Division C — Department of Energy National Security Authorizations and Other Authorizations

H.R. 2500 · 116th Congress · Sep 10, 2019 · Lineage

C Department of Energy National Security Authorizations and Other Authorizations

XXXI Department of Energy National Security Programs

A National Security Programs and Authorizations

Sec. 3101 National Nuclear Security Administration

(a)

Authorization of appropriations— Funds are hereby authorized to be appropriated to the Department of Energy for fiscal year 2020 for the activities of the National Nuclear Security Administration in carrying out programs as specified in the funding table in section 4701.

(b)

Authorization of new plant projects— From funds referred to in subsection (a) that are available for carrying out plant projects, the Secretary of Energy may carry out new plant projects for the National Nuclear Security Administration as follows:

Sec. 3102 Defense environmental cleanup

Funds are hereby authorized to be appropriated to the Department of Energy for fiscal year 2020 for defense environmental cleanup activities in carrying out programs as specified in the funding table in section 4701.

Sec. 3103 Other defense activities

Funds are hereby authorized to be appropriated to the Department of Energy for fiscal year 2020 for other defense activities in carrying out programs as specified in the funding table in section 4701.

Sec. 3104 Nuclear energy

Funds are hereby authorized to be appropriated to the Department of Energy for fiscal year 2020 for nuclear energy as specified in the funding table in section 4701.

B Program Authorizations, Restrictions, Limitations, and Other Matters

Sec. 3111 Personnel levels of the Office of the Administrator for Nuclear Security

(a)

Personnel levels—

(1)

Increase— Subsection (a) of section 3241A of the National Nuclear Security Administration Act (50 U.S.C. 2441a) is amended by striking “1,690” both places it appears and inserting “1,890”.

(2)

Technical amendments— Such subsection is further amended—

(A)

in paragraph (1), by striking “By October 1, 2015, the” and inserting “The”; and

(B)

in paragraph (2), by striking “2016” and inserting “2020”.

(b)

Reports on service support contracts— Subsection (f) of such section is amended—

(1)

in the matter preceding paragraph (1), by striking “as of the date of the report” and inserting “for the most recent fiscal year for which data is available”; and

(2)

by striking paragraph (5) and inserting the following new paragraphs:

“(5) With respect to each contract identified under paragraph (2)—

“(A) identification of each appropriations account that supports the contract; and

“(B) the amount obligated under the contract during the fiscal year, listed by each such account.

“(6) With respect to each appropriations account identified under paragraph (5)(A), the total amount obligated for contracts identified under paragraph (2).”

Sec. 3112 Office of Cost Estimating and Program Evaluation

(a)

Sense of Congress— It is the sense of Congress that Congress is concerned that the staffing levels of the Office of Cost Estimating and Program Evaluation of the National Nuclear Security Administration have been persistently below the authorized level.

(b)

Reporting— Section 3221(b)(1) of the National Nuclear Security Administration Act (50 U.S.C. 2411(b)(1)) is amended by adding at the end the following new sentence: “The Director shall report directly to the Administrator.”.

(c)

Briefing— Not later than 180 days after the date of the enactment of this Act, the Administrator for Nuclear Security shall provide to the congressional defense committees a briefing on the plan of the Administrator to fully staff the Office of Cost Estimating and Program Evaluation of the National Nuclear Security Administration pursuant to section 3221(f) of the National Nuclear Security Administration Act (50 U.S.C. 2411(f)).

Sec. 3113 Clarification of certain Stockpile Responsiveness Program objectives

Section 4220(c) of the Atomic Energy Defense Act (50 U.S.C. 2538b(c)) is amended—

(1)

in paragraph (3), by striking “capabilities required, including prototypes” and inserting “capabilities as required, such as through the use of prototypes”; and

(2)

in paragraph (6)—

(A)

by striking “in consultation with the Director of National Intelligence” and inserting “in coordination with the Director of National Intelligence”; and

(B)

by inserting “if needed to meet intelligence requirements” after “foreign countries”.

Sec. 3114 Modification to plutonium pit production capacity

(a)

Finding and sense of Congress—

(1)

Finding— Congress finds that a recent study by the Institute of Defense Analyses notes, “a key milestone will be achieving the Plutonium Sustainment Program goal of 30 pits per year at Los Alamos National Laboratory”.

(2)

Sense of Congress— It is the sense of Congress that the National Nuclear Security Administration should prioritize achieving production of 30 pits per year at Los Alamos National Laboratory and ensure that efforts to design and construct a second site do not divert resources, including personnel and funding, from Los Alamos National Laboratory.

(b)

2027 requirement— Section 4219 of the Atomic Energy Defense Act (50 U.S.C. 2538a) is amended—

(1)

in subsection (a)—

(A)

in paragraph (3), by inserting “and” after the semicolon;

(B)

in paragraph (4), by striking “; and” and inserting a period; and

(C)

by striking paragraph (5);

(2)

by striking subsection (b); and

(3)

by redesignating subsections (c) and (d) as subsections (b) and (c), respectively.

(c)

Conforming amendment— Subsection (b) of such section, as redesignated by subsection (b), is amended by striking “(or, if the authority under subsection (b) is exercised, 2029)”.

Sec. 3115 Annual certification of shipments to Waste Isolation Pilot Plant

Section 3115(a) of the National Defense Authorization Act for Fiscal Year 2017 (Public Law 114–328; 130 Stat. 2759), as amended by section 3137 of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 (Public Law 115–232; 132 Stat. 2303), is further amended, in the matter preceding paragraph (1), by striking “three-year period” and inserting “10-year period”.

Sec. 3116 Repeal of limitation on availability of funds for acceleration of nuclear weapons dismantlement

Section 3125 of the National Defense Authorization Act for Fiscal Year 2017 (Public Law 114–328; 130 Stat. 2766) is repealed.

Sec. 3117 Elimination of limitation on availability of funds relating to submission of annual reports on unfunded priorities

Section 4716 of the Atomic Energy Defense Act (50 U.S.C. 2756) is amended—

(1)

by striking subsection (c); and

(2)

by redesignating subsection (d) as subsection (c).

Sec. 3118 Program for research and development of advanced naval nuclear fuel system based on low-enriched uranium

(a)

Establishment— Not later than 60 days after the date of the enactment of this Act, the Administrator for Nuclear Security shall establish a program to assess the viability of using low-enriched uranium in naval nuclear propulsion reactors, including such reactors located on aircraft carriers and submarines, that meet the requirements of the Navy.

(b)

Activities— In carrying out the program under subsection (a), the Administrator shall carry out activities to develop an advanced naval nuclear fuel system based on low-enriched uranium, including activities relating to—

(1)

down-blending of high-enriched uranium into low-enriched uranium;

(2)

manufacturing of candidate advanced low-enriched uranium fuels;

(3)

irradiation tests and post-irradiation examination of these fuels; and

(4)

modification or procurement of equipment and infrastructure relating to such activities.

(c)

Report— Not later than 120 days after the date of the enactment of this Act, the Administrator shall submit to the congressional defense committees a plan outlining the activities the Administrator will carry out under the program established under subsection (a), including the funding requirements associated with developing a low-enriched uranium fuel.

Sec. 3119 Replacement of W78 warhead

(a)

Analysis of Alternatives—

(1)

In general— The Administrator for Nuclear Security shall conduct an analysis of alternatives with respect to replacing the W78 warhead. Such analysis shall describe the technical risks and costs for each option to replace the W78 warhead.

(2)

Review— The Director for Cost Estimating and Program Evaluation of the National Nuclear Security Administration shall review the analysis of alternatives under paragraph (1).

(3)

Report— Not later than 150 days after the date of the enactment of this Act, the Administrator shall submit to the congressional defense committees a report on the replacement of the W78 warhead. Such report shall include the analysis of alternatives under paragraph (1) and the review under paragraph (2).

(b)

Limitation— Of the funds authorized to be appropriated by this Act or otherwise made available for fiscal year 2020 for the National Nuclear Security Administration for the modernization of the W78 warhead, not more than 75 percent may be obligated or expended until the date on which the report is submitted under subsection (a)(3).

(c)

Independent study—

(1)

In general— The Administrator shall seek to enter into an arrangement with the private scientific advisory group known as JASON to conduct a study of the plan of the Administrator to replace the W78 warhead. Such study shall include—

(A)

an assessment of the risks to certification; and

(B)

the need for planned upgrades to such warhead.

(2)

Submission— Not later than 150 days after the date of the enactment of this Act, the Administrator shall submit to the congressional defense committees the study under paragraph (1), without change.

Sec. 3120 National Laboratory Jobs Access Program

(a)

In general— Not later than 180 days after the date of enactment of this Act, the Secretary may establish a program known as the “Department of Energy National Lab Jobs ACCESS Program”, under which the Secretary may award, on a competitive basis, 5-year grants to eligible entities described in subsection (c) for the Federal share of the costs of technical, skills-based preapprenticeship and apprenticeship programs that provide employer-driven or recognized postsecondary credentials during the grant period.

(b)

Requirements— A program funded by a grant awarded under this section shall develop and deliver customized and competency-based training that—

(1)

leads to recognized postsecondary credentials for secondary school and postsecondary students;

(2)

is focused on skills and qualifications needed, as determined by the Department of Energy in consultation with the national laboratories, to meet the immediate and on-going needs of traditional and emerging technician positions (including machinists and cyber security technicians) at the National Laboratories and covered facilities of the National Nuclear Security Administration;

(3)

creates an apprenticeship or preapprenticeship program in consultation with a National Laboratory or covered facility of the National Nuclear Security Administration; and

(4)

creates an apprenticeship or preapprenticeship program registered with and approved by the Secretary of Labor or a State Apprenticeship Agency.

(c)

Eligible Entities— An entity that is eligible to receive a grant under this section shall be a workforce intermediary or an eligible sponsor of a preapprenticeship or an apprenticeship program that—

(1)

demonstrates experience in implementing and providing career planning and career pathways towards apprenticeship or preapprenticeship programs;

(2)

(A)

has a relationship with a National Laboratory or covered facility of the National Nuclear Security Administration;

(B)

has knowledge of technician workforce needs of such laboratory or facility and the associated security requirements of such laboratory or facility; and

(C)

is eligible to enter into an agreement with such laboratory or facility that would be paid for in part or entirely from grant funds received under this section;

(3)

demonstrates the ability to recruit and support individuals who plan to work in relevant technician positions upon the successful completion of such programs;

(4)

provides students who complete such programs with a recognized postsecondary credential, such as a journeyman craft license or an industry-recognized certification;

(5)

uses a customized training curriculum that is specifically aligned with employers, utilizing workplace learning advisors and on-the-job training to the greatest extent possible; and

(6)

demonstrates successful outcomes connecting graduates of such programs to careers relevant to such programs.

(d)

Applications— An eligible entity seeking a grant under this section shall submit to the Secretary an application at such time, in such manner, and containing such information as the Secretary may require.

(e)

Priority— In selecting eligible entities to receive grants under this section, the Secretary shall prioritize an eligible entity that—

(1)

is a member of an industry or sector partnership;

(2)

provides the training described in subsection (b)—

(A)

at an institution of higher education (such as a community college) that includes basic science, technology, and mathematics education in the curriculum;

(B)

through an apprenticeship program that was registered with the Department of Labor or a State Apprenticeship Agency before the date on which the eligible entity applies for the grant under subsection (d); or

(C)

with respect to a preapprenticeship program, at a local educational agency, a secondary school, a provider of adult education, an area career and technical education school, or an appropriate community facility;

(3)

works with the Secretary of Defense, Secretary of Veteran Affairs, or veterans organizations to transition members of the Armed Forces and veterans to apprenticeship or preapprenticeship programs in a relevant sector;

(4)

plans to use the grant to carry out the training described in subsection (b) with an entity that receives State funding or is operated by a State agency; and

(5)

plans to use the grant to carry out the training described in subsection (b) for—

(A)

young adults ages 16 to 29, inclusive; or

(B)

individuals with barriers to employment.

(f)

Additional consideration— In making grants under this section, the Secretary shall consider regional diversity.

(g)

Limitation on applications— An eligible entity may not submit, either individually or as part of a joint application, more than 1 application for a grant under this section during any 1 fiscal year.

(h)

Limitations on amount of grant— The amount of a grant provided under this section for any 24-month period of the 5-year grant period shall not exceed $500,000.

(i)

Non-Federal share— The non-Federal share of the cost of a customized training program carried out using a grant under this section shall be not less than 25 percent of the total cost of the program.

(j)

Technical assistance— The Secretary may provide technical assistance to eligible entities described in subsection (c) to leverage the existing job training and education programs of the Department of Labor and other relevant programs at appropriate Federal agencies.

(k)

Report—

(1)

In general— Not less than once every 2 years, the Secretary of Labor shall submit to Congress, and make publicly available on the website of the Department of Labor, a report on the program established under this section, including—

(A)

a description of—

(i)

any entity that receives a grant under this section;

(ii)

any activity carried out using the grants under this section; and

(iii)

best practices used to leverage the investment of the Federal Government under this section; and

(B)

an assessment of the results achieved by the program established under this section, including the rate of employment for participants after completing a job training and education program carried out using a grant under this section.

(2)

Provision of information— The Secretary of Energy shall provide such information as necessary to the Secretary of Labor for purposes of the report under paragraph (1).

(3)

Performance reports— Not later than one year after the start of a new apprenticeship or preapprenticeship program established under this section, and annually thereafter, the entity carrying out the programs shall submit to the Secretary of Labor a report on the effectiveness of the program based on the accountability measures described in clauses (i) and (ii) of section 116(b)(2)(A) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3141(b)(2)(A)).

(l)

Definitions— In this section:

(1)

ESEA terms— The terms local educational agency and secondary school have the meanings given the terms in section 8101 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7801).

(2)

WIOA terms— The terms career planning, community-based organization, customized training, economic development agency, individual with a barrier to employment, industry or sector partnership, on-the-job training, recognized postsecondary credential, and workplace learning advisor have the meanings given such terms in section 3 of the Workforce Innovation and Opportunity Act (29 U.S.C. 3102).

(3)

Apprenticeship— The term apprenticeship means an apprenticeship registered under the Act of August 16, 1937 (commonly known as the “National Apprenticeship Act”; 50 Stat. 664, chapter 663; 29 U.S.C. 50 et seq.).

(4)

Area career and technical education school— The term area career and technical education school has the meaning given the term in section 3 of the Carl D. Perkins Career and Technical Education Act of 2006 (20 U.S.C. 2302).

(5)

Community college— The term community college has the meaning given the term junior or community college in section 312(f) of the Higher Education Act of 1965 (20 U.S.C. 1058(f)).

(6)

Covered facility of the National Nuclear Security Administration— The term covered facility of the National Nuclear Security Administration means a national security laboratory or a nuclear weapons production facility as such terms are defined in section 4002 of the Atomic Energy Defense Act (50 U.S.C. 2501).

(7)

Eligible Sponsor— The term eligible sponsor means a public organization or an organization described in section 501(c) of the Internal Revenue Code of 1986 and exempt from tax under section 501(a) of that Code, that—

(A)

with respect to an apprenticeship program, administers such program through a partnership that may include—

(i)

an industry or sector partnership;

(ii)

an employer or industry association;

(iii)

a labor-management organization;

(iv)

a local workforce development board or State workforce development board;

(v)

a 2- or 4-year institution of higher education that offers an educational program leading to an associate’s or bachelor’s degree in conjunction with a certificate of completion of apprenticeship;

(vi)

the Armed Forces (including the National Guard and Reserves);

(vii)

a community-based organization; or

(viii)

an economic development agency; and

(B)

with respect to a preapprenticeship program, is a local educational agency, a secondary school, an area career and technical education school, a provider of adult education, a State workforce development board, a local workforce development board, or a community-based organization, that administers such program with any required coordination and necessary approvals from the Secretary of Labor or a State department of labor.

(8)

Institution of higher education— The term institution of higher education has the meaning given the term in section 101 of the Higher Education Act of 1965 (20 U.S.C. 1001).

(9)

Local workforce development board— The term local workforce development board has the meaning given the term local board in section 3 of the Workforce Innovation and Opportunity Act (29 U.S.C. 3102).

(10)

National Laboratory— The term National Laboratory has the meaning given the term in section 2 of the Energy Policy Act of 2005 (42 U.S.C. 15801).

(11)

Provider of adult education— The term provider of adult education has the meaning given that term in section 203 of the Adult Education and Literacy Act (29 U.S.C. 3272).

(12)

Related instruction— The term related instruction means an organized and systematic form of instruction designed to provide an apprentice with the knowledge of the technical subjects related to the occupation of the apprentice.

(13)

Secretary— The term Secretary means the Secretary of Energy, in consultation with the Secretary of Labor, except as otherwise specified in this Act.

(14)

State workforce development board— The term State workforce development board has the meaning given the term State board in section 3 of the Workforce Innovation and Opportunity Act (29 U.S.C. 3102).

(15)

Workforce intermediary— The term workforce intermediary—

(A)

means an organization that proactively addresses workforce needs using a dual customer approach, which considers the needs of both employees and employers; and

(B)

may include a community organization, an employer organization, a community college, a temporary staffing agency, a State workforce development board, a local workforce development board, or a labor organization.

Sec. 3121 Independent review of plans and capabilities for nuclear verification, detection, and monitoring of nuclear weapons and fissile material

(a)

Plan— Not later than 30 days after the date of the enactment of this Act, the Secretary of Energy, in consultation with the Secretary of Defense, shall seek to enter into a contract with the National Academies of Sciences to conduct an independent review and assessment of a plan for nuclear detection and verification and monitoring of nuclear weapons and fissile material.

(b)

Elements— The review under subsection (a) shall include the following:

(1)

Recommendations for a national research infrastructure for enhanced nuclear verification, detection, and monitoring, with respect to policy, operations, and research, development, testing, and evaluation, including—

(A)

an evaluation of current national research enterprise for such nuclear verification, detection, and monitoring;

(B)

a plan for maximizing a national research enterprise to prevent the proliferation of nuclear weapons and fissile material;

(C)

integration of roles, responsibilities, and planning for such verification, detection, and monitoring within the Federal Government; and

(D)

a mechanism for the Department of Energy to consult across the intelligence community when setting the research agenda to ensure that goals and priorities are aligned.

(2)

Recommendations for international engagement for building cooperation and transparency, including bilateral and multilateral efforts, to improve inspections, detection, and monitoring, and to create incentives for cooperation and transparency.

(3)

Recommendations for—

(A)

research and development efforts to improve monitoring, detection, and in-field inspection and analysis capabilities, including persistent surveillance, remote monitoring, and rapid analysis of large data sets, including open-source data; and

(B)

measures to coordinate technical and operational requirements early in the process.

(4)

Recommendations for improved coordination between departments and agencies of the Federal Government and the military departments, national laboratories, commercial industry, and academia.

(5)

Recommendations for leveraging commercial capability, such as remote sensing.

(c)

Submission and briefing— Not later than 270 days after the date of the enactment of this Act, the Secretary of Energy shall—

(1)

submit to the congressional defense committees a report containing the review under subsection (a); and

(2)

provide to such committees a briefing on such review.

(d)

Form— The review under subsection (a) and the report under subsection (c) shall be submitted in unclassified form, but may include a classified annex, consistent with the protection of intelligence sources and methods.

Sec. 3122 Funding for low-enriched uranium research and development

(a)

Increase— Notwithstanding the amounts set forth in the funding tables in division D, the amount authorized to be appropriated by this title for defense nuclear nonproliferation, as specified in the corresponding funding table in section 4701, for low-enriched uranium research and development is hereby increased by $20,000,000.

(b)

Offset— Notwithstanding the amounts set forth in the funding tables in division D, the amount authorized to be appropriated by this title for atomic energy defense activities, as specified in the corresponding funding table in section 4701, for Federal salaries and expenses is hereby reduced by $20,000,000.

Sec. 3123 Availability of amounts for denuclearization of Democratic People's Republic of North Korea

(a)

In general— The amount authorized to be appropriated by section 3101 and available as specified in the funding table in section 4701 for defense nuclear nonproliferation is hereby increased by $10,000,000, with the amount of the increase to be available to develop and prepare to implement a comprehensive, long-term monitoring and verification program for activities related to the phased denuclearization of the Democratic People's Republic of North Korea, in coordination with relevant international partners and organizations.

(b)

Offset— The amount authorized to be appropriated by this title and available as specified in the funding table in section 4701 for weapons activities for stockpile services, production support is hereby reduced by $10,000,000.

Sec. 3124 Accounting practices of National Nuclear Security Administration facilities

(a)

Sense of Congress— It is the sense of Congress that the Secretary of Energy should ensure that each laboratory operating contractor or plant or site manager of National Nuclear Security Administration sites applies generally accepted and consistent accounting best practices for laboratory, plant, or site directed research and development.

(b)

Report required— Not later than 210 days after the date of the enactment of this Act, the Administrator for Nuclear Security shall submit to the congressional defense committees a report that assesses the costs, benefits, risks, and other effects of the pilot program under section 3119 of the National Defense Authorization Act for Fiscal Year 2017 (Public Law 114–328; 50 U.S.C. 2791 note).

Sec. 3125 Funding for inertial confinement fusion ignition and high yield program

(a)

Increase— Notwithstanding the amounts set forth in the funding tables in division D, the amount authorized to be appropriated by this title for Weapons Activities, as specified in the corresponding funding table in section 4701, for the Inertial Confinement Fusion Ignition and High Yield program, facility operations and target production, is hereby increased by $5,000,000.

(b)

Offset— Notwithstanding the amounts set forth in the funding tables in division D, the amount authorized to be appropriated by this title for Weapons Activities, as specified in the corresponding funding table in section 4701, for Stockpile Services, management, technology, and production, is hereby reduced by $5,000,000.

Sec. 3126 Improvements to Energy Employees Occupational Illness Compensation Program Act of 2000

(a)

Office of Ombudsman— Section 3686 of the Energy Employees Occupational Illness Compensation Program Act of 2000 (42 U.S.C. 7385s–15) is amended—

(1)

in subsection (c)—

(A)

by redesignating paragraphs (2) and (3) as paragraphs (3) and (4), respectively; and

(B)

by inserting after paragraph (1) the following new paragraph:

“(2) To provide guidance and assistance to claimants.”

(2)

in subsection (h), by striking “2019” and inserting “2020”.

(b)

Advisory Board on Toxic Substances and Worker Health— Section 3687 of the Energy Employees Occupational Illness Compensation Program Act of 2000 (42 U.S.C. 7385s–16) is amended—

(1)

in subsection (b)(1)—

(A)

in subparagraph (C), by striking “; and” and inserting a semicolon;

(B)

in subparagraph (D), by striking “; and” and inserting a semicolon; and

(C)

by adding after subparagraph (D) the following:

“(E) the claims adjudication process generally, including review of procedure manual changes prior to incorporation into the manual and claims for medical benefits; and

“(F) such other matters as the Secretary considers appropriate; and”

(2)

in subsection (g)—

(A)

by striking “The Secretary of Energy shall” and inserting “The Secretary of Energy and the Secretary of Labor shall each”; and

(B)

by adding at the end the following new sentence: “The Secretary of Labor shall make available to the Board the program’s medical director, toxicologist, industrial hygienist and program’s support contractors as requested by the Board.”;

(3)

by redesignating subsections (h) and (i) as subsections (i) and (j), respectively; and

(4)

by inserting after subsection (g) the following:

“(h) Response to recommendations—Not later than 60 days after submission to the Secretary of Labor of the Board’s recommendations, the Secretary shall respond to the Board in writing, and post on the public Internet website of the Department of Labor, a response to the recommendations that—

“(1) includes a statement of whether the Secretary accepts or rejects the Board’s recommendations;

“(2) if the Secretary accepts the board’s recommendations, describes the timeline for when those recommendations will be implemented; and

“(3) if the Secretary does not accept the recommendations, describes the reasons the Secretary does not agree and provide all scientific research to the Board supporting that decision.”

