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[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2547 Introduced in House (IH)]

103d CONGRESS
  1st Session
                                H. R. 2547

 To improve the economy of the United States and promote the national 
  security interests of the United States by establishing a National 
   Shipbuilding Initiative to provide support for the United States 
 shipbuilding industry in order to assist that industry in regaining a 
significant share of the world commercial shipbuilding market, and for 
                            other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             June 29, 1993

   Mr. Studds (for himself, Mr. Dellums, Mr. Lipinski, Mr. Taylor of 
Mississippi, Mr. Fields of Texas, Mr. Bateman, Mr. Hughes, Mr. Tauzin, 
 Mr. Ortiz, Mr. Manton, Mr. Pickett, Mr. Hochbrueckner, Mrs. Unsoeld, 
 Mr. Reed, Mr. Lancaster, Mr. Andrews of Maine, Ms. Furse, Ms. Schenk, 
   Mr. Hastings, Ms. Eshoo, Mr. Barlow, Mr. Stupak, Mr. Thompson of 
 Mississippi, Mr. Ackerman, Mr. Scott, Mr. Saxton, Mr. Cunningham, Mr. 
 King, Mr. Diaz-Balart, Mrs. Bentley, and Mr. Hamburg) introduced the 
    following bill; which was referred jointly to the Committees on 
            Merchant Marine and Fisheries and Armed Services

_______________________________________________________________________

                                 A BILL

 
 To improve the economy of the United States and promote the national 
  security interests of the United States by establishing a National 
   Shipbuilding Initiative to provide support for the United States 
 shipbuilding industry in order to assist that industry in regaining a 
significant share of the world commercial shipbuilding market, and for 
                            other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``National Shipbuilding and Conversion 
Act of 1993''.

               TITLE I--NATIONAL SHIPBUILDING INITIATIVE

SEC. 101. NATIONAL SHIPBUILDING INITIATIVE.

    (a) Establishment of Program.--There shall be a National 
Shipbuilding Initiative program, to be carried out to support the 
industrial base for national security objectives by assisting in the 
reestablishment of the United States shipbuilding industry as a self-
sufficient, internationally competitive industry.
    (b) Administering Departments.--The program shall be carried out--
            (1) by the Secretary of Defense, with respect to programs 
        under the jurisdiction of the Secretary of Defense; and
            (2) by the Secretary of Transportation, with respect to 
        programs under the jurisdiction of the Secretary of 
        Transportation.
    (c) Program Elements.--The National Shipbuilding Initiative shall 
consist of the following program elements:
            (1) Financial incentives program.--A financial incentives 
        program to provide loan guarantees to initiate commercial ship 
        construction for domestic and export sales, encourage shipyard 
        modernization, and support increased productivity, as provided 
        in title XI of the Merchant Marine Act, 1936 (as amended by 
        title II of this Act).
            (2) Technology development program.--A technology 
        development program, to be carried out within the Department of 
        Defense by the Advanced Research Projects Agency, to improve 
        the technology base for advanced shipbuilding technologies and 
        related dual-use technologies through activities including a 
        development program for innovative commercial ship design and 
        production processes and technologies.
            (3) Navy's affordability through commonality program.--
        Enhanced support by the Secretary of Defense for the 
        shipbuilding program of the Department of the Navy known as the 
        Affordability Through Commonality (ATC) program, to include 
        enhanced support (A) for the development of common modules for 
        military and commercial ships, and (B) to foster civil-military 
        integration into the next generation of Naval surface 
        combatants.
            (4) Navy's manufacturing technology and technology base 
        programs.--Enhanced support by the Secretary of Defense for, 
        and strengthened funding for, that portion of the Manufacturing 
        Technology program of the Navy, and that portion of the 
        Technology Base program of the Navy, that are in the areas of 
        shipbuilding technologies and ship repair technologies.

SEC. 102. DEPARTMENT OF DEFENSE PROGRAM MANAGEMENT THROUGH ADVANCED 
              RESEARCH PROJECTS AGENCY.

