46 U.S.C. § 53731 — Commercial demonstration ocean ther-

Page 457 TITLE 46—SHIPPING § 53731 HISTORICAL AND REVISION NOTES Revised Section Source (U.S. Code) Source (Statutes at Large) 53724 .......... 46 App.:1275(c). June 29, 1936, ch. 858, title XI, § 1105(c), as added June 23, 1938, ch. 600, § 46, 52 Stat. 971; Aug. 15, 1953, ch. 513, § 3, 67 Stat. 626; Sept. 3, 1954, ch. 1265, § 5, 68 Stat. 1272; Aug. 7, 1956, ch. 1026, § 1(e)–(g), 70 Stat. 1087; Pub. L. 85–520, July 15, 1958, 72 Stat. 358; Pub. L. 91–469, § 33, Oct. 21, 1970, 84 Stat. 1035; restated Pub. L. 92–507, § 3, Oct. 19, 1972, 86 Stat. 914; Pub. L. 97–31, § 12(136), Aug. 6, 1981, 95 Stat. 166; Pub. L. 98–595, § 1(10), Oct. 30, 1984, 98 Stat. 3131. Editorial Notes AMENDMENTS 2008—Pub. L. 110–181, § 3522(b), repealed Pub. L. 109–163, § 3507(a)(1)(F). See 2006 Amendment note below. Pub. L. 110–181, § 3522(a)(10)(B), (11), incorporated the substance of the amendment by Pub. L. 109–163, § 3507(a)(1)(F), into this section by inserting ‘‘or Admin- istrator’’ after ‘‘Secretary’’ wherever appearing and, in subsec. (b), ‘‘or Administrator’s’’ after ‘‘Secretary’s’’. See 2006 Amendment note below and section 18(a) of Pub. L. 109–304, set out as a Legislative Purpose and Construction note preceding section 101 of this title. 2006—Pub. L. 109–163, § 3507(a)(1)(F), which directed the amendment of section 1275(c) of the former Appen- dix to this title from which this section was derived, was repealed by Pub. L. 110–181, § 3522(b). See 2008 Amendment notes and Historical and Revision notes above. § 53725. Actions against obligor (a) IN GENERAL.—For a default under a guaran- teed obligation or related agreement, the Sec- retary or Administrator may take any action against the obligor or another liable party that the Secretary or Administrator considers nec- essary to protect the interests of the United States Government. A civil action may be brought in the name of the United States or the obligee. The obligee shall make available to the Government all records and evidence necessary to prosecute the action. (b) TITLE, POSSESSION, AND PURCHASE.— (1) IN GENERAL.—The Secretary or Adminis- trator may— (A) accept a conveyance of title to and possession of property from the obligor or another party liable to the Secretary or Ad- ministrator; and (B) purchase the property for an amount not greater than the unpaid principal amount of the obligation and interest there- on. (2) PAYMENT OF EXCESS.—If, through the sale of property, the Secretary or Administrator receives an amount of cash greater than the unpaid principal amount of the obligation, the unpaid interest on the obligation, and the ex- penses of collecting those amounts, the Sec- retary or Administrator shall pay the excess to the obligor. (Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1619; Pub. L. 109–163, div. C, title XXXV, § 3507(a)(1)(F), Jan. 6, 2006, 119 Stat. 3555; Pub. L. 110–181, div. C, title XXXV, § 3522(a)(10)(B), (b), Jan. 28, 2008, 122 Stat. 598.) HISTORICAL AND REVISION NOTES Revised Section Source (U.S. Code) Source (Statutes at Large) 53725 .......... 46 App.:1275(e). June 29, 1936, ch. 858, title XI, § 1105(e), as added June 23, 1938, ch. 600, § 46, 52 Stat. 971; Aug. 15, 1953, ch. 513, § 3, 67 Stat. 626; Sept. 3, 1954, ch. 1265, § 5, 68 Stat. 1272; Aug. 7, 1956, ch. 1026, § 1(e)–(g), 70 Stat. 1087; Pub. L. 85–520, July 15, 1958, 72 Stat. 358; Pub. L. 91–469, § 33, Oct. 21, 1970, 84 Stat. 1035; restated Pub. L. 92–507, § 3, Oct. 19, 1972, 86 Stat. 915; Pub. L. 97–31, § 12(136), Aug. 6, 1981, 95 Stat. 166; Pub. L. 98–595, § 1(11), Oct. 30, 1984, 98 Stat. 3131. In subsection (a), the words ‘‘may take any action’’ are substituted for ‘‘shall take such action . . . that, in his discretion, may be required’’ for clarity and to eliminate unnecessary words. Editorial Notes AMENDMENTS 2008—Pub. L. 110–181, § 3522(b), repealed Pub. L. 109–163, § 3507(a)(1)(F). See 2006 Amendment note below. Pub. L. 110–181, § 3522(a)(10)(B), incorporated the sub- stance of the amendment by Pub. L. 109–163, § 3507(a)(1)(F), into this section by inserting ‘‘or Admin- istrator’’ after ‘‘Secretary’’ wherever appearing. See 2006 Amendment note below and section 18(a) of Pub. L. 109–304, set out as a Legislative Purpose and Construc- tion note preceding section 101 of this title. 