigable waters’’ means the waters of the United 

States, including the territorial sea; 

(22) ‘‘offshore facility’’ means any facility of any kind located 

in, on, or under any of the navigable waters of the United 

States, and any facility of any kind which is subject to the jurisdiction of the United States and is located in, on, or under 

any other waters, other than a vessel or a public vessel; 

(23) ‘‘oil’’ means oil of any kind or in any form, including petroleum, fuel oil, sludge, oil refuse, and oil mixed with wastes 

other than dredged spoil, but does not include any substance 

which is specifically listed or designated as a hazardous substance under subparagraphs (A) through (F) of section 101(14) 

of the Comprehensive Environmental Response, Compensation, 

and Liability Act (42 U.S.C. 9601) and which is subject to the 

provisions of that Act; 

(24) ‘‘onshore facility’’ means any facility (including, but not 

limited to, motor vehicles and rolling stock) of any kind located 

in, on, or under, any land within the United States other than 

submerged land; 

(25) the term ‘‘Outer Continental Shelf facility’’ means an offshore facility which is located, in whole or in part, on the 

Outer Continental Shelf and is or was used for one or more of 

the following purposes: exploring for, drilling for, producing, 

storing, handling, transferring, processing, or transporting oil 

produced from the Outer Continental Shelf; 

(26) ‘‘owner or operator’’— 

(A) means— 

(i) in the case of a vessel, any person owning, operating, or chartering by demise, the vessel; 

(ii) in the case of an onshore or offshore facility, any 

person owning or operating such facility; 

(iii) in the case of any abandoned offshore facility, 

the person who owned or operated such facility immediately prior to such abandonment; 

(iv) in the case of any facility, title or control of 

which was conveyed due to bankruptcy, foreclosure, 

tax delinquency, abandonment, or similar means to a 

unit of State or local government, any person who 

owned, operated, or otherwise controlled activities at 

such facility immediately beforehand; 

(v) notwithstanding subparagraph (B)(i), and in the 

same manner and to the same extent, both procedurally and substantively, as any nongovernmental 

entity, including for purposes of liability under section 

1002, any State or local government that has caused 

or contributed to a discharge or substantial threat of 

a discharge of oil from a vessel or facility ownership 

or control of which was acquired involuntarily 

through— 

(I) seizure or otherwise in connection with law 

enforcement activity; 


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(II) bankruptcy; 

(III) tax delinquency; 

(IV) abandonment; or 

(V) other circumstances in which the government involuntarily acquires title by virtue of its 

function as sovereign; 

(vi) notwithstanding subparagraph (B)(ii), a person 

that is a lender and that holds indicia of ownership 

primarily to protect a security interest in a vessel or 

facility if, while the borrower is still in possession of 

the vessel or facility encumbered by the security interest, the person— 

(I) exercises decision making control over the 

environmental compliance related to the vessel or 

facility, such that the person has undertaken responsibility for oil handling or disposal practices 

related to the vessel or facility; or 

(II) exercises control at a level comparable to 

that of a manager of the vessel or facility, such 

that the person has assumed or manifested responsibility— 

(aa) for the overall management of the vessel or facility encompassing day-to-day decision making with respect to environmental 

compliance; or 

(bb) over all or substantially all of the operational functions (as distinguished from financial or administrative functions) of the vessel 

or facility other than the function of environmental compliance; and 

(B) does not include— 

(i) A unit of state or local government that acquired 

ownership or control of a vessel or facility involuntarily through— 

(I) seizure or otherwise in connection with law 

enforcement activity; 

(II) bankruptcy; 

(III) tax delinquency; 

(IV) abandonment; or 

(V) other circumstances in which the government involuntarily acquires title by virtue of its 

function as sovereign; 

(ii) a person that is a lender that does not participate in management of a vessel or facility, but holds 

indicia of ownership primarily to protect the security 

interest of the person in the vessel or facility; or 

(iii) a person that is a lender that did not participate 

in management of a vessel or facility prior to foreclosure, notwithstanding that the person— 

(I) forecloses on the vessel or facility; and 

(II) after foreclosure, sells, re-leases (in the case 

of a lease finance transaction), or liquidates the 

vessel or facility, maintains business activities, 

winds up operations, undertakes a removal action 

under section 311(c) of the Federal Water PolluVerDate Nov 24 2008 03:15 Nov 03, 2009 Jkt 089010 PO 00000 Frm 00065 Fmt 6659 Sfmt 6601 E:\HR\OC\SR095.XXX SR095

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tion Control Act (33 U.S.C. 1321(c)) or under the 

direction of an on-scene coordinator appointed 

under the National Contingency Plan, with respect to the vessel or facility, or takes any other 

measure to preserve, protect, or prepare the vessel 

or facility prior to sale or disposition, if the person 

seeks to sell, re-lease (in the case of a lease finance transaction), or otherwise divest the person 

of the vessel or facility at the earliest practicable, 

commercially reasonable time, on commercially 

reasonable terms, taking into account market conditions and legal and regulatory requirements; 

(27) ‘‘person’’ means an individual, corporation, partnership, 

association, State, municipality, commission, or political subdivision of a State, or any interstate body; 

(28) ‘‘permittee’’ means a person holding an authorization, license, or permit for geological exploration issued under section 

11 of the Outer Continental Shelf Lands Act (43 U.S.C. 1340) 

or applicable State law; 

(29) ‘‘public vessel’’ means a vessel owned or bareboat chartered and operated by the United States, or by a State or political subdivision thereof, or by a foreign nation, except when the 

vessel is engaged in commerce; 

(30) ‘‘remove’’ or ‘‘removal’’ means containment and removal 

of oil or a hazardous substance from water and shorelines or 

the taking of other actions as may be necessary to minimize or 

mitigate damage to the public health or welfare, including, but 

not limited to, fish, shellfish, wildlife, and public and private 

property, shorelines, and beaches; 

(31) ‘‘removal costs’’ means the costs of removal that are incurred after a discharge of oil has occurred or, in any case in 

which there is a substantial threat of a discharge of oil, the 

costs to prevent, minimize, or mitigate oil pollution from such 

an incident; 

(32) ‘‘responsible party’’ means the following: 

(A) VESSELS.—In the case of a vessel, any person owning, operating, or demise chartering the vessel. In the case 

of a vessel, the term ‘‘responsible party’’ also includes the 

owner of oil being transported in a tank vessel with a single hull after December 31, 2010 (other than a vessel described in section 3703a(b)(3) of title 46, United States 

Code). 

(B) ONSHORE FACILITIES.—In the case of an onshore facility (other than a pipeline), any person owning or operating the facility, except a Federal agency, State, municipality, commission, or political subdivision of a State, or 

any interstate body, that as the owner transfers possession 

and right to use the property to another person by lease, 

assignment, or permit. 

(C) OFFSHORE FACILITIES.—In the case of an offshore facility (other than a pipeline or a deepwater port licensed 

under the Deepwater Port Act of 1974 (33 U.S.C. 1501 et 

seq.)), the lessee or permittee of the area in which the facility is located or the holder of a right of use and easement granted under applicable State law or the Outer 


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Continental Shelf Lands Act (43 U.S.C. 1301–1356) for the 

area in which the facility is located (if the holder is a different person than the lessee or permittee), except a Federal agency, State, municipality, commission, or political 

subdivision of a State, or any interstate body, that as 

owner transfers possession and right to use the property to 

another person by lease, assignment, or permit. 

(D) DEEPWATER PORTS.—In the case of a deepwater port 

licensed under the Deepwater Port Act of 1974 (33 U.S.C. 

1501–1524), the licensee. 

(E) PIPELINES.—In the case of a pipeline, any person 

owning or operating the pipeline. 

(F) ABANDONMENT.—In the case of an abandoned vessel, 

onshore facility, deepwater port, pipeline, or offshore facility, the persons who would have been responsible parties 

immediately prior to the abandonment of the vessel or facility. 

(33) ‘‘Secretary’’ means the Secretary of the department in 

which the Coast Guard is operating; 

(34) ‘‘tank vessel’’ means a vessel that is constructed or 

adapted to carry, or that carries, oil or hazardous material in 

bulk as cargo or cargo residue, and that— 

(A) is a vessel of the United States; 

(B) operates on the navigable waters; or 

(C) transfers oil or hazardous material in a place subject 

to the jurisdiction of the United States; 

(35) ‘‘territorial seas’’ means the belt of the seas measured 

from the line of ordinary low water along that portion of the 

coast which is in direct contact with the open sea and the line 

marking the seaward limit of inland waters, and extending 

seaward a distance of 3 miles; 

(36) ‘‘United States’’ and ‘‘State’’ mean the several States of 

the United States, the District of Columbia, the Commonwealth of Puerto Rico, Guam, American Samoa, the United 

States Virgin Islands, the Commonwealth of the Northern 

Marianas, and any other territory or possession of the United 

States; 

(37) ‘‘vessel’’ means every description of watercraft or other 

artificial contrivance used, or capable of being used, as a 

means of transportation on water, other than a public vessel; 

(38) ‘‘participate in management’’— 

(A)(i) means actually participating in the management 

or operational affairs of a vessel or facility; and 

(ii) does not include merely having the capacity to influence, or the unexercised right to control, vessel or facility 

operations; and 

(B) does not include— 

(i) performing an act or failing to act prior to the 

time at which a security interest is created in a vessel 

or facility; 

(ii) holding a security interest or abandoning or releasing a security interest; 

(iii) including in the terms of an extension of credit, 

or in a contract or security agreement relating to the 


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extension, a covenant, warranty, or other term or condition that relates to environmental compliance; 

(iv) monitoring or enforcing the terms and conditions of the extension of credit or security interest; 

(v) monitoring or undertaking one or more inspections of the vessel or facility; 

(vi) requiring a removal action or other lawful 

means of addressing a discharge or substantial threat 

of a discharge of oil in connection with the vessel or 

facility prior to, during, or on the expiration of the 

term of the extension of credit; 

(vii) providing financial or other advice or counseling 

in an effort to mitigate, prevent, or cure default or 

diminution in the value of the vessel or facility; 

(viii) restructuring, renegotiating, or otherwise 

agreeing to alter the terms and conditions of the extension of credit or security interest, exercising forbearance; 

(ix) exercising other remedies that may be available 

under applicable law for the breach of a term or condition of the extension of credit or security agreement; 

or 

(x) conducting a removal action under 311(c) of the 

Federal Water Pollution Control Act (33 U.S.C. 

1321(c)) or under the direction of an on-scene coordinator appointed under the National Contingency Plan, 

if such actions do not rise to the level of participating 

in management under subparagraph (A) of this paragraph and paragraph (26)(A)(vi); 

(39) ‘‘extension of credit’’ has the meaning provided in section 101(20)(G)(i) of the Comprehensive Environmental Response, Compensation and Liability Act of 1980 (42 U.S.C. 

