II

Calendar No. 686

106TH CONGRESS

2D SESSION S. 2487

[Report No. 106–345]

To authorize appropriations for Fiscal Year 2001 for certain maritime

programs of the Department of Transportation.

IN THE SENATE OF THE UNITED STATES

MAY 1, 2000

Mr. MCCAIN (for himself, Mr. INOUYE, and Mr. HOLLINGS) introduced the

following bill; which was read twice and referred to the Committee on

Commerce, Science, and Transportation

JULY 17, 2000

Reported by Mr. MCCAIN, with an amendment

[Strike out all after the enacting clause and insert the part printed in italic]

A BILL

To authorize appropriations for Fiscal Year 2001 for certain

maritime programs of the Department of Transportation.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Maritime Administra5 tion Authorization Act for Fiscal Year 2001’’.
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1 SEC. 2. AUTHORIZATION OF APPROPRIATIONS FOR FISCAL

2 YEAR 2001.

3 There are authorized to be appropriated to the Sec4 retary of Transportation for the Maritime Administration

5 the following amounts:

6 (1) For the expenses necessary for operations

7 and training activities, not to exceed $80,240,000

8 for the fiscal year ending September 30, 2001.

9 (2) For the costs, as defined in section 502 of

10 the Federal Credit Reform Act of 1990, of guaran11 teed loans authorized by title XI of the Merchant

12 Marine Act, 1936, as amended (46 U.S.C. App.

13 1271 et seq.), $2,000,000, to be available until ex14 pended. In addition, for administrative expenses re15 lated to loan guarantee commitments under title XI

16 of the Merchant Marine Act, 1936, as amended (46

17 U.S.C. App. 1271 et seq.), $4,179,000.

18 SEC. 3. DOCUMENTATION OF CERTAIN DRY CARGO VES19 SELS.

20 (a) IN GENERAL.—Title IX of the Merchant Marine

21 Act, 1936 (46 U.S.C. App. 101 et seq.) is amended by

22 adding at the end thereof the following:

23 ‘‘SEC. 910. DOCUMENTATION OF CERTAIN DRY CARGO VES24 SELS.

25 ‘‘(a) IN GENERAL.—The restrictions of section

26 901(b)(1) of this Act concerning a vessel built in a foreign
3

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1 country shall not apply to a drybulk or breakbulk vessel

2 over 7,500 deadweight tons that has been delivered from

3 a foreign shipyard or contracted for construction in a for4 eign shipyard before the earlier of—

5 ‘‘(1) the date that is 1 year after the date of

6 enactment of the Maritime Administration Author7 ization Act for Fiscal Year 2001; or

8 ‘‘(2) the effective date of the OECD Ship9 building Trade Agreement Act.

10 ‘‘(b) COMPLIANCE WITH CERTAIN U.S.-BUILD RE11 QUIREMENTS.—A vessel timely contracted for or delivered

12 pursuant to this section and documented under the laws

13 of the United States shall be deemed to have been United14 States built for purposes of sections 901(b) and 901b of

15 this Act if—

16 ‘‘(1) following delivery by a foreign shipyard,

17 the vessel has any additional shipyard work nec18 essary to receive a Coast Guard certificate of inspec19 tion performed in a United States shipyard;

20 ‘‘(2) the vessel is not documented in another

21 country before being documented under the laws of

22 the United States;

23 ‘‘(3) the vessel complies with the same inspec24 tion standards set forth for ocean common carriers
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1 in section 1137 of the Coast Guard Authorization

2 Act of 1996 (46 U.S.C. App. 1187 note); and

3 ‘‘(4) actual delivery of a vessel contracted for

4 construction takes place on or before the 3-year an5 niversary of the date of the contract to construct the

6 vessel.

7 ‘‘(c) SECTION 12106(e) OF TITLE 46.—Section

8 12106(e) of title 46, United States Code, shall not apply

9 to a vessel built pursuant to this section.’’.

