(2) by inserting after paragraph (2) the fol-
lowing:
‘‘(3) The term ‘eligible entity’ means any pri-
vate person, corporation, firm, partnership, or com-
pany and any State or local government or housing
authority of a State or local government.’’.
(b) DIRECT LOANS FOR PROVIDING HOUSING.—Sec-
tion 682 of title 14, United States Code, is amended—
(1) in the section heading by striking ‘‘LOAN
GUARANTEES’’ and inserting ‘‘DIRECT LOANS AND
LOAN GUARANTEES’’;
(2) by redesignating subsections (a) and (b) as
(b) and (c) respectively;
(3) by inserting before subsection (b) (as so re-
designated) the following:
‘‘(a) DIRECT LOANS.—(1) Subject to subsection (c),
the Secretary may make direct loans to an eligible entity
in order to provide funds to the eligible entity for the ac-
quisition or construction of housing units that the Sec-
retary determines are suitable for use as military family
housing or as military unaccompanied housing.
‘‘(2) The Secretary shall establish such terms and
conditions with respect to loans made under this sub-
section as the Secretary considers appropriate to protect
the interests of the United States, including the period
and frequency for repayment of such loans and the obliga-
tions of the obligors on such loans upon default.’’;
(4) in subsection (b) (as so redesignated) by
striking ‘‘subsection (b),’’ and inserting ‘‘subsection
(c),’’; and
(5) in subsection (c) (as so redesignated)—
(A) in the heading by striking ‘‘GUAR-
ANTEE’’; and
(B) by striking ‘‘Loan guarantees’’ and in-
serting ‘‘Direct loans and loan guarantees’’.
(c) LIMITED PARTNERSHIPS WITH ELIGIBLE ENTI-
TIES.—Section 684 of title 14, United States Code, is
amended—
(1) in the section heading by striking ‘‘NON-
GOVERNMENTAL’’ and inserting ‘‘ELIGIBLE’’;
(2) in subsection (a) by striking ‘‘nongovern-
mental’’ and inserting ‘‘eligible’’;
(3) in subsection (b)(1) by striking ‘‘a non-
governmental’’ and inserting ‘‘an eligible’’;
(4) in subsection (b)(2) by striking ‘‘a non-
governmental’’ and inserting ‘‘an eligible’’; and
(5) in subsection (c) by striking ‘‘nongovern-
mental’’ and inserting ‘‘eligible’’.
(d) HOUSING DEMONSTRATION PROJECTS IN ALAS-
KA.—Section 687(g) of title 14, United Sates Code, is
amended—
(1) in the heading by striking ‘‘PROJECT’’ and
inserting ‘‘PROJECTS’’;
(2) in paragraph (1) by striking ‘‘a demonstra-
tion 
project’’ 
and 
inserting 
‘‘demonstration
projects’’;
(3) in paragraph (1) by striking ‘‘Kodiak, Alas-
ka;’’ and inserting ‘‘Kodiak, Alaska, or any other
Coast Guard installation in Alaska;’’;
(4) in paragraph (2) by striking ‘‘the dem-
onstration project’’ and inserting ‘‘such a dem-
onstration project’’; and
(5) in paragraph (4) by striking ‘‘the dem-
onstration project’’ and inserting ‘‘such demonstra-
tion projects’’.
(e) DIFFERENTIAL LEASE PAYMENTS.—Chapter 18
of title 14, United States Code, is amended by inserting
after section 687 the following:
‘‘§ 687a. Differential lease payments
‘‘Pursuant to an agreement entered into by the Sec-
retary and a lessor of military family housing or military
unaccompanied housing to members of the armed forces,
the Secretary may pay the lessor an amount, in addition
to the rental payments for the housing made by the mem-
bers, as the Secretary determines appropriate to encour-
age the lessor to make the housing available to members
of the armed forces as military family housing or as mili-
tary unaccompanied housing.’’.
(f) CLERICAL AMENDMENT.—The table of sections at
the beginning of chapter 18 of title 14, United States
Code, is amended—
(1) by striking the item related to section 682
and inserting the following:
‘‘682. Direct loans and loan guarantees.’’;
(2) in the item related to section 684 by strik-
ing ‘‘nongovernmental’’ and inserting ‘‘eligible’’; and
(3) by inserting after the item related to section
687 the following:
‘‘687a. Differential lease payments.’’.
SEC. 208. REQUIREMENT FOR CONSTRUCTIVE CREDIT.
Section 727 of title 14, United States Code, is
amended in the second sentence by striking ‘‘three years’’
and inserting ‘‘one year’’.
SEC. 209. MAXIMUM AGE FOR RETENTION IN AN ACTIVE
STATUS.
Section 742 of title 14, United States Code, is
amended to read as follows:
‘‘§ 742. Maximum age for retention in an active status
‘‘(a) A Reserve officer, if qualified, shall be trans-
ferred to the Retired Reserve on the day the officer be-
comes 60 years of age unless on active duty. If not quali-
fied for retirement, a Reserve officer shall be discharged
effective upon the day the officer becomes 60 years of age
unless on active duty.
‘‘(b) A Reserve officer on active duty shall, if quali-
fied, be retired effective upon the day the officer become
62 years of age. If not qualified for retirement, a Reserve
officer on active duty shall be discharged effective upon
the day the officer becomes 62 years of age.
‘‘(c) Notwithstanding subsection (a)and (b), the Sec-
retary may authorize the retention of a Reserve rear admi-
ral or rear admiral (lower half) in an active status not
longer than the day on which the officer concerned be-
comes 64 years of age.
‘‘(d) For purposes of this section, ‘active duty’ does
not include active duty for training, duty on a board, or
duty of a limited or temporary nature if assigned to active
duty from an inactive duty status.’’.
SEC. 210. PAYMENTS.
(a) IN GENERAL.—Chapter 13 of title 14, United
States Code, is amended by adding at the end the fol-
lowing:
‘‘§ 517. Payments
‘‘(a) The Secretary may require that travel or trans-
portation allowances due a civilian employee or military
member of the Coast Guard be disbursed directly to the
issuer of a Federal contractor-issued travel charge card,
but only in an amount not to exceed the authorized travel
expenses charged by that Coast Guard member to that
travel charge card issued to that employee or member.
‘‘(b) The Secretary may also establish requirements
similar to those established by the Secretary of Defense
pursuant to section 2784a of title 10 for deduction or
withholding of pay or retired pay from a Coast Guard em-
ployee, member, or retired member who is delinquent in
payment under the terms of the contract under which the
card was issued and does not dispute the amount of the
delinquency.’’.
(b) CLERICAL AMENDMENT.—The table of sections
at the beginning of chapter 13 of title 14, United States
Code, is amended by adding at the end the following:
‘‘517. Payments.’’.
SEC. 211. COAST GUARD FELLOWSHIP PROGRAM.
(a) ESTABLISHMENT.—Title 14, United States Code,
is amended by adding at the end of chapter 11 the fol-
lowing:
‘‘§ 337. Coast Guard Congressional Fellowship Pro-
gram
‘‘(a) There is established in the Coast Guard a Coast
Guard Congressional Fellowship Program to broaden
Coast Guard officers’ knowledge of the Congress.
‘‘(b) The Commandant may appoint 4 mid-grade offi-
cers as fellows under the program, subject to the following
limitations:
‘‘(1) The maximum length of a fellowship is one
year.
‘‘(2) A fellow may be assigned to an office of
the House of Representatives or the Senate, includ-
ing a committee, during the period of the fellowship,
or may rotate between such offices.
‘‘(3) To protect against abuses of separation of
powers principles and conflicts of interest, a fellow
may not engage in duties that will result in any di-
rect or indirect benefit to the Coast Guard, other
than broadening the fellow’s knowledge.
‘‘(c) An individual violating this section is subject to
appropriate discipline by the Commandant.’’.
(b) 
LIMITATION
ON
APPLICATION.—Section
337(b)(1) of title 14, United States Code, as amended by
this section, does not apply to an individual serving on
June 10, 2003, as a Coast Guard congressional fellow.
(c) CLERICAL AMENDMENT.—The table of sections
at the beginning of chapter 11 of title 14, United States
Code, is amended by inserting after the item relating to
section 336 the following:
‘‘337. Coast Guard Congressional Fellowship Program.’’.
SEC. 212. AIR SEARCH AND RESCUE FACILITY IN MUS-
KEGON COUNTY, MICHIGAN.
(a) LEASE AUTHORITY.—The Commandant may
enter into a long-term lease for a period of up to 20 years
with Muskegon County, Michigan, for use of a facility con-
structed by the County at Muskegon County Airport as
an air search and rescue station, if such a facility that
meets criteria established under subsection (b) is available.
(b) CRITERIA.—Any facility leased under subsection
(a) must meet criteria established by the Commandant.
SEC. 213. NATIONAL COAST GUARD MUSEUM.
(a) IN GENERAL.—Chapter 5 of title 14, United
States Code, is amended by adding at the end the fol-
lowing:
‘‘§ 98. National Coast Guard Museum
‘‘(a) ESTABLISHMENT.—The Commandant of the
Coast Guard may, subject to subsections (b) and (c), es-
tablish a National Coast Guard Museum on Federal lands
that are administered by the Coast Guard and specified
by the Commandant.
‘‘(b) LOCATION.—The National Coast Guard Mu-
seum may be located at, or in close proximity to, the Coast
Guard Academy in New London, Connecticut.
‘‘(c) LIMITATION
ON EXPENDITURES.—The Sec-
retary of the Department in which the Coast Guard is op-
erating shall not expend any Federal funds for the plan-
ning, engineering, design, construction, operation, or
maintenance of any museum established under subsection
(a).
‘‘(d) OPERATION AND MAINTENANCE PLAN.—Before
the date on which the Commandant establishes a museum
under subsection (a), the Commandant shall provide to the
Committee on Transportation and Infrastructure of the
House of Representatives a plan for operating and main-
taining such a museum, including—
‘‘(1) estimated operation and maintenance
costs;
‘‘(2) proposed sources of operation and mainte-
nance funds; and
‘‘(3) a certification by the Inspector General of
the Department in which the Coast Guard is oper-
ating that items included in the plan pursuant to
paragraph (1) and (2) are reasonable and realistic.’’.
(b) CLERICAL AMENDMENT.—The table of sections
at the beginning of chapter 5 of title 14, United States
Code, is amended by adding at the end the following:
‘‘98. National Coast Guard Museum.’’.
SEC. 214. LIMITATION ON NUMBER OF COMMISSIONED OF-
FICERS.
Notwithstanding section 42(a) of title 14, United
States Code, the total number of commissioned officers,
excluding commissioned warrant officers, on active duty
in the Coast Guard shall not exceed 6,700 in fiscal year
2004.
SEC. 215. REDISTRICTING NOTIFICATION REQUIREMENT.
The Commandant shall notify the Committee on
Transportation and Infrastructure of the House of Rep-
resentatives at least 180 days before—
(1) implementing any plan to reduce the num-
ber of, change the location of, or change the geo-
graphic area covered by any existing Coast Guard
Districts; or
(2) shifting of more than 10 per cent of the
personnel or equipment from the station where such
personnel or equipment is based.