9601(20)(G)(i)); 

(40) ‘‘financial or administrative function’’ has the meaning 

provided in section 101(20)(G)(ii) of the Comprehensive Environmental Response, Compensation and Liability Act of 1980 

(42 U.S.C. 9601(20)(G)(ii)); 

(41) ‘‘foreclosure’’ and ‘‘foreclose’’ each has the meaning provided in section 101(20)(G)(iii) of the Comprehensive Environmental Response, Compensation and Liability Act of 1980 (42 

U.S.C. 9601(20)(G)(iii)); 

(42) ‘‘lender’’ has the meaning provided in section 

101(20)(G)(iv) of the Comprehensive Environmental Response, 

Compensation and Liability Act of 1980 (42 U.S.C. 

9601(20)(G)(iv)); 

(43) ‘‘operational function’’ has the meaning provided in section 101(20)(G)(v) of the Comprehensive Environmental Response, Compensation and Liability Act of 1980 (42 U.S.C. 

9601(20)(G)(v)); and 

(44) ‘‘security interest’’ has the meaning provided in section 

101(20)(G)(vi) of the Comprehensive Environmental Response, 

Compensation and Liability Act of 1980 (42 U.S.C. 

9601(20)(G)(vi)). 


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SEC. 1012. USES OF THE FUND. 

[33 U.S.C. 2712] 

(a) USES GENERALLY.—The Fund shall be available to the President for— 

(1) the payment of removal costs, including the costs of monitoring removal actions, determined by the President to be consistent with the National Contingency Plan— 

(A) by Federal authorities; or 

(B) by a Governor or designated State official under subsection (d); 

(2) the payment of costs incurred by Federal, State, or Indian 

tribe trustees in carrying out their functions under section 

1006 for assessing natural resource damages and for developing and implementing plans for the restoration, rehabilitation, replacement, or acquisition of the equivalent of damaged 

resources determined by the President to be consistent with 

the National Contingency Plan; 

(3) the payment of removal costs determined by the President to be consistent with the National Contingency Plan as a 

result of, and damages resulting from, a discharge, or a substantial threat of a discharge, of oil from a foreign offshore 

unit; 

(4) the payment of claims in accordance with section 1013 for 

uncompensated removal costs determined by the President to 

be consistent with the National Contingency Plan or uncompensated damages; 

(5) the payment of Federal administrative, operational, and 

personnel costs and expenses reasonably necessary for and incidental to the implementation, administration, and enforcement of this Act (including, but not limited to, sections 

1004(d)(2), 1006(e), 4107, 4110, 4111, 4112, 4117, 5006, 8103, 

and title VII) and subsections (b), (c), (d), (j), and (l) of section 

311 of the Federal Water Pollution Control Act (33 U.S.C. 

1321), as amended by this Act, with respect to prevention, removal, and enforcement related to oil discharges, provided 

that— 

(A) not more than $25,000,000 in each fiscal year shall 

be available to the Secretary for operating expenses incurred by the Coast Guard; 

(B) not more than $15,000,000 in each fiscal year shall 

be available to the Under Secretary of Commerce for 

Oceans and Atmosphere for expenses incurred by, and activities related to, response and damage assessment capabilities of the National Oceanic and Atmospheric Administration; 

ø(B)¿ (C) not more than $30,000,000 each year through 

the end of fiscal year 1992 shall be available to establish 

the National Response System under section 311(j) of the 

Federal Water Pollution Control Act, as amended by this 

Act, including the purchase and prepositioning of oil spill 

removal equipment; and 

ø(C)¿ (D) not more than $27,250,000 in each fiscal year 

shall be available to carry out title VII of this Act; and 

(6) the making of loans pursuant to the program established 

under section 1013(f). 


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(b) DEFENSE TO LIABILITY FOR FUND.—The Fund shall not be 

available to pay any claim for removal costs or damages to a particular claimant, to the extent that the incident, removal costs, or 

damages are caused by the gross negligence or willful misconduct 

of that claimant. 

(c) OBLIGATION OF FUND BY FEDERAL OFFICIALS.—The President 

may promulgate regulations designating one or more Federal officials who may obligate money in accordance with subsection (a). 

(d) ACCESS TO FUND BY STATE OFFICIALS.— 

(1) IMMEDIATE REMOVAL.—In accordance with regulations 

promulgated under this section, the President, upon the request of the Governor of a State or pursuant to an agreement 

with a State under paragraph (2), may obligate the Fund for 

payment in an amount not to exceed $250,000 for removal 

costs consistent with the National Contingency Plan required 

for the immediate removal of a discharge, or the mitigation or 

prevention of a substantial threat of a discharge, of oil. 

(2) AGREEMENTS.— 

(A) IN GENERAL.—The President shall enter into an 

agreement with the Governor of any interested State to establish procedures under which the Governor or a designated State official may receive payments from the Fund 

for removal costs pursuant to paragraph (1). 

(B) TERMS.—Agreements under this paragraph— 

(i) may include such terms and conditions as may be 

agreed upon by the President and the Governor of a 

State; 

(ii) shall provide for political subdivisions of the 

State to receive payments for reasonable removal 

costs; and 

(iii) may authorize advance payments from the Fund 

to facilitate removal efforts. 

(e) REGULATIONS.—The President shall— 

(1) not later than 6 months after the date of the enactment 

of this Act, publish proposed regulations detailing the manner 

in which the authority to obligate the Fund and to enter into 

agreements under this subsection shall be exercised; and 

(2) not later than 3 months after the close of the comment 

period for such proposed regulations, promulgate final regulations for that purpose. 

(f) RIGHTS OF SUBROGATION.—Payment of any claim or obligation 

by the Fund under this Act shall be subject to the United States 

Government acquiring by subrogation all rights of the claimant or 

State to recover from the responsible party. 

ø(g) AUDITS.—The Comptroller General shall audit all payments, 

obligations, reimbursements, and other uses of the Fund, to assure 

that the Fund is being properly administered and that claims are 

being appropriately and expeditiously considered. The Comptroller 

General shall submit to the Congress an interim report one year 

after the date of the enactment of this Act. The Comptroller General shall thereafter audit the Fund as is appropriate. Each Federal agency shall cooperate with the Comptroller General in carrying out this subsection.¿ 

(g) AUDITS.— 


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(1) IN GENERAL.—The Comptroller General of the United 

States shall conduct an audit, including a detailed accounting 

of each disbursement from the Fund in excess of $500,000 that 

is— 

(A) disbursed by the National Pollution Fund Center; 

and 

(B) administered and managed by the receiving Federal 

agencies, including final payments made to agencies and 

contractors and, to the extent possible, subcontractors. 

(2) FREQUENCY.—The audits shall be conducted— 

(A) at least once every 3 years after the date of enactment 

of the Coast Guard Authorization Act for Fiscal Years 2010 

and 2011 until 2016; and 

(B) at least once every 5 years after the last audit conducted under subparagraph (A). 

(3) SUBMISSION OF RESULTS.—The Comptroller shall submit 

the results of each audit conducted under paragraph (1) to— 

(A) the Senate Committee on Commerce, Science, and 

Transportation; 

(B) the House of Representatives Committee on Transportation and Infrastructure; and 

(C) the Secretary or Administrator of each agency referred to in paragraph (1)(B). 

(h) REPORTS.— (1) IN GENERAL.—Within one year after the date of enactment 

of the Coast Guard Authorization Act for Fiscal Years 2010 and 

2011, and annually thereafter, the President, through the Secretary of the Department in which the Coast Guard is operating, shall— 

(A) provide a report on disbursements for the preceding 

fiscal year from the Fund, regardless of whether those disbursements were subject to annual appropriations, to— 

(i) the Senate Committee on Commerce, Science, and 

Transportation; and 

(ii) the House of Representatives Committee on 

Transportation and Infrastructure: and 

(B) make the report available to the public on the National Pollution Funds Center Internet website. 

(2) CONTENTS.—The report shall include— (A) a list of each disbursement of $250,000 or more from 

the Fund during the preceding fiscal year; and 

(B) a description of how each such use of the Fund meets 

the requirements of subsection (a). 

(3) AGENCY RECORDKEEPING.—Each Federal agency that receives amounts from the Fund shall maintain records describing the purposes for which such funds were obligated or expended in such detail as the Secretary may require for purposes 

of the report required under paragraph (1). 

(i) AUTHORIZATIONS.—There are authorized to be appropriated 

such sums as may be necessary to carry out subsections (g) and (h). 

ø(h)¿ (j) PERIOD OF LIMITATIONS FOR CLAIMS.— 

(1) REMOVAL COSTS.—No claim may be presented under this 

title for recovery of removal costs for an incident unless the 

claim is presented within 6 years after the date of completion 

of all removal actions for that incident. 


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(2) DAMAGES.—No claim may be presented under this section 

for recovery of damages unless the claim is presented within 

3 years after the date on which the injury and its connection 

with the discharge in question were reasonably discoverable 

with the exercise of due care, or in the case of natural resource 

damages under section 1002(b)(2)(A), if later, the date of completion of the natural resources damage assessment under section 1006(e). 

(3) MINORS AND INCOMPETENTS.—The time limitations contained in this subsection shall not begin to run— 

(A) against a minor until the earlier of the date when 

such minor reaches 18 years of age or the date on which 

a legal representative is duly appointed for the minor, or 

(B) against an incompetent person until the earlier of 

the date on which such incompetent’s incompetency ends 

or the date on which a legal representative is duly appointed for the incompetent. 

ø(i)¿ (k) LIMITATION ON PAYMENT FOR SAME COSTS.—In any case 

in which the President has paid an amount from the Fund for any 

removal costs or damages specified under subsection (a), no other 

claim may be paid from the Fund for the same removal costs or 

damages. 

ø(j)¿ (l) OBLIGATION IN ACCORDANCE WITH PLAN.— 

(1) IN GENERAL.—Except as provided in paragraph (2), 

amounts may be obligated from the Fund for the restoration, 

rehabilitation, replacement, or acquisition of natural resources 

only in accordance with a plan adopted under section 1006(c). 

(2) EXCEPTION.—Paragraph (1) shall not apply in a situation 

requiring action to avoid irreversible loss of natural resources 

or to prevent or reduce any continuing danger to natural resources or similar need for emergency action. 

ø(k)¿ (m) PREFERENCE FOR PRIVATE PERSONS IN AREA AFFECTED

BY DISCHARGE.— 

(1) IN GENERAL.—In the expenditure of Federal funds for removal of oil, including for distribution of supplies, construction, 

and other reasonable and appropriate activities, under a contract or agreement with a private person, preference shall be 

given, to the extent feasible and practicable, to private persons 

residing or doing business primarily in the area affected by the 

discharge of oil. 

(2) LIMITATION.—This subsection shall not be considered to 

restrict the use of Department of Defense resources. 

SEC. 1016. FINANCIAL RESPONSIBILITY. 

