USC Chapter 503

USC Chapter 503
in effect

46 U.S.C. § 50301 Vessel Operations Revolving Fund

(a) In General.—There is a “Vessel Operations Revolving Fund” for use by the Secretary of Transportation in carrying out duties and powers related to vessel operations, including charter, operation, maintenance, repair, reconditioning, and improvement of merchant vessels under the jurisdiction of the Secretary. The Fund has a working capital of $20,000,000, to remain available until expended. (b) Relationship to Other Laws.—Notwithstanding any other law, rates for shipping services provided under the Fund shall be prescribed by the Secretary and the Fund shall be credited with receipts from vessel operations conducted under the Fund. Sections 1(a) and (c), 3(c), and 4 of the Act of March 24, 1943 (50 U.S.C. 4701(a), (c), 4703(c), 4704), apply to those operations and to seamen employed through general agents as employees of the United States Government. Notwithstanding any other law on the employment of persons by the Government, the seamen may be employed in accordance with customary commercial practices in the maritime industry. (c) Advancements.—With the approval of the Director of the Office of Management and Budget, the Secretary may advance amounts the Secretary considers necessary, but not more than 2 percent of vessel operating expenses, from the Fund to the appropriation “Salaries and Expenses” in carrying out duties and powers related to vessel operations, without regard to the limitations on amounts stated in that appropriation. (d) Transfers.—The unexpended balances of working funds or of allocation accounts established after January 1, 1951, for the activities provided for in subsection (a), and receipts received from those activities, may be transferred to the Fund, which shall be available for the purposes of those working funds or allocation accounts. (e) Limitation.—(1) In general.—Amounts made available to the Secretary for maritime activities by this section or any other law may not be used to pay for a vessel described in paragraph (2) unless the compensation to be paid is computed under section 56303 of this title as that section is interpreted by the Comptroller General. (2) Applicable vessels.—Paragraph (1) applies to a vessel—(A) the title to which is acquired by the Government by requisition or purchase; (B) the use of which is taken by requisition or agreement; or (C) lost while insured by the Government. (3) Nonapplicable vessels.—Paragraph (1) does not apply to a vessel under a construction-differential subsidy contract. (f) Availability for Additional Purposes.—The Fund is available for—(1) necessary expenses incurred in the protection, preservation, maintenance, acquisition, or use of vessels involved in mortgage foreclosure or forfeiture proceedings instituted by the Government, including payment of prior claims and liens, expenses of sale, or other related charges; (2) necessary expenses incident to the redelivery and lay-up, in the United States, of vessels chartered as of June 20, 1956, under agreements not calling for their return to the Government; (3) the activation, repair, and deactivation of merchant vessels chartered for limited emergency purposes during fiscal year 1957 under the jurisdiction of the Secretary; and (4) payment of expenses of custody and maintenance of Government-owned vessels not in the National Defense Reserve Fleet. (g) Expenses and Receipts Related to Charter Operations.—The Fund is available for expenses incurred in activating, repairing, and deactivating merchant vessels chartered under the jurisdiction of the Secretary. Receipts from charter operations of Government-owned vessels under the jurisdiction of the Secretary shall be credited to the Fund.

46 U.S.C. § 50302 Port development

(a) General Requirements.—With the objective of promoting, encouraging, and developing ports and transportation facilities in connection with water commerce over which the Secretary of Transportation has jurisdiction, the Secretary, in cooperation with the Secretary of the Army, shall—(1) investigate territorial regions and zones tributary to ports, taking into consideration the economies of transportation by rail, water, and highway and the natural direction of the flow of commerce; (2) investigate the causes of congestion of commerce at ports and applicable remedies; (3) investigate the subject of water terminals, including the necessary docks, warehouses, and equipment, to devise and suggest the types most appropriate for different locations and for the most expeditious and economical transfer or interchange of passengers or property between water carriers and rail carriers; (4) consult with communities on the appropriate location and plan of construction of wharves, piers, and water terminals; (5) investigate the practicability and advantages of harbor, river, and port improvements in connection with foreign and coastwise trade; and (6) investigate any other matter that may tend to promote and encourage the use by vessels of ports adequate to care for the freight that naturally would pass through those ports. (b) Submission of Findings to Surface Transportation Board.—After an investigation under subsection (a), if the Secretary of Transportation believes that the rates or practices of a rail carrier subject to the jurisdiction of the Surface Transportation Board are detrimental to the objective specified in subsection (a), or that new rates or practices, new or additional port terminal facilities, or affirmative action by a rail carrier is necessary to promote that objective, the Secretary may submit findings to the Board for action the Board considers appropriate under existing law.