    The Secretary of Defense shall designate the Advanced Research 
Projects Agency of the Department of Defense as the lead agency of the 
Department of Defense for activities of the Department of Defense which 
are part of the National Shipbuilding Initiative program. Those 
activities shall be carried out as part of defense conversion 
activities of the Department of Defense.

SEC. 103. ADVANCED RESEARCH PROJECTS AGENCY FUNCTIONS.

    The Secretary of Defense, acting through the Director of the 
Advanced Research Projects Agency, shall carry out the following 
functions with respect to the National Shipbuilding Initiative program:
            (1) Consultation with the Maritime Administration, the 
        Office of Economic Adjustment, the National Economic Council, 
        the National Shipbuilding Research Project, the Coast Guard, 
        appropriate naval commands and activities, and other 
        appropriate Federal agencies on--
                    (A) development and transfer to the private sector 
                of dual-use shipbuilding technologies, ship repair 
                technologies, and shipbuilding management technologies;
                    (B) assessments of potential markets for maritime 
                product; and
                    (C) recommendation of industrial entities, 
                partnerships, joint ventures, or consortia for short- 
                and long-term manufacturing technology investment 
                strategies.
            (2) Funding and program management activities to develop 
        innovative design and production processes and the technologies 
        required to implement those processes.
            (3) Facilitation of industry and Government technology 
        development and technology transfer activities (including 
        education and training, market assessments, simulations, 
        hardware models and prototypes, and national and regional 
        industrial base studies).
            (4) Integration of promising technology advances made in 
        the Technology Reinvestment Program of the Advanced Research 
        Projects Agency into the National Shipbuilding Initiative to 
        effect full defense conversion potential.

SEC. 104. ELIGIBLE SHIPYARDS.

    To be eligible to receive any assistance or otherwise to 
participate in any program carried out under the National Shipbuilding 
Initiative, a shipyard must be a private shipyard located in the United 
States.

TITLE II--GUARANTEES OF OBLIGATIONS FOR VESSEL CONSTRUCTION AND UNITED 
                     STATES SHIPYARD MODERNIZATION

SEC. 201. LOAN GUARANTEES FOR EXPORT VESSELS.