[33 U.S.C. 2716] 

(a) REQUIREMENT.—The responsible party for— 

(1) any vessel over 300 gross tons (except a non-self-propelled vessel that does not carry oil as cargo or fuel) using any 

place subject to the jurisdiction of the United States; øor¿ 

(2) any vessel using the waters of the exclusive economic 

zone to transship or lighter oil destined for a place subject to 

the jurisdiction of the United States; or 

(3) any tank vessel over 100 gross tons (except a non-self-propelled vessel that does not carry oil as cargo) using any place 

subject to the jurisdiction of the United States; 


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shall establish and maintain, in accordance with regulations promulgated by the Secretary, evidence of financial responsibility sufficient to meet the maximum amount of liability to which the responsible party could be subjected under section 1004(a) or (d) of 

this Act, in a case where the responsible party would be entitled 

to limit liability under that section. If the responsible party owns 

or operates more than one vessel, evidence of financial responsibility need be established only to meet the amount of the maximum 

liability applicable to the vessel having the greatest maximum liability. 

(b) SANCTIONS.— 

(1) WITHHOLDING CLEARANCE.—The Secretary of the Treasury shall withhold or revoke the clearance required by section 

4197 of the Revised Statutes of the United States of any vessel 

subject to this section that does not have the evidence of financial responsibility required for the vessel under this section. 

(2) DENYING ENTRY TO OR DETAINING VESSELS.—The Secretary may— 

(A) deny entry to any vessel to any place in the United 

States, or to the navigable waters, or 

(B) detain at the place, any vessel that, upon request, 

does not produce the evidence of financial responsibility required for the vessel under this section. 

(3) SEIZURE OF VESSEL.—Any vessel subject to the requirements of this section which is found in the navigable waters 

without the necessary evidence of financial responsibility for 

the vessel shall be subject to seizure by and forfeiture to the 

United States. 

(c) OFFSHORE FACILITIES.— 

(1) IN GENERAL.— 

(A) EVIDENCE OF FINANCIAL RESPONSIBILITY REQUIRED.— 

Except as provided in paragraph (2), a responsible party 

with respect to an offshore facility that— 

(i)(I) is located seaward of the line of ordinary low 

water along that portion of the coast that is in direct 

contact with the open sea and the line marking the 

seaward limit of inland waters; or 

(II) is located in coastal inland waters, such as bays 

or estuaries, seaward of the line of ordinary low water 

along that portion of the coast that is not in direct 

contact with the open sea; 

(ii) is used for exploring for, drilling for, producing, 

or transporting oil from facilities engaged in oil exploration, drilling, or production; and 

(iii) has a worst-case oil spill discharge potential of 

more than 1,000 barrels of oil (or a lesser amount if 

the President determines that the risks posed by such 

facility justify it), shall establish and maintain evidence of financial responsibility in the amount required under subparagraph (B) or (C), as applicable. 

(B) AMOUNT REQUIRED GENERALLY.—Except as provided 

in subparagraph (C), the amount of financial responsibility 

for offshore facilities that meet the criteria of subparagraph (A) is— 


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(i) $35,000,000 for an offshore facility located seaward of the seaward boundary of a State; or 

(ii) $10,000,000 for an offshore facility located landward of the seaward boundary of a State. 

(C) GREATER AMOUNT.—If the President determines that 

an amount of financial responsibility for a responsible 

party greater than the amount required by subparagraph 

(B) is justified based on the relative operational, environmental, human health, and other risks posed by the quantity or quality of oil that is explored for, drilled for, produced, or transported by the responsible party, the evidence of financial responsibility required shall be for an 

amount determined by the President not exceeding 

$150,000,000. 

(D) MULTIPLE FACILITIES.—In a case in which a person 

is a responsible party for more than one facility subject to 

this subsection, evidence of financial responsibility need be 

established only to meet the amount applicable to the facility having the greatest financial responsibility requirement 

under this subsection. 

(E) DEFINITION.—For the purpose of this paragraph, the 

seaward boundary of a State shall be determined in accordance with section 2(b) of the Submerged Lands Act (43 

U.S.C. 1301(b)). 

(2) DEEPWATER PORTS.—Each responsible party with respect 

to a deepwater port shall establish and maintain evidence of 

financial responsibility sufficient to meet the maximum 

amount of liability to which the responsible party could be subjected under section 1004(a) of this Act in a case where the responsible party would be entitled to limit liability under that 

section. If the Secretary exercises the authority under section 

1004(d)(2) to lower the limit of liability for deepwater ports, 

the responsible party shall establish and maintain evidence of 

financial responsibility sufficient to meet the maximum 

amount of liability so established. In a case in which a person 

is the responsible party for more than one deepwater port, evidence of financial responsibility need be established only to 

meet the maximum liability applicable to the deepwater port 

having the greatest maximum liability. 

(d) [Not enacted] 

(e) METHODS OF FINANCIAL RESPONSIBILITY.—Financial responsibility under this section may be established by any one, or by any 

combination, of the following methods which the Secretary (in the 

case of a vessel) or the President (in the case of a facility) determines to be acceptable: evidence of insurance, surety bond, guarantee, letter of credit, qualification as a self-insurer, or other evidence of financial responsibility. Any bond filed shall be issued by 

a bonding company authorized to do business in the United States. 

In promulgating requirements under this section, the Secretary or 

the President, as appropriate, may specify policy or other contractual terms, conditions, or defenses which are necessary, or which 

are unacceptable, in establishing evidence of financial responsibility to effectuate the purposes of this Act. 

(f) CLAIMS AGAINST GUARANTOR.— 


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(1) IN GENERAL.—Subject to paragraph (2), a claim for which 

liability may be established under section 1002 may be asserted directly against any guarantor providing evidence of financial responsibility for a responsible party liable under that 

section for removal costs and damages to which the claim pertains. In defending against such a claim, the guarantor may invoke— 

(A) all rights and defenses which would be available to 

the responsible party under this Act; 

(B) any defense authorized under subsection (e); and 

(C) the defense that the incident was caused by the willful misconduct of the responsible party. 

The guarantor may not invoke any other defense that might be 

available in proceedings brought by the responsible party 

against the guarantor. 

(2) FURTHER REQUIREMENT.—A claim may be asserted pursuant to paragraph (1) directly against a guarantor providing evidence of financial responsibility under subsection (c)(1) with respect to an offshore facility only if— 

(A) the responsible party for whom evidence of financial 

responsibility has been provided has denied or failed to 

pay a claim under this Act on the basis of being insolvent, 

as defined under section 101(32) of title 11, United States 

Code, and applying generally accepted accounting principles; 

(B) the responsible party for whom evidence of financial 

responsibility has been provided has filed a petition for 

bankruptcy under title 11, United States Code; or 

(C) the claim is asserted by the United States for removal costs and damages or for compensation paid by the 

Fund under this Act, including costs incurred by the Fund 

for processing compensation claims. 

(3) RULEMAKING AUTHORITY.—Not later than 1 year after the 

date of enactment of this paragraph, the President shall promulgate regulations to establish a process for implementing 

paragraph (2) in a manner that will allow for the orderly and 

expeditious presentation and resolution of claims and effectuate the purposes of this Act. 

(g) LIMITATION ON GUARANTOR’S LIABILITY.—Nothing in this Act 

shall impose liability with respect to an incident on any guarantor 

for damages or removal costs which exceed, in the aggregate, the 

amount of financial responsibility which that guarantor has provided for a responsible party pursuant to this section. The total liability of the guarantor on direct action for claims brought under 

this Act with respect to an incident shall be limited to that amount. 

(h) CONTINUATION OF REGULATIONS.—Any regulation relating to 

financial responsibility, which has been issued pursuant to any provision of law repealed or superseded by this Act, and which is in 

effect on the date immediately preceding the effective date of this 

Act, is deemed and shall be construed to be a regulation issued 

pursuant to this section. Such a regulation shall remain in full 

force and effect unless and until superseded by a new regulation 

issued under this section. 


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(i) UNIFIED CERTIFICATE.—The Secretary may issue a single unified certificate of financial responsibility for purposes of this Act 

and any other law. 

TITLE 37. PAY AND ALLOWANCES OF THE UNIFORMED 

SERVICES 

CHAPTER 19. ADMINISTRATION

§ 1007. Deductions from pay 

(a) The pay of an officer of an armed force may be withheld, 

under section 5512 of title 5, only for an indebtedness to the United 

States admitted by the officer or shown by the judgment of a court, 

or upon a special order issued in the discretion of the Secretary of 

Defense (or the Secretary of Homeland Security, in the case of an 

officer of the Coast Guard when the Coast Guard is not operating 

as a service in the Navy), or upon the denial of relief of an officer 

pursuant to section 3527 of title 31. 

(b) An amount due the United States from an enlisted member 

of the Army or the Air Force for articles sold to him on credit under 

section 4621(a)(1) or 9621(a)(1) of title 10, as the case may be, shall 

be deducted from the next pay due him after the sale is reported. 

(c)(1) Under regulations prescribed by the Secretary concerned, 

an amount that a member of the uniformed services is administratively determined to owe the United States or any of its instrumentalities may be deducted from the member’s pay in monthly installments. 

(2) After the deduction of pay forfeited by the sentence of a courtmartial, if any, or otherwise authorized by law to be withheld, the 

deductions authorized by this section may not reduce the pay actually received by a member of the uniformed services for any month 

to less than one-third of the member’s pay for that month. 

(3) If the indebtedness of a member of the uniformed services to 

the United States is due to the overpayment of pay or allowances 

to the member through no fault of the member, the amount of the 

overpayment shall be recovered in monthly installments. The 

amount deducted from the pay of the member for a month to recover the overpayment amount may not exceed 20 percent of the 

member’s pay for that month unless the member requests or consents to collection of the overpayment at an accelerated rate. 

(4) If a member of the uniformed services is injured or wounded 

under the circumstances described in section 310(a)(2)(C) of this 

title or, while in the line of duty, incurs a wound, injury, or illness 

in a combat operation or combat zone designated by the Secretary 

of Defense, any overpayment of pay or allowances made to the 

member while the member recovers from the wound, injury, or illness may not be deducted from the member’s pay until— 

(A) the end of the 90-day period beginning on the date on 

which the member is notified of the overpayment; or 

(B) such earlier date as may be requested or agreed to by the 

member. 

(d) Subject to subsection (c), an amount due the United States 

from an enlisted member of the Army or the Air Force may be deducted from his pay on final statement, or from his savings on his 

clothing allowance. 


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(e) The amount of any damage, or cost of repairs, to arms or 

equipment caused by the abuse or negligence of a member of the 

Army, Navy, Air Force, or Marine Corps, as the case may be, who 

had the care of, or was using, the property when it was damaged, 

shall be deducted from his pay. 

(f) If, upon final settlement of the accounts of an officer of the 

Army or the Air Force charged with the issue of an article of military supply, there is a deficiency of that article, or if an article of 

military supply with whose issue an officer is charged is damaged, 

the value of the lost article or the amount of the damage shall be 

charged against the officer and deducted from his monthly pay, unless he shows to the satisfaction of the Secretary of the Army or 

the Secretary of the Air Force, as the case may be, by one or more 

affidavits setting forth the circumstances, that he was not at fault. 

(g) An amount due the United States from an officer of the Army 

or the Air Force for rations bought on credit, and for articles 

bought on credit under section 4621(a)(1) or 9621(a)(1) of title 10, 

shall be deducted from the next pay due that officer after the sale 

is reported. 

(h)(1) Upon request by a service relief society and subject to 

paragraph (2), an amount owed by a member of the uniformed 

services to the relief society may be deducted from the pay on final 

statement of such member and paid to that relief society. 