46 U.S.C. § 50303 Operating property and extending term of notes

(a) General Authority.—The Secretary of Transportation may—(1) operate or lease docks, wharves, piers, vessels, or real property under the Secretary’s control, 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; and (2) make extensions and accept renewals of—(A) promissory notes and other evidences of indebtedness on property; and (B) mortgages and other contracts securing the property. (b) Terms of Transactions.—A transaction under subsection (a) shall be on terms the Secretary considers necessary to carry out the purposes of this subtitle, but consistent with sound business practice. (c) Availability of Amounts.—Amounts received by the Secretary from a transaction under this section are available for expenditure by the Secretary as provided in this subtitle.

46 U.S.C. § 50304 Sale and transfer of property

(a) Authority To Sell.—The Secretary of Transportation may sell property (other than vessels transferred under section 4 of the Merchant Marine Act, 1920 (ch. 250, 41 Stat. 990)) on terms the Secretary considers appropriate. (b) Transfers From Military to Civilian Control.—When the President considers it in the interest of the United States, the President may transfer to the Secretary of Transportation possession and control of property described in the second paragraph of section 17 of the Merchant Marine Act, 1920 (ch. 250, 41 Stat. 994), as originally enacted, that is possessed and controlled by the Secretary of a military department. (c) Transfers From Civilian to Military Control.—When the President considers it necessary, the President by executive order may transfer to the Secretary of a military department possession and control of property described in section 17 of the Merchant Marine Act, 1920 (ch. 250, 41 Stat. 994), as originally enacted, that is possessed and controlled by the Secretary of Transportation. The President’s order shall state the need for the transfer and the period of the need. When the President decides that the need has ended, the possession and control shall revert to the Secretary of Transportation. The property may not be sold except as provided by law. (d) Vessel Charters to Other Departments.—On a reimbursable or nonreimbursable basis, as determined by the Secretary of Transportation, the Secretary may charter or otherwise make available a vessel under the jurisdiction of the Secretary to any other department, upon the request by the Secretary of the Department that receives the vessel. 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.

46 U.S.C. § 50305 Appointment of trustee or receiver and operation of vessels

(a) Appointment of Trustees and Receivers.—(1) Appointment of secretary.—In a proceeding in a court of the United States in which a trustee or receiver may be appointed for a corporation operating a vessel of United States registry between the United States and a foreign country, on which the United States Government holds a mortgage, the court may appoint the Secretary of Transportation as the sole trustee or receiver (subject to the direction of the court) if—(A) the court finds that the appointment will—(i) inure to the advantage of the estate and the parties in interest; and (ii) tend to carry out the purposes of this subtitle; and (B) the Secretary expressly consents to the appointment. (2) Appointment of other person.—The appointment of another person as trustee or receiver without a hearing becomes effective when ratified by the Secretary, but the Secretary may demand a hearing. (b) Operation of Vessels.—(1) In general.—If the court is unwilling to allow the trustee or receiver to operate the vessel in foreign commerce without financial aid from the Government pending termination of the proceeding, and the Secretary certifies to the court that the continued operation of the vessel is essential to the foreign commerce of the United States and is reasonably calculated to carry out the purposes of this subtitle, the court may allow the Secretary to operate the vessel, either directly or through a managing agent or operator employed by the Secretary. The Secretary must agree to comply with terms imposed by the court sufficient to protect the parties in interest. The Secretary also must agree to pay all operating losses resulting from the operation. The operation shall be for the account of the trustee or receiver. (2) Payment of operating losses and other amounts.—The Secretary has no claim against the corporation, its estate, or its assets for operating losses paid by the Secretary, but the Secretary may pay amounts for depreciation the Secretary considers reasonable and other amounts the court considers just. The payment of operating losses and the other amounts and compliance with terms imposed by the court shall be in satisfaction of any claim against the Secretary resulting from the operation of the vessel. (3) Deemed operation by government.—A vessel operated by the Secretary under this subsection is deemed to be a vessel operated by the United States under chapter 309 of this title.

