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46 U.S.C. § 53407 — National security requirements

Federal law — U.S. Code and appendices · legal_authorities

46 U.S.C. § 53407 — National security requirements

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Source file: Laws/federal/codes/united-states-code/title-46/section-53407-national-security-requirements--b3e3ea8fd8.md
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Source location: Title 46, Chapter 534, § 53407; chapter-534-tanker-security-fleet.md

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**(a) Emergency Preparedness Agreement Required.—** The Secretary of Transportation, in coordination with the Secretary of Defense, shall establish an emergency preparedness program under this section under which the program participant for an operating agreement under this chapter shall agree, as a condition of the operating agreement, to enter into an emergency preparedness agreement with the Secretary. The Secretary shall negotiate and enter into an Emergency Preparedness Agreement with each program participant as promptly as practicable after the program participant has entered into the operating agreement. **(b) Terms of Agreement.—** The terms of an agreement under this section— (1) shall provide that upon request by the Secretary of Defense during time of war or national emergency, or whenever determined by the Secretary of Defense to be necessary for national security or contingency operation (as that term is defined in [section 101 of title 10](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title10-section101&num=0&edition=prelim)), the program participant shall make available commercial transportation resources (including services) described in subsection (d) to the Secretary of Defense; (2) shall include such additional terms as may be established by the Secretary of Transportation and the Secretary of Defense; and (3) shall allow for the modification or addition of terms upon agreement by the Secretary of Transportation and the program participant and the approval by the Secretary of Defense. **(c) Participation After Expiration of Operating Agreement.—** Except as provided by section 53406, the Secretary of Transportation may not require, through an emergency preparedness agreement or an operating agreement, that a program participant covered by an operating agreement continue to participate in an emergency preparedness agreement after the operating agreement has expired according to its terms or is otherwise no longer in effect. After the expiration of an emergency preparedness agreement, a program participant may voluntarily continue to participate in the agreement. **(d) Resources Made Available.—** The commercial transportation resources to be made available under an emergency preparedness agreement shall include vessels or capacity in vessels, terminal facilities, management services, and other related services, or any agreed portion of such nonvessel resources for activation as the Secretary of Defense may determine to be necessary, seeking to minimize disruption of the program participant’s service to commercial customers. **(e) Compensation.—** (1) **In general.—** — The Secretary of Transportation shall include in each Emergency Preparedness Agreement provisions approved by the Secretary of Defense under which the Secretary of Defense shall pay fair and reasonable compensation for all commercial transportation resources provided pursuant to this section. (2) **Specific requirements.—** — Compensation under this subsection— (A) shall not be less than the program participant’s commercial market charges for like transportation resources; (B) shall be fair and reasonable considering all circumstances; (C) shall be provided from the time that a vessel or resource is required by the Secretary of Defense until the time it is redelivered to the program participant and is available to reenter commercial service; and (D) shall be in addition to and shall not in any way reflect amounts payable under [section 53406 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title46-section53406&num=0&edition=prelim). **(f) Temporary Replacement Vessels.—** Notwithstanding section 55302(a), 55304, 55305, or 55314 of this title, [section 2631 of title 10](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title10-section2631&num=0&edition=prelim), or any other cargo preference law of the United States— (1) a program participant may operate or employ in foreign commerce a foreign-flag vessel or foreign-flag vessel capacity as a temporary replacement for a vessel of the United States or vessel of the United States capacity that is activated by the Secretary of Defense under an emergency preparedness agreement or a primary Department of Defense sealift-approved readiness program; and (2) such replacement vessel or vessel capacity shall be eligible during the replacement period to transport preference cargoes subject to sections 55302(a), 55304, 55305, and 55314 of this title and [section 2631 of title 10](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title10-section2631&num=0&edition=prelim), United States Code, to the same extent as the eligibility of the vessel or vessel capacity replaced. **(g) Redelivery and Liability of the United States for Damages.—** (1) **In general.—** — All commercial transportation resources activated under an emergency preparedness agreement shall, upon termination of the period of activation, be redelivered to the program participant in the same good order and condition as when received, less ordinary wear and tear, or the Secretary of Defense shall fully compensate the program participant for any necessary repair or replacement. (2) **Limitation on united states liability.—** — Except as may be expressly agreed in an emergency preparedness agreement, or as otherwise provided by law, the Government shall not be liable for disruption of a program participant’s commercial business or other consequential damages to the program participant arising from the activation of commercial transportation resources under an emergency preparedness agreement.

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Federal law — U.S. Code and appendices · legal_authorities

46 U.S.C. § 53406 — Payments

**(a) Annual Payments.—** (1) **In general.—** — Subject to the availability of appropriations and the other provisions of this section, the Secretary shall pay to a program participant for an operating agreement under this chapter, for each vessel that is covered by the operating agreement, an amount equal to— (A) $8,160,000 for each of fiscal years 2025 and 2026; (B) $8,380,000 for each of fiscal years 2027 and 2028; (C) $8,606,000 for each of fiscal years 2029 and 2030; (D) $8,839,000 for each of fiscal years 2031 and 2032; (E) $9,078,000 for each of fiscal years 2033 and 2034; (F) $9,323,000 for each of fiscal years 2035 and 2036; (G) $9,574,000 for each of fiscal years 2037 and 2038; and (H) $9,833,000 for each of fiscal years 2039 and 2040. (2) **Timing.—** — The amount payable to a program participant under paragraph (1) for a fiscal year shall be paid in 12 equal monthly installments at the end of each month during that fiscal year. The amount payable for any fiscal year may not be reduced except as provided by this section or section 51307(b). **(b) Certification Required for Payment.—** As a condition of receiving payment under this section for a fiscal year for a vessel, the program participant shall certify, in accordance with regulations issued by the Secretary, that the vessel has been and will be operated in accordance with [section 53405(a) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title46-section53405/a&num=0&edition=prelim) for at least 320 days during the fiscal year. Days during which the vessel is drydocked, surveyed, inspected, or repaired shall be considered days of operation for purposes of this subsection. **(c) General Limitations.—** The Secretary may not make any payment under this