(2) An amount may not be deducted under paragraph (1) from 

the pay of a member unless the Secretary concerned makes a determination of the amount owed in accordance with the regulations 

prescribed under subsection (c). Any amount determined to be owed 

to a service relief society under this paragraph shall be considered 

an amount that the member is administratively determined to owe 

the United States under subsection (c) and shall be collectible in 

accordance with such subsection. 

(3) The Secretaries concerned shall prescribe regulations to carry 

out this subsection. 

(4) In this subsection, the term ‘‘service relief society’’ means the 

Army Emergency Relief, the Air Force Aid Society, the Navy Relief 

Society, or the Coast Guard Mutual Assistance. 

(i)(1) There shall be deducted each month from the pay of each 

enlisted member, warrant officer, and limited duty officer of the 

armed forces on active duty an amount (determined under paragraph (3)) not to exceed $1.00. 

(2) Amounts deducted under paragraph (1) shall be deposited in 

the Armed Forces Retirement Home Trust Fund. 

(3) The Secretary of Defense, after consultation with the øArmed 

Forces Retirement Home Board,¿ Chief Operating Officer of the 

Armed Forces Retirement Home, shall determine from time to time 

the amount to be deducted under paragraph (1) from the pay of enlisted members, warrant officers and limited duty officers on the 

basis of the financial needs of the Armed Forces Retirement Home. 

The amount to be deducted may be fixed at different amounts on 

the basis of grade or length of service, or both. 

(4) In this subsection, the term ‘‘armed forces’’ ødoes not include 

the Coast Guard when it is not operating as a service in the Navy.¿ 

has the meaning given such term in section 101(4) of title 10. 

(5) This subsection does not apply to an enlisted member, warrant officer, or limited duty officer of a reserve component. 


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TITLE 46. SHIPPING 

SUBTITLE II. VESSELS AND SEAMEN

PART G. MERCHANT SEAMEN PROTECTION AND RELIEF

CHAPTER 103. FOREIGN AND INTERCOASTAL VOYAGES

CHAPTER 105. COASTWISE VOYAGES

PART H. IDENTIFICATION OF VESSELS

CHAPTER 121. DOCUMENTATION OF VESSELS

SUBCHAPTER II. ENDORSEMENTS AND SPECIAL DOCUMENTATION

§ 12113. Fishery endorsement 

(a) REQUIREMENTS.—A fishery endorsement may be issued for a 

vessel that— 

(1) satisfies the requirements of section 12103 of this title 

and, if owned by an entity, the entity satisfies the ownership 

requirements in subsection (c); 

(2) was built in the United States; 

(3) if rebuilt, was rebuilt in the United States; 

(4) was not forfeited to the United States Government after 

July 1, 2001, for a breach of the laws of the United States; and 

(5) otherwise qualifies under the laws of the United States 

to engage in the fisheries. 

(b) AUTHORIZED ACTIVITY.— (1) IN GENERAL.—Subject to the laws of the United States 

regulating the fisheries, a vessel for which a fishery endorsement is issued may engage in the fisheries. 

(2) USE BY PROHIBITED PERSONS.—A fishery endorsement is 

invalid immediately if the vessel for which it is issued is used 

as a fishing vessel while it is chartered or leased to an individual who is not a citizen of the United States or to an entity 

that is not eligible to own a vessel with a fishery endorsement. 

(c) OWNERSHIP REQUIREMENTS FOR ENTITIES.— (1) IN GENERAL.—A vessel owned by an entity is eligible for 

a fishery endorsement only if at least 75 percent of the interest 

in the entity, at each tier of ownership and in the aggregate, 

is owned and controlled by citizens of the United States. 

(2) DETERMINING 75 PERCENT INTEREST.—In determining 

whether at least 75 percent of the interest in the entity is 

owned and controlled by citizens of the United States under 

paragraph (1), the Secretary shall apply section 50501(d) of 

this title, except that for this purpose the terms ‘‘control’’ or 

‘‘controlled’’— 

(A) include the right to— 

(i) direct the business of the entity; 

(ii) limit the actions of or replace the chief executive 

officer, a majority of the board of directors, any general partner, or any person serving in a management 

capacity of the entity; or 

(iii) direct the transfer, operation, or manning of a 

vessel with a fishery endorsement; but 

(B) do not include the right to simply participate in the 

activities under subparagraph (A), or the exercise of rights 


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under loan or mortgage covenants by a mortgagee eligible 

to be a preferred mortgagee under section 31322(a) of this 

title, except that a mortgagee not eligible to own a vessel 

with a fishery endorsement may only operate such a vessel 

to the extent necessary for the immediate safety of the vessel or for repairs, drydocking, or berthing changes. 

(3) EXCEPTIONS.—This subsection does not apply to a vessel 

when it is engaged in the fisheries in the exclusive economic 

zone under the authority of the Western Pacific Fishery Management Council established under section 302(a)(1)(H) of the 

Magnuson-Stevens Fishery Conservation and Management Act 

(16 U.S.C. 1852(a)(1)(H)) or to a purse seine vessel when it is 

engaged in tuna fishing in the Pacific Ocean outside the exclusive economic zone or pursuant to the South Pacific Regional 

Fisheries Treaty, provided that the owner of the vessel continues to comply with the eligibility requirements for a fishery 

endorsement under the Federal law that was in effect on October 1, 1998. A fishery endorsement issued pursuant to this 

paragraph is valid for engaging only in the activities described 

in this paragraph. 

(d) REQUIREMENTS BASED ON LENGTH, TONNAGE, OR HORSE- POWER.—— 

(1) APPLICATION.—This subsection applies to a vessel 

that—— 

(A) is greater than 165 feet in registered length; 

(B) is more than 750 gross registered tons as measured 

under chapter 145 of this title or 1,900 gross registered 

tons as measured under chapter 143 of this title; or 

(C) has an engine or engines capable of producing a total 

of more than 3,000 shaft horsepower. 

(2) REQUIREMENTS.—A vessel subject to this subsection is not 

eligible for a fishery endorsement unless—— 

(A)(i) a certificate of documentation was issued for the 

vessel and endorsed with a fishery endorsement that was 

effective on September 25, 1997; and 

(ii) the vessel is not placed under foreign registry after 

October 21, 1998; øand¿ 

ø(iii) if the fishery endorsement is invalidated after October 21, 1998, application is made for a new fishery endorsement within 15 business days of the invalidation; or¿ 

(B) the owner of the vessel demonstrates to the Secretary that the regional fishery management council of jurisdiction established under section 302(a)(1) of the Magnuson-Stevens Fishery Conservation and Management Act 

(16 U.S.C. 1852(a)(1)) has recommended after October 21, 

1998, and the Secretary of Commerce has approved, conservation and management measures in accordance with 

the American Fisheries Act (Public Law 105–277, div. C, 

title II) (16 U.S.C. 1851 note) to allow the vessel to be used 

in fisheries under the council’s øauthority.¿ authority; or 

(C) the vessel is either a rebuilt vessel or a replacement 

vessel under section 208(g) of the American Fisheries Act 

(title II of division C of Public Law 105–277; 112 Stat. 

2681–627) and is eligible for a fishery endorsement under 

this section. 


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(e) VESSELS MEASURING 100 FEET OR GREATER.— 

(1) IN GENERAL.—The Administrator of the Maritime Administration shall administer subsections (c) and (d) with respect 

to vessels 100 feet or greater in registered length. The owner 

of each such vessel shall file a statement of citizenship setting 

forth all relevant facts regarding vessel ownership and control 

with the Administrator on an annual basis to demonstrate 

compliance with those provisions. 

(2) REGULATIONS.—Regulations to implement this subsection 

shall conform to the extent practicable with the regulations establishing the form of citizenship affidavit set forth in part 355 

of title 46, Code of Federal Regulations, as in effect on September 25, 1997, except that the form of the statement shall 

be written in a manner to allow the owner of the vessel to satisfy any annual renewal requirements for a certificate of documentation for the vessel and to comply with this subsection 

and subsections (c) and (d), and shall not be required to be notarized. 

(3) TRANSFER OF OWNERSHIP.—Transfers of ownership and 

control of vessels subject to subsection (c) or (d), which are 100 

feet or greater in registered length, shall be rigorously scrutinized for violations of those provisions, with particular attention given to— 

(A) leases, charters, mortgages, financing, and similar 

arrangements; 

(B) the control of persons not eligible to own a vessel 

with a fishery endorsement under subsection (c) or (d), 

over the management, sales, financing, or other operations 

of an entity; and 

(C) contracts involving the purchase over extended periods of time of all, or substantially all, of the living marine 

resources harvested by a fishing vessel. 

(f) VESSELS MEASURING LESS THAN 100 FEET.—The Secretary 

shall establish reasonable and necessary requirements to demonstrate compliance with subsections (c) and (d), with respect to 

vessels measuring less than 100 feet in registered length, and shall 

seek to minimize the administrative burden on individuals who 

own and operate those vessels. 

(g) VESSELS PURCHASED THROUGH FISHING CAPACITY REDUCTION

PROGRAM.—A vessel purchased by the Secretary of Commerce 

through a fishing capacity reduction program under the MagnusonStevens Fishery Conservation and Management Act (16 U.S.C. 

1801 et seq.) or section 308 of the Interjurisdictional Fisheries Act 

of 1986 (16 U.S.C. 4107) is not eligible for a fishery endorsement, 

and any fishery endorsement issued for that vessel is invalid. 

(h) REVOCATION OF ENDORSEMENTS.—The Secretary shall revoke 

the fishery endorsement of any vessel subject to subsection (c) or 

(d) whose owner does not comply with those provisions. 

(i) REGULATIONS.—Regulations to implement subsections (c) and 

(d) and sections 12151(c) and 31322(b) of this title shall prohibit 

impermissible transfers of ownership or control, specify any transactions that require prior approval of an implementing agency, 

identify transactions that do not require prior agency approval, and 

to the extent practicable, minimize disruptions to the commercial 


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fishing industry, to the traditional financing arrangements of that 

industry, and to the opportunity to form fishery cooperatives. 