46 U.S.C. § 50306 Requiring testimony and records in investigations

(a) In General.—In conducting an investigation that the Secretary of Transportation considers necessary and proper to carry out this subtitle, the Secretary may administer oaths, take evidence, and subpoena persons to testify and produce documents relevant to the matter under investigation. Persons may be required to attend or produce documents from any place in the United States at any designated place of hearing. (b) Fees and Mileage.—Persons subpoenaed by the Secretary under subsection (a) shall be paid the same fees and mileage paid to witnesses in the courts of the United States. (c) Enforcement of Subpoenas.—If a person disobeys a subpoena issued under subsection (a), the Secretary may seek an order enforcing the subpoena from the district court of the United States for the district in which the person resides or does business. Process may be served in the judicial district in which the person resides or is found. The court may issue an order to obey the subpoena and punish a refusal to obey as a contempt of court.

46 U.S.C. § 50307 Maritime environmental and technical assistance program

(a) Emerging Marine Technologies and Practices.—(1) In general.—The Secretary of Transportation, acting through the Maritime Administrator, shall engage in or support the study, research, development, assessment, and deployment of emerging marine technologies and practices related to the maritime transportation system through eligible entities. (2) Components.—Under this subsection, the Secretary of Transportation shall identify, study, evaluate, test, demonstrate, improve, or support efforts related to, emerging marine technologies and practices to improve—(A) environmental performance to meet United States Federal and international standards and guidelines, including—(i) reducing air emissions, water emissions, or other ship discharges; (ii) increasing fuel economy or the use of alternative fuels and alternative energy (including the use of shore power); or (iii) controlling aquatic invasive species; or (iv) reducing incidental vessel-generated underwater noise, such as noise from propeller cavitation or hydrodynamic flow; and (B) the efficiency and safety of domestic maritime industries. (3) Coordination.—Coordination with other Federal agencies or with State, local, or Tribal governments, as appropriate, under paragraph (2)(B) may include—(A) activities that are associated with the development or approval of validation and testing regimes; and (B) certification or validation of emerging technologies or practices that demonstrate significant environmental or other benefits to domestic maritime industries. (4) Assistance.—The Secretary of Transportation may accept gifts, or enter into cooperative agreements, contracts, or other agreements with eligible entities to carry out the activities authorized under this subsection. (5) Grants.—Subject to the availability of appropriations, the Maritime Administrator, may establish and carry out a competitive grant program to award grants to eligible entities for projects in the United States consistent with the goals of this subsection to study, evaluate, test, demonstrate, or apply technologies and practices to improve environmental performance. (b) Uses.—The results of activities conducted under this section shall be used to inform—(1) the policy decisions of the United States related to domestic regulations; and (2) the position of the United States on matters before the International Maritime Organization. (c) Vessels.—Activities carried out under a grant or cooperative agreement made under this section may be conducted on public vessels under the control of the Maritime Administration, upon approval of the Maritime Administrator. (d) Eligible Entity Defined.—In this section, the term “eligible entity” means—(1) a private entity, including a nonprofit organization; (2) a public entity, including a Federal, State, regional, or local government entity, including a special district; (3) an Indian Tribe (as defined in section 4 of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 5304)) or a consortium of Indian Tribes; (4) an institution of higher education as defined under section 102 of the Higher Education Act of 1965 (20 U.S.C. 1002); or (5) a partnership or collaboration of entities described in paragraphs (1) through (4). (e) Center for Maritime Innovation.—(1) In general.—The Secretary of Transportation shall, through a cooperative agreement, establish a United States Center for Maritime Innovation (referred to in this subsection as the “Center”) to support the study, research, development, assessment, and deployment of emerging marine technologies and practices related to the maritime transportation system. (2) Selection.—The Center shall be—(A) selected through a competitive process of eligible entities, and if a private entity, a domestic entity; (B) based in the United States with technical expertise in emerging marine technologies and practices related to the maritime transportation system; and (C) located in close proximity to eligible entities with expertise in United States emerging marine technologies and practices, including the use of alternative fuels and the development of both vessel and shoreside infrastructure. (3) Coordination.—The Secretary of Transportation shall coordinate with other agencies critical for science, research, and regulation of emerging marine technologies for the maritime sector, including the Department of Energy, the Environmental Protection Agency, the National Science Foundation, and the Coast Guard, when establishing the Center. (4) Functions.—The Center shall—(A) support eligible entities regarding the development and use of clean energy and necessary infrastructure to support the deployment of clean energy on vessels of the United States; (B) monitor and assess, on an ongoing basis, the current state of knowledge regarding emerging marine technologies in the United States; (C) identify any significant gaps in emerging marine technologies research specific to the United States maritime industry, and seek to fill those gaps; (D) conduct research, development, testing, and evaluation for equipment, technologies, and techniques to address the components under subsection (a)(2); (E) provide—(i) guidance on best available technologies; (ii) technical analysis; (iii) assistance with understanding complex regulatory requirements; and (iv) documentation of best practices in the maritime industry, including training and informational webinars on solutions for the maritime industry; and (F) work with academic and private sector response training centers and Domestic Maritime Workforce Training and Education Centers of Excellence to develop maritime strategies applicable to various segments of the United States maritime industry, including the inland, deep water, and coastal fleets.

