mented under the laws of the United States and op-
erating or to be operated in the domestic or foreign
commerce of the United States,
‘‘(B) the economic soundness of the applica-
tions referred to in subparagraph (A), and
‘‘(C) the amount of guarantee authority avail-
able,
the Secretary determines, in the sole discretion of the Sec-
retary, that the issuance of a commitment to guarantee
obligations for an eligible export vessel will not result in
the denial of an economically sound application to issue
a commitment to guarantee obligations for vessels docu-
mented under the laws of the United States operating in
the domestic or foreign commerce of the United States.
‘‘(2) The Secretary may not issue commitments to
guarantee obligations for eligible export vessels under this
section after the later of—
‘‘(A) the 5th anniversary of the date on which
the Secretary publishes final regulations setting
forth the application procedures for the issuance of
commitments to guarantee obligations for eligible ex-
port vessels,
‘‘(B) the last day of any 5-year period in which
funding and guarantee authority for obligations for
eligible export vessels have been continuously avail-
able, or
‘‘(C) the last date on which those commitments
may be issued under any treaty, convention, or other
international agreement entered into after the date
of the enactment of the Shipbuilding Conversion Act
of 1993 that prohibits guarantee of those obliga-
tions.’’.
(3) AUTHORITY TO GUARANTEE OBLIGATIONS
FOR ELIGIBLE EXPORT VESSELS.—Section 1104A is
amended—
(A) by amending so much of subsection
(a)(1) as precedes the proviso to read as fol-
lows:
‘‘(1) financing, including reimbursement of an
obligor for expenditures previously made for, con-
struction, reconstruction, or reconditioning of a ves-
sel or vessels owned by citizens of the United States,
or in the case of an eligible export vessel, owned by
either non-United States or by a citizen of the
United States, which are designed principally for re-
search, or for commercial use (A) in the coastwise
or intercoastal trade; (B) on the Great Lakes, or on
bays, sounds, rivers, harbors, or inland lakes of the
United States; (C) in foreign trade as defined in sec-
tion 905 of this Act for purposes of title V of this
Act; or (D) as an ocean thermal energy conversion
facility or plantship; (E) with respect to floating dry-
docks in the construction, reconstruction, recondi-
tioning, or repair of vessels; or (F) with respect to
an eligible export vessel, in world-wide trade;’’;
(B) by amending subsection (b)(2)—
(i) by striking ‘‘subject to the provi-
sions of paragraph (1) of subsection (c) of
this section,’’ and inserting ‘‘subject to the
provisions of subsection (c)(1) and sub-
section (i),’’, and
(ii) by adding at the end the following
additional proviso: ‘‘Provided, further That
in the case of an eligible export vessel,
such obligations may be in an aggregate
principal amount which does not exceed
871⁄2 percent of the actual cost or depre-
ciated actual cost of the eligible export ves-
sel.’’;
(C) by amending subsection (b)(6) by in-
serting after ‘‘United States Coast Guard’’ the
following: ‘‘or, in the case of an eligible export
vessel, of the appropriate national flag authori-
ties under a treaty, convention, or other inter-
national agreement to which the United States
is a party’’;
(D) by striking out all after the paragraph
(2) in subsection (d) and inserting the following
new paragraph:
‘‘(3) No commitment to guarantee, or guaran-
tee of an obligation may be made by the Secretary
under this title for the construction, reconstruction
or reconditioning of an eligible export vessel un-
less—
‘‘(A) the Secretary finds that the construc-
tion, reconstruction, or reconditioning of such
eligible export vessel will aid in the transition of
United States shipyards to commercial activities
or will preserve shipbuilding assets that would
be essential in time of war or national emer-
gency, and
‘‘(B) the owner of the eligible export vessel
agrees with the Secretary that the vessel shall
not be transferred to any country designated by
the Secretary as a country whose interests are
hostile to the interests of the United States.’’;
and
(E) by adding at the end the following new
subsection: