U.S. GOVERNMENT PUBLISHING OFFICE

WASHINGTON : 

1 

79–010 

" ! SENATE 115TH CONGRESS

2d Session 

REPORT

2018

115–292 

Calendar No. 505 

MARITIME AUTHORIZATION AND 

ENHANCEMENT ACT FOR FISCAL YEAR 2019 

R E P O R T 

OF THE

COMMITTEE ON COMMERCE, SCIENCE, AND 

TRANSPORTATION 

ON

S. 2717 

JULY 9, 2018.—Ordered to be printed 


congress.#13
(II) 

SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION 

ONE HUNDRED FIFTEENTH CONGRESS

SECOND SESSION

JOHN THUNE, South Dakota, Chairman 

ROGER F. WICKER, Mississippi BILL NELSON, Florida 

ROY BLUNT, Missouri MARIA CANTWELL, Washington 

TED CRUZ, Texas AMY KLOBUCHAR, Minnesota 

DEB FISCHER, Nebraska RICHARD BLUMENTHAL, Connecticut 

JERRY MORAN, Kansas BRIAN SCHATZ, Hawaii 

DAN SULLIVAN, Alaska EDWARD J. MARKEY, Massachusetts 

DEAN HELLER, Nevada TOM UDALL, New Mexico 

JAMES M. INHOFE, Oklahoma GARY C. PETERS, Michigan 

MIKE LEE, Utah TAMMY BALDWIN, Wisconsin 

RON JOHNSON, Wisconsin TAMMY DUCKWORTH, Illinois 

SHELLEY MOORE CAPITO, West Virginia MARGARET WOOD HASSAN, New Hampshire 

CORY GARDNER, Colorado CATHERINE CORTEZ MASTO, Nevada 

TODD C. YOUNG, Indiana JON TESTER, Montana 

NICK ROSSI, Staff Director 

ADRIAN ARNAKIS, Deputy Staff Director 

JASON VAN BEEK, General Counsel 

KIM LIPSKY, Democratic Staff Director 

CHRISTOPHER DAY, Democratic Deputy Staff Director 

Calendar No. 505 

115TH CONGRESS REPORT " ! SENATE 2d Session 115–292 

MARITIME AUTHORIZATION AND ENHANCEMENT ACT 

FOR FISCAL YEAR 2019 

JULY 9, 2018.—Ordered to be printed 

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

Transportation, submitted the following 

R E P O R T 

[To accompany S. 2717] 

[Including cost estimate of the Congressional Budget Office] 

The Committee on Commerce, Science, and Transportation, to 

which was referred the bill (S. 2717) to reauthorize provisions relating to the Maritime Administration, 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

The purpose of this legislation is to do the following: support national defense and the United States Merchant Marine by authorizing the Maritime Administration (MARAD) for fiscal year (FY) 

2019, including the National Security Multi-Mission Vessel Program; implement Department of Transportation (DOT) Office of Inspector General (OIG) recommendations to improve protections and 

incident reporting related to sexual assault and harassment; improve merchant mariner training for cadets by providing additional 

opportunities for on-the-job experience via the Sea Year program 

and by supporting State Maritime Academy training vessels; and 

create new opportunities for domestic ship recycling by streamlining the import process. 

BACKGROUND AND NEEDS

MARAD was established in 1950 to foster, promote, and develop 

the merchant marine industry of the United States. MARAD, an 

operating administration within the DOT, is tasked with the folVerDate Sep 11 2014 05:37 Jul 10, 2018 Jkt 079010 PO 00000 Frm 00003 Fmt 6659 Sfmt 6602 E:\HR\OC\SR292.XXX SR292
2 

1The Middle States Commission on Higher Education (MSCHE), ‘‘Statement of Accreditation 

Status.’’ (http://www.msche.org/Documents/SAS/494/Statement%20of%20Accreditation%20 

Status.htm). 2P.L. 110–417. 

3 U.S. Department of Transportation, ‘‘Better Program Management and Oversight are Required for USMMA’s Efforts to Address Sexual Assault and Harassment,’’ 2014. 

(https://www.oig.dot.gov/sites/default/files/USMMA%20Sexual%20Assualt%20and%20Sexual 

%20Harassment%20Audit%20Report%5E10-23-14.pdf). 4P.L. 115–91. 

lowing: administering the Maritime Security Program (MSP) to 

support 60 U.S.-flag vessels in the movement of cargo on international waters, thereby supporting military sealift capacity in 

times of war or national emergency; managing the Ready Reserve 

Force, funded by the Department of Defense; managing disposal of 

the National Defense Reserve Fleet (NDRF) when ships are no 

longer deemed useful for defense or missions; promoting U.S.-flag 

vessels by monitoring cargo preference requirements; overseeing 

the U.S. Merchant Marine Academy (USMMA) to educate future 

U.S. mariners; administering loan and grant programs, including 

the Maritime Loan Guarantee Program (Title XI Program) and Assistance to Small Shipyards Program; promoting port infrastructure development and congestion mitigation in the transportation 

system through education and coordination; informing the Department of Homeland Security on the availability of coastwise-qualified vessels supporting State maritime academies; and other functions. 

THE UNITED STATES MERCHANT MARINE ACADEMY (USMMA) AND

STATE MARITIME ACADEMIES

Overseen by MARAD, the USMMA is a Federal service academy 

that has been training merchant mariners for more than 70 years, 

offering baccalaureate degrees specializing in engineering and maritime transportation. In exchange for a tuition waiver and room 

and board, a graduate incurs certain service obligations. On June 

23, 2016, the Middle States Commission on Higher Education 

(MSCHE) placed the USMMA’s accreditation under warning status 

due to the USMMA’s failure to meet several of the MSCHE’s accreditation standards.1 One standard was related to sexual misconduct response provisions, and the remaining issues were related 

to independence in governance, budgeting, and administrative functions. 

SEXUAL ASSAULT AND SEXUAL HARASSMENT PREVENTION

The Committee included provisions in the National Defense Authorization Act (NDAA) for FY 2009 that require the Secretary of 

Transportation (Secretary) and the USMMA to implement policies 

that would address sexual assault and harassment at the 

USMMA.2 An October 2014 DOT Inspector General (IG) report 

noted deficiencies in the USMMA’s effort.3 All nine of the report’s 

recommendations have been resolved and closed, but student surveys, focus group results, and accreditation board findings have 

caused increased focus on these sexual assault and harassment 

issues at the USMMA. 

In response, the Committee included provisions in the NDAA for 

FY 2018 4 requiring MARAD to ensure each student participating 

in the Sea Year program is provided or has access to a functional 

3 

5 U.S. Department of Transportation, ‘‘Gaps in USMMA’s Sexual Assault Prevention and Response Program Limit Its Effectiveness,’’ 2018. (https://www.oig.dot.gov/sites/default/files/ 

USMMA%20SAPR%20Final%20Report.pdf). 6 Addendum to the FY 2019 Budget Request, February 12, 2018. (https://www.whitehouse.gov/ 

wp-content/uploads/2018/02/Addendum-to-the-FY-2019-Budget.pdf). 7P.L. 115–141. 

satellite communication device. The law prohibits the denial of the 

use of such device whenever the student determines that use is 

necessary to prevent or report sexual harassment or assault. The 

NDAA for FY 2018 also requires actions at the USMMA to address 

sexual harassment, dating violence, domestic violence, sexual assault, and stalking. These actions include minimum training requirements for staff, minimum procedures for handling reports, 

minimum requirements to combat retaliation, minimum training 

requirements for cadets, requirements for sexual assault response 

coordinators, access to an emergency helpline, requirements for 

protection of USMMA cadets onboard commercial vessels, and 

training requirements for sexual assault investigators. 

In March 2018, the DOT IG reported on the effectiveness of the 

USMMA’s Sexual Assault Prevention and Response program.5

They found that MARAD and the USMMA have made progress implementing recommendations from past studies and action plans, 

but have missed target dates and lack a risk-based approach to 

prioritization. The USMMA reported completion of 62 of 138 recommendations derived from past studies and action plans, including those necessary to maintain its accreditation. The report found 

that the USMMA’s lack of full compliance with its procedures, particularly for sexual harassment, limits its ability to respond to incidents and report to Congress. For example, the USMMA lacks documentation related to reports of sexual harassment, which impacts 

its ability to provide survivor services and accurately assess its 

progress in addressing sexual harassment. The DOT IG made recommendations to improve the program’s effectiveness. 