    Title XI of the Merchant Marine Act, 1936 (46 App. U.S.C. 1271 et 
seq.) is amended as follows:
            (1) Eligible export vessel defined.--Section 1101 is 
        amended by adding at the end the following new subsection:
    ``(o) The term `eligible export vessel' means a vessel constructed, 
reconstructed, or reconditioned in the United States for use in world-
wide trade which will, upon delivery or redelivery, be placed under or 
continued to be documented under the laws of a country other than the 
United States.''.
            (2) Limitations on guarantee obligations.--Section 1103 is 
        amended--
                    (A) by amending the first sentence of subsection 
                (f) to read as follows: ``The aggregate unpaid 
                principal amount of the obligations guaranteed under 
                this section and outstanding at any one time shall not 
                exceed $12,000,000,000, of which (1) $850,000,000 shall 
                be limited to obligations pertaining to guarantees of 
                obligations for fishing vessels and fishery facilities 
                made under this title, and (2) $3,000,000,000 shall be 
                limited to obligations pertaining to guarantees of 
                obligations for eligible export vessels.''; and
                    (B) by adding at the end the following new 
                subsection:
    ``(g)(1) The Secretary may not issue a commitment to guarantee 
obligations for an eligible export vessel unless, after considering--
            ``(A) the status of pending applications for commitments to 
        guarantee obligations for vessels documented under the laws of 
        the United States and operating or to be operated in the 
        domestic or foreign commerce of the United States,
            ``(B) the economic soundness of the applications referred 
        to in subparagraph (A), and
            ``(C) the amount of guarantee authority available,
the Secretary determines, in the sole discretion of the Secretary, that 
the issuance of a commitment to guarantee obligations for an eligible 
export vessel will not result in the denial of an economically sound 
application to issue a commitment to guarantee obligations for vessels 
documented under the laws of the United States operating in the 
domestic or foreign commerce of the United States.
    ``(2) The Secretary may not issue commitments to guarantee 
obligations for eligible export vessels under this section after the 
later of--
            ``(A) the 5th anniversary of the date on which the 
        Secretary publishes final regulations setting forth the 
        application procedures for the issuance of commitments to 
        guarantee obligations for eligible export vessels,
            ``(B) the last day of any 5-year period in which funding 
        and guarantee authority for obligations for eligible export 
        vessels have been continuously available, or
            ``(C) the last date on which those commitments may be 
        issued under any treaty, convention, or other international 
        agreement entered into after the date of the enactment of the 
        Shipbuilding Conversion Act of 1993 that prohibits guarantee of 
        those obligations.''.
            (3) Authority to guarantee obligations for eligible export 
        vessels.--Section 1104A is amended--
                    (A) by amending so much of subsection (a)(1) as 
                precedes the proviso to read as follows:
            ``(1) financing, including reimbursement of an obligor for 
        expenditures previously made for, construction, reconstruction, 
        or reconditioning of a vessel or vessels owned by citizens of 
        the United States, or in the case of an eligible export vessel, 
        owned by either non-United States or by a citizen of the United 
        States, which are designed principally for research, or for 
        commercial use (A) in the coastwise or intercoastal trade; (B) 
        on the Great Lakes, or on bays, sounds, rivers, harbors, or 
        inland lakes of the United States; (C) in foreign trade as 
        defined in section 905 of this Act for purposes of title V of 
        this Act; or (D) as an ocean thermal energy conversion facility 
        or plantship; (E) with respect to floating drydocks in the 
        construction, reconstruction, reconditioning, or repair of 
        vessels; or (F) with respect to an eligible export vessel, in 
        world-wide trade;'';
                    (B) by amending subsection (b)(2)--
                            (i) by striking ``subject to the provisions 
                        of paragraph (1) of subsection (c) of this 
                        section,'' and inserting ``subject to the 
                        provisions of subsection (c)(1) and subsection 
                        (i),'', and
                            (ii) by adding at the end the following 
                        additional proviso: ``Provided, further That in 
                        the case of an eligible export vessel, such 
                        obligations may be in an aggregate principal 
                        amount which does not exceed 87\1/2\ percent of 
                        the actual cost or depreciated actual cost of 
                        the eligible export vessel.'';
                    (C) by amending subsection (b)(6) by inserting 
                after ``United States Coast Guard'' the following: 
                ``or, in the case of an eligible export vessel, of the 
                appropriate national flag authorities under a treaty, 
                convention, or other international agreement to which 
                the United States is a party'';
                    (D) by striking out all after the paragraph (2) in 
                subsection (d) and inserting the following new 
                paragraph:
            ``(3) No commitment to guarantee, or guarantee of an 
        obligation may be made by the Secretary under this title for 
        the construction, reconstruction or reconditioning of an 
        eligible export vessel unless--
                    ``(A) the Secretary finds that the construction, 
                reconstruction, or reconditioning of such eligible 
                export vessel will aid in the transition of United 
                States shipyards to commercial activities or will 
                preserve shipbuilding assets that would be essential in 
                time of war or national emergency, and
                    ``(B) the owner of the eligible export vessel 
                agrees with the Secretary that the vessel shall not be 
                transferred to any country designated by the Secretary 
                as a country whose interests are hostile to the 
                interests of the United States.''; and
                    (E) by adding at the end the following new 
                subsection:
    ``(i) The Secretary may not, with respect to--
            ``(1) the general 75 percent or less limitation in 
        subsection (b)(2);
            ``(2) the 87\1/2\ percent or less limitation in the 1st, 
        2nd, 4th, or 5th proviso to subsection (b)(2) or section 
        1111(b); or
            ``(3) the 80 percent or less limitation in the 3rd proviso 
        to such subsection;
establish by rule, regulation, or procedure any percentage within any 
such limitation that is, or is intended to be, applied uniformly to all 
guarantees or commitments to guarantee made under this section that are 
subject to the limitation.''.
            (4) Limitation on authority to establish uniform percentage 
        limitation.--Section 1104B is amended by adding at the end of 
        subsection (b) the following flush sentence:
``The Secretary may not by rule, regulation, or procedure establish any 
percentage within the 87\1/2\ percent or less limitation in paragraph 
(2) that is, or is intended to be, applied uniformly to all guarantees 
or commitments to guarantee made under this section.''.
            (5) Conforming amendment.--Section 1103(a) is amended in 
        the first sentence by striking ``, upon application by a 
        citizen of the United States,''.