SEC. 216. ROTC DEMONSTRATION PROJECT.
(a) IN GENERAL.—For the purpose of preparing se-
lected students for commissioned service in the Coast
Guard, the Secretary of the Department in which the
Coast Guard is operating (in this section referred to as
the ‘‘Secretary’’), in consultation with the Superintendent
of the Coast Guard Academy, may establish and maintain
a Senior Reserve Officers’ Training Corps demonstration
project at the University of Alaska (in this section referred
to as the ‘‘University’’).
(b) OBLIGATIONS OF UNIVERSITY, GENERALLY.—As
part of any demonstration project undertaken under this
section, the University shall—
(1) give the senior commissioned Coast Guard
officer who is assigned to the project the academic
rank of professor;
(2) adopt, as a part of its curriculum, a 4-year
course of military instruction as prescribed by the
Secretary; and
(3) provide advanced training to eligible mem-
bers of the project.
(c) STUDENT ELIGIBILITY.—To be eligible for mem-
bership in the project an individual must—
(1) be a student at the University;
(2) be a citizen of the United States;
(3) be selected for advanced training under pro-
cedures prescribed by the Secretary;
(4) enlist in the Coast Guard for the period
prescribed by the Secretary;
(5) contract (with the consent of the individ-
ual’s parent or guardian if the individual is a minor)
with the Secretary, or a designated representative of
the Secretary, to serve for the period required by the
program;
(6) agree in writing to accept an appointment,
if offered, as a commissioned officer in the Coast
Guard and to serve for the period prescribed by the
Secretary;
(7) either—
(A) complete successfully—
(i) the first 2 years of the 4-year Sen-
ior Coast Guard Reserve Officers’ Training
Corps course; or
(ii) field training or a practice cruise
of a duration prescribed by the Secretary
as a preliminary requirement for admission
to the advanced course; or
(B) at the discretion of the Secretary con-
cerned, agree in writing to complete field train-
ing or a practice cruise, as prescribed by the
Secretary, within 2 years after admission to the
advanced course; and
(8) execute a certificate of loyalty in such form
as the Secretary prescribes or take a loyalty oath as
prescribed by the Secretary.
(d) SERVICE OBLIGATION.—A member of the project
who is selected for advanced training under subsection (c),
and who does not complete the course of instruction, or
who completes the course but declines to accept a commis-
sion when offered, may be ordered to active duty by the
Secretary to serve in the member’s enlisted grade or rating
for such period of time as the Secretary prescribes but
not for more than 2 years.
(e) APPOINTMENT AS OFFICER.—
(1) IN
GENERAL.—Upon satisfactorily com-
pleting the academic and military requirements of
the program of advanced training under subsection
(c), a member of the project who was selected for
advanced training under subsection (c) may be ap-
pointed as a regular or reserve officer in the Coast
Guard in the grade of second lieutenant or ensign,
even if under 21 years of age.
(2) DATE OF RANK.—The date of rank of offi-
cers appointed under this subsection in May or June
of any year is the date of graduation of cadets from
the Coast Guard Academy. The Secretary shall es-
tablish the date of rank of all other officers ap-
pointed under this subsection.
(3) COMPUTATION OF LENGTH OF SERVICE.—
In computing length of service for any purpose, an
officer appointed under this subsection may not be
credited with enlisted service for the period covered
by advanced training under this section, other than
any period of enlisted service performed in the Coast
Guard.
(f) APPOINTMENT AS CADET.—
(1) IN GENERAL.—The Secretary may appoint
as a cadet in the Coast Guard reserve any eligible
member of the project who will be under 31 years
of age on December 31 of the calendar year in which
the member is eligible under this section for appoint-
ment as an ensign in the Coast Guard.
(2) ELIGIBILITY REQUIREMENTS.—To be an el-
igible member of the project for purposes of para-
graph (1) a member must—
(A) be a citizen of the United States;
(B) be specially selected for the financial
assistance program under procedures prescribed
by the Secretary;
(C) enlist in the Coast Guard reserve as a
cadet for the period prescribed by the Sec-
retary;
(D) contract (with the consent of the mem-
ber’s parent or guardian if the member is a
minor) with the Secretary, or a designated rep-
resentative of the Secretary, to serve for the pe-
riod required by the project; and
(E) agree in writing that, at the discretion of
the Secretary, the member will—
(i)(I) accept an appointment, if offered, as
a commissioned officer in Coast Guard, and, if
the member is commissioned as a regular offi-
cer and the member’s regular commission is
terminated before the sixth anniversary of the
member’s date of rank, the member accept an
appointment, if offered, in the Coast Guard re-
serve and not resign before that anniversary or
before such other date, not beyond the eighth
anniversary of the member’s date of rank, that
the Secretary may prescribe; and
(II) serve on active duty for 4 or more
years;
(ii)(I) accept an appointment, if offered, as
a commissioned officer in the Coast Guard; and
(II) serve in the Coast Guard reserve until
the eighth anniversary of the receipt of such ap-
pointment, unless otherwise extended under
subsection (g)(4), under such terms and condi-
tions as shall be prescribed by the Secretary; or
(iii)(I) accept an appointment, if offered,
as a commissioned officer in the Coast Guard;
and
(II) serve in the Coast Guard reserve until
at least the sixth anniversary and, at the discre-
tion of the Secretary, up to the eighth anniver-
sary of the receipt of such appointment, unless
such appointment is otherwise extended under
subsection (g)(4), under such terms and condi-
tions as may be prescribed by the Secretary.
The performance of service under subparagraph
(E)(ii) or (E)(iii) may include periods of active duty,
active duty for training, and other service in an ac-
tive or inactive status in the Coast Guard reserve,
except that performance of service under subpara-
graph (E)(iii) shall include not less than 2 years of
active duty.
(3) APPOINTMENT
AS
OFFICER.—Upon satis-
factorily completing the academic and military re-
quirements of the project, a cadet may be appointed
as a regular or reserve officer in the grade of second
lieutenant or ensign, even if under 21 years of age.
(4) DATE OF RANK.—The date of rank of offi-
cers appointed under this subsection in May or June
of any year is the date of graduation of cadets from
Coast Guard Academy in that year. The Secretary
shall establish the date of rank of all other officers
appointed under this subsection.
(5) SERVICE OBLIGATION.—A cadet who does
not complete the 4-year course of instruction, or who
completes the course but declines to accept a com-
mission when offered, may be ordered to active duty
by the Secretary to serve in the member’s enlisted
grade or rating for such period of time as the Sec-
retary prescribes but not for more than 4 years.
(g) ADVANCED STANDING.—
(1) IN GENERAL.—The Secretary may give to
any enlisted member of the Coast Guard, or any per-
son who has served on active duty in any armed
force, such advanced standing in the program as
may be justified by the member’s education and
training.
(2) ELIGIBILITY FOR ADVANCED TRAINING.—In
determining a member’s eligibility for advanced
training, the Secretary may credit the member with
any military training that is substantially equivalent
in kind to that prescribed for admission to advanced
training and was received while the member was tak-
ing a course of instruction in a program under the
jurisdiction of another armed force or while the
member was on active duty in the armed forces.
(3) EXCUSE
FROM
PRESCRIBED
INSTRUC-
TION.—The Secretary may excuse from a portion of
the prescribed course of military instruction, includ-
ing field training and practice cruises, any member
found qualified on the basis of the member’s pre-
vious education, military experience, or both.
(4) 
PARTICIPATION
FOLLOWING
UNDER-
GRADUATE
STUDIES.—An individual may become,
remain, or be readmitted as, a member of the ad-
vanced 
training 
program 
after 
receiving 
a
baccalaureate degree or completing preprofessional
studies if the member has not completed the course
of military instruction or all field training or prac-
tice cruises prescribed by the Secretary. If a member
of the project has been accepted for resident grad-
uate or professional study, the Secretary may delay
the commencement of the member’s obligated period
of active duty, and any obligated period of active
duty for training or other service in an active or in-
active status in the Coast Reserve, until the member
has completed that study.
(5) RELEASE FROM PROJECT.—The Secretary,
if the Secretary determines that the interest of the
service so requires, may release any individual from
the project and discharge the member from the
Coast Guard.
(h) MISCELLANEOUS AUTHORITIES.—
(1) IN GENERAL.—The Secretary may issue to
the senior commissioned Coast Guard officer who is
assigned to the project, or to the officers of the
Coast Guard who are designated as accountable or
responsible for such property—
(A) supplies, means of transportation in-
cluding aircraft, arms and ammunition, and
military textbooks and educational materials;
and
(B) uniform clothing, except that he may
pay monetary allowances for uniform clothing
at such rate as he may prescribe.
(2) FLIGHT INSTRUCTION.—The Secretary may
provide, or contract with civilian flying or aviation
schools or educational institutions to provide, the
personnel, aircraft, supplies, facilities, services, and
instruction necessary for flight instruction and ori-
entation for properly designated members of the
project.
(3) MEDICAL CARE.—The Secretary—
(A) may transport members of, and des-
ignated applicants for membership in, the
project to and from installations when it is nec-
essary for them to undergo medical or other ex-
aminations or for the purposes of making visits
of observation; and
(B) may furnish to such members subsist-
ence, quarters, and necessary medical care, in-
cluding hospitalization, while they are at, or
traveling to or from, such an installation.
(4) 
PARTICIPATION
IN
FLIGHTS
AND
CRUISES.—The Secretary may authorize members
of, and designated applicants for membership in, the
project to participate in aerial flights in Coast
Guard aircraft and in indoctrination cruises in naval
vessels.
(5) FINANCIAL
ASSISTANCE.—The Secretary
may, to the extent amounts are available, provide for
the payment of financial assistance to students par-
ticipating in the project, including for tuition, fees,
books, and laboratory expenses.
(i) DETAIL OF RESERVE OFFICERS.—The Secretary
may detail regular or reserve Coast Officers for instruc-
tional and administrative duties related to the project.
SEC. 217. SHOCK MITIGATION REQUIREMENTS.
(a) REQUIREMENTS.—Chapter 17 of title 14, United
Sates Code, is amended by adding the end the following:
‘‘§ 675. Shock mitigation requirements
‘‘(a) The Secretary shall establish a shock standard
for Coast Guard vessels.
‘‘(b) The Secretary shall include shock mitigation re-
quirements for boat decking in each procurement of a ves-
sel for the Coast Guard that does not meet the standard
established under subsection (a).
‘‘(c) Requirements under subsection (a) shall specify
the weight and durability of decking material, effects on
decking material of repeated use and weather conditions,
and the capability of decking material to mitigate im-
pacts.’’.
(b) CLERICAL AMENDMENT.—The table of sections
at the beginning of chapter 17, of title 14, United States
Code, is amended by adding at the end the following:
‘‘675. Shock mitigation requirements.’’.
SEC. 218. COAST GUARD YARD.
(a) IN GENERAL.—Section 648 of title 14, United
States Code, is amended by—
(1) amending the section heading to read as fol-
lows:
‘‘§ 648. Industrial work’’;
(2) inserting ‘‘(a)’’ before the existing text; and
(3) adding at the end the following:
‘‘(b) The Commandant may enter into a contract or
cooperative agreement with any person for the perform-
ance of work on a local, State, or Federal government ves-
sel, or the engine, ordnance, electronics, or other equip-
ment related to such a vessel.’’.
(b) CLERICAL AMENDMENT.—The table of sections
at the beginning of chapter 17 of title 14, United States
Code, is amended by amending the item relating to section
648 to read as follows:
‘‘648. Industrial work.’’.
SEC. 219. RECOMMENDATIONS TO CONGRESS BY COM-
MANDANT OF THE COAST GUARD.
Section 93 of title 14, United States Code, is
amended—
(1) in paragraph (w) by striking ‘‘and’’ after
the semicolon at the end;
(2) in paragraph (x) by striking the period at
the end and inserting ‘‘; and’’; and
(3) by adding at the end the following:
‘‘(y) after informing the Secretary, make such
recommendations to the Congress relating to the
Coast Guard as the Commandant considers appro-
priate.’’.
SEC. 220. ASSIGNMENT OF OFFICER TO NATIONAL WAR
COLLEGE.
(a) IN GENERAL.—Chapter 7 of title 14, United
States Code, is amended by adding at the end the fol-
lowing:
‘‘§ 152. Assignment of officer to National War College
‘‘The Commandant shall assign an officer in the
grade of captain to serve as the Coast Guard’s Service
Chair at the National War College.’’.
(b) CLERICAL AMENDMENT.—The table of contents
at the beginning of chapter 7 of title 14, United States
Code, is amended by adding at the end the following:
‘‘152. Assignment of officer to National War College.’’.
SEC. 221. COAST GUARD EDUCATION LOAN REPAYMENT
PROGRAM.
(a) PROGRAM AUTHORIZED.—Chapter 13 of title 14,
United States Code, is amended by inserting after section
471 the following:
‘‘§ 472. Education loan repayment program
‘‘(a)(1) Subject to the provisions of this section, the
Secretary may repay—
‘‘(A) any loan made, insured, or guaranteed
under part B of title IV of the Higher Education
Act of 1965 (20 U.S.C. 1071 et seq.);
‘‘(B) any loan made under part D of such title
(the William D. Ford Federal Direct Loan Program,
20 U.S.C. 1087a et seq.); or
‘‘(C) any loan made under part E of such title
(20 U.S.C. 1087aa et seq.).
Repayment of any such loan shall be made on the basis
of each complete year of service performed by the bor-
rower.
‘‘(2) The Secretary may repay loans described in
paragraph (1) in the case of any person for service per-
formed on active duty as an enlisted member of the Coast
Guard in a specialty specified by the Secretary.
‘‘(b) The portion or amount of a loan that may be
repaid under subsection (a) is 331⁄3 percent or $1,500,
whichever is greater, for each year of service.
‘‘(c) If a portion of a loan is repaid under this section
for any year, interest on the remainder of such loan shall
accrue and be paid in the same manner as is otherwise
required.
‘‘(d) Nothing in this section shall be construed to au-
thorize refunding any repayment of a loan.
‘‘(e) The Secretary shall, by regulation, prescribe a
schedule for the allocation of funds made available to carry
out this section during any year for which funds are not
sufficient to pay the sum of the amounts eligible for repay-
ment under subsection (a).’’.
(b) CLERICAL AMENDMENT.—The table of sections
at the beginning of chapter 13 of title 14, United States
Code, is amended by inserting after the item relating to
section 471 the following:
‘‘472. Education loan repayment program.’’.
TITLE III—NAVIGATION
SEC. 301. MARKING OF UNDERWATER WRECKS.
Section 15 of the Act of March 3, 1899 (33 U.S.C.
409), is amended—
(1) by striking ‘‘day and’’ and inserting ‘‘day
and, unless otherwise authorized by the Com-
mandant of the Coast Guard,’’; and
(2) by striking ‘‘lighted lantern’’ and inserting
‘‘light’’.
SEC. 302. USE OF ELECTRONIC DEVICES; COOPERATIVE
AGREEMENTS.
Section 4(a) of the Ports and Waterways Safety Act
of 1972 (33 U.S.C. 1223(a)) is amended by—
(1)(A) striking ‘‘and’’ after the semicolon at the
end of paragraph (4);
(B) striking the period at the end of paragraph
(5) and inserting ‘‘; and’’; and
(C) adding at the end the following:
‘‘(6) may prohibit the use on the bridge of a
vessel of electronic or other devices that interfere
with communications and navigation equipment.’’;
and
(2) adding at the end the following:
‘‘(e) COOPERATIVE AGREEMENTS.—(1) The Sec-
retary may enter into cooperative agreements with public
or private agencies, authorities, associations, institutions,
corporations, organizations, or other persons to carry out
the functions under subsection (a)(1).
‘‘(2) A nongovernmental entity may not under this
subsection carry out an inherently governmental function.
‘‘(3) As used in this paragraph, the term ‘inherently
governmental function’ means any activity that is so inti-
mately related to the public interest as to mandate per-
formance by an officer or employee of the Federal Govern-
ment, including an activity that requires either the exer-
cise of discretion in applying the authority of the Govern-
ment or the use of judgment in making a decision for the
Government.’’.
SEC. 303. INLAND NAVIGATION RULES PROMULGATION AU-
THORITY.
(a) REPEAL OF INLAND RULES.—Section 2 of the
Inland Navigational Rules Act of 1980 (33 U.S.C. 2001–
38) is repealed.
(b) AUTHORITY TO ISSUE REGULATIONS.—Section 3
of the Inland Navigational Rules Act of 1980 (33 U.S.C.
2001) is amended to read as follows:
‘‘SEC. 3. INLAND NAVIGATION RULES.
‘‘The Secretary of the Department in which the Coast
Guard is operating may issue inland navigation regula-
tions applicable to all vessels upon the inland waters of
the United States and technical annexes that are as con-
sistent as possible with the respective annexes to the Inter-
national Regulations.’’.
(c) EFFECTIVE DATE.—Subsection (a) is effective on
the effective date of final regulations prescribed by the
Secretary of the Department in which the Coast Guard
is operating under section 3 of the Inland Navigation
Rules Act of 1980 (33 U.S.C. 2001), as amended by this
Act.
TITLE IV—SHIPPING
SEC. 401. REPORTS FROM CHARTERERS.
Section 12120 of title 46, United States Code, is
amended by striking ‘‘owners and masters’’ and inserting
‘‘owners, masters, and charterers’’.
SEC. 402. SUSPENSION OF DOCUMENTS IN LIEU OF MANDA-
TORY REVOCATION FOR PROVED DRUG CON-
VICTIONS.
Section 7704(b) of title 46, United States Code, is
amended by inserting ‘‘suspended or’’ after ‘‘shall be’’.
SEC. 403. INSPECTION OF RECORDS OF MERCHANT MARI-
NERS’ DOCUMENTS.
Section 7319 of title 46, United States Code, is
amended by striking ‘‘The records are not open to general
or public inspection.’’.
SEC. 404. EXEMPTION OF UNMANNED BARGES FROM CITI-
ZENSHIP REQUIREMENTS REGARDING COM-
MAND OF VESSEL.
(a) EXEMPTION FROM LIMITATION ON COMMAND.—
Section 12110(d) of title 46, United States Code, is
amended by inserting ‘‘or an unmanned barge not engaged
on a coastwise voyage’’ after ‘‘recreational endorsement’’.
(b) 
EXEMPTION
FROM
SEIZURE
AND
FOR-
FEITURE.—Section 12122(b)(6) of title 46, United States
Code, is amended by inserting ‘‘or an unmanned barge not
engaged on a coastwise voyage’’ after ‘‘recreational en-
dorsement’’.
SEC. 405. COMPLIANCE WITH INTERNATIONAL SAFETY
MANAGEMENT CODE.
(a) APPLICATION
OF
EXISTING
LAW.—Section
3202(a) of title 46, United States Code, is amended to
read as follows:
‘‘(a) MANDATORY APPLICATION.—This chapter ap-
plies to a vessel that—
‘‘(1)(A) is transporting more than 12 pas-
sengers described in section 2101(21)(A) of this
title; or
‘‘(B) is of at least 500 gross tons as measured
under section 14502 of this title, or an alternate
tonnage measured under section 14302 of this title
as prescribed by the Secretary under section 14104
of this title, that is a tanker, freight vessel, bulk
freight vessel, high speed freight vessel, or self-pro-
pelled mobile offshore drilling unit; and
‘‘(2)(A) is engaged on a foreign voyage; or
‘‘(B) is a foreign vessel departing from a place
under the jurisdiction of the United States on a voy-
age, any part of which is on the high seas.’’.
(b) COMPLIANCE OF REGULATIONS WITH INTER-
NATIONAL
SAFETY
MANAGEMENT
CODE.—Section
3203(b) of title 46, United States Code, is amended by
striking ‘‘vessels engaged on a foreign voyage.’’ and insert-
ing ‘‘vessels to which this chapter applies under section
3202(a) of this title.’’.
SEC. 406. CIVIL PENALTIES FOR FAILURE TO COMPLY WITH
RECREATIONAL VESSEL AND ASSOCIATED
EQUIPMENT SAFETY STANDARDS.
Section 4311(b) of title 46, United States Code, is
amended—
(1) by striking the first sentence and inserting
‘‘A person violating section 4307(a) of this title is
liable to the United States Government for a civil
penalty of not more than $5,000, except that the
maximum civil penalty may be not more than
$250,000 for a related series of violations.’’; and
(2) in the second sentence, by striking
‘‘4307(a)(1)’’ and inserting ‘‘4307(a)’’.
SEC. 407. REVISION OF TEMPORARY SUSPENSION CRITERIA
IN DOCUMENT SUSPENSION AND REVOCA-
TION CASES.
Section 7702(d) of title 46, United States Code, is
amended—
(1) in paragraph (1) by striking ‘‘if, when act-
ing under the authority of that license, certificate, or
document—’’ and inserting ‘‘if—’’;
(2) in paragraph (1)(B)(i), by inserting ‘‘, while
acting under the authority of that license, certificate,
or document,’’ after ‘‘has’’;
(3) by striking ‘‘or’’ after the semicolon at the
end of paragraph (1)(B)(ii);
(4) by striking the period at the end of para-
graph (1)(B)(iii) and inserting ‘‘; or’’; and
(5) by adding at the end of paragraph (1)(B)
the following:
‘‘(iv) is a threat to the safety or security
of a vessel or a public or commercial structure
located within or adjacent to the marine envi-
ronment.’’.
SEC. 408. REVISION OF BASES FOR DOCUMENT SUSPEN-
SION AND REVOCATION CASES.
Section 7703 of title 46, United States Code, is
amended—
(1) in paragraph (1)(B)—
(A) by striking ‘‘incompetence,’’; and
(B) by striking the comma after ‘‘mis-
conduct’’;
(2) by striking ‘‘or’’ after the semicolon at the
end of paragraph (2);
(3) by striking the period at the end of para-
graph (3) and inserting a semicolon; and
(4) by adding at the end the following:
‘‘(4) has committed an act of incompetence; or
‘‘(5) is a threat to the safety or security of a
vessel or a structure located within or adjacent to
the marine environment.’’.