SUBTITLE III. MARITIME LIABILITY

CHAPTER 313. COMMERCIAL INSTRUMENTS AND MARITIME LIENS

SUBCHAPTER I. GENERAL

§ 31301. Definitions 

In this chapter— 

(1) ‘‘acknowledge’’ means making— 

(A) an acknowledgment or notarization before a notary 

public or other official authorized by a law of the United 

States or a State to take acknowledgments of deeds; or 

(B) a certificate issued under the Hague Convention 

Abolishing the Requirement of Legalisation for Foreign 

Public Documents, 1961; 

(2) ‘‘district court’’ means— 

(A) a district court of the United States (as defined in 

section 451 of title 28); 

(B) the District Court of Guam; 

(C) the District Court of the Virgin Islands; 

(D) the District Court for the Northern Mariana Islands; 

(E) the High Court of American Samoa; and 

(F) any other court of original jurisdiction of a territory 

or possession of the United States; 

(3) ‘‘mortgagee’’ means— 

(A) a person to whom property is mortgaged; or 

(B) when a mortgage on a vessel involves a trust, the 

trustee that is designated in the trust agreement; 

(4) ‘‘necessaries’’ includes repairs, supplies, towage, and the 

use of a dry dock or marine railway; 

(5) ‘‘preferred maritime lien’’ means a maritime lien on a vessel— 

(A) arising before a preferred mortgage was filed under 

section 31321 of this title; 

(B) for damage arising out of maritime tort; 

(C) for wages of a stevedore when employed directly by 

a person listed in section 31341 of this title; 

(D) for wages of the crew of the vessel; 

(E) for general average; or 

(F) for salvage, including contract salvage; øand¿ 

(6) ‘‘preferred mortgage’’— 

(A) means a mortgage that is a preferred mortgage 

under section 31322 of this title; and 

(B) also means in sections 31325 and 31326 of this title, 

a mortgage, hypothecation, or similar charge that is established as a security on a foreign vessel if the mortgage, 

hypothecation, or similar charge was executed under the 

laws of the foreign country under whose laws the ownership of the vessel is documented and has been registered 

under those laws in a public register at the port of registry 

of the vessel or at a central øoffice.¿ office; and 

(7) ‘‘Secretary’’ means the Secretary of the Department of 

Homeland Security, unless otherwise noted.’’. 


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§ 31302. Availability of instruments, copies, and information 

The Secretary øof Transportation¿ shall— 

(1) make any instrument filed or recorded with the Secretary 

under this chapter available for public inspection; 

(2) on request, provide a copy, including a certified copy, of 

any instrument made available for public inspection under this 

chapter; and 

(3) on request, provide a certificate containing information 

included in an instrument filed or recorded under this chapter. 

TITLE 46. SHIPPING 

SUBTITLE III. MARITIME LIABILITY

CHAPTER 313. COMMERCIAL INSTRUMENTS AND MARITIME LIENS

SUBCHAPTER I. GENERAL

[46 U.S.C. 31306] 

§ 31306. Declaration of citizenship 

(a) Except as provided by the Secretary øof Transportation¿, 

when an instrument transferring an interest in a vessel is presented to the Secretary of Transportation for filing or recording, 

the transferee shall file with the instrument a declaration, in the 

form the Secretary may prescribe by regulation, stating information about citizenship and other information the Secretary may require to show the transaction involved does not violate section 

56102 or 56103 of this title. 

(b) A declaration under this section filed by a corporation must 

be signed by its president, secretary, treasurer, or other official authorized by the corporation to execute the declaration. 

(c) Except as provided by the Secretary, an instrument transferring an interest in a vessel is not valid against any person until 

the declaration required by this section has been filed. 

(d) A person knowingly making a false statement of a material 

fact in a declaration filed under this section shall be fined under 

title 18, imprisoned for not more than 5 years, or both. § 31308. 

Secretary of Commerce or Transportation as mortgagee 

øWhen the Secretary of Commerce or Transportation is a mortgagee under this chapter, the Secretary¿ The Secretary of Commerce or Transportation, as a mortgagee under this chapter, may 

foreclose on a lien arising from a right established under a mortgage under chapter 537 of this title, subject to section 362(b) of 

title 11. 

SUBCHAPTER II. COMMERCIAL INSTRUMENTS

§ 31321. Filing, recording, and discharge 

(a)(1) A bill of sale, conveyance, mortgage, assignment, or related 

instrument, whenever made, that includes any part of a documented vessel or a vessel for which an application for documentation is filed, must be filed with the Secretary øof Transportation¿ 

to be valid, to the extent the vessel is involved, against any person 

except— 

(A) the grantor, mortgagor, or assignor; 


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(B) the heir or devisee of the grantor, mortgagor, or assignor; 

and 

(C) a person having actual notice of the sale, conveyance, 

mortgage, assignment, or related instrument. 

(2) Each bill of sale, conveyance, mortgage, assignment, or related instrument that is filed in substantial compliance with this 

section is valid against any person from the time it is filed with 

the Secretary. 

(3) The parties to an instrument or an application for documentation shall use diligence to ensure that the parts of the instrument 

or application for which they are responsible are in substantial 

compliance with the filing and documentation requirements. 

(4) A bill of sale, conveyance, mortgage, assignment, or related 

instrument may be filed electronically under regulations prescribed 

by the Secretary. 

(b) To be filed, a bill of sale, conveyance, mortgage, assignment, 

or related instrument must— 

(1) identify the vessel; 

(2) state the name and address of each party to the instrument; 

(3) state, if a mortgage, the amount of the direct or contingent obligations (in one or more units of account as agreed to 

by the parties) that is or may become secured by the mortgage, 

excluding interest, expenses, and fees; 

(4) state the interest of the grantor, mortgagor, or assignor 

in the vessel; 

(5) state the interest sold, conveyed, mortgaged, or assigned; 

and 

(6) be signed and acknowledged. 

(c) If a bill of sale, conveyance, mortgage, assignment, or related 

document is filed that involves a vessel for which an application for 

documentation is filed, and the Secretary decides that the vessel 

cannot be documented by an applicant— 

(1) the Secretary shall send notice of the Secretary’s decision, 

including reasons for the decision, to each interested party to 

the instrument filed for recording; and 

(2) 90 days after sending the notice as provided under clause 

(1) of this subsection, the Secretary— 

(A) may terminate the filing; and 

(B) may return the instrument filed without recording it 

under subsection (e) of this section. 

(d) A person may withdraw an application for documentation of 

a vessel for which a mortgage has been filed under this section only 

if the mortgagee consents. 

(e) The Secretary shall— 

(1) record the bills of sale, conveyances, mortgages, assignments, and related instruments of a documented vessel complying with subsection (b) of this section in the order they are 

filed; and 

(2) maintain appropriate indexes, for use by the public, of instruments filed or recorded, or both. 

(f) On full and final discharge of the indebtedness under a mortgage recorded under subsection (e)(1) of this section, a mortgagee, 

on request of the Secretary or mortgagor, shall provide the Secretary with an acknowledged certificate of discharge of the indebtVerDate Nov 24 2008 03:15 Nov 03, 2009 Jkt 089010 PO 00000 Frm 00083 Fmt 6659 Sfmt 6601 E:\HR\OC\SR095.XXX SR095

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edness in a form prescribed by the Secretary. The Secretary shall 

record the certificate. 

(g) The mortgage or related instrument of a vessel covered by a 

preferred mortgage under section 31322(d) of this title, that is later 

filed under this section at the time an application for documentation is filed, is valid under this section from the time the mortgage 

or instrument representing financing became a preferred mortgage 

under section 31322(d). 

(h) On full and final discharge of the indebtedness under a mortgage deemed to be a preferred mortgage under section 31322(d) of 

this title, a mortgagee, on request of the Secretary, a State, or 

mortgagor, shall provide the Secretary or the State, as appropriate, 

with an acknowledged certificate of discharge of the indebtedness 

in a form prescribed by the Secretary or the State, as applicable. 

If filed with the Secretary, the Secretary shall enter that information in the vessel identification system under chapter 125 of this 

title. 

§ 31329. Court sales of documented vessels 

(a) A documented vessel may be sold by order of a district court 

only to— 

(1) a person eligible to own a documented vessel under section 12103 of this title; or 

(2) a mortgagee of that vessel. 

(b) When a vessel is sold to a mortgagee not eligible to own a 

documented vessel— 

(1) the vessel must be held by the mortgagee for resale; 

(2) the vessel held by the mortgagee is subject to chapter 563 

of this title; and 

(3) the sale of the vessel to the mortgagee is not a sale to 

a person not a citizen of the United States under section 12132 

of this title. 

(c) Unless waived by the Secretary of Transportation, a person 

purchasing a vessel by court order under subsection (a)(1) of this 

section or from a mortgagee under subsection (a)(2) of this section 

must document the vessel under chapter 121 of this title. 

(d) The vessel may be operated by the mortgagee not eligible to 

own a documented vessel only with the approval of the øSecretary.¿ Secretary of Transportation. 

(e) A sale of a vessel contrary to this section is void. 

(f) This section does not apply to a documented vessel that has 

been operated only for pleasure. 

§ 31330. Penalties 

(a)(1) A mortgagor shall be fined under title 18, imprisoned for 

not more than 2 years, or both, if the mortgagor— 

(A) with intent to defraud, does not disclose an obligation on 

a vessel as required by section 31323(a) of this title; 

(B) with intent to defraud, incurs a contractual obligation in 

violation of section 31323(b) of this title; or 

(C) with intent to hinder or defraud an existing or future 

creditor of the mortgagor or a lienor of the vessel, files a mortgage with the øSecretary; or¿ Secretary. 

ø(D) with intent to defraud, does not comply with section 

31321(h) of this title.¿ 


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(2) A mortgagor is liable to the United States Government for a 

civil penalty of not more than $10,000 if the mortgagor— 

(A) does not disclose an obligation on a vessel as required by 

section 31323(a) of this title; 

(B) incurs a contractual obligation in violation of section 

31323(b) of this title; or 

(C) files with the Secretary a mortgage made not in good 

øfaith; or¿ faith. 

ø(D) does not comply with section 31321(h) of this title.¿ 

(b) (1) A person that knowingly violates section 31329 of this title 

shall be fined under title 18, imprisoned for not more than 3 years, 

or both. 

(2) A person violating section 31329 of this title is liable to 

the Government for a civil penalty of not more than $25,000. 

(3) A vessel involved in a violation under section 31329 of 

this title and its equipment may be seized by, and forfeited to, 

the Government. 

(c) If a person not an individual violates this section, the president or chief executive of the person also is subject to any penalty 

provided under this section. 

SUBCHAPTER III. MARITIME LIENS

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

(a) Except as provided under subsection (d) of this section, a person claiming a lien on a vessel documented, or for which an application for documentation has been filed, under chapter 121 may 

record with the Secretary øof Transportation¿ a notice of that person’s lien claim on the vessel. To be recordable, the notice must— 

(1) state the nature of the lien; 

(2) state the date the lien was established; 

(3) state the amount of the lien; 

(4) state the name and address of the person; and 

(5) be signed and acknowledged. 

(b)(1) The Secretary shall record a notice complying with subsection (a) of this section if, when the notice is presented to the 

Secretary for recording, the person having the claim files with the 

notice a declaration stating the following: 

(A) The information in the notice is true and correct to the 

best of the knowledge, information, and belief of the individual 

who signed it. 

(B) A copy of the notice, as presented for recordation, has 

been sent to each of the following: 

(i) The owner of the vessel. 

(ii) Each person that recorded under subsection (a) of 

this section an unexpired notice of a claim of an 

undischarged lien on the vessel. 

(iii) The mortgagee of each mortgage filed or recorded 

under section 31321 of this title that is an undischarged 

mortgage on the vessel. 

(2) A declaration under this subsection filed by a person that is 

not an individual must be signed by the president, member, partner, trustee, or other individual authorized to execute the declaration on behalf of the person. 


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(c)(1) On full and final discharge of the indebtedness that is the 

basis for a notice of claim of lien recorded under subsection (b) of 

this section, the person having the claim shall provide the Secretary with an acknowledged certificate of discharge of the indebtedness. The Secretary shall record the certificate. 