SEC. 202. LOAN GUARANTEES FOR SHIPYARD MODERNIZATION AND IMPROVEMENT.

    (a) In General.--Title XI of the Merchant Marine Act, 1936, is 
further amended by adding at the end the following new section:
    ``Sec. 1111. (a) The Secretary, under section 1103(a) and subject 
to the terms the Secretary shall prescribe, may guarantee or make a 
commitment to guarantee the payment of the principal of, and the 
interest on, an obligation for advanced shipbuilding technology and 
modern shipbuilding technology of a general shipyard facility located 
in the United States.
    ``(b) Guarantees or commitments to guarantee under this section are 
subject to the extent applicable to all the laws requirements, 
regulations, and procedures that apply to guarantees or commitments to 
guarantee made under this title, except that guarantees or commitments 
to guarantee made under this section may be in the aggregate principal 
amount that does not exceed 87\1/2\ percent of the actual cost of the 
advanced shipbuilding technology or modern shipbuilding technology.
    ``(c) The Secretary may accept the transfer of funds from any other 
department, agency, or instrumentality of the United States Government 
and may use those funds to make guarantees or commitments to guarantee 
loans entered into under this section.
    ``(d) For purposes of this section:
            ``(1) The term `advanced shipbuilding technology' 
        includes--
                    ``(A) numerically controlled machine tools, robots, 
                automated process control equipment, computerized 
                flexible manufacturing systems, associated computer 
                software, and other technology for improving 
                shipbuilding and related industrial production which 
                advance the state-of-the-art; and
                    ``(B) novel techniques and processes designed to 
                improve shipbuilding quality, productivity, and 
                practice, and to promote sustainable development, 
                including engineering design, quality assurance, 
                concurrent engineering, continuous process production 
                technology, energy efficiency, waste minimization, 
                design for recyclability or parts reuse, inventory 
                management, upgraded worker skills, and communications 
                with customers and suppliers.
            ``(2) The term `modern shipbuilding technology' means the 
        best available proven technology, techniques, and processes 
        appropriate to enhancing the productivity of shipyards.
            ``(3) The term `general shipyard facility' means--
                    ``(A) for operations on land--
                            ``(i) any structure or appurtenance thereto 
                        designed for the construction, repair, 
                        rehabilitation, refurbishment or rebuilding of 
                        any vessel (as defined in title 1, United 
                        States Code) and including graving docks, 
                        building ways, ship lifts, wharves, and pier 
                        cranes;
                            ``(ii) the land necessary for any structure 
                        or appurtenance described in clause (i); and
                            ``(iii) equipment that is for the use in 
                        connection with any structure or appurtenance 
                        and that is necessary for the performance of 
                        any function referred to in subparagraph (A);
                    ``(B) for operations other than on land, any 
                vessel, floating drydock or barge built in the United 
                States and used for, equipped to be used for, or of a 
                type that is normally used for activities referred to 
                in subparagraph (A)(i) of this paragraph.''.
    (b) Conforming Amendment.--Section 1101(n) of that Act (46 App. 
U.S.C. 1271(n)) is amended by striking ``vessels.'' and inserting 
``vessels and general shipyard facilities (as defined in section 
1111(d)(3)).''.

SEC. 203. AUTHORIZATIONS OF APPROPRIATIONS.

