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‘‘(b) REQUIREMENTS FOR ELIGIBILITY FOR EXEMP-
TION.—An exemption under this subsection is an exemp-
tion from the regulations established pursuant to section 
302(a)(3) of the Outer Continental Shelf Lands Act (43 
U.S.C. 1356(a)(3)). 
‘‘(c) LIMITATIONS.—An exemption under this sec-
tion— 
‘‘(1) shall provide that the number of individ-
uals manning or crewing the covered facility who are 
described in paragraphs (2) and (3) of subsection 
(a) may not exceed two and one- half times the 
number of individuals required to man or crew the 
covered facility under the laws of the nation under 
the laws of which the covered facility is documented; 
and 
‘‘(2) shall be effective for not more than 12 
months, but may be renewed by application to and 
approval by the Secretary. 
‘‘(d) APPLICATION.—To be eligible for an exemption 
or a renewal of an exemption under this section, the owner 
or operator of a covered facility shall apply to the Sec-
retary with an application that includes a sworn statement 
by the applicant of all information required for the 
issuance of the exemption. 
‘‘(e) REVOCATION.— 
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‘‘(1) IN GENERAL.—The Secretary— 
‘‘(A) may revoke an exemption for a cov-
ered facility under this section if the Secretary 
determines that information provided in the ap-
plication for the exemption was false or incom-
plete, or is no longer true or complete; and 
‘‘(B) shall immediately revoke such an ex-
emption if the Secretary determines that the 
covered facility, in the effective period of the ex-
emption, was manned or crewed in a manner 
not authorized by the exemption. 
‘‘(2) NOTICE REQUIRED.—The Secretary shall 
provides notice of a determination under subpara-
graph (A) or (B) of paragraph (1) to the owner or 
operator of the covered facility. 
‘‘(f) REVIEW OF COMPLIANCE.—The Secretary shall 
periodically, but not less than once annually, inspect each 
covered facility that operates under an exemption under 
this section to verify the owner or operator of the covered 
facility’s compliance with the exemption. During an in-
spection under this subsection, the Secretary shall require 
all crew members serving under the exemption to hold a 
valid transportation security card issued under section 
70105. 
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‘‘(g) PENALTY.—In addition to revocation under sub-
section (e), the Secretary may impose on the owner or op-
erator of a covered facility a civil penalty of $10,000 per 
day for each day the covered facility— 
‘‘(1) is manned or crewed in violation of an ex-
emption under this subsection; or 
‘‘(2) operated under an exemption under this 
subsection that the Secretary determines was not 
validly obtained. 
‘‘(h) NOTIFICATION OF SECRETARY OF STATE.—The 
Secretary shall notify the Secretary of State of each ex-
emption issued under this section, including the effective 
period of the exemption. 
‘‘(i) DEFINITIONS.—In this section: 
‘‘(1) COVERED FACILITY.—The term ‘covered 
facility’ means any vessel, rig, platform, or other ve-
hicle or structure, over 50 percent of which is owned 
by citizens of a foreign nation or with respect to 
which the citizens of a foreign nation have the right 
effectively to control, except to the extent and to the 
degree that the President determines that the gov-
ernment of such foreign nation or any of its political 
subdivisions has implemented, by statute, regulation, 
policy, or practice, a national manning requirement 
for equipment engaged in the exploring for, devel-
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oping, or producing resources, including non-mineral 
energy resources in its offshore areas. 
‘‘(2) SECRETARY.—The term ‘Secretary’ means 
the Secretary of the department in which the Coast 
Guard is operating.’’. 
(b) ANNUAL REPORT.— 
(1) IN GENERAL.—Not later than 1 year after 
the date of enactment of this Act, and annually 
thereafter, the Secretary of the department in which 
the Coast Guard is operating shall submit to Com-
mittee on Transportation and Infrastructure of the 
House of Representatives and the Committee on 
Commerce, Science, and Transportation of the Sen-
ate a report containing information on each letter of 
nonapplicability of section 8109 of title 46, United 
States Code, with respect to a covered facility that 
was issued by the Secretary during the preceding 
year. 
(2) CONTENTS.—The report under paragraph 
(1) shall include, for each covered facility— 
(A) the name and International Maritime 
Organization number; 
(B) the nation in which the covered facility 
is documented; 
(C) the nationality of owner or owners; and 
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(D) for any covered facility that was pre-
viously issued a letter of nonapplicability in a 
prior year, any changes in the information de-
scribed in subparagraphs (A) through (C). 
(c) REGULATIONS.—Not later than 90 days after the 
date of the enactment of this Act, the Secretary shall pro-
mulgate regulations that specify the documentary and 
other requirements for the issuance of an exemption under 
the amendment made by this section. 
(d) EXISTING EXEMPTIONS.— 
(1) 
EFFECT
OF
AMENDMENTS; 
TERMI-
NATION.—Each exemption under section 30(c)(2) of 
the Outer Continental Shelf Lands Act (43 U.S.C. 
1356(c)(2)) issued before the date of the enactment 
of this Act— 
(A) shall not be affected by the amend-
ments made by this section during the 120-day 
period beginning on the date of the enactment 
of this Act; and 
(B) shall not be effective after such period. 
(2) NOTIFICATION
OF
HOLDERS.—Not later 
than 60 days after the date of the enactment of this 
Act, the Secretary shall notify all persons that hold 
such an exemption that it will expire as provided in 
paragraph (1). 
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