2006—Pub. L. 109–163, § 3507(a)(1)(F), which directed the amendment of section 1275(e) of the former Appen- dix to this title from which this section was derived, was repealed by Pub. L. 110–181, § 3522(b). See 2008 Amendment notes and Historical and Revision notes above. SUBCHAPTER III—PARTICULAR PROJECTS § 53731. Commercial demonstration ocean ther- mal energy conversion facilities and plantships (a) IN GENERAL.—Under subchapter I of this chapter, the Administrator may guarantee or make a commitment to guarantee the payment of the principal of and interest on an obligation that aids in financing (including reimbursement of an obligor for expenditures previously made for) the construction, reconstruction, or recon- ditioning of a commercial demonstration ocean thermal energy conversion facility or plantship. This section may be used to guarantee obliga- tions for a total of not more than 5 separate fa- cilities and plantships or a demonstrated 400 megawatt capacity, whichever comes first. (b) APPLICABILITY OF OTHER PROVISIONS.—Ex- cept as otherwise provided in this section, a guarantee or commitment to guarantee under this section is subject to all the provisions ap- plicable to a guarantee or commitment to guar- antee under subchapter I of this chapter. (c) ECONOMIC SOUNDNESS.—The required deter- mination of economic soundness under section 53708 of this title applies to a guarantee or com- mitment to guarantee for that portion of a facil- ity or plantship not to be supported with appro- priated Federal funds. Page 458 TITLE 46—SHIPPING § 53731 (d) REASONABLENESS OF RISK.—A guarantee or commitment to guarantee may not be made under this section unless the Secretary of En- ergy, in consultation with the Administrator, certifies to the Administrator that, for the facil- ity or plantship for which the guarantee or com- mitment to guarantee is sought, there is suffi- cient guarantee of performance and payment to lower the risk to the United States Government to a reasonable level. In deciding whether to issue such a certification, the Secretary of En- ergy shall consider— (1) the successful demonstration of the tech- nology to be used in the facility at a scale suf- ficient to establish the likelihood of technical and economic viability in the proposed mar- ket; and (2) the need of the United States to develop new and renewable sources of energy and the benefits to be realized from the construction and successful operation of the facility or plantship. (e) AMOUNT OF OBLIGATION.—The total prin- cipal amount of an obligation guaranteed under this section may not exceed 87.5 percent of— (1) the actual cost or depreciated actual cost of the facility or plantship; or (2) if the facility or plantship is supported with appropriated Federal funds, the total principal amount of that portion of the actual cost or depreciated actual cost for which the obligor is obligated to secure financing under the agreement between the obligor and the De- partment of Energy or other Federal agency. (f) OTEC DEMONSTRATION FUND.— (1) IN GENERAL.—There is a special sub- account, known as the OTEC Demonstration Fund, in the account established under section 53717(b)(1) of this title. (2) USE AND OPERATION.—The OTEC Dem- onstration Fund shall be used for obligation guarantees authorized under this section that do not qualify under subchapter I of this chap- ter. Except as otherwise provided in this sec- tion, the OTEC Demonstration Fund shall be operated in the same manner as the parent ac- count. However— (A) amounts received by the Adminis- trator under subchapter I of this chapter re- lated to guarantees or commitments to guarantee made under this section shall be deposited only in the OTEC Demonstration Fund; and (B) when obligations issued by the Admin- istrator under section 53723 of this title re- lated to the OTEC Demonstration Fund are outstanding, any amount received by the Administrator under subchapter I of this chapter related to ocean thermal energy conversion facilities or plantships shall be deposited in the OTEC Demonstration Fund. (3) TRANSFERS.—Assets in the OTEC Dem- onstration Fund may be transferred to the parent account when and to the extent the balance in the OTEC Demonstration Fund ex- ceeds the total guarantees or commitments to guarantee made under this section then out- standing, plus obligations issued by the Ad- ministrator under section 53723 of this title re- lated to the OTEC Demonstration Fund. (4) LIABILITY.—The parent account is not lia- ble for a guarantee or commitment to guar- antee made under this section. (5) MAXIMUM UNPAID PRINCIPAL AMOUNT.