USC Chapter 571

USC Chapter 571
in effect

46 U.S.C. § 57100 National Defense Reserve Fleet

(a) Fleet Components.—The Secretary of Transportation shall maintain a National Defense Reserve Fleet, including any vessel assigned by the Secretary to the Ready Reserve Force component of the fleet, consisting of those vessels owned or acquired by the United States Government that the Secretary of Transportation, after consultation with the Secretary of the Navy, determines are of value for national defense purposes and that the Secretary of Transportation decides to place and maintain in the fleet. Vessels in the National Defense Reserve Fleet, including vessels loaned to State maritime academies, shall be considered public vessels of the United States. (b) Permitted Uses.—Except as otherwise provided by law, a vessel in the fleet may be used—(1) for an account of an agency of the United States Government in a period during which vessels may be requisitioned under chapter 563; or (2) on the request of the Secretary of Defense, and in accordance with memoranda of agreement between the Secretary of Transportation and the Secretary of Defense, for—(A) testing for readiness and suitability for mission performance; (B) defense sealift functions for which other sealift assets are not reasonably available; and (C) support of the deployment of the United States armed forces in a military contingency, for military contingency operations, or for civil contingency operations upon orders from the National Command Authority; (3) for otherwise lawfully permitted storage or transportation of non-defense-related cargo as directed by the Secretary of Transportation with the concurrence of the Secretary of Defense; (4) for training purposes to the extent authorized by the Secretary of Transportation with the concurrence of the Secretary of Defense; (5) on a reimbursable basis, for charter to the government of any State, locality, or Territory of the United States, except that the prior consent of the Secretary of Defense for such use shall be required with respect to any vessel in the Ready Reserve Force or in the National Defense Reserve Fleet which is maintained in a retention status for the Department of Defense; or (6) for civil contingency operations and Maritime Administration promotional and media events, in accordance with subsection (f). (c) Ready Reserve Force Management.—(1) Minimum requirements.—To ensure the readiness of vessels in the Ready Reserve Force component of the National Defense Reserve Fleet, the Secretary of Transportation shall, at a minimum—(A) maintain all of the vessels in a manner that will enable each vessel to be activated within a period specified in plans for mobilization of the vessels; (B) activate and conduct sea trials on each vessel at a frequency that is considered by the Secretary to be necessary; (C) maintain and adequately crew, as necessary, in an enhanced readiness status those vessels that are scheduled to be activated in 5 or less days; (D) locate those vessels that are scheduled to be activated near embarkation ports specified for those vessels; and (E) notwithstanding section 2109 of title 46, United States Code, have each vessel inspected by the Secretary of the department in which the Coast Guard is operating to determine if the vessel meets the safety standards that would apply under part B of subtitle II of that title if the vessel were not a public vessel. (2) Vessel managers.—(A) Eligibility for contract.—A person, including a shipyard, is eligible for a contract for the management of a vessel in the Ready Reserve Force if the Secretary determines, at a minimum, that the person has—(i) experience in the operation of commercial-type vessels or public vessels owned by the United States Government; and (ii) the management capability necessary to operate, maintain, and activate the vessel at a reasonable price. (B) Contract requirement.—The Secretary of Transportation shall include in each contract for the management of a vessel in the Ready Reserve Force a requirement that each seaman who performs services on any vessel covered by the contract hold the license or merchant mariner’s document that would be required under chapter 71 or chapter 73 of title 46, United States Code, for a seaman performing that service while operating the vessel if the vessel were not a public vessel. (d) Applicability of Limitations on Overhaul, Repair, and Maintenance in Foreign Shipyards.—(1) Application of limitation.—The provisions of section 8680 of title 10 shall apply to vessels specified in subsection (b), and to the Secretary of Transportation with respect to those vessels, in the same manner as those provisions apply to vessels specified in subsection (b) of such section, and to the Secretary of the Navy, respectively. (2) Covered vessels.—Vessels specified in this paragraph are vessels maintained by the Secretary of Transportation in support of the Department of Defense, including any vessel assigned by the Secretary of Transportation to the Ready Reserve Force that is owned by the United States. (e) Exemption From Tank Vessel Construction Standards.—Vessels in the National Defense Reserve Fleet are exempt from the provisions of section 3703a. (f) Use of NDRF Vessels for Civil Contingency Operations and Promotional and Media Events.—With the concurrence of the Secretary of Defense, the Secretary of Transportation may allow the use of vessels in the National Defense Reserve Fleet (NDRF) for civil contingency operations requested by another Federal agency, and for Maritime Administration promotional and media events relating to demonstration projects and research and development supporting the Administration’s mission, if the Secretary of Transportation determines such use is in the best interest of the Government after considering the following factors:(1) Availability.—The availability of NDRF or Ready Reserve Force (RRF) resources and the impact of such use on NDRF and RRF mission support to the defense and homeland security requirements of the Government. (2) Interference.—Whether the use of such of 11 So in original. vessels will support the mission of the Maritime Administration and not significantly interfere with NDRF vessel maintenance, repair, safety, readiness, and resource availability. (3) Safety.—Whether safety precautions will be taken, including indemnification of liability when applicable. (4) Cost.—Whether any costs incurred by such use will be funded as a reimbursable transaction between Federal agencies, as applicable. (5) Other matters.—Any other matters the Maritime Administrator considers appropriate. (g) Vessel Status.—A vessel in the National Defense Reserve Fleet determined by the Maritime Administration to be an obsolete vessel shall remain a vessel within the meaning of that term in section 3 of title 1, United States Code, and subject to the rights and responsibilities of a vessel under admiralty law at least until such time as the vessel is delivered to a dismantling facility or is disposed of otherwise from the National Defense Reserve Fleet.