SEC. 409. HOURS OF SERVICE ON TOWING VESSELS.
(a) REGULATIONS.—Section 8904 of title 46, United
States Code, is amended by adding at the end of the fol-
lowing:
‘‘(c) The Secretary may prescribe by regulation re-
quirements for maximum hours of service (including re-
cording and record-keeping of that service) of individuals
engaged on a towing vessel that is at least 26 feet in
length measured from end to end over the deck (excluding
the sheer).’’.
(b) DEMONSTRATION
PROJECT.—Prior to pre-
scribing regulations under this section the Secretary shall
conduct and report to the Congress on the results of a
demonstration project involving the implementation of
Crew Endurance Management Systems on towing vessels.
The report shall include a description of the public and
private sector resources needed to enable implementation
of Crew Endurance Management Systems on all United
States-flag towing vessels.
SEC. 410. AUTOMATIC IDENTIFICATION SYSTEM ELEC-
TRONIC CHARTS.
Section 70114(a)(1) of title 46, United States Code,
is amended by inserting ‘‘, including an electronic chart
and related display,’’ after ‘‘automatic identification sys-
tem’’ the first place it appears.
SEC. 411. PREVENTION OF DEPARTURE.
(a) IN GENERAL.—Section 3505 of title 46, United
States Code, is amended to read as follows:
‘‘§ 3505. Prevention of departure
‘‘Notwithstanding section 3303 of this title, a foreign
vessel carrying a citizen of the United States as a pas-
senger or that embarks passengers from a United States
port may not depart from a United States port if the Sec-
retary finds that the vessel does not comply with the
standards stated in the International Convention for the
Safety of Life at Sea to which the United States Govern-
ment is currently a party.’’.
(b) CONFORMING AMENDMENT.—Section 3303 of
title 46, United States Code, is amended by inserting ‘‘and
section 3505’’ after ‘‘chapter 37’’.
SEC. 412. SERVICE OF FOREIGN NATIONALS FOR MARITIME
EDUCATIONAL PURPOSES.
Section 8103(b)(1)(A) of title 46, United State Code,
is amended to read as follows:
‘‘(A) each unlicensed seaman must be—
‘‘(i) a citizen of the United States;
‘‘(ii) an alien lawfully admitted to the
United States for permanent residence; or
‘‘(iii) a foreign national who is enrolled in
the United States Merchant Marine Academy.’’.
SEC. 413. CLASSIFICATION SOCIETIES.
(a) IN GENERAL.—Section 3316 of title 46, United
States Code, is amended by adding at the end the fol-
lowing:
‘‘(c)(1) A person shall not operate in interstate or for-
eign commerce as a classification society unless the Sec-
retary has reviewed and approved the person with respect
to the conduct of those operations.
‘‘(2) The Secretary may approve a person for pur-
poses of paragraph (1) only if the Secretary determines
that—
‘‘(A) the vessels surveyed by the person while
acting as a classification society have an adequate
safety record; and
‘‘(B) the person has an adequate program to—
‘‘(i) develop safety standards for vessels
surveyed by the person;
‘‘(ii) make the safety records of the person
available to the Secretary in an electronic for-
mat;
‘‘(iii) provide the safety records of a vessel
surveyed by the person to any other classifica-
tion society that requests those records for the
purpose of conducting a survey of the vessel;
and
‘‘(iv) request the safety records of a vessel
the person will survey from any classification
society that previously surveyed the vessel.
‘‘(3) The Secretary shall issue regulations imple-
menting this subsection, including regulations describing
activities that constitute operation in interstate or foreign
commerce as a classification society.’’.
(b) APPLICATION.—Section 3316(c)(1) of title 46,
United States Code, shall apply with respect to operation
as a classification society on or after January 1, 2005.
SEC. 414. MEMBERSHIP OF AREA MARITIME SECURITY AD-
VISORY COMMITTEES.
Section 70112(b) of title 46, United States Code, is
amended by adding at the end to following:
‘‘(5) Membership of an Area Maritime Security Advi-
sory Committee shall include representatives of the port
industry, terminal operators, port labor organizations, and
other users of the port areas.’’.
SEC. 415. SECURITY PLANS.
Section 70103(c) of title 46, United States Code, is
amended—
(1) in paragraph (1)—
(A) by striking ‘‘operator of a vessel or fa-
cility’’ and inserting ‘‘operator of a vessel (in-
cluding a foreign vessel) or facility’’; and
(B) by striking ‘‘a security plan’’ and in-
serting ‘‘in writing a detailed security plan’’;
(2) in paragraph (5), by striking ‘‘A vessel’’
and inserting ‘‘A vessel (including a foreign vessel)’’;
(3) in paragraph (6), by inserting ‘‘(including a
foreign vessel)’’ after ‘‘authorize a vessel’’; and
(4) in paragraph (7), by inserting ‘‘(including a
foreign vessel)’’ after ‘‘operator of a vessel’’.
TITLE V—FEDERAL MARITIME
COMMISSION
SEC. 501. AUTHORIZATION OF APPROPRIATIONS FOR FED-
ERAL MARITIME COMMISSION.
There is authorized to be appropriated to the Federal
Maritime Commission $18,471,000 for Fiscal Year 2004.
TITLE VI—MISCELLANEOUS
SEC. 601. INCREASE IN CIVIL PENALTIES FOR VIOLATIONS
OF CERTAIN BRIDGE STATUTES.
(a) GENERAL BRIDGE ACT OF 1906.—Section 5(b)
of Act of March 23, 1906 (chapter 1130; 33 U.S.C. 495),
popularly known as the General Bridge Act, is amended
by striking ‘‘$1,000’’ and inserting ‘‘$5,000 for a violation
occurring in 2004; $10,000 for a violation occurring in
2005; $15,000 for a violation occurring in 2006; $20,000
for a violation occurring in 2007; and $25,000 for a viola-
tion occurring in 2008 and any year thereafter’’.
(b) DRAWBRIDGES.—Section 5(c) of the Act entitled
‘‘An Act making appropriations for the construction, re-
pair, and preservation of certain public works on rivers
and harbors, and for other purposes’’, approved August
18, 1894 (33 U.S.C. 499(c)), is amended by striking
‘‘$1,000’’ and inserting ‘‘$5,000 for a violation occurring
in 2004; $10,000 for a violation occurring in 2005;
$15,000 for a violation occurring in 2006; $20,000 for a
violation occurring in 2007; and $25,000 for a violation
occurring in 2008 and any year thereafter’’.
(c) 
ALTERATION, 
REMOVAL, 
OR
REPAIR
OF
BRIDGES.—Section 18(c) of the Act entitled ‘‘An Act
making appropriations for the construction, repair, and
preservation of certain public works on rivers and harbors,
and for other purposes’’, approved March 3, 1899 (33
U.S.C. 502(c)) is amended by striking ‘‘$1,000’’ and in-
serting ‘‘$5,000 for a violation occurring in 2004; $10,000
for a violation occurring in 2005; $15,000 for a violation
occurring in 2006; $20,000 for a violation occurring in
2007; and $25,000 for a violation occurring in 2008 and
any year thereafter’’.
(d) GENERAL
BRIDGE
ACT
OF
1946.—Section
510(b) of the General Bridge Act of 1946 (33 U.S.C.
533(b)) is amended by striking ‘‘$1,000’’ and inserting
‘‘$5,000 for a violation occurring in 2004; $10,000 for a
violation occurring in 2005; $15,000 for a violation occur-
ring in 2006; $20,000 for a violation occurring in 2007;
and $25,000 for a violation occurring in 2008 and any
year thereafter’’.
SEC. 602. CONVEYANCE OF DECOMMISSIONED COAST
GUARD CUTTERS.
(a) IN GENERAL.—The Commandant of the Coast
Guard shall convey all right, title, and interest of the
United States in and to a vessel described in subsection
(b) to the person designated in subsection (b) with respect
to the vessel (in this section referred to as the ‘‘recipi-
ent’’), without consideration, if the person complies with
the conditions under subsection (c).
(b) VESSELS DESCRIBED.—The vessels referred to in
subsection (a) are the following:
(1) The Coast Guard Cutter BRAMBLE, to be
conveyed to the Port Huron Museum of Arts and
History (a nonprofit corporation under the laws of
the State of Michigan), located in Port Huron,
Michigan.
(2) The Coast Guard Cutter PLANETREE, to
be conveyed to Jewish Life (a nonprofit corporation
under the laws of the State of California), located in
Sherman Oaks, California.
(3) The Coast Guard Cutter SUNDEW, to be
conveyed to Duluth Entertainment and Convention
Center Authority (a nonprofit corporation under the
laws of the State of Minnesota), located in Duluth,
Minnesota.
(c) CONDITIONS.—As a condition of any conveyance
of a vessel under subsection (a), the Commandant shall
require the recipient to—
(1) agree—
(A) to use the vessel for purposes of edu-
cation and historical display;
(B) not to use the vessel for commercial
transportation purposes;
(C) to make the vessel available to the
United States Government if needed for use by
the Commandant in time of war or a national
emergency; and
(D) to hold the Government harmless for
any claims arising from exposure to hazardous
materials, 
including 
asbestos 
and 
poly-
chlorinated biphenyls (PCBs), after conveyance
of the vessel, except for claims arising from use
of the vessel by the Government under subpara-
graph (C);
(2) have funds available that will be committed
to operate and maintain the vessel conveyed in good
working condition—
(A) in the form of cash, liquid assets, or
a written loan commitment; and
(B) in an amount of at least $700,000;
and
(3) agree to any other conditions the Com-
mandant considers appropriate.
(d) MAINTENANCE AND DELIVERY OF VESSEL.—
Prior to conveyance of a vessel under this section, the
Commandant shall, to the extent practical, and subject to
other Coast Guard mission requirements, make every ef-
fort to maintain the integrity of the vessel and its equip-
ment until the time of delivery. The Commandant shall
deliver a vessel conveyed under this section at the place
where the vessel is located, in its present condition, and
without cost to the Government. The conveyance of a ves-
sel under this section shall not be considered a distribution
in commerce for purposes of section 6(e) of Public Law
94–469 (15 U.S.C. 2605(e)).
(e) OTHER EXCESS EQUIPMENT.—The Commandant
may convey to the recipient of a vessel under this section
any excess equipment or parts from other decommissioned
Coast Guard vessels for use to enhance the vessel’s oper-
ability and function as an historical display.
SEC. 603. TONNAGE MEASUREMENT.
(a) M/V BLUEFIN.—The gross tonnage of the M/
V BLUEFIN (United States official number 620431) as
measured under regulations prescribed under section
14502 of title 46, United States Code, is deemed to be
488 tons.
(b) M/V COASTAL MERCHANT.—The gross ton-
nage of the M/V COASTAL MERCHANT (United States
official number 1038382) as measured under regulations
prescribed under section 14502 of title 46, United States
Code, is deemed to be 493 tons.
