46 U.S.C. § 57101 — Placement of vessels in National Defense

Page 509 TITLE 46—SHIPPING § 57101 ‘‘(2) AGREEMENT WITH VESSEL CONSTRUCTION MAN- AGER.—Notwithstanding section 8679 of title 10, United States Code, and subject to the availability of appropriations made specifically available for reim- bursements to the Ready Reserve Force, Maritime Administration account of the Department of Trans- portation for programs, projects, activities, and ex- penses related to the National Defense Reserve Fleet, the Secretary of the Transportation, in consultation with the Secretary of the Navy, shall seek to enter into an agreement with an appropriate vessel con- struction manager under which the vessel construc- tion manager shall enter into a contract for the con- struction of not more than ten such vessels in accord- ance with this section. ‘‘(b) CONSTRUCTION AND DOCUMENTATION REQUIRE- MENTS.—A vessel constructed pursuant to this section shall meet the requirements for, and be issued a certifi- cate of, documentation and a coastwise endorsement under chapter 121 of title 46, United States Code. ‘‘(c) DESIGN STANDARDS AND CONSTRUCTION PRAC- TICES.—Subject to subsection (b), a vessel constructed pursuant to this section shall be constructed using commercial design standards and commercial construc- tion practices that are consistent with the best inter- ests of the Federal Government. ‘‘(d) CONSULTATION WITH OTHER FEDERAL ENTITIES.— The Secretary of Transportation shall consult and co- ordinate with the Secretary of the Navy and may con- sult with the heads of other appropriate Federal agen- cies regarding the vessel described in subsection (a) and activities associated with such vessel. ‘‘(e) LIMITATION ON USE OF FUNDS FOR USED VES- SELS.—None of the funds authorized to be appropriated by this Act or otherwise made available to carry out this section may be used for the procurement of any used vessel. ‘‘(f) LIMITATION.—Of the amounts authorized to be ap- propriated by this Act [see Tables for classification] or otherwise made available for fiscal year 2024 for the Secretary of the Navy for travel expenses, not more than 50 percent may be obligated or expended until the Secretary of the Navy submits to the congressional de- fense committees [Committee on Armed Services and Committee on Appropriations of the Senate and House of Representatives] a report that includes a detailed de- scription of the acquisition strategy for the execution of the authority under subsection (a).’’ VESSEL REPAIR AND MAINTENANCE PILOT PROGRAM Pub. L. 104–239, § 16, Oct. 8, 1996, 110 Stat. 3138, pro- vided that: ‘‘(a) IN GENERAL.—The Secretary of Transportation shall conduct a pilot program to evaluate the feasi- bility of using renewable contracts for the maintenance and repair of outported vessels in the Ready Reserve Force to enhance the readiness of those vessels. Under the pilot program, the Secretary, subject to the avail- ability of appropriations and within 6 months after the date of the enactment of this Act [Oct. 8, 1996], shall award 9 contracts for this purpose. ‘‘(b) USE OF VARIOUS CONTRACTING ARRANGEMENTS.— In conducting a pilot program under this section, the Secretary of Transportation shall use contracting ar- rangements similar to those used by the Department of Defense for procuring maintenance and repair of its vessels. ‘‘(c) CONTRACT REQUIREMENTS.—Each contract with a shipyard under this section shall— ‘‘(1) subject to subsection (d), provide for the pro- curement from the shipyard of all repair and mainte- nance (including activation, deactivation, and drydocking) for 1 vessel in the Ready Reserve Force that is outported in the geographical vicinity of the shipyard; ‘‘(2) be effective for 1 fiscal year; and ‘‘(3) be renewable, subject to the availability of ap- propriations, for each subsequent fiscal year through fiscal year 1998. ‘‘(d) LIMITATION OF WORK UNDER CONTRACTS.—A con- tract under this section may not provide for the pro- curement of operation or manning for a vessel that may be procured under another contract for the vessel to which section 11(d)(2) of the Merchant Ship Sales Act of 1946 (50 U.S.C. App. 1774(d)(2)) [probably means ‘‘(50 U.S.C. App. 1744(d)(2))’’, now 46 U.S.C. 57100(c)(2)] applies. ‘‘(e) GEOGRAPHIC DISTRIBUTION.—The Secretary shall seek to distribute contract awards under this section to shipyards located throughout the United States. ‘‘(f) REPORTS.