1067 
‘‘(A) during the period of an operating 
agreement under this chapter that applies to the 
vessel, the vessel will be— 
‘‘(i) owned by a person that is a cit-
izen of the United States under section 
50501 of this title or that is a United States 
citizen trust; and 
‘‘(ii) demise chartered to a person— 
‘‘(I) that is eligible to document 
the vessel under chapter 121 of this 
title; 
‘‘(II) the chairman of the board of 
directors, chief executive officer, and a 
majority of the members of the board of 
directors of which are citizens of the 
United States under section 50501 of 
this title, and are appointed and sub-
jected to removal only upon approval 
by the Secretary; and 
‘‘(III) that certifies to the Sec-
retary that there are no treaties, stat-
utes, regulations, or other laws that 
would prohibit the owner or operator 
for the vessel from performing its obli-
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gations under an operating agreement 
under this chapter; 
‘‘(B) in the case of a vessel that will be de-
mise chartered to a person that is owned or con-
trolled by another person that is not a citizen of 
the United States under section 50501 of this 
title, the other person enters into an agreement 
with the Secretary not to influence the operation 
of the vessel in a manner that will adversely af-
fect the interests of the United States; and 
‘‘(C) the Secretary of Transportation and 
the Secretary of Defense notify the Committee on 
Armed Services and the Committee on Com-
merce, Science, and Transportation of the Senate 
and the Committee on Armed Services and the 
Committee on Transportation and Infrastructure 
of the House of Representatives that the Secre-
taries concur with the certification required 
under subparagraph (A)(ii)(III), and have re-
viewed and agree that there are no legal, oper-
ational, or other impediments that would pro-
hibit the owner or operator for the vessel from 
performing its obligations under an operating 
agreement under this chapter. 
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‘‘(3) VESSELS OWNED AND OPERATED BY A DE-
FENSE OWNER OR OPERATOR.—A vessel meets the re-
quirements of this paragraph if— 
‘‘(A) during the period of an operating 
agreement under this chapter that applies to the 
vessel, the vessel will be owned and operated by 
a person that— 
‘‘(i) is eligible to document a vessel 
under chapter 121 of this title; 
‘‘(ii) operates or manages other vessels 
of the United States for the Secretary of De-
fense, or charters other vessels to the Sec-
retary of Defense; 
‘‘(iii) has entered into a special secu-
rity agreement for the purpose of this para-
graph with the Secretary of Defense; 
‘‘(iv) makes the certification described 
in paragraph (2)(A)(ii)(III); and 
‘‘(v) in the case of a vessel described in 
paragraph (2)(B), enters into an agreement 
referred to in that subparagraph; and 
‘‘(B) the Secretary of Transportation and 
the Secretary of Defense notify the Committee on 
Armed Services and the Committee on Com-
merce, Science, and Transportation of the Senate 
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and the Committee on Armed Services and the 
Committee on Transportation and Infrastructure 
of the House of Representatives that they concur 
with the certification required under subpara-
graph (A)(iv), and have reviewed and agree that 
there are no legal, operational, or other impedi-
ments that would prohibit the owner or operator 
for the vessel from performing its obligations 
under an operating agreement under this chap-
ter. 
‘‘(4) VESSELS OWNED BY DOCUMENTATION CITI-
ZENS AND CHARTERED TO SECTION 50501 CITIZENS.— 
A vessel meets the requirements of this paragraph if, 
during the period of an operating agreement under 
this chapter, the vessel will be— 
‘‘(A) owned by a person who is eligible to 
document a vessel under chapter 121 of this title; 
and 
‘‘(B) demise chartered to a person that is a 
citizen of the United States under section 50501 
of this title. 
‘‘(d) REQUEST
BY SECRETARY
OF DEFENSE.—The 
Secretary of Defense shall request that the Commandant of 
the Coast Guard issue any waiver under section 501 of this 
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title that the Secretary of Defense determines is necessary 
for purposes of this chapter. 
‘‘(e) VESSEL STANDARDS.— 
‘‘(1) CERTIFICATE
OF
INSPECTION.—A vessel 
used to provide oceangoing transportation that the 
Commandant of the Coast Guard determines meets 
the criteria of subsection (b) but which, on the date 
of enactment of this section, is not documented under 
chapter 121 of this title, shall be eligible for a certifi-
cate of inspection if the Commandant of the Coast 
Guard determines that— 
‘‘(A) the vessel is classed by and designed in 
accordance with the rules of the American Bu-
reau of Shipping, or another classification soci-
ety accepted by the Commandant of the Coast 
Guard; 
‘‘(B) the vessel complies with applicable 
international agreements and associated guide-
lines, as determined by the country in which the 
vessel was documented immediately before becom-
ing documented under chapter 121 of this title; 
and 
‘‘(C) the country has not been identified by 
the Commandant of the Coast Guard as inad-
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equately enforcing international vessel regula-
tions as to that vessel. 
