Rebuilding the United States-Flag International Fleet Act

Bill: 118-hr-2373
Sponsor: full_name: Rep. Garamendi, John [D-CA-8]
Introduced: 2023-03-29
Policy area: Transportation and Public Works
Latest action: action_date: 2023-03-30
text: Referred to the Subcommittee on Coast Guard and Maritime Transportation.

Summaries:
action_date: 2023-03-29
action_desc: Introduced in House
text: <p><b>Rebuilding the United States-Flag International Fleet Act</b></p> <p>This bill reinstates and augments certain cargo preference requirements and addresses related issues. (Cargo preference requirements specify that a minimum percentage of federally financed ocean cargo must be transported on U.S.-flagged commercial vessels.)</p> <p>Under current law, federal agencies must ensure that 50% of the gross tonnage of their purchases and cargo transported via ocean vessel is carried on eligible U.S.-flagged commercial vessels. The bill increases this requirement to 75%. The Maritime Administration (MARAD) must issue regulations and interagency guidance implementing this policy and an earlier-enacted preference applicable to military cargo. </p> <p>The bill also reinstates a requirement for 25% of the total gross tonnage of certain federally financed agricultural cargo to be transported on U.S.-flagged commercial vessels. This requirement, which was repealed in a 2012 law, shall apply in addition to the 75% requirement.</p> <p>Specifically, the additional 25% requirement applies to commodities, specialty crops, and food products exported by the Department of Agriculture under designated international food assistance programs, including the Food for Peace Act and the Food for Progress Act of 1985. The Department of Transportation (DOT) must finance any increased ocean freight expenses incurred as a result of the 25% cargo preference requirement.</p> <p>The bill also details registration requirements for a vessel to be eligible to haul cargo under each preference.</p> <p>DOT may temporarily waive these requirements under limited emergency circumstances if MARAD determines that there is an inadequate supply of vessels to satisfy the requirements.</p>

tv_txt: I 118th CONGRESS 1st Session H. R. 2373 IN THE HOUSE OF REPRESENTATIVES March 29, 2023 Mr. Garamendi introduced the following bill; which was referred to the Committee on Armed Services , and in addition to the Committee on Transportation and Infrastructure , for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned A BILL To reinstate certain laws relating to minimum tonnage of agricultural commodities and products, and for other purposes.

1. Short title This Act may be cited as the Rebuilding the United States-Flag International Fleet Act . 2. Reinstatements of minimum tonnage and transportation costs reimbursement (a) Repeal under MAP–21 Section 100124 of the Moving Ahead for Progress in the 21st Century Act ( Public Law 112–141 ) is repealed, and any provision of law amended or repealed by such section is restored or revived as if such section were not enacted into law. (b) Repeal under Bipartisan Budget Act of 2013 Section 602 of the Bipartisan Budget Act of 2013 ( Public Law 113–67 ) is repealed, and any provision of law amended or repealed by such section is restored or revived as if such section were not enacted into law. (c) Report on administration of programs (1) In general Chapter 553 of title 46, United States Code, is amended by inserting before section 55302 the following: 55301. Report on administration of programs (a) In general The Administrator of the Maritime Administration shall annually submit to Congress a report on the administration by other Federal departments and agencies of programs subject to section 2631 of title 10, United States Code, and that the Administrator determines subject to section 55305 of title 46, United States Code. (b) Contents The report under paragraph (1) shall include— (1) gross tonnage by department or agency of cargo (equipment, materials, or agricultural products) and by cargo type transported on United States flag vessels versus foreign vessels; and (2) the total number of United States flag vessels versus foreign vessels contracted by each department or agency. . (2) Clerical amendment The analysis for chapter 553 of title 46, United States Code, is amended by inserting before the item relating to section 55302 the following new item: 55301. Report on administration of programs. . 