—The Secretary shall submit to the Congress— ‘‘(1) an interim report on the effectiveness of each contract under this section in providing for economic and efficient repair and maintenance of the vessel in- cluded in the contract, no later than 20 months after the date of the enactment of this Act [Oct. 8, 1996]; and ‘‘(2) a final report on that effectiveness no later than 6 months after the termination of all contracts awarded pursuant to this section.’’ § 57101. Placement of vessels in National Defense Reserve Fleet (a) IN GENERAL.—Any vessel acquired by the Maritime Administration of 1,500 gross tons or more or such other vessels as the Secretary of Transportation determines are appropriate shall be placed in the National Defense Reserve Fleet. (b) REMOVAL FROM FLEET.—A vessel placed in the Fleet under subsection (a) may not be traded out or sold from the Fleet, except as provided in section 57102, 57103, or 57104 or chapter 533, 537, 573, or 575 of this title, or section 308704 of title 54. (c) AUTHORITY OF FEDERAL ENTITIES TO TRANS- FER VESSELS.—All Federal entities are author- ized to transfer vessels to the National Defense Reserve Fleet without reimbursement subject to the approval of the Secretary of Transportation and the Secretary of the Navy with respect to Ready Reserve Force vessels and the Secretary of Transportation with respect to all other ves- sels. (Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1658; Pub. L. 112–213, title IV, §§ 406, 407, Dec. 20, 2012, 126 Stat. 1571; Pub. L. 115–91, div. C, title XXXV, § 3502(b)(7), Dec. 12, 2017, 131 Stat. 1911; Pub. L. 118–31, div. C, title XXXV, § 3514(j)(3), Dec. 22, 2023, 137 Stat. 811.) HISTORICAL AND REVISION NOTES Revised Section Source (U.S. Code) Source (Statutes at Large) 57101 .......... 46 App.:1160(j). June 29, 1936, ch. 858, title V, § 510(j), as added Pub. L. 89–254, § 2, Oct. 10, 1965, 79 Stat. 980; Pub. L. 97–31, § 12(91), Aug. 6, 1981, 95 Stat. 161. In subsection (a), the words ‘‘vessel acquired by the Maritime Administration’’ are substituted for ‘‘vessel heretofore or hereafter acquired under this section, or otherwise acquired by the Maritime Administration of the Department of Transportation under any other au- thority’’ to eliminate unnecessary words. In subsection (b), the words ‘‘except as provided in section 57102, 57103, or 57104 or chapter 533, 537, 573, or 575 of this title’’ are substituted for ‘‘except as provided for in subsections (g) and (i) of this section. This limi- tation shall not affect the rights of the Secretary of Transportation to dispose of a vessel as provided in other sections of this subchapter or in subchapters VII or XI of this chapter’’ because of the restatement. Page 510 TITLE 46—SHIPPING § 57102 Editorial Notes AMENDMENTS 2023—Subsec. (b). Pub. L. 118–31 inserted ‘‘, or section 308704 of title 54’’ before period at end. 2017—Subsec. (a). Pub. L. 115–91, which directed strik- ing out ‘‘maintained under section 11 of the Merchant Ship Sales Act of 1946 (50 App. 1744)’’, was executed by striking out ‘‘maintained under section 11 of the Mer- chant Ship Sales Act of 1946 (50 App. U.S.C. 1744)’’ be- fore period at end, to reflect the probable intent of Con- gress. 2012—Subsec. (a). Pub. L. 112–213, § 406, inserted ‘‘of 1,500 gross tons or more or such other vessels as the Secretary of Transportation determines are appro- priate’’ after ‘‘Administration’’. Subsec. (c). Pub. L. 112–213, § 407, added subsec. (c). § 57102. Disposition of vessels (a) IN GENERAL.—If the Secretary of Transpor- tation determines that a vessel is an obsolete vessel, the Secretary may dispose of such vessel (by sale or by purchase of disposal services). (b) SELLING PROCEDURE.—The sale of a vessel under subsection (a) shall be made on a best value basis. The purchaser does not have to be a citizen of the United States. The purchaser shall provide a surety bond, with a surety approved by the Secretary, to ensure that the vessel will not be operated in the foreign trade of the United States at any time within 10 years after the sale, in competition with a vessel owned by a citizen of the United States and documented under the laws of the United States. (Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1658; Pub. L. 118–31, div. C, title XXXV, § 3514(j)(4), Dec. 22, 2023, 137 Stat. 811.) HISTORICAL AND REVISION NOTES Revised Section Source (U.S. Code) Source (Statutes at Large) 57102 .......... 