46 U.S.C. § 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 Transfer Vessels.—All Federal entities are authorized 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 vessels.

46 U.S.C. § 57102 Disposition of vessels

(a) In General.—If the Secretary of Transportation 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.

46 U.S.C. § 57103 Donation of vessels in the National Defense Reserve Fleet

(a) In General.—The Secretary of Transportation may convey the right, title, and interest of the United States Government in any vessel of the National Defense Reserve Fleet that has been identified by the Secretary as an obsolete vessel, if the recipient—(1) is a non-profit organization, a State, or a municipal corporation or political subdivision of a State; (2) agrees not to use, or allow others to use, the vessel for commercial transportation purposes; (3) agrees to make the vessel available to the Government whenever the Secretary indicates that it is needed by the Government; (4) agrees to hold the Government harmless for any claims arising from exposure to asbestos, polychlorinated biphenyls, lead paint, or other hazardous substances after conveyance of the vessel, except for claims arising from use of the vessel by the Government; (5) has a conveyance plan and a business plan that describes the intended use of the vessel, each of which has been submitted to and approved by the Secretary; (6) has provided proof, as determined by the Secretary, of resources sufficient to accomplish the transfer, necessary repairs and modifications, and initiation of the intended use of the vessel; and (7) agrees that when the recipient no longer requires the vessel for use as described in the business plan required under paragraph (5)—(A) the recipient will, at the discretion of the Secretary, reconvey the vessel to the Government in good condition except for ordinary wear and tear; or (B) if the Board of Trustees of the recipient has decided to dissolve the recipient according to the laws of the State in which the recipient is incorporated, then—(i) the recipient shall distribute the vessel, as an asset of the recipient, to a person that has been determined exempt from taxation under section 501(c)(3) of the Internal Revenue Code of 1986 (26 U.S.C. 501(c)(3)), or to the Federal Government or a State or local government for a public purpose; and (ii) the vessel shall be disposed of by a court of competent jurisdiction of the county in which the principal office of the recipient is located, for such purposes as the court shall determine, or to such organizations as the court shall determine are organized exclusively for public purposes. (b) Other Equipment.—At the Secretary’s discretion, additional equipment from other obsolete vessels of the Fleet may be conveyed to assist the recipient with maintenance, repairs, or modifications. (c) Additional Terms.—The Secretary may require any additional terms the Secretary considers appropriate. (d) Delivery of Vessel.—If conveyance is made under this section, the vessel shall be delivered to the recipient at a time and place to be determined by the Secretary. The vessel shall be conveyed in an “as is” condition. (e) Limitations.—If at any time prior to delivery of the vessel to the recipient, the Secretary determines that a different disposition of the vessel would better serve the interests of the Government, the Secretary shall pursue the more favorable disposition of the obsolete vessel and shall not be liable for any damages that may result from an intended recipient’s reliance upon a proposed transfer. (f) Reversion.—The Secretary shall include in any conveyance under this section terms under which all right, title, and interest conveyed by the Secretary shall revert to the Government if the Secretary determines the vessel has been used other than as described in the business plan required under subsection (a)(5).