The National Security Multi-Mission Vessel (NSMV) Program, 

also known as the School Ship Replacement Program, is charged 

with replacing training ships for the USMMA and the six State 

Maritime Academies (SMAs). In accordance with section 51504 of 

title 46, United States Code, six National Defense Reserve Fleet 

training ships are on loan from MARAD to each of the six SMAs 

under a custodial agreement. While the MARAD FY 2018 and FY 

2019 budget requests did not include funds for replacement of the 

training ships, the White House issued an Addendum to the FY 

2019 Budget requesting $300 million for the retrofitting of two 

used cargo vessels in order to replace two of the existing, aging 

SMA vessels.6 The Consolidated Appropriations Act, 2018 included 

$300 million for the NSMV Program to construct and design a new 

SMA training vessel.7

MANAGEMENT OF THE MARITIME ADMINISTRATION

In 2017, MARAD contracted with the National Academy of Public Administration (NAPA) to undertake an independent review of 

the agency’s core functions, its role within the DOT, and its benefit 

to the Nation. The report on the independent review found that 

MARAD has broad statutory missions directed toward maritime inVerDate Sep 11 2014 05:37 Jul 10, 2018 Jkt 079010 PO 00000 Frm 00005 Fmt 6659 Sfmt 6602 E:\HR\OC\SR292.XXX SR292
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8 National Academy of Public Administration. 2017. Maritime Administration: Defining Its 

Mission, Aligning Its Programs, and Meeting Its Objectives. (https://www.napawash.org/uploads/ 

Academy_Studies/11.27.17_MARAD_FINAL_Report.pdf). 9Maritime Administration. Statement from Maritime Administration 

on the National Academy of Public Administration Report. 

(https://www.marad.dot.gov/newsroom/news_release/2017/statement-from-maritimeadministration-on-the-national-academy-of-public-administration-pendingdraftworkflow/). 10P.L. 113–328. 11Maritime Administration. Maritime Workforce Working Group Report. 2017. (https:// 

www.marad.dot.gov/wp-content/uploads/pdf/MWWG-Report-to-Congress-FINALR3.pdf). 

dustry support, mariner training, and national security.8 The report also found that programs are generally directed toward ensuring that the country has a sufficient number of U.S.-flag vessels 

and U.S.-citizen qualified mariners. The report offered 27 recommendations, all of which MARAD committed to giving full consideration.9

The Maritime Workforce Working Group (MWWG) is required by 

section 3517 of the NDAA for FY 2017.10 The purpose of the group 

is to produce a report assessing the number of citizen mariners 

available to crew the surge sealift fleet in times of national emergency, and to determine whether the Coast Guard’s Merchant Mariner Licensing and Documentation System is valuable to MARAD 

for assessing the number of qualified mariners. The report, released in September 2017, found there were sufficient mariners to 

crew the Ready Reserve Force for a short-term surge. For a longterm surge, the report found approximately 20 percent more mariners would be needed to sustain the surge fleet and concurrently 

operate the commercial fleet.11

For years in which required by the NDAA for FY 2017, MARAD 

may submit to the Committee a combined document including both 

the Biennial Assessment of the Ship Disposal Program and the annual Vessel Operating Revolving Fund (VORF) Transactions Report. The Committee also encourages MARAD to consider consolidating additional public ship disposal reports not mandated by 

Congress, such as the Office of Ship Disposal Programs Annual Report, into this combined yearly report and to make this document 

publicly available on MARAD’s website. 

SUMMARY OF PROVISIONS

If enacted, S. 2717, the Maritime Authorization and Enhancement Act for Fiscal Year 2019, would do the following: 

• Support national defense and the United States Merchant Marine by reauthorizing MARAD, including the National Security 

Multi-Mission Vessel Program. 

• Address DOT OIG recommendations to improve protections 

and incident reporting related to sexual assault and harassment. 

• Improve merchant mariner training for cadets by providing additional opportunities for on-the-job experience via the Sea Year 

program and by supporting State Maritime Academy training vessels. 

• Create new opportunities for domestic ship recycling by 

streamlining the import process. 

LEGISLATIVE HISTORY

MARAD is traditionally reauthorized annually as part of the defense authorization bill. MARAD was last authorized on December 

5 

12, 2017, as part of the NDAA for FY 2018; the agency was reauthorized for FY 2018. 

On April 24, 2018, the Committee’s Subcommittee on Surface 

Transportation and Merchant Marine Infrastructure, Safety, and 

Security held a maritime transportation oversight hearing entitled, 

‘‘Maritime Transportation: Opportunities and Challenges,’’ that, 

among other topics, examined opportunities and challenges for 

MARAD and the USMMA. Mark H. Buzby, Maritime Administrator and Rear Admiral James Helis, Superintendent of the 

USMMA, testified on the challenges facing the U.S. maritime sector and opportunities to ensure its long-term viability and the implementation of the requirements of the NDAA for FY 2017 for the 

improvement of sexual assault and harassment prevention and response at the USMMA. 

On April 25, 2018, the Committee met in open Executive Session 

and, by a voice vote, ordered S. 2717 to be reported favorably with 

an amendment (in the nature of a substitute). Senator Fischer offered an amendment (in nature of a substitute) that was adopted. 

An additional amendment from Senator Baldwin was also adopted; 

the amendment would add certain Buy America provisions to the 

assistance for shipyards grant program. 

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: 

S. 2717—Maritime Authorization and Enhancement Act for Fiscal 

Year 2019 

Summary: S. 2717 would reauthorize programs administered by 

the Maritime Administration (MARAD), which oversees the nation’s merchant marine—the civilian mariners and fleet of U.S. vessels engaged primarily in waterborne commerce. CBO estimates 

that implementing S. 2717 would cost $500 million over the 2019– 

2023 period, assuming appropriation of the authorized amounts. 

S. 2717 also would permanently extend MARAD’s authority to 

issue war risk insurance to certain vessels. Enacting that provision 

would affect direct spending; therefore pay-as-you-go procedures 

would apply, but CBO estimates that any such effects would be 

negligible in any year. Enacting the bill would not affect revenues. 

CBO estimates that enacting S. 2717 would not significantly increase net direct spending or on-budget deficits in any of the four 

consecutive 10-year periods beginning in 2029. 

S. 2717 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act (UMRA). 

Estimated cost to the Federal Government: The estimated budgetary effect of S. 2717 is shown in the following table. The costs 

of the legislation fall primarily within budget function 400 (transportation). 

6 

By fiscal year, in millions of dollars— 

2018 2019 2020 2021 2022 2023 2019– 

2023 

INCREASES IN SPENDING SUBJECT TO APPROPRIATION 

Authorization Level .................................................................... 0 500 0 0 0 0 500 

Estimated Outlays ..................................................................... 0 219 126 114 41 0 500 

Basis of estimate: For this estimate, CBO assumes that S. 2717 

will be enacted near the start of fiscal year 2019. S. 2717 would authorize appropriations totaling $500 million in 

2019 for programs administered by MARAD, including: • $300 million to plan, design, and construct training vessels 

through the National Security Multi-Mission Vessel Program; • $69 million for the U.S. Merchant Marine Academy; • $60 million for operations and program support provided 

by MARAD’s headquarters; • $33 million to guarantee loans used to construct or modernize U.S. vessels or shipyards; • $32 million to provide financial and other support to state 

maritime academies; and • $6 million to dispose of vessels in the National Defense Reserve Fleet. 

By comparison, funding provided to MARAD for those activities in 2018 totals $554 million. Assuming appropriation of the 

amounts authorized under S. 2717, CBO estimates that implementing the bill would cost $219 million in 2019 and $500 million 

over the 2019–2023 period. That estimate is based on historical 

spending patterns for MARAD. 

This estimate does not include spending for the Maritime Security Program, through which MARAD maintains a core fleet of privately owned U.S. flag ships operating in international commerce 

that are also available to provide additional capacity to support the 

Department of Defense during war and national emergencies. S. 

2717 would authorize $300 million for that program in 2019—the 

same amount that is already authorized for that year under current law. As a result, this estimate includes no additional spending 

related to that program, which would fall within budget function 

050 (defense). 