‘‘(2) RELIANCE ON CLASSIFICATION SOCIETY.— 
‘‘(A) IN
GENERAL.—The Commandant of 
the Coast Guard may rely on a certification 
from the American Bureau of Shipping or, sub-
ject to subparagraph (B), another classification 
society accepted by the Commandant of the Coast 
Guard, to establish that a vessel is in compliance 
with the requirements of paragraph (1). 
‘‘(B) FOREIGN CLASSIFICATION SOCIETY.— 
The Secretary may accept certification from a 
foreign classification society under subparagraph 
(A) only— 
‘‘(i) to the extent that the government 
of the foreign country in which the society 
is headquartered provides access on a recip-
rocal basis to the American Bureau of Ship-
ping; and 
‘‘(ii) if the foreign classification society 
has offices and maintains records in the 
United States. 
‘‘§ 70703. Vessel standards 
‘‘(a) CERTIFICATE OF INSPECTION.—A vessel used to 
provide transportation service as a common carrier that the 
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Secretary of Transportation determines meets the criteria 
of section 53102(b) of this title, which on the date of enact-
ment of this section is not a documented vessel (as that term 
is defined in section 106 of this title), shall be eligible for 
a certificate of inspection if the Secretary determines that— 
‘‘(1) the vessel is classed by and designed in ac-
cordance with the rules of the American Bureau of 
Shipping or another classification society accepted by 
the Secretary; 
‘‘(2) the vessel complies with applicable inter-
national agreements and associated guidelines, as de-
termined by the country in which the vessel was docu-
mented immediately before becoming a documented 
vessel (as defined in that section); and 
‘‘(3) that country has not been identified by the 
Secretary as inadequately enforcing international ves-
sel regulations as to that vessel. 
‘‘(b) CONTINUED ELIGIBILITY
FOR CERTIFICATE.— 
Subsection (a) does not apply to any vessel that has failed 
to comply with the applicable international agreements and 
association guidelines referred to in subsection (a)(2). 
‘‘(c) RELIANCE ON CLASSIFICATION SOCIETY.— 
‘‘(1) IN GENERAL.—The Secretary may rely on 
a certification from the American Bureau of Ship-
ping or, subject to paragraph (2), another classifica-
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tion society accepted by the Secretary, to establish 
that a vessel is in compliance with the requirements 
of subsections (a) and (b). 
‘‘(2) FOREIGN
CLASSIFICATION
SOCIETY.—The 
Secretary may accept certification from a foreign 
classification society under paragraph (1) only— 
‘‘(A) to the extent that the government of the 
foreign 
country 
in 
which 
the 
society 
is 
headquartered provides access on a reciprocal 
basis to the American Bureau of Shipping; and 
‘‘(B) if the foreign classification society has 
offices and maintains records in the United 
States. 
‘‘§ 70704. Award of operating agreements 
‘‘(a) IN GENERAL.—The Secretary of Transportation 
shall require, as a condition of including any vessel in the 
Fleet, that the owner or operator of the vessel enter into 
an operating agreement with the Secretary under this sec-
tion. 
‘‘(b) PROCEDURE FOR APPLICATIONS.— 
‘‘(1) PARTICIPATING FLEET VESSELS.— 
‘‘(A) 
IN
GENERAL.—The 
Secretary 
of 
Transportation shall accept an application for 
an operating agreement for a participating Fleet 
vessel under the priority under paragraph (2) 
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only from a person that has authority to enter 
into an operating agreement under this chapter. 
‘‘(B) VESSEL UNDER DEMISE CHARTER.— 
For purposes of subparagraph (A), in the case of 
a vessel that is subject to a demise charter that 
terminates by its own terms on September 30, 
2035 (without giving effect to any extension pro-
vided therein for completion of a voyage or to ef-
fect the actual redelivery of the vessel), or that is 
terminable at the will of the owner of the vessel 
after such date, only the owner of the vessel shall 
be treated as having the authority referred to in 
subparagraph (A). 
‘‘(C) VESSEL OWNED BY A UNITED STATES 
CITIZEN TRUST.—For purposes of subparagraph 
(B), in the case of a vessel owned by a United 
States citizen trust, the term ‘owner of the vessel’ 
includes the beneficial owner of the vessel with 
respect to such trust. 
‘‘(2) DISCRETION WITHIN PRIORITY.—The Sec-
retary of Transportation— 
‘‘(A) may award operating agreements 
under paragraph (1) according to such priorities 
as the Secretary considers appropriate; and 
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‘‘(B) shall award operating agreements 
within any such priority— 
‘‘(i) in accordance with operational re-
quirements specified by the Secretary of De-
fense; 
‘‘(ii) in the case of operating agree-
ments awarded under subparagraph (B) of 
paragraph (1), according to applicants’ 
records of owning and operating vessels; 
and 
‘‘(iii) subject to approval of the Sec-
retary of Defense. 
‘‘(c) LIMITATION.—For any fiscal year, the Secretary 
may not award operating agreements under this chapter 
that require payments under section 70707 of this title for 
more than 10 vessels. 
