H. R. 2401—263
‘‘(m) ADMINISTRATIVE EXPENSES.—Not more than 2 percent of
the funds available to the Secretary of Defense to carry out this
section for any fiscal year may be retained by the Secretary of
Defense for the administration of activities authorized under this
section.
‘‘(n) 
COORDINATION
WITH
TECHNOLOGY
REINVESTMENT
PROJECTS.—The Secretary of Defense, in consultation with the Sec-
retary of Labor, shall ensure that activities carried out under this
section are coordinated with relevant activities carried out pursuant
to title IV of the Department of Defense Appropriations Act, 1993
(Public Law 102–396; 106 Stat. 1890).’’.
Subtitle D—National Shipbuilding
Initiative
SEC. 1351. SHORT TITLE.
This subtitle may be cited as the ‘‘National Shipbuilding and
Shipyard Conversion Act of 1993’’.
SEC. 1352. NATIONAL SHIPBUILDING INITIATIVE.
(a) ESTABLISHMENT OF PROGRAM.—There shall be a National
Shipbuilding Initiative program, to be carried out to support the
industrial base for national security objectives by assisting in the
reestablishment of the United States shipbuilding industry as a
self-sufficient, internationally competitive industry.
(b) ADMINISTERING DEPARTMENTS.—The program shall be car-
ried out—
(1) by the Secretary of Defense, with respect to programs
under the jurisdiction of the Secretary of Defense; and
(2) by the Secretary of Transportation, with respect to
programs under the jurisdiction of the Secretary of Transpor-
tation.
(c) PROGRAM ELEMENTS.—The National Shipbuilding Initiative
shall consist of the following program elements:
(1) FINANCIAL INCENTIVES PROGRAM.—A financial incentives
program to provide loan guarantees to initiate commercial ship
construction for domestic and export sales, encourage shipyard
modernization, and support increased productivity.
(2) TECHNOLOGY
DEVELOPMENT
PROGRAM.—A technology
development program, to be carried out within the Department
of Defense by the Advanced Research Projects Agency, to
improve the technology base for advanced shipbuilding tech-
nologies and related dual-use technologies through activities
including a development program for innovative commercial
ship design and production processes and technologies.
(3) NAVY’S
AFFORDABILITY
THROUGH
COMMONALITY
PRO-
GRAM.—Enhanced support by the Secretary of Defense for the
shipbuilding program of the Department of the Navy known
as the Affordability Through Commonality (ATC) program, to
include enhanced support (A) for the development of common
modules for military and commercial ships, and (B) to foster
civil-military integration into the next generation of Naval sur-
face combatants.
(4) NAVY’S MANUFACTURING TECHNOLOGY AND TECHNOLOGY
BASE
PROGRAMS.—Enhanced support by the Secretary of
Defense for, and strengthened funding for, that portion of the
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H. R. 2401—264
Manufacturing Technology program of the Navy, and that por-
tion of the Technology Base program of the Navy, that are
in the areas of shipbuilding technologies and ship repair tech-
nologies.
SEC. 1353. DEPARTMENT 
OF 
DEFENSE 
PROGRAM 
MANAGEMENT
THROUGH ADVANCED RESEARCH PROJECTS AGENCY.
The Secretary of Defense shall designate the Advanced
Research Projects Agency of the Department of Defense as the
lead agency of the Department of Defense for activities of the
Department of Defense which are part of the National Shipbuilding
Initiative program. Those activities shall be carried out as part
of defense conversion activities of the Department of Defense.
SEC. 1354. ADVANCED RESEARCH PROJECTS AGENCY FUNCTIONS
AND MINIMUM FINANCIAL COMMITMENT OF NON-FED-
ERAL GOVERNMENT PARTICIPANTS.
(a) ARPA FUNCTIONS.—The Secretary of Defense, acting
through the Director of the Advanced Research Projects Agency,
shall carry out the following functions with respect to the National
Shipbuilding Initiative program:
(1) Consultation with the Maritime Administration, the
Office of Economic Adjustment, the National Economic Council,
the National Shipbuilding Research Project, the Coast Guard,
the National Oceanic and Atmospheric Administration, appro-
priate naval commands and activities, and other appropriate
Federal agencies on—
(A) development and transfer to the private sector
of dual-use shipbuilding technologies, ship repair tech-
nologies, and shipbuilding management technologies;
(B) assessments of potential markets for maritime
products; and
(C) recommendation of industrial entities, partner-
ships, joint ventures, or consortia for short- and long-term
manufacturing technology investment strategies.
(2) Funding and program management activities to develop
innovative design and production processes and the technologies
required to implement those processes.
(3) Facilitation of industry and Government technology
development and technology transfer activities (including edu-
cation and training, market assessments, simulations, hard-
ware models and prototypes, and national and regional indus-
trial base studies).
(4) Integration of promising technology advances made in
the Technology Reinvestment Program of the Advanced
Research Projects Agency into the National Shipbuilding Initia-
tive to effect full defense conversion potential.
(b) FINANCIAL COMMITMENT
OF NON-FEDERAL GOVERNMENT
PARTICIPANTS.—
(1) MAXIMUM DEPARTMENT OF DEFENSE SHARE.—The Sec-
retary of Defense shall ensure that the amount of funds pro-
vided by the Secretary to a non-Federal government participant
does not exceed 50 percent of the total cost of technology
development and technology transfer activities.