(c) TERMINATION OF APPLICATION.—Subsection (a)
or (b) shall not apply on and after any date on which the
Secretary of the Department in which the Coast Guard
is operating determines, respectively, that the vessel M/
V BLUEFIN or the vessel M/V COASTAL MERCHANT
has undergone any major modification.
SEC. 604. OPERATION OF VESSEL STAD AMSTERDAM.
(a) IN GENERAL.—Notwithstanding section 8 of the
Act of June 19, 1886 (46 App. U.S.C. 289), and the rul-
ing by the Acting Director of the International Trade
Compliance Division of the Customs Service on May 17,
2002 (Customs Bulletins and Decisions, Vol. 36, No. 23,
June 5, 2002), the vessel STAD AMSTERDAM (Inter-
national Maritime Organization number 9185554) shall be
authorized to carry within United States waters and be-
tween ports or places in the United States individuals who
are not directly and substantially connected with the oper-
ation, navigation, ownership, or business of the vessel, who
are friends, guests, or employees of the owner of the ves-
sel, and who are not actual or prospective customers for
hire of the vessel.
(b) LIMITATION.—This section does not authorize the
vessel STAD AMSTERDAM to be used to carry individ-
uals for a fare or to be chartered on a for-hire basis in
the coastwise trade.
SEC. 605. GREAT LAKES NATIONAL MARITIME ENHANCE-
MENT INSTITUTE.
(a) DESIGNATION.—The Secretary of Transportation
may designate a National Maritime Enhancement Insti-
tute for the Great Lakes Region.
(b) AUTHORIZED ACTIVITIES.—In addition to the ac-
tivities that may be undertaken by that Institute under
section 8(b) of Public Law 101–115 (46 App. U.S.C.
1121–2), the Great Lakes National Maritime Enhance-
ment Institute may—
(1) conduct research and evaluate short sea
shipping market opportunities on the Great Lakes,
including the expanded use of freight ferries, im-
proved mobility, and regional supply chain efficiency;
(2) evaluate markets for foreign trade between
ports on the Great Lakes and draft-limited ports in
Europe and Africa;
(3) evaluate the environmental benefits of wa-
terborne transportation in the Great Lakes region;
(4) analyze the effect of the Harbor Mainte-
nance Tax on Great Lakes shipping;
(5) study the state of shipbuilding and ship re-
pair base on the Great Lakes;
(6) evaluate opportunities for passenger vessel
services on the Great Lakes;
(7) analyze the origin to destination flow of
freight cargo in the Great Lakes region that may be
transported on vessels to relieve congestion in other
modes of transportation;
(8) evaluate the economic viability establishing
transshipment facilities for oceangoing cargoes;
(9) evaluate the adequacy of the infrastructure
in ports to meet the needs of marine commerce; and
(10) study and develop new vessel designs for
domestic and international shipping on the Great
Lakes.
(c) AUTHORIZATION OF APPROPRIATIONS.—There is
authorized to be appropriated to the Secretary $5,000,000
for each of fiscal years 2004 through 2008 for the activi-
ties described in subsection (b).
SEC. 606. AGILE PORT AND INTELLIGENT BORDER SECU-
RITY NATIONAL DEMONSTRATION PROJECT.
(a) IN GENERAL.—The Secretary of Transportation
may carry out an Agile Port and Intelligent Border Secu-
rity National Demonstration Project under the Center for
the Commercial Deployment of Transportation Tech-
nologies to develop and deploy dual use transportation
technologies for commercial applications, including the fol-
lowing:
(1) Agile port facilities, including inland multi-
modal transportation facilities.
(2) Advanced cargo and passenger vessel hull
design, propulsion systems, and construction.
(3) Regional supply chain efficiency, improved
mobility, and air quality.
(4) Maritime, port, cargo, and supply chain se-
curity, and total asset visibility.
(b) AUTHORIZATION OF APPROPRIATIONS.—To carry
out the demonstration project under subsection (a) there
is authorized to be appropriated to the Secretary of Trans-
portation $5,000,000 for fiscal year 2004.
SEC. 607. KOSS COVE.
(a) IN GENERAL.—Notwithstanding any other provi-
sion of law or existing policy, the cove described in sub-
section (b) shall be known and designated as ‘‘Koss Cove’’,
in honor of the late Able Bodied Seaman Eric Steiner
Koss of the National Oceanic and Atmospheric Adminis-
tration vessel RAINIER who died in the performance of
a nautical charting mission off the coast of Alaska.
(b) COVE DESCRIBED.—The cove referred to in sub-
section (a) is—
(1) adjacent to and southeast of Point
Elrington, Alaska, and forms a portion of the south-
ern coast of Elrington Island;
(2) 3⁄4 mile across the mouth;
(3) centered at 59 degrees 56.1 minutes North,
148 degrees 14 minutes West; and
(4) 45 miles from Seward, Alaska.
(c) REFERENCES.—Any reference in any law, regula-
tion, document, record, map, or other paper of the United
States to the cove described in subsection (b) is deemed
to be a reference to Koss Cove.
SEC. 608. MISCELLANEOUS CERTIFICATES OF DOCUMENTA-
TION.
Notwithstanding section 27 of the Merchant Marine
Act, 1920 (46 App. U.S.C. 883), section 8 of the Act of
June 19, 1886 (24 Stat. 81, chapter 421; 46 App. U.S.C.
289), and section 12106 of title 46, United States Code,
the Secretary of the department in which the Coast Guard
is operating may issue a certificate of documentation with
appropriate endorsement for employment in the coastwise
trade for the following vessels:
(1) OCEAN LEADER (United States official
number 679511).
(2) REVELATION (United States official
number 1137565).
SEC. 609. REGULATIONS.
No later than February 1, 2004, the Secretary of the
department in which the Coast Guard is operating shall
implement final regulations to carry out section 12106(e),
title 46, United States Code.
SEC. 610. REPORT REGARDING SECURITY INSPECTION OF
VESSELS AND VESSEL-BORNE CARGO CON-
TAINERS ENTERING THE UNITED STATES.
(a) IN GENERAL.—Not later than 90 days after the
date of the enactment of this Act, the Secretary of the
Department in which the Coast Guard is operating shall
report to the Congress regarding the numbers and types
of vessels and vessel-borne cargo containers that enter the
United States in a year.
(b) CONTENTS.—The report under this section shall
include the following:
(1) A section regarding security inspection of
vessels that includes the following:
(A) A complete breakdown of the numbers
and types of vessels that entered the United
States in the most recent 1-year period for
which information is available.
(B) The cost incurred by the Federal Gov-
ernment in inspecting such vessels in such 1-
year period, including specification and com-
parison of such cost for each type of vessel.
(C) An estimate of the per-vessel cost that
would be incurred by the Federal Government
in inspecting in a foreign port each type of ves-
sel that enters the United States each year, in-
cluding costs for personnel, vessels, equipment,
and funds.
(D) An estimate of the annual total cost
that would be incurred by the Federal Govern-
ment in inspecting in foreign ports all vessels
that enter the United States each year, includ-
ing costs for personnel, vessels, equipment, and
funds.
(2) A section regarding security inspection of
containers that includes the following:
(A) A complete breakdown of the numbers
and types of vessel-borne cargo containers that
entered the United States in the most recent 1-
year period for which information is available,
including specification of the number of 1 TEU
containers and the number of 2 TEU con-
tainers.
(B) The cost incurred by the Federal Gov-
ernment in inspecting such containers in such
1-year period, including specification and com-
parison of such cost for a 1 TEU container and
for a 2 TEU container.
(C) An estimate of the per-container cost
that would be incurred by the Federal Govern-
ment in inspecting in a foreign port each type
of vessel-borne container that enters the United
States each year, including costs for personnel,
vessels, equipment, and funds.
(D) An estimate of the annual total cost
that would be incurred by the Federal Govern-
ment in inspecting in foreign ports all vessel-
borne containers that enter the United States
each year, including costs for personnel, vessels,
equipment, and funds.
SEC. 611. CONVEYANCE OF DECOMMISSIONED COAST
GUARD VESSELS.
(a) IN GENERAL.—Upon the scheduled decommis-
sioning of a Coast Guard vessel listed in subsection (d),
the Commandant of the Coast Guard shall convey all
right, title, and interest of the United States in and to
that vessel to the respective recipient listed in subsection
(d) for that vessel, if—
(1) the recipient agrees—
(A) to use the vessel for public safety ac-
tivities;
(B) not to use the vessel for commercial
transportation purposes;
(C) to make the vessel available to the
United States Government if needed for use by
the Commandant in time of war or a national
emergency; and
(D) to hold the Government harmless for
any claims arising from exposure to hazardous
materials, 
including 
asbestos 
and 
poly-
chlorinated biphenyls (PCBs), after conveyance
of the vessel, except for claims arising from use
by the Government under subparagraph (C);
(2) the recipient has funds available that will be
committed to operate and maintain the vessel con-
veyed in good working condition, in the form of
cash, liquid assets, or a written loan commitment;
and
(3) the recipient agrees to any other conditions
the Commandant considers appropriate.
(b) MAINTENANCE AND DELIVERY OF VESSEL.—
Prior to conveyance of the vessel under this section, the
Commandant shall, to the extent practical, and subject to
other Coast Guard mission requirements, make every ef-
fort to maintain the integrity of the vessel and its equip-
ment until the time of delivery. If a conveyance is made
under this section, the Commandant shall deliver the ves-
sel at the place where the vessel is located, in its present
condition, and without cost to the Government. The con-
veyance of the vessel under this section shall not be consid-
ered a distribution in commerce for purposes of section
6(e) of Public Law 94–469 (15 U.S.C. 2605(e)).
(c) OTHER EXCESS EQUIPMENT.—The Commandant
may convey to the recipient any excess equipment or parts
from other decommissioned Coast Guard vessels for use
to enhance the vessel’s operability and function.
(d) VESSELS AND RECIPIENTS.—The vessels and re-
cipients referred to in subsection (a) are the following:
(1) A 21-foot rigid hull Coast Guard vessel, to
the Berrien County Sheriff’s Department, Berrien
County, Michigan.
(2) A 44-foot motor life boat, to the Port Nor-
ris Fire Company, Commercial Township, New Jer-
sey.
(3) A 44-foot motor life boat, to the City of
Margate, New Jersey.
(4) A 44-foot motor life boat, to the Lower
Alloway Creek Fire Company, Hancocks Bridge,
New Jersey.
(5) A 44-foot motor life boat, to the Fortescue
Fire Rescue Company 1, Downe Township, New
Jersey.
(6) A 21-foot rigid hull inflatable, to the
Longport Volunteer Fire Department, Longport,
New Jersey.
(7) A 21-foot rigid hull inflatable, to West
Wildwood Fire Company, West Wildwood, New Jer-
sey.
(8) A 21-foot rigid hull inflatable, to the San
Diego Unified Port District, California.
SEC. 612. ASSATEAGUE LIGHTHOUSE LENS.
The Secretary of the department in which the Coast
Guard is operating shall convey to the Oyster and Mari-
time Museum, located in Chincoteague, Virginia, without
consideration, all right, title, and interest of the United
States in and to the first order Fresnel lens formerly used
in the Assateague Lighthouse located on Assateague Is-
land, Virginia.