46 U.S.C. § 50308 Maritime transportation system emergency relief program

(a) General Authority.—The Maritime Administrator may make grants to, and enter into contracts and agreement with, eligible State and Tribal entities and eligible entities for—(1) the costs of capital projects to protect, repair, reconstruct, or replace equipment and facilities of the United States maritime transportation system that the Maritime Administrator determines is in danger of suffering serious physical damage, or has suffered serious physical damage, as a result of an emergency; and (2) eligible operating costs of United States maritime transportation equipment and facilities in an area directly affected by an emergency during—(A) the one-year period beginning on the date of a declaration of an emergency referred to in subparagraph (A) or (B) of subsection (j)(4); and (B) an additional one-year period beginning one year after the date of an emergency referred to in subparagraph (A) or (B) of subsection (j)(4), if the Maritime Administrator, in consultation with the Administrator of the Federal Emergency Management Agency, determines there is a compelling need arising out of the emergency for which the declaration is made. (b) Allocation.—(1) In general.—The Maritime Administrator shall determine an appropriate method for the equitable allocation and distribution of funds under this section to eligible State and Tribal entities and eligible entities. (2) Priority.—To the extent practicable, in allocating and distributing funds under this section, the Maritime Administrator shall give priority to applications submitted by eligible State or Tribal entities. (c) Applications.—An applicant for assistance under this section shall submit an application for such assistance to the Maritime Administrator at such time, in such manner, and containing such information and assurances as the Maritime Administrator may require. (d) Coordination of Emergency Funds.—(1) Use of funds.—Funds appropriated to carry out this section shall be in addition to any other funds available under this chapter. (2) No effect on other government activity.—The provision of funds under this section shall not affect the ability of any other agency of the Government, including the Federal Emergency Management Agency, or a State agency, a local governmental entity, organization, or person, to provide any other funds otherwise authorized by law. (e) Grant Requirements.—A grant awarded under this section that is made to address an emergency referred to in subsection (j)(4)(B) shall be—(1) subject to the terms and conditions the Maritime Administrator determines are necessary; (2) made only for expenses that are not reimbursed under the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.) or any Federal, State, or local assistance program; and (3) made only for expenses that are not reimbursed under any type of marine insurance. (f) Federal Share of Costs.—The Federal share payable of the costs for which a grant is made under this section shall be 100 percent. (g) Administrative Costs.—Of the amounts available to carry out this section, not more than two percent may be used for administration of this section. (h) Quality Assurance.—The Maritime Administrator shall institute adequate policies, procedures, and internal controls to prevent waste, fraud, abuse, and program mismanagement for the distribution of funds under this section. (i) Reports.—On an annual basis, the Maritime Administrator shall submit to the Committee on Commerce, Science, and Transportation of the Senate and the Committee on Transportation and Infrastructure of the House of Representatives a report on the financial assistance provided under this section during the year covered by the report. Each such report shall include, for such year, a description of such assistance provided and of how such assistance—(1) affected the United States maritime transportation system; (2) mitigated the financial impact of the emergency on the recipient of the assistance; and (3) protected critical infrastructure in the United States. (j) Definitions.—In this section:(1) Eligible state or tribal entity.—The term “eligible State or Tribal entity” means—(A) a port authority; or (B) a vessel owned and operated by a State or Tribal government and facilities associated with the operation of such vessel. (2) Eligible entity.—The term “eligible entity” means a public or private entity that is created or organized in the United States or under the laws of the United States, with significant operations in and a majority of its employees based in the United States, that is engaged in—(A) vessel construction, transportation by water, or support activities for transportation by water with an assigned North American Industry Classification System code beginning with 3366, 483, 4883, or 6113, or in the case of such construction, transportation, or support activities conducted by a fish processing vessel, such an assigned code beginning with 3117; or (B) as determined by the Secretary of Transportation—(i) construction or water transportation related to activities described in subparagraph (A); or (ii) maritime education and training. (3) Eligible operating costs.—The term “eligible operating costs” means costs relating to—(A) emergency response; (B) cleaning; (C) sanitization; (D) janitorial services; (E) staffing; (F) workforce retention; (G) paid leave; (H) procurement and use of protective health equipment, testing, and training for employees and contractors; (I) debt service payments; (J) infrastructure repair projects; (K) fuel; and (L) other maritime transportation system operations, as determined by the Secretary of Transportation; (4) Emergency.—The term “emergency” means a natural disaster affecting a wide area (such as a flood, hurricane, tidal wave, earthquake, severe storm, or landslide) or a catastrophic failure from any external cause, that impacts the United States maritime transportation system and as a result of which—(A) the Governor of a State has declared an emergency and the Maritime Administrator, in consultation with the Administrator of the Federal Emergency Management Agency, has concurred in the declaration; (B) the President has declared a major disaster under section 401 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5170); (C) national emergency declared by the President under the National Emergencies Act (50 U.S.C. 1601 et seq.) is in effect; or (D) a public health emergency declared pursuant to section 319 of the Public Health Service Act (42 U.S.C. 247d) is in effect.