Sec. 3127 Civil penalties for violations of certain whistleblower protections

(a)

In general— Section 234A of the Atomic Energy Act of 1954 (42 U.S.C. 2282a) is amended—

(1)

in the heading, by inserting “and Whistleblower” after “Safety”;

(2)

in subsection a.—

(A)

by inserting “, or who violates any applicable rule, regulation or order related to whistleblower protections,” before “shall be subject to a civil penalty”; and

(B)

by adding at the end the following new sentence: “The Secretary of Energy may carry out this section with respect to the National Nuclear Security Administration by acting through the Administrator for Nuclear Security.”; and

(3)

by adding at the end the following new subsection:

“e. In this section, the term “whistleblower protections” means the protections for contractors from reprisals pursuant to section 4712 of title 41, United States Code, section 211 of the Energy Reorganization Act of 1974 (42 U.S.C. 5851), or other provisions of Federal law affording such protections.”

Sec. 3128 Limitation relating to reclassification of high-level waste

(a)

Limitation— None of the funds authorized to be appropriated by this Act or otherwise made available for fiscal year 2020 for the Department of Energy may be obligated or expended by the Secretary of Energy to apply the interpretation of high-level radioactive waste described in the notice published by the Secretary titled “Supplemental Notice Concerning U.S. Department of Energy Interpretation of High-Level Radioactive Waste” (84 Fed. Reg. 26835), or successor notice, with respect to such waste located in the State of Washington.

(b)

Rule of construction— Nothing in subsection (a) may be construed as an affirmation of the interpretation of high-level radioactive waste of the Secretary of Energy described in such subsection.

XXXII Defense Nuclear Facilities Safety Board

Sec. 3201 Authorization

There are authorized to be appropriated for fiscal year 2020, $29,450,000 for the operation of the Defense Nuclear Facilities Safety Board under chapter 21 of the Atomic Energy Act of 1954 (42 U.S.C. 2286 et seq.).

Sec. 3202 Improvements to Defense Nuclear Facilities Safety Board

(a)

Staff—

(1)

Sense of Congress— It is the sense of Congress that the Defense Nuclear Facilities Safety Board is not adequately staffed, particularly given the ongoing increase in defense nuclear activities during the decade following the date of the enactment of this Act.

(2)

Executive Director of Operations—

(A)

Establishment of position— Subsection (b) of section 313 of the Atomic Energy Act of 1954 (42 U.S.C. 2286b) is amended by adding at the end the following new paragraph:

“(3)

“(A) The Board shall have an Executive Director of Operations who shall be appointed under section 311(c)(7).

“(B) The Executive Director of Operations shall report to the Chairman.

“(C) The Executive Director of Operations shall be the senior employee of the Board responsible for—

“(i) general administration and technical matters;

“(ii) ensuring that the members of the Board are fully and currently informed with respect to matters for which the members are responsible; and

“(iii) the functions delegated by the Chairman pursuant to section 311(c)(3)(B).”

(B)

Delegation of functions— Paragraph (3) of section 311(c) of such Act (42 U.S.C. 2286(c)) is amended—

(i)

by striking “The Chairman” and inserting “(A) The Chairman”; and

(ii)

by adding at the end the following new subparagraph:

“(B) In carrying out subparagraph (A), the Chairman shall delegate to the Executive Director of Operations established under section 313(b)(3) the following functions:

“(i) Administrative functions of the Board.

“(ii) Appointment and supervision of employees of the Board not specified under paragraph (7).

“(iii) Distribution of business among the employees and administrative units and offices of the Board.

“(iv) Preparation of—

“(I) proposals for the reorganization of the administrative units or offices of the Board;

“(II) the budget estimate for the Board; and

“(III) the proposed distribution of funds according to purposes approved by the Board.”

(3)

Appointment and removal powers— Paragraph (7) of such section 311(c) is amended to read as follows:

“(7)

“(A) The Chairman, subject to the approval of the Board, shall appoint the senior employees described in subparagraph (C). Any member of the Board may propose to the Chairman an individual to be so appointed.

“(B) The Chairman, subject to the approval of the Board, may remove a senior employee described in subparagraph (C). Any member of the Board may propose to the Chairman an individual to be so removed.

“(C) The senior employees described in this subparagraph are the following senior employees of the Board:

“(i) The Executive Director of Operations established under section 313(b)(3).

“(ii) The general counsel.”

(4)

Full-time equivalent personnel levels— Section 313(b)(1)(A) of such Act (42 U.S.C. 2286b(b)(1)(A)) is amended by striking “but not ” and all that follows through the semicolon and inserting “but not fewer than the equivalent of 110 full-time employees and not more than the equivalent of 130 full-time employees;”.

(b)

Public health and safety— Section 312(a) of such Act (42 U.S.C. 2286a(a)) is amended by inserting before the period at the end the following: “, including with respect to the health and safety of employees and contractors at such facilities”.

(c)

Access to facilities, personnel, and information— Section 314 of such Act (42 U.S.C. 2286c) is amended—

(1)

in subsection (a)—

(A)

by striking “The Secretary of Energy” and inserting “Except as specifically provided by this section, the Secretary of Energy”;

(B)

by striking “ready access” both places it appears and inserting “prompt and unfettered access”; and

(C)

by adding at the end the following new sentence: “The access provided to facilities, personnel, and information under this subsection shall be provided without regard to the hazard or risk category assigned to a facility by the Secretary.”; and

(2)

by striking subsection (b) and inserting the following new subsections:

“(b) Authority of Secretary deny information—The Secretary may only deny access to information pursuant to subsection (a)—

“(1) to any person who—

“(A) has not been granted an appropriate security clearance or access authorization by the Secretary; or

“(B) does not need such access in connection with the duties of such person; or

“(2) if such denial is authorized by a provision of Federal law that specifically limits the right of the Board to access such information.

“(c) Application of nondisclosure protections by Board—The Board may not publicly disclose information provided under this section if such information is otherwise protected from disclosure by law, including deliberative process information.”

XXXIV Naval Petroleum Reserves

Sec. 3401 Authorization of appropriations

(a)

Amount— There are hereby authorized to be appropriated to the Secretary of Energy $14,000,000 for fiscal year 2020 for the purpose of carrying out activities under chapter 869 of title 10, United States Code, relating to the naval petroleum reserves.

(b)

Period of availability— Funds appropriated pursuant to the authorization of appropriations in subsection (a) shall remain available until expended.

XXXV Maritime Matters

A Maritime Administration

Sec. 3501 Authorization of the Maritime Administration

There are authorized to be appropriated to the Department of Transportation for fiscal year 2020, to be available without fiscal year limitation if so provided in appropriations Acts, for programs associated with maintaining the United States merchant marine, the following amounts:

(1)

For expenses necessary for operations of the United States Merchant Marine Academy, $81,944,000, of which—

(A)

$77,944,000 shall be for Academy operations; and

(B)

$4,000,000 shall remain available until expended for capital asset management at the Academy.

(2)

For expenses necessary to support the State maritime academies, $38,480,000, of which—

(A)

$2,400,000 shall remain available until September 30, 2020, for the Student Incentive Program;

(B)

$30,080,000 shall remain available until expended for maintenance and repair of State maritime academy training vessels; and

(C)

$6,000,000 shall remain available until expended for direct payments to such academies.

(3)

For expenses necessary to support the National Security Multi-Mission Vessel Program, $300,000,000, which shall remain available until expended.