‘‘§ 70705. Effectiveness of operating agreements 
‘‘(a) IN GENERAL.—Subject to the availability of ap-
propriations for such purpose, the Secretary of Transpor-
tation may enter into an operating agreement under this 
chapter for fiscal year 2021 and any subsequent fiscal year. 
Each such agreement may be renewed annually for up to 
seven years. 
‘‘(b) VESSELS UNDER CHARTER
TO
THE UNITED 
STATES.—The owner or operator of a vessel under charter 
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to the United States is eligible to receive payments pursuant 
to any operating agreement that covers such vessel. 
‘‘(c) TERMINATION.— 
‘‘(1) TERMINATION BY SECRETARY FOR LACK OF 
OWNER OR OPERATOR COMPLIANCE.—If the owner or 
operator with respect to an operating agreement ma-
terially fails to comply with the terms of the agree-
ment— 
‘‘(A) the Secretary shall notify the owner or 
operator and provide a reasonable opportunity 
to comply with the operating agreement; and 
‘‘(B) the Secretary shall terminate the oper-
ating agreement if the owner or operator fails to 
achieve such compliance. 
‘‘(2) TERMINATION BY OWNER OR OPERATOR.— 
‘‘(A) IN GENERAL.—If an owner or operator 
provides notice of the intent to terminate an op-
erating agreement under this chapter on a date 
specified by not later than 60 days prior to such 
date, such agreement shall terminate on the date 
specified by the owner or operator. 
‘‘(B) REPLACEMENT.—An operating agree-
ment with respect to a vessel shall terminate on 
the date that is three years after the date on 
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which the vessel begins operating under the 
agreement, if— 
‘‘(i) the owner or operator notifies the 
Secretary, by not later than two years after 
the date the vessel begins operating under 
the agreement, that the owner or operator 
intends to terminate the agreement under 
this subparagraph; and 
‘‘(ii) the Secretary of Transportation, 
in coordination with the Secretary of De-
fense, determines that— 
‘‘(I) an application for an oper-
ating agreement under this chapter has 
been received for a replacement vessel 
that is acceptable to the Secretaries; 
and 
‘‘(II) during the period of an op-
erating agreement under this chapter 
that applies to the replacement vessel, 
the replacement vessel will be— 
‘‘(aa) owned and operated by 
one or more persons that are citi-
zens of the United States under 
section 50501 of this title; or 
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‘‘(bb) owned by a person who 
is eligible to document the vessel 
under chapter 121 of this title, 
and operated by a person that is 
a citizen of the United States 
under section 50501 of this title. 
‘‘(d) NONRENEWAL FOR LACK OF FUNDS.— 
‘‘(1) IN GENERAL.—If sufficient funds are not 
made available to carry out an operating agreement 
under this chapter— 
‘‘(A) the Secretary of Transportation shall 
submit to the Committee on Armed Services and 
the Committee on Commerce, Science, and 
Transportation of the Senate and the Committee 
on Armed Services and the Committee on Trans-
portation and Infrastructure of the House of 
Representatives notice that such agreement shall 
be not renewed effective on the 60th day of the 
fiscal year, unless such funds are made available 
before such day; and 
‘‘(B) effective on the 60th day of such fiscal 
year, terminate such agreement and provide no-
tice of such termination to the owner or operator 
of the vessel covered by the agreement. 
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‘‘(2) RELEASE
OF
VESSELS
FROM
OBLIGA-
TIONS.—If an operating agreement for a vessel under 
this chapter is not renewed pursuant to paragraph 
(1), then the owner or operator of the vessel is released 
from any further obligation under the operating 
agreement as of the date of such termination or non-
renewal. 
‘‘(3) FOREIGN TRANSFER AND REGISTRATION.— 
The owner or operator of a vessel covered by an oper-
ating agreement under this chapter may transfer and 
register such vessel under a foreign registry that is ac-
ceptable to the Secretary and the Secretary of Defense, 
notwithstanding section 70701 of this title. 
‘‘(4) REQUISITION.—If chapter 563 of this title 
is applicable to a vessel after registration, then the 
vessel is available to be requisitioned by the Secretary 
pursuant to chapter 563 of this title. 
‘‘§ 70706. Obligations and rights under operating 
agreements 
‘‘(a) OPERATION OF VESSEL.—An operating agree-
ment under this chapter shall require that, during the pe-
riod the vessel covered by the agreement is operating under 
the agreement the vessel shall— 
‘‘(1) be operated in the United States foreign 
commerce, mixed United States foreign commerce and 
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domestic trade allowed under a registry endorsement 
issued under section 12111 of this title, foreign-to-for-
eign commerce, or under a charter to the United 
States; 
‘‘(2) not be operated in the coastwise trade except 
as described in paragraph (1); and 
‘‘(3) be documented under chapter 121 of this 
title. 
‘‘(b) OPERATING AGREEMENT IS AN OBLIGATION OF 
THE UNITED STATES GOVERNMENT.—An operating agree-
ment under this chapter constitutes a contractual obligation 
of the United States Government to pay the amounts pro-
vided for in the agreement to the extent of actual appropria-
tions. 
