195 
‘‘§ 55316. Financing the transportation of agricultural com-
modities 
‘‘(a) FINANCING OF INCREASED CHARGES.—The Secretary of Transpor-
tation shall finance any increased ocean freight charges incurred in any fis-
cal year that result from the application of section 55314 of this title. 
‘‘(b) REIMBURSEMENT OF INCREASED CHARGES.— 
‘‘(1) IN GENERAL.—The Secretary of Transportation shall reimburse 
the Secretary of Agriculture and the Commodity Credit Corporation for 
the amount by which, in any fiscal year— 
‘‘(A) the total cost of ocean freight and ocean freight differen-
tial for which obligations are incurred by the Secretary of Agri-
culture and the Corporation on exports of agricultural commodities 
and their products under the agricultural export programs speci-
fied in section 55314(b) of this title; exceeds 
‘‘(B) 20 percent of the value of the commodities and their prod-
ucts and the cost of the ocean freight and ocean freight differen-
tial on which obligations are incurred by the Secretary of Agri-
culture and the Corporation during that fiscal year. 
‘‘(2) COMMODITIES SHIPPED FROM INVENTORY.—For purposes of 
this subsection, commodities shipped from the inventory of the Cor-
poration shall be valued as provided in section 412(d) of the Agricul-
tural Trade Development and Assistance Act of 1954 (7 U.S.C. 
1736f(d)). 
‘‘(c) ISSUANCE AND PURCHASE OF OBLIGATIONS.— 
‘‘(1) ISSUANCE.—To meet the expenses required to be assumed 
under subsections (a) and (b), the Secretary of Transportation shall 
issue obligations to the Secretary of the Treasury. The Secretary of 
Transportation, with the approval of the Secretary of the Treasury, 
shall prescribe the form, denomination, maturity, and other terms (ex-
cept the interest rate) of the obligations. The Secretary of the Treasury 
shall set the interest rate for the obligations, considering the average 
market yield on outstanding marketable obligations of the United 
States Government of comparable maturities during the month before 
the obligations are issued. 
‘‘(2) PURCHASE.—The Secretary of the Treasury shall purchase the 
obligations issued under this subsection. To purchase the obligations, 
the Secretary of the Treasury may use as a public debt transaction the 
proceeds from the sale of securities issued under chapter 31 of title 31. 
The purposes for which securities may be issued under that chapter are 
extended to include the purchase of obligations under this subsection. 
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A redemption or purchase of the obligations by the Secretary of the 
Treasury is a public debt transaction of the Government. 
‘‘(d) SOURCE OF FUNDS FOR REIMBURSEMENT.—Reimbursement of the 
Secretary of Transportation for costs incurred under this section shall be 
made with appropriated funds rather than through cancellation of notes. 
‘‘(e) APPROPRIATIONS.— 
‘‘(1) AUTHORIZATION.—Each fiscal year, there is authorized to be 
appropriated an amount sufficient to reimburse the Secretary of Trans-
portation for the costs incurred under this section, including adminis-
trative expenses and the principal and interest due on obligations 
issued to the Secretary of the Treasury. 
‘‘(2) APPROPRIATION FOR ADMINISTRATIVE EXPENSES.—Each fiscal 
year, such amounts as may be necessary are hereby appropriated to 
pay interest and to liquidate debt on obligations issued to the Secretary 
of the Treasury under this section. 
‘‘(f) NOTIFICATION TO CONGRESS OF INSUFFICIENCY.—If the Secretary 
of Transportation is unable to obtain the funds necessary to finance the in-
creased ocean freight charges resulting from the requirements of subsections 
(a) and (b) and section 55314(a) of this title, the Secretary shall notify 
Congress within 10 working days of the discovery of the insufficiency. 
‘‘§ 55317. Termination of subchapter 
‘‘This subchapter terminates 90 days after the date on which a notifica-
tion is made under section 55316(f) of this title, except for shipments of 
agricultural commodities and their products subject to contracts made be-
fore the end of that 90-day period, unless within that 90-day period the Sec-
retary of Transportation proclaims that funds are available to finance in-
creased freight charges resulting from the requirements of sections 
55314(a) and 55316(a) and (b) of this title. On the termination of this sub-
chapter under this section— 
‘‘(1) this subchapter does not exempt export activities from, or sub-
ject export activities to, the cargo preference laws; and 
‘‘(2) the 50-percent requirement in section 55305 of this title re-
mains in effect. 
‘‘§ 55318. Effect on other law 
‘‘This subchapter does not affect chapter 5 of title 5. 
‘‘SUBCHAPTER III—AMERICAN GREAT LAKES VESSELS 
‘‘§ 55331. Definitions 
‘‘In this subchapter: 
‘‘(1) AMERICAN GREAT LAKES VESSEL.—The term ‘American Great 
Lakes vessel’ means a vessel so designated under section 55332 of this 
title, but only during the period the designation is in effect. 