—The total unpaid principal amount of the obliga- tions guaranteed with the backing of the OTEC Demonstration Fund and outstanding at any one time may not exceed $1,650,000,000. (g) ISSUANCE AND PAYMENT OF OBLIGATIONS.— Section 53723 of this title applies to the OTEC Demonstration Fund. However, obligations issued by the Administrator under that section related to the OTEC Demonstration Fund shall be payable only from proceeds realized by the OTEC Demonstration Fund. (h) TAXATION OF INTEREST.—Interest on an ob- ligation guaranteed under this section shall be included in gross income under chapter 1 of the Internal Revenue Code of 1986 (26 U.S.C. ch. 1). (Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1620; Pub. L. 109–163, div. C, title XXXV, § 3507(a)(2)(H), Jan. 6, 2006, 119 Stat. 3555; Pub. L. 110–181, div. C, title XXXV, § 3522(a)(9)(D), (b), Jan. 28, 2008, 122 Stat. 598.) HISTORICAL AND REVISION NOTES Revised Section Source (U.S. Code) Source (Statutes at Large) 53731(a) ...... 46 App.:1279c(a) (1st sentence), (1), (4). June 29, 1936, ch. 858, title XI, § 1110, as added Pub. L. 96–320, title II, § 203(a), Aug. 3, 1980, 94 Stat. 992; Pub. L. 97–31, § 12(136), Aug. 6, 1981, 95 Stat. 166; Pub. L. 97–35, title XVI, § 1606(f), Aug. 13, 1981, 95 Stat. 752; Pub. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095; Pub. L. 104–239, § 11(3), Oct. 8, 1996, 110 Stat. 3134. 53731(b) ...... 46 App.:1279c(a) (2d sentence words before (1)). 53731(c) ...... 46 App.:1279c(a)(2). 53731(d) ...... 46 App.:1279c(b). 53731(e) ...... 46 App.:1279c(a)(3). 53731(f) ....... 46 App.:1279c(c). 53731(g) ...... 46 App.:1279c(d). 53731(h) ...... 46 App.:1279c(e). In subsection (a), the words ‘‘upon such terms as he shall prescribe’’ are omitted as unnecessary because section 53702(a) of the revised title provides the Sec- retary authority to prescribe the terms. The text of 46 App. U.S.C. 1279c(a)(1) is omitted as obsolete. In subsection (f)(1), the words ‘‘account established under section 53717(b)(1) of this title’’ are substituted for ‘‘Federal Ship Financing Fund’’ because the ac- counts under section 53717 replace the Federal Ship Fi- nancing Fund. See the explanation for section 53717. In subsection (f)(2)(B), the word ‘‘conversion’’ is sub- stituted for ‘‘conversional’’ to correct an apparent error. Editorial Notes AMENDMENTS 2008—Pub. L. 110–181, § 3522(b), repealed Pub. L. 109–163, § 3507(a)(2)(H). See 2006 Amendment note below. Pub. L. 110–181, § 3522(a)(9)(D), incorporated the sub- stance of the amendment by Pub. L. 109–163, § 3507(a)(2)(H), into this section by substituting ‘‘Ad- ministrator’’ for ‘‘Secretary’’ wherever appearing, ex- cept when followed by ‘‘of Energy’’. See 2006 Amend- ment note below and section 18(a) of Pub. L. 109–304, set out as a Legislative Purpose and Construction note pre- ceding section 101 of this title. 2006—Pub. L. 109–163, § 3507(a)(2)(H), which directed the amendment of section 1279c of the former Appendix Page 459 TITLE 46—SHIPPING § 53733 to this title from which this section was derived, was repealed by Pub. L. 110–181, § 3522(b). See 2008 Amend- ment notes and Historical and Revision notes above. [§ 53732. Repealed. Pub. L. 116–92, div. C, title XXXV, § 3506(i)(2), Dec. 20, 2019, 133 Stat. 1974] Section, Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1621; Pub. L. 109–163, div. C, title XXXV, § 3507(a)(1)(C), (D), (2)(E), (F), (I), (J), (b)(3)(A), (5), (8), Jan. 6, 2006, 119 Stat. 3555, 3556; Pub. L. 110–181, div. C, title XXXV, § 3522(a)(8), (9)(E), (b), Jan. 28, 2008, 122 Stat. 598, author- ized the Administrator to guarantee an obligation for an eligible export vessel in accordance with certain laws and terms and established an interagency council. § 53733. Shipyard modernization and improve- ment (a) DEFINITIONS.—In this section: (1) ADVANCED SHIPBUILDING TECHNOLOGY.— The term ‘‘advanced shipbuilding technology’’ includes— (A) numerically controlled machine tools, robots, automated process control equip- ment, computerized flexible manufacturing systems, associated computer software, and other technology for improving shipbuilding and related industrial production that ad- vance the state-of-the-art; and (B) novel techniques and processes de- signed to improve shipbuilding quality, pro- ductivity, and practice, and to promote sus- tainable development, including engineering design, quality assurance, concurrent engi- neering, continuous process production tech- nology, energy efficiency, waste minimiza- tion, design for recyclability or parts reuse, inventory management, upgraded worker skills, and communications with customers and suppliers. (2) GENERAL SHIPYARD FACILITY.