46 U.S.C. § 57104 Acquisition of vessels from sale of obsolete vessels

(a) In General.—The Secretary of Transportation may acquire suitable documented vessels with amounts in the Vessel Operations Revolving Fund derived from the sale of obsolete vessels in the National Defense Reserve Fleet. (b) Valuation.—The acquired and obsolete vessels shall be valued at their scrap value in domestic or foreign markets as of the date of the acquisition for or sale from the Fleet. However, the value assigned to those vessels shall be determined on the same basis, with consideration given to the fair value of the cost of moving the vessel sold from the Fleet to the place of scrapping. (c) Costs Incident to Lay-Up.—Costs incident to the lay-up of the vessel acquired under this section may be paid from amounts in the Fund. (d) Transfers to Non-Citizens.—A vessel sold from the Fleet under this section may be scrapped in an approved foreign market without obtaining additional separate approval from the Secretary to transfer the vessel to a person not a citizen of the United States.

46 U.S.C. § 57105 Acquisition of vessels for essential services, routes, or lines

(a) In General.—The Secretary of Transportation may acquire a vessel, by purchase or otherwise, if—(1) the Secretary considers the vessel necessary to establish, maintain, improve, or serve as a replacement on an essential service, route, or line in the foreign commerce of the United States, as determined under section 50103 of this title; (2) the vessel was constructed in the United States; and (3) the Secretary of the Navy has certified to the Secretary of Transportation that the vessel is suitable for economical and speedy conversion into a naval or military auxiliary or otherwise suitable for use by the United States Government in time of war or national emergency. (b) Price.—The price paid for the vessel shall be based on a fair and reasonable valuation. However, the price may not exceed by more than 5 percent the cost of the vessel to the owner (excluding any construction-differential subsidy and the cost of national defense features paid by the Secretary of Transportation) plus the actual cost previously expended for reconditioning, less depreciation based on a 25-year life for a dry-cargo or passenger vessel and a 20-year life for a tanker or other liquid bulk carrier vessel. (c) Documentation.—A vessel acquired under this section that is not documented under the laws of the United States at the time of acquisition shall be so documented as soon as practicable.

46 U.S.C. § 57106 Maintenance, improvement, and operation of vessels

(a) In General.—The Secretary of Transportation may maintain, repair, recondition, remodel, and improve vessels owned by the United States Government and in the possession or under the control of the Secretary, to equip them adequately for competition in the foreign trade of the United States. The Secretary may operate such a vessel or charter the vessel on terms and conditions the Secretary considers appropriate to carry out the purposes of this subtitle. (b) Documentation and Restrictions on Operation.—A vessel reconditioned, remodeled, or improved under subsection (a) shall be documented under the laws of the United States and remain so documented for at least 5 years after completion of the reconditioning, remodeling, or improvement. During that period, it shall be operated on voyages that are not exclusively coastwise.

46 U.S.C. § 57107 Vessels for other agencies

(a) In General.—The Secretary of Transportation may construct, reconstruct, repair, equip, and outfit, by contract or otherwise, vessels or parts thereof, for any other department or agency of the United States Government to the extent the other department or agency is authorized by law to do so for its own account. (b) Effect on Contract Authorization.—An obligation incurred or expenditure made by the Secretary under this section does not affect any contract authorization of the Secretary, but instead shall be charged against the existing appropriation or contract authorization of the department or agency. (c) Salvaging Cargoes.—(1) Reimbursable agreements.—The Secretary of Transportation, acting through the Administrator of the Maritime Administration, may enter into reimbursable agreements with other Federal entities to provide legal services to such entities relating to the salvaging of cargoes for which such entities have custody, or control, or for which for such entities have trustee responsibilities from vessels in the custody or control of the Maritime Administration or its predecessor agencies. The Secretary may receive and retain reimbursement from such entities for all costs incurred related to the provision of such services. (2) Amounts received.—Amounts received as reimbursements under this subsection shall be credited to the fund or account that was used to cover the costs incurred by the Secretary or, if the period of availability of obligations for that appropriation has expired, to the appropriation of funds that is currently available to the Secretary for substantially the same purpose. Amounts so credited shall be merged with amounts in such fund or account and shall be available for the same purposes, and subject to the same conditions and limitations, as amounts in such fund or account. (3) Advance payments.—Payments made in advance shall be for any part of the estimated cost as determined by the Secretary of Transportation. Adjustments to the amounts paid in advance shall be made as agreed to by the Secretary of Transportation and the head of the ordering agency or unit based on the actual cost of goods or services provided.