10 (b) CONFORMING CALENDAR YEAR TO FEDERAL

11 FISCAL YEAR FOR SECTION 901B PURPOSES.—Section

12 901b(c)(2) of the Merchant Marine Act, 1936 (46 U.S.C

13 App. 1241f(c)(2)) is amended by striking ‘‘1986.’’ and in14 serting ‘‘1986, the 18-month period commencing April 1,

15 2000, and the 12-month period beginning on the first day

16 of October in the year 2001 and each year thereafter.’’.

17 SEC. 4. SCRAPPING OF CERTAIN VESSELS.

18 (a) IN GENERAL.—Section 510(i) of the Merchant

19 Marine Act, 1936 (46 U.S.C. App. 1160(i)) is amended—

20 (1) by inserting ‘‘(1)’’ before ‘‘The Secretary’’;

21 and

22 (2) by adding at the end thereof the following:

23 ‘‘(2) Notwithstanding any other provision of law, the

24 following vessels of the National Defense Reserve Fleet
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1 may be scrapped in foreign countries under terms and con2 ditions prescribed by the Secretary:

3 ‘‘(1) EXPORT CHALLENGER.

4 ‘‘(2) EXPORT COMMERCE.

5 ‘‘(3) BUILDER.

6 ‘‘(4) ALBERT E. WATTS.

7 ‘‘(5) WAYNE VICTORY.

8 ‘‘(6) MORMACDAWN.

9 ‘‘(7) MORMACMOON.

10 ‘‘(8) SANTA ELENA.

11 ‘‘(9) SANTA ISABEL.

12 ‘‘(10) SANTA CRUZ.

13 ‘‘(11) PROTECTOR.

14 ‘‘(12) LAUDERDALE.

15 ‘‘(13) PVT. FRED C. MURPHY.

16 ‘‘(14) BEAUJOLAIS.

17 ‘‘(15) MEACHAM.

18 ‘‘(16) NEACO.

19 ‘‘(17) WABASH.

20 ‘‘(18) NEMASKET.

21 ‘‘(19) MIRFAK.

22 ‘‘(20) GEN. ALEX M. PATCH.

23 ‘‘(21) ARTHUR M. HUDDELL.

24 ‘‘(22) WASHINGTON.

25 ‘‘(23) SUFFOLK COUNTY.
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1 ‘‘(24) CRANDALL.

2 ‘‘(25) CRILLEY.

3 ‘‘(26) RIGEL.

4 ‘‘(27) VEGA.

5 ‘‘(28) COMPASS ISLAND.

6 ‘‘(29) DONNER.

7 ‘‘(30) PRESERVER.

8 ‘‘(31) MARINE FIDDLER.

9 ‘‘(32) WOOD COUNTY.

10 ‘‘(33) CATAWBA VICTORY.

11 ‘‘(34) GEN. NELSON M. WALKER.

12 ‘‘(35) LORAIN COUNTY.

13 ‘‘(36) LYNCH.

14 ‘‘(37) MISSION SANTA YNEZ.

15 ‘‘(38) CALOOSAHATCHEE.

16 ‘‘(39) CANISTEO.

17 ‘‘(3) If the Secretary determines that additional ves18 sels in the National Defense Reserve Fleet will become

19 hazards to navigation or the environment, those vessels

20 may be scrapped in a manner consistent with this sub21 section.’’

22 (b) REPORT.—No later than 1 year after the date

23 of enactment of this Act, the Administrator of the Mari24 time Administration shall submit to the congress a report

25 on the implementation of the Administration’s program to
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1 rid the National Defense Reserve Fleet of obsolete vessels,

2 including—

3 (1) the number of vessels scrapped to date;

4 (2) the proceeds realized from the sale of ves5 sels to be scrapped; and

6 (3) the number of vessels remaining to be

7 scrapped.

8 (c) EXTENSION OF DISPOSAL DEADLINE.—Section

9 6(c)(1)(A) of the National Marine Heritage Act of 1994

10 (16 U.S.C. 5405(c)(1)(A)) is amended by striking

11 ‘‘2001;’’ and inserting ‘‘2004;’’.