46 App.:1158(a). June 29, 1936, ch. 858, title V, § 508(a), 49 Stat. 2000; Pub. L. 97–31, § 12(89), Aug. 6, 1981, 95 Stat. 161; Pub. L. 108–136, title XXXV, § 3512(1), Nov. 24, 2003, 117 Stat. 1789. In subsection (a), the words ‘‘vessel owned by the Maritime Administration’’ are substituted for ‘‘vessel transferred to the Maritime Administration of the De- partment of Transportation by section 1112 of this Ap- pendix, or hereafter acquired’’ to eliminate unneces- sary words. In subsection (b), the words ‘‘The sale of a vessel under section (a) shall be made on the basis of competi- tive sealed bids, after an appraisal and due advertise- ment. The purchaser does not have to be a citizen of the United States.’’ are substituted for ‘‘after appraise- ment and due advertisement, and upon competitive sealed bids, either to citizens of the United States or to aliens’’ for clarity. The words ‘‘provide a surety bond, with a surety approved by the Secretary, to ensure that’’ are substituted for ‘‘enter into an undertaking with sureties approved by the Secretary of Transpor- tation that’’ for clarity. Editorial Notes AMENDMENTS 2023—Pub. L. 118–31, § 3514(j)(4)(A), struck out ‘‘not worth preserving’’ after ‘‘Disposition of vessels’’ in sec- tion catchline. Subsec. (a). Pub. L. 118–31, § 3514(j)(4)(B), substituted ‘‘is an obsolete vessel, the Secretary may dispose of such vessel (by sale or by purchase of disposal serv- ices).’’ for ‘‘owned by the Maritime Administration is of insufficient value for commercial or military oper- ation to warrant its further preservation, the Secretary may scrap the vessel or sell the vessel for cash.’’ Subsec. (b). Pub. L. 118–31, § 3514(j)(4)(C), substituted ‘‘on a best value basis’’ for ‘‘on the basis of competitive sealed bids, after an appraisal and due advertisement’’. Statutory Notes and Related Subsidiaries LIMITATION ON EXPORT OF VESSELS OWNED BY THE GOVERNMENT OF THE UNITED STATES FOR THE PUR- POSE OF DISMANTLING, RECYCLING, OR SCRAPPING Pub. L. 110–417, div. C, title XXXV, § 3502, Oct. 14, 2008, 122 Stat. 4761, provided that: ‘‘(a) IN GENERAL.—Except as provided in subsection (b), no vessel that is owned by the Government of the United States shall be approved for export to a foreign country for purposes of dismantling, recycling, or scrapping. ‘‘(b) EXCEPTION.—Subsection (a) shall not apply with respect to a vessel if the Administrator of the Maritime Administration certifies to the Committee on Armed Services of the House of Representatives and the Com- mittee on Commerce, Science, and Transportation of the Senate that— ‘‘(1) a compelling need for dismantling, recycling, or scrapping the vessel exists; ‘‘(2) there is no available capacity in the United States to conduct the dismantling, recycling, or scrapping of the vessel; ‘‘(3) any dismantling, recycling, or scrapping of the vessel in a foreign country will be conducted in full compliance with environmental, safety, labor, and health requirements for ship dismantling, recycling, or scrapping that are equivalent to the laws of the United States; and ‘‘(4) the export of the vessel under this section will only be for dismantling, recycling, or scrapping of the vessel. ‘‘(c) UNITED STATES DEFINED.—In this section the term ‘United States’ means the States of the United States, Puerto Rico, and Guam.’’ VESSEL DISPOSAL PROGRAM Pub. L. 110–181, div. C, title XXXV, § 3503, Jan. 28, 2008, 122 Stat. 592, provided that: ‘‘(a) IN GENERAL.—Within 30 days after the date of the enactment of this Act [Jan. 28, 2008], the Secretary of Transportation shall convene a working group to re- view and make recommendations on best practices for the storage and disposal of obsolete vessels owned or operated by the Federal Government. The Secretary shall invite senior representatives from the Maritime Administration, the Coast Guard, the Environmental Protection Agency, the National Oceanic and Atmos- pheric Administration, and the United States Navy to participate in the working group. The Secretary may request the participation of senior representatives of any other Federal department or agency, as appro- priate, and may also request participation from con- cerned State environmental agencies. ‘‘(b) SCOPE.—Among the vessels to be considered by the working group are Federally owned or operated ves- sels that are— ‘‘(1) to be scrapped or recycled; ‘‘(2) to be used as artificial reefs; or ‘‘(3) to be used for the Navy’s SINKEX program. ‘‘(c) PURPOSE.—The working group shall— ‘‘(1) examine current storage and disposal policies, procedures, and practices for obsolete vessels owned or operated by Federal agencies; ‘‘(2) examine Federal and State laws and regula- tions governing such policies, procedures, and prac- tices and any applicable environmental laws; and ‘‘(3) within 90 days after the date of enactment of the [this] Act [Jan. 28, 2008], submit a plan to the Committee on Armed Services and the Committee on