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Federal law — U.S. Code and appendices · legal_authorities

10 U.S.C. § 2631 — Preference for United States vessels in transporting supplies by sea

**(a) In General.—** Supplies bought for the Army, Navy, Air Force, Marine Corps, or Space Force, or for a Defense Agency, or otherwise transported by the Department of Defense, may only be transported by sea in— (1) a vessel belonging to the United States; or (2) a vessel of the United States (as such term is defined in [section 116 of title 46](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title46-section116&num=0&edition=prelim)). **(b) Waiver and Notification.—** (1) The Secretary of Defense may waive the requirement under subsection (a) if such a vessel is— (A) not available at a fair and reasonable rate for commercial vessels of the United States; or (B) otherwise not available. (2) At least once each fiscal year, the Secretary of Defense shall submit, in writing, to the appropriate congressional committees a notice of any waiver granted under this subsection and the reasons for such waiver. **(c) Requirements for Reflagging or Repair Work.—** (1) In each request for proposals to enter into a time-charter contract for the use of a vessel for the transportation of supplies under this section, the Secretary of Defense shall require that— (A) any reflagging or repair work on a vessel for which a proposal is submitted in response to the request for proposals be performed in the United States (including any territory of the United States); and (B) any corrective and preventive maintenance or repair work on a vessel under contract pursuant to this section relevant to the purpose of such contract be performed in the United States (including any territory of the United States) for the duration of the contract, to the greatest extent practicable. (2) The Secretary of Defense may waive a requirement under paragraph (1) if the Secretary det

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Federal law — U.S. Code and appendices · legal_authorities

10 U.S.C. § 101 — Definitions

**(a) In General.—** The following definitions apply in this title: (1) The term “United States”, in a geographic sense, means the States and the District of Columbia. (2) Repealed. Pub. L. 109–163, div. A, title X, § 1057(a)(1), Jan. 6, 2006, 119 Stat. 3440.] (3) The term “possessions” includes the Virgin Islands, Guam, American Samoa, and the Guano Islands, so long as they remain possessions, but does not include any Commonwealth. (4) The term “armed forces” means the Army, Navy, Air Force, Marine Corps, Space Force, and Coast Guard. (5) The term “uniformed services” means— (A) the armed forces; (B) the commissioned corps of the National Oceanic and Atmospheric Administration; and (C) the commissioned corps of the Public Health Service. (6) The term “department”, when used with respect to a military department, means the executive part of the department and all field headquarters, forces, reserve components, installations, activities, and functions under the control or supervision of the Secretary of the department. When used with respect to the Department of Defense, such term means the executive part of the department, including the executive parts of the military departments, and all field headquarters, forces, reserve components, installations, activities, and functions under the control or supervision of the Secretary of Defense, including those of the military departments. (7) The term “executive part of the department” means the executive part of the Department of Defense, Department of the Army, Department of the Navy, or Department of the Air Force, as the case may be, at the seat of government. (8) The term “military departments” means the Department of the Army, the Department of the Navy, and the Department of the Air Force. (9) The term

Source: Supplied U.S. Code snapshot — release unconfirmed · 10 U.S.C. § 101

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Federal law — U.S. Code and appendices · legal_authorities

46 U.S.C. § 53407 — National security requirements

Page 423 TITLE 46—SHIPPING § 53407 (D) $8,839,000 for each of fiscal years 2031 and 2032; (E) $9,078,000 for each of fiscal years 2033 and 2034; (F) $9,323,000 for each of fiscal years 2035 and 2036; (G) $9,574,000 for each of fiscal years 2037 and 2038; and (H) $9,833,000 for each of fiscal years 2039 and 2040. (2) TIMING.—The amount payable to a pro- gram participant under paragraph (1) for a fis- cal year shall be paid in 12 equal monthly in- stallments at the end of each month during that fiscal year. The amount payable for any fiscal year may not be reduced except as pro- vided by this section or section 51307(b). (b) CERTIFICATION REQUIRED FOR PAYMENT.—As a condition of receiving payment under this sec- tion for a fiscal year for a vessel, the program participant shall certify, in accordance with reg- ulations issued by the Secretary, that the vessel has been and will be operated in accordance with section 53405(a) of this title for at least 320 days during the fiscal year. Days during which the vessel is drydocked, surveyed, inspected, or re- paired shall be considered days of operation for purposes of this subsection. (c) GENERAL LIMITATIONS.—The Secretary may not make any payment under this chapter for a vessel with respect to any days for which the vessel is— (1) not operated or maintained in accordance with an operating agreement under this chap- ter; (2) more than 20 years of age; or (3) simultaneously operating under an agree- ment pursuant to chapter 531 of this title. (d) REDUCTIONS IN PAYMENTS.—With respect to payments under this chapter for a vessel covered by an operating agreement, the Secretary— (1) except as provided in paragraph (2), may not reduce such a payment for— (A) the operation of the vessel to carry military or

Source: Supplied 2024 U.S. Code historical extraction · 46 U.S.C. § 53407

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