3. Cargoes procured, furnished, or financed by the United States Government (a) In general Section 55305 of title 46, United States Code, is amended— (1) by striking subsection (a); (2) in subsection (b) by striking 50 and inserting 75 ; (3) by redesignating subsection (b) as subsection (a); (4) by striking subsection (c) and inserting the following: (c) Waivers (1) In general Notwithstanding any other provision of law, when the President, the Secretary of Defense, or the Secretary of Transportation declares the existence of an emergency justifying a temporary waiver of this section or section 55314, the President, the Secretary of Defense, or the Secretary of Transportation, following a determination by the Maritime Administrator, acting in the Administrator’s capacity as Director, National Shipping Authority, of the non-availability of qualified United States flag capacity at fair and reasonable rates for commercial vessels of the United States to meet the requirements of this section or section 55314, may waive compliance with such section to the extent, in the manner, and on the terms the Maritime Administrator, acting in such capacity, prescribes, and no other waivers of the requirements of this section or section 55314 shall be authorized. (2) Duration of waiver (A) In general Subject to subparagraphs (B) and (C), a waiver issued under this subsection shall be for a period of not more than 60 days. (B) Waiver extension Upon termination of the period of a waiver issued under this subsection, the Maritime Administrator may extend the waiver for an additional period of not more than 30 days, if the Maritime Administrator makes the determinations described in paragraph (1). (C) Aggregate duration The aggregate duration of the period of all waivers and extensions of waivers under this subsection with respect to any one set of events shall not exceed 3 months in a fiscal year. (3) Determinations The Maritime Administrator shall— (A) for each determination referred to in paragraph (1), identify any actions that could be taken to enable qualified United States flag capacity to meet the requirements of this section or section 55314 at fair and reasonable rates for commercial vessels of the United States; (B) provide notice of each determination referred to in paragraph (1) to the Secretary of Transportation and, as applicable, the President or the Secretary of Defense; and (C) publish each determination referred to in paragraph (1)— (i) on the website of the Maritime Administration not later than 24 hours after notice of the determination is provided to the Secretary of Transportation; and (ii) in the Federal Register. (4) Notice to congress The Maritime Administrator shall notify— (A) the Committee on Commerce, Science, and Transportation of the Senate and the Committee on Transportation and Infrastructure of the House of Representatives of— (i) any request for a waiver (or an extension thereof) made by the Secretary of Transportation of this section or section 55314(a) not later than 72 hours after receiving such a request; and (ii) the issuance of any such waiver (or an extension thereof), and why such waiver or extension was necessary, not later than 72 hours after such issuance; and (B) the Committee on Commerce, Science, and Transportation and the Committee on Armed Services of the Senate and the Committee on Transportation and Infrastructure and the Committee on Armed Services of the House of Representatives of— (i) any request for a waiver (or an extension thereof) made by the Secretary of Defense of this section or section 55314(a) not later than 72 hours after receiving such a request; and (ii) the issuance of any such waiver (or an extension thereof), and why such waiver or extension was necessary, not later than 72 hours after such issuance. ; (5) by redesignating subsections (c) through (e) as subsections (d) through (f), respectively; (6) by inserting after subsection (a) the following: (b) Eligible vessels To be eligible to carry cargo under this section, a privately-owned commercial vessel— (1) shall be documented under the laws of the United States for at least 3 years; or (2) may be documented under the laws of the United States for less than 3 years if— (A) the vessel owner signs an agreement with the Secretary providing that— (i) the vessel shall remain documented under the laws of the United States for at least 3 years; and (ii) the vessel owner shall, upon request of the Secretary, agree to enroll the vessel in an Emergency Preparedness Program under chapter 531 or voluntary agreement authorize under section 708 of the Defense Production Act of 1950 ( 50 U.S.C. 4558 ) and shall remain so enrolled until the vessel ceases to be documented under the laws of the United States; (B) the vessel— (i) is a tank vessel that is 10 years of age or less on the date the vessel is documented under the laws of the United States; or (ii) is any other type of vessel that is 15 years of age or less on the date the vessel is documented under the laws of the United States; and (C) the vessel was not originally built in a country which is a proscribed country listed pursuant to part 126 of title 22, Code of Federal Regulations, or successor regulations (commonly known as the International Traffic in Arms Regulations ). (c) Violation of agreement (1) In general A vessel under an agreement described in subsection (b)(2) may be seized by and forfeited to the United States if, in violation of such agreement— (A) the vessel owner places the vessel under foreign registry; or (B) a person operates the vessel under the authority of a foreign country. (2) Inapplicability of other law Section 12112 of title 46, United States Code, shall not apply to the seizure and forfeiture of a vessel