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‘‘(2) GREAT LAKES.—The term ‘Great Lakes’ means Lake Superior, 
Lake Michigan, Lake Huron, Lake Erie, Lake Ontario, the Saint Law-
rence River west of Saint Regis, New York, and their connecting and 
tributary waters. 
‘‘(3) GREAT
LAKES
SHIPPING
SEASON.—The term ‘Great Lakes 
shipping season’ means the period each year during which the Saint 
Lawrence Seaway is open for navigation by vessels, as declared by the 
Saint Lawrence Seaway Development Corporation. 
‘‘§ 55332. Designating American Great Lakes vessels 
‘‘(a) DESIGNATIONS.—The Secretary of Transportation shall designate a 
vessel as an American Great Lakes vessel if— 
‘‘(1) an application for designation is submitted to the Secretary 
under regulations prescribed by the Secretary; 
‘‘(2) the vessel is documented under the laws of the United States; 
‘‘(3) the vessel, on the effective date of the designation, is— 
‘‘(A) at least 1, but not more than 6, years old; or 
‘‘(B) at least 1, but not more than 11, years old if the Secretary 
finds that suitable vessels are not available to provide the type of 
service for which the vessel will be used after the designation; 
‘‘(4) the vessel has not previously been designated as an American 
Great Lakes vessel; and 
‘‘(5) the owner makes an agreement as provided under subsection 
(b). 
‘‘(b) AGREEMENTS.—A vessel may be designated as an American Great 
Lakes vessel only if the person that will be the owner of the vessel at the 
time of the designation makes an agreement with the Secretary providing 
that if the Secretary determines that the vessel is necessary to the defense 
of the United States, the United States Government will have an exclusive 
right, during the 120-day period following the date of a revocation of the 
designation under section 55335 of this title, to purchase the vessel for a 
price equal to the greater of— 
‘‘(1) the approximate world market value of the vessel; or 
‘‘(2) the cost of the vessel to the owner less a reasonable amount 
for depreciation. 
‘‘(c) CERTAIN FOREIGN DOCUMENTATION
AND SALE NOT PROHIB-
ITED.—Notwithstanding any other law, if the Government does not exercise 
its right of purchase under an agreement under subsection (b), the owner 
of the vessel is not prohibited from— 
‘‘(1) documenting the vessel under the laws of a foreign country; or 
‘‘(2) selling the vessel to a person not a citizen of the United States. 
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‘‘(d) REGULATIONS.—The Secretary shall prescribe regulations estab-
lishing requirements for submitting applications under this section. 
‘‘§ 55333. Exemption from restriction on transporting cer-
tain cargo 
‘‘The 3-year documentation requirement of section 55305(a) of this title 
does not apply to a vessel designated as an American Great Lakes vessel 
during the period of its designation. 
‘‘§ 55334. Restrictions on operations 
‘‘(a) PROHIBITIONS.—Except as provided in subsection (b), an American 
Great Lakes vessel may not be used to— 
‘‘(1) engage in trade— 
‘‘(A) from a port in the United States that is not located on 
the Great Lakes; or 
‘‘(B) between ports in the United States; 
‘‘(2) transport bulk cargo (as defined in section 40102 of this title) 
that is subject to section 55305 or 55314 of this title or section 2631 
of title 10; or 
‘‘(3) provide a service (except ocean freight service) as— 
‘‘(A) a contract carrier; or 
‘‘(B) a common carrier on a fixed advertised schedule offering 
frequent sailings at regular intervals in the foreign trade of the 
United States. 
‘‘(b) OFF-SEASON EXCEPTION.—An American Great Lakes vessel may be 
used for not more than 90 days during any 12-month period to engage in 
trade prohibited by subsection (a)(1)(A), except during the Great Lakes 
shipping season. 
‘‘§ 55335. Revocations and terminations of designations 
‘‘(a) REVOCATIONS.—After notice and an opportunity for a hearing, the 
Secretary of Transportation may revoke a designation of a vessel as an 
American Great Lakes vessel if the Secretary finds that— 
‘‘(1) the vessel does not meet a requirement for the designation; 
‘‘(2) the vessel has been operated in violation of this subchapter; or 
‘‘(3) the owner or operator of the vessel has violated an agreement 
made under section 55332(b) of this title. 
‘‘(b) TERMINATIONS.—On petition and a showing of good cause by the 
owner of a vessel, the Secretary may terminate the designation of a vessel 
as an American Great Lakes vessel. The Secretary may impose conditions 
in a termination order to prevent significant adverse effects on other opera-
tors of vessels of the United States. 
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