‘‘(c) OBLIGATIONS OF OWNER OR OPERATOR.— 
‘‘(1) IN GENERAL.—The owner or operator of a 
vessel covered by an operating agreement under this 
chapter shall agree, as a condition of such agreement, 
to remain obligated to carry out the requirements de-
scribed in paragraph (2) until the termination date 
specified in the agreement, even in the case of early 
termination of the agreement under section 70705(c) 
of this title. This subsection shall not apply in the 
case of an operating agreement terminated for lack of 
funds under section 70705(d) of this title. 
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‘‘(2) REQUIREMENTS.—The requirements de-
scribed in this paragraph are the following: 
‘‘(A) To continue the documentation of the 
vessel under chapter 121 of this title. 
‘‘(B) To be bound by the requirements of 
section 70708 of this title. 
‘‘(C) That all terms and conditions of an 
emergency preparedness agreement entered into 
under section 70708 of this title shall remain in 
effect, except that the terms of such emergency 
preparedness agreement may be modified by the 
mutual consent of the owner or operator, the Sec-
retary and the Secretary of Defense as provided 
in such section. 
‘‘(d) TRANSFER OF OPERATING AGREEMENTS.—The 
owner or operator of a vessel covered by an operating agree-
ment under this chapter may transfer that agreement (in-
cluding all rights and obligations under the agreement) to 
any person that is eligible to enter into that operating 
agreement under this chapter, if the transfer is approved 
by the Secretary of Transportation and the Secretary of De-
fense. 
‘‘(e) REPLACEMENT OF VESSELS COVERED BY AGREE-
MENTS.—A owner or operator may replace a vessel covered 
by an operating agreement with another vessel that is eligi-
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ble to be included in the Fleet under section 70702(b), if 
the Secretary of Transportation, in coordination with the 
Secretary of Defense, approves the replacement of the vessel. 
In selecting a replacement vessel, the owner or operator 
shall give primary consideration to— 
‘‘(1) the commercial viability of the vessel; 
‘‘(2) the utility of the vessel with respect to the 
operating requirements of the owner or operator; and 
‘‘(3) ensuring that the commercial and military 
utility of any replacement vessel is not less than that 
of the initial vessel. 
‘‘§ 70707. Payments 
‘‘(a) ANNUAL PAYMENT.—Subject to the availability of 
appropriations for such purpose and the other provisions 
of this chapter, the Secretary shall pay to the owner or oper-
ator of a vessel covered by an operating agreement under 
this chapter an amount equal to $6,000,000 for each vessel 
covered by the agreement for each fiscal year that the vessel 
is covered by the agreement. Such amount shall be paid in 
equal monthly installments on the last day of each month. 
The amount payable under this subsection may not be re-
duced except as provided by this section. 
‘‘(b) CERTIFICATION REQUIRED FOR PAYMENT.—As a 
condition of receiving payment under this section for a fis-
cal year for a vessel, the owner or operator for the vessel 
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shall certify, in accordance with regulations issued by the 
Secretary, that the vessel has been and will be operated in 
accordance with section 70706 of this title for at least 320 
days during the fiscal year. Days during which the vessel 
is drydocked, surveyed, inspected, or repaired shall be con-
sidered days of operation for purposes of this subsection. 
‘‘(c) GENERAL LIMITATIONS.—The Secretary may not 
make any payment under this chapter for a vessel with re-
spect to any days for which the vessel is— 
‘‘(1) not operated or maintained in accordance 
with an operating agreement under this chapter; or 
‘‘(2) more than 25 years of age. 
‘‘(d) REDUCTIONS
IN PAYMENTS.—With respect to 
payments under this chapter for a vessel covered by an oper-
ating agreement, the Secretary— 
‘‘(1) except as provided in paragraph (2), may 
not reduce such a payment for the operation of the 
vessel to carry military or other preference cargoes 
under section 55302(a), 55304, 55305, or 55314 of 
this title, section 2631 of title 10, or any other cargo 
preference law of the United States; 
‘‘(2) may not make such a payment for any day 
that the vessel is engaged in transporting more than 
7,500 tons of civilian bulk preference cargoes pursu-
ant to section 55302(a), 55305, or 55314 of this title, 
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section 90l(a) or (b) of the Merchant Marine Act, 
1936 (46 App. U.S.C. 124l(a), 1241(b), or 1241(f)), 
that is bulk cargo; and 
‘‘(3) shall make a pro rata reduction for each 
day less than 320 in a fiscal year that the vessel is 
not operated in accordance with section 70706 of this 
title. 
‘‘(e) LIMITATIONS REGARDING NONCONTIGUOUS DO-
MESTIC TRADE.— 
‘‘(1) IN GENERAL.—No owner or operator shall 
receive payments pursuant to this chapter during a 
period in which it participates in noncontiguous do-
mestic trade. 