    (a) Authorization of Appropriations to Department of Defense.--
There is authorized to be appropriated to the Secretary of Defense for 
fiscal year 1994 the sum of $200,000,000, which shall be available only 
for transfer to the Secretary of Transportation and of which--
            (1) $175,000,000 shall be available only for costs (as 
        defined in section 502 of the Federal Credit Reform Act of 1990 
        (2 U.S.C. 661a)) of new loan guarantee commitments under 
        section 1104A(a)(1) of the Merchant Marine Act, 1936 (46 App. 
        U.S.C. 1274(a)(1)), as amended by section 201, for--
                    (A) eligible export vessels; and
                    (B) vessels in any series of vessels for which a 
                series construction agreement is entered into by the 
                Secretary under section 305 of this Act; and
            (2) $25,000,000 shall be available only for costs (as 
        defined in section 502 of the Federal Credit Reform Act of 
        1990) of new loan guarantee commitments under section 1111 of 
        the Merchant Marine Act, 1936, as added by section 202.
    (b) Authorizations for Department of Transportation.--There is 
authorized to be appropriated to the Secretary of Transportation for 
fiscal year 1994 the sum of $10,000,000 to pay administrative costs 
related to new loan guarantee commitments described in subsection (a), 
of which--
            (1) $8,000,000 shall be for administrative costs related to 
        new loan guarantee commitments described in paragraph (1) of 
        that subsection; and
            (2) $2,000,000 shall be for administrative costs related to 
        new loan guarantee commitments described in paragraph (2) of 
        that subsection.
    (c) Availablity of Amounts.--Amounts appropriated under the 
authority of this section shall remain available until expended.
    (d) Transfer to Secretary of Transportation.--Subject to the 
provisions of appropriations Acts, amounts appropriated under the 
authority of subsection (a) shall be transferred to the Secretary of 
Transportation for use as described in that subsection. Any such 
transfer shall be made not later than 90 days after the date of the 
enactment of an Act appropriating the funds to be transferred.

               TITLE III--SERIES CONSTRUCTION ASSISTANCE

SEC. 301. PAYMENT OF ASSISTANCE AUTHORIZED.

    (a) In General.--The Secretary of Defense may, subject to the 
availability of appropriations, pay assistance in accordance with this 
title to the owner of a shipyard that is located in the United States 
for the construction (including outfitting and equipping) of any 
commercial vessel that is one of a series of vessels for which payment 
of assistance under this section to the owner is approved by the 
Secretary under section 302.
    (b) Amount of Assistance.--The total amount of assistance paid 
under this section with respect to a vessel shall be equal to the 
series transition payment determined for the vessel under section 
303(a).

SEC. 302. APPROVAL OF ASSISTANCE FOR CONSTRUCTION OF SERIES OF VESSELS.

    (a) Approval of Assistance.--
            (1) In general.--The Secretary of Defense may approve 
        payment of assistance under section 301 for construction of a 
        series of vessels in a shipyard if--
                    (A) the owner of the shipyard submits an 
                application for that assistance in accordance with 
                section 305;
                    (B) the Secretary of Transportation makes the 
                determinations described in subsection (b); and
                    (C) the Secretary of Defense determines that 
                payment of the assistance will contribute to 
                maintaining national vessel construction capabilities 
                that are essential in time of war or national 
                emergency.
            (2) Limitation.--The Secretary of Defense may not approve 
        assistance under this section for a series of vessels if the 
        series transition payment determined under section 303(a) for 
        any vessel in the series is greater than 50 percent of the 
        estimate of the cost of constructing the vessel determined by 
        the Secretary of Defense under section 303(b)(2).
    (b) Determinations by Secretary of Transportation.--The Secretary 
of Defense may not approve assistance for construction of a series of 
vessels in a shipyard unless the Secretary of Transportation has 
determined the following:
            (1) Vessel requirements.--The vessels are--
                    (A) commercial vessels of at least 10,000 gross 
                tons; and
                    (B) commercially marketable on the international 
                market.
            (2) Shipyard requirements.--The shipyard in which the 
        vessels will be constructed--
                    (A) is located in the United States; and
                    (B) upon completion of construction of the vessels, 
                will be capable of constructing additional vessels of 
                the same type as those in the series for a price that 
                is competitive in the international market.
            (3) Applicant requirements.--The applicant for the 
        assistance--
                    (A) has the ability, financial resources, and other 
                qualifications necessary for construction of the 
                vessels;
                    (B) has entered into a contract for the 
                construction of each of the first 2 vessels to be 
                constructed in the series, which may include a contract 
                for a vessel that will be constructed without 
                assistance under this title; and
                    (C) is the owner of the shipyard in which the 
                vessels will be constructed.
            (4) Contract requirements.--Each of the contracts required 
        under paragraph (3)(B) are binding obligations on the applicant 
        and all other parties to the contracts, except that such a 
        contract may be contingent on--
                    (A) the approval of assistance under this title for 
                construction of a vessel under the contract; and
                    (B) the making of a guarantee or commitment to 
                guarantee obligations under title XI of the Merchant 
                Marine Act, 1936 (46 App. U.S.C. 1273), as amended by 
                this Act, for construction under the contract.
            (5) Purchaser requirements.--Each person that is a 
        purchaser of a vessel under a contract required under paragraph 
        (3)(B)--
                    (A) has the ability, financial resources, and other 
                qualifications necessary to own and operate the vessel 
                in commercial service; and
                    (B) is a party to the contract.
            (6) Series transition payment.--The series transition 
        payment under section 303 for each vessel in the series.
    (c) Priority for Certain Series of Vessels.--In approving 
assistance under this title, the Secretary of Defense may give priority 
to a series of vessels--
            (1) if a smaller number of vessels in the series are 
        required to be constructed with assistance before construction 
        of that type of vessel becomes cost effective;
            (2) for which the total of the series transition payments 
        determined under section 303 for all vessels in the series is 
        less than that total for other series of vessels for which 
        applications are submitted for assistance under this title;
            (3) that will be constructed in a shipyard with respect to 
        which assistance under this title has not been provided; or
            (4) that would contribute to the preservation of a shipyard 
        that would be essential in a time of war or national emergency.

