H. R. 2401—267
tions for vessels documented under the laws of the United States
operating in the domestic or foreign commerce of the United States.
‘‘(2) The Secretary may not issue commitments to guarantee
obligations for eligible export vessels under this section after the
later of—
‘‘(A) the 5th anniversary of the date on which the Secretary
publishes final regulations setting forth the application proce-
dures for the issuance of commitments to guarantee obligations
for eligible export vessels,
‘‘(B) the last day of any 5-year period in which funding
and guarantee authority for obligations for eligible export ves-
sels have been continuously available, or
‘‘(C) the last date on which those commitments may be
issued under any treaty or convention entered into after the
date of the enactment of the National Shipbuilding and Ship-
yard Conversion Act of 1993 that prohibits guarantee of those
obligations.’’.
(3) AUTHORITY TO GUARANTEE OBLIGATIONS FOR ELIGIBLE
EXPORT VESSELS.—Section 1104A is amended—
(A) by amending so much of subsection (a)(1) as pre-
cedes the proviso to read as follows:
‘‘(1) financing, including reimbursement of an obligor for
expenditures previously made for, construction, reconstruction,
or reconditioning of a vessel (including an eligible export vessel),
which is designed principally for research, or for commercial
use (A) in the coastwise or intercoastal trade; (B) on the Great
Lakes, or on bays, sounds, rivers, harbors, or inland lakes
of the United States; (C) in foreign trade as defined in section
905 of this Act for purposes of title V of this Act; or (D)
as an ocean thermal energy conversion facility or plantship;
(E) with respect to floating drydocks in the construction,
reconstruction, reconditioning, or repair of vessels; or (F) with
respect to an eligible export vessel, in world-wide trade;’’;
(B) by amending subsection (b)(2)—
(i) by striking ‘‘subject to the provisions of para-
graph (1) of subsection (c) of this section,’’ and inserting
‘‘subject to the provisions of subsection (c)(1) and sub-
section (i),’’, and
(ii) by inserting before the semicolon at the end
the following: ‘‘: Provided further, That in the case
of an eligible export vessel, such obligations may be
in an aggregate principal amount which does not
exceed 871⁄2 of the actual cost or depreciated actual
cost of the eligible export vessel’’;
(C) by amending subsection (b)(6) by inserting after
‘‘United States Coast Guard’’ the following: ‘‘or, in the
case of an eligible export vessel, of the appropriate national
flag authorities under a treaty, convention, or other inter-
national agreement to which the United States is a party’’;
(D) in subsection (d), by adding at the end the following
new paragraph:
‘‘(3) No commitment to guarantee, or guarantee of an
obligation may be made by the Secretary under this title for
the construction, reconstruction, or reconditioning of an eligible
export vessel unless—
‘‘(A) the Secretary finds that the construction,
reconstruction, or reconditioning of that vessel will aid
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H. R. 2401—268
in the transition of United States shipyards to commercial
activities or will preserve shipbuilding assets that would
be essential in time of war or national emergency, and
‘‘(B) the owner of the vessel agrees with the Secretary
of Transportation that the vessel shall not be transferred
to any country designated by the Secretary of Defense
as a country whose interests are hostile to the interests
of the United States.’’; and
(E) by adding at the end the following new subsections:
‘‘(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 1112(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.
‘‘(j)(1) Upon receiving an application for a loan guarantee for
an eligible export vessel, the Secretary shall promptly provide to
the Secretary of Defense notice of the receipt of the application.
During the 30-day period beginning on the date on which the
Secretary of Defense receives such notice, the Secretary of Defense
may disapprove the loan guarantee based on the assessment of
the Secretary of the potential use of the vessel in a manner that
may cause harm to United States national security interests. The
Secretary of Defense may not disapprove a loan guarantee under
this section solely on the basis of the type of vessel to be constructed
with the loan guarantee. The authority of the Secretary to dis-
approve a loan guarantee under this section may not be delegated
to any official other than a civilian officer of the Department of
Defense appointed by the President, by and with the advice and
consent of the Senate.
‘‘(2) The Secretary of Transportation may not make a loan
guarantee disapproved by the Secretary of Defense under paragraph
(1).’’.
(4) LIMITATION
ON
AUTHORITY
TO
ESTABLISH
UNIFORM
PERCENTAGE LIMITATION.—Section 1104B is amended by adding
at the end of subsection (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 para-
graph (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. 1357. LOAN GUARANTEES FOR SHIPYARD MODERNIZATION 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. 1112. (a) The Secretary, under section 1103(a) and subject
to the terms the Secretary shall prescribe, may guarantee or make
a commitment to guarantee the payment of the principal of, and
the interest on, an obligation for advanced shipbuilding technology
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H. R. 2401—269
and modern shipbuilding technology of a general shipyard facility
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 commit-
ments to guarantee made under this title, except that guarantees
or commitments to guarantee 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 cover the cost (as defined
in section 502 of the Federal Credit Reform Act of 1990) of making
guarantees or commitments to guarantee loans entered into under
this section.
