‘‘(i) The Secretary may not, with respect to—
‘‘(1) the general 75 percent or less limitation in
subsection (b)(2);
‘‘(2) the 871⁄2 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 sub-
section (b) the following flush sentence:
‘‘The Secretary may not by rule, regulation, or procedure
establish any percentage within the 871⁄2 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 MODERNIZA-
TION 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 pre-
scribe, may guarantee or make a commitment to guaran-
tee the payment of the principal of, and the interest on,
an obligation for advanced shipbuilding technology and
modern shipbuilding technology of a general shipyard fa-
cility 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 guar-
antee made under this section may be in the aggregate
principal amount that does not exceed 871⁄2 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 tech-
nology’ includes—
‘‘(A) numerically controlled machine tools,
robots, automated process control equipment,
computerized flexible manufacturing systems,
associated computer software, and other tech-
nology for improving shipbuilding and related
industrial production which advance the state-
of-the-art; and
‘‘(B) novel techniques and processes de-
signed to improve shipbuilding quality, produc-
tivity, and practice, and to promote sustainable
development, 
including 
engineering 
design,
quality assurance, concurrent engineering, con-
tinuous process production technology, energy
efficiency, 
waste 
minimization, 
design 
for
recyclability or parts reuse, inventory manage-
ment, upgraded worker skills, and communica-
tions with customers and suppliers.
‘‘(2) The term ‘modern shipbuilding technology’
means the best available proven technology, tech-
niques, 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, re-
pair, rehabilitation, refurbishment or re-
building 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 struc-
ture or appurtenance described in clause
(i); and
‘‘(iii) equipment that is for the use in
connection with any structure or appur-
tenance and that is necessary for the per-
formance 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 fa-
cilities (as defined in section 1111(d)(3)).’’.
SEC. 203. AUTHORIZATIONS OF APPROPRIATIONS.
(a) AUTHORIZATION OF APPROPRIATIONS TO DE-
PARTMENT OF DEFENSE.—There is authorized to be ap-
propriated 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 Cred-
it 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 en-
tered 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 Re-
form Act of 1990) of new loan guarantee commit-
ments under section 1111 of the Merchant Marine
Act, 1936, as added by section 202.
(b) AUTHORIZATIONS FOR DEPARTMENT OF TRANS-
PORTATION.—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 sub-
section (a), of which—
(1) $8,000,000 shall be for administrative costs
related to new loan guarantee commitments de-
scribed in paragraph (1) of that subsection; and
(2) $2,000,000 shall be for administrative costs
related to new loan guarantee commitments de-
scribed in paragraph (2) of that subsection.
(c) AVAILABLITY
OF AMOUNTS.—Amounts appro-
priated under the authority of this section shall remain
available until expended.
(d) TRANSFER
TO
SECRETARY
OF
TRANSPOR-
TATION.—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 ship-
yard 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 ca-
pabilities 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 de-
termined 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 TRANSPOR-
TATION.—The Secretary of Defense may not approve as-
sistance for construction of a series of vessels in a ship-
yard unless the Secretary of Transportation has deter-
mined the following:
(1) 
VESSEL
REQUIREMENTS.—The 
vessels
are—
(A) commercial vessels of at least 10,000
gross tons; and
(B) commercially marketable on the inter-
national 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 addi-
tional vessels of the same type as those in the
series for a price that is competitive in the
international market.
(3) APPLICANT
REQUIREMENTS.—The appli-
cant 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 bind-
ing 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 con-
tract; and
(B) the making of a guarantee or commit-
ment to guarantee obligations under title XI of
the Merchant Marine Act, 1936 (46 App.
U.S.C. 1273), as amended by this Act, for con-
struction under the contract.
(5) PURCHASER REQUIREMENTS.—Each person
that is a purchaser of a vessel under a contract re-
quired under paragraph (3)(B)—
(A) has the ability, financial resources, and
other qualifications necessary to own and oper-
ate 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 ef-
fective;
(2) for which the total of the series transition
payments determined under section 303 for all ves-
sels in the series is less than that total for other se-
ries 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 PAY-
MENTS.
(a) IN GENERAL.—The Secretary of Transportation
shall determine the series transition payment for each ves-
sel in a series of vessels for which an application for assist-
ance under this title is received by the Secretary of De-
fense.
is based on the construction schedule for vessels for
which the assistance is paid.
(3) TERMINATION OF AGREEMENT.—An agree-
ment under this subsection shall authorize the Sec-
retary 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 ap-
plies, 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 effective-
ness 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 para-
graph (2), a requirement that the Secretary of De-
fense 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 Sec-
retary of Defense terminates a series construction
agreement pursuant to subsection (a)(3), the obliga-
tion 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 ves-
sels shall include the following:
(1) A detailed description of the type of vessels
included in the series, including plans and specifica-
tions for the vessels.
(2) Detailed estimates of the cost of completing
construction of each of the vessels in the series, in-
cluding such estimates from subcontractors for the
construction as may be required by the Secretary of
Defense.
(3) Copies of the contracts required under sec-
tion 302(b)(3)(B).
(4) Other information required by the Secretary
to fulfill the requirements of this title.
(c) TRANSMITTAL
TO SECRETARY
OF TRANSPOR-
TATION.—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 submit-
ting 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 do-
mestic trade authorized under a registry endorse-
ment 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 inter-
national agreement entered into after the date of the
enactment of this Act that prohibits that payment.
TITLE 
IV—DOUBLE 
HULL 
RE-
QUIREMENT 
FOR 
TANKERS
CHARTERED 
BY 
DEPART-
MENT 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 sub-
section:
‘‘(g) After December 31, 1994, the Secretary of De-
fense 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 satis-
fies 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 pe-
riod of at least 10 years.’’.
SEC. 402. PROHIBITION ON ENTERING INTO, RENEWING, OR
EXTENDING CERTAIN CHARTERS FOR TANK-
ERS.
Notwithstanding any other law, between the date of
the enactment of this Act, and January 1, 1995, the Sec-
retary of Defense may not enter into, renew, or extend
a contract for a charter of a tanker that expires after De-
cember 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.
Æ
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