Pay-As-You-Go considerations: S. 2717 would permanently extend MARAD’s authority to issue war risk insurance to certain vessels. Under current law, MARAD is authorized, through 2020, to 

provide such insurance to owners of private vessels (in exchange 

for premiums) and to indemnify (at no cost) vessels operating on 

behalf of the U.S. government. Because any spending for claims related to such insurance would not be contingent on further legislation, enacting the proposed extension would increase direct spending. However, using information from MARAD, CBO estimates 

that, on average, expected costs for claims stemming from both the 

premium and nonpremium lines of insurance issued to vessels (including offsetting receipts from premiums charged to owners of private vessels) would be negligible in any year. 

Increase in long-term direct spending and deficits: CBO estimates that enacting S. 2717 would not increase net direct spending 

or on-budget deficits in any of the four consecutive 10-year periods 

beginning in 2029. 

7 

Mandates: S. 2717 contains no intergovernmental or private-sector mandates as defined in UMRA. 

Previous CBO estimate: On May 18, 2018, CBO transmitted a 

cost estimate for H.R. 5515, the National Defense Authorization 

Act for Fiscal Year 2019, as reported by the House Committee on 

Armed Services on May 15, 2018. H.R. 5515 would authorize appropriations for MARAD that total $565 million—$65 million more 

than the amounts authorized under S. 2717; as a result, our estimate of MARAD-related spending under H.R. 5515 is higher. Both 

bills would permanently extend the agency’s authority to issue war 

risk insurance for certain vessels; our estimates of the budgetary 

effects stemming from those provisions are the same. 

Estimate prepared by: Federal Costs: Megan Carroll; Mandates: 

Jon Sperl. 

Estimate reviewed by: Kim P. Cawley, Chief, Natural and Physical Resources Cost Estimates Unit; H. Samuel Papenfuss, Deputy 

Assistant Director for Budget Analysis. 

REGULATORY IMPACT STATEMENT

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

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

NUMBER OF PERSONS COVERED

This measure, as reported, would not create any new programs 

or impose any new significant regulatory requirements, and, therefore, would not subject any individuals or businesses to new significant regulations. 

This measure would set new Buy America requirements for the 

Assistance to Small Shipyards Program, though MARAD has included Buy America requirements in grant requirements prior to 

this statutory change. The program funds grants for an estimated 

10 to 15 shipyards per year. 

This measure would affect students at the USMMA by making 

improvements to the policy on sexual harassment and sexual assault. This measure would authorize funding to begin recapitalization of the fleet of school ships that are used by the State Maritime 

Academies in Texas, Maine, Massachusetts, New York, and California. Students at these academies would be affected. 

This measure would allow streamlined import of marine vessels 

containing regulated levels of polychlorinated biphenyls for recycling in U.S. shipyards, and would affect both vessel importers and 

ship recyclers by allowing them increased opportunities for vessel 

recycling. 

ECONOMIC IMPACT

Enactment of this legislation is not expected to have any significant adverse impacts on the Nation’s economy. It should have a 

positive impact by increasing the number of ships recycled in 

United States shipyards. 

PRIVACY

S. 2717 will not have any adverse impact on the privacy of individuals. 

8 

PAPERWORK

S. 2717 would not impose substantial paperwork burden on individuals or businesses. Where the bill does require additional paperwork for vessel importers, this would be offset by the benefits of 

increased opportunity for the U.S. ship recycling industry. In addition, the bill would expand requirements on MARAD to ensure it 

maintains data to conduct annual assessments of the effectiveness 

of its policies, procedures, and training on sexual assault and harassment and to ensure data regarding sexual harassment are included in the USMMA’s annual report on the subject. It would also 

require MARAD to submit a report to Congress describing its program in implementing and completing each of the recommendations made in the DOT OIG’s report identifying gaps in the 

USMMA’s Sexual Assault Prevention and Response Program. Finally, it would require MARAD to submit to Congress a report on 

the impediments to the application of the Uniform Code of Military 

Justice at the USMMA. 

CONGRESSIONALLY DIRECTED SPENDING

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

Rules of the Senate, the Committee provides that no provisions 

contained in the bill, as reported, meet the definition of congressionally directed spending items under the rule. 

SECTION-BY-SECTION ANALYSIS

Sec. 1. Short title; table of contents. 

This section would provide that the bill may be cited as the 

‘‘Maritime Authorization and Enhancement Act for Fiscal Year 

2019’’, and includes a table of contents. 

Section 2. Authorization of the Maritime Administration. 

This section would authorize appropriations for FY 2019 to DOT 

for programs associated with maintaining the United States merchant marine, including the USMMA, the SMAs, the National Security Multi-Mission Vessel Program, MARAD operations and programs, the ship disposal program, and the maritime guaranteed 

loan program. 

Section 3. Concurrent jurisdiction. 

This section would allow the Secretary of Transportation to relinquish, at the Secretary’s discretion, certain jurisdiction over the 

USMMA to local law enforcement, as necessary, to enable concurrent jurisdiction with the State of New York. Such authority would 

allow local law enforcement to prosecute crimes, such as sexual assault, in lieu of Federal law enforcement. 

Section 4. United States Merchant Marine Academy policy on sexual 

harassment, dating violence, domestic violence, sexual assault, 

and stalking. 

This section would require the USMMA policy on sexual harassment and sexual assault to include procedures for maintaining the 

data necessary to conduct annual assessments of the effectiveness 

of its policies, procedures, and training. It would also expand retalVerDate Sep 11 2014 05:37 Jul 10, 2018 Jkt 079010 PO 00000 Frm 00010 Fmt 6659 Sfmt 6602 E:\HR\OC\SR292.XXX SR292
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iation protections to include USMMA personnel. It would clarify 

that data regarding sexual harassment are required to be included 

in the USMMA’s annual report on sexual assault and harassment. 

This section is based on recommendations from the DOT OIG’s Report identifying gaps in the USMMA’s Sexual Assault Prevention 

and Response Program. 

Section 5. Report on implementation of recommendations for the 

United States Merchant Marine Academy Sexual Assault Prevention and Response Program. 

This section would require the Maritime Administrator to submit 

to Congress a report describing the progress of MARAD in implementing and completing each of the recommendations made in the 

DOT OIG’s report identifying gaps in the USMMA’s Sexual Assault 

Prevention and Response Program. 

Section 6. Report on the application of the UCMJ to the United 

States Merchant Marine Academy. 

This section would require the Maritime Administrator to submit 

to Congress a report on the impediments to the application of the 

Uniform Code of Military Justice at the USMMA. 

Section 7. Electronic records on mariner availability to meet national security needs. 

This section would require the Secretary of Homeland Security 

to coordinate with the Secretary of Transportation to ensure that, 

to the extent feasible, electronic records provide information on 

mariner availability to meet national security needs for 

credentialed mariners crewing strategic sealift vessels. 

Section 8. Small shipyard grants. 

This section would require the Maritime Administrator to post a 

notice of funding opportunity regarding small shipyard grants not 

more than 15 days after the date of enactment of the relevant appropriations Act for the fiscal year. 

Section 9. Domestic ship recycling facilities. 

This section would establish a streamlined process for obtaining 

consent from the Environmental Protection Agency to import vessels containing regulated levels of polychlorinated biphenyls into 

the United States for recycling. 

Section 10. Sea Year on contracted vessels. 

This section would allow the Secretary of Transportation to meet 

USMMA cadet Sea Year training needs by requiring two USMMA 

cadets, if available, to be placed on each MSP and Military Sealift 

Command vessel. This section would allow the Secretary or the 

Commander of the Military Sealift Command to waive the requirements if such placement would create an undue burden on the vessel. These requirements would not affect the discretion of the Secretary to determine whether to place a USMMA cadet on a vessel; 

the Secretary would retain discretion to determine whether a cadet 

is available to be placed on an MSP or MSC vessel. These requirements also would not affect the authority of the Coast Guard regarding a vessel security plan approved under section 70103 of title 

10 

46, United States Code, or the discretion of the master of the vessel 

to ensure the safety of all crew members. 

Section 11. GAO report on national maritime strategy. 

This section would require the Comptroller General to submit to 

Congress a report on national maritime strategy, including the following: key challenges, if any, to ensuring that the U.S. marine 

transportation system and merchant marine are sufficient to support U.S. economic and defense needs; the extent to which a national maritime strategy incorporates desirable characteristics of 

successful national strategies; and the extent to which Federal efforts to establish national maritime strategy are duplicative or 

fragmented. 