12 SECTION 1. SHORT TITLE.

13 This Act may be cited as the ‘‘Maritime Administra14 tion Authorization Act for Fiscal Year 2001’’.

15 SEC. 2. AUTHORIZATION OF APPROPRIATIONS FOR FISCAL

16 YEAR 2001.

17 Funds are hereby authorized to be appropriated, as

18 Appropriations Acts may provide, for the use of the Depart19 ment of Transportation for the Maritime Administration

20 as follows:

21 (1) For expenses necessary for operations and

22 training activities, not to exceed $80,240,000 for the

23 fiscal year ending September 30, 2001.

24 (2) For the costs, as defined in section 502 of the

25 Federal Credit Reform Act of 1990, of guaranteed
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1 loans authorized by title XI of the Merchant Marine

2 Act, 1936 (46 U.S.C. App. 1271 et seq.), $50,000,000,

3 to be available until expended. In addition, for ad4 ministrative expenses related to loan guarantee com5 mitments under title XI of that Act, $4,179,000.

6 SEC. 3. AMENDMENTS TO TITLE IX OF THE MERCHANT MA7 RINE ACT, 1936.

8 (a) Title IX of the Merchant Marine Act, 1936 (46

9 U.S.C. App. 101 et seq.) is amended by adding at the end

10 thereof the following:

11 ‘‘SEC. 910. DOCUMENTATION OF CERTAIN DRY CARGO VES12 SELS.

13 ‘‘(a) IN GENERAL.—The restrictions of section

14 901(b)(1) of this Act concerning a vessel built in a foreign

15 country shall not apply to a newly constructed drybulk or

16 breakbulk vessel over 7,500 deadweight tons that has been

17 delivered from a foreign shipyard or contracted for con18 struction in a foreign shipyard before the earlier of—

19 ‘‘(1) the date that is 1 year after the date of en20 actment of the Maritime Administration Authoriza21 tion Act for Fiscal Year 2001; or

22 ‘‘(2) the effective date of the OECD Shipbuilding

23 Trade Agreement Act.

24 ‘‘(b) COMPLIANCE WITH CERTAIN U.S.-BUILD RE25 QUIREMENTS.—A vessel timely contracted for or delivered
9

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1 pursuant to this section and documented under the laws

2 of the United States shall be deemed to have been United3 States built for purposes of sections 901(b) and 901b of this

4 Act if—

5 ‘‘(1) following delivery by a foreign shipyard, the

6 vessel has any additional shipyard work necessary to

7 receive its initial Coast Guard certificate of inspec8 tion performed in a United States shipyard;

9 ‘‘(2) the vessel is not documented in another

10 country before being documented under the laws of the

11 United States;

12 ‘‘(3) the vessel complies with the same inspection

13 standards set forth for ocean common carriers in sec14 tion 1137 of the Coast Guard Authorization Act of

15 1996 (46 U.S.C. App. 1187 note); and

16 ‘‘(4) actual delivery of a vessel contracted for

17 construction takes place on or before the 3-year anni18 versary of the date of the contract to construct the ves19 sel.

20 ‘‘(c) SECTION 12106(e) OF TITLE 46.—Section

21 12106(e) of title 46, United States Code, shall not apply

22 to a vessel built pursuant to this section.’’.

23 (b) CONFORMING CALENDAR YEAR TO FEDERAL FIS24 CAL YEAR FOR SECTION 901b PURPOSES.—Section

25 901b(c)(2) of the Merchant Marine Act, 1936 (46 U.S.C
10

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1 App. 1241f(c)(2)) is amended by striking ‘‘1986.’’ and in2 serting ‘‘1986, the 18-month period commencing April 1,

3 2000, and the 12-month period beginning on the first day

4 of October in the year 2001 and each year thereafter.’’.

5 SEC. 4. SCRAPPING OF CERTAIN VESSELS.

6 (a) INTERNATIONAL ENVIRONMENTAL SCRAPPING

7 STANDARD.—The Secretary of State in coordination with

8 the Secretary of Transportation shall initiate discussions

9 in all appropriate international forums in order to estab10 lish an international standard for the scrapping of vessels

11 in a safe and environmentally sound manner.