46 U.S.C. § 50309 Securing logistics information data of the United States

(a) In General.—(1) Prohibition.—A covered entity shall not use a covered logistics platform. (2) Eligibility.—A covered entity that is found to use a covered logistics platform shall not be eligible to receive any Federal grant funding as long as the covered entity uses a covered logistics platform. (b) Guidance.—The Secretary of Transportation shall—(1) notify covered entities of the prohibition in subsection (a) as soon as practicable, including notice of funding opportunities for grant programs; and (2) publish on a website of the Department of Transportation, and update regularly, a list of covered logistics platforms subject to the prohibition in subsection (a). (c) Consultation.—In carrying out this section, the Secretary shall consult with—(1) the Secretary of Defense; (2) the Secretary of the Department in which the Coast Guard is operating; (3) the Secretary of State; and (4) the Secretary of Commerce. (d) Waiver.—The Secretary of Transportation, in consultation with the Secretary of Defense, may waive the provisions of this section for a specific contract if the Secretary of Transportation—(1) makes a determination that such waiver is vital to the national security of the United States; and (2) submits to Congress a report justifying the use of such waiver and the importance of such waiver to the national security of the United States. (e) Definitions.—In this section:(1) Covered logistics platform.—The term “covered logistics platform” means a data exchange platform that utilizes or provides, in part or whole—(A) the national transportation logistics public information platform (commonly referred to as “LOGINK”) provided by the People’s Republic of China, or departments, ministries, centers, agencies, or instrumentalities of the Government of the People’s Republic of China; (B) any national transportation logistics information platform provided by or sponsored by the People’s Republic of China, or a controlled commercial entity; or (C) a similar system provided by Chinese state-affiliated entities. (2) Covered entity.—The term “covered entity” means—(A) a port authority that receives funding after the date of the enactment of this section under—(i) the port infrastructure development program under section 54301; (ii) the maritime transportation system emergency relief program under section 50308; or (iii) any Federal grant funding program; (B) any marine terminal operator located on property owned by a port authority as described in subparagraph (A) or at a seaport described in subparagraph (D); (C) any agency or instrumentality of the United States Government or that of a State; or (D) a commercial strategic seaport within the National Port Readiness Network.

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