Section 12. Department of Transportation Inspector General report 

on Title XI Program. 

This section would require the DOT OIG to submit to Congress 

a report on the financial controls and protections included in the 

policies and procedures of the DOT for approving loan applications 

for the Title XI Program. 

Section 13. Multiyear contracts. 

This section would clarify that nothing in the existing contracting authority for the National Security Multi-Mission Vessel 

Program, as codified in the NDAA for FY 2017, may be construed 

to prohibit MARAD from entering into a multiyear contract for the 

procurement of up to five new vessels within the National Security 

Multi-Mission Vessel Program. 

Section 14. Use of State academy training vessels. 

This section would require the Maritime Administrator, upon 

consultation with the SMAs, to implement a program of vessel capacity sharing among the SMAs as necessary to ensure that training needs of each academy are met. The Committee included ship 

sharing language for the SMAs to ensure that none of the programs go without training billets for their cadets. However, this is 

not a sustainable long-term solution and the Committee urges 

MARAD to consider alternative ways to immediately address the 

critical lack of a suitable training vessel in the Gulf of Mexico, such 

as procurement of a domestic or international vessel to convert for 

training billets. 

Section 15. Permanent authority of the Secretary of Transportation 

to issue vessel war risk insurance. 

This section would amend chapter 539 of title 46, United States 

Code, to make permanent the authority of the Secretary to provide 

vessel war risk insurance. This authority has been in place since 

1950. 

Section 16. Buy America. 

This section would make changes to the Assistance to Small 

Shipyards Program. This section would provide for the reallocation 

of unused small shipyard grants to fund other qualifying grants. 

This section would establish certain Buy America requirements. 

11 

MARAD has already included a Buy America provision in recent 

grant agreements for this program. 

Section 17. Navigation system study and report. 

This section would require the Maritime Administrator to conduct a comprehensive study of the Great Lakes-Saint Lawrence 

Seaway navigation system to examine the current state of the system and make recommendations for improvements. 

Section 18. Miscellaneous. 

This section would clarify the definition of commercial vessel for 

the purposes of USMMA training requirements and streamline sexual assault training recordkeeping. This section would limit certain 

training recordkeeping to those persons who are required to have 

such training. The section also would allow the Secretary of Commerce to waive bond requirements for certain vessel repairs, similar to authority already granted the Secretary of Transportation. 

These requirements currently require an annual congressional 

waiver, which has been granted for several years. This section 

would remove certain funding limitations for the SMAs, consistent 

with overall appropriation levels, as long as the academies meet 

certain admission requirements. 

CHANGES IN EXISTING LAW

In compliance with paragraph 12 of rule XXVI of the Standing 

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

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

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

TITLE 40. PUBLIC BUILDINGS, PROPERTY, AND WORKS 

SUBTITLE II. PUBLIC BUILDINGS AND WORKS

PART A. GENERAL

CHAPTER 31. GENERAL

SUBCHAPTER III. BONDS

§ 3134. Waivers for certain contracts 

(a) MILITARY.—The Secretary of the Army, the Secretary of the 

Navy, the Secretary of the Air Force, or the Secretary of Transportation may waive this subchapter with respect to cost-plus-a-fixed 

fee and other cost-type contracts for the construction, alteration, or 

repair of any public building or public work of the Federal Government and with respect to contracts for manufacturing, producing, 

furnishing, constructing, altering, repairing, processing, or assembling vessels, aircraft, munitions, materiel, or supplies for the 

Army, Navy, Air Force, or Coast Guard, respectively, regardless of 

the terms of the contracts as to payment or title. 

(b) TRANSPORTATION.—The Secretary of Transportation may 

waive this subchapter with respect to contracts for the construction, alteration, or repair of vessels when the contract is made 

under sections 1535 and 1536 of title 31 or subtitle V of title 46, 

regardless of the terms of the contracts as to payment or title. 

12 

(c) NATIONAL OCEANIC AND ATMOSPHERIC ADMINISTRATION.—The 

Secretary of Commerce may waive this subchapter with respect to 

contracts for the construction, alteration, or repair of vessels, regardless of the terms of the contracts as to payment or title, when 

the contract is made under the Act entitled ‘‘An Act to define the 

functions and duties of the Coast and Geodetic Survey, and for 

other purposes’’, approved August 6, 1947 (33 U.S.C. 883a et seq.). 

TITLE 46. SHIPPING 

SUBTITLE II. VESSELS AND SEAMEN

PART E. MERCHANT SEAMEN LICENSES, CERTIFICATES, AND

DOCUMENTS

CHAPTER 75. GENERAL PROCEDURES FOR LICENSING, CERTIFICATION, 

AND DOCUMENTATION

§ 7502. Records 

(a) The Secretary shall maintain records, including electronic 

records, on the issuances, denials, suspensions, and revocations of 

licenses, certificates of registry, merchant mariners’ documents, 

and endorsements on those licenses, certificates, and documents. 

(b) The Secretary may prescribe regulations requiring a vessel 

owner or managing operator of a commercial vessel, or the employer of a seaman on that vessel, to maintain records of each individual engaged on the vessel subject to inspection under chapter 33 

on matters of engagement, discharge, and service for not less than 

5 years after the date of the completion of the service of that individual on the vessel. The regulations may require that a vessel 

owner, managing operator, or employer shall make these records 

available to the individual and the Coast Guard on request. 

(c) The Secretary shall coordinate with the Secretary of Transportation to ensure that, to the extent feasible, electronic records provide information on mariner availability and respective credentials 

to meet national security needs for credentialed mariners crewing 

strategic sealift vessels. 

ø(c)¿(d) A person violating this section, or a regulation prescribed 

under this section, is liable to the United States Government for 

a civil penalty of not more than $5,000. 

TITLE 46. SHIPPING 

SUBTITLE V. MERCHANT MARINE

PART B. MERCHANT MARINE SERVICE

CHAPTER 513. UNITED STATES MERCHANT MARINE ACADEMY

§ 51307. Places of training 

øThe Secretary¿ 

(a) IN GENERAL.—The Secretary of Transportation may provide 

for the training of cadets at the United States Merchant Marine 

Academy— 

(1) on vessels øowned or subsidized by¿ owned, subsidized 

by, or contracted with the United States Government, including in accordance with subsections (b), (c), and (d); 

13 

(2) on other documented vessels, with the permission of the 

owner; 

(3) in shipyards or plants and with industrial or educational 

organizations; and 

(4) on any other vessel considered by the Secretary to be necessary or appropriate or in the national interest. 

(b) MARITIME SECURITY PROGRAM VESSELS.—Subject to subsection (d), the Secretary shall require an operator of a vessel participating in the Maritime Security Program under chapter 531 of 

this title to carry on each Maritime Security Program vessel 2 

United States Merchant Marine Academy cadets, if available, on 

each voyage. 

(c) MILITARY SEALIFT COMMAND VESSELS.—Subject to subsection 

(d), the Secretary and Commander of the Military Sealift Command 

shall require an operator of a vessel contracted for service for the 

United States Navy’s Military Sealift Command to carry on each 

such vessel 2 United States Merchant Marine Academy cadets, if 

available, on each voyage, if the vessel— 

(1) is flagged in the United States; and 

(2) is rated at 10,000 gross tons or higher. 

(d) WAIVER.—If it is determined at any time by the Secretary or 

the Commander of the Military Sealift Command that cadets from 

the United States Merchant Marine Academy would place an undue 

burden on a vessel or vessel operator, the Secretary or Commander 

may waive the requirements described in subsection (b) or (c). 

§ 51318. Policy on sexual harassment, dating violence, domestic violence, sexual assault, and stalking 

(a) REQUIRED POLICY.— 

(1) IN GENERAL.—The Secretary of Transportation shall direct the Superintendent of the United States Merchant Marine 

Academy to prescribe a policy on sexual harassment, dating violence, domestic violence, sexual assault, and stalking applicable to the cadets and other personnel of the Academy. 