(2) The district courts of the United States shall have jurisdiction 

over a civil action in Admiralty to declare that a vessel is not subject to a lien claimed under subsection (b) of this section, or that 

the vessel is not subject to the notice of claim of lien, or both, regardless of the amount in controversy or the citizenship of the parties. Venue in such an action shall be in the district where the vessel is found or where the claimant resides or where the notice of 

claim of lien is recorded. The court may award costs and attorneys 

fees to the prevailing party, unless the court finds that the position 

of the other party was substantially justified or other circumstances make an award of costs and attorneys fees unjust. The 

Secretary shall record any such declaratory order. 

(d) A person claiming a lien on a vessel covered by a preferred 

mortgage under section 31322(d) of this title must record and discharge the lien as provided by the law of the State in which the 

vessel is titled. 

(e) A notice of claim of lien recorded under subsection (b) of this 

section shall expire 3 years after the date the lien was established, 

as such date is stated in the notice under subsection (a) of this section. 

(f) This section does not alter in any respect the law pertaining 

to the establishment of a maritime lien, the remedy provided by 

such a lien, or the defenses thereto, including any defense under 

the doctrine of laches. 

SUBTITLE VII. SECURITY AND DRUG ENFORCEMENT

CHAPTER 701. PORT SECURITY

* * * * * * * 

§ 70122. Regulations 

Unless otherwise provided, the Secretary may issue regulations 

necessary to implement this chapter. 

AMERICAN FISHERIES ACT 

SEC. 203. ENFORCEMENT OF STANDARD. 

[46 U.S.C. 12102 note] 

(a) EFFECTIVE DATE.—The amendments made by section 202 

shall take effect on October 1, 2001. 

(b) REGULATIONS.—Final regulations to implement this subtitle 

shall be published in the Federal Register by April 1, 2000. Letter 

rulings and other interim interpretations about the effect of this 

subtitle and amendments made by this subtitle on specific vessels 

may not be issued prior to the publication of such final regulations. 

The regulations to implement this subtitle shall prohibit impermissible transfers of ownership or control, specify any transactions 

which require prior approval of an implementing agency, identify 

transactions which do not require prior agency approval, and to the 

extent practicable, minimize disruptions to the commercial fishing 


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85 

industry, to the traditional financing arrangements of such industry, and to the opportunity to form fishery cooperatives. 

(c) VESSELS MEASURING 100 FEET AND GREATER.—(1) The Administrator of the Maritime Administration shall administer section 12102(c) of title 46, United States Code, as amended by this 

subtitle, with respect to vessels 100 feet or greater in registered 

length. The owner of each such vessel shall file a statement of citizenship setting forth all relevant facts regarding vessel ownership 

and control with the Administrator of the Maritime Administration 

on an annual basis to demonstrate compliance with such section. 

Regulations to implement this subsection shall conform to the extent practicable with the regulations establishing the form of citizenship affidavit set forth in part 355 of title 46, Code of Federal 

Regulations, as in effect on September 25, 1997, except that the 

form of the statement under this paragraph shall be written in a 

manner to allow the owner of each such vessel to satisfy any annual renewal requirements for a certificate of documentation for 

such vessel and to comply with this subsection and section 12102(c) 

of title 46, United States Code, as amended by this Act, and shall 

not be required to be notarized. 

(2) After October 1, 2001, transfers of ownership and control of 

vessels subject to section 12102(c) of title 46, United States Code, 

as amended by this Act, which are 100 feet or greater in registered 

length, shall be rigorously scrutinized for violations of such section, 

with particular attention given to leases, charters, mortgages, financing, and similar arrangements, to the control of persons not eligible to own a vessel with a fishery endorsement under section 

12102(c) of title 46, United States Code, as amended by this Act, 

over the management, sales, financing, or other operations of an 

entity, and to contracts involving the purchase over extended periods of time of all, or substantially all, of the living marine resources harvested by a fishing vessel. 

(d) VESSELS MEASURING LESS THAN 100 FEET.—The Secretary of 

Transportation shall establish such requirements as are reasonable 

and necessary to demonstrate compliance with section 12102(c) of 

title 46, United States Code, as amended by this Act, with respect 

to vessels measuring less than 100 feet in registered length, and 

shall seek to minimize the administrative burden on individuals 

who own and operate such vessels. 

(e) ENDORSEMENTS REVOKED.—The Secretary of Transportation 

shall revoke the fishery endorsement of any vessel subject to section 12102(c) of title 46, United States Code, as amended by this 

Act, whose owner does not comply with such section. 

(f) [Executed] 

(g) CERTAIN VESSELS.—The vessels EXCELLENCE (United 

States official number 967502), GOLDEN ALASKA (United States 

official number 651041) and , OCEAN PHOENIX (United States official number 296779), øNORTHERN TRAVELER (United States 

official number 635986), and NORTHERN VOYAGER (United 

States official number 637398) (or a replacement vessel for the 

NORTHERN VOYAGER that complies with paragraphs (2), (5), 

and (6) of section 208(g) of this Act)¿ shall be exempt from section 

12102(c), as amended by this Act, until such time after October 1, 

2001 as more than 50 percent of the interest owned and controlled 

in the vessel changes, provided that the vessel maintains eligibility 


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for a fishery endorsement under the federal law that was in effect 

the day before the date of the enactment of this Act, and unlessø, in the case of the NORTHERN TRAVELER or the NORTHERN 

VOYAGER (or such replacement), the vessel is used in any fishery 

under the authority of a regional fishery management council other 

than the New England Fishery Management Council or Mid-Atlantic Fishery Management Council established, respectively, under 

subparagraphs (A) and (B) of section 302(a)(1) of the MagnusonStevens Fishery Conservation and Management Act (16 U.S.C. 

1852(a)(1)(A) and (B)), or in the case of the EXCELLENCE, GOLDEN ALASKA, or OCEAN PHOENIX,¿ the vessel is used to harvest 

any fish. 

SEC. 208. ELIGIBLE VESSELS AND PROCESSORS. 

[112 Stat. 2681–624] 

(a) CATCHER VESSELS ONSHORE.—Effective January 1, 2000, only 

catcher vessels which are— 

(1) determined by the Secretary— 

(A) to have delivered at least 250 metric tons of pollock; 

or 

(B) to be less than 60 feet in length overall and to have 

delivered at least 40 metric tons of pollock, 

for processing by the inshore component in the directed pollock 

fishery in any one of the years 1996 or 1997, or between January 1, 1998 and September 1, 1998; 

(2) eligible to harvest pollock in the directed pollock fishery 

under the license limitation program recommended by the 

North Pacific Council and approved by the Secretary; and 

(3) not listed in subsection (b), 

shall be eligible to harvest the directed fishing allowance under 

section 206(b)(1) pursuant to a federal fishing permit. 

(b) CATCHER VESSELS TO CATCHER/PROCESSORS.—Effective January 1, 1999, only the following catcher vessels shall be eligible to 

harvest the directed fishing allowance under section 206(b)(2) pursuant to a federal fishing permit: 

(1) AMERICAN CHALLENGER (United States official number 615085); 

(2) FORUM STAR (United States official number 925863); 

(3) MUIR MILACH (United States official number 611524); 

(4) NEAHKAHNIE (United States official number 599534); 

(5) OCEAN HARVESTER (United States official number 

549892); 

(6) SEA STORM (United States official number 628959); 

(7) TRACY ANNE (United States official number 904859); 

and 

(8) any catcher vessel— 

(A) determined by the Secretary to have delivered at 

least 250 metric tons and at least 75 percent of the pollock 

it harvested in the directed pollock fishery in 1997 to 

catcher/processors for processing by the offshore component; and 

(B) eligible to harvest pollock in the directed pollock fishery under the license limitation program recommended by 

the North Pacific Council and approved by the Secretary. 

(c) CATCHER VESSELS TO MOTHERSHIPS.—Effective January 1, 

2000, only the following catcher vessels shall be eligible to harvest 


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87 

the directed fishing allowance under section 206(b)(3) pursuant to 

a federal fishing permit: 

(1) ALEUTIAN CHALLENGER (United States official number 603820); 

(2) ALYESKA (United States official number 560237); 

(3) AMBER DAWN (United States official number 529425); 

(4) AMERICAN BEAUTY (United States official number 

613847); 

(5) CALIFORNIA HORIZON (United States official number 

590758); 

(6) MAR–GUN (United States official number 525608); 

(7) MARGARET LYN (United States official number 

615563); 

(8) MARK I (United States official number 509552); 

(9) MISTY DAWN (United States official number 926647); 

(10) NORDIC FURY (United States official number 542651); 

(11) OCEAN LEADER (United States official number 

561518); 

(12) OCEANIC (United States official number 602279); 

(13) PACIFIC ALLIANCE (United States official number 

612084); 

(14) PACIFIC CHALLENGER (United States official number 

518937); 

(15) PACIFIC FURY (United States official number 561934); 

(16) PAPADO II (United States official number 536161); 

(17) TRAVELER (United States official number 929356); 

(18) VESTERAALEN (United States official number 611642); 

(19) WESTERN DAWN (United States official number 

524423); and 

(20) any vessel— 

(A) determined by the Secretary to have delivered at 

least 250 metric tons of pollock for processing by 

motherships in the offshore component of the directed pollock fishery in any one of the years 1996 or 1997, or between January 1, 1998 and September 1, 1998; 

(B) eligible to harvest pollock in the directed pollock fishery under the license limitation program recommended by 

the North Pacific Council and approved by the Secretary; 

and 

(C) not listed in subsection (b). 

(d) MOTHERSHIPS.—Effective January 1, 2000, only the following 

motherships shall be eligible to process the directed fishing allowance under section 206(b)(3) pursuant to a Federal fishing permit: 

(1) EXCELLENCE (United States official number 967502); 

(2) GOLDEN ALASKA (United States official number 

651041); and 

(3) OCEAN PHOENIX (United States official number 

296779). 

