H. R. 1068—145 
§ 308703. National Maritime Heritage Grants Program 
(a) ESTABLISHMENT.—There is established in the Department of 
the Interior the National Maritime Heritage Grants Program, to 
foster in the American public a greater awareness and appreciation 
of the role of maritime endeavors in our Nation’s history and 
culture. The Program shall consist of— 
(1) annual grants to the National Trust for subgrants 
administered by the National Trust for maritime heritage edu-
cation projects under subsection (b); and 
(2) grants to State Historic Preservation Officers for maritime 
heritage preservation projects carried out or administered by 
those Officers under subsection (c). 
(b) GRANTS
FOR MARITIME HERITAGE EDUCATION PROJECTS.— 
(1) GRANTS TO NATIONAL TRUST.—The Secretary, subject to 
paragraph (2), and the availability of amounts for that purpose 
under section 308704(b)(1)(A) of this title, shall make an annual 
grant to the National Trust for maritime heritage education 
projects. 
(2) USE OF GRANTS.—Amounts received by the National Trust 
as an annual grant under this subsection shall be used to 
make subgrants to State and local governments and private 
nonprofit organizations to carry out education projects that 
have been approved by the Secretary under subsection (f) and 
that consist of— 
(A) assistance to any maritime museum or historical 
society for— 
(i) existing and new educational programs, exhibits, 
educational activities, conservation, and interpretation 
of artifacts and collections; 
(ii) minor improvements to educational and museum 
facilities; and 
(iii) other similar activities; 
(B) activities designed to encourage the preservation of 
traditional maritime skills, including— 
(i) building and operation of vessels of all sizes and 
types for educational purposes; 
(ii) special skills such as wood carving, sail making, 
and rigging; 
(iii) traditional maritime art forms; and 
(iv) sail training; 
(C) other educational activities relating to historic mari-
time resources, including— 
(i) maritime 
educational 
waterborne-experience 
programs in historic vessels or vessel reproductions; 
(ii) maritime archeological field schools; and 
(iii) educational programs on other aspects of mari-
time history; 
(D) heritage programs focusing on maritime historic 
resources, including maritime heritage trails and corridors; 
or 
(E) the construction and use of reproductions of historic 
maritime resources for educational purposes, if a historic 
maritime resource no longer exists or would be damaged 
or consumed through direct use. 
(c) GRANTS FOR MARITIME HERITAGE PRESERVATION PROJECTS.— 
(1) GRANTS
TO
STATE
HISTORIC
PRESERVATION
OFFICERS.— 
The Secretary, acting through the National Maritime Initiative
H. R. 1068—146 
of the Service and subject to paragraph (2), and the availability 
of amounts for that purpose under section 308704(b)(1)(B) of 
this title, shall make grants to State Historic Preservation 
Officers for maritime heritage preservation projects. 
(2) USE OF GRANTS.—Amounts received by a State Historic 
Preservation Officer as a grant under this subsection shall 
be used by the Officer to carry out, or to make subgrants 
to local governments and private nonprofit organizations to 
carry out, projects that have been approved by the Secretary 
under subsection (f) for the preservation of historic maritime 
resources through— 
(A) identification of historic maritime resources, including 
underwater archeological sites; 
(B) acquisition of historic maritime resources for the 
purposes of preservation; 
(C) repair, restoration, stabilization, maintenance, or 
other capital improvements to historic maritime resources, 
in accordance with standards prescribed by the Secretary; 
and 
(D) research, recording (through drawings, photographs, 
or 
otherwise), 
planning 
(through 
feasibility 
studies, 
architectural and engineering services, or otherwise), and 
other services carried out as part of a preservation program 
for historic maritime resources. 
(d) CRITERIA FOR DIRECT GRANT AND SUBGRANT ELIGIBILITY.— 
To qualify for a subgrant from the National Trust under subsection 
(b), or a direct grant to or a subgrant from a State Historic Preserva-
tion Officer under subsection (c), a person shall— 
(1) demonstrate that the project for which the direct grant 
or subgrant will be used has the potential for reaching a broad 
audience with an effective educational program based on Amer-
ican maritime history, technology, or the role of maritime 
endeavors in American culture; 
(2) match the amount of the direct grant or subgrant, on 
a 1-to-1 basis, with non-Federal assets from non-Federal 
sources, which may include cash or donated services fairly 
valued as determined by the Secretary; 
(3) maintain records as may be reasonably necessary to fully 
disclose— 
(A) the amount and the disposition of the proceeds of 
the direct grant or subgrant; 
(B) the total cost of the project for which the direct 
grant or subgrant is made; and 
(C) other records as may be required by the Secretary, 
including such records as will facilitate an effective 
accounting for project funds; 
(4) provide access to the Secretary for the purposes of any 
required audit and examination of any records of the person; 
and 
(5) be a unit of State or local government, or a private 
nonprofit organization. 
(e) PROCEDURES, TERMS, AND CONDITIONS.— 
(1) APPLICATION PROCEDURES.—An application for a subgrant 
under subsection (b), or a direct grant or subgrant under sub-
section (c), shall be submitted under procedures prescribed 
by the Secretary.