(2) MATTERS TO BE SPECIFIED IN POLICY.—The policy on sexual harassment, dating violence, domestic violence, sexual assault, and stalking prescribed under this subsection shall include— 

(A) a program to promote awareness and prevention of 

the incidence of rape, acquaintance rape, domestic violence, dating violence, stalking, and other sexual offenses 

of a criminal nature that involve cadets or other Academy 

personnel; 

(B) procedures for documenting, tracking, and maintaining the data required to conduct the annual assessments to 

determine the effectiveness of the policies, procedures, and 

training program of the Academy with respect to sexual 

harassment, dating violence, domestic violence, sexual assault, and stalking involving cadets or other Academy personnel, as required by subsection (c); 

ø(B)¿(C) procedures that a cadet or other Academy personnel should follow in the case of an occurrence of sexual 

harassment, dating violence, domestic violence, sexual assault, or stalking, including— 

14 

(i) specifying the person or persons to whom an alleged occurrence of sexual harassment, dating violence, domestic violence, sexual assault, or stalking, 

should be reported by the victim and the options for 

confidential reporting; 

(ii) specifying any other person whom the victim 

should contact; and 

(iii) procedures on the preservation of evidence potentially necessary for proof of a criminal sexual offense; 

(D) procedures for investigating sexual harassment, dating violence, domestic violence, sexual assault, or stalking 

involving a cadet or other Academy personnel to determine 

whether disciplinary action is necessary; 

ø(C)¿(E) a procedure for disciplinary action in cases of 

alleged criminal sexual assault involving a cadet or other 

Academy personnel; 

ø(D)¿(F) any other sanction authorized to be imposed in 

a substantiated case of sexual harassment, dating violence, 

domestic violence, sexual assault, or stalking involving a 

cadet or other Academy personnel in rape, acquaintance 

rape, or any other criminal sexual offense, whether forcible 

or nonforcible; 

ø(E)¿(G) procedures through which— 

(i) questions regarding sexual harassment, dating violence, domestic violence, sexual assault, or stalking 

can be confidentially asked and confidentially answered; 

(ii) victims can report incidents of sexual harassment, dating violence, domestic violence, sexual assault, or stalking confidentially; and 

(iii) the privacy of victims of sexual harassment, dating violence, domestic violence, sexual assault, or 

stalking will be protected; and 

ø(F)¿(H) required training on the policy for all cadets 

and other Academy personnel, including the specific training required for personnel who process allegations of sexual harassment, dating violence, domestic violence, sexual 

assault, or stalking involving Academy personnel. 

(3) MINIMUM TRAINING REQUIREMENTS FOR CERTAIN INDIVIDUALS REGARDING SEXUAL HARASSMENT, DATING VIOLENCE, DOMESTIC VIOLENCE, SEXUAL ASSAULT, AND STALKING.— 

(A) REQUIREMENT.—The Maritime Administrator shall 

direct the Superintendent of the United States Merchant 

Marine Academy to develop a mandatory training program 

at the Academy for each individual who is involved in implementing the Academy’s student disciplinary grievance 

procedures, including each individual who is responsible 

for— 

(i) resolving complaints of reported sexual harassment, dating violence, domestic violence, sexual assault, and stalking; 

(ii) resolving complaints of reported violations of the 

sexual misconduct policy of the Academy; or 

15 

(iii) conducting an interview with a victim of sexual 

harassment, dating violence, domestic violence, sexual 

assault, or stalking. 

(B) CONSULTATION.—The Superintendent shall develop 

the training program described in subparagraph (A) in 

consultation with national, State, or local sexual assault, 

dating violence, domestic violence, or stalking victim advocacy, victim services, or prevention organizations. 

(C) ELEMENTS.—The training required by subparagraph 

(A) shall include the following: 

(i) Information on working with and interviewing 

persons subjected to sexual harassment, dating violence, domestic violence, sexual assault, or stalking. 

(ii) Information on particular types of conduct that 

would constitute sexual harassment, dating violence, 

domestic violence, sexual assault, or stalking, regardless of gender, including same-sex sexual harassment, 

dating violence, domestic violence, sexual assault, or 

stalking. 

(iii) Information on consent and the effect that drugs 

or alcohol may have on an individual’s ability to consent. 

(iv) Information on the effects of trauma, including 

the neurobiology of trauma. 

(v) Training regarding the use of trauma-informed 

interview techniques, which means asking questions of 

an individual who has been a victim of sexual harassment, dating violence, domestic violence, sexual assault, or stalking in a manner that is focused on the 

experience of the victim, does not judge or blame the 

victim, and is informed by evidence-based research on 

the neurobiology of trauma. 

(vi) Training on cultural awareness regarding how 

dating violence, domestic violence, sexual assault, or 

stalking may impact midshipmen differently depending on their cultural background. 

(vii) Information on sexual assault dynamics, sexual 

assault perpetrator behavior, and barriers to reporting. 

(D) IMPLEMENTATION.— 

(i) DEVELOPMENT AND APPROVAL SCHEDULE.—The 

training program required by subparagraph (A) shall 

be developed not later than 90 days after the date of 

the enactment of the National Defense Authorization 

Act for Fiscal Year 2018. 

(ii) COMPLETION OF TRAINING.—Each individual who 

is required to complete the training described in subparagraph (A) shall complete such training not later 

than— 

(I) 270 days after the date of the enactment of 

the National Defense Authorization Act for Fiscal 

Year 2018; or 

(II) 180 days after starting a position with responsibilities that include the activities described 

in clause (i), (ii), or (iii) of subparagraph (A). 

16 

(4) AVAILABILITY OF POLICY.—The Secretary shall ensure 

that the policy developed under this subsection is available 

to— 

(A) all cadets and employees of the Academy; and 

(B) the public. 

(5) CONSULTATION AND ASSISTANCE.—In developing the policy 

under this subsection, the Secretary may consult with or receive assistance from such Federal, State, local, and national 

organizations and subject matter experts as the Secretary considers appropriate. 

(6) CONSISTENCY WITH THE HIGHER EDUCATION ACT OF 1965.— 

The Secretary shall ensure that the policy developed under this 

subsection meets the requirements set out in section 485(f)(8) 

of the Higher Education Act of 1965 (20 U.S.C. 1092(f)(8)). 

(b) DEVELOPMENT PROGRAM.— 

(1) IN GENERAL.—The Maritime Administrator shall ensure 

that the development program of the Academy includes a section that— 

(A) describes the relationship between honor, respect, 

and character development and the prevention of sexual 

harassment, dating violence, domestic violence, sexual assault, and stalking at the Academy; 

(B) includes a brief history of the problem of sexual harassment, dating violence, domestic violence, sexual assault, 

and stalking in the merchant marine, in the Armed Forces, 

and at the Academy; and 

(C) includes information relating to reporting sexual harassment, dating violence, domestic violence, sexual assault, 

and stalking, victims’ rights, and dismissal for offenders. 

(2) MINIMUM REQUIREMENTS TO COMBAT RETALIATION.— 

(A) REQUIREMENT FOR PLAN.—Not later than 90 days 

after the date of the enactment of the National Defense 

Authorization Act for Fiscal Year 2018, the Maritime Administrator shall direct the Superintendent of the United 

States Merchant Marine Academy to implement and maintain a plan to combat retaliation against cadets at the 

Academy and other Academy personnel who report sexual 

harassment, dating violence, domestic violence, sexual assault, or stalking. 

(B) VIOLATION OF CODE OF CONDUCT.—The Superintendent shall consider an act of retaliation against a 

cadet at the Academy who reports sexual harassment, dating violence, domestic violence, sexual assault, or stalking 

as a Class I violation of the Midshipman Regulations of 

the Academy or equivalent code of conduct. 

(C) RETALIATION DEFINITION.—The Superintendent shall 

work with the sexual assault prevention and response staff 

of the Academy to define ‘‘retaliation’’ for purposes of this 

subsection. 

(3) MINIMUM RESOURCE REQUIREMENTS.— 

(A) IN GENERAL.—The Maritime Administrator shall ensure the staff at the Academy are provided adequate and 

appropriate sexual harassment, dating violence, domestic 

violence, sexual assault, and stalking prevention and reVerDate Sep 11 2014 05:37 Jul 10, 2018 Jkt 079010 PO 00000 Frm 00018 Fmt 6659 Sfmt 6602 E:\HR\OC\SR292.XXX SR292
17 

sponse training materials and resources. Such resources 

shall include staff as follows: 

(i) Sexual assault response coordinator. 

(ii) Prevention educator. 

(iii) Civil rights officer. 

(iv) Staff member to oversee Sea Year. 

