H. R. 1588—379
(iii) inserted after section 4453, as added by
subparagraph (A).
(C) FISCAL
YEAR
1999.—Section 3135 of the Strom
Thurmond National Defense Authorization Act for Fiscal
Year 1999 (Public Law 105–261; 112 Stat. 2248), is—
(i) transferred to title XLIV of the Bob Stump
National Defense Authorization Act for Fiscal Year
2003, as amended by this subsection;
(ii) redesignated as section 4453B; and
(iii) inserted after section 4453A, as added by
subparagraph (B).
(D) FISCAL YEAR 1998.—Subsection (b) of section 3136
of the National Defense Authorization Act for Fiscal Year
1998 (Public Law 105–85; 111 Stat. 2038), is—
(i) transferred to title XLIV of the Bob Stump
National Defense Authorization Act for Fiscal Year
2003, as amended by this subsection;
(ii) inserted after section 4453B, as added by
subparagraph (C); and
(iii) amended—
(I) by inserting before the text the following
new section heading:
‘‘SEC. 4453C. CONTINUATION OF PROCESSING, TREATMENT, AND DIS-
POSAL OF LEGACY NUCLEAR MATERIALS.’’;
and
(II) by striking ‘‘(b) REQUIREMENT FOR CON-
TINUING
OPERATIONS
AT
SAVANNAH
RIVER
SITE.—’’.
(E) FISCAL YEAR 1997.—Subsection (f) of section 3142
of the National Defense Authorization Act for Fiscal Year
1997 (Public Law 104–201; 110 Stat. 2836), is—
(i) transferred to title XLIV of the Bob Stump
National Defense Authorization Act for Fiscal Year
2003, as amended by this subsection;
(ii) inserted after section 4453C, as added by
subparagraph (D); and
(iii) amended—
(I) by inserting before the text the following
new section heading:
‘‘SEC. 4453D. CONTINUATION OF PROCESSING, TREATMENT, AND DIS-
POSAL OF LEGACY NUCLEAR MATERIALS.’’;
(II) by striking ‘‘(f) REQUIREMENT FOR CON-
TINUING OPERATIONS AT SAVANNAH RIVER SITE.—
The Secretary’’ and inserting ‘‘The Secretary of
Energy’’; and
(III) by striking ‘‘subsection (e)’’ and inserting
‘‘section 4452’’.
(24) LIMITATION ON USE OF FUNDS FOR DECOMMISSIONING
F–CANYON FACILITY.—Subsection (b) of section 3137 of the Floyd
D. Spence National Defense Authorization Act for Fiscal Year
2001 (as enacted into law by Public Law 106–398; 114 Stat.
1654A–460), is—
(A) transferred to title XLIV of the Bob Stump National
Defense Authorization Act for Fiscal Year 2003, as
amended by this subsection;
H. R. 1588—380
(B) inserted after section 4453D, as added by para-
graph (23)(E); and
(C) amended—
(i) by inserting before the text the following new
section heading:
‘‘SEC. 4454. LIMITATION ON USE OF FUNDS FOR DECOMMISSIONING
F–CANYON FACILITY.’’;
(ii) by striking ‘‘(b) LIMITATION ON USE OF FUNDS
FOR DECOMMISSIONING F–CANYON FACILITY.—’’;
(iii) by striking ‘‘this or any other Act’’ and
inserting ‘‘the Floyd D. Spence National Defense
Authorization Act for Fiscal Year 2001 (as enacted
into law by Public Law 106–398) or any other Act’’;
and
(iv) by striking ‘‘the Secretary’’ in the matter pre-
ceding paragraph (1) and inserting ‘‘the Secretary of
Energy’’.
(h) SAFEGUARDS AND SECURITY MATTERS.—
(1) HEADINGS.—Division D of the Bob Stump National
Defense Authorization Act for Fiscal Year 2003, as amended
by this section, is further amended by adding at the end the
following new headings:
‘‘TITLE XLV—SAFEGUARDS AND
SECURITY MATTERS
‘‘Subtitle A—Safeguards and Security’’.
(2) PROHIBITION ON INTERNATIONAL INSPECTIONS OF FACILI-
TIES WITHOUT PROTECTION OF RESTRICTED DATA.—Section 3154
of the National Defense Authorization Act for Fiscal Year 1996
(Public Law 104–106; 110 Stat. 624), is—
(A) transferred to title XLV of the Bob Stump National
Defense Authorization Act for Fiscal Year 2003, as added
by paragraph (1);
(B) redesignated as section 4501;
(C) inserted after the heading for subtitle A of such
title, as so added; and
(D) amended—
(i) by striking ‘‘(1) The’’ and inserting ‘‘The’’; and
(ii) by striking ‘‘(2) For purposes of paragraph (1),’’
and inserting ‘‘(c) RESTRICTED DATA DEFINED.—In this
section,’’.
(3) RESTRICTIONS ON ACCESS TO LABORATORIES BY FOREIGN
VISITORS
FROM
SENSITIVE
COUNTRIES.—Section 3146 of the
National Defense Authorization Act for Fiscal Year 2000 (Public
Law 106–65; 113 Stat. 935), is—
(A) transferred to title XLV of the Bob Stump National
Defense Authorization Act for Fiscal Year 2003, as
amended by this subsection;
(B) redesignated as section 4502;
(C) inserted after section 4501, as added by paragraph
(2); and
(D) amended—
(i) in subsection (b)(2)—
H. R. 1588—381
(I) in the matter preceding subparagraph (A),
by striking ‘‘30 days after the date of the enact-
ment of this Act’’ and inserting ‘‘on November 4,
1999,’’; and
(II) in subparagraph (A), by striking ‘‘The date
that is 90 days after the date of the enactment
of this Act’’ and inserting ‘‘January 3, 2000’’;
(ii) in subsection (d)(1), by striking ‘‘the date of
the enactment of this Act,’’ and inserting ‘‘October
5, 1999,’’; and
(iii) in subsection (g), by adding at the end the
following new paragraphs:
‘‘(3) The term ‘national laboratory’ means any of the fol-
lowing:
‘‘(A) Lawrence Livermore National Laboratory, Liver-
more, California.
‘‘(B) Los Alamos National Laboratory, Los Alamos, New
Mexico.
‘‘(C) Sandia National Laboratories, Albuquerque, New
Mexico and Livermore, California.
‘‘(4) The term ‘Restricted Data’ has the meaning given
that term in section 11 y. of the Atomic Energy Act of 1954
(42 U.S.C. 2014(y)).’’.
(4) BACKGROUND INVESTIGATIONS ON CERTAIN PERSONNEL.—
Section 3143 of the National Defense Authorization Act for
Fiscal Year 2000 (Public Law 106–65; 113 Stat. 934), is—
(A) transferred to title XLV of the Bob Stump National
Defense Authorization Act for Fiscal Year 2003, as
amended by this subsection;
(B) redesignated as section 4503;
(C) inserted after section 4502, as added by paragraph
(3); and
(D) amended—
(i) in subsection (b), by striking ‘‘the date of the
enactment of this Act’’ and inserting ‘‘October 5, 1999,’’;
and
(ii) by adding at the end the following new sub-
section:
‘‘(c) DEFINITIONS.—In this section, the terms ‘national labora-
tory’ and ‘Restricted Data’ have the meanings given such terms
in section 4502(g).’’.
(5) COUNTERINTELLIGENCE POLYGRAPH PROGRAM.—
(A) DEPARTMENT
OF
ENERGY
COUNTERINTELLIGENCE
POLYGRAPH
PROGRAM.—Section 3152 of the National
Defense Authorization Act for Fiscal Year 2002 (Public
Law 107–107; 115 Stat. 1376), is—
(i) transferred to title XLV of the Bob Stump
National Defense Authorization Act for Fiscal Year
2003, as amended by this subsection;
(ii) redesignated as section 4504;
(iii) inserted after section 4503, as added by para-
graph (4); and
(iv) amended in subsection (c) by striking ‘‘section
3154 of the Department of Energy Facilities Safe-
guards, Security, and Counterintelligence Enhance-
ment Act of 1999 (subtitle D of title XXXI of Public
H. R. 1588—382
Law 106–65; 42 U.S.C. 7383h)’’ and inserting ‘‘section
4504A’’.
(B) COUNTERINTELLIGENCE POLYGRAPH PROGRAM.—Sec-
tion 3154 of the National Defense Authorization Act for
Fiscal Year 2000 (Public Law 106–65; 113 Stat. 941), as
amended by section 3135 of the Floyd D. Spence National
Defense Authorization Act for Fiscal Year 2001 (as enacted
into law by Public Law 106–398; 114 Stat. 1654A–456),
is—
(i) transferred to title XLV of the Bob Stump
National Defense Authorization Act for Fiscal Year
2003, as amended by this subsection;
(ii) redesignated as section 4504A;
(iii) inserted after section 4504, as added by
subparagraph (A); and
(iv) amended in subsection (h) by striking ‘‘180
days after the date of the enactment of this Act,’’
and inserting ‘‘April 5, 2000,’’.
(6) NOTICE OF SECURITY AND COUNTERINTELLIGENCE FAIL-
URES.—Section 3150 of the National Defense Authorization Act
for Fiscal Year 2000 (Public Law 106–65; 113 Stat. 939), is—
(A) transferred to title XLV of the Bob Stump National
Defense Authorization Act for Fiscal Year 2003, as
amended by this subsection;
(B) redesignated as section 4505; and
(C) inserted after section 4504A, as added by paragraph
(5)(B).
(7) ANNUAL REPORT ON SECURITY FUNCTIONS AT NUCLEAR
WEAPONS
FACILITIES.—Section 3162 of the National Defense
Authorization Act for Fiscal Year 1998 (Public Law 105–85;
111 Stat. 2049), is—
(A) transferred to title XLV of the Bob Stump National
Defense Authorization Act for Fiscal Year 2003, as
amended by this subsection;
(B) redesignated as section 4506;
(C) inserted after section 4505, as added by paragraph
(6); and
(D) amended in subsection (b) by inserting ‘‘of the
National Defense Authorization Act for Fiscal Year 1998
(Public Law 105–85; 111 Stat. 2048; 42 U.S.C. 7251 note)’’
after ‘‘section 3161’’.
(8) REPORT ON COUNTERINTELLIGENCE AND SECURITY PRAC-
TICES AT LABORATORIES.—Section 3152 of the National Defense
Authorization Act for Fiscal Year 2000 (Public Law 106–65;
113 Stat. 940), is—
(A) transferred to title XLV of the Bob Stump National
Defense Authorization Act for Fiscal Year 2003, as
amended by this subsection;
(B) redesignated as section 4507;
(C) inserted after section 4506, as added by paragraph
(7); and
(D) amended by adding at the end the following new
subsection:
‘‘(c) NATIONAL LABORATORY DEFINED.—In this section, the term
‘national laboratory’ has the meaning given that term in section
4502(g)(3).’’.