SEC. 613. STUDY OF THE ROLE OF COAST GUARD ICE
BREAKERS IN SUPPORTING UNITED STATES
OPERATIONS IN THE ANTARCTIC AND THE
ARCTIC.
(a) IN GENERAL.—The Commandant of the Coast
Guard may enter into an arrangement with the Polar Re-
search Board and the Marine Board of the National Acad-
emy of Sciences to—
(1) conduct a study of the role of Coast Guard
icebreakers in supporting United States operations
in the Antarctic and the Arctic, including—
(A) roles in logistics and material support
and a general inventory of contributions to
science in both regions;
(B) alternative methods for staging, sup-
porting, and conducting Arctic and Antarctic
activities other than by use of Coast Guard ice-
breakers;
(C) the operational status of the POLAR
STAR and POLAR SEA, including the pro-
jected life expectancy of vessel systems, and
strategies for extending the service life of these
vessels; and
(D) key short-term and long-term func-
tions provided by the Coast Guard icebreaker
fleet and how these functions might be ad-
dressed under different service life extension
and replacement scenarios; and
(2) conduct a study of changes in the roles and
missions of Coast Guard icebreakers in the support
of future marine operations in the Arctic that may
develop due to environmental change, including—
(A) the amount and kind of icebreaking
support that may be required in the future to
support marine operations in the Northern Sea
Route and the Northwest Passage;
(B) the suitability of the Polar Class ice-
breakers for these new roles; and
(C) appropriate changes in existing laws
governing Coast Guard icebreaking operations
and the potential for new operating regimes.
(b) REPORT.—Not later than 18 months after the
date of enactment of the Act, the Commandant shall sub-
mit a report on the studies required under subsection (a)
to the Committee on Transportation and Infrastructure
of the House of Representatives and the Committee on
Commerce, Science, and Transportation of the Senate.
(c) CHARGE
FOR ICEBREAKING SERVICES.—After
the date on which the Commandant submits the report
under subsection (b), and notwithstanding any other pro-
vision of law, the Secretary of the department in which
the Coast Guard is operating may charge other Federal
agencies for the Secretary’s cost of providing icebreaking
and related transportation services to those agencies.
SEC. 614. CORRECTION OF REFERENCES TO NATIONAL
DRIVER REGISTER.
Title 46, United States Code, is amended—
(1) in section 7302—
(A) by striking ‘‘section 206(b)(7) of the
National Driver Register Act of 1982 (23
U.S.C. 401 note)’’ and inserting ‘‘30305(b)(5)
of title 49’’; and
(B) by striking ‘‘section 205(a)(3)(A) or
(B) of that Act’’ and inserting ‘‘30304(a)(3)(A)
or (B) of title 49’’;
(2) in section 7702(d)(1)(B)(iii) by striking
‘‘section 205(a)(3)(A) or (B) of the National Driver
Register Act of 1982’’ and inserting ‘‘section
30304(a)(3)(A) or (B) of title 49’’; and
(3) in section 7703(3) by striking ‘‘section
205(a)(3)(A) or (B) of the National Driver Register
Act of 1982’’ and inserting ‘‘section 30304(a)(3)(A)
or (B) of title 49’’.
SEC. 615. WATEREE RIVER.
For purposes of bridge administration, the portion of
the Wateree River in the State of South Carolina, from
a point 100 feet upstream of the railroad bridge located
at approximately mile marker 10.0 to a point 100 feet
downstream of such bridge, is declared to not be navigable
waters of the United States for purposes of the General
Bridge Act of 1946 (33 U.S.C. 525 et seq.).
SEC. 616. ALASKA MERCHANT MARINERS’ DOCUMENTS
PILOT PROGRAM.
(a) IN GENERAL.—The Secretary of the department
in which the Coast Guard is operating shall conduct a pilot
program in the 17th Coast Guard District to demonstrate
methods to improve processing and procedures for issuing
merchant mariners’ documents.
(b) USE OF EXISTING TOOLS.—Before conducting
the pilot program authorized under subsection (a), the
Secretary shall consult with the Secretary of the Air Force
regarding the efficiency and effectiveness of the content
management technology and information management
tools that are currently used by the department of the Air
Force in the Air Force Publishing Directorate.
(c) AUTHORIZATION OF APPROPRIATIONS.—There is
authorized to be appropriated to the Secretary of the de-
partment in which the Coast Guard is operating
$5,000,000 to carry out the pilot program under sub-
section (a).
SEC. 617. CONVEYANCE OF SENTINEL ISLAND LIGHT STA-
TION, ALASKA.
(a) AUTHORITY TO CONVEY.—
(1) IN GENERAL.—Notwithstanding any other
provision of law, the Secretary of the Department in
which the Coast Guard is operating shall convey, by
an appropriate means of conveyance, all right, title,
and interest of the United States in and to the Sen-
tinel Island Light Station and Sentinel Island, Alas-
ka, to the Gastineau Channel Historical Society.
(2) IDENTIFICATION OF PROPERTY.—The Sec-
retary may identify, describe, and determine the
property to be conveyed under this subsection.
(3) LIMITATION.—The Secretary may not
under this section convey—
(A) any historical artifact, including any
lens or lantern, located on property conveyed
under this section at or before the time of the
conveyance; or
(B) any interest in submerged land.
(b) GENERAL TERMS AND CONDITIONS.—
(1) IN GENERAL.—Any conveyance of property
under this section shall be made—
(A) without payment of consideration; and
(B) subject to the terms and conditions re-
quired by this section and other terms and con-
ditions the Secretary may consider appropriate,
including the reservation of easements and
other rights on behalf of the United States.
(2) REVERSIONARY INTEREST.—In addition to
any term or condition established under this section,
any conveyance of property under this section shall
be subject to the condition that all right, title, and
interest in the property, at the option of the Sec-
retary shall revert to the United States and be
placed under the administrative control of the Sec-
retary, if—
(A) the property, or any part of the
property—
(i) ceases to be available and acces-
sible to the public, on a reasonable basis,
for educational, park, recreational, cul-
tural, historic preservation, or other simi-
lar purposes specified for the property in
the terms of conveyance;
(ii) ceases to be maintained in a man-
ner that is consistent with its present or
future use as a site for Coast Guard aids
to navigation or compliance with this sec-
tion; or
(iii) ceases to be maintained in a man-
ner consistent with the conditions in para-
graph (4) established by the Secretary pur-
suant to the National Historic Preserva-
tion Act (16 U.S.C. 470 et seq.); or
(B) at least 30 days before that reversion,
the Secretary provides written notice to the
owner that the property is needed for national
security purposes.
(3) MAINTENANCE
OF
NAVIGATION
FUNC-
TIONS.—Any conveyance of property under this sec-
tion shall be made subject to the conditions that the
Secretary considers to be necessary to assure that—
(A) the lights, antennas, and associated
equipment located on the property conveyed
that are active aids to navigation shall continue
to be operated and maintained by the United
States for as long as they are needed for this
purpose;
(B) the owner of the property may not
interfere or allow interference in any manner
with aids to navigation without express written
permission from the Commandant of the Coast
Guard;
(C) there is reserved to the United States
the right to relocate, replace, or add any aids
to navigation or make any changes to the prop-
erty conveyed as may be necessary for naviga-
tional purposes;
(D) the United States shall have the right,
at any time, to enter the property without no-
tice for the purpose of operating, maintaining,
and inspecting aids to navigation and for the
purpose of enforcing compliance with this sub-
section; and
(E) the United States shall have an ease-
ment of access to and across the property for
the purpose of maintaining the aids to naviga-
tion in use on the property.
(4) MAINTENANCE OF PROPERTY.—
(A) IN
GENERAL.—Subject to subpara-
graph (B), the owner of a property conveyed
under this section shall maintain the property
in a proper, substantial, and workmanlike man-
ner, and in accordance with any conditions es-
tablished by the Secretary pursuant to the Na-
tional Historic Preservation Act (16 U.S.C. 470
et seq.) and other applicable laws.
(B) LIMITATION.—The owner of a prop-
erty conveyed under this section is not required
to maintain any active aids to navigation on the
property, except private aids to navigation au-
thorized under section 83 of title 14, United
States Code.
(c) DEFINITIONS.—In this section, the following defi-
nitions apply:
(1) AIDS TO NAVIGATION.—The term ‘‘aids to
navigation’’ means equipment used for navigation
purposes, including a light, antenna, radio, sound
signal, electronic navigation equipment, or other as-
sociated equipment that are operated or maintained
by the United States.
(2) OWNER.—The term ‘‘owner’’ means, for
property conveyed under this section, the person to
which property is conveyed under subsection (a)(1),
and any successor or assign of that person.
SEC. 618. MARITIME INTELLIGENCE AND LONG-RANGE VES-
SEL TRACKING SYSTEM.
(a) MARITIME INTELLIGENCE.—
(1) AUTHORIZATION
OF
APPROPRIATIONS.—
There is authorized to be appropriated to the Sec-
retary of the department in which the Coast Guard
is operating $25,000,000 for fiscal year 2004 to im-
plement a system to carry out section 70113(a) of
title 46, United States Code.
(2) SYSTEM REQUIREMENT.—Any system im-
plemented with amounts made available under this
subsection shall—
(A) include a vessel terrorism risk profiling
system that assigns incoming vessels a risk rat-
ing; and
(B) be based on independently verified in-
telligence data.
(b) VESSEL TRACKING SYSTEM.—
(1) AUTHORIZATION
OF
APPROPRIATIONS.—
There is authorized to be appropriated to the Sec-
retary of the Department in which the Coast Guard
is operating $12,000,000 for fiscal year 2004 to
carry out section 70115 of title 46, United States
Code.
(2) SYSTEM REQUIREMENTS.—Any automated
vessel tracking system implemented with amounts
made available under this subsection shall be oper-
ated by an existing nonprofit maritime organization
that—
(A) operates satellite communications sys-
tems, and vessel tracking software and hard-
ware; and
(B) can have nationwide vessel tracking
capability in operation by no later than 90 days
after the date the organization enters into a
contract with the Coast Guard to establish and
operate the system.
SEC. 619. COLUMBIA SLOUGH.
Section 325 of Public Law 97–369 (96 Stat. 1785)
is repealed.
SEC. 620. SENSE OF CONGRESS REGARDING CARBON MON-
OXIDE AND WATERCRAFT.
It is the sense of the Congress that the Coast Guard
should continue—
(1) to place a high priority on addressing the
safety risks posed to boaters by elevated levels of
carbon monoxide that are unique to watercraft; and
(2) to work with vessel and engine manufactur-
ers, the American Boat & Yacht Council, other Fed-
eral agencies, and the entire boating community in
order to determine the best ways to adequately ad-
dress this public safety issue and minimize the num-
ber of tragic carbon monoxide-related boating deaths
that occur each year.
SEC. 621. SENSE OF CONGRESS REGARDING NAMING NEW
VESSELS UNDER THE DEEPWATER PROGRAM
FOR CITIES OF THE UNITED STATES.
It is the sense of the Congress that the Coast Guard
should consider including in its naming protocols for new
vessels constructed under the Deepwater Program the
names of cities of the United States and its territories and
possessions.