(B) COMMUNICATION.—The Director of the Office of Civil 

Rights of the Maritime Administration shall create and 

maintain a direct line of communication to the sexual assault response staff of the Academy that is outside of the 

chain of command of the Academy. 

(4) MINIMUM TRAINING REQUIREMENTS.—The Superintendent 

shall ensure that all cadets receive training on the sexual harassment, dating violence, domestic violence, sexual assault, 

and stalking prevention and response sections of the development program of the Academy, as described in paragraph (1), 

as follows: 

(A) An initial training session, which shall occur not 

later than 7 days after a cadet’s initial arrival at the Academy. 

(B) Additional training sessions, which shall occur biannually following the cadet’s initial training session until 

the cadet graduates or leaves the Academy. 

(c) * * * 

(d) ANNUAL REPORT.— (1) IN GENERAL.—For each Academy program year, the Superintendent shall submit to the Secretary a report that provides information about sexual harassment and sexual assault 

involving cadets or other Academy personnel. 

(2) CONTENTS.—Each report submitted under paragraph (1) 

shall include, for the Academy program year covered by the report— 

(A) the number of sexual assaults, rapes, and other sexual offenses, including sexual harassment, involving cadets 

or other Academy personnel that have been reported to 

Academy officials; 

(B) the number of the reported cases described in subparagraph (A) that have been substantiated; 

(C) the policies, procedures, and training implemented 

by the Superintendent and the leadership of the Academy 

in response to incidents of sexual harassment and sexual 

assault involving cadets and other Academy personnel; 

and 

(D) a plan for the actions that will be taken in the following Academy program year regarding prevention of, 

and response to, incidents of sexual harassment and sexual assault involving cadets and other Academy personnel. 

(3) SURVEY AND FOCUS GROUP RESULTS.— 

(A) SURVEY RESULTS.—Each report under paragraph (1) 

for an Academy program year that begins in an odd-numbered calendar year shall include the results of the survey 

conducted in that program year under subsection (c)(2). 

(B) FOCUS GROUP RESULTS.—Each report under paragraph (1) for an Academy program year in which the Secretary is not required to conduct the survey described in 

18 

subsection (c)(2) shall include the results of the focus 

group conducted in that program year under subsection 

(c)(3). 

(4) REPORTING REQUIREMENT.— (A) BY THE SUPERINTENDENT.—For each incident of sexual harassment or sexual assault reported to the Superintendent, the Superintendent shall provide to the Secretary and the Board of Visitors of the Academy a report 

that includes— 

(i) the facts surrounding the incident, except for any 

details that would reveal the identities of the people 

involved; and 

(ii) the Academy’s response to the incident. 

(B) BY THE SECRETARY.—øThe Secretary¿ Not later than 

January 15 of each year, the Secretary shall submit a copy 

of each report received under subparagraph (A) and the 

Secretary’s comments on the report to the Committee on 

Commerce, Science, and Transportation of the Senate and 

the Committee on Transportation and Infrastructure of the 

House of Representatives. 

(e) * * * 

§ 51322. Protection of cadets from sexual assault onboard 

vessels 

(a) RIDING GANGS.— (1) CERTIFICATION OF COMPLIANCE.—The Maritime Administrator shall require the owner or operator of any commercial 

vessel that is carrying a cadet from the United States Merchant Marine Academy to certify compliance of the vessel with 

the International Convention for Safety of Life at Sea, 1974 (32 

UST 47) and section 8106 of this title. 

(2) INFORMATION FOR CADETS.—The Maritime Administrator 

shall ensure that the Academy informs cadets preparing for 

Sea Year of the obligations that vessel owners and operators 

have to provide for the security of individuals aboard a vessel 

under United States law, including chapter 81 and section 

70103(c) of this title. 

(b) CHECKS OF COMMERCIAL VESSELS.— (1) REQUIREMENT.—Not less frequently than biennially, staff 

of the Academy or staff of the Maritime Administration shall 

conduct both random and targeted unannounced checks of not 

less than 10 percent of the commercial vessels that host a 

cadet from the Academy. 

(2) REMOVAL OF STUDENTS.—If staff of the Academy or staff 

of the Maritime Administration determine that a commercial 

vessel is in violation of the sexual assault policy developed by 

the Academy through a check conducted under paragraph (1), 

the staff may— 

(A) remove any cadet of the Academy from the vessel; 

and 

(B) report the violation to the owner or operator of the 

vessel. 

ø(c) MAINTENANCE OF SEXUAL ASSAULT TRAINING RECORDS.—The 

Maritime Administrator shall require the owner or operator of a 

commercial vessel, or the seafarer union for a commercial vessel, 

19 

to maintain records of sexual assault training for the crew and passengers of any vessel hosting a cadet from the Academy.¿ 

(c) MAINTENANCE OF SEXUAL ASSAULT TRAINING RECORDS.—The 

Maritime Administrator shall require the owner or operator of a 

commercial vessel, or the seafarer union for a commercial vessel, to 

maintain records of sexual assault training for any person required 

to have such training. 

(d) SEA YEAR SURVEY.— 

(1) REQUIREMENT.—The Maritime Administrator shall require each cadet from the Academy, upon completion of the cadet’s Sea Year, to complete a survey regarding the environment and conditions during the Sea Year of the vessel to which 

the cadet was assigned. 

(2) AVAILABILITY. THE MARITIME ADMINISTRATOR SHALL MAKE

AVAILABLE TO THE PUBLIC FOR EACH YEAR.— 

(A) the questions used in the survey required by paragraph (1); and 

(B) the aggregated data received from such surveys. 

CHAPTER 515. STATE MARITIME ACADEMY SUPPORT PROGRAM

§ 51504. Use of training vessels 

(a) * * * 

ø(g) REMOVING VESSELS FROM SERVICE AND VESSEL SHARING.— 

The Secretary may not— 

ø(1) take a vessel, currently in use as a training vessel under 

this section, out of service to implement an alternative program (including vessel sharing) unless the vessel is incapable 

of being maintained in good repair as required by subsection 

(d); or 

ø(2) implement a program requiring a State maritime academy to share its training vessel with another State maritime 

academy, except with the express consent of Congress.¿ 

(g) VESSEL CAPACITY SHARING.— 

(1) IN GENERAL.—Not later than 90 days after the date of enactment of the Maritime Authorization and Enhancement Act 

for Fiscal Year 2019, the Secretary, acting through the Maritime Administrator, shall upon consultation with the maritime 

academies, and to the extent feasible with the consent of the 

maritime academies, implement a program of vessel sharing, 

requiring maritime academies to share training capacity vessels 

provided by the Secretary among maritime academies, as necessary to ensure that training needs of each academy are met. 

(2) PROGRAM OF VESSEL CAPACITY SHARING.—For purposes of 

this subsection, a program of vessel capacity sharing shall include— 

(A) ways to maximize the available underway training 

capacity available in the fleet of training vessels; 

(B) coordinating the dates and duration of training 

cruises with the academic calendars of maritime academies; 

(C) coordinating academic programs designed to be implemented aboard training vessels among maritime academies; and 

(D) identifying ways to minimize costs. 

20 

(3) EVALUATION.—Not later than 30 days after the beginning 

of each fiscal year, the Secretary, acting through the Maritime 

Administrator, shall evaluate the vessel capacity sharing program under this subsection to determine the optimal utilization 

of State maritime training vessels, and modify the program as 

necessary to improve utilization. 

§ 51505. Annual payments for maintenance and support 

(a) PAYMENT AGREEMENTS.—The Secretary of Transportation 

may make an agreement (effective for not more than 4 years) with 

the following academies to provide annual payments to those academies for their maintenance and support: 

(1) One State maritime academy in each State that satisfies 

section 51506(a) of this title. 

(2) Each regional maritime academy that satisfies section 

51506(a) of this title. 

(b) PAYMENTS.— 

(1) IN GENERAL.—Subject to paragraph (2), an annual payment to an academy under subsection (a) shall be at least 

equal to the amount given to the academy for its maintenance 

and support by the State in which it is located, or, for a regional maritime academy, by all States cooperating to sponsor 

the academy. 