H. R. 1588—383
(9) REPORT
ON
SECURITY
VULNERABILITIES
OF
NATIONAL
LABORATORY COMPUTERS.—Section 3153 of the National Defense
Authorization Act for Fiscal Year 2000 (Public Law 106–65;
113 Stat. 940), is—
(A) transferred to title XLV of the Bob Stump National
Defense Authorization Act for Fiscal Year 2003, as
amended by this subsection;
(B) redesignated as section 4508;
(C) inserted after section 4507, as added by paragraph
(8); and
(D) amended by adding at the end the following new
subsection:
‘‘(f) NATIONAL LABORATORY DEFINED.—In this section, the term
‘national laboratory’ has the meaning given that term in section
4502(g)(3).’’.
(10) SUBTITLE HEADING ON CLASSIFIED INFORMATION.—Title
XLV of the Bob Stump National Defense Authorization Act
for Fiscal Year 2003, as amended by this subsection, is further
amended by adding at the end the following new subtitle
heading:
‘‘Subtitle B—Classified Information’’.
(11) REVIEW OF CERTAIN DOCUMENTS BEFORE DECLASSIFICA-
TION
AND
RELEASE.—Section 3155 of the National Defense
Authorization Act for Fiscal Year 1996 (Public Law 104–106;
110 Stat. 625), is—
(A) transferred to title XLV of the Bob Stump National
Defense Authorization Act for Fiscal Year 2003, as
amended by this subsection;
(B) redesignated as section 4521; and
(C) inserted after the heading for subtitle B of such
title, as added by paragraph (10).
(12) PROTECTION
AGAINST
INADVERTENT
RELEASE
OF
RESTRICTED DATA AND FORMERLY RESTRICTED DATA.—Section
3161 of the Strom Thurmond National Defense Authorization
Act for Fiscal Year 1999 (Public Law 105–261; 112 Stat. 2259),
as amended by section 1067(3) of the National Defense
Authorization Act for Fiscal Year 2000 (Public Law 106–65;
113 Stat. 774) and section 3193 of the Floyd D. Spence National
Defense Authorization Act for Fiscal Year 2001 (as enacted
into law by Public Law 106–398; 114 Stat. 1654A–480), is—
(A) transferred to title XLV of the Bob Stump National
Defense Authorization Act for Fiscal Year 2003, as
amended by this subsection;
(B) redesignated as section 4522;
(C) inserted after section 4521, as added by paragraph
(11); and
(D) amended—
(i) in subsection (c)(1), by striking ‘‘the date of
the enactment of this Act’’ and inserting ‘‘October 17,
1998,’’;
(ii) in subsection (f)(1), by striking ‘‘the date of
the enactment of this Act’’ and inserting ‘‘October 17,
1998’’; and
H. R. 1588—384
(iii) in subsection (f)(2), by striking ‘‘The Secretary’’
and inserting ‘‘Commencing with inadvertent releases
discovered on or after October 30, 2000, the Secretary’’.
(13) SUPPLEMENT
TO
PLAN
FOR
DECLASSIFICATION
OF
RESTRICTED DATA AND FORMERLY RESTRICTED DATA.—Section
3149 of the National Defense Authorization Act for Fiscal Year
2000 (Public Law 106–65; 113 Stat. 938), is—
(A) transferred to title XLV of the Bob Stump National
Defense Authorization Act for Fiscal Year 2003, as
amended by this subsection;
(B) redesignated as section 4523;
(C) inserted after section 4522, as added by paragraph
(12); and
(D) amended—
(i) in subsection (a), by striking ‘‘subsection (a)
of section 3161 of the Strom Thurmond National
Defense Authorization Act for Fiscal Year 1999 (Public
Law 105–261; 112 Stat. 2260; 50 U.S.C. 435 note)’’
and inserting ‘‘subsection (a) of section 4522’’;
(ii) in subsection (b)—
(I) by striking ‘‘section 3161(b)(1) of that Act’’
and inserting ‘‘subsection (b)(1) of section 4522’’;
and
(II) by striking ‘‘the date of the enactment
of that Act’’ and inserting ‘‘October 17, 1998,’’;
(iii) in subsection (c)—
(I) by striking ‘‘section 3161(c) of that Act’’
and inserting ‘‘subsection (c) of section 4522’’; and
(II) by striking ‘‘section 3161(a) of that Act’’
and inserting ‘‘subsection (a) of such section’’; and
(iv) in subsection (d), by striking ‘‘section 3161(d)
of that Act’’ and inserting ‘‘subsection (d) of section
4522’’.
(14) PROTECTION OF CLASSIFIED INFORMATION DURING LAB-
ORATORY-TO-LABORATORY
EXCHANGES.—Section 3145 of the
National Defense Authorization Act for Fiscal Year 2000 (Public
Law 106–65; 113 Stat. 935), is—
(A) transferred to title XLV of the Bob Stump National
Defense Authorization Act for Fiscal Year 2003, as
amended by this subsection;
(B) redesignated as section 4524; and
(C) inserted after section 4523, as added by paragraph
(13).
(15) IDENTIFICATION IN BUDGETS OF AMOUNT FOR DECLAS-
SIFICATION ACTIVITIES.—Section 3173 of the National Defense
Authorization Act for Fiscal Year 2000 (Public Law 106–65;
113 Stat. 949), is—
(A) transferred to title XLV of the Bob Stump National
Defense Authorization Act for Fiscal Year 2003, as
amended by this subsection;
(B) redesignated as section 4525;
(C) inserted after section 4524, as added by paragraph
(14); and
(D) amended in subsection (b) by striking ‘‘the date
of the enactment of this Act’’ and inserting ‘‘October 5,
1999,’’.
H. R. 1588—385
(16) SUBTITLE HEADING ON EMERGENCY RESPONSE.—Title
XLV of the Bob Stump National Defense Authorization Act
for Fiscal Year 2003, as amended by this subsection, is further
amended by adding at the end the following new subtitle
heading:
‘‘Subtitle C—Emergency Response’’.
(17) RESPONSIBILITY FOR DEFENSE PROGRAMS EMERGENCY
RESPONSE
PROGRAM.—Section 3158 of the National Defense
Authorization Act for Fiscal Year 1996 (Public Law 104–106;
110 Stat. 626), is—
(A) transferred to title XLV of the Bob Stump National
Defense Authorization Act for Fiscal Year 2003, as
amended by this subsection;
(B) redesignated as section 4541; and
(C) inserted after the heading for subtitle C of such
title, as added by paragraph (16).
(i) PERSONNEL MATTERS.—
(1) HEADINGS.—Division D of the Bob Stump National
Defense Authorization Act for Fiscal Year 2003, as amended
by this section, is further amended by adding at the end the
following new headings:
‘‘TITLE XLVI—PERSONNEL MATTERS
‘‘Subtitle A—Personnel Management’’.
(2) AUTHORITY FOR APPOINTMENT OF CERTAIN SCIENTIFIC,
ENGINEERING, AND TECHNICAL PERSONNEL.—Section 3161 of the
National Defense Authorization Act for Fiscal Year 1995 (Public
Law 103–337; 108 Stat. 3095), as amended by section 3139
of the National Defense Authorization Act for Fiscal Year 1998
(Public Law 105–85; 111 Stat. 2040), sections 3152 and 3155
of the Strom Thurmond National Defense Authorization Act
for Fiscal Year 1999 (Public Law 105–261; 112 Stat. 2253,
2257), and section 3191 of the Floyd D. Spence National Defense
Authorization Act for Fiscal Year 2001 (as enacted into law
by Public Law 106–398; 114 Stat. 1654A–480), is—
(A) transferred to title XLVI of the Bob Stump National
Defense Authorization Act for Fiscal Year 2003, as added
by paragraph (1);
(B) redesignated as section 4601; and
(C) inserted after the heading for subtitle A of such
title, as so added.
(3) WHISTLEBLOWER PROTECTION PROGRAM.—Section 3164
of the National Defense Authorization Act for Fiscal Year 2000
(Public Law 106–65; 113 Stat. 946), is—
(A) transferred to title XLVI of the Bob Stump National
Defense Authorization Act for Fiscal Year 2003, as
amended by this subsection;
(B) redesignated as section 4602;
(C) inserted after section 4601, as added by paragraph
(2); and
H. R. 1588—386
(D) amended in subsection (n) by striking ‘‘60 days
after the date of the enactment of this Act,’’ and inserting
‘‘December 5, 1999,’’.
(4) EMPLOYEE
INCENTIVES
FOR
WORKERS
AT
CLOSURE
PROJECT
FACILITIES.—Section 3136 of the Floyd D. Spence
National Defense Authorization Act for Fiscal Year 2001 (as
enacted into law by Public Law 106–398; 114 Stat. 1654A–
458), is—
(A) transferred to title XLVI of the Bob Stump National
Defense Authorization Act for Fiscal Year 2003, as
amended by this subsection;
(B) redesignated as section 4603;
(C) inserted after section 4602, as added by paragraph
(3); and
(D) amended—
(i) in subsections (c) and (i)(1)(A), by striking ‘‘sec-
tion 3143 of the National Defense Authorization Act
for Fiscal Year 1997 (42 U.S.C. 7274n)’’ and inserting
‘‘section 4421’’; and
(ii) in subsection (g), by striking ‘‘section 3143(h)
of the National Defense Authorization Act for Fiscal
Year 1997’’ and inserting ‘‘section 4421(h)’’.
(5) DEFENSE NUCLEAR FACILITY WORKFORCE RESTRUCTURING
PLAN.—Section 3161 of the National Defense Authorization Act
for Fiscal Year 1993 (Public Law 102–484; 106 Stat. 2644),
as amended by section 1070(c)(2) of the National Defense
Authorization Act for Fiscal Year 1995 (Public Law 103–337;
108 Stat. 2857), Public Law 105–277 (112 Stat. 2681–419, 2681–
430), and section 1048(h)(1) of the National Defense Authoriza-
tion Act for Fiscal Year 2002 (Public Law 107–107; 115 Stat.