(4)

For expenses necessary to support Maritime Administration operations and programs, $53,273,000.

(5)

For expenses necessary to dispose of vessels in the National Defense Reserve Fleet, $5,000,000, which shall remain available until expended.

(6)

For expenses necessary to maintain and preserve a United States flag merchant marine to serve the national security needs of the United States under chapter 531 of title 46, United States Code, $300,000,000.

(7)

For expenses necessary for the loan guarantee program authorized under chapter 537 of title 46, United States Code, $33,000,000, of which—

(A)

$30,000,000 may be used for the cost (as defined in section 502(5) of the Federal Credit Reform Act of 1990 (2 U.S.C. 661a(5))) of loan guarantees under the program; and

(B)

$3,000,000 may be used for administrative expenses relating to loan guarantee commitments under the program.

(8)

For expenses necessary to provide small shipyards and maritime communities grants under section 54101 of title 46, United States Code, $35,000,000.

Sec. 3502 Reauthorization of Maritime Security Program

(a)

Award of operating agreements— Section 53103 of title 46, United States Code, is amended by striking “2025” each place it appears and inserting “2035”.

(b)

Effectiveness of operating agreements— Section 53104(a) of title 46, United States Code, is amended by striking “2025” and inserting “2035”.

(c)

Payments— Section 53106(a)(1) of title 46, United States Code, is amended—

(1)

in subparagraph (B), by striking “and”;

(2)

in subparagraph (C), by striking “$3,700,000 for each of fiscal years 2022, 2023, 2024, and 2025.” and inserting “$5,300,000 for each of fiscal years 2022, 2023, 2024, and 2025; and”; and

(3)

by adding at the end the following new subparagraphs:

“(D) $5,800,000 for each of fiscal years 2026, 2027, and 2028;

“(E) $6,300,000 for each of fiscal years 2029, 2030, and 2031; and

“(F) $6,800,000 for each of fiscal years 2032, 2033, 2034, and 2035.”

(d)

Authorization of appropriations— Section 53111 of title 46, United States Code, is amended—

(1)

in paragraph (2), by striking “and”;

(2)

in paragraph (3), by striking “$222,000,000 for each fiscal year thereafter through fiscal year 2025.” and inserting “$318,000,000 for each of fiscal years 2022, 2023, 2024, and 2025;”; and

(3)

by adding at the end the following new paragraphs:

“(4) $348,000,000 for each of fiscal years 2026, 2027, and 2028;

“(5) $378,000,000 for each of fiscal years 2029, 2030, and 2031; and

“(6) $408,000,000 for each of fiscal years 2032, 2033, 2034, and 2035.”

Sec. 3503 Maritime Occupational Safety and Health Advisory Committee

Section 7 of the Occupational Safety and Health Act of 1970 (29 U.S.C. 656) is amended by adding at the end the following:

“(d) There is established a Maritime Occupational Safety and Health Advisory Committee, which shall be a continuing body and shall provide advice to the Secretary in formulating maritime industry standards and regarding matters pertaining to the administration of this Act related to the maritime industry. The composition of such advisory committee shall be consistent with the advisory committees established under subsection (b). A member of the advisory committee who is otherwise qualified may continue to serve until a successor is appointed. The Secretary may promulgate or amend regulations as necessary to implement this subsection.”

Sec. 3504 Military to mariner program

(a)

Credentialing support— Not later than one year after the date of the enactment of this Act, the Secretary of Defense and the Secretary of the Department in which the Coast Guard operates, in coordination with one another and with the United States Committee on the Marine Transportation System, and in consultation with the Merchant Marine Personnel Advisory Committee, shall identify all training and experience within each of the Armed Forces that may qualify for merchant mariner credentialing, and submit a list of all identified training and experience to the United States Coast Guard National Maritime Center for a determination of whether such training and experience counts for credentialing purposes.

(b)

Review of applicable service— The United States Coast Guard Commandant shall make a determination of whether training and experience counts for credentialing purposes, as described in subsection (a), not later than 6 months after the date on which the United States Coast Guard National Maritime Center receives a submission under subsection (a) identifying a training or experience and requesting such a determination.

(c)

Fees and services— The Secretary of Defense and the Secretary of the Department in which the Coast Guard operates, with respect to the applicable services in their respective departments, shall—

(1)

take all necessary and appropriate actions to provide for the waiver of fees through the National Maritime Center license evaluation, issuance, and examination for members of the Armed Forces on active duty, if a waiver is authorized and appropriate, and, if a waiver is not granted, take all necessary and appropriate actions to provide for the payment of fees for members of the Armed Forces on active duty by the applicable service to the fullest extent permitted by law;

(2)

direct the Armed Forces to take all necessary and appropriate actions to provide for Transportation Worker Identification Credential cards for members of the Armed Forces on active duty pursuing or possessing a mariner credential, such as implementation of an equal exchange process for active duty service members at no or minimal cost;

(3)

ensure that members of the Armed Forces who are to be discharged or released from active duty and who request certification or verification of sea service be provided such certification or verification no later than one month after discharge or release;

(4)

ensure the Armed Forces have developed, or continue to operate, as appropriate, the online resource known as Credentialing Opportunities On-Line to support separating members of the Armed Forces who are seeking information and assistance on merchant mariner credentialing; and

(5)

not later than one year after the date of enactment of this section, take all necessary and appropriate actions to review and implement service-related medical certifications to merchant mariner credential requirements.

(d)

Advancing military to mariner within the employer agencies—

(1)

In General— The Secretary of Defense and the Secretary of the Department in which the Coast Guard operates shall have direct hiring authority to employ separated members of the Armed Forces with valid merchant mariner licenses or sea service experience in support of United States national maritime needs, including the Army Corps of Engineers.

(2)

Appointments of retired members of the Armed Forces— Except in the case of positions in the Senior Executive Service, the requirements of section 3326(b) of title 5, United States Code, shall not apply with respect to the hiring of a separated member of the Armed Forces under paragraph (1).

(e)

Separated member of the Armed Forces— In this section, the term separated member of the Armed Forces means an individual who—

(1)

is retiring or is retired as a member of the Armed Forces;

(2)

is voluntarily separating or voluntarily separated from the Armed Forces at the end of enlistment or service obligation; or

(3)

is administratively separating or has administratively separated from the Armed Forces with an honorable or general discharge characterization.

B Tanker Security Fleet

Sec. 3511 Tanker Security Fleet

(a)

In general— Subtitle VII of title 46, United States Code, is amended by adding at the end the following:

“707 Tanker Security Fleet

“70701. Definitions

“In this chapter:

“(1) Foreign commerce—The term “foreign commerce” means—

“(A) commerce or trade between the United States, its territories or possessions, or the District of Columbia, and a foreign country; and

“(B) commerce or trade between foreign countries including trade between foreign ports in accordance with normal commercial bulk shipping practices in such a manner as will permit vessels of the United States freely to compete with foreign-flag liquid bulk carrying vessels in their operation or in competing charters, subject to rules and regulations promulgated by the Secretary of Transportation pursuant to this chapter or subtitle.

“(2) Participating Fleet vessel—The term “participating Fleet vessel” means any tank vessel covered by an operating agreement under this chapter on or after January 1, 2021.

“(3) Person—The term “person” includes corporations, partnerships, and associations existing under, or authorized by, laws of the United States, or any State, territory, district, or possession thereof, or any foreign country.

“(4) Tank vessel—The term “tank vessel” has the meaning that term has under section 2101 of this title.