SEC. 622. PORT SECURITY GRANT AUTHORITY.
(a) IN GENERAL.—Section 70107 of title 46, United
States Code, is amended—
(1) in subsection (a) by striking ‘‘Secretary of
Transportation, acting through the Maritime Admin-
istrator,’’ and inserting ‘‘Secretary, acting through
the Commandant of the Coast Guard,’’;
(2) by striking ‘‘Secretary of Transportation’’
each place it appears and inserting ‘‘Secretary, act-
ing through the Commandant of the Coast Guard,’’;
and
(3) by striking ‘‘Department of Transportation’’
each place it appears and inserting ‘‘department in
which the Coast Guard is operating’’.
(b) EFFECTIVE DATE.—Subsection (a)—
(1) shall take effect October 1, 2004; and
(2) shall not affect any grant made before that
date.
SEC. 623. SECURITY ASSESSMENT OF INDIAN POINT EN-
ERGY CENTER.
Not later than one year after the date of the enact-
ment of this Act, the Secretary of the department in which
the Coast Guard is operating shall—
(1) conduct a vulnerability assessment under
section 70102(b) of title 46, United States Code, of
the navigable waters adjacent to Indian Point En-
ergy Center, located in Westchester County, New
York; and
(2) submit a report on that assessment to the
Committee on Transportation and Infrastructure of
the House of Representatives and the Committee on
Commerce, Science and Transportation of the Sen-
ate.
SEC. 624. MITIGATION OF PENALTY DUE TO AVOIDANCE OF
A CERTAIN HAZARDOUS CONDITION.
(a) TREATMENT OF VIOLATION.—For purposes of
any administrative proceeding to consider mitigation of
any civil penalty for a violation described in subsection (b),
such violation is deemed to have been committed by reason
of a safety concern.
(b) VIOLATION DESCRIBED.—A violation referred to
in subsection (a) is any violation of the Act of June 19,
1886 (chapter 421; 46 App. U.S.C. 289), occurring before
August 1, 2003, and consisting of operation of a passenger
vessel in transporting passengers—
(1) between the Port of New Orleans and an-
other port on the Gulf of Mexico at a time when the
power 
lines 
across 
the 
Mississippi 
River 
at
Chalmette, Louisiana, are a hazard to the safe re-
turn transport of passengers on that vessel to the
Port of New Orleans; or
(2) in repositioning the vessel to the Port of
New Orleans after that hazard is temporarily re-
solved.
SEC. 625. DESIGNATION OF EMPRESS OF THE NORTH AS A
TOUR VESSEL.
Notwithstanding any other law, the passenger vessel
EMPRESS OF THE NORTH (United States official
number 1140867) is deemed to be a tour vessel for the
purpose of the regulations promulgated by the Secretary
of the Interior under section 3(h) of Public Law 91–383
(16 U.S.C. 1a–2(h)) and section 3 of the Act of August
25, 1916 (16 U.S.C. 3), with respect to vessel operations
in Glacier Bay National Park and Preserve, Alaska.
SEC. 626. SENSE OF CONGRESS REGARDING TIMELY RE-
VIEW AND ADJUSTMENT OF GREAT LAKES PI-
LOTAGE RATES.
It is the sense of the Congress that the Secretary of
the department in which the Coast Guard is operating
should, on a timely basis, review and adjust the rates pay-
able under part 401 of title 46, Code of Federal Regula-
tions, for services performed by United States registered
pilots on the Great Lakes.
SEC. 627. PRIORITY FOR PUBLIC TRANSPORTATION SYS-
TEMS IN MAKING GRANTS FOR IMPLEMENTA-
TION OF SECURITY PLANS.
Section 70107(e) of title 46, United State Code, is
amended by adding at the end the following:
‘‘(5) PRIORITY FOR PUBLIC TRANSPORTATION
SYSTEMS.—
‘‘(A) PRIORITY.—In making grants under
subsection (a) the Secretary of Transportation
shall give priority to otherwise eligible projects
concerning implementation of security plans
with respect to public transportation systems.
‘‘(B) REGULATIONS.—The Secretary shall
issue regulations establishing procedures and
requirements for awarding grants pursuant to
the priority required by this paragraph.’’.
SEC. 628. LIMITATION ON BRIDGE ALTERATION PROJECTS.
The Coast Guard may conduct bridge alteration
projects 
using 
amounts 
authorized 
under 
section
101(1)(B)(iv) of this Act only to the extent that the steel,
iron, and manufactured products used in such projects are
produced in the United States, unless the Commandant
of the Coast Guard determines such action to be incon-
sistent with the public interest or the cost unreasonable.
TITLE 
VII—AMENDMENTS 
RE-
LATING TO OIL POLLUTION
ACT OF 1990
SEC. 701. VESSEL RESPONSE PLANS FOR NONTANK VES-
SELS OVER 400 GROSS TONS.
(a) NONTANK VESSEL DEFINED.—Section 311(j) of
the Federal Water Pollution Control Act (33 U.S.C.
1321(j)) is amended by adding at the end the following:
‘‘(9) NONTANK VESSEL DEFINED.—In this sub-
section, the term ‘nontank vessel’ means a self-pro-
pelled vessel of 400 gross tons (as measured under
section 14502 of title 46, United States Code, or an
alternate tonnage measured under section 14302 of
such title as prescribed by the Secretary under sec-
tion 14104 of such title) or greater, other than a
tank vessel, that carries oil of any kind as fuel for
main propulsion and that—
‘‘(A) is a vessel of the United States; or
‘‘(B) operates on the navigable waters of
the United States.’’.
(b) AMENDMENTS TO REQUIRE RESPONSE PLANS.—
Section 311(j) of the Federal Water Pollution Control Act
(33 U.S.C. 1321(j)) is amended—
(1) in paragraph (5) in the heading by inserting
‘‘, NONTANK VESSEL,’’ after ‘‘VESSEL’’;
(2) in paragraph 5(A) by inserting ‘‘, nontank
vessel,’’ after ‘‘vessel’’;
(3) in paragraph (5)(B), in the matter pre-
ceding clause (i), by inserting ‘‘, nontank vessels,’’
after ‘‘vessels’’;
(4) in paragraph (5)(B), by redesignating
clauses (ii) and (iii) as clauses (iii) and (iv), respec-
tively, and by inserting after clause (i) the following:
‘‘(ii) A nontank vessel.’’;
(5) in paragraph (5)(D)—
(A) by inserting ‘‘, nontank vessel,’’ after
‘‘vessel’’;
(B) by striking ‘‘and’’ after the semicolon
at the end of clause (iii);
(C) by striking the period at the end of
clause (iv) and inserting ‘‘; and’’; and
(D) by adding after clause (iv) the fol-
lowing:
‘‘(v) for nontank vessels, consider any ap-
plicable State-mandated response plan and en-
sure consistency to the extent practicable.’’;
(6) in paragraph (5)(E), in the matter pre-
ceding clause (i), by inserting ‘‘nontank vessel,’’
after ‘‘vessel,’’;
(7) 
in 
paragraph 
(5)(E)(i) 
by 
inserting
‘‘nontank vessel,’’ , after ‘‘vessel,’’;
(8) in paragraph (5)(F) by striking ‘‘tank ves-
sel or’’ and inserting ‘‘vessel or’’;
(9) in paragraph (5)(G) by inserting ‘‘nontank
vessel,’’ after ‘‘vessel,’’;
(10) in paragraph (5)(H) by inserting ‘‘and
nontank vessel’’ after ‘‘each tank vessel’’;
(11) in paragraph (6) in the matter preceding
subparagraph (A) by striking ‘‘Not later than 2
years after the date of enactment of this section, the
President shall require—’’ and inserting ‘‘The Presi-
dent may require—’’;
(12) in paragraph (6)(B) by inserting ‘‘, and
nontank vessels carrying oil of any kind as fuel for
main propulsion,’’ after ‘‘cargo’’; and
(13) in paragraph (7) by inserting ‘‘, nontank
vessel,’’ after ‘‘vessel’’.
(c) IMPLEMENTATION DATE.—The President shall
not require the owner or operator of a nontank vessel (as
defined section 311(j)(9) of the Federal Water Pollution
Control Act (33 U.S.C. 1321(j)(9), as amended by this
section) to prepare and submit a vessel response plan for
such vessel before the end of the one-year period beginning
on the date of the enactment of this Act.
SEC. 702. REQUIREMENTS FOR TANK LEVEL AND PRES-
SURE MONITORING DEVICES.
Section 4110 of the Oil Pollution Act of 1990 (46
U.S.C. 3703 note) is amended—
(1) in subsection (a), by striking ‘‘Not later
than 1 year after the date of the enactment of this
Act, the Secretary shall’’ and inserting ‘‘The Sec-
retary may’’;
(2) in subsection (b)—
(A) by striking ‘‘Not later than 1 year
after the date of the enactment of this Act, the
Secretary shall’’ and inserting ‘‘No sooner than
1 year after the Secretary prescribes regula-
tions under subsection (a), the Secretary may’’;
and
(B) by striking ‘‘the standards’’ and in-
serting ‘‘any standards’’.
SEC. 703. LIABILITY AND COST RECOVERY.
(a) DEFINITION OF OWNER OR OPERATOR.—Section
1001(26) of the Oil Pollution Act of 1990 (33 U.S.C.
2701(26)) is amended to read as follows:
‘‘(26) ‘owner or operator’—
‘‘(A) means—
‘‘(i) in the case of a vessel, any person
owning, operating, or chartering by demise,
the vessel;
‘‘(ii) in the case of an onshore or off-
shore facility, any person owning or oper-
ating such facility;
‘‘(iii) in the case of any abandoned
offshore facility, the person who owned or
operated such facility immediately prior to
such abandonment;
‘‘(iv) in the case of any facility, title
or control of which was conveyed due to
bankruptcy, foreclosure, tax delinquency,
abandonment, or similar means to a unit
of State or local government, any person
who owned, operated, or otherwise con-
trolled activities at such facility imme-
diately beforehand;
‘‘(v) notwithstanding subparagraph
(B)(i), any State or local government that
has caused or contributed to a discharge or
substantial threat of a discharge of oil
from a vessel or facility ownership or con-
trol of which was acquired involuntarily
through 
bankruptcy, 
tax 
delinquency,
abandonment, or other circumstances in
which the government involuntarily ac-
quires title by virtue of its function as sov-
ereign; and
‘‘(vi) notwithstanding subparagraph
(B)(ii), a person that is a lender and that
holds indicia of ownership primarily to pro-
tect a security interest in a vessel or facil-
ity if, while the borrower is still in posses-
sion of the vessel or facility encumbered by
the security interest, the person—
‘‘(I) 
exercises 
decisionmaking
control over the environmental compli-
ance related to the vessel or facility,
such that the person has undertaken
responsibility for oil handling or dis-
posal practices related to the vessel or
facility; or
‘‘(II) exercises control at a level
comparable to that of a manager of
the vessel or facility, such that the
person has assumed or manifested
responsibility—
‘‘(aa) for the overall man-
agement of the vessel or facility
encompassing 
day-to-day 
deci-
sionmaking with respect to envi-
ronmental compliance; or
‘‘(bb) over all or substan-
tially all of the operational func-
tions (as distinguished from fi-
nancial or administrative func-
tions) of the vessel or facility
other than the function of envi-
ronmental compliance; and
‘‘(B) does not include—
‘‘(i) a unit of State or local govern-
ment that acquired ownership or control of
a vessel or facility involuntarily through
bankruptcy, tax delinquency, abandonment,
or other circumstances in which the gov-
ernment involuntarily acquires title by vir-
tue of its function as sovereign;
‘‘(ii) a person that is a lender that
does not participate in management of a
vessel or facility, but holds indicia of own-
ership primarily to protect the security in-
terest of the person in the vessel or facil-
ity; or
‘‘(iii) a person that is a lender that
did not participate in management of a
vessel or facility prior to foreclosure, not-
withstanding that the person—
‘‘(I) forecloses on the vessel or
facility; and
‘‘(II) after foreclosure, sells, re-
leases (in the case of a lease finance
transaction), or liquidates the vessel
or facility, maintains business activi-
ties, winds up operations, undertakes
a removal action under 311(c) of the
Federal Water Pollution Control Act
(33 U.S.C. 311(c)) or under the direc-
tion of an on-scene coordinator ap-
pointed under the National Contin-
gency Plan, with respect to the vessel
or facility, or takes any other measure
to preserve, protect, or prepare the
vessel or facility prior to sale or dis-
position,
if the person seeks to sell, re-lease (in the
case of a lease finance transaction), or oth-
erwise divest the person of the vessel or fa-
cility at the earliest practicable, commer-
cially reasonable time, on commercially
reasonable terms, taking into account mar-
ket conditions and legal and regulatory re-
quirements;’’.