1229), is—
(A) transferred to title XLVI of the Bob Stump National
Defense Authorization Act for Fiscal Year 2003, as
amended by this subsection;
(B) redesignated as section 4604;
(C) inserted after section 4603, as added by paragraph
(4); and
(D) amended—
(i) in subsection (a), by striking ‘‘(hereinafter in
this subtitle referred to as the ‘Secretary’)’’; and
(ii) by adding at the end the following new sub-
section:
‘‘(g) DEPARTMENT
OF ENERGY DEFENSE NUCLEAR FACILITY
DEFINED.—In this section, the term ‘Department of Energy defense
nuclear facility’ means—
‘‘(1) a production facility or utilization facility (as those
terms are defined in section 11 of the Atomic Energy Act
of 1954 (42 U.S.C. 2014)) that is under the control or jurisdiction
of the Secretary and that is operated for national security
purposes (including the tritium loading facility at Savannah
River, South Carolina, the 236 H facility at Savannah River,
South Carolina; and the Mound Laboratory, Ohio), but the
term does not include any facility that does not conduct atomic
energy defense activities and does not include any facility or
activity covered by Executive Order Number 12344, dated Feb-
ruary 1, 1982, pertaining to the naval nuclear propulsion pro-
gram;
H. R. 1588—387
‘‘(2) a nuclear waste storage or disposal facility that is
under the control or jurisdiction of the Secretary;
‘‘(3) a testing and assembly facility that is under the control
or jurisdiction of the Secretary and that is operated for national
security purposes (including the Nevada Test Site, Nevada;
the Pinnellas Plant, Florida; and the Pantex facility, Texas);
‘‘(4) an atomic weapons research facility that is under the
control or jurisdiction of the Secretary (including Lawrence
Livermore, Los Alamos, and Sandia National Laboratories);
or
‘‘(5) any facility described in paragraphs (1) through (4)
that—
‘‘(A) is no longer in operation;
‘‘(B) was under the control or jurisdiction of the Depart-
ment of Defense, the Atomic Energy Commission, or the
Energy Research and Development Administration; and
‘‘(C) was operated for national security purposes.’’.
(6) AUTHORITY TO PROVIDE CERTIFICATE OF COMMENDATION
TO EMPLOYEES.—Section 3195 of the Floyd D. Spence National
Defense Authorization Act for Fiscal Year 2001 (as enacted
into law by Public Law 106–398; 114 Stat. 1654A–481), is—
(A) transferred to title XLVI of the Bob Stump National
Defense Authorization Act for Fiscal Year 2003, as
amended by this subsection;
(B) redesignated as section 4605; and
(C) inserted after section 4604, as added by paragraph
(5).
(7) SUBTITLE HEADING ON EDUCATION AND TRAINING.—Title
XLVI of the Bob Stump National Defense Authorization Act
for Fiscal Year 2003, as amended by this subsection, is further
amended by adding at the end the following new subtitle
heading:
‘‘Subtitle B—Education and Training’’.
(8) EXECUTIVE
MANAGEMENT
TRAINING.—Section 3142 of
the National Defense Authorization Act for Fiscal Years 1990
and 1991 (Public Law 101–189; 103 Stat. 1680), is—
(A) transferred to title XLVI of the Bob Stump National
Defense Authorization Act for Fiscal Year 2003, as
amended by this subsection;
(B) redesignated as section 4621;
(C) inserted after the heading for subtitle B of such
title, as added by paragraph (7); and
(D) amended in the section heading by adding a period
at the end.
(9) STOCKPILE STEWARDSHIP RECRUITMENT AND TRAINING
PROGRAM.—Section 3131 of the National Defense Authorization
Act for Fiscal Year 1995 (Public Law 103–337; 108 Stat. 3085),
is—
(A) transferred to title XLVI of the Bob Stump National
Defense Authorization Act for Fiscal Year 2003, as
amended by this subsection;
(B) redesignated as section 4622;
(C) inserted after section 4621, as added by paragraph
(8); and
(D) amended—
H. R. 1588—388
(i) in subsection (a)(1), by striking ‘‘section 3138
of the National Defense Authorization Act for Fiscal
Year 1994 (Public Law 103–160; 107 Stat. 1946; 42
U.S.C. 2121 note)’’ and inserting ‘‘section 4201’’; and
(ii) in subsection (b)(2), by inserting ‘‘of the
National Defense Authorization Act for Fiscal Year
1995 (Public Law 103–337)’’ after ‘‘section 3101(a)(1)’’.
(10) FELLOWSHIP PROGRAM FOR DEVELOPMENT OF SKILLS
CRITICAL TO NUCLEAR WEAPONS COMPLEX.—Section 3140 of the
National Defense Authorization Act for Fiscal Year 1996 (Public
Law 104–106; 110 Stat. 621), as amended by section 3162
of the National Defense Authorization Act for Fiscal Year 2000
(Public Law 106–65; 113 Stat. 943), is—
(A) transferred to title XLVI of the Bob Stump National
Defense Authorization Act for Fiscal Year 2003, as
amended by this subsection;
(B) redesignated as section 4623; and
(C) inserted after section 4622, as added by paragraph
(9).
(11) SUBTITLE HEADING ON WORKER SAFETY.—Title XLVI
of the Bob Stump National Defense Authorization Act for Fiscal
Year 2003, as amended by this subsection, is further amended
by adding at the end the following new subtitle heading:
‘‘Subtitle C—Worker Safety’’.
(12) WORKER
PROTECTION
AT
NUCLEAR
WEAPONS
FACILI-
TIES.—Section 3131 of the National Defense Authorization Act
for Fiscal Years 1992 and 1993 (Public Law 102–190; 105
Stat. 1571), is—
(A) transferred to title XLVI of the Bob Stump National
Defense Authorization Act for Fiscal Year 2003, as
amended by this subsection;
(B) redesignated as section 4641;
(C) inserted after the heading for subtitle C of such
title, as added by paragraph (11); and
(D) amended in subsection (e) by inserting ‘‘of the
National Defense Authorization Act for Fiscal Years 1992
and 1993 (Public Law 102–190)’’ after ‘‘section 3101(9)(A)’’.
(13) SAFETY
OVERSIGHT
AND
ENFORCEMENT
AT
DEFENSE
NUCLEAR
FACILITIES.—Section 3163 of the National Defense
Authorization Act for Fiscal Year 1995 (Public Law 103–337;
108 Stat. 3097), is—
(A) transferred to title XLVI of the Bob Stump National
Defense Authorization Act for Fiscal Year 2003, as
amended by this subsection;
(B) redesignated as section 4642;
(C) inserted after section 4641, as added by paragraph
(12); and
(D) amended in subsection (b) by striking ‘‘90 days
after the date of the enactment of this Act,’’ and inserting
‘‘January 5, 1995,’’.
(14) PROGRAM TO MONITOR WORKERS AT DEFENSE NUCLEAR
FACILITIES
EXPOSED
TO
HAZARDOUS
OR
RADIOACTIVE
SUB-
STANCES.—Section 3162 of the National Defense Authorization
Act for Fiscal Year 1993 (Public Law 102–484; 106 Stat. 2646),
is—
H. R. 1588—389
(A) transferred to title XLVI of the Bob Stump National
Defense Authorization Act for Fiscal Year 2003, as
amended by this subsection;
(B) redesignated as section 4643;
(C) inserted after section 4642, as added by paragraph
(13); and
(D) amended—
(i) in subsection (b)(6), by striking ‘‘1 year after
the date of the enactment of this Act’’ and inserting
‘‘October 23, 1993’’;
(ii) in subsection (c), by striking ‘‘180 days after
the date of the enactment of this Act,’’ and inserting
‘‘April 23, 1993,’’; and
(iii) by adding at the end the following new sub-
section:
‘‘(d) DEFINITIONS.—In this section:
‘‘(1) The term ‘Department of Energy defense nuclear
facility’ has the meaning given that term in section 4604(g).
‘‘(2) The term ‘Department of Energy employee’ means
any employee of the Department of Energy employed at a
Department of Energy defense nuclear facility, including any
employee of a contractor or subcontractor of the Department
of Energy employed at such a facility.’’.
(15) PROGRAMS FOR PERSONS WHO MAY HAVE BEEN EXPOSED
TO RADIATION RELEASED FROM HANFORD RESERVATION.—Section
3138 of the National Defense Authorization Act for Fiscal Year
1991 (Public Law 101–510; 104 Stat. 1834), as amended by
section 3138 of the National Defense Authorization Act for
Fiscal Year 1995 (Public Law 103–337; 108 Stat. 3087), is—
(A) transferred to title XLVI of the Bob Stump National
Defense Authorization Act for Fiscal Year 2003, as
amended by this subsection;
(B) redesignated as section 4644;
(C) inserted after section 4643, as added by paragraph
(14); and
(D) amended—
(i) in the section heading, by adding a period at
the end;
(ii) in subsection (a), by striking ‘‘this title’’ and
inserting 
‘‘title 
XXXI 
of 
the 
National 
Defense
Authorization Act for Fiscal Year 1991 (Public Law
101–510)’’; and
(iii) in subsection (c)—
(I) in paragraph (2), by striking ‘‘six months
after the date of the enactment of this Act,’’ and
inserting ‘‘May 5, 1991,’’; and
(II) in paragraph (3), by striking ‘‘18 months
after the date of the enactment of this Act,’’ and
inserting ‘‘May 5, 1992,’’.
(j) BUDGET AND FINANCIAL MANAGEMENT MATTERS.—
(1) HEADINGS.—Division D of the Bob Stump National
Defense Authorization Act for Fiscal Year 2003, as amended
by this section, is further amended by adding at the end the
following new headings:
H. R. 1588—390
‘‘TITLE XLVII—BUDGET AND FINANCIAL
MANAGEMENT MATTERS
‘‘Subtitle A—Recurring National Security
Authorization Provisions’’.
(2) RECURRING NATIONAL SECURITY AUTHORIZATION PROVI-
SIONS.—Sections 3620 through 3631 of the Bob Stump National
Defense Authorization Act for Fiscal Year 2003 (Public Law
107–314; 116 Stat. 2756) are—
(A) transferred to title XLVII of such Act, as added
by paragraph (1);
(B) redesignated as sections 4701 through 4712, respec-
tively;
(C) inserted after the heading for subtitle A of such
title, as so added; and
(D) amended—
(i) in section 4702, as so redesignated, by striking
‘‘sections 3629 and 3630’’ and inserting ‘‘sections 4710
and 4711’’;
(ii) in section 4706(a)(3)(B), as so redesignated,
by striking ‘‘section 3626’’ and inserting ‘‘section 4707’’;
(iii) in section 4707(c), as so redesignated, by
striking ‘‘section 3625(b)(2)’’ and inserting ‘‘section
4706(b)(2)’’;
(iv) in section 4710(c), as so redesignated, by
striking ‘‘section 3621’’ and inserting ‘‘section 4702’’;
(v) in section 4711(c), as so redesignated, by
striking ‘‘section 3621’’ and inserting ‘‘section 4702’’;
and
(vi) in section 4712, as so redesignated, by striking
‘‘section 3621’’ and inserting ‘‘section 4702’’.
(3) SUBTITLE HEADING ON PENALTIES.—Title XLVII of the
Bob Stump National Defense Authorization Act for Fiscal Year
2003, as amended by this subsection, is further amended by
adding at the end the following new subtitle heading:
‘‘Subtitle B—Penalties’’.
(4) RESTRICTION ON USE OF FUNDS TO PAY PENALTIES UNDER
ENVIRONMENTAL LAWS.—Section 3132 of the National Defense
Authorization Act for Fiscal Year 1987 (Public Law 99–661;
100 Stat. 4063), is—
(A) transferred to title XLVII of the Bob Stump
National Defense Authorization Act for Fiscal Year 2003,
as amended by this subsection;
(B) redesignated as section 4721;
(C) inserted after the heading for subtitle B of such
title, as added by paragraph (3); and
(D) amended in the section heading by adding a period
at the end.
(5) RESTRICTION ON USE OF FUNDS TO PAY PENALTIES UNDER
CLEAN
AIR
ACT.—Section 211 of the Department of Energy
National Security and Military Applications of Nuclear Energy
H. R. 1588—391
Authorization Act of 1981 (Public Law 96–540; 94 Stat. 3203),
is—
(A) transferred to title XLVII of the Bob Stump
National Defense Authorization Act for Fiscal Year 2003,
as amended by this subsection;
(B) inserted after section 4721, as added by paragraph
(4); and
(C) amended—
(i) by striking the section heading and inserting
the following new section heading:
‘‘SEC. 4722. RESTRICTION ON USE OF FUNDS TO PAY PENALTIES
UNDER CLEAN AIR ACT.’’;
(ii) by striking ‘‘SEC. 211.’’; and
(iii) by striking ‘‘this or any other Act’’ and
inserting ‘‘the Department of Energy National Security
and 
Military 
Applications 
of 
Nuclear 
Energy
Authorization Act of 1981 (Public Law 96–540) or any
other Act’’.
(6) SUBTITLE HEADING ON OTHER MATTERS.—Title XLVII
of the Bob Stump National Defense Authorization Act for Fiscal
Year 2003, as amended by this subsection, is further amended
by adding at the end the following new subtitle heading:
‘‘Subtitle C—Other Matters’’.
(7) SINGLE REQUEST FOR AUTHORIZATION OF APPROPRIATIONS
FOR COMMON DEFENSE AND SECURITY PROGRAMS.—Section 208
of the Department of Energy National Security and Military
Applications of Nuclear Energy Authorization Act of 1979
(Public Law 95–509; 92 Stat. 1779), is—
(A) transferred to title XLVII of the Bob Stump
National Defense Authorization Act for Fiscal Year 2003,
as amended by this subsection;
(B) inserted after the heading for subtitle C of such
title, as added by paragraph (6); and
(C) amended—
(i) by striking the section heading and inserting
the following new section heading:
‘‘SEC. 4731. SINGLE REQUEST FOR AUTHORIZATION OF APPROPRIA-
TIONS FOR COMMON DEFENSE AND SECURITY PRO-
GRAMS.’’;
and
(ii) by striking ‘‘SEC. 208.’’.
(k) ADMINISTRATIVE MATTERS.—
(1) HEADINGS.—Division D of the Bob Stump National
Defense Authorization Act for Fiscal Year 2003, as amended
by this section, is further amended by adding at the end the
following new headings:
H. R. 1588—392
‘‘TITLE XLVIII—ADMINISTRATIVE
MATTERS
‘‘Subtitle A—Contracts’’.
(2) COSTS NOT ALLOWED UNDER CERTAIN CONTRACTS.—Sec-
tion 1534 of the Department of Defense Authorization Act,
1986 (Public Law 99–145; 99 Stat. 774), as amended by section
3131 of the National Defense Authorization Act for Fiscal Years
1988 and 1989 (Public Law 100–180; 101 Stat. 1238), is—
(A) transferred to title XLVIII of the Bob Stump
National Defense Authorization Act for Fiscal Year 2003,
as added by paragraph (1);
(B) redesignated as section 4801;
(C) inserted after the heading for subtitle A of such
title, as so added; and
(D) amended—
(i) in the section heading, by adding a period at
the end; and
(ii) in subsection (b)(1), by striking ‘‘the date of
the enactment of this Act,’’ and inserting ‘‘November
8, 1985,’’.
(3) PROHIBITION ON BONUSES TO CONTRACTORS OPERATING
DEFENSE NUCLEAR FACILITIES.—Section 3151 of the National
Defense Authorization Act for Fiscal Years 1990 and 1991
(Public Law 101–189; 103 Stat. 1682), is—
(A) transferred to title XLVIII of the Bob Stump
National Defense Authorization Act for Fiscal Year 2003,
as amended by this subsection;
(B) redesignated as section 4802;
(C) inserted after section 4801, as added by paragraph
(2); and
(D) amended—
(i) in the section heading, by adding a period at
the end;
(ii) in subsection (a), by striking ‘‘the date of the
enactment of this Act’’ and inserting ‘‘November 29,
1989’’;
(iii) in subsection (b), by striking ‘‘6 months after
the date of the enactment of this Act,’’ and inserting
‘‘May 29, 1990,’’; and
(iv) in subsection (d), by striking ‘‘90 days after
the date of the enactment of this Act’’ and inserting
‘‘March 1, 1990’’.
(4) CONTRACTOR LIABILITY FOR INJURY OR LOSS OF PROPERTY
ARISING FROM ATOMIC WEAPONS TESTING PROGRAMS.—Section
3141 of the National Defense Authorization Act for Fiscal Year
1991 (Public Law 101–510; 104 Stat. 1837), is—
(A) transferred to title XLVIII of the Bob Stump
National Defense Authorization Act for Fiscal Year 2003,
as amended by this subsection;
(B) redesignated as section 4803;
(C) inserted after section 4802, as added by paragraph
(3); and
(D) amended—
H. R. 1588—393
(i) in the section heading, by adding a period at
the end; and
(ii) in subsection (d), by striking ‘‘the date of the
enactment of this Act’’ each place it appears and
inserting ‘‘November 5, 1990,’’.
(5) SUBTITLE HEADING ON RESEARCH AND DEVELOPMENT.—
Title XLVIII of the Bob Stump National Defense Authorization
Act for Fiscal Year 2003, as amended by this subsection, is
further amended by adding at the end the following new subtitle
heading:
‘‘Subtitle B—Research and Development’’.
(6) LABORATORY-DIRECTED RESEARCH AND DEVELOPMENT.—
Section 3132 of the National Defense Authorization Act for
Fiscal Year 1991 (Public Law 101–510; 104 Stat. 1832), is—
(A) transferred to title XLVIII of the Bob Stump
National Defense Authorization Act for Fiscal Year 2003,
as amended by this subsection;
(B) redesignated as section 4811;
(C) inserted after the heading for subtitle B of such
title, as added by paragraph (5); and
(D) amended in the section heading by adding a period
at the end.
(7) LIMITATIONS
ON
USE
OF
FUNDS
FOR
LABORATORY
DIRECTED RESEARCH AND DEVELOPMENT.—
(A) LIMITATIONS ON USE OF FUNDS FOR LABORATORY
DIRECTED RESEARCH AND DEVELOPMENT.—Section 3137 of
the National Defense Authorization Act for Fiscal Year
1998 (Public Law 105–85; 111 Stat. 2038), is—
(i) transferred to title XLVIII of the Bob Stump
National Defense Authorization Act for Fiscal Year
2003, as amended by this subsection;
(ii) redesignated as section 4812;
(iii) inserted after section 4811, as added by para-
graph (6);
(iv) amended in subsection (b) by striking ‘‘section
3136(b) of the National Defense Authorization Act for
Fiscal Year 1997 (Public Law 104–201; 110 Stat. 2831;
42 U.S.C. 7257b)’’ and inserting ‘‘section 4812A(b)’’;
(v) amended in subsection (d)—
(I) 
by 
striking 
‘‘section 
3136(b)(1)’’ 
and
inserting ‘‘section 4812A(b)(1)’’; and
(II) by striking ‘‘section 3132(c) of the National
Defense Authorization Act for Fiscal Year 1991
(42 U.S.C. 7257a(c))’’ and inserting ‘‘section
4811(c)’’; and
(vi) amended in subsection (e) by striking ‘‘section
3132(d) of the National Defense Authorization Act for
Fiscal Year 1991 (42 U.S.C. 7257a(d))’’ and inserting
‘‘section 4811(d)’’.
(B) LIMITATION
ON
USE
OF
FUNDS
FOR
CERTAIN
RESEARCH AND DEVELOPMENT PURPOSES.—Section 3136 of
the National Defense Authorization Act for Fiscal Year
1997 (Public Law 104–201; 110 Stat. 2830), as amended
by section 3137 of the National Defense Authorization Act
H. R. 1588—394
for Fiscal Year 1998 (Public Law 105–85; 111 Stat. 2038),
is—
(i) transferred to title XLVIII of the Bob Stump
National Defense Authorization Act for Fiscal Year
2003, as amended by this subsection;
(ii) redesignated as section 4812A;
(iii) inserted after section 4812, as added by
subparagraph (A); and
(iv) amended in subsection (a) by inserting ‘‘of
the National Defense Authorization Act for Fiscal Year
1997 (Public Law 104–201)’’ after ‘‘section 3101’’.
(8) CRITICAL TECHNOLOGY PARTNERSHIPS.—Section 3136 of
the National Defense Authorization Act for Fiscal Years 1992
and 1993 (Public Law 102–190; 105 Stat. 1577), as amended
by section 203(b)(3) of Public Law 103–35 (107 Stat. 102),
is—
(A) transferred to title XLVIII of the Bob Stump
National Defense Authorization Act for Fiscal Year 2003,
as amended by this subsection;
(B) redesignated as section 4813; and
(C) inserted after section 4812A, as added by paragraph
(7)(B).
(9) UNIVERSITY-BASED
RESEARCH
COLLABORATION
PRO-
GRAM.—Section 3155 of the National Defense Authorization
Act for Fiscal Year 1998 (Public Law 105–85; 111 Stat. 2044),
is—
(A) transferred to title XLVIII of the Bob Stump
National Defense Authorization Act for Fiscal Year 2003,
as amended by this subsection;
(B) redesignated as section 4814;
(C) inserted after section 4813, as added by paragraph
(8); and
(D) amended in subsection (c) by striking ‘‘this title’’
and inserting ‘‘title XXXI of the National Defense
Authorization Act for Fiscal Year 1998 (Public Law 105–
85)’’.
(10) SUBTITLE HEADING ON FACILITIES MANAGEMENT.—Title
XLVIII of the Bob Stump National Defense Authorization Act
for Fiscal Year 2003, as amended by this subsection, is further
amended by adding at the end the following new subtitle
heading:
‘‘Subtitle C—Facilities Management’’.
(11) TRANSFERS
OF
REAL
PROPERTY
AT
CERTAIN
FACILI-
TIES.—Section 3158 of the National Defense Authorization Act
for Fiscal Year 1998 (Public Law 105–85; 111 Stat. 2046),
is—
(A) transferred to title XLVIII of the Bob Stump
National Defense Authorization Act for Fiscal Year 2003,
as amended by this subsection;
(B) redesignated as section 4831; and
(C) inserted after the heading for subtitle C of such
title, as added by paragraph (10).