SEC. 303. DETERMINATION OF SERIES TRANSITION PAYMENTS.

    (a) In General.--The Secretary of Transportation shall determine 
the series transition payment for each vessel in a series of vessels 
for which an application for assistance under this title is received by 
the Secretary of Defense.
    (b) Amount of Series Transition Payment.--The series transition 
payment for a vessel under subsection (a) is equal to the difference 
of--
            (1) the estimated cost of completing construction of the 
        vessel, as included in the application for assistance submitted 
        under section 305; minus
            (2) a reasonable estimate of the cost of constructing the 
        vessel under similar plans and specifications in a foreign 
        shipyard that is considered by the Secretary of Transportation 
        to be a fair and representative example for purposes of 
        determining the payment.

SEC. 304. SERIES CONSTRUCTION AGREEMENT.

    (a) In General.--
            (1) In general.--The Secretary of Defense shall, for each 
        series of vessels for which assistance is approved under 
        section 302, enter into a series construction agreement with 
        the owner of the shipyard in which the series of vessels will 
        be constructed, under which the Secretary is required to pay 
        the owner assistance in accordance with a schedule established 
        under paragraph (2).
            (2) Schedule for payments.--An agreement under this 
        subsection shall establish a schedule for the payment of 
        assistance under the agreement, that is based on the 
        construction schedule for vessels for which the assistance is 
        paid.
            (3) Termination of agreement.--An agreement under this 
        subsection shall authorize the Secretary of Defense to 
        terminate the agreement if--
                    (A) a contract required under section 302(b)(3)(B) 
                is terminated by the purchaser of the vessel under the 
                contract, and the owner of the shipyard does not enter 
                into a new contract for construction of the vessel 
                within a period which shall be specified in the 
                agreement; or
                    (B) the owner of the shipyard fails to enter into 
                contracts for construction of all vessels in the series 
                of vessels to which the agreement applies, within a 
                period which shall be specified in the agreement.
            (4) Continuing effect of agreement with respect to vessels 
        covered by contracts.--The termination of a series construction 
        agreement under paragraph (3) shall not affect the 
        effectiveness of the agreement with respect to vessels for 
        which a construction contract is in effect on the date of 
        termination.
    (b) Binding Obligation of the United States.--
            (1) In general.--Except as provided in paragraph (2), a 
        requirement that the Secretary of Defense make payments under a 
        series construction agreement under subsection (a) shall 
        constitute a binding obligation of the United States.
            (2) Termination of obligation.--If the Secretary of Defense 
        terminates a series construction agreement pursuant to 
        subsection (a)(3), the obligation of the United States under 
        paragraph (1) to make payments under the agreement shall 
        terminate with respect to vessels for which no construction 
        contract is in effect on the date of termination of the 
        agreement.
            (3) Continuing availability of amounts.--Amounts to be used 
        to liquidate an obligation under paragraph (1) that terminates 
        under paragraph (2) shall remain available to the Secretary of 
        Defense for the payment of assistance under this title.