(b) OTHER DEFINITIONS.—Section 1001 of the Oil
Pollution Act of 1990 (33 U.S.C. 2701) is amended by
striking ‘‘and’’ after the semicolon at the end of paragraph
(36), by striking the period at the end of paragraph (37)
and inserting a semicolon, and by adding at the end the
following:
‘‘(38) ‘participate in management’—
‘‘(A)(i) means actually participating in the
management or operational affairs of a vessel
or facility; and
‘‘(ii) does not include merely having the ca-
pacity to influence, or the unexercised right to
control, vessel or facility operations; and
‘‘(B) does not include—
‘‘(i) performing an act or failing to
act prior to the time at which a security
interest is created in a vessel or facility;
‘‘(ii) holding a security interest or
abandoning or releasing a security interest;
‘‘(iii) including in the terms of an ex-
tension of credit, or in a contract or secu-
rity agreement relating to the extension, a
covenant, warranty, or other term or con-
dition that relates to environmental compli-
ance;
‘‘(iv) monitoring or enforcing the
terms and conditions of the extension of
credit or security interest;
‘‘(v) monitoring or undertaking one or
more inspections of the vessel or facility;
‘‘(vi) requiring a removal action or
other lawful means of addressing a dis-
charge or substantial threat of a discharge
of oil in connection with the vessel or facil-
ity prior to, during, or on the expiration of
the term of the extension of credit;
‘‘(vii) providing financial or other ad-
vice or counseling in an effort to mitigate,
prevent, or cure default or diminution in
the value of the vessel or facility;
‘‘(viii) restructuring, renegotiating, or
otherwise agreeing to alter the terms and
conditions of the extension of credit or se-
curity interest, exercising forbearance;
‘‘(ix) exercising other remedies that
may be available under applicable law for
the breach of a term or condition of the ex-
tension of credit or security agreement; or
‘‘(x) conducting a removal action
under 311(c) of the Federal Water Pollu-
tion Control Act (33 U.S.C. 1321(c)) or
under the direction of an on-scene coordi-
nator appointed under the National Con-
tingency Plan,
if such actions do not rise to the level of partici-
pating in management under subparagraph (A)
of this paragraph and paragraph (26)(A)(vi);
‘‘(39) ‘extension of credit’ has the meaning pro-
vided in section 101(20)(G)(i) of the Comprehensive
Environmental Response, Compensation and Liabil-
ity Act of 1980 (42 U.S.C. 9601(20)(G)(i));
‘‘(40) ‘financial or administrative function’ has
the meaning provided in section 101(20)(G)(ii) of
the Comprehensive Environmental Response, Com-
pensation and Liability Act of 1980 (42 U.S.C.
9601(20)(G)(ii));
‘‘(41) ‘foreclosure’ and ‘foreclose’ each has the
meaning provided in section 101(20)(G)(iii) of the
Comprehensive Environmental Response, Compensa-
tion and Liability Act of 1980 (42 U.S.C.
9601(20)(G)(iii));
‘‘(42) ‘lender’ has the meaning provided in sec-
tion 101(20)(G)(iv) of the Comprehensive Environ-
mental Response, Compensation and Liability Act of
1980 (42 U.S.C. 9601(20)(G)(iv));
‘‘(43) ‘operational function’ has the meaning
provided in section 101(20)(G)(v) of the Comprehen-
sive Environmental Response, Compensation and Li-
ability Act of 1980 (42 U.S.C. 9601(20)(G)(v)); and
‘‘(44) ‘security interest’ has the meaning pro-
vided in section 101(20)(G)(vi) of the Comprehen-
sive Environmental Response, Compensation and Li-
ability Act of 1980 (42 U.S.C. 9601(20)(G)(vi)).’’.
(c) DEFINITION OF CONTRACTUAL RELATIONSHIP.—
Section 1003 of the Oil Pollution Act of 1990 (33 U.S.C.
2703) is amended by adding at the end the following:
‘‘(d) DEFINITION
OF
CONTRACTUAL
RELATION-
SHIP.—
‘‘(1) IN GENERAL.—For purposes of subsection
(a)(3) the term ‘contractual relationship’ includes,
but is not limited to, land contracts, deeds, ease-
ments, leases, or other instruments transferring title
or possession, unless—
‘‘(A) the real property on which the facility
concerned is located was acquired by the re-
sponsible party after the discharge of the oil on,
in, or at the facility;
‘‘(B) one or more of the circumstances de-
scribed in subparagraph (A), (B), or (C) of
paragraph (2) is established by the responsible
party by a preponderance of the evidence; and
‘‘(C) the responsible party complies with
paragraph (3).
‘‘(2) 
REQUIRED
CIRCUMSTANCE.—The 
cir-
cumstances referred to in paragraph (1)(B) are the
following:
‘‘(A) At the time the responsible party ac-
quired the real property on which the facility is
located the responsible party did not know and
had no reason to know that oil that is the sub-
ject of the discharge or substantial threat of
discharge was located on, in, or at the facility.
‘‘(B) The responsible party is a govern-
ment entity that acquired the facility—
‘‘(i) by escheat;
‘‘(ii) through any other involuntary
transfer or acquisition; or
‘‘(iii) through the exercise of eminent
domain authority by purchase or con-
demnation.
‘‘(C) The responsible party acquired the
facility by inheritance or bequest.
‘‘(3) ADDITIONAL
REQUIREMENTS.—For pur-
poses of paragraph (1)(C), the responsible party
must establish by a preponderance of the evidence
that the responsible party—
‘‘(A) has satisfied the requirements of sec-
tion 1003(a)(3)(A) and (B);
‘‘(B) has provided full cooperation, assist-
ance, and facility access to the persons that are
authorized to conduct removal actions, includ-
ing the cooperation and access necessary for the
installation, integrity, operation, and mainte-
nance of any complete or partial removal action;
‘‘(C) is in compliance with any land use re-
strictions established or relied on in connection
with the removal action; and
‘‘(D) has not impeded the effectiveness or
integrity of any institutional control employed
in connection with the removal action.
‘‘(4) REASON TO KNOW.—
‘‘(A) APPROPRIATE INQUIRIES.—To estab-
lish that the responsible party had no reason to
know of the matter described in paragraph
(2)(A), the responsible party must demonstrate
that—
‘‘(i) on or before the date on which
the responsible party acquired the real
property on which the facility is located,
the responsible party carried out all appro-
priate inquiries, as provided in subpara-
graphs (B) and (D), into the previous own-
ership and uses of the real property on
which the facility is located in accordance
with generally accepted good commercial
and customary standards and practices;
and
‘‘(ii) the responsible party took rea-
sonable steps to—
‘‘(I) stop any continuing dis-
charge;
‘‘(II) prevent, minimize or miti-
gate any substantial threat of dis-
charge; and
‘‘(III) 
prevent 
or 
limit 
any
human, environmental, or natural re-
source exposure to any previously dis-
charged oil.
‘‘(B) REGULATIONS ESTABLISHING STAND-
ARDS AND PRACTICES.—Not later than 2 years
after the date of the enactment of this para-
graph, the Secretary, in consultation with the
Administrator of the Environmental Protection
Agency, shall by regulation establish standards
and practices for the purpose of satisfying the
requirement to carry out all appropriate inquir-
ies under subparagraph (A).
‘‘(C) CRITERIA.—In promulgating regula-
tions that establish the standards and practices
referred to in subparagraph (B), the Secretary
shall include in such standards and practices
provisions regarding each of the following:
‘‘(i) The results of an inquiry by an
environmental professional.
‘‘(ii) Interviews with past and present
owners, operators, and occupants of the fa-
cility and the real property on which the
facility is located for the purpose of gath-
ering information regarding the potential
for contamination at the facility and on the
real property on which the facility is lo-
cated.
‘‘(iii) Reviews of historical sources, in-
cluding, to the extent available, chain of
title documents, aerial photographs, build-
ing department records, and land use
records, to determine previous uses and oc-
cupancies of the real property on which the
facility is located since the property was
first developed.
‘‘(iv) Searches for recorded environ-
mental cleanup liens against the facility
and the real property on which the facility
is located that are filed under Federal,
State, or local law.
‘‘(v) Reviews of Federal, State, and
local government records, waste disposal
records, underground storage tank records,
and waste handling, generation, treatment,
disposal, and spill records, concerning con-
tamination at or near the facility and on
the real property on which the facility is
located.
‘‘(vi) Visual inspections of the facility,
the real property on which the facility is
located, and adjoining properties.
‘‘(vii) Specialized knowledge or experi-
ence on the part of the responsible party.
‘‘(viii) The relationship of the pur-
chase price to the value of the facility and
the real property on which the facility is
located, if the facility or the real property
was not contaminated.
‘‘(ix) Commonly known or reasonably
ascertainable information about the facility
and the real property on which the facility
is located.
‘‘(x) The degree of obviousness of the
presence or likely presence of contamina-
tion at the facility and on the real property
on which the facility is located, and the
ability to detect contamination by appro-
priate investigation.
‘‘(D) INTERIM
STANDARDS
AND
PRAC-
TICES.—
‘‘(i) REAL PROPERTY PURCHASED BE-
FORE MAY 31, 1997.—With respect to real
property purchased before May 31, 1997,
in making a determination with respect to
a responsible party described in subpara-
graph (A), a court or appropriate official
shall take into account—
‘‘(I) any specialized knowledge or
experience on the part of the respon-
sible party;