(12) 
ENGINEERING
AND
MANUFACTURING
RESEARCH,
DEVELOPMENT, AND
DEMONSTRATION
AT
CERTAIN
NUCLEAR
WEAPONS PRODUCTION PLANTS.—Section 3156 of the Floyd D.
H. R. 1588—395
Spence National Defense Authorization Act for Fiscal Year
2001 (as enacted into law by Public Law 106–398; 114 Stat.
1654A–467), is—
(A) transferred to title XLVIII of the Bob Stump
National Defense Authorization Act for Fiscal Year 2003,
as amended by this subsection;
(B) redesignated as section 4832; and
(C) inserted after section 4831, as added by paragraph
(11).
(13) PILOT PROGRAM ON USE OF PROCEEDS OF DISPOSAL
OR
UTILIZATION
OF
CERTAIN
ASSETS.—Section 3138 of the
National Defense Authorization Act for Fiscal Year 1998 (Public
Law 105–85; 111 Stat. 2039), is—
(A) transferred to title XLVIII of the Bob Stump
National Defense Authorization Act for Fiscal Year 2003,
as amended by this subsection;
(B) redesignated as section 4833;
(C) inserted after section 4832, as added by paragraph
(12); and
(D) amended in subsection (d) by striking ‘‘sections
202 and 203(j) of the Federal Property and Administrative
Services Act of 1949 (40 U.S.C. 483 and 484(j))’’ and
inserting ‘‘subchapter II of chapter 5 and section 549 of
title 40, United States Code,’’.
(14) SUBTITLE HEADING ON OTHER MATTERS.—Title XLVIII
of the Bob Stump National Defense Authorization Act for Fiscal
Year 2003, as amended by this subsection, is further amended
by adding at the end the following new subtitle heading:
‘‘Subtitle D—Other Matters’’.
(15) SEMIANNUAL REPORTS ON LOCAL IMPACT ASSISTANCE.—
Subsection (f) of section 3153 of the National Defense Authoriza-
tion Act for Fiscal Year 1998 (Public Law 105–85; 111 Stat.
2044), is—
(A) transferred to title XLVIII of the Bob Stump
National Defense Authorization Act for Fiscal Year 2003,
as amended by this subsection;
(B) inserted after the heading for subtitle D of such
title, as added by paragraph (14); and
(C) amended—
(i) by inserting before the text the following new
section heading:
‘‘SEC. 4851. SEMIANNUAL REPORTS ON LOCAL IMPACT ASSISTANCE.’’;
(ii) by striking ‘‘(f) SEMIANNUAL REPORTS TO CON-
GRESS OF LOCAL IMPACT ASSISTANCE.—’’; and
(iii) by striking ‘‘section 3161(c)(6) of the National
Defense 
Authorization 
Act 
of 
1993 
(42 
U.S.C.
7274h(c)(6))’’ and inserting ‘‘section 4604(c)(6)’’.
(16) PAYMENT OF COSTS OF OPERATION AND MAINTENANCE
OF INFRASTRUCTURE AT NEVADA TEST SITE.—Section 3144 of
the National Defense Authorization Act for Fiscal Year 1997
(Public Law 104–201; 110 Stat. 2838), is—
(A) transferred to title XLVIII of such Act, as amended
by this subsection;
(B) redesignated as section 4852; and
H. R. 1588—396
(C) inserted after section 4851, as added by paragraph
(15).
(m) CONFORMING AMENDMENTS.—(1) Title XXXVI of the Bob
Stump National Defense Authorization Act for Fiscal Year 2003
(Public Law 107–314; 116 Stat. 1756) is repealed.
(2) Subtitle E of title XXXI of the National Defense Authoriza-
tion Act for Fiscal Year 1993 (Public Law 102–484; 42 U.S.C.
7274h et seq.) is repealed.
(3) Section 8905a(d)(5)(A) of title 5, United States Code, is
amended by striking ‘‘section 3143 of the National Defense
Authorization Act for Fiscal Year 1997 (42 U.S.C. 7274n)’’ and
inserting ‘‘section 4421 of the Atomic Energy Defense Act’’.
TITLE XXXII—DEFENSE NUCLEAR
FACILITIES SAFETY BOARD
SEC. 3201. AUTHORIZATION.
There are authorized to be appropriated for fiscal year 2004,
$19,559,000 for the operation of the Defense Nuclear Facilities
Safety Board under chapter 21 of the Atomic Energy Act of 1954
(42 U.S.C. 2286 et seq.).
TITLE XXXIII—NATIONAL DEFENSE
STOCKPILE
Sec. 3301. Authorized uses of National Defense Stockpile funds.
Sec. 3302. Revisions to required receipt objectives for previously authorized dis-
posals from National Defense Stockpile.
SEC. 3301. AUTHORIZED USES OF NATIONAL DEFENSE STOCKPILE
FUNDS.
(a) OBLIGATION OF STOCKPILE FUNDS.—During fiscal year 2004,
the National Defense Stockpile Manager may obligate up to
$69,701,000 of the funds in the National Defense Stockpile Trans-
action Fund established under subsection (a) of section 9 of the
Strategic and Critical Materials Stock Piling Act (50 U.S.C. 98h)
for the authorized uses of such funds under subsection (b)(2) of
such section, including the disposal of hazardous materials that
are environmentally sensitive.
(b) ADDITIONAL OBLIGATIONS.—The National Defense Stockpile
Manager may obligate amounts in excess of the amount specified
in subsection (a) if the National Defense Stockpile Manager notifies
Congress that extraordinary or emergency conditions necessitate
the additional obligations. The National Defense Stockpile Manager
may make the additional obligations described in the notification
after the end of the 45-day period beginning on the date on which
Congress receives the notification.
(c) LIMITATIONS.—The authorities provided by this section shall
be subject to such limitations as may be provided in appropriations
Acts.
H. R. 1588—397
SEC. 3302. REVISIONS TO REQUIRED RECEIPT OBJECTIVES FOR PRE-
VIOUSLY AUTHORIZED DISPOSALS FROM NATIONAL
DEFENSE STOCKPILE.
Section 3402 of the National Defense Authorization Act for
Fiscal Year 2000 (Public Law 106–65; 113 Stat. 972; 50 U.S.C.
98d note) is amended—
(1) in subsection (b)—
(A) by striking ‘‘and’’ at the end of paragraph (2);
and
(B) by striking paragraph (3) and inserting the fol-
lowing new paragraphs:
‘‘(3) $340,000,000 before the end of fiscal year 2005; and
‘‘(4) $450,000,000 before the end of fiscal year 2013.’’; and
(2) in subsection (e), by adding at the end the following
new sentence: ‘‘The disposal of materials under this section
to achieve the receipt levels specified in subsection (b), within
the time periods specified in subsection, shall be in addition
to any routine and on-going disposals used to fund operations
of the National Defense Stockpile.’’.
TITLE XXXIV—NAVAL PETROLEUM
RESERVES
Sec. 3401. Authorization of appropriations.
SEC. 3401. AUTHORIZATION OF APPROPRIATIONS.
(a) AMOUNT.—There are hereby authorized to be appropriated
to the Secretary of Energy $16,500,000 for fiscal year 2004 for
the purpose of carrying out activities under chapter 641 of title
10, United States Code, relating to the naval petroleum reserves.
(b) PERIOD OF AVAILABILITY.—Funds appropriated pursuant to
the authorization of appropriations in subsection (a) shall remain
available until expended.
TITLE XXXV—MARITIME
ADMINISTRATION
Sec. 3501. Short title.
Subtitle A—Maritime Administration Reauthorization
Sec. 3511. Authorization of appropriations for fiscal years 2004, 2005, 2006, 2007,
and 2008.
Sec. 3512. Conveyance of obsolete vessels under title V, Merchant Marine Act,
1936.
Sec. 3513. Authority to convey vessel USS HOIST (ARS–40).
Sec. 3514. Cargo preference.
Sec. 3515. Maritime education and training.
Sec. 3516. Authority to convey obsolete vessels to United States territories and for-
eign countries for reefing.
Sec. 3517. Maintenance and repair reimbursement pilot program.
Subtitle B—Amendments to Title XI Loan Guarantee Program
Sec. 3521. Equity payments by obligor for disbursement prior to termination of es-
crow agreement.
Sec. 3522. Waivers of program requirements.
Sec. 3523. Project monitoring.
Sec. 3524. Defaults.
Sec. 3525. Decision period.
Sec. 3526. Loan guarantees.
H. R. 1588—398
Sec. 3527. Annual report on program.
Sec. 3528. Review of program.
Subtitle C—Maritime Security Fleet
Sec. 3531. Establishment of Maritime Security Fleet.
Sec. 3532. Related amendments to existing law.
Sec. 3533. Interim rules.
Sec. 3534. Repeals and conforming amendments.
Sec. 3535. GAO study of adjustment of operating agreement payment criteria.
Sec. 3536. Definitions.
Sec. 3537. Effective dates.
Subtitle D—National Defense Tank Vessel Construction Assistance
Sec. 3541. National defense tank vessel construction program.
Sec. 3542. Application procedure.
Sec. 3543. Award of assistance.
Sec. 3544. Priority for title XI assistance.
Sec. 3545. Definitions.
Sec. 3546. Authorization of appropriations.
SEC. 3501. SHORT TITLE.
This title may be cited as the ‘‘Maritime Security Act of 2003’’.
Subtitle A—Maritime Administration
Reauthorization
SEC. 3511. AUTHORIZATION OF APPROPRIATIONS FOR FISCAL YEARS
2004, 2005, 2006, 2007, AND 2008.
There are authorized to be appropriated to the Secretary of
Transportation for the Maritime Administration—
(1) for expenses necessary for operations and training
activities, not to exceed $104,400,000 for the fiscal year ending
September 30, 2004, $106,000,000 for the fiscal year ending
September 30, 2005, $109,000,000 for the fiscal year ending
September 30, 2006, $111,000,000 for the fiscal year ending
September 30, 2007, and $113,000,000 for the fiscal year ending
September 30, 2008;
(2) for expenses under the loan guarantee program author-
ized by title XI of the Merchant Marine Act, 1936 (46 U.S.C.
App. 1271 et seq.), $36,000,000 for each of fiscal years 2004,
2005, 2006, 2007, and 2008 of which—
(A) $30,000,000 shall be for the cost (as defined in
section 502(5) of the Federal Credit Reform Act of 1990
(2 U.S.C. 661a(5))) of loan guarantees under the program;
and
(B) $6,000,000 shall be for administrative expenses
related to loan guarantee commitments under the program;
and
(3) for ship disposal, $18,422,000 for fiscal year 2004,
$11,422,000 for each of fiscal years 2005 and 2006, and
$12,000,000 for each of fiscal years 2007 and 2008.
SEC. 3512. CONVEYANCE OF OBSOLETE VESSELS UNDER TITLE V, MER-
CHANT MARINE ACT, 1936.
Section 508 of the Merchant Marine Act, 1936 (46 U.S.C. App.
