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46 U.S.C. § 53403 — Award of operating agreements
Federal law — U.S. Code and appendices · legal_authorities
**(a) In General.—** The Secretary of Transportation shall require, as a condition of including any vessel in the Fleet, that the program participant of the vessel enter into an operating agreement with the Secretary under this section.
**(b) Procedure for Applications.—**
(1) **Eligible vessels.—** — The Secretary of Transportation shall accept an application for an operating agreement for an eligible product tank vessel under the priority under paragraph (2) only from a person that has authority to enter into an operating agreement under this chapter.
(2) **Establishment of priority.—** — The Secretary of Transportation may enter into a new operating agreement with an applicant that meets the requirements of section 53402(c) for a vessel that meets the qualifications of section 53402(b), and shall give priority to applications based on—
(A) vessel capabilities, as established by the Secretary of Defense; then
(B) after consideration of vessel type, according to an applicant’s record of owning and operating vessels; then
(C) after consideration of ownership and operation, according to such additional priorities as the Secretary of Transportation may consider appropriate.
(3) **Concurrence of award.—** — The Secretary of Transportation may not approve an application for an operating agreement without the concurrence of the Secretary of Defense.
**(c) Limitation.—** The Secretary of Transportation may not award operating agreements under this chapter that require payments under [section 53406 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title46-section53406&num=0&edition=prelim) for more than—.11 So in original. The period probably should not appear.
(1) for each of fiscal years 2022 and 2023, 10 vessels; and
(2) for any sub
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Source file: Laws/federal/codes/united-states-code/title-46/section-53403-award-of-operating-agreements--edb848020f.md
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Source location: Title 46, Chapter 534, § 53403; chapter-534-tanker-security-fleet.md
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**(a) In General.—** The Secretary of Transportation shall require, as a condition of including any vessel in the Fleet, that the program participant of the vessel enter into an operating agreement with the Secretary under this section.
**(b) Procedure for Applications.—**
(1) **Eligible vessels.—** — The Secretary of Transportation shall accept an application for an operating agreement for an eligible product tank vessel under the priority under paragraph (2) only from a person that has authority to enter into an operating agreement under this chapter.
(2) **Establishment of priority.—** — The Secretary of Transportation may enter into a new operating agreement with an applicant that meets the requirements of section 53402(c) for a vessel that meets the qualifications of section 53402(b), and shall give priority to applications based on—
(A) vessel capabilities, as established by the Secretary of Defense; then
(B) after consideration of vessel type, according to an applicant’s record of owning and operating vessels; then
(C) after consideration of ownership and operation, according to such additional priorities as the Secretary of Transportation may consider appropriate.
(3) **Concurrence of award.—** — The Secretary of Transportation may not approve an application for an operating agreement without the concurrence of the Secretary of Defense.
**(c) Limitation.—** The Secretary of Transportation may not award operating agreements under this chapter that require payments under [section 53406 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title46-section53406&num=0&edition=prelim) for more than—.11 So in original. The period probably should not appear.
(1) for each of fiscal years 2022 and 2023, 10 vessels; and
(2) for any subsequent fiscal year, 20 vessels.
**(d) Judicial Review.—** No court shall have jurisdiction to review the Secretary’s decision with respect to the award or non-award of an operating agreement issued under this chapter.
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Federal law — U.S. Code and appendices · legal_authorities
**(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
Page 421
TITLE 46—SHIPPING
§ 53404
1 So in original. The period probably should not appear.
certification from a foreign classification so-
ciety under subparagraph (A) only—
(i) to the extent that the government of
the foreign country in which the society is
headquartered provides access on a recip-
rocal basis to the American Bureau of
Shipping; and
(ii) if the foreign classification society
has offices and maintains records in the
United States.
(Added Pub. L. 116–283, div. C, title XXXV,
§ 3511(a), Jan. 1, 2021, 134 Stat. 4409.)
Statutory Notes and Related Subsidiaries
DEADLINE FOR ACCEPTING APPLICATIONS
Pub. L. 116–283, div. C, title XXXV, § 3511(c), Jan. 1,
2021, 134 Stat. 4419, provided that:
‘‘(1) IN
GENERAL.—The Secretary of Transportation
shall begin accepting applications for enrollment of
vessels in the Tanker Security Fleet established under
chapter 534 of title 46, United States Code, as added by
subsection (a), by not later than 60 days after the date
of the enactment of this title [Jan. 1, 2021].
‘‘(2) APPROVAL.—Not later than 90 days after receipt
of an application for the enrollment of a vessel in the
Tanker Security Fleet, the Secretary of Transpor-
tation, in coordination with the Secretary of Defense
shall—
‘‘(A) approve the application and enter into an op-
erating agreement with the applicant; or
‘‘(B) provide to the applicant a written explanation
for the denial of the application.
‘‘(3)
VESSELS
OPERATING
IN
MARITIME
SECURITY
FLEET.—Notwithstanding the requirements of section
53402(b) of title 46, United States Code, the Secretary of
Transportation shall approve an application submitted
under chapter 534 of title 46, United State Code, for a
product tank vessel for which there is, on the date of
enactment of this t
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