—The term ‘‘general shipyard facility’’ means— (A) for operations on land— (i) a structure or appurtenance thereto designed for the construction, reconstruc- tion, repair, rehabilitation, or refurbish- ment of a vessel, including a graving dock, building way, ship lift, wharf, or pier crane; (ii) the land necessary for the structure or appurtenance; and (iii) equipment that is for use with the structure or appurtenance and that is nec- essary for performing a function referred to in clause (i); and (B) for operations not on land, a vessel, floating drydock, or barge built in the United States and used for, equipped to be used for, or of a type normally used for, per- forming a function referred to in subpara- graph (A)(i). (3) MODERN SHIPBUILDING TECHNOLOGY.—The term ‘‘modern shipbuilding technology’’ means the best available proven technology, techniques, and processes appropriate to en- hancing the productivity of shipyards. (b) GENERAL AUTHORITY.—Under subchapter I of this chapter, the Administrator may guar- antee or make a commitment to guarantee the payment of the principal of and interest on an obligation for advanced shipbuilding technology and modern shipbuilding technology of a general shipyard facility in the United States. Only a private shipyard is eligible to receive a guar- antee. (c) APPLICABILITY OF OTHER PROVISIONS.—Ex- cept as otherwise provided in this section, a guarantee or commitment to guarantee under this section is subject to all the provisions ap- plicable to a guarantee or commitment to guar- antee under subchapter I of this chapter. (d) AMOUNT OF OBLIGATION.—The principal amount of an obligation guaranteed under this chapter may not exceed 87.5 percent of the ac- tual cost of the advanced shipbuilding tech- nology or modern shipbuilding technology. (e) TRANSFER OF AMOUNTS.—The Adminis- trator may accept the transfer of amounts from a department, agency, or instrumentality of the United States Government and may use those amounts to cover the cost (as defined in section 502 of the Federal Credit Reform Act of 1990 (2 U.S.C. 661a)) of making guarantees or commit- ments to guarantee under this section. (f) BUY AMERICA.—Part I of subtitle A of title IX of division G of the Infrastructure Invest- ment and Jobs Act (Public Law 117–58; 41 U.S.C. 8301 note) shall apply to any funds obligated by the Administrator under this section. (Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1623; Pub. L. 109–163, div. C, title XXXV, § 3507(a)(2)(K), Jan. 6, 2006, 119 Stat. 3555; Pub. L. 110–181, div. C, title XXXV, § 3522(a)(9)(F), (b), Jan. 28, 2008, 122 Stat. 598; Pub. L. 118–159, div. C, title XXXV, § 3536, Dec. 23, 2024, 138 Stat. 2315.) HISTORICAL AND REVISION NOTES Revised Section Source (U.S. Code) Source (Statutes at Large) 53733(a) ...... 46 App.:1279e(d). June 29, 1936, ch. 858, title XI, § 1112, as added Pub. L. 103–160, div. A, title XIII, § 1357(a), Nov. 30, 1993, 107 Stat. 1814. 53733(b) ...... 46 App.:1279e(a). 46 App.:1280a. Pub. L. 103–160, title XIII, § 1358, Nov. 30, 1993, 107 Stat. 1816. 53733(c) ...... 46 App.:1279e(b) (words before ‘‘ex- cept’’). 53733(d) ...... 46 App.:1279e(b) (words beginning with ‘‘except’’). 53733(e) ...... 46 App.:1279e(c). In subsection (a)(2)(A)(i), the words ‘‘(as defined in title 1)’’ are omitted as unnecessary because chapter 1 of the revised title contains a title-wide definition of ‘‘vessel’’ that incorporates the definition in title 1, United States Code. In subsection (b), the words ‘‘and subject to the terms the Secretary shall be prescribe’’ are omitted as unnec- essary because section 53702(a) of the revised title pro- vides the Secretary authority to prescribe the terms. The words ‘‘Only a private shipyard is eligible to re- ceive a guarantee’’ are substituted for 46 App. U.S.C. 1280a to eliminate unnecessary words. Editorial Notes AMENDMENTS 2024—Subsec. (f). Pub. L. 118–159 added subsec. (f). 2008—Pub. L. 110–181, § 3522(b), repealed Pub. L. 109–163, § 3507(a)(2)(K). See 2006 Amendment note below. Subsecs. (b), (e). Pub. L. 110–181, § 3522(a)(9)(F), incor- porated the substance of the amendment by Pub. L.