1158) is amended—
(1) by inserting ‘‘(a) AUTHORITY TO SCRAP OR SELL OBSO-
LETE VESSELS.—’’ before ‘‘If’’; and
(2) by adding at the end the following:
‘‘(b) AUTHORITY TO CONVEY VESSELS.—
H. R. 1588—399
‘‘(1) IN GENERAL.—Notwithstanding section 510(j) of this
Act, the Secretary of Transportation may convey the right,
title, and interest of the United States Government in any
vessel of the National Defense Reserve Fleet that has been
identified by the Secretary as an obsolete vessel of insufficient
value to warrant its further preservation, if—
‘‘(A) the recipient is a non-profit organization, a State,
Commonwealth, or possession of the United States or any
municipal corporation or political subdivision thereof, or
the District of Columbia;
‘‘(B) the recipient agrees not to use, or allow others
to use, the vessel for commercial transportation purposes;
‘‘(C) the recipient agrees to make the vessel available
to the Government whenever the Secretary indicates that
it is needed by the Government;
‘‘(D) the recipient agrees to hold the Government harm-
less for any claims arising from exposure to asbestos, poly-
chlorinated biphenyls, lead paint, or other hazardous sub-
stances after conveyance of the vessel, except for claims
arising from use of the vessel by the Government;
‘‘(E) the recipient has a conveyance plan and a business
plan that describes the intended use of the vessel, each
of which have been submitted to and approved by the
Secretary;
‘‘(F) the recipient has provided proof, as determined
by the Secretary, of resources sufficient to accomplish the
transfer, necessary repairs and modifications, and initiation
of the intended use of the vessel; and
‘‘(G) the recipient agrees that when the recipient no
longer requires the vessel for use as described in the busi-
ness plan required under subparagraph (E)—
‘‘(i) the recipient will, at the discretion of the Sec-
retary, reconvey the vessel to the Government in good
condition except for ordinary wear and tear; or
‘‘(ii) if the Board of Trustees of the recipient has
decided to dissolve the recipient according to the laws
of the State in which the recipient is incorporated,
then—
‘‘(I) the recipient shall distribute the vessel,
as an asset of the recipient, to a person that has
been determined exempt from taxation under the
provisions of section 501(c)(3) of the Internal Rev-
enue Code, or to the Federal Government or a
State or local government for a public purpose;
and
‘‘(II) the vessel shall be disposed of by a court
of competent jurisdiction of the county in which
the principal office of the recipient is located, for
such purposes as the court shall determine, or
to such organizations as the court shall determine
are organized exclusively for public purposes.
‘‘(2) OTHER
EQUIPMENT.—At the Secretary’s discretion,
additional equipment from other obsolete vessels of the National
Defense Reserve Fleet may be conveyed to assist the recipient
with maintenance, repairs, or modifications.
‘‘(3) ADDITIONAL TERMS.—The Secretary may require any
additional terms the Secretary considers appropriate.
H. R. 1588—400
‘‘(4) DELIVERY OF VESSEL.—If conveyance is made under
this subsection the vessel shall be delivered to the recipient
at a time and place to be determined by the Secretary. The
vessel shall be conveyed in an ‘as is’ condition.
‘‘(5) LIMITATIONS.—If at any time prior to delivery of the
vessel to the recipient, the Secretary determines that a different
disposition of a vessel would better serve the interests of the
Government, the Secretary shall pursue the more favorable
disposition of the obsolete vessel and shall not be liable for
any damages that may result from an intended recipient’s
reliance upon a proposed transfer.
‘‘(6) REVERSION.—The Secretary shall include in any
conveyance under this subsection terms under which all right,
title, and interest conveyed by the Secretary shall revert to
the United States if the Secretary determines the vessel has
been used other than as described in the business plan required
under paragraph (1)(E).’’.
SEC. 3513. AUTHORITY TO CONVEY VESSEL USS HOIST (ARS–40).
(a) IN GENERAL.—Notwithstanding section 510(j) of the Mer-
chant Marine Act, 1936 (46 U.S.C. App. 1160(j)), the Secretary
of Transportation may convey the right, title, and interest of the
United States Government in and to the vessel USS HOIST (ARS–
40), to the Last Patrol Museum, located in Toledo, Ohio (a not-
for-profit corporation, in this section referred to as the ‘‘recipient’’),
for use as a military museum, if—
(1) the recipient agrees to use the vessel as a nonprofit
military museum;
(2) the recipient agrees not to use, or allow others to
use, the vessel for commercial transportation purposes;
(3) the recipient agrees to make the vessel available to
the Government whenever the Secretary indicates that it is
needed by the Government;
(4) the recipient agrees that when the recipient no longer
requires the vessel for use as a military museum—
(A) the recipient will, at the discretion of the Secretary,
reconvey the vessel to the Government in good condition
except for ordinary wear and tear; or
(B) if the Board of Trustees of the recipient has decided
to dissolve the recipient according to the laws of the State
in which the recipient is incorporated, then—
(i) the recipient shall distribute the vessel, as an
asset of the recipient, to a person that has been deter-
mined exempt from taxation under the provisions of
section 501(c)(3) of the Internal Revenue Code, or to
the Federal Government or a State or local government
for a public purpose; and
(ii) the vessel shall be disposed of by a court of
competent jurisdiction of the county in which the prin-
cipal office of the recipient is located, for such purposes
as the court shall determine, or to such organizations
as the court shall determine are organized exclusively
for public purposes;
H. R. 1588—401
(5) the recipient agrees to hold the Government harmless
for any claims arising from exposure to asbestos, poly-
chlorinated biphenyls, lead paint, or other hazardous sub-
stances after conveyance of the vessel, except for claims arising
from use of the vessel by the Government;
(6) the recipient has available, for use to restore the vessel,
in the form of cash, liquid assets, or a written loan commitment,
financial resources of at least $100,000; and
(7) the recipient has a conveyance plan and a business
plan that describes the intended use of the vessel, each of
which have been submitted to and approved by the Secretary.
(b) DELIVERY OF VESSEL.—If a conveyance is made under this
section, the Secretary shall deliver the vessel at the place where
the vessel is located on the date of the enactment of this Act,
in its present condition, and without cost to the Government.
(c) OTHER UNNEEDED EQUIPMENT.—The Secretary may also
convey any unneeded equipment from other vessels in the National
Defense Reserve Fleet in order to restore the USS HOIST (ARS–
40) to museum quality.
(d) RETENTION OF VESSEL IN NDRF.—
(1) IN GENERAL.—The Secretary shall retain in the National
Defense Reserve Fleet the vessel authorized to be conveyed
under subsection (a), until the earlier of—
(A) 2 years after the date of the enactment of this
Act; or
(B) the date of conveyance of the vessel under sub-
section (a).
(2) LIMITATION.—Paragraph (1) does not require the Sec-
retary to retain the vessel in the National Defense Reserve
Fleet if the Secretary determines that retention of the vessel
in the fleet will pose an unacceptable risk to the marine
environment.
SEC. 3514. CARGO PREFERENCE.
Section 901b(c)(2) of the Merchant Marine Act, 1936 (46 U.S.C
App. 1241f(c)(2)) is amended by striking ‘‘1986.’’ and inserting ‘‘1986,
the 18-month period beginning April 1, 2002, and the 12-month
period beginning October 1, 2003, and each year thereafter.’’.
SEC. 3515. MARITIME EDUCATION AND TRAINING.
(a) COST OF EDUCATION DEFINED.—Section 1302 of the Mer-
chant Marine Act, 1936 (46 U.S.C. App. 1295a) is amended—
(1) by striking ‘‘and’’ after the semicolon in paragraph
(3);
(2) by striking ‘‘States.’’ in paragraph (4)(B) and inserting
‘‘States; and’’; and
(3) by adding at the end the following:
‘‘(5) the term ‘cost of education provided’ means the finan-
cial costs incurred by the Federal Government for providing
training or financial assistance to students at the United States
Merchant Marine Academy and the State maritime academies,
including direct financial assistance, room, board, classroom
academics, and other training activities.’’.
(b) COMMITMENT AGREEMENTS.—Section 1303(e) of the Mer-
chant Marine Act, 1936 (46 U.S.C. App. 1295b(e)) is amended—
(1) by striking ‘‘Academy, unless the individual is separated
from the’’ in paragraph (1)(A);
(2) by striking paragraph (1)(C) and inserting the following:
H. R. 1588—402
‘‘(C) to maintain a valid license as an officer in the mer-
chant marine of the United States for at least 6 years following
the date of graduation from the Academy of such individual,
accompanied by the appropriate national and international
endorsements and certification as required by the United States
Coast Guard for service aboard vessels on domestic and inter-
national voyages;’’;
(3) by striking paragraph (1)(E)(iii) and inserting the fol-
lowing:
‘‘(iii) as a commissioned officer on active duty in an
armed force of the United States, as a commissioned officer
in the National Oceanic and Atmospheric Administration,
or other maritime-related employment with the Federal
Government which serves the national security interests
of the United States, as determined by the Secretary; or’’;
(4) by striking paragraph (2) and inserting the following:
‘‘(2)(A) If the Secretary determines that any individual who
has attended the Academy for not less than 2 years has failed
to fulfill the part of the agreement required by paragraph (1)(A),
such individual may be ordered by the Secretary of Defense to
active duty in one of the armed forces of the United States to
serve for a period of time not to exceed 2 years. In cases of hardship
as determined by the Secretary, the Secretary may waive this
provision in whole or in part.
‘‘(B) If the Secretary of Defense is unable or unwilling to order
an individual to active duty under subparagraph (A), or if the
Secretary of Transportation determines that reimbursement of the
cost of education provided would better serve the interests of the
United States, the Secretary may recover from the individual the
cost of education provided by the Federal Government.’’;
(5) by striking paragraph (3) and inserting the following:
‘‘(3)(A) If the Secretary determines that an individual has failed
to fulfill any part of the agreement required by paragraph (1),
as described in paragraph (1)(B), (C), (D), (E), or (F), such individual
may be ordered to active duty to serve a period of time not less
than 3 years and not more than the unexpired portion, as deter-
mined by the Secretary, of the service required by paragraph (1)(E).
The Secretary, in consultation with the Secretary of Defense, shall
determine in which service the individual shall be ordered to active
duty to serve such period of time. In cases of hardship, as deter-
mined by the Secretary, the Secretary may waive this provision
in whole or in part.
‘‘(B) If the Secretary of Defense is unable or unwilling to order
an individual to active duty under subparagraph (A), or if the
Secretary of Transportation determines that reimbursement of the
cost of education provided would better serve the interests of the
United States, the Secretary may recover from the individual the
cost of education provided and may reduce the amount to be recov-
ered from such individual to reflect partial performance of service
obligations and such other factors as the Secretary determines
merit such a reduction.’’; and
(6) by redesignating paragraph (4) as paragraph (5) and
inserting after paragraph (3) the following:
‘‘(4) To aid in the recovery of the cost of education provided
by the Federal Government pursuant to a commitment agreement
under this section, the Secretary may request the Attorney General
to begin court proceedings, and the Secretary may make use of
H. R. 1588—403
the Federal debt collection procedures in chapter 176 of title 28,
United States Code, or other applicable administrative remedies.’’.