“(5) United states citizen trust—The term “United States citizen trust”—

“(A) means a trust for which—

“(i) each of the trustees is a citizen of the United States; and

“(ii) the application for documentation of the vessel under chapter 121 of this title includes an affidavit of each trustee stating that the trustee is not aware of any reason involving a beneficiary of the trust that is not a citizen of the United States, or involving any other person who is not a citizen of the United States, as a result of which the beneficiary or other person would hold more than 25 percent of the aggregate power to influence or limit the exercise of the authority of the trustee with respect to matters involving any ownership or operation of the vessel that may adversely affect the interests of the United States;

“(B) does not include a trust for which any person that is not a citizen of the United States has authority to direct, or participate in directing, a trustee for a trust in matters involving any ownership or operation of the vessel that may adversely affect the interests of the United States or in removing a trustee without cause, either directly or indirectly through the control of another person, unless the trust instrument provides that persons who are not citizens of the United States may not hold more than 25 percent of the aggregate authority to so direct or remove a trustee; and

“(C) may include a trust for which a person who is not a citizen of the United States holds more than 25 percent of the beneficial interest in the trust.

“70702. Establishment of the Tanker Security Fleet

“(a) In general—The Secretary of Transportation, in consultation with the Secretary of Defense, shall establish a fleet of active, commercially viable, militarily useful, privately owned product tankers to meet national defense and other security requirements and maintain a United States presence in international commercial shipping. The fleet shall consist of privately owned vessels of the United States for which there are in effect operating agreements under this chapter, and shall be known as the “Tanker Security Fleet” (hereinafter in this chapter referred to as the “Fleet”).

“(b) Vessel Eligibility—A vessel is eligible to be included in the Fleet if the vessel—

“(1) meets the requirements under paragraph (1), (2), (3), or (4) of subsection (c);

“(2) is operated (or in the case of a vessel to be constructed, will be operated) in providing transportation in United States foreign commerce;

“(3) is self-propelled;

“(4) is not more than ten years of age on the date the vessel is first included in the Fleet and not more than 25 years of age at any time during which the vessel is included in the Fleet;

“(5) is determined by the Secretary of Defense to be suitable for use by the United States for national defense or military purposes in time of war or national emergency;

“(6) is commercially viable, as determined by the Secretary of Transportation; and

“(7) is—

“(A) a vessel of the United States; or

“(B) not a vessel of the United States, but—

“(i) the owner of the vessel has demonstrated an intent to have the vessel documented under chapter 121 of this title if it is included in the Fleet; and

“(ii) at the time an operating agreement is entered into under this chapter, the vessel is eligible for documentation under chapter 121 of this title.

“(c) Requirements regarding citizenship of owners, charterers, and operators

“(1) Vessels owned and operated by section 50501 citizens—A vessel meets the requirements of this paragraph if, during the period of an operating agreement under this chapter that applies to the vessel, the vessel will be owned and operated by one or more persons that are citizens of the United States under section 50501 of this title.

“(2) Vessels owned by a section 50501 citizen, or United States citizen trust, and chartered to a documentation citizen—A vessel meets the requirements of this paragraph if—

“(A) during the period of an operating agreement under this chapter that applies to the vessel, the vessel will be—

“(i) owned by a person that is a citizen of the United States under section 50501 of this title or that is a United States citizen trust; and

“(ii) demise chartered to a person—

“(I) that is eligible to document the vessel under chapter 121 of this title;

“(II) the chairman of the board of directors, chief executive officer, and a majority of the members of the board of directors of which are citizens of the United States under section 50501 of this title, and are appointed and subjected to removal only upon approval by the Secretary; and

“(III) that certifies to the Secretary that there are no treaties, statutes, regulations, or other laws that would prohibit the owner or operator for the vessel from performing its obligations under an operating agreement under this chapter;

“(B) in the case of a vessel that will be demise chartered to a person that is owned or controlled by another person that is not a citizen of the United States under section 50501 of this title, the other person enters into an agreement with the Secretary not to influence the operation of the vessel in a manner that will adversely affect the interests of the United States; and

“(C) the Secretary of Transportation and the Secretary of Defense notify the Committee on Armed Services and the Committee on Commerce, Science, and Transportation of the Senate and the Committee on Armed Services and the Committee on Transportation and Infrastructure of the House of Representatives that the Secretaries concur with the certification required under subparagraph (A)(ii)(III), and have reviewed and agree that there are no legal, operational, or other impediments that would prohibit the owner or operator for the vessel from performing its obligations under an operating agreement under this chapter.

“(3) Vessels owned and operated by a defense owner or operator—A vessel meets the requirements of this paragraph if—

“(A) during the period of an operating agreement under this chapter that applies to the vessel, the vessel will be owned and operated by a person that—

“(i) is eligible to document a vessel under chapter 121 of this title;

“(ii) operates or manages other vessels of the United States for the Secretary of Defense, or charters other vessels to the Secretary of Defense;

“(iii) has entered into a special security agreement for the purpose of this paragraph with the Secretary of Defense;

“(iv) makes the certification described in paragraph (2)(A)(ii)(III); and

“(v) in the case of a vessel described in paragraph (2)(B), enters into an agreement referred to in that subparagraph; and

“(B) the Secretary of Transportation and the Secretary of Defense notify the Committee on Armed Services and the Committee on Commerce, Science, and Transportation of the Senate and the Committee on Armed Services and the Committee on Transportation and Infrastructure of the House of Representatives that they concur with the certification required under subparagraph (A)(iv), and have reviewed and agree that there are no legal, operational, or other impediments that would prohibit the owner or operator for the vessel from performing its obligations under an operating agreement under this chapter.

“(4) Vessels owned by documentation citizens and chartered to section 50501 citizens—A vessel meets the requirements of this paragraph if, during the period of an operating agreement under this chapter, the vessel will be—

“(A) owned by a person who is eligible to document a vessel under chapter 121 of this title; and

“(B) demise chartered to a person that is a citizen of the United States under section 50501 of this title.

“(d) Request by secretary of defense—The Secretary of Defense shall request that the Commandant of the Coast Guard issue any waiver under section 501 of this title that the Secretary of Defense determines is necessary for purposes of this chapter.

“(e) Vessel standards

“(1) Certificate of Inspection—A vessel used to provide oceangoing transportation that the Commandant of the Coast Guard determines meets the criteria of subsection (b) but which, on the date of enactment of this section, is not documented under chapter 121 of this title, shall be eligible for a certificate of inspection if the Commandant of the Coast Guard determines that—

“(A) the vessel is classed by and designed in accordance with the rules of the American Bureau of Shipping, or another classification society accepted by the Commandant of the Coast Guard;

“(B) the vessel complies with applicable international agreements and associated guidelines, as determined by the country in which the vessel was documented immediately before becoming documented under chapter 121 of this title; and

“(C) the country has not been identified by the Commandant of the Coast Guard as inadequately enforcing international vessel regulations as to that vessel.

“(2) Reliance on classification society

“(A) In general—The Commandant of the Coast Guard may rely on a certification from the American Bureau of Shipping or, subject to subparagraph (B), another classification society accepted by the Commandant of the Coast Guard, to establish that a vessel is in compliance with the requirements of paragraph (1).

“(B) Foreign classification society—The Secretary may accept certification from a foreign classification society 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 reciprocal basis to the American Bureau of Shipping; and

“(ii) if the foreign classification society has offices and maintains records in the United States.

“70703. Vessel standards

“(a) Certificate of inspection—A vessel used to provide transportation service as a common carrier that the Secretary of Transportation determines meets the criteria of section 53102(b) of this title, which on the date of enactment of this section is not a documented vessel (as that term is defined in section 106 of this title), shall be eligible for a certificate of inspection if the Secretary determines that—

“(1) the vessel is classed by and designed in accordance with the rules of the American Bureau of Shipping or another classification society accepted by the Secretary;

“(2) the vessel complies with applicable international agreements and associated guidelines, as determined by the country in which the vessel was documented immediately before becoming a documented vessel (as defined in that section); and

“(3) that country has not been identified by the Secretary as inadequately enforcing international vessel regulations as to that vessel.

“(b) Continued Eligibility for Certificate—Subsection (a) does not apply to any vessel that has failed to comply with the applicable international agreements and association guidelines referred to in subsection (a)(2).