(e) CATCHER/PROCESSORS.—Effective January 1, 1999, only the 

following catcher/processors shall be eligible to harvest the directed 

fishing allowance under section 206(b)(2) pursuant to a Federal 

fishing permit: 

(1) AMERICAN DYNASTY (United States official number 

951307); 

(2) KATIE ANN (United States official number 518441); 


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(3) AMERICAN TRIUMPH (United States official number 

646737); 

(4) NORTHERN EAGLE (United States official number 

506694); 

(5) NORTHERN HAWK (United States official number 

643771); 

(6) NORTHERN JAEGER (United States official number 

521069); 

(7) OCEAN ROVER (United States official number 552100); 

(8) ALASKA OCEAN (United States official number 637856); 

(9) ENDURANCE (United States official number 592206); 

(10) AMERICAN ENTERPRISE (United States official number 594803); 

(11) ISLAND ENTERPRISE (United States official number 

610290); 

(12) KODIAK ENTERPRISE (United States official number 

579450); 

(13) SEATTLE ENTERPRISE (United States official number 

904767); 

(14) US ENTERPRISE (United States official number 

921112); 

(15) ARCTIC STORM (United States official number 

903511); 

(16) ARCTIC FJORD (United States official number 940866); 

(17) NORTHERN GLACIER (United States official number 

663457); 

(18) PACIFIC GLACIER (United States official number 

933627); 

(19) HIGHLAND LIGHT (United States official number 

577044); 

(20) STARBOUND (United States official number 944658); 

and 

(21) any catcher/processor not listed in this subsection and 

determined by the Secretary to have harvested more than 

2,000 metric tons of the pollock in the 1997 directed pollock 

fishery and determined to be eligible to harvest pollock in the 

directed pollock fishery under the license limitation program 

recommended by the North Pacific Council and approved by 

the Secretary, except that catcher/processors eligible under this 

paragraph shall be prohibited from harvesting in the aggregate 

a total of more than one-half (0.5) of a percent of the pollock 

apportioned for the directed pollock fishery under section 

206(b)(2). Notwithstanding section 213(a), failure to satisfy the 

requirements of section 4(a) of the Commercial Fishing Industry Vessel Anti-Reflagging Act of 1987 (Public Law 100–239; 46 

U.S.C. 12108 note) shall not make a catcher/processor listed 

under this subsection ineligible for a fishery endorsement. 

(f) SHORESIDE PROCESSORS.—(1) Effective January 1, 2000 and 

except as provided in paragraph (2), the catcher vessels eligible 

under subsection (a) may deliver pollock harvested from the directed fishing allowance under section 206(b)(1) only to— 

(A) shoreside processors (including vessels in a single geographic location in Alaska State waters) determined by the 

Secretary to have processed more than 2,000 metric tons 


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round-weight of pollock in the inshore component of the directed pollock fishery during each of 1996 and 1997; and 

(B) shoreside processors determined by the Secretary to have 

processed pollock in the inshore component of the directed pollock fishery in 1996 or 1997, but to have processed less than 

2,000 metric tons round-weight of such pollock in each year, 

except that effective January 1, 2000, each such shoreside 

processor may not process more than 2,000 metric tons roundweight from such directed fishing allowance in any year. 

(2) Upon recommendation by the North Pacific Council, the Secretary may approve measures to allow catcher vessels eligible 

under subsection (a) to deliver pollock harvested from the directed 

fishing allowance under section 206(b)(1) to shoreside processors 

not eligible under paragraph (1) if the total allowable catch for pollock in the Bering Sea and Aleutian Islands Management Area increases by more than 10 percent above the total allowable catch in 

such fishery in 1997, or in the event of the actual total loss or constructive total loss of a shoreside processor eligible under paragraph (1)(A). 

ø(g) REPLACEMENT VESSELS.—In the event of the actual total loss 

or constructive total loss of a vessel eligible under subsections (a), 

(b), (c), (d), or (e), the owner of such vessel may replace such vessel 

with a vessel which shall be eligible in the same manner under 

that subsection as the eligible vessel, provided that— 

ø(1) such loss was caused by an act of God, an act of war, 

a collision, an act or omission of a party other than the owner 

or agent of the vessel, or any other event not caused by the 

willful misconduct of the owner or agent; 

ø(2) the replacement vessel was built in the United States 

and if ever rebuilt, was rebuilt in the United States; 

ø(3) the fishery endorsement for the replacement vessel is 

issued within 36 months of the end of the last year in which 

the eligible vessel harvested or processed pollock in the directed pollock fishery; 

ø(4) if the eligible vessel is greater than 165 feet in registered length, of more than 750 gross registered tons, or has 

engines capable of producing more than 3,000 shaft horsepower, the replacement vessel is of the same or lesser registered length, gross registered tons, and shaft horsepower; 

ø(5) if the eligible vessel is less than 165 feet in registered 

length, of fewer than 750 gross registered tons, and has engines incapable of producing less than 3,000 shaft horsepower, 

the replacement vessel is less than each of such thresholds and 

does not exceed by more than 10 percent the registered length, 

gross registered tons or shaft horsepower of the eligible vessel; 

and 

ø(6) the replacement vessel otherwise qualifies under federal 

law for a fishery endorsement, including under section 12102(c) 

of title 46, United States Code, as amended by this Act.¿ 

(g) VESSEL REBUILDING AND REPLACEMENT.— (1) IN GENERAL.— 

(A) REBUILD OR REPLACE.—Notwithstanding any limitation to the contrary on replacing, rebuilding, or lengthening 

vessels or transferring permits or licenses to a replacement 

vessel contained in sections 679.2 and 679.4 of title 50, 


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Code of Federal Regulations, as in effect on the date of enactment of the Coast Guard Authorization Act for Fiscal 

Years 2010 and 2011 and except as provided in paragraph 

(4), the owner of a vessel eligible under subsection (a), (b), 

(c), (d), or (e) (other than paragraph (21)), in order to improve vessel safety and operational efficiencies (including 

fuel efficiency), may rebuild or replace that vessel (including fuel efficiency) with a vessel documented with a fishery 

endorsement under section 12113 of title 46, United States 

Code. 

(B) SAME REQUIREMENTS.—The rebuilt or replacement 

vessel shall be eligible in the same manner and subject to 

the same restrictions and limitations under such subsection 

as the vessel being rebuilt or replaced. 

(C) TRANSFER OF PERMITS AND LICENSES.—Each fishing 

permit and license held by the owner of a vessel or vessels 

to be rebuilt or replaced under subparagraph (A) shall be 

transferred to the rebuilt or replacement vessel. 

(2) RECOMMENDATIONS OF NORTH PACIFIC COUNCIL.—The 

North Pacific Council may recommend for approval by the Secretary such conservation and management measures, including 

size limits and measures to control fishing capacity, in accordance with the Magnuson-Stevens Act as it considers necessary 

to ensure that this subsection does not diminish the effectiveness of fishery management plans of the Bering Sea and Aleutian Islands Management Area or the Gulf of Alaska. 

(3) SPECIAL RULE FOR REPLACEMENT OF CERTAIN VESSELS.— (A) IN GENERAL.—Notwithstanding the requirements of 

subsections (b)(2), (c)(1), and (c)(2) of section 12113 of title 

46, United States Code, a vessel that is eligible under subsection (a), (b), (c), (d), or (e) (other than paragraph (21)) 

and that qualifies to be documented with a fishery endorsement pursuant to section 203(g) or 213(g) may be replaced 

with a replacement vessel under paragraph (1) if the vessel 

that is replaced is validly documented with a fishery endorsement pursuant to section 203(g) or 213(g) before the 

replacement vessel is documented with a fishery endorsement under section 12113 of title 46, United States Code. 

(B) APPLICABILITY.—A replacement vessel under subparagraph (A) and its owner and mortgagee are subject to the 

same limitations under section 203(g) or 213(g) that are applicable to the vessel that has been replaced and its owner 

and mortgagee. 

(4) SPECIAL RULES FOR CERTAIN CATCHER VESSELS.— 

(A) IN GENERAL.—A replacement for a covered vessel described in subparagraph (B) is prohibited from harvesting 

fish in any fishery (except for the Pacific whiting fishery) 

managed under the authority of any regional fishery management council (other than the North Pacific Council) established under section 302(a) of the Magnuson-Stevens 

Act. 

(B) COVERED VESSELS.—A covered vessel referred to in 

subparagraph (A) is— 

(i) a vessel eligible under subsection (a), (b), or (c) 

that is replaced under paragraph (1); or 


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(ii) a vessel eligible under subsection (a), (b), or (c) 

that is rebuilt to increase its registered length, gross 

tonnage, or shaft horsepower. 

(5) LIMITATION ON FISHERY ENDORSEMENTS.—Any vessel that 

is replaced under this subsection shall thereafter not be eligible 

for a fishery endorsement under section 12113 of title 46, 

United States Code, unless that vessel is also a replacement vessel described in paragraph (1). 

(6) GULF OF ALASKA LIMITATION.—Notwithstanding paragraph (1), the Secretary shall prohibit from participation in the 

groundfish fisheries of the Gulf of Alaska any vessel that is rebuilt or replaced under this subsection and that exceeds the 

maximum length overall specified on the license that authorizes 

fishing for groundfish pursuant to the license limitation program under part 679 of title 50, Code of Federal Regulations, 

as in effect on the date of enactment of the Coast Guard Authorization Act for Fiscal Years 2010 and 2011. 

(7) AUTHORITY OF PACIFIC COUNCIL.—Nothing in this section 

shall be construed to diminish or otherwise affect the authority 

of the Pacific Council to recommend to the Secretary conservation and management measures to protect fisheries under its jurisdiction (including the Pacific whiting fishery) and participants in such fisheries from adverse impacts caused by this Act. 

(h) ELIGIBILITY DURING IMPLEMENTATION.—In the event the Secretary is unable to make a final determination about the eligibility 

of a vessel under subsection (b)(8) or subsection (e)(21) before January 1, 1999, or a vessel or shoreside processor under subsection (a), 

subsection (c)(21), or subsection (f) before January 1, 2000, such 

vessel or shoreside processor, upon the filing of an application for 

eligibility, shall be eligible to participate in the directed pollock 

fishery pending final determination by the Secretary with respect 

to such vessel or shoreside processor. 

(i) ELIGIBILITY NOT A RIGHT.—Eligibility under this section shall 

not be construed— 

(1) to confer any right of compensation, monetary or otherwise, to the owner of any catcher vessel, catcher/processor, 

mothership, or shoreside processor if such eligibility is revoked 

or limited in any way, including through the revocation or limitation of a fishery endorsement or any federal permit or license; 

(2) to create any right, title, or interest in or to any fish in 

any fishery; or 

(3) to waive any provision of law otherwise applicable to such 

catcher vessel, catcher/processor, mothership, or shoreside 

processor. 

SEC. 210. FISHERY COOPERATIVE LIMITATIONS. 

[112 Stat. 2681–628] 

(a) PUBLIC NOTICE.—(1) Any contract implementing a fishery cooperative under section 1 of the Act of June 25, 1934 (15 U.S.C. 

521) in the directed pollock fishery and any material modifications 

to any such contract shall be filed not less than 30 days prior to 

the start of fishing under the contract with the North Pacific Council and with the Secretary, together with a copy of a letter from a 

party to the contract requesting a business review letter on the 

fishery cooperative from the Department of Justice and any reVerDate Nov 24 2008 03:15 Nov 03, 2009 Jkt 089010 PO 00000 Frm 00093 Fmt 6659 Sfmt 6601 E:\HR\OC\SR095.XXX SR095

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sponse to such request. Notwithstanding section 402 of the Magnuson-Stevens Act (16 U.S.C. 1881a) or any other provision of law, 

but taking into account the interest of parties to any such contract 

in protecting the confidentiality of proprietary information, the 

North Pacific Council and Secretary shall— 

(A) make available to the public such information about the 

contract, contract modifications, or fishery cooperative the 

North Pacific Council and Secretary deem appropriate, which 

at a minimum shall include a list of the parties to the contract, 

a list of the vessels involved, and the amount of pollock and 

other fish to be harvested by each party to such contract; and 

(B) make available to the public in such manner as the 

North Pacific Council and Secretary deem appropriate information about the harvest by vessels under a fishery cooperative 

of all species (including bycatch) in the directed pollock fishery 

on a vessel-by-vessel basis. 