SEC. 305. APPLICATIONS FOR ASSISTANCE.

    (a) Submittal.--A person desiring assistance under this title 
shall, in accordance with this section, submit an application to the 
Secretary of Defense.
    (b) Contents of application.--An application for assistance under 
this title with respect to a series of vessels shall include the 
following:
            (1) A detailed description of the type of vessels included 
        in the series, including plans and specifications for the 
        vessels.
            (2) Detailed estimates of the cost of completing 
        construction of each of the vessels in the series, including 
        such estimates from subcontractors for the construction as may 
        be required by the Secretary of Defense.
            (3) Copies of the contracts required under section 
        302(b)(3)(B).
            (4) Other information required by the Secretary to fulfill 
        the requirements of this title.
    (c) Transmittal to Secretary of Transportation.--The Secretary of 
Defense shall transmit a copy of each application submitted under this 
section to the Secretary of Transportation.
    (d) Regulations.--The Secretary of Defense shall issue regulations 
setting forth the procedures for submitting an application for 
assistance under this title.

SEC. 306. RESTRICTION ON VESSEL OPERATIONS.

    A vessel for which assistance is paid under this title--
            (1) may be operated only in foreign trade or domestic trade 
        authorized under a registry endorsement for the vessel issued 
        under section 12105 of title 46, United States Code; and
            (2) may not be operated in the coastwise trade of the 
        United States (including mixed coastwise and foreign trade), 
        except coastwise trade authorized under a registry endorsement 
        for the vessel issued under section 12105 of title 46, United 
        States Code.

SEC. 307. TERMINATION OF AUTHORITY TO PROVIDE NEW ASSISTANCE.

    The Secretary of Defense may not under section 302 approve the 
payment of assistance under section 301, and may not enter into any 
series construction agreement under section 305, after--
            (1) the 5th anniversary of the date on which the Secretary 
        publishes final regulations setting forth the procedures for 
        submitting an application for that assistance,
            (2) the last day of any 5-year period in which amounts have 
        been continuously available for paying that assistance, or
            (3) the last date on which that assistance may be paid 
        under any treaty, convention, or other international agreement 
        entered into after the date of the enactment of this Act that 
        prohibits that payment.

 TITLE IV--DOUBLE HULL REQUIREMENT FOR TANKERS CHARTERED BY DEPARTMENT 
                               OF DEFENSE

SEC. 401. DOUBLE-HULL TANKER CHARTERS.

    Section 2401 of title 10, United States Code, is amended by adding 
at the end the following new subsection:
    ``(g) After December 31, 1994, the Secretary of Defense may not 
enter into, renew, or extend a contract for the charter of a tanker 
unless the tanker--
            ``(1) is built in a shipyard located in the United States 
        under a contract entered into after October 1, 1993;
            ``(2) is equipped with a double hull that satisfies the 
        requirements applicable under section 3703a of title 46 without 
        regard to subsection (c) of that section; and
            ``(3) is chartered under the contract for a period of at 
        least 10 years.''.

SEC. 402. PROHIBITION ON ENTERING INTO, RENEWING, OR EXTENDING CERTAIN 
              CHARTERS FOR TANKERS.

    Notwithstanding any other law, between the date of the enactment of 
this Act, and January 1, 1995, the Secretary of Defense may not enter 
into, renew, or extend a contract for a charter of a tanker that 
expires after December 31, 1994. The Secretary shall cancel any 
contract or contract provision that was entered into, renewed, or 
extended during the period beginning on June 30, 1993, and ending on 
the date of the enactment of this Act for a charter of a tanker that 
expires after December 31, 1994.

SEC. 403. TANKER DEFINED.

    In this title, the term ``tanker'' has the meaning given that term 
in section 2101 of title 46, United States Code.

                                 <all>

HR 2547 IH----2
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