12 (b) SCRAPPING OF OBSOLETE NATIONAL DEFENSE

13 RESERVE FLEET VESSELS.—

14 (1) DEVELOPMENT OF A SHIP SCRAPPING PRO15 GRAM.—The Secretary of Transportation, in consulta16 tion with the Secretary of the Navy, the Adminis17 trator of the Environmental Protection Agency, the

18 Assistant Secretary for Occupational Safety and

19 Health, and the Secretary of State, shall develop a

20 program within 9 months after the date of enactment

21 of this Act for the scrapping of obsolete National De22 fense Reserve Fleet Vessels and report to the Senate

23 Committee on Commerce, Science, and Transpor24 tation and the House of Representatives Committee

25 on Armed Services.
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1 (A) CONTENT.—The report shall include in2 formation concerning the initial determination

3 of scrapping capacity, both domestically and

4 abroad, development of appropriate regulations,

5 funding and staffing requirements, milestone

6 dates for the disposal of each obsolete vessel, and

7 long term cost estimates for the ship scrapping

8 program.

9 (B) ALTERNATIVES.—In developing the pro10 gram the Secretary of Transportation, in con11 sultation with the Secretary of the Navy, the Ad12 ministrator of the Environmental Protection

13 Agency, and the Secretary of State shall consider

14 all alternatives and available information

15 including—

16 (i) alternative scrapping sites;

17 (ii) vessel donations;

18 (iii) sinking of vessels in deep water;

19 (iv) sinking vessels for development of

20 artificial reefs;

21 (v) sales of vessels before they become

22 obsolete;

23 (vi) results from the Navy Pilot Scrap24 ping Program under section 8124 of the De-
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1 partment of Defense Appropriations Act,

2 1999; and

3 (vii) the Report of the Department of

4 Defense’s Interagency Panel on Ship Scrap5 ping issued in April, 1998.

6 (2) SELECTION OF SCRAPPING FACILITIES.—Not7 withstanding the provisions of the Toxic Substances

8 Control Act (15 U.S.C. 2605 et seq.), a ship scrapping

9 program shall be accomplished through qualified

10 scrapping facilities whether located in the United

11 States or abroad. Scrapping facilities shall be selected

12 on a best value basis taking into consideration,

13 among other things, the facilities’s ability to scrap

14 vessels—

15 (A) economically;

16 (B) in a safe and timely manner;

17 (C) with minimal impact on the environ18 ment;

19 (D) with proper respect for worker safety;

20 and

21 (E) by minimizing the geographic distance

22 that a vessel must be towed when such a vessel

23 poses a serious threat to the environment.

24 (3) AMENDMENT OF NATIONAL MARITIME HERIT25 AGE ACT.—Section 6(c)(1) of the National Maritime
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1 Heritage Act of 1994 (16 U.S.C. 5405(c)(1)) is

2 amended—

3 (A) by striking ‘‘2001’’ in subparagraph

4 (A) and inserting ‘‘2006’’; and

5 (B) by striking subparagraph (B) and in6 serting the following:

7 ‘‘(B) in the most cost effective manner to the

8 United States taking into account the need for dis9 posal, the environment, and safety concerns; and’’.

10 (4) FUNDING FOR SCRAPPING.—Section

11 2218(c)(1)(E) of title 10, United States Code, is

12 amended by inserting ‘‘and scrapping the vessels of’’

13 after ‘‘maintaining’’.

14 (c) LIMITATION ON SCRAPPING BEFORE PROGRAM.—

15 Until the report required by subsection (b)(1) is transmitted

16 to the Congress, the Secretary may not proceed with the

17 scrapping of any vessels in the National Defense Reserve

18 Fleet except the following:

19 (1) EXPORT CHALLENGER.

20 (2) EXPORT COMMERCE.

21 (3) BUILDER.

22 (4) ALBERT E. WATTS.

23 (5) WAYNE VICTORY.

