(1) FINANCIAL
INCENTIVES
PROGRAM.—A fi-
nancial incentives program to provide loan guaran-
tees to initiate commercial ship construction for do-
mestic and export sales, encourage shipyard mod-
ernization, and support increased productivity, as
provided in title XI of the Merchant Marine Act,
1936 (as amended by title II of this Act).
(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 technologies and re-
lated dual-use technologies through activities includ-
ing a development program for innovative commer-
cial ship design and production processes and tech-
nologies.
(3) NAVY’S
AFFORDABILITY
THROUGH
COM-
MONALITY
PROGRAM.—Enhanced support by the
Secretary of Defense for the shipbuilding program of
the Department of the Navy known as the Afford-
ability Through Commonality (ATC) program, to in-
clude 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 surface 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 Manufacturing
Technology program of the Navy, and that portion
of the Technology Base program of the Navy, that
are in the areas of shipbuilding technologies and
ship repair technologies.
SEC. 102. DEPARTMENT OF DEFENSE PROGRAM MANAGE-
MENT 
THROUGH 
ADVANCED 
RESEARCH
PROJECTS AGENCY.
The Secretary of Defense shall designate the Ad-
vanced 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 ac-
tivities shall be carried out as part of defense conversion
activities of the Department of Defense.
SEC. 103. ADVANCED RESEARCH PROJECTS AGENCY FUNC-
TIONS.
The Secretary of Defense, acting through the Direc-
tor 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 Administra-
tion, the Office of Economic Adjustment, the Na-
tional Economic Council, the National Shipbuilding
Research Project, the Coast Guard, appropriate
naval commands and activities, and other appro-
priate Federal agencies on—
(A) development and transfer to the pri-
vate sector of dual-use shipbuilding tech-
nologies, ship repair technologies, and ship-
building management technologies;
(B) assessments of potential markets for
maritime product; and
(C) recommendation of industrial entities,
partnerships, joint ventures, or consortia for
short- and long-term manufacturing technology
investment strategies.
(2) Funding and program management activi-
ties 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 ac-
tivities (including education and training, market as-
sessments, simulations, hardware models and proto-
types, and national and regional industrial base
studies).
(4) Integration of promising technology ad-
vances made in the Technology Reinvestment Pro-
gram of the Advanced Research Projects Agency
into the National Shipbuilding Initiative to effect
full defense conversion potential.
SEC. 104. ELIGIBLE SHIPYARDS.
To be eligible to receive any assistance or otherwise
to participate in any program carried out under the Na-
tional Shipbuilding Initiative, a shipyard must be a private
shipyard located in the United States.
TITLE II—GUARANTEES OF OBLI-
GATIONS FOR VESSEL CON-
STRUCTION 
AND 
UNITED
STATES 
SHIPYARD 
MOD-
ERNIZATION
SEC. 201. 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.—Sec-
tion 1101 is amended by adding at the end the fol-
lowing 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 deliv-
ery or redelivery, be placed under or continued to be docu-
mented under the laws of a country other than the United
States.’’.
(2) LIMITATIONS
ON
GUARANTEE
OBLIGA-
TIONS.—Section 1103 is amended—
(A) by amending the first sentence of sub-
section (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 eligi-
ble 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 un-
less, after considering—
‘‘(A) the status of pending applications for com-
mitments to guarantee obligations for vessels docu-