‘‘(2) LIMITATION ON APPLICATION.—Paragraph 
(1) shall not apply to a owner or operator that is a 
citizen of the United States within the meaning of 
section 50501 of this title, applying the 75 percent 
ownership requirement of that section. 
‘‘(3) PARTICIPATES IN A NONCONTIGUOUS TRADE 
DEFINED.—In this subsection the term ‘participates 
in a noncontiguous domestic trade’ means directly or 
indirectly owns, charters, or operates a vessel engaged 
in transportation of cargo between a point in the con-
tiguous 48 States and a point in Alaska, Hawaii, or 
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Puerto Rico, other than a point in Alaska north of 
the Arctic Circle. 
‘‘§ 70708. National security requirements 
‘‘(a) EMERGENCY PREPAREDNESS AGREEMENT RE-
QUIRED.—The Secretary of Transportation, in coordina-
tion with the Secretary of Defense, shall establish an emer-
gency preparedness program under this section under which 
the owner or operator of a vessel covered by an operating 
agreement under this chapter shall agree, as a condition 
of the operating agreement, to enter into an emergency pre-
paredness agreement with the Secretaries. Each such emer-
gency preparedness agreement shall be entered into as 
promptly as practicable after the owner or operator has en-
tered into the operating agreement. 
‘‘(b) TERMS OF AGREEMENT.—The terms of an agree-
ment under this section— 
‘‘(1) shall provide that upon request by the Sec-
retary of Defense during time of war or national 
emergency, or whenever determined by the Secretary 
of Defense to be necessary for national security or 
contingency operation (as that term is defined in sec-
tion 101 of title 10), the owner or operator shall make 
available commercial transportation resources (in-
cluding services) described in subsection (d) to the 
Secretary of Defense; 
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‘‘(2) shall include such additional terms as may 
be established by the Secretary of Transportation and 
the Secretary of Defense; and 
‘‘(3) shall allow for the modification or addition 
of terms upon agreement by the Secretary of Trans-
portation and the owner or operator and the approval 
by the Secretary of Defense. 
‘‘(c) PARTICIPATION AFTER EXPIRATION OF OPER-
ATING AGREEMENT.—Except as provided by section 70706 
of this title, the Secretary may not require, through an 
emergency preparedness agreement or an operating agree-
ment, that an owner or operator of a vessel covered by an 
operating agreement continue to participate in an emer-
gency preparedness agreement after the operating agree-
ment has expired according to its terms or is otherwise no 
longer in effect. After the expiration of an emergency pre-
paredness agreement, a owner or operator may voluntarily 
continue to participate in the agreement. 
‘‘(d) RESOURCES MADE AVAILABLE.—The commercial 
transportation resources to be made available under an 
emergency preparedness agreement shall include vessels or 
capacity in vessels, terminal facilities, management serv-
ices, and other related services, or any agreed portion of 
such nonvessel resources for activation as the Secretary of 
Defense may determine to be necessary, seeking to minimize 
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disruption of the owner or operator’s service to commercial 
customers. 
‘‘(e) COMPENSATION.— 
‘‘(1) IN GENERAL.—Each emergency prepared-
ness agreement under this section shall provide that 
the Secretary of Defense shall pay fair and reasonable 
compensation for all commercial transportation re-
sources provided pursuant to this section. 
‘‘(2) SPECIFIC
REQUIREMENTS.—Compensation 
under this subsection— 
‘‘(A) shall not be less than the owner or op-
erator’s commercial market charges for like 
transportation resources; 
‘‘(B) shall be fair and reasonable consid-
ering all circumstances; 
‘‘(C) shall be provided from the time that a 
vessel or resource is required by the Secretary of 
Defense until the time it is redelivered to the 
owner or operator and is available to reenter 
commercial service; and 
‘‘(D) shall be in addition to and shall not 
in any way reflect amounts payable under sec-
tion 70707 of this title. 
‘‘(f) TEMPORARY REPLACEMENT VESSELS.—Notwith-
standing section 55302(a), 55304, 55305, or 55314 of this 
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title, section 2631 of title 10, or any other cargo preference 
law of the United States— 
‘‘(1) an owner or operator may operate or em-
ploy in foreign commerce a foreign-flag vessel or for-
eign-flag vessel capacity as a temporary replacement 
for a vessel of the United States or vessel of the 
United States capacity that is activated by the Sec-
retary of Defense under an emergency preparedness 
agreement or a primary Department of Defense sealift 
readiness program; and 
‘‘(2) such replacement vessel or vessel capacity 
shall be eligible during the replacement period to 
transport preference cargoes subject to sections 
55302(a), 55304, 55305, and 55314 of this title and 
section 2631 of title 10 to the same extent as the eligi-
bility of the vessel or vessel capacity replaced. 