24 (6) MORMACDAWN.

25 (7) MORMACMOON.
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1 (8) SANTA ELENA.

2 (9) SANTA ISABEL.

3 (10) SANTA CRUZ.

4 (11) PROTECTOR.

5 (12) LAUDERDALE.

6 (13) PVT. FRED C. MURPHY.

7 (14) BEAUJOLAIS.

8 (15) MEACHAM.

9 (16) NEACO.

10 (17) WABASH.

11 (18) NEMASKET.

12 (19) MIRFAK.

13 (20) GEN. ALEX M. PATCH.

14 (21) ARTHUR M. HUDDELL.

15 (22) WASHINGTON.

16 (23) SUFFOLK COUNTY.

17 (24) CRANDALL.

18 (25) CRILLEY.

19 (26) RIGEL.

20 (27) VEGA.

21 (28) COMPASS ISLAND.

22 (29) DONNER.

23 (30) PRESERVER.

24 (31) MARINE FIDDLER.

25 (32) WOOD COUNTY.
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1 (33) CATAWBA VICTORY.

2 (34) GEN. NELSON M. WALKER.

3 (35) LORAIN COUNTY.

4 (36) LYNCH.

5 (37) MISSION SANTA YNEZ.

6 (38) CALOOSAHATCHEE.

7 (39) CANISTEO.

8 (d) BIANNUAL REPORT.—Beginning 1 year after the

9 date of enactment of this Act, the Secretary of Transpor10 tation in coordination with the Secretary of the Navy shall

11 report to Congress biannually on the progress of the ship

12 scrapping program developed under subsection (b)(1) and

13 on the progress of any other scrapping of obsolete govern14 ment-owned vessels.

15 SEC. 5. REPORTING OF ADMINISTERED AND OVERSIGHT

16 FUNDS.

17 The Maritime Administration, in its annual report to

18 the Congress under section 208 of the Merchant Marine Act,

19 1936 (46 U.S.C. App. 1118), and in its annual budget esti20 mate submitted to the Congress, shall state separately the

21 amount, source, intended use, and nature of any funds

22 (other than funds appropriated to the Administration or

23 to the Secretary of Transportation for use by the Adminis24 tration) administered, or subject to oversight, by the Ad25 ministration.
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1 SEC. 6. MARITIME INTERMODAL RESEARCH.

2 Section 8 of Public Law 101–115 (46 U.S.C. App.

3 1121–2) is amended by adding at the end thereof the fol4 lowing:

5 ‘‘(f) UNIVERSITY TRANSPORTATION RESEARCH

6 FUNDS.—

7 ‘‘(1) IN GENERAL.—The Secretary may make a

8 grant under section 5505 of title 49, United States

9 Code, to an institute designated under subsection (a)

10 for maritime and maritime intermodal research

11 under that section as if the institute were a university

12 transportation center.

13 ‘‘(2) ADVICE AND CONSULTATION OF MARAD.—In

14 making a grant under the authority of paragraph (1),

15 the Secretary, through the Research and Special Pro16 grams Administration, shall advise the Maritime Ad17 ministration concerning the availability of funds for

18 the grants, and consult with the Administration on

19 the making of the grants.’’.

20 SEC. 7. MARITIME RESEARCH AND TECHNOLOGY DEVELOP21 MENT.

22 (a) IN GENERAL.—The Secretary of Transportation

23 shall conduct a study of maritime research and technology

24 development, and report its findings and conclusions, to25 gether with any recommendations it finds appropriate, to
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1 the Congress within 9 months after the date of enactment

2 of this Act.

3 (b) REQUIRED AREAS OF STUDY.—The Secretary shall

4 include the following items in the report required by sub5 section (a):

6 (1) The approximate dollar values appropriated

7 by the Congress for each of the 5 fiscal years ending

8 before the study is commenced for each of the fol9 lowing modes of transportation:

10 (A) Highway.

11 (B) Rail.

12 (C) Aviation.

13 (D) Public transit.

14 (E) Maritime.