46 U.S.C. § 57108 Consideration of ballast and equipment in determining selling price

The Maritime Administration may not sell a vessel until its ballast and equipment have been inventoried and their value considered in determining the selling price of the vessel.

46 U.S.C. § 57109 Operation of vessels purchased, chartered, or leased from Secretary of Transportation

Unless otherwise authorized by the Secretary of Transportation, a vessel purchased, chartered, or leased from the Secretary may be operated only under a certificate of documentation with a registry or coastwise endorsement. Such a vessel, while employed solely as a merchant vessel, is subject to the laws, regulations, and liabilities governing merchant vessels, whether the United States Government has an interest in the vessel as an owner or holds a mortgage, lien, or other interest.

46 U.S.C. § 57110 Salvage recoveries for subrogated ownership of vessels and cargoes

(a) Salvage Agreements.—The Secretary of Transportation is authorized to enter into marine salvage agreements for the recoveries, sale, and disposal of sunken or damaged vessels, cargoes, or properties owned or insured by or on behalf of the Maritime Administration, the United States Shipping Board, the U.S. Shipping Bureau, the United States Maritime Commission, or the War Shipping Administration. (b) Military Craft.—The Secretary of Transportation shall consult with the Secretary of the military department concerned prior to engaging in or authorizing any activity under subsection (a) that will disturb sunken military craft, as such term is defined in section 1408(3) of the Ronald W. Reagan National Defense Authorization Act for Fiscal Year 2005 (Public Law 108–375; 10 U.S.C. 113 note). (c) Recoveries.—Notwithstanding any other provision of law, the net proceeds from salvage agreements entered into as authorized in subsection (a) shall remain available until expended and be distributed as follows:(1) Fifty percent shall be available to the Administrator of the Maritime Administration for the payment or reimbursement of expenses incurred by or on behalf of State maritime academies or the United States Merchant Marine Academy for facility and training ship maintenance, repair, and modernization, and for the purchase of simulators and fuel. (2) The remainder shall be distributed for maritime heritage preservation to the Department of the Interior for grants as authorized by section 308703 of title 54.

46 U.S.C. § 57111 Definition of obsolete vessel

In this chapter, the term “obsolete vessel” means a vessel that— (1) is or will be in the custody and control of the Maritime Administration for purposes of disposing of the vessel; and (2) has been determined by the Secretary of Transportation to be of insufficient value, with respect to the programs of the Maritime Administration, to warrant—(A) preserving for future use or spare parts harvesting; or (B) retaining in the National Defense Reserve Fleet.

46 U.S.C. § 57112 Requirements for purchasing federally auctioned vessels

(a) In General.—To be eligible to purchase a covered vessel from the Federal Government, a person shall provide proof of—(1) liability insurance for the operator of such covered vessel; (2) financial resources sufficient to cover maintenance costs of such covered vessel; and (3) with respect to a covered vessel requiring documentation under chapter 121, an admiralty bond or stipulation. (b) Covered Vessel Defined.—In this section, the term “covered vessel” means—(1) a government owned vessel disposed of in accordance with this part and section 548 of title 40; (2) a vessel seized or forfeited pursuant to any law, and auctioned by the Federal Government, including a vessel seized or forfeited pursuant to section 7301 or 7302 of the Internal Revenue Code of 1986; or (3) a fishing vessel seized or forfeited pursuant to section 310 of the Magnuson-Stevens Fishery Conservation and Management Act (16 U.S.C. 1860).

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