(b) CATCHER VESSELS ONSHORE.— (1) CATCHER VESSEL COOPERATIVES.—Effective January 1, 

2000, upon the filing of a contract implementing a fishery cooperative under subsection (a) which— 

(A) is signed by the owners of 80 percent or more of the 

qualified catcher vessels that delivered pollock for processing by a shoreside processor in the directed pollock fishery in the year prior to the year in which the fishery cooperative will be in effect; and 

(B) specifies, except as provided in paragraph (6), that 

such catcher vessels will deliver pollock in the directed pollock fishery only to such shoreside processor during the 

year in which the fishery cooperative will be in effect and 

that such shoreside processor has agreed to process such 

pollock, 

the Secretary shall allow only such catcher vessels (and catcher 

vessels whose owners voluntarily participate pursuant to paragraph (2)) to harvest the aggregate percentage of the directed fishing allowance under section 206(b)(1) in the year in which the fishery cooperative will be in effect that is equivalent to the aggregate 

total amount of pollock harvested by such catcher vessels (and by 

such catcher vessels whose owners voluntarily participate pursuant 

to paragraph (2)) in the directed pollock fishery for processing by 

the inshore component during 1995, 1996, and 1997 relative to the 

aggregate total amount of pollock harvested in the directed pollock 

fishery for processing by the inshore component during such years 

and shall prevent such catcher vessels (and catcher vessels whose 

owners voluntarily participate pursuant to paragraph (2)) from harvesting in aggregate in excess of such percentage of such directed 

fishing allowance. 

(2) VOLUNTARY PARTICIPATION.—Any contract implementing 

a fishery cooperative under paragraph (1) must allow the owners of other qualified catcher vessels to enter into such contract 

after it is filed and before the calender year in which fishing 

will begin under the same terms and conditions as the owners 

of the qualified catcher vessels who entered into such contract 

upon filing. 

(3) QUALIFIED CATCHER VESSEL.—For the purposes of this 

subsection, a catcher vessel shall be considered a ‘‘qualified 


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catcher vessel’’ if, during the year prior to the year in which 

the fishery cooperative will be in effect, it delivered more pollock to the shoreside processor to which it will deliver pollock 

under the fishery cooperative in paragraph (1) than to any 

other shoreside processor. 

(4) CONSIDERATION OF CERTAIN VESSELS.—Any contract implementing a fishery cooperative under paragraph (1) which 

has been entered into by the owner of a qualified catcher vessel eligible under section 208(a) that harvested pollock for processing by catcher/processors or motherships in the directed pollock fishery during 1995, 1996, and 1997 shall, to the extent 

practicable, provide fair and equitable terms and conditions for 

the owner of such qualified catcher vessel. 

(5) OPEN ACCESS.—A catcher vessel eligible under section 

208(a) the catch history of which has not been attributed to a 

fishery cooperative under paragraph (1) may be used to deliver 

pollock harvested by such vessel from the directed fishing allowance under section 206(b)(1) (other than pollock reserved 

under paragraph (1) for a fishery cooperative) to any of the 

shoreside processors eligible under section 208(f). A catcher 

vessel eligible under section 208(a) the catch history of which 

has been attributed to a fishery cooperative under paragraph 

(1) during any calendar year may not harvest any pollock apportioned under section 206(b)(1) in such calendar year other 

than the pollock reserved under paragraph (1) for such fishery 

cooperative. 

(6) TRANSFER OF COOPERATIVE HARVEST.—A contract implementing a fishery cooperative under paragraph (1) may, notwithstanding the other provisions of this subsection, provide 

for up to 10 percent of the pollock harvested under such cooperative to be processed by a shoreside processor eligible under 

section 208(f) other than the shoreside processor to which pollock will be delivered under paragraph (1). 

(7) FISHERY COOPERATIVE EXIT PROVISIONS.— 

(A) FISHING ALLOWANCE DETERMINATION.—For purposes 

of determining the aggregate percentage of directed fishing 

allowances under paragraph (1), when a catcher vessel is 

removed from the directed pollock fishery, the fishery allowance for pollock for the vessel being removed— 

(i) shall be based on the catch history determination 

for the vessel made pursuant to section 679.62 of title 

50, Code of Federal Regulations, as in effect on the 

date of enactment of the Coast Guard Authorization 

Act of 2008; and 

(ii) shall be assigned, for all purposes under this 

title, in the manner specified by the owner of the vessel 

being removed to any other catcher vessel or among 

other catcher vessels participating in the fishery cooperative if such vessel or vessels remain in the fishery cooperative for at least one year after the date on which 

the vessel being removed leaves the directed pollock 

fishery. 

(B) ELIGIBILITY FOR FISHERY ENDORSEMENT.—Except as 

provided in subparagraph (C), a vessel that is removed 

pursuant to this paragraph shall be permanently ineligible 


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for a fishery endorsement, and any claim (including relating to catch history) associated with such vessel that could 

qualify any owner of such vessel for any permit to participate in any fishery within the exclusive economic zone of 

the United States shall be extinguished, unless such removed vessel is thereafter designated to replace a vessel to 

be removed pursuant to this paragraph. 

(C) LIMITATIONS ON STATUTORY CONSTRUCTION.—Nothing in this paragraph shall be construed— 

(i) to make the vessels AJ (United States official 

number 905625), DONA MARTITA (United States official number 651751), NORDIC EXPLORER (United 

States official number 678234), and PROVIDIAN 

(United States official number 1062183) ineligible for a 

fishery endorsement or any permit necessary to participate in any fishery under the authority of the New 

England Fishery Management Council or the Mid-Atlantic Fishery Management Council established, respectively, under subparagraphs (A) and (B) of section 

302(a)(1) of the Magnuson-Stevens Act; or 

(ii) to allow the vessels referred to in clause (i) to 

participate in any fishery under the authority of the 

Councils referred to in clause (i) in any manner that is 

not consistent with the fishery management plan for 

the fishery developed by the Councils under section 303 

of the Magnuson-Stevens Act. 

(c) CATCHER VESSELS TO CATCHER/PROCESSORS.—Effective January 1, 1999, not less than 8.5 percent of the directed fishing allowance under section 206(b)(2) shall be available for harvest only by 

the catcher vessels eligible under section 208(b). The owners of 

such catcher vessels may participate in a fishery cooperative with 

the owners of the catcher/processors eligible under paragraphs (1) 

through (20) of the section 208(e). The owners of such catcher vessels may participate in a fishery cooperative that will be in effect 

during 1999 only if the contract implementing such cooperative establishes penalties to prevent such vessels from exceeding in 1999 

the traditional levels harvested by such vessels in all other fisheries in the exclusive economic zone of the United States. 

(d) CATCHER VESSELS TO MOTHERSHIPS.— (1) PROCESSING.—Effective January 1, 2000, the authority in 

section 1 of the Act of June 25, 1934 (48 Stat. 1213 and 1214; 

15 U.S.C. 521 et seq.) shall extend to processing by motherships eligible under section 208(d) solely for the purposes of 

forming or participating in a fishery cooperative in the directed 

pollock fishery upon the filing of a contract to implement a 

fishery cooperative under subsection (a) which has been entered into by the owners of 80 percent or more of the catcher 

vessels eligible under section 208(c) for the duration of such 

contract, provided that such owners agree to the terms of the 

fishery cooperative involving processing by the motherships. 

(2) VOLUNTARY PARTICIPATION.—Any contract implementing 

a fishery cooperative described in paragraph (1) must allow the 

owners of any other catcher vessels eligible under section 

208(c) to enter such contract after it is filed and before the calendar year in which fishing will begin under the same terms 


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and conditions as the owners of the catcher vessels who entered into such contract upon filing. 

(e) EXCESSIVE SHARES.— (1) HARVESTING.—No particular individual, corporation, or 

other entity may harvest, through a fishery cooperative or otherwise, a total of more than 17.5 percent of the pollock available to be harvested in the directed pollock fishery. 

(2) PROCESSING.—Under the authority of section 301(a)(4) of 

the Magnuson-Stevens Act (16 U.S.C. 1851(a)(4)), the North 

Pacific Council is directed to recommend for approval by the 

Secretary conservation and management measures to prevent 

any particular individual or entity from processing an excessive share of the pollock available to be harvested in the directed pollock fishery. In the event the North Pacific Council 

recommends and the Secretary approves an excessive processing share that is lower than 17.5 percent, any individual or 

entity that previously processed a percentage greater than 

such share shall be allowed to continue to process such percentage, except that their percentage may not exceed 17.5 percent (excluding pollock processed by catcher/processors that 

was harvested in the directed pollock fishery by catcher vessels 

eligible under 208(b)) and shall be reduced if their percentage 

decreases, until their percentage is below such share. In recommending the excessive processing share, the North Pacific 

Council shall consider the need of catcher vessels in the directed pollock fishery to have competitive buyers for the pollock harvested by such vessels. 

(3) REVIEW BY MARITIME ADMINISTRATION.—At the request of 

the North Pacific Council or the Secretary, any individual or 

entity believed by such Council or the Secretary to have exceeded the percentage in either paragraph (1) or (2) shall submit such information to the Administrator of the Maritime Administration as the Administrator deems appropriate to allow 

the Administrator to determine whether such individual or entity has exceeded either such percentage. The Administrator 

shall make a finding as soon as practicable upon such request 

and shall submit such finding to the North Pacific Council and 

the Secretary. For the purposes of this subsection, any entity 

in which 10 percent or more of the interest is owned or controlled by another individual or entity shall be considered to be 

the same entity as the other individual or entity. 

(f) LANDING TAX JURISDICTION.—Any contract filed under subsection (a) shall include a contract clause under which the parties 

to the contract agree to make payments to the State of Alaska for 

any pollock harvested in the directed pollock fishery which is not 

landed in the State of Alaska, in amounts which would otherwise 

accrue had the pollock been landed in the State of Alaska subject 

to any landing taxes established under Alaska law. Failure to include such a contract clause or for such amounts to be paid shall 

result in a revocation of the authority to form fishery cooperatives 

under section 1 of the Act of June 25, 1934 (15 U.S.C. 521 et seq.). 

(g) PENALTIES.—The violation of any of the requirements of this 

section or section 211 shall be considered the commission of an act 

prohibited by section 307 of the Magnuson-Stevens Act (16 U.S.C. 

1857). In addition to the civil penalties and permit sanctions appliVerDate Nov 24 2008 03:15 Nov 03, 2009 Jkt 089010 PO 00000 Frm 00097 Fmt 6659 Sfmt 6601 E:\HR\OC\SR095.XXX SR095

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cable to prohibited acts under section 308 of such Act (16 U.S.C. 

1858), any person who is found by the Secretary, after notice and 

an opportunity for a hearing in accordance with section 554 of title 

5, United States Code, to have violated a requirement of this section shall be subject to the forfeiture to the Secretary of Commerce 

of any fish harvested or processed during the commission of such 

act. 

Æ 


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