pursuant to paragraph (1). ; and (7) by adding at the end the following: (g) Audit and report In carrying out this section, the Secretary shall annually— (1) audit the list of vessels that are operating under an agreement described in subsection (b)(2); and (2) submit to Congress a report describing— (A) each of the vessels operating under paragraph (2) of section 55305(b) and each agreement signed by the Secretary pursuant to such paragraph; (B) the results of any audit described in paragraph (1); and (C) any other pertinent information that the Secretary determines to be of interest to Congress. . (b) Technical amendment (1) Chapter analysis The analysis for chapter 553 of title 46, United States Code, is amended by striking the item relating to subchapter I and inserting the following: SUBCHAPTER I—GOVERNMENT IMPELLED TRANSPORTATION . (2) Cargoes procured, furnished, or financed by the United States Government Section 55305(d)(2)(D) of title 46, United States Code, is amended by striking section 25(c)(1) of the Office of Federal Procurement Policy Act ( 41 U.S.C. 1303(a)(1) ) and inserting section 1303(a)(1) of title 41, United States Code, . 4. Transportation requirements for certain exports sponsored by the Secretary of Agriculture Section 55314 of title 46, United States Code, is amended— (1) in subsection (b)— (A) in paragraph (1) by inserting titles I, II, or III of after carried out under ; (B) in paragraph (4) by striking agricultural commodities or their products and inserting agricultural products ; (C) in paragraph (5) by striking agricultural commodities or their products and inserting agricultural products ; (D) in paragraph (6) by striking agricultural commodities or their products and inserting agricultural products ; (E) in paragraph (7) by striking agricultural commodities and inserting agricultural products ; (F) by redesignating paragraphs (4), (5), (6), and (7) as paragraphs (6), (7), (8), and (9), respectively; and (G) by inserting after paragraph (3) the following: (4) carried out under the Food for Progress Act of 1985 ( 7 U.S.C. 1736o ); (5) carried out under the McGovern-Dole International Food for Education and Child Nutrition Program under section 3107 of the Farm Security and Rural Investment Act of 2002 ( 7 U.S.C. 1736o–1 ); ; and (2) by adding at the end the following: (d) Submission to Congress At least once each fiscal year, the Secretary of Agriculture or the Administrator of the United States Agency for International Development, as applicable, shall submit to the appropriate congressional committees, in writing, a notice of any waiver of the requirements of this section and the reasons for granting such waiver. (e) Agricultural product defined In this section, the term agricultural product means any food product, including an agricultural commodity (as such term is defined in section 402 of the Food for Peace Act ( 7 U.S.C. 1732(2) )), specialty crop (as such term is defined in section 3(1) of the Specialty Crops Competitiveness Act of 2004 ( 7 U.S.C. 1621 note)), or processed food product, exported from the United States. . 5. Reports to Congress (a) Report on implementation of military cargo preference Not later than 180 days after the date of enactment of this Act, the Secretary of Defense shall submit to Congress a report on the implementation by the Department of Defense of the amendments to section 2631 of title 10, United States Code, made by section 1024 of the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021 ( Public Law 116–283 ). (b) Report on port preferences for US–Flag vessels Not later than 1 year after the date of enactment of this Act, the Secretary of Transportation shall submit to Congress a report on the preference, if any, afforded by each port authority or marine terminal operator, as applicable, to vessels documented under the laws of the United States, including such vessels— (1) operated by an armed force (as such term is defined in section 101(4) of title 10, United States Code); (2) participating in the Maritime Security Program or the Emergency Preparedness Program under chapter 531 of title 46, United States Code, the Cable Security Fleet under chapter 532 of such title, the Tanker Security Fleet under chapter 534 of such title, or the National Defense Reserve Fleet under section 57100 of such title; and (3) with a coastwise endorsement under chapter 121 of title 46, United States Code. 6. Regulations and guidance Not later than 180 days after the date of enactment of this Act, the Administrator of the Maritime Administration shall— (1) promulgate regulations under subchapter III of chapter 5 of title 5, United States Code, to fully implement and ensure compliance with section 2631 of title 10, United States Code, and section 55305 of title 46, United States Code; and (2) issue interagency guidance to other Federal departments and agencies on how to administer the programs in accordance with such Acts and the amendments made by the this Act, which shall include publication in the Federal Register and on the website of the Maritime Administration.