‘‘(d) For purposes of this section:
‘‘(1) The term ‘advanced shipbuilding technology’ includes—
‘‘(A) numerically controlled machine tools, robots, auto-
mated process control equipment, computerized flexible
manufacturing systems, associated computer software, and
other technology for improving shipbuilding and related
industrial production which advance the state-of-the-art;
and
‘‘(B) novel techniques and processes designed to
improve shipbuilding quality, productivity, and practice,
and 
to 
promote 
sustainable 
development, 
including
engineering design, quality assurance, concurrent engineer-
ing, continuous process production technology, energy effi-
ciency, waste minimization, design for recyclability or parts
reuse, inventory management, upgraded worker skills, and
communications with customers and suppliers.
‘‘(2) The term ‘modern shipbuilding technology’ means the
best available proven technology, techniques, 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, repair, rehabilitation, refurbish-
ment or rebuilding 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 structure or appur-
tenance described in clause (i); and
‘‘(iii) equipment that is for the use in connection
with any structure or appurtenance and that is nec-
essary for the performance 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 facilities (as defined in section
1112(d)(3)).’’.
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H. R. 2401—270
SEC. 1358. ELIGIBLE SHIPYARDS.
To be eligible to receive loan guarantee assistance under title
XI of the Merchant Marine Act, 1936, a shipyard must be a private
shipyard located in the United States.
SEC. 1359. FUNDING FOR CERTAIN LOAN GUARANTEE COMMITMENTS
FOR FISCAL YEAR 1994.
(a) FUNDING.—(1) The amount appropriated to the Secretary
of Defense pursuant to the authorization of appropriations in section
108 shall be available only for transfer to the Secretary of Transpor-
tation and shall be available only for costs (as defined in section
502 of the Federal Credit Reform Act of 1990 (2 U.S.C. 661a))
of new loan guarantee commitments under (A) section 1104A(a)(1)
of the Merchant Marine Act, 1936 (46 App. U.S.C. 1274(a)(1)),
as amended by section 1356, or section 1111(a)(2) of such Act,
as added by section 1355, for vessels of at least 5,000 gross tons
that are commercially marketable on the international market
(including eligible export vessels), and (B) section 1112 of the Mer-
chant Marine Act, 1936, as added by section 1357.
(2) Of the amount referred to in paragraph (1) that is obligated
in any year, not more than 121⁄2 percent may be obligated for
costs of new loan guarantee commitments under section 1112 of
the Merchant Marine Act, 1936, as added by section 1357.
(3) In making loan guarantee commitments using funds referred
to in paragraph (1) for the purpose described in paragraph (2),
the Secretary of Transportation shall give priority to applications
from shipyards that have engaged in naval vessel construction.
(b) TRANSFER TO SECRETARY OF TRANSPORTATION.—Subject to
the provisions of appropriations Acts, amounts made available
under 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.
(c) LIMITATIONS
ON
THE USE
OF DEPARTMENT
OF DEFENSE
FUNDS.—(1) Funds available to the Secretary of Transportation
from the Department of Defense under this section may be obligated
only to the extent that an equal amount of funds is available
for purposes of this section from non-Department of Defense sources.
(2) Funds available as of the date of the enactment of this
Act under loan guarantee programs under title XI of the Merchant
Marine Act, 1936, are considered non-Department of Defense funds
for purposes of paragraph (1).
SEC. 1360. COURT SALE TO ENFORCE PREFERRED MORTGAGE LIENS
FOR EXPORT VESSELS.
Section 31326(b) of title 46, United States Code, is amended—
(1) in paragraph (1), by inserting ‘‘, including a preferred
mortgage lien on a foreign vessel whose mortgage has been
guaranteed under title XI of the Merchant Marine Act, 1936
(46 App. U.S.C. 1101 et seq.)’’ after ‘‘preferred mortgage lien’’,
and
(2) in paragraph (2), by inserting ‘‘whose mortgage has
not been guaranteed under title XI of that Act’’ after ‘‘foreign
vessel’’.
SEC. 1361. AUTHORIZATIONS OF APPROPRIATIONS.
(a) AUTHORIZATIONS FOR DEPARTMENT OF TRANSPORTATION.—
There is authorized to be appropriated to the Secretary of Transpor-
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