ø(2) MAXIMUM.—The amount under paragraph (1) may not 

be more than $25,000. However, if the academy satisfies section 51506(b) of this title, the amount shall be— 

ø(A) $100,000 for a State maritime academy; and 

ø(B) $300,000 for fiscal year 2006, $400,000 for fiscal 

year 2007, and $500,000 for fiscal year 2008 and each fiscal year thereafter for a regional maritime academy.¿ 

(2) MAXIMUM.—The amount under paragraph (1) may not be 

more than $25,000, unless the academy satisfies section 

51506(b) of this title. 

PART C. FINANCIAL ASSISTANCE PROGRAMS

CHAPTER 539. WAR RISK INSURANCE

ø§ 53912. Expiration date 

øThe authority of the Secretary of Transportation to provide insurance and reinsurance under this chapter expires on December 

31, 2020.¿ 

CHAPTER 541. MISCELLANEOUS

§ 54101. Assistance for small shipyards 

(a) ESTABLISHMENT OF PROGRAM.—Subject to the availability of 

appropriations, the Administrator of the Maritime Administration 

shall execute agreements with shipyards to provide assistance— 

(1) in the form of grants, loans, and loan guarantees to small 

shipyards for capital improvements; and 

(2) for maritime training programs to foster technical skills 

and operational productivity relating to shipbuilding, ship repair, and associated industries. 

(b) AWARDS.— 

21 

(1) IN GENERAL.—In providing assistance under the program, 

the Administrator shall consider projects that foster— 

(A) efficiency, competitive operations, and quality ship 

construction, repair, and reconfiguration; and 

(B) employee skills and enhanced productivity related to 

shipbuilding, ship repair, and associated industries. 

(2) TIMING OF GRANT NOTICE.—The Administrator shall post 

a Notice of Funding Opportunity regarding grants awarded 

under this section not more than 15 days after the date of enactment of the appropriations Act for the fiscal year concerned. 

ø(2)¿(3) TIMING OF GRANTS.—The Administrator shall award 

grants under this section not later than 120 days after the date 

of the enactment of the appropriations Act for the fiscal year 

concerned. 

ø(3)¿(4) REUSE OF UNEXPENDED GRANT FUNDS.—Notwithstanding øparagraph (2)¿ paragraph (3), amounts awarded as 

a grant under this section that are not expended by the grantee shall remain available to the Administrator for use for 

grants under this section. 

(c) USE OF FUNDS.— 

(1) IN GENERAL.—Assistance provided under this section may 

be used to—(A) make capital and related improvements in 

small shipyards; and 

(B) provide training for workers in shipbuilding, ship repair, and associated industries. 

(2) ADMINISTRATIVE COSTS.—Not more than 2 percent of 

amounts made available to carry out the program may be used 

for the necessary costs of grant administration. 

(3) BUY AMERICA.— 

(A) IN GENERAL.—Notwithstanding any other provision of 

law, the Secretary of Transportation shall not obligate any 

funds authorized to be appropriated to carry out this chapter unless any steel, iron, and manufactured products used 

in the project authorized under this chapter are produced 

in the United States. 

(B) EXCEPTION.—The provisions of subparagraph (A) 

shall not apply where the Secretary finds— 

(i) that their application would be inconsistent with 

the public interest; 

(ii) that such materials and products are not produced in the United States in sufficient and reasonably 

available quantities and of a satisfactory quality; or 

(iii) that inclusion of domestic material will increase 

the cost of the overall project by more than 25 percent. 

(d) PROHIBITED USES.—Grants awarded under this section may 

not be used to construct buildings or other physical facilities or to 

acquire land. 

(e) MATCHING REQUIREMENTS; ALLOCATION.— 

(1) FEDERAL FUNDING.—Federal funds for any eligible project 

under this section shall not exceed 75 percent of the total cost 

of such project. 

(2) ALLOCATION OF FUNDS.—The Administrator may not 

award more than 25 percent of the funds appropriated to carry 

out this section for any fiscal year to any small shipyard in one 

geographic location that has more than 600 employees. 

22 

(f) APPLICATIONS.— 

(1) IN GENERAL.—To be eligible for assistance under this section, an applicant shall submit an application, in such form, 

and containing such information and assurances as the Administrator may require, within 60 days after the date of enactment of the appropriations Act for the fiscal year concerned. 

(2) MINIMUM STANDARDS FOR PAYMENT OR REIMBURSEMENT.—Each application submitted under paragraph (1) shall 

include— 

(A) a comprehensive description of— 

(i) the need for the project; 

(ii) the methodology for implementing the project; 

and 

(iii) any existing programs or arrangements that can 

be used to supplement or leverage assistance under 

the program. 

(B) [Not enacted] 

(3) PROCEDURAL SAFEGUARDS.—The administrator, in consultation with the office of the inspector general, shall issue 

guidelines to establish appropriate accounting, reporting, and 

review procedures to ensure that— 

(A) grant funds are used for the purposes for which they 

were made available; 

(B) grantees have properly accounted for all expenditures of grant funds; and 

(C) grant funds not used for such purposes and amounts 

not obligated or expended are returned. 

(4) PROJECT APPROVAL REQUIRED.—The administrator may 

not award a grant under this section unless the administrator 

determines that— 

(A) sufficient funding is available to meet the matching 

requirements of subsection (e); 

(B) the project will be completed without unreasonable 

delay; and 

(C) the recipient has authority to carry out the proposed 

project. 

(g) AUDITS AND EXAMINATIONS.—All grantees under this section 

shall maintain such records as the Administrator may require and 

make such records available for review and audit by the Administrator. 

(h) SMALL SHIPYARD DEFINED.—In this section, the term ‘‘small 

shipyard’’ means a shipyard facility in one geographic location that 

does not have more than 1,200 employees. 

(i) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to 

be appropriated to the Administrator of the Maritime Administration for each of fiscal years 2018, 2019, and 2020 to carry out this 

section $35,000,000. 

23 

FLOYD D. SPENCE NATIONAL DEFENSE AUTHORIZATION 

ACT FOR FISCAL YEAR 2001 

[Public Law 106–398] 

SEC. 3502. SCRAPPING OF NATIONAL DEFENSE RESERVE FLEET VESSELS 

[54 U.S.C. 308704 note] 

(a) [Reserved]. 

(b) SELECTION OF SCRAPPING FACILITIES.—The Secretary of 

Transportation may scrap obsolete vessels pursuant to section 

6(c)(1) of the National Maritime Heritage Act of 1994 (16 U.S.C. 

5405(c)(1)) through qualified scrapping facilities, using the most expeditious scrapping methodology and location practicable. Scrapping facilities shall be selected under that section on a best value 

basis consistent with the Federal Acquisition Regulation, as in effect on the date of contract award, without any predisposition toward foreign or domestic facilities taking into consideration, among 

other things, the ability of facilities to scrap vessels— 

(1) at least cost to the Government; 

(2) in a timely manner; 

(3) giving consideration to worker safety and the environment; and 

(4) in a manner that minimizes the geographic distance that 

a vessel must be towed when towing a vessel poses a serious 

threat to the environment. 

(c) SCRAPPING OF IMPORTED VESSELS.— 

(1) IN GENERAL.—Notwithstanding any other provision of 

law, domestic ship scrapping facilities selected by the Secretary 

of Transportation in accordance with subsection (b) may import 

into the United States, for the purpose of dismantling, marine 

vessels that contain regulated levels of polychlorinated 

biphenyls that are integral to a vessel’s structure, equipment, or 

systems necessary for its operation. 

(2) NO TSCA PRIOR AUTHORIZATION REQUIRED.—In lieu of 

rulemaking by the Administrator of the Environmental Protection Agency under section 6(e) of the Toxic Substances Control 

Act (15 U.S.C. 2605(e)), imports of vessels containing regulated 

levels of polychlorinated biphenyls shall be subject to prior notification and consent in accordance with this subsection. 

(3) NOTIFICATION.— 

(A) CONTENTS.—An importer of 1 or more vessels containing regulated levels of polychlorinated biphenyls shall 

submit a notification to the Environmental Protection 

Agency not less than 75 days before a vessel is imported 

into the United States under this subsection. The import 

notification may cover up to one year of shipments of vessels containing regulated levels of polychlorinated 

biphenyls being sent to the same ship scrapping facility, 

and shall contain, at a minimum, the following items: 

(i) The name, contact name, address, telephone number, e-mail address, and EPA Identification Number (if 

applicable) of the ship scrapping facility and the recognized trader, if the ship scrapping facility is not the 

importer. 