‘‘(g) REDELIVERY AND LIABILITY OF THE UNITED 
STATES FOR DAMAGES.— 
‘‘(1) IN
GENERAL.—All commercial transpor-
tation resources activated under an emergency pre-
paredness agreement shall, upon termination of the 
period of activation, be redelivered to the owner or op-
erator in the same good order and condition as when 
received, less ordinary wear and tear, or the Sec-
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retary of Defense shall fully compensate the owner or 
operator for any necessary repair or replacement. 
‘‘(2) LIMITATION
ON
UNITED
STATES
LIABIL-
ITY.—Except as may be expressly agreed in an emer-
gency preparedness agreement, or as otherwise pro-
vided by law, the Government shall not be liable for 
disruption of an owner or operator’s commercial busi-
ness or other consequential damages to an owner or 
operator arising from the activation of commercial 
transportation resources under an emergency pre-
paredness agreement. 
‘‘§ 70709. Regulatory relief 
‘‘(a) OPERATION IN FOREIGN COMMERCE.—An owner 
or operator for a vessel included in an operating agreement 
under this chapter may operate the vessel in the foreign 
commerce of the United States without restriction. 
‘‘(b) OTHER RESTRICTIONS.—The restrictions of sec-
tion 55305(a) of this title concerning the building, rebuild-
ing, or documentation of a vessel in a foreign country shall 
not apply to a vessel for any day the operator of the vessel 
is receiving payments for the operation of that vessel under 
an operating agreement under this chapter. 
‘‘(c) TELECOMMUNICATIONS EQUIPMENT.—The tele-
communications and other electronic equipment on an ex-
isting vessel that is redocumented under the laws of the 
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United States for operation under an operating agreement 
under this chapter shall be deemed to satisfy all Federal 
Communications Commission equipment certification re-
quirements, if— 
‘‘(1) such equipment complies with all applicable 
international agreements and associated guidelines as 
determined by the country in which the vessel was 
documented immediately before becoming documented 
under the laws of the United States; 
‘‘(2) that country has not been identified by the 
Secretary as inadequately enforcing international reg-
ulations as to that vessel; and 
‘‘(3) at the end of its useful life, such equipment 
shall be replaced with equipment that meets Federal 
Communications Commission equipment certification 
standards. 
‘‘§ 70710. Special rule regarding age of participating 
Fleet vessels 
‘‘Any age restriction under section 70702(b)(4) of this 
title shall not apply to a participating Fleet vessel during 
the 30-month period beginning on the date the vessel begins 
operating under an operating agreement under this chapter, 
if the Secretary of Transportation determines that the 
owner or operator of the vessel has entered into an arrange-
ment to obtain and operate under the operating agreement 
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for the participating Fleet vessel a replacement vessel that, 
upon commencement of such operation, will be eligible to 
be included in the Fleet under section 70702(b) of this title. 
‘‘§ 70711. Regulations 
‘‘The Secretary of Transportation and the Secretary 
of Defense may each prescribe rules as necessary to carry 
out their respective responsibilities under this chapter. 
‘‘§ 70712. Authorization of appropriations 
‘‘There is authorized to be appropriated for payments 
under section 70707, $60,000,000 for each of fiscal years 
2021 through 2035, to remain available until expended. 
‘‘§ 70713. Acquisition of Fleet vessels 
‘‘(a) IN GENERAL.—Upon replacement of a Fleet Ves-
sel under an operating agreement under this chapter, and 
subject to agreement by the owner or operator of the vessel, 
the Secretary of Transportation is authorized, subject to the 
concurrence of the Secretary of Defense, to acquire the vessel 
being replaced for inclusion in the National Defense Reserve 
Fleet. 
‘‘(b) REQUIREMENTS.—To be eligible for acquisition 
by the Secretary of Transportation under this section a ves-
sel shall— 
‘‘(1) have been covered by an operating agree-
ment under this chapter for not less than three years; 
and 
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‘‘(2) meet recapitalization requirements for the 
Ready Reserve Force. 
‘‘(c) FAIR MARKET VALUE.—A fair market value shall 
be established by the Maritime Administration for acquisi-
tion of an eligible vessel under this section. 
‘‘(d) APPROPRIATIONS.—Vessel acquisitions under this 
section shall be subject to the availability of appropriations. 
Amounts made available to carry out this section shall be 
derived from amounts authorized to be appropriated for the 
National Defense Reserve Fleet. Amounts authorized to be 
appropriated to carry out the Maritime Security Program 
may not be use to carry out this section.’’. 
(b) CLERICAL AMENDMENT.—The table of chapters for 
subtitle VII of title 46, United States Code, is amended by 
adding at the end the following: 
‘‘707. Tanker Security Fleet ........................................................................... 70701’’. 
(c) DEADLINE FOR ACCEPTING APPLICATIONS.— 
(1) IN GENERAL.—The Secretary of Transpor-
tation shall begin accepting applications for enroll-
ment of vessels in the Tanker Security Fleet estab-
lished under chapter 707 of title 46, United States 
Code, as added by subsection (a), by not later than 
30 days after the date of the enactment of this Act. 