15 (2) A description of how Federal funds appro16 priated for research in the different transportation

17 modes are utilized.

18 (3) A summary and description of current re19 search and technology development funds appro20 priated for each of those fiscal years for maritime re21 search initiatives, with separate categories for funds

22 provided to the Coast Guard for marine safety re23 search purposes.

24 (4) A description of cooperative mechanisms that

25 could be used to attract and leverage non-federal in-
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1 vestments in United States maritime research and

2 technology development and application programs,

3 including the potential for the creation of maritime

4 transportation research centers and the benefits of co5 operating with existing surface transportation re6 search centers.

7 (5) Proposals for research and technology devel8 opment funding to facilitate the evolution of Maritime

9 Transportation System.

10 (c) AUTHORIZATION OF APPROPRIATIONS.—There are

11 authorized to be appropriated $100,000 to carry out this

12 section.

13 SEC. 8. AUTHORITY TO CONVEY NATIONAL DEFENSE RE14 SERVE FLEET VESSEL, GLACIER.

15 (a) AUTHORITY TO CONVEY.—Notwithstanding any

16 other law, the Secretary of Transportation may, subject to

17 subsection (b), convey all right, title, and interest of the

18 United States Government in and to the vessel in the Na19 tional Defense Reserve Fleet that was formerly the U.S.S.

20 GLACIER (United States official number AGB–4) to the

21 Glacier Society, Inc., a corporation established under the

22 laws of the State of Connecticut that is located in Bridge23 port, Connecticut.

24 (b) TERMS OF CONVEYANCE.—
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1 (1) REQUIRED CONDITIONS.—The Secretary may

2 not convey the vessel under this section unless the

3 corporation—

4 (A) agrees to use the vessel for the purpose

5 of a monument to the accomplishments of mem6 bers of the Armed Forces of the United States, ci7 vilians, scientists, and diplomats in exploration

8 of the Arctic and the Antarctic;

9 (B) agrees that the vessel will not be used

10 for commercial purposes;

11 (C) agrees to make the vessel available to

12 the Government if the Secretary requires use of

13 the vessel by the Government for war or national

14 emergency;

15 (D) agrees to hold the Government harmless

16 for any claims arising from exposure to asbestos,

17 polychlorinated biphenyls, or lead paint after the

18 conveyance of the vessel, except for claims arising

19 from use of the vessel by the Government pursu20 ant to the agreement under subparagraph (C);

21 and

22 (E) provides sufficient evidence to the Sec23 retary that it has available for use to restore the

24 vessel, in the form of cash, liquid assets, or a
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1 written loan commitment, financial resources of

2 at least $100,000.

3 (2) DELIVERY OF VESSEL.—If the Secretary con4 veys the vessel under this section, the Secretary shall

5 deliver the vessel—

6 (A) at the place where the vessel is located

7 on the date of conveyance;

8 (B) in its condition on that date; and

9 (C) at no cost to the United States Govern10 ment.

11 (3) ADDITIONAL TERMS.—The Secretary may re12 quire such additional terms in connection with the

13 conveyance authorized by this section as the Secretary

14 considers appropriate.

15 (c) OTHER UNNEEDED EQUIPMENT.—If the Secretary

16 conveys the vessel under this section, the Secretary may also

17 convey to the corporation any unneeded equipment from

18 other vessels in the National Defense Reserve Fleet or Gov19 ernment storage facilities for use to restore the vessel to mu20 seum quality or to its original configuration (or both).

21 (d) RETENTION OF VESSEL IN NDRF.—The Secretary

22 shall retain in the National Defense Reserve Fleet the vessel

23 authorized to be conveyed under this section until the earlier

24 of—
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1 (1) 2 years after the date of the enactment of this

2 Act; or

3 (2) the date of the conveyance of the vessel under

4 this section.
Calendar No. 686

106TH CONGRESS

2D SESSION S. 2487

[Report No. 106–345]

A BILL

To authorize appropriations for Fiscal Year 2001

for certain maritime programs of the Departmentof Transportation.

JULY 17, 2000

Reported with an amendment