24 

(ii) The name, contact name, address, telephone 

number, e-mail address, and EPA Identification Number (if applicable) of each facility where polychlorinated biphenyls or hazardous materials contained on a vessel will be stored and disposed of, including any polychlorinated biphenyls storage or disposal facility approved under the Toxic Substances 

Control Act (15 U.S.C. 2601 et seq.). 

(iii) The types of polychlorinated biphenyls or polychlorinated biphenyls items expected to be removed 

from the vessels. 

(iv) The number of vessels proposed for import and 

maximum tonnage. 

(v) The period of time covered by the import notice 

(not to exceed one year) and the start and end dates of 

shipment. 

(B) FORM.—Each notice under this paragraph shall be 

clearly marked ‘‘PCB Waste Import Notice’’ and shall be 

submitted to the Environmental Protection Agency in such 

form and manner as the Environmental Protection Agency 

may require. 

(C) REVISED NOTIFICATION.—If an importer wishes to 

change any of the information specified on the original notification, the importer must submit a revised notification, 

containing notification of the changes, to the Environmental Protection Agency. 

(4) CONSENT.— 

(A) IN GENERAL.—An importer shall not import vessels 

containing regulated levels of polychlorinated biphenyls 

until the importer has received consent from the Administrator of the Environmental Protection Agency. 

(B) TERMS.—Importers shall only import vessels under 

the terms of the consent issued by the Administrator of the 

Environmental Protection Agency under this paragraph 

and subject to the condition that the facility shall establish 

a valid written contract, chain of contracts, or equivalent 

arrangements with other United States facilities, where applicable, to manage the polychlorinated biphenyls and hazardous waste expected to be removed from the vessel or vessels. 

(5) REPORT TO THE ENVIRONMENTAL PROTECTION AGENCY.— 

Any ship scrapping facility authorized by this subsection to import vessels containing regulated levels of polychlorinated 

biphenyls shall file with the Administrator of the Environmental Protection Agency, not later than April 1 of each year, 

a report providing, for each vessel imported in accordance with 

this subsection, the following information: 

(A) The vessel name and approximated tonnage. 

(B) Registration number and flag of the vessel. 

(C) The date of import. 

(D) The types, quantities, and final destination of all polychlorinated biphenyls and hazardous waste removed. 

(E) The EPA-issued consent number under which the vessel was imported. 

25 

(6) APPLICABLE LAWS.—Once a vessel has been imported pursuant to this subsection, the manufacturing, processing, distribution in commerce, use, and disposal of any polychlorinated 

biphenyls and hazardous waste contained on the vessel shall be 

carried out in accordance with applicable Federal, State, and 

local laws and regulations. 

(7) AUTHORITY.—The Administrator of the Environmental 

Protection Agency may promulgate additional standards or procedures for the import of ships that contain regulated levels of 

polychlorinated biphenyls and hazardous waste, for the purpose 

of recycling, under this subsection, if— 

(A) the benefits of such additional standards or procedures exceed the costs of those standards or procedures; 

(B) not later than 180 days prior to promulgating such 

additional standards or procedures, the Administrator of 

the Environmental Protection Agency submits a report to 

the Committee on Commerce, Science, and Transportation 

of the Senate and the Committee on Transportation and Infrastructure of the House of Representatives demonstrating 

compliance with subparagraph (A) and the reasons such 

standards or procedures are necessary; and 

(C) the Administrator of the Environmental Protection 

Agency receives the concurrence of the Maritime Administrator on any such additional standards or procedures. 

ø(c)¿(d) COMPREHENSIVE MANAGEMENT PLAN.— (1) REQUIREMENT TO DEVELOP PLAN.—The Secretary of 

Transportation shall prepare, publish, and submit to the Congress by not later than 180 days after the date of the enactment of this Act a comprehensive plan for management of the 

vessel disposal program of the Maritime Administration in accordance with the recommendations made in the Government 

Accountability Office in report number GAO-05-264, dated 

March 2005. 

(2) CONTENTS OF PLAN.—The plan shall— 

(A) include a strategy and implementation plan for disposal of obsolete National Defense Reserve Fleet vessels 

(including vessels added to the fleet after the enactment of 

this paragraph) in a timely manner, maximizing the use of 

all available disposal methods, including dismantling, use 

for artificial reefs, donation, and Navy training exercises; 

(B) identify and describe the funding and other resources 

necessary to implement the plan, and specific milestones 

for disposal of vessels under the plan; 

(C) establish performance measures to track progress toward achieving the goals of the program, including the expeditious disposal of ships commencing upon the date of 

the enactment of this paragraph; 

(D) develop a formal decisionmaking framework for the 

program; and 

(E) identify external factors that could impede successful 

implementation of the plan, and describe steps to be taken 

to mitigate the effects of such factors. 

ø(d)¿(e) IMPLEMENTATION OF MANAGEMENT PLAN.— 

(1) REQUIREMENT TO IMPLEMENT.—Subject to the availability 

of appropriations, the Secretary shall implement the vessel disVerDate Sep 11 2014 05:37 Jul 10, 2018 Jkt 079010 PO 00000 Frm 00027 Fmt 6659 Sfmt 6602 E:\HR\OC\SR292.XXX SR292
26 

posal program of the Maritime Administration in accordance 

with— 

(A) the management plan submitted under subsection 

(c); and 

(B) the requirements set forth in paragraph (2). 

(2) UTILIZATION OF DOMESTIC SOURCES.—In the procurement 

of services under the vessel disposal program of the Maritime 

Administration, the Secretary shall— 

(A) use full and open competition; and 

(B) utilize domestic sources to the maximum extent 

practicable. 

ø(e)¿(f) FAILURE TO SUBMIT PLAN.— 

(1) PRIVATE MANAGEMENT CONTRACT FOR DISPOSAL OF MARITIME ADMINISTRATION VESSELS.—The Secretary of Transportation, subject to the availability of appropriations, shall 

promptly award a contract using full and open competition to 

expeditiously implement all aspects of disposal of obsolete National Defense Reserve Fleet vessels. 

(2) APPLICATION.—This subsection shall apply beginning 180 

days after the date of the enactment of this subsection, unless 

the Secretary of Transportation has submitted to the Congress 

the comprehensive plan required under subsection (c). 

ø(f)¿(g) BRIEFINGS.—The Maritime Administrator shall, upon request, provide briefings to the Committee on Transportation and 

Infrastructure, the Committee on Natural Resources, and the Committee on Armed Services of the House of Representatives, and the 

Committee on Commerce, Science, and Transportation and the 

Committee on Armed Services of the Senate, on the progress made 

in recycling vessels, problems encountered with recycling vessels, 

issues relating to vessel recycling, and other issues relating to vessel recycling and disposal. 

NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL 

YEAR 2017 

[Public Law 114–328] 

SEC. 3514. SEA YEAR COMPLIANCE 

[54 U.S.C. 51318 note] 

(a) VESSEL OPERATOR REQUIREMENTS.—øNot later than¿ 

(1) Not later than 90 days after the date of the enactment 

of this Act, the Maritime Administrator, in consultation with 

operators of commercial vessels of the United States, shall establish— 

ø(1)¿(A) criteria that vessel operators must meet in order to 

participate in the Sea Year program of the United States Merchant Marine Academy that addresses sexual harassment, sexual assault, and other inappropriate conduct; and 

ø(2)¿(B) a process for verifying compliance with the criteria. 

(2) For the purposes of this section, vessels operated by any 

of the following entities shall not be considered commercial vessels: 

(A) Any entity or agency of the United States. 

(B) The government of a State or territory. 

(C) Any political subdivision of a State or territory. 

(D) Any other municipal organization. 

27 

(b) PROVISION OF SATELLITE PHONE.— (1) IN GENERAL.—The Maritime Administrator shall ensure 

that each cadet from the United States Merchant Marine Academy who is participating in the Sea Year program is provided 

a functional satellite communication device. A cadet may not 

be denied from using the device whenever the student determines that use of the device is necessary to prevent or report 

sexual harassment or sexual assault. 

(2) CHECK-IN.—Not less often than once each week during a 

cadet’s participation in the Sea Year program, the cadet shall 

check-in with designated personnel at the Academy via the satellite communication device provided under paragraph (1). A 

text message sent via the satellite device shall meet the requirement for a weekly check-in for purposes of this paragraph. 

Æ