(2) APPROVAL.—Not later than 90 days after re-
ceipt of an application for the enrollment of a vessel 
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in the Tanker Security Fleet, the Secretary, in coordi-
nation with the Secretary of Defense shall— 
(A) approve the application and enter into 
an operating agreement with the applicant; or 
(B) provide to the applicant a written ex-
planation for the denial of the application. 
DIVISION D—FUNDING TABLES 
SEC. 4001. AUTHORIZATION OF AMOUNTS IN FUNDING TA-
BLES. 
(a) IN GENERAL.—Whenever a funding table in this 
division specifies a dollar amount authorized for a project, 
program, or activity, the obligation and expenditure of the 
specified dollar amount for the project, program, or activity 
is hereby authorized, subject to the availability of appro-
priations. 
(b) MERIT-BASED DECISIONS.—A decision to commit, 
obligate, or expend funds with or to a specific entity on 
the basis of a dollar amount authorized pursuant to sub-
section (a) shall— 
(1) be based on merit-based selection procedures 
in accordance with the requirements of sections 
2304(k) and 2374 of title 10, United States Code, or 
on competitive procedures; and 
(2) comply with other applicable provisions of 
law. 
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(c) RELATIONSHIP TO TRANSFER AND PROGRAMMING 
AUTHORITY.—An amount specified in the funding tables in 
this division may be transferred or reprogrammed under 
a transfer or reprogramming authority provided by another 
provision of this Act or by other law. The transfer or re-
programming of an amount specified in such funding tables 
shall not count against a ceiling on such transfers or 
reprogrammings under section 1001 or section 1512 of this 
Act or any other provision of law, unless such transfer or 
reprogramming would move funds between appropriation 
accounts. 
(d) APPLICABILITY TO CLASSIFIED ANNEX.—This sec-
tion applies to any classified annex that accompanies this 
Act. 
(e) ORAL AND WRITTEN COMMUNICATIONS.—No oral 
or written communication concerning any amount specified 
in the funding tables in this division shall supersede the 
requirements of this section. 
TITLE XLI—PROCUREMENT 
SEC. 4101. PROCUREMENT. 
SEC. 4101. PROCUREMENT 
(In Thousands of Dollars) 
Line 
Item 
FY 2020 
Request 
House 
Authorized 
AIRCRAFT PROCUREMENT, ARMY 
FIXED WING 
002 
UTILITY F/W AIRCRAFT ....................................................................................................
16,000 
Early to need ...................................................................................................................
[–16,000 ] 
004 
RQ–11 (RAVEN) .....................................................................................................................
23,510 
21,510 
Unit cost growth ..............................................................................................................
[–2,000 ] 
ROTARY 
005 
TACTICAL UNMANNED AIRCRAFT SYSTEM (TUAS) .................................................
12,100 
12,100 
007 
HELICOPTER, LIGHT UTILITY (LUH) ..........................................................................
11,000 
Program increase for sustainment improvements ........................................................
[11,000 ] 
008 
AH–64 APACHE BLOCK IIIA REMAN .............................................................................
806,849 
786,009 
Unjustified cost growth ...................................................................................................
[–20,840 ] 
009 
AH–64 APACHE BLOCK IIIA REMAN .............................................................................
190,870 
174,970 
Unjustified cost growth ...................................................................................................
[–15,900 ] 
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SEC. 4101. PROCUREMENT 
(In Thousands of Dollars) 
Line 
Item 
FY 2020 
Request 
House 
Authorized 
012 
UH–60 BLACKHAWK M MODEL (MYP) ..........................................................................
1,411,540 
1,411,540 
013 
UH–60 BLACKHAWK M MODEL (MYP) ..........................................................................
79,572 
79,572 
014 
UH–60 BLACK HAWK L AND V MODELS ......................................................................
169,290 
169,290 
015 
CH–47 HELICOPTER ...........................................................................................................
140,290 
131,290 
Unit cost growth ..............................................................................................................
[–9,000 ] 
016 
CH–47 HELICOPTER ...........................................................................................................
18,186 
46,186 
Advanced procurement for CH–47F Block II ...............................................................
[28,000 ] 
MODIFICATION OF AIRCRAFT 
019 
UNIVERSAL GROUND CONTROL EQUIPMENT (UAS) ...............................................
2,090 
2,090 
020 
GRAY EAGLE MODS2 ..........................................................................................................
14,699 
14,699 
021 
MULTI SENSOR ABN RECON (MIP) ...............................................................................
35,189 
35,189 
022 
AH–64 MODS ..........................................................................................................................
58,172 
58,172 
023 
CH–47 CARGO HELICOPTER MODS (MYP) ..................................................................
11,785 
6,785 
Unobligated balances .......................................................................................................
[–5,000 ] 
024 
GRCS SEMA MODS (MIP) ...................................................................................................
5,677 
5,677 
025 
ARL SEMA MODS (MIP) .....................................................................................................
6,566 
6,566 
026 
EMARSS SEMA MODS (MIP) .............................................................................................
3,859 
3,859 
027 
UTILITY/CARGO AIRPLANE MODS .................................................................................
