1167 
umented under chapter 121 of this title if 
it is included in the Fleet; and 
‘‘(ii) at the time an operating agree-
ment for the vessel is entered into under 
this chapter, the vessel is eligible for docu-
mentation under chapter 121 of this 
title.’’. 
(c) Section 53103 of such title is amended— 
(1) by amending subsection (b) to read as fol-
lows: 
‘‘(b) EXTENSION OF EXISTING OPERATING AGREE-
MENTS.— 
‘‘(1) OFFER TO EXTEND.—Not later than 60 
days after the date of enactment of this paragraph, 
the Secretary shall offer, to an existing contractor, 
to extend, through September 30, 2025, an oper-
ating agreement that is in existence on the date of 
enactment of this paragraph. The terms and condi-
tions of the extended operating agreement shall in-
clude terms and conditions authorized under this 
chapter, as amended from time to time. 
‘‘(2) TIME LIMIT.—An existing contractor shall 
have not later than 120 days after the date the Sec-
retary offers to extend an operating agreement to 
agree to the extended operating agreement.
1168 
‘‘(3) SUBSEQUENT
AWARD.—The Secretary 
may award an operating agreement to an applicant 
that is eligible to enter into an operating agreement 
for fiscal years 2016 through 2025 if the existing 
contractor does not agree to the extended operating 
agreement under paragraph (2).’’; and 
(2) by amending subsection (c) to read as fol-
lows: 
‘‘(c) PROCEDURE FOR AWARDING NEW OPERATING 
AGREEMENTS.—The Secretary may enter into a new oper-
ating agreement with an applicant that meets the require-
ments of section 53102(c) (for vessels that meet the quali-
fications of section 53102(b)) on the basis of priority for 
vessel type established by military requirements of the 
Secretary of Defense. The Secretary shall allow an appli-
cant at least 30 days to submit an application for a new 
operating agreement. After consideration of military re-
quirements, priority shall be given to an applicant that 
is a United States citizen under section 50501 of this title. 
The Secretary may not approve an application without the 
consent of the Secretary of Defense. The Secretary shall 
enter into an operating agreement with the applicant or 
provide a written reason for denying the application.’’. 
(d) Section 53104 of such title is amended—
1169 
(1) in subsection (c), by striking paragraph (3); 
and 
(2) in subsection (e), by striking ‘‘an operating 
agreement under this chapter is terminated under 
subsection (c)(3), or if’’. 
(e) Section 53105 of such title is amended— 
(1) by amending subsection (e) to read as fol-
lows: 
‘‘(e) TRANSFER OF OPERATING AGREEMENTS.—A 
contractor under an operating agreement may transfer the 
agreement (including all rights and obligations under the 
operating agreement) to any person that is eligible to 
enter into the operating agreement under this chapter if 
the Secretary and the Secretary of Defense determine that 
the transfer is in the best interests of the United States. 
A transaction shall not be considered a transfer of an op-
erating agreement if the same legal entity with the same 
vessels remains the contracting party under the operating 
agreement.’’; and 
(2) by amending subsection (f) to read as fol-
lows: 
‘‘(f) REPLACEMENT VESSELS.—A contractor may re-
place a vessel under an operating agreement with another 
vessel that is eligible to be included in the Fleet under 
section 53102(b), if the Secretary, in conjunction with the
1170 
Secretary of Defense, approves the replacement of the ves-
sel.’’. 
(f) Section 53106 of such title is amended— 
(1) in subsection (a)(1), by striking ‘‘and (C) 
$3,100,000 for each of fiscal years 2012 through 
2025.’’ and inserting the following: 
‘‘(C) $3,100,000 for each of fiscal years 
2012, 2013, 2014, 2015, 2016, 2017, and 
2018; 
‘‘(D) $3,500,000 for each of fiscal years 
2019, 2020, and 2021; and 
‘‘(E) $3,700,000 for each of fiscal years 
2022, 2023, 2024, and 2025.’’; 
(2) in subsection (c)(3)(C), by striking ‘‘a 
LASH vessel.’’ and inserting ‘‘a lighter aboard ship 
vessel.’’; and 
(3) by striking subsection (f). 
(g) Section 53107(b)(1) is amended to read as fol-
lows: 
‘‘(1) IN GENERAL.—An Emergency Prepared-
ness Agreement under this section shall require that 
a contractor for a vessel covered by an operating 
agreement under this chapter shall make commercial 
transportation resources (including services) avail-
able, upon request by the Secretary of Defense dur-
1171 
ing a time of war or national emergency, or when-
ever the Secretary of Defense determines that it is 
necessary for national security or contingency oper-
ation (as that term is defined in section 101 of title 
10, United States Code).’’. 
(h) Section 53109 is repealed. 
(i) Section 53111 is amended— 
(1) by striking ‘‘and’’ at the end of paragraph 
(2); and 
(2) by amending paragraph (3) to read as fol-
lows: 
‘‘(3) $186,000,000 for each of fiscal years 
2012, 2013, 2014, 2015, 2016, 2017, and 2018; 
‘‘(4) $210,000,000 for each of fiscal years 
2019, 2020, and 2021; and 
‘‘(5) $222,000,000 for each fiscal year there-
after through fiscal year 2025.’’. 
(j) EFFECTIVE
DATE
OF
AMENDMENTS.—The 
amendments made by— 
(1) paragraphs (2), (3), and (4) of section 
3308(a) of this Act take effect on December 31, 
2014; and 
(2) section 3308(f)(2) of this Act take effect on 
December 31, 2014.