H. R. 1068—147 
(2) TERMS AND CONDITIONS.—A person may not receive a 
subgrant under subsection (b), or a direct grant or subgrant 
under subsection (c), unless the person agrees to assume, after 
completion of the project for which the direct grant or subgrant 
is awarded, the total cost of the continued maintenance, repair, 
and administration of any property for which the subgrant 
will be used in a manner satisfactory to the Secretary. 
(f) ALLOCATION OF, AND LIMITATION ON, GRANT FUNDING.— 
(1) ALLOCATION.—To the extent feasible, the Secretary shall 
ensure that the amount made available under subsection (b) 
for maritime heritage education projects is equal to the amount 
made available under subsection (c) for maritime heritage 
preservation projects. 
(2) LIMITATION.—The amount provided by the Secretary in 
a fiscal year as grants under this section for projects relating 
to historic maritime resources owned or operated by the Federal 
Government shall not exceed 40 percent of the total amount 
available for the fiscal year for grants under this section. 
(g) PUBLICATION
OF DIRECT GRANT
AND SUBGRANT INFORMA-
TION.—The Secretary shall publish annually in the Federal Register 
and otherwise as the Secretary considers appropriate— 
(1) a solicitation of applications for direct grants and sub-
grants under this section; 
(2) a list of priorities for the making of those direct grants 
and subgrants; 
(3) a single deadline for the submission of applications for 
those direct grants and subgrants; and 
(4) other relevant information. 
(h) DIRECT GRANT AND SUBGRANT ADMINISTRATION.— 
(1) RESPONSIBILITY.— 
(A) NATIONAL TRUST.—The National Trust is responsible 
for administering subgrants for maritime heritage edu-
cation projects under subsection (b). 
(B) SECRETARY.—The Secretary is responsible for admin-
istering direct grants for maritime heritage preservation 
projects under subsection (c). 
(C) STATE HISTORIC PRESERVATION OFFICERS.—State His-
toric Preservation Officers are responsible for admin-
istering subgrants for maritime heritage preservation 
projects under subsection (c). 
(2) ACTIONS.—The appropriate responsible party under para-
graph (1) shall administer direct grants or subgrants by— 
(A) publicizing the Program to prospective grantees, sub-
grantees, and the public at large, in cooperation with the 
Service, the Maritime Administration, and other appro-
priate government agencies and private institutions; 
(B) answering inquiries from the public, including pro-
viding information on the Program as requested; 
(C) distributing direct grant and subgrant applications; 
(D) receiving direct grant and subgrant applications and 
ensuring their completeness; 
(E) keeping records of all direct grant and subgrant 
awards and expenditures of funds; 
(F) monitoring progress of projects carried out with direct 
grants and subgrants; and 
(G) providing to the Secretary such progress reports as 
may be required by the Secretary.
H. R. 1068—148 
(i) ASSISTANCE
OF MARITIME PRESERVATION ORGANIZATIONS.— 
The Secretary, the National Trust, and the State Historic Preserva-
tion Officers may, individually or jointly, enter into cooperative 
agreements with any private nonprofit organization with appro-
priate expertise in maritime preservation issues, or other qualified 
maritime preservation organizations, to assist in the administration 
of the Program. 
(j) REPORT TO CONGRESS.—The Secretary shall submit to Congress 
an annual report on the Program, including— 
(1) a description of each project funded under the Program 
in the period covered by the report; 
(2) the results or accomplishments of each such project; and 
(3) recommended priorities for achieving the policy set forth 
in section 308701 of this title. 
§ 308704. Funding 
(a) AVAILABILITY OF FUNDS FROM SALE AND SCRAPPING OF OBSO-
LETE VESSELS.— 
(1) IN GENERAL.—Notwithstanding any other provision of law, 
the amount of funds credited in a fiscal year to the Vessel 
Operations Revolving Fund established by section 50301(a) of 
title 46 that is attributable to the sale of obsolete vessels 
in the National Defense Reserve Fleet that are scrapped or 
sold under section 57102, 57103, or 57104 of title 46 shall 
be available until expended as follows: 
(A) Fifty percent shall be available to the Administrator 
of the Maritime Administration for such acquisition, 
maintenance, repair, reconditioning, or improvement of ves-
sels in the National Defense Reserve Fleet as is authorized 
under other Federal law. 
(B) Twenty five percent shall be available to the Adminis-
trator of the Maritime Administration for the payment 
or reimbursement of expenses incurred by or on behalf 
of State maritime academies or the United States Merchant 
Marine Academy for facility and training ship maintenance, 
repair, and modernization, and for the purchase of simula-
tors and fuel. 
(C) The remainder shall be available— 
(i) to the Secretary to carry out the Program, as 
provided in subsection (b); or 
(ii) if otherwise determined by the Administrator 
of the Maritime Administration, for use in the 
preservation and presentation to the public of maritime 
heritage property of the Maritime Administration. 
(2) APPLICABILITY.—Paragraph (1) does not apply to amounts 
credited to the Vessel Operations Revolving Fund before July 
1, 1994. 
(b) USE OF AMOUNTS FOR PROGRAM.— 
(1) IN GENERAL.—Except as provided in paragraph (2), of 
amounts available each fiscal year for the Program under sub-
section (a)(1)(C)— 
(A) one half shall be used for grants under section 
308703(b) of this title; and 
(B) one half shall be used for grants under section 
308703(c) of this title. 
(2) ADMINISTRATIVE EXPENSES.—