15,476 
13,476 
Unit cost discrepancy ......................................................................................................
[–2,000 ] 
028 
UTILITY HELICOPTER MODS .........................................................................................
6,744 
6,744 
029 
NETWORK AND MISSION PLAN ......................................................................................
105,442 
98,442 
Cost growth ......................................................................................................................
[–7,000 ] 
030 
COMMS, NAV SURVEILLANCE ..........................................................................................
164,315 
164,315 
032 
GATM ROLLUP .....................................................................................................................
30,966 
30,966 
033 
RQ–7 UAV MODS ..................................................................................................................
8,983 
38,983 
Program increase .............................................................................................................
[30,000 ] 
034 
UAS MODS ..............................................................................................................................
10,205 
10,205 
GROUND SUPPORT AVIONICS 
035 
AIRCRAFT SURVIVABILITY EQUIPMENT ....................................................................
52,297 
52,297 
036 
SURVIVABILITY CM ............................................................................................................
8,388 
8,388 
037 
CMWS .......................................................................................................................................
13,999 
13,999 
038 
COMMON INFRARED COUNTERMEASURES (CIRCM) ...............................................
168,784 
168,784 
OTHER SUPPORT 
039 
AVIONICS SUPPORT EQUIPMENT ..................................................................................
1,777 
1,777 
040 
COMMON GROUND EQUIPMENT .....................................................................................
18,624 
18,624 
041 
AIRCREW INTEGRATED SYSTEMS ................................................................................
48,255 
48,255 
042 
AIR TRAFFIC CONTROL ....................................................................................................
32,738 
32,738 
044 
LAUNCHER, 2.75 ROCKET .................................................................................................
2,201 
2,201 
045 
LAUNCHER GUIDED MISSILE: LONGBOW HELLFIRE XM2 ..................................
991 
991 
TOTAL AIRCRAFT PROCUREMENT, ARMY ....................................................
3,696,429 
3,687,689 
MISSILE PROCUREMENT, ARMY 
SURFACE-TO-AIR MISSILE SYSTEM 
001 
SYSTEM INTEGRATION AND TEST PROCUREMENT ................................................
113,857 
113,857 
002 
M-SHORAD—PROCUREMENT ..........................................................................................
103,800 
56,800 
Early to need ...................................................................................................................
[–47,000 ] 
003 
MSE MISSILE ........................................................................................................................
698,603 
698,603 
004 
INDIRECT FIRE PROTECTION CAPABILITY INC 2–I ...............................................
9,337 
9,337 
AIR-TO-SURFACE MISSILE SYSTEM 
006 
HELLFIRE SYS SUMMARY ...............................................................................................
193,284 
173,284 
Unit cost growth ..............................................................................................................
[–20,000 ] 
007 
JOINT AIR-TO-GROUND MSLS (JAGM) ..........................................................................
233,353 
198,353 
Contract and schedule delays .........................................................................................
[–35,000 ] 
ANTI-TANK/ASSAULT MISSILE SYS 
008 
JAVELIN (AAWS-M) SYSTEM SUMMARY .......................................................................
138,405 
138,405 
009 
TOW 2 SYSTEM SUMMARY ................................................................................................
114,340 
110,340 
Unit cost growth ..............................................................................................................
[–4,000 ] 
010 
TOW 2 SYSTEM SUMMARY ................................................................................................
10,500 
10,500 
011 
GUIDED MLRS ROCKET (GMLRS) ..................................................................................
797,213 
767,213 
Program adjustment ........................................................................................................
[–30,000 ] 
012 
MLRS REDUCED RANGE PRACTICE ROCKETS (RRPR) ..........................................
27,555 
27,555 
014 
ARMY TACTICAL MSL SYS (ATACMS)—SYS SUM ......................................................
209,842 
184,842 
Excess to need ..................................................................................................................
[–25,000 ] 
MODIFICATIONS 
016 
PATRIOT MODS ....................................................................................................................
279,464 
279,464 
017 
ATACMS MODS ......................................................................................................................
85,320 
80,320 
Unit cost growth ..............................................................................................................
[–5,000 ] 
018 
GMLRS MOD ..........................................................................................................................
5,094 
5,094 
019 
STINGER MODS ....................................................................................................................
81,615 
81,615 
020 
AVENGER MODS ..................................................................................................................
14,107 
14,107 
021 
ITAS/TOW MODS ..................................................................................................................
3,469 
3,469 
022 
MLRS MODS ..........................................................................................................................
39,019 
39,019 
023 
HIMARS MODIFICATIONS .................................................................................................
12,483 
12,483 
SPARES AND REPAIR PARTS 
024 
SPARES AND REPAIR PARTS ..........................................................................................
26,444 
26,444 
SUPPORT EQUIPMENT & FACILITIES 
025 
AIR DEFENSE TARGETS ...................................................................................................
10,593 
10,593 
TOTAL MISSILE PROCUREMENT, ARMY .........................................................
3,207,697 
3,041,697 
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