(c) DEGREES
AWARDED.—Section 1303(g) of the Merchant
Marine Act, 1936 (46 U.S.C. App. 1295b(g)) is amended to read
as follows:
‘‘(g) DEGREES AWARDED.—
‘‘(1) BACHELOR’S
DEGREE.—The Superintendent of the
Academy may confer the degree of bachelor of science upon
any individual who has met the conditions prescribed by the
Secretary and who, if a citizen of the United States, has passed
the examination for a merchant marine officer’s license. No
individual may be denied a degree under this subsection
because the individual is not permitted to take such examina-
tion solely because of physical disqualification.
‘‘(2) 
MASTER’S
DEGREE.—The 
Superintendent 
of 
the
Academy may confer a master’s degree upon any individual
who has met the conditions prescribed by the Secretary. Any
master’s degree program may be funded through non-appro-
priated funds. In order to maintain the appropriate academic
standards, the program shall be accredited by the appropriate
accreditation body. The Secretary may make regulations nec-
essary to administer such a program.’’.
(d) STUDENT INCENTIVE PAYMENTS.—Section 1304(g) of the Mer-
chant Marine Act, 1936 (46 U.S.C. App. 1295c(g)) is amended—
(1) by striking ‘‘$3,000’’ in paragraph (1) and inserting
‘‘$4,000’’;
(2) in paragraph (3)(A) by striking ‘‘attending, unless the
individual is separated by such academy;’’ and inserting
‘‘attending;’’;
(3) by striking paragraph (3)(C) and inserting the following:
‘‘(C) to maintain a valid license as an officer in the mer-
chant marine of the United States for at least 6 years following
the date of graduation from such State maritime academy
of such individual, accompanied by the appropriate national
and international endorsements and certification as required
by the United States Coast Guard for service aboard vessels
on domestic and international voyages;’’;
(4) by striking paragraph (3)(E)(iii) and inserting the fol-
lowing:
‘‘(iii) as a commissioned officer on active duty in an
armed force of the United States, as a commissioned officer
in the National Oceanic and Atmospheric Administration,
or in other maritime-related employment with the Federal
Government which serves the national security interests
of the United States, as determined by the Secretary; or’’;
(5) by striking paragraph (4) and inserting the following:
‘‘(4)(A) If the Secretary determines that an individual who
has accepted the payment described in paragraph (1) for a minimum
of 2 academic years has failed to fulfill the part of the agreement
required by paragraph (1) and described in paragraph (3)(A), such
individual may be ordered by the Secretary of Defense to active
duty in the Armed Forces of the United States to serve for a
period of time not to exceed 2 years. In cases of hardship, as
determined by the Secretary, the Secretary may waive this provision
in whole or in part.
‘‘(B) If the Secretary of Defense is unable or unwilling to order
an individual to active duty under subparagraph (A), or if the
H. R. 1588—404
Secretary of Transportation determines that reimbursement of the
cost of education provided would better serve the interests of the
United States, the Secretary—
‘‘(i) subject to clause (ii), may recover from the individual
the amount of student incentive payments, plus interest and
attorneys fees; and
‘‘(ii) may reduce the amount to be recovered from such
individual to reflect partial performance of service obligations
and such other factors as the Secretary determines merit such
reduction.’’;
(6) by striking paragraph (5) and inserting the following:
‘‘(5)(A) If the Secretary determines that an individual has failed
to fulfill any part of the agreement required by paragraph (1),
as described in paragraph (3)(B), (C), (D), (E), or (F), such individual
may be ordered to active duty to serve a period of time not less
than 2 years and not more than the unexpired portion, as deter-
mined by the Secretary, of the service required by paragraph (3)(E).
The Secretary, in consultation with the Secretary of Defense, shall
determine in which service the individual shall be ordered to active
duty to serve such period of time. In cases of hardship, as deter-
mined by the Secretary, the Secretary may waive this provision
in whole or in part.
‘‘(B) If the Secretary of Defense is unable or unwilling to order
an individual to active duty under subparagraph (A), or if the
Secretary of Transportation determines that reimbursement of the
cost of education provided would better serve the interests of the
United States, the Secretary—
‘‘(i) subject to clause (ii), may recover from the individual
the amount of student incentive payments, plus interest and
attorneys fees; and
‘‘(ii) may reduce the amount to be recovered from such
individual to reflect partial performance of service obligations
and such other factors as the Secretary determines merit such
reduction.’’; and
(7) by redesignating paragraphs (6) and (7) as paragraphs
(7) and (8), respectively, and inserting after paragraph (5) the
following:
‘‘(6) To aid in the recovery of student incentive payments plus
interest and attorneys fees the Secretary may request the Attorney
General to begin court proceedings, and the Secretary may make
use of the Federal debt collection procedures in chapter 176 of
title 28, United States Code, and other applicable administrative
remedies.’’.
(e) AWARDS
AND MEDALS.—Section 1306 of the Merchant
Marine Act, 1936 (46 U.S.C. App. 1295e) is amended by adding
at the end the following:
‘‘(d) AWARDS AND MEDALS.—The Secretary may establish and
maintain a medals and awards program to recognize distinguished
service, superior achievement, professional performance, and other
commendable achievement by personnel of the United States Mari-
time Service.’’.
SEC. 3516. AUTHORITY TO CONVEY OBSOLETE VESSELS TO UNITED
STATES TERRITORIES AND FOREIGN COUNTRIES FOR
REEFING.
(a) DEADLINE
FOR PREPARATION.—Paragraph (1) of section
3504(b) of the Bob Stump National Defense Authorization Act for
H. R. 1588—405
Fiscal Year 2003 (Public Law 107–314; 116 Stat. 2754; 16 U.S.C.
1220 note) is amended by striking ‘‘September 30, 2003,’’ and
inserting ‘‘March 31, 2004,’’.
(b) 
GUIDANCE
ON
PRACTICES.—Such 
section 
is 
further
amended—
(1) in paragraph (1), by inserting ‘‘guidance recommending’’
after ‘‘jointly develop’’;
(2) in paragraph (2), by inserting ‘‘guidance recommending’’
before ‘‘environmental best management practices’’;
(3) in paragraph (3)—
(A) in subparagraph (A), by inserting ‘‘recommended’’
after ‘‘include’’;
(B) by striking subparagraph (B) and inserting the
following new subparagraph (B):
‘‘(B) promote consistent use of such practices nationwide;’’;
and
(C) in subparagraph (C), by striking ‘‘establish base-
lines’’ and inserting ‘‘provide a basis’’; and
(4) in paragraph (4), by striking ‘‘guidelines to be used
by’’ and inserting ‘‘guidance for’’.
(c) APPLICATIONS FOR PREPARATION OF VESSELS AS REEFS.—
Such section is further amended—
(1) by redesignating paragraph (5) as paragraph (6); and
(2) by inserting after paragraph (4) the following new para-
graph (5):
‘‘(5) Not later than March 31, 2004, the Secretary of Transpor-
tation, acting through the Maritime Administration, and the
Administrator of the Environmental Protection Agency shall jointly
establish an application process for governments of States, common-
wealths, and United States territories and possession, and foreign
governments, for the preparation of vessels for use as artificial
reefs, including documentation and certification requirements for
that application process.’’.
SEC. 3517. MAINTENANCE AND REPAIR REIMBURSEMENT PILOT PRO-
GRAM.
(a) AUTHORITY TO ENTER AGREEMENTS.—
(1) IN
GENERAL.—The Secretary of Transportation may
carry out a pilot program under which the Secretary may
enter into an agreement with a contractor under chapter 531
of title 46, United States Code, as amended by this Act,
regarding maintenance and repair of a vessel that is subject
to an operating agreement under that chapter.
(2) LIMITATION.—The Secretary may not require a person
to enter into an agreement under this section, including as
a condition of awarding an operating agreement to the person
under chapter 531 of title 46, United States Code, as amended
by this Act.
(b) TERMS OF AGREEMENT.—An agreement under this section—
(1) shall require that except as provided in subsection
(c), all qualified maintenance or repair on the vessel shall
be performed in the United States;
(2) shall require that the Secretary shall reimburse the
contractor in accordance with subsection (d) for the costs of
qualified maintenance or repair performed in the United States;
and
H. R. 1588—406
(3) shall apply to maintenance and repair performed during
the 5-year period beginning on the date the vessel begins oper-
ating under the operating agreement under chapter 531 of
title 46, United States Code.
(c) EXCEPTION TO REQUIREMENT TO PERFORM WORK IN THE
UNITED STATES.—A contractor shall not be required to have quali-
fied maintenance or repair work performed in the United States
under this section, if the Secretary determines that—
(1) there is no facility in the United States available to
perform the work; or
(2) there is not available to the Secretary sufficient funds
to pay reimbursement under subsection (d) with respect to
the work.
(d) REIMBURSEMENT.—
(1) IN GENERAL.—The Secretary shall, subject to the avail-
ability of appropriations, reimburse a contractor for costs
incurred by the contractor for qualified maintenance or repair
performed in the United States under this section.
(2) AMOUNT.—The amount of reimbursement shall be equal
to 80 percent of the difference between—
(A) the fair and reasonable cost of obtaining the quali-
fied maintenance or repair in the United States; and
(B) the fair and reasonable cost of obtaining the quali-
fied maintenance or repair outside the United States, in
the geographic region in which the vessel generally oper-
ates.
(3) DETERMINATION OF FAIR AND REASONABLE COSTS.—The
Secretary shall determine fair and reasonable costs for purposes
of paragraph (2).
(e) NOTIFICATION REQUIREMENTS.—
(1) NOTIFICATION BY CONTRACTOR.—The Secretary is not
required to pay reimbursement to a contractor under this sec-
tion for qualified maintenance or repair, unless the contractor—
(A) notifies the Secretary of the intent of the contractor
to obtain the qualified maintenance or repair, by not later
than 180 days before the date of the performance of the
qualified maintenance or repair; and
(B) includes in such notification—
(i) a description of all qualified maintenance or
repair that the contractor should reasonably expect
may be performed;
(ii) an estimate of the cost of obtaining such quali-
fied maintenance or repair in the United States; and
(iii) an estimate of the cost of obtaining such quali-
fied maintenance or repair outside the United States,
in the geographic region in which the vessel generally
operates.
(2) CERTIFICATION BY SECRETARY.—Not later than 60 days
after the date of receipt of notification under paragraph (1),
the Secretary shall certify to the contractor—
(A) whether there is a facility in the United States
available to perform the qualified maintenance or repair
described in the notification by the contractor under para-
graph (1); and
(B) whether there is available to the Secretary suffi-
cient funds to pay reimbursement under subsection (d)
with respect to such work.