“(c) Reliance on Classification Society

“(1) In general—The Secretary may rely on a certification from the American Bureau of Shipping or, subject to paragraph (2), another classification society accepted by the Secretary, to establish that a vessel is in compliance with the requirements of subsections (a) and (b).

“(2) Foreign classification society—The Secretary may accept certification from a foreign classification society under paragraph (1) only—

“(A) to the extent that the government of the foreign country in which the society is headquartered provides access on a reciprocal basis to the American Bureau of Shipping; and

“(B) if the foreign classification society has offices and maintains records in the United States.

“70704. Award of operating agreements

“(a) In general—The Secretary of Transportation shall require, as a condition of including any vessel in the Fleet, that the owner or operator of the vessel enter into an operating agreement with the Secretary under this section.

“(b) Procedure for applications

“(1) Participating Fleet vessels

“(A) In General—The Secretary of Transportation shall accept an application for an operating agreement for a participating Fleet vessel under the priority under paragraph (2) only from a person that has authority to enter into an operating agreement under this chapter.

“(B) Vessel under demise charter—For purposes of subparagraph (A), in the case of a vessel that is subject to a demise charter that terminates by its own terms on September 30, 2035 (without giving effect to any extension provided therein for completion of a voyage or to effect the actual redelivery of the vessel), or that is terminable at the will of the owner of the vessel after such date, only the owner of the vessel shall be treated as having the authority referred to in subparagraph (A).

“(C) Vessel owned by a united states citizen trust—For purposes of subparagraph (B), in the case of a vessel owned by a United States citizen trust, the term “owner of the vessel” includes the beneficial owner of the vessel with respect to such trust.

“(2) Discretion within priority—The Secretary of Transportation—

“(A) may award operating agreements under paragraph (1) according to such priorities as the Secretary considers appropriate; and

“(B) shall award operating agreements within any such priority—

“(i) in accordance with operational requirements specified by the Secretary of Defense;

“(ii) in the case of operating agreements awarded under subparagraph (B) of paragraph (1), according to applicants’ records of owning and operating vessels; and

“(iii) subject to approval of the Secretary of Defense.

“(c) Limitation—For any fiscal year, the Secretary may not award operating agreements under this chapter that require payments under section 70707 of this title for more than 10 vessels.

“70705. Effectiveness of operating agreements

“(a) In general—Subject to the availability of appropriations for such purpose, the Secretary of Transportation may enter into an operating agreement under this chapter for fiscal year 2021 and any subsequent fiscal year. Each such agreement may be renewed annually for up to seven years.

“(b) Vessels under charter to the United States—The owner or operator of a vessel under charter to the United States is eligible to receive payments pursuant to any operating agreement that covers such vessel.

“(c) Termination

“(1) Termination by Secretary for lack of owner or operator compliance—If the owner or operator with respect to an operating agreement materially fails to comply with the terms of the agreement—

“(A) the Secretary shall notify the owner or operator and provide a reasonable opportunity to comply with the operating agreement; and

“(B) the Secretary shall terminate the operating agreement if the owner or operator fails to achieve such compliance.

“(2) Termination by owner or operator

“(A) In general—If an owner or operator provides notice of the intent to terminate an operating agreement under this chapter on a date specified by not later than 60 days prior to such date, such agreement shall terminate on the date specified by the owner or operator.

“(B) Replacement—An operating agreement with respect to a vessel shall terminate on the date that is three years after the date on which the vessel begins operating under the agreement, if—

“(i) the owner or operator notifies the Secretary, by not later than two years after the date the vessel begins operating under the agreement, that the owner or operator intends to terminate the agreement under this subparagraph; and

“(ii) the Secretary of Transportation, in coordination with the Secretary of Defense, determines that—

“(I) an application for an operating agreement under this chapter has been received for a replacement vessel that is acceptable to the Secretaries; and

“(II) during the period of an operating agreement under this chapter that applies to the replacement vessel, the replacement vessel will be—

“(aa) owned and operated by one or more persons that are citizens of the United States under section 50501 of this title; or

“(bb) owned by a person who is eligible to document the vessel under chapter 121 of this title, and operated by a person that is a citizen of the United States under section 50501 of this title.

“(d) Nonrenewal for lack of funds

“(1) In general—If sufficient funds are not made available to carry out an operating agreement under this chapter—

“(A) the Secretary of Transportation shall submit to the Committee on Armed Services and the Committee on Commerce, Science, and Transportation of the Senate and the Committee on Armed Services and the Committee on Transportation and Infrastructure of the House of Representatives notice that such agreement shall be not renewed effective on the 60th day of the fiscal year, unless such funds are made available before such day; and

“(B) effective on the 60th day of such fiscal year, terminate such agreement and provide notice of such termination to the owner or operator of the vessel covered by the agreement.

“(2) Release of vessels from obligations—If an operating agreement for a vessel under this chapter is not renewed pursuant to paragraph (1), then the owner or operator of the vessel is released from any further obligation under the operating agreement as of the date of such termination or nonrenewal.

“(3) Foreign transfer and registration—The owner or operator of a vessel covered by an operating agreement under this chapter may transfer and register such vessel under a foreign registry that is acceptable to the Secretary and the Secretary of Defense, notwithstanding section 70701 of this title.

“(4) Requisition—If chapter 563 of this title is applicable to a vessel after registration, then the vessel is available to be requisitioned by the Secretary pursuant to chapter 563 of this title.

“70706. Obligations and rights under operating agreements

“(a) Operation of Vessel—An operating agreement under this chapter shall require that, during the period the vessel covered by the agreement is operating under the agreement the vessel shall—

“(1) be operated in the United States foreign commerce, mixed United States foreign commerce and domestic trade allowed under a registry endorsement issued under section 12111 of this title, foreign-to-foreign commerce, or under a charter to the United States;

“(2) not be operated in the coastwise trade except as described in paragraph (1); and

“(3) be documented under chapter 121 of this title.

“(b) Operating agreement is an obligation of the United States Government—An operating agreement under this chapter constitutes a contractual obligation of the United States Government to pay the amounts provided for in the agreement to the extent of actual appropriations.

“(c) Obligations of owner or operator

“(1) In general—The owner or operator of a vessel covered by an operating agreement under this chapter shall agree, as a condition of such agreement, to remain obligated to carry out the requirements described in paragraph (2) until the termination date specified in the agreement, even in the case of early termination of the agreement under section 70705(c) of this title. This subsection shall not apply in the case of an operating agreement terminated for lack of funds under section 70705(d) of this title.

“(2) Requirements—The requirements described in this paragraph are the following:

“(A) To continue the documentation of the vessel under chapter 121 of this title.

“(B) To be bound by the requirements of section 70708 of this title.

“(C) That all terms and conditions of an emergency preparedness agreement entered into under section 70708 of this title shall remain in effect, except that the terms of such emergency preparedness agreement may be modified by the mutual consent of the owner or operator, the Secretary and the Secretary of Defense as provided in such section.

“(d) Transfer of operating agreements—The owner or operator of a vessel covered by an operating agreement under this chapter may transfer that agreement (including all rights and obligations under the agreement) to any person that is eligible to enter into that operating agreement under this chapter, if the transfer is approved by the Secretary of Transportation and the Secretary of Defense.

“(e) Replacement of vessels covered by agreements—A owner or operator may replace a vessel covered by an operating agreement with another vessel that is eligible to be included in the Fleet under section 70702(b), if the Secretary of Transportation, in coordination with the Secretary of Defense, approves the replacement of the vessel. In selecting a replacement vessel, the owner or operator shall give primary consideration to—

“(1) the commercial viability of the vessel;

“(2) the utility of the vessel with respect to the operating requirements of the owner or operator; and

“(3) ensuring that the commercial and military utility of any replacement vessel is not less than that of the initial vessel.

“70707. Payments

“(a) Annual payment—Subject to the availability of appropriations for such purpose and the other provisions of this chapter, the Secretary shall pay to the owner or operator of a vessel covered by an operating agreement under this chapter an amount equal to $6,000,000 for each vessel covered by the agreement for each fiscal year that the vessel is covered by the agreement. Such amount shall be paid in equal monthly installments on the last day of each month. The amount payable under this subsection may not be reduced except as provided by this section.