(2) REGULATIONS.—The Secretary may prescribe regula-
tions to provide for consideration of in-kind contributions by
non-Federal Government participants in a partnership for the
purpose of calculating the share of the partnership costs that
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H. R. 2401—265
has been or is being undertaken by such participants. In
prescribing the regulations, the Secretary may determine that
a participant that is a small business concern may use funds
received under the Small Business Innovation Research Pro-
gram or the Small Business Technology Transfer Program to
help pay the costs of partnership activities. Any such funds
so used may be included in calculating the amount of the
financial commitment undertaken by the non-Federal Govern-
ment participants unless the Secretary determines that the
small business concern has not made a significant equity con-
tribution in the program from non-Federal sources.
SEC. 1355. AUTHORITY FOR SECRETARY OF TRANSPORTATION TO
MAKE LOAN GUARANTEES.
(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) AUTHORITY TO GUARANTEE OBLIGATIONS FOR
ELIGIBLE EXPORT VESSELS.—The Secretary may guarantee obliga-
tions for eligible export vessels—
‘‘(1) in accordance with the terms and conditions of this
title applicable to loan guarantees in the case of vessels docu-
mented under the laws of the United States; or
‘‘(2) in accordance with such other terms as the Secretary
determines to be more favorable than the terms otherwise
provided in this title and to be compatible with export credit
terms offered by foreign governments for the sale of vessels
built in foreign shipyards.
‘‘(b) INTERAGENCY COUNCIL.—
‘‘(1) ESTABLISHMENT; COMPOSITION.—There is hereby estab-
lished an interagency council for the purposes of this section.
The council shall be composed of the Secretary of Transpor-
tation, who shall be chairman of the Council, the Secretary
of the Treasury, the Secretary of State, the Assistant to the
President for Economic Policy, the United States Trade Rep-
resentative, and the President and Chairman of the United
States Export-Import Bank, or their designees.
‘‘(2) PURPOSE OF THE COUNCIL.—The council shall—
‘‘(A) obtain information on shipbuilding loan guarantees,
on direct and indirect subsidies, and on other favorable treat-
ment of shipyards provided by foreign governments to shipyards
in competition with United States shipyards; and
‘‘(B) provide guidance to the Secretary in establishing terms
for loan guarantees for eligible export vessels under subsection
(a)(2).
‘‘(3) CONSULTATION WITH U.S. SHIPBUILDERS.—The council shall
consult regularly with United States shipbuilders to obtain the
essential information concerning international shipbuilding com-
petition on which to set terms and conditions for loan guarantees
under subsection (a)(2).
‘‘(4) ANNUAL REPORT.—Not later than January 31 of each year
(beginning in 1995), the Secretary of Transportation shall submit
to Congress a report on the activities of the Secretary under this
section during the preceding year. Each report shall include docu-
mentation of sources of information on assistance provided by the
governments of other nations to shipyards in those nations and
a summary of recommendations made to the Secretary during the
preceding year regarding applications submitted to the Secretary
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H. R. 2401—266
during that year for loan guarantees under this title for construction
of eligible export vessels.’’.
(b) IMPLEMENTATION.—
(1) INITIAL
DESIGNATION
OF
COUNCIL
MEMBERS.—Each
member of the council established under section 1111(b) of
the Merchant Marine Act, 1936, as added by subsection (a),
shall name a designee for service on the council not later
than 30 days after the date of the enactment of this Act.
Each such member shall promptly notify the Secretary of
Transportation of that designation.
(2) DESIGNATION OF SENIOR MARAD OFFICIAL.—Not later
than 30 days after the date of the enactment of this Act,
the Secretary of Transportation shall designate a senior official
within the Maritime Administration to have the responsibility
and authority to carry out the terms and conditions set forth
under section 1111 of title XI the Merchant Marine Act, 1936,
as added by subsection (a). The Secretary shall make the des-
ignation of that official known through a public announcement
in a national periodical.
SEC. 1356. LOAN GUARANTEES FOR EXPORT VESSELS.
Title XI of the Merchant Marine Act, 1936 (46 App. U.S.C.
1271 et seq.) is amended as follows:
(1) ELIGIBLE
EXPORT
VESSEL
DEFINED.—Section 1101 is
amended by adding at the end the following new subsection:
‘‘(o) The term ‘eligible export vessel’ means a vessel constructed,
reconstructed, or reconditioned in the United States for use in
world-wide trade which will, upon delivery or redelivery, be placed
under or continued to be documented under the laws of a country
other than the United States.’’.
(2) LIMITATIONS
ON
GUARANTEE
OBLIGATIONS.—Section
1103 is amended—
(A) by amending the first sentence of subsection (f)
to read as follows: ‘‘The aggregate unpaid principal amount
of the obligations guaranteed under this section and
outstanding 
at 
any 
one 
time 
shall 
not 
exceed
$12,000,000,000, of which (1) $850,000,000 shall be limited
to obligations pertaining to guarantees of obligations for
fishing vessels and fishery facilities made under this title,
and (2) $3,000,000,000 shall be limited to obligations
pertaining to guarantees of obligations for eligible export
vessels.’’; and
(B) by adding at the end the following new subsection:
‘‘(g)(1) The Secretary may not issue a commitment to guarantee
obligations for an eligible export vessel unless, after considering—
‘‘(A) the status of pending applications for commitments
to guarantee obligations for vessels documented under the laws
of the United States and operating or to be operated in the
domestic or foreign commerce of the United States,
‘‘(B) the economic soundness of the applications referred
to in subparagraph (A), and
‘‘(C) the amount of guarantee authority available,
the Secretary determines, in the sole discretion of the Secretary,
that the issuance of a commitment to guarantee obligations for
an eligible export vessel will not result in the denial of an economi-
cally sound application to issue a commitment to guarantee obliga-
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