H. R. 1588—407
(f) QUALIFIED MAINTENANCE OR REPAIR DEFINED.—In this sec-
tion the term ‘‘qualified maintenance or repair’’—
(1) except as provided in paragraph (2), means—
(A) any inspection of a vessel that is—
(i) required under chapter 33 of title 46, United
States Code; and
(ii) performed in the period in which the vessel
is subject to an agreement under this section; and
(B) any maintenance or repair of a vessel that is deter-
mined, in the course of an inspection referred to in subpara-
graph (A), to be necessary to comply with the laws of
the United States; and
(2) does not include—
(A) routine maintenance or repair; or
(B) any emergency work that is necessary to enable
a vessel to return to a port in the United States.
(g) ANALYSIS.—
(1) IN GENERAL.—Not later than October 1, 2004, the Sec-
retary of Transportation shall submit to the Committee on
Armed Services of the House of Representatives and the Com-
mittee on Armed Services and the Committee on Commerce,
Science, and Transportation of the Senate, an analysis of the
need for agreements authorized by this section.
(2) CONDUCT
AND
CONSIDERATIONS.—In conducting the
analysis, the Secretary shall consider the overall costs and
benefits of the pilot program, including the following:
(A) The impact on operations of vessels in the program.
(B) The availability of repair shipyards and drydocks
in the various regions of the United States (as that term
is defined in such chapter) that are capable of handling
such vessels that are ocean-going vessels.
(C) The experience of such shipyards in repairing the
types of such vessels.
(D) A comparison of drydock and repair costs between
available United States and foreign shipyards located
within the geographic range of the trading area of such
vessels.
(E) A comparison of the time period required for the
drydocking and repair of such vessels between available
United States shipyards and foreign shipyards.
(F) The impact of the voyage deviation of such vessels
to United States shipyards.
(G) The benefits to the Department of Defense of
having a vessel repair base in the United States to accel-
erate the activation of the Ready Reserve Fleet.
(H) The benefits of extending the program to all vessels
that are subject to operating agreements under chapter
531 of title 46, United States Code, as amended by this
Act.
(3) RECOMMENDATIONS.—The Secretary shall include in the
analysis recommendations of any additional incentives that
are necessary to encourage participation in the program.
(h) AUTHORIZATION
OF APPROPRIATIONS.—In addition to the
other amounts authorized by this subtitle, for reimbursement of
costs of qualified maintenance or repair under this section there
is authorized to be appropriated to the Secretary of Transportation
$19,500,000 for each of fiscal years 2006 through 2011.
H. R. 1588—408
Subtitle B—Amendments to Title XI Loan
Guarantee Program
SEC. 3521. EQUITY PAYMENTS BY OBLIGOR FOR DISBURSEMENT PRIOR
TO TERMINATION OF ESCROW AGREEMENT.
(a) IN GENERAL.—Section 1108 of the Merchant Marine Act,
1936 (46 U.S.C. App. 1279a) is amended by adding at the end
the following:
‘‘(g) PAYMENTS REQUIRED BEFORE DISBURSEMENT.—
‘‘(1) IN GENERAL.—No disbursement shall be made under
subsection (b) to any person until the total amount paid by
or for the account of the obligor from sources other than the
proceeds of the obligation equals at least 25 percent or 121⁄2
percent, whichever is applicable under section 1104A, of the
aggregate actual cost of the vessel, as previously approved
by the Secretary. If the aggregate actual cost of the vessel
has increased since the Secretary’s initial approval or if it
increases after the first disbursement is permitted under this
subsection, then no further disbursements shall be made under
subsection (b) until the total amount paid by or for the account
of the obligor from sources other than the proceeds of the
obligation equals at least 25 percent or 121⁄2 percent, as
applicable, of the increase, as determined by the Secretary,
in the aggregate actual cost of the vessel. Nothing in this
paragraph shall require the Secretary to consent to finance
any increase in actual cost unless the Secretary determines
that such an increase in the obligation meets all the terms
and conditions of this title or other applicable law.
‘‘(2) DOCUMENTED PROOF OF PROGRESS REQUIREMENT.—The
Secretary shall, by regulation, establish a transparent, inde-
pendent, and risk-based process for verifying and documenting
the progress of projects under construction before disbursing
guaranteed loan funds. At a minimum, the process shall require
documented proof of progress in connection with the construc-
tion, reconstruction, or reconditioning of a vessel or vessels
before disbursements are made from the escrow fund. The
Secretary may require that the obligor provide a certificate
from an independent party certifying that the requisite progress
in construction, reconstruction, or reconditioning has taken
place.’’.
(b) DEFINITION OF ACTUAL COST.—Section 1101(f) of the Mer-
chant Marine Act, 1936 (46 U.S.C. App. 1271(f)) is amended to
read as follows:
‘‘(f) ACTUAL COST DEFINED.—The term ‘actual cost’ means the
sum of—
‘‘(1) all amounts paid by or for the account of the obligor
as of the date on which a determination is made under section
1108(g)(1); and
‘‘(2) all amounts that the Secretary reasonably estimates
that the obligor will become obligated to pay from time to
time thereafter, for the construction, reconstruction, or recondi-
tioning of the vessel, including guarantee fees that will become
payable under section 1104A(e) in connection with all obliga-
tions issued for construction, reconstruction, or reconditioning
of the vessel or equipment to be delivered, and all obligations
issued for the delivered vessel or equipment.’’.
H. R. 1588—409
SEC. 3522. WAIVERS OF PROGRAM REQUIREMENTS.
Section 1104A(d) of the Merchant Marine Act, 1936 (46 U.S.C.
App. 1274(d)) is amended by redesignating paragraph (4) as para-
graph (5), and inserting after paragraph (3) the following:
‘‘(4) The Secretary shall promulgate regulations concerning
circumstances under which waivers of or exceptions to other-
wise applicable regulatory requirements concerning financial
condition can be made. The regulations shall require that—
‘‘(A) the economic soundness requirements set forth
in paragraph (1)(A) of this subsection are met after the
waiver of the financial condition requirement; and
‘‘(B) the waiver shall provide for the imposition of
other requirements on the obligor designed to compensate
for the increased risk associated with the obligor’s failure
to meet regulatory requirements applicable to financial
condition.’’.
SEC. 3523. PROJECT MONITORING.
(a) PROJECT MONITORING.—Section 1104A of the Merchant
Marine Act, 1936 (46 U.S.C. App. 1274) is amended by adding
at the end the following:
‘‘(k) MONITORING.—The Secretary shall monitor the financial
conditions and operations of the obligor on a regular basis during
the term of the guarantee. The Secretary shall document the results
of the monitoring on an annual or quarterly basis depending upon
the condition of the obligor. If the Secretary determines that the
financial condition of the obligor warrants additional protections
to the Secretary, then the Secretary shall take appropriate action
under subsection (m) of this section. If the Secretary determines
that the financial condition of the obligor jeopardizes its continued
ability to perform its responsibilities in connection with the guar-
antee of obligations by the Secretary, the Secretary shall make
an immediate determination whether default should take place
and whether further measures described in subsection (m) should
be taken to protect the interests of the Secretary while insuring
that program objectives are met.’’.
(b) SEPARATION OF DUTIES AND OTHER REQUIREMENTS.—Section
1104A of the Merchant Marine Act, 1936 (46 U.S.C. App. 1274),
as amended by subsection (a), is further amended by adding at
the end the following:
‘‘(l) REVIEW OF APPLICATIONS.—No commitment to guarantee,
or guarantee of, an obligation shall be made by the Secretary
unless the Secretary certifies that a full and fair consideration
of all the regulatory requirements, including economic soundness
and financial requirements applicable to obligors and related par-
ties, and a thorough assessment of the technical, economic, and
financial aspects of the loan application has been made.
‘‘(m) AGREEMENT WITH OBLIGOR.—The Secretary shall include
provisions in loan agreements with obligors that provide additional
authority to the Secretary to take action to limit potential losses
in connection with defaulted loans or loans that are in jeopardy
due to the deteriorating financial condition of obligors. Provisions
that the Secretary shall include in loan agreements include require-
ments for additional collateral or greater equity contributions that
are effective upon the occurrence of verifiable conditions relating
to the obligors financial condition or the status of the vessel or
shipyard project.’’.
H. R. 1588—410
SEC. 3524. DEFAULTS.
Section 1105 of the Merchant Marine Act, 1936 (46 U.S.C.
App. 1275) is amended by adding at the end the following:
‘‘(f) DEFAULT RESPONSE.—In the event of default on an obliga-
tion, the Secretary shall conduct operations under this title in
a manner which—
‘‘(1) maximizes the net present value return from the sale
or disposition of assets associated with the obligation, including
prompt referral to the Attorney General for collection as appro-
priate;
‘‘(2) minimizes the amount of any loss realized in the resolu-
tion of the guarantee;
‘‘(3) ensures adequate competition and fair and consistent
treatment of offerors; and
‘‘(4) requires appraisal of assets by an independent
appraiser.’’.
SEC. 3525. DECISION PERIOD.
Section 1104A of the Merchant Marine Act, 1936 (46 U.S.C.
App. 1274), as amended by section 3523, is amended by adding
at the end the following:
‘‘(n) DECISION PERIOD.—
‘‘(1) IN GENERAL.—The Secretary of Transportation shall
approve or deny an application for a loan guarantee under
this title within 270 days after the date on which the signed
application is received by the Secretary.
‘‘(2) EXTENSION.—Upon request by an applicant, the Sec-
retary may extend the 270-day period in paragraph (1) to
a date not later than 2 years after the date on which the
signed application for the loan guarantee was received by the
Secretary.’’.
SEC. 3526. LOAN GUARANTEES.
Section 1104A of the Merchant Marine Act, 1936 (46 U.S.C.
App. 1274) is amended—
(1) by striking subsection (d)(5); and
(2) in subsection (f)—
(A) by striking ‘‘(including for obtaining independent
analysis under subsection (d)(4))’’;
(B) by inserting ‘‘(1)’’ after ‘‘(f)’’; and
(C) by adding at the end the following:
‘‘(2) The Secretary may make a determination that aspects
of an application under this title require independent analysis to
be conducted by third party experts due to risk factors associated
with markets, technology, financial structures, or other risk factors
identified by the Secretary. Any independent analysis conducted
pursuant to this provision shall be performed by a party chosen
by the Secretary.
‘‘(3) Notwithstanding any other provision of this title, the Sec-
retary may make a determination that an application under this
title requires additional equity because of increased risk factors
associated with markets, technology, financial structures, or other
risk factors identified by the Secretary.
‘‘(4) The Secretary may charge and collect fees to cover the
costs of independent analysis under paragraph (2). Notwithstanding
section 3302 of title 31, United States Code, any fee collected
under this paragraph shall—