“(b) Certification required for payment—As a condition of receiving payment under this section for a fiscal year for a vessel, the owner or operator for the vessel shall certify, in accordance with regulations issued by the Secretary, that the vessel has been and will be operated in accordance with section 70706 of this title 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 chapter for a vessel with respect to any days for which the vessel is—

“(1) not operated or maintained in accordance with an operating agreement under this chapter; or

“(2) more than 25 years of age.

“(d) Reductions in payments—With respect to payments under this chapter for a vessel covered by an operating agreement, the Secretary—

“(1) except as provided in paragraph (2), may not reduce such a payment for the operation of the vessel to carry military or other preference cargoes under section 55302(a), 55304, 55305, or 55314 of this title, section 2631 of title 10, or any other cargo preference law of the United States;

“(2) may not make such a payment for any day that the vessel is engaged in transporting more than 7,500 tons of civilian bulk preference cargoes pursuant to section 55302(a), 55305, or 55314 of this title, section 90l(a) or (b) of the Merchant Marine Act, 1936 (46 App. U.S.C. 124l(a), 1241(b), or 1241(f)), that is bulk cargo; and

“(3) shall make a pro rata reduction for each day less than 320 in a fiscal year that the vessel is not operated in accordance with section 70706 of this title.

“(e) Limitations regarding noncontiguous domestic trade

“(1) In general—No owner or operator shall receive payments pursuant to this chapter during a period in which it participates in noncontiguous domestic trade.

“(2) Limitation on application—Paragraph (1) shall not apply to a owner or operator that is a citizen of the United States within the meaning of section 50501 of this title, applying the 75 percent ownership requirement of that section.

“(3) Participates in a noncontiguous trade defined—In this subsection the term “participates in a noncontiguous domestic trade” means directly or indirectly owns, charters, or operates a vessel engaged in transportation of cargo between a point in the contiguous 48 States and a point in Alaska, Hawaii, or Puerto Rico, other than a point in Alaska north of the Arctic Circle.

“70708. National security requirements

“(a) Emergency preparedness agreement required—The Secretary of Transportation, in coordination with the Secretary of Defense, shall establish an emergency preparedness program under this section under which the owner or operator of a vessel covered by an operating agreement under this chapter shall agree, as a condition of the operating agreement, to enter into an emergency preparedness agreement with the Secretaries. Each such emergency preparedness agreement shall be entered into as promptly as practicable after the owner or operator has entered into the operating agreement.

“(b) Terms of agreement—The terms of an agreement under this section—

“(1) shall provide that upon request by the Secretary of Defense during time of war or national emergency, or whenever determined by the Secretary of Defense to be necessary for national security or contingency operation (as that term is defined in section 101 of title 10), the owner or operator shall make available commercial transportation resources (including services) described in subsection (d) to the Secretary of Defense;

“(2) shall include such additional terms as may be established by the Secretary of Transportation and the Secretary of Defense; and

“(3) shall allow for the modification or addition of terms upon agreement by the Secretary of Transportation and the owner or operator and the approval by the Secretary of Defense.

“(c) Participation after expiration of operating agreement—Except as provided by section 70706 of this title, the Secretary may not require, through an emergency preparedness agreement or an operating agreement, that an owner or operator of a vessel covered by an operating agreement continue to participate in an emergency preparedness agreement after the operating agreement has expired according to its terms or is otherwise no longer in effect. After the expiration of an emergency preparedness agreement, a owner or operator may voluntarily continue to participate in the agreement.

“(d) Resources made available—The commercial transportation resources to be made available under an emergency preparedness agreement shall include vessels or capacity in vessels, terminal facilities, management services, and other related services, or any agreed portion of such nonvessel resources for activation as the Secretary of Defense may determine to be necessary, seeking to minimize disruption of the owner or operator’s service to commercial customers.

“(e) Compensation

“(1) In general—Each emergency preparedness agreement under this section shall provide that the Secretary of Defense shall pay fair and reasonable compensation for all commercial transportation resources provided pursuant to this section.

“(2) Specific requirements—Compensation under this subsection—

“(A) shall not be less than the owner or operator’s commercial market charges for like transportation resources;

“(B) shall be fair and reasonable considering all circumstances;

“(C) shall be provided from the time that a vessel or resource is required by the Secretary of Defense until the time it is redelivered to the owner or operator and is available to reenter commercial service; and

“(D) shall be in addition to and shall not in any way reflect amounts payable under section 70707 of this title.

“(f) Temporary replacement vessels—Notwithstanding section 55302(a), 55304, 55305, or 55314 of this title, section 2631 of title 10, or any other cargo preference law of the United States—

“(1) an owner or operator may operate or employ in foreign commerce a foreign-flag vessel or foreign-flag vessel capacity as a temporary replacement for a vessel of the United States or vessel of the United States capacity that is activated by the Secretary of Defense under an emergency preparedness agreement or a primary Department of Defense sealift readiness program; and

“(2) such replacement vessel or vessel capacity shall be eligible during the replacement period to transport preference cargoes subject to sections 55302(a), 55304, 55305, and 55314 of this title and section 2631 of title 10 to the same extent as the eligibility of the vessel or vessel capacity replaced.

“(g) Redelivery and Liability of the United States for Damages

“(1) In general—All commercial transportation resources activated under an emergency preparedness agreement shall, upon termination of the period of activation, be redelivered to the owner or operator in the same good order and condition as when received, less ordinary wear and tear, or the Secretary of Defense shall fully compensate the owner or operator for any necessary repair or replacement.

“(2) Limitation on United States liability—Except as may be expressly agreed in an emergency preparedness agreement, or as otherwise provided by law, the Government shall not be liable for disruption of an owner or operator’s commercial business or other consequential damages to an owner or operator arising from the activation of commercial transportation resources under an emergency preparedness agreement.

“70709. Regulatory relief

“(a) Operation in foreign commerce—An owner or operator for a vessel included in an operating agreement under this chapter may operate the vessel in the foreign commerce of the United States without restriction.

“(b) Other restrictions—The restrictions of section 55305(a) of this title concerning the building, rebuilding, or documentation of a vessel in a foreign country shall not apply to a vessel for any day the operator of the vessel is receiving payments for the operation of that vessel under an operating agreement under this chapter.

“(c) Telecommunications equipment—The telecommunications and other electronic equipment on an existing vessel that is redocumented under the laws of the United States for operation under an operating agreement under this chapter shall be deemed to satisfy all Federal Communications Commission equipment certification requirements, if—

“(1) such equipment complies with all applicable international agreements and associated guidelines as determined by the country in which the vessel was documented immediately before becoming documented under the laws of the United States;

“(2) that country has not been identified by the Secretary as inadequately enforcing international regulations as to that vessel; and

“(3) at the end of its useful life, such equipment shall be replaced with equipment that meets Federal Communications Commission equipment certification standards.

“70710. Special rule regarding age of participating Fleet vessels

“Any age restriction under section 70702(b)(4) of this title shall not apply to a participating Fleet vessel during the 30-month period beginning on the date the vessel begins operating under an operating agreement under this chapter, if the Secretary of Transportation determines that the owner or operator of the vessel has entered into an arrangement to obtain and operate under the operating agreement for the participating Fleet vessel a replacement vessel that, upon commencement of such operation, will be eligible to be included in the Fleet under section 70702(b) of this title.

“70711. Regulations

“The Secretary of Transportation and the Secretary of Defense may each prescribe rules as necessary to carry out their respective responsibilities under this chapter.

“70712. Authorization of appropriations

“There is authorized to be appropriated for payments under section 70707, $60,000,000 for each of fiscal years 2021 through 2035, to remain available until expended.

“70713. Acquisition of Fleet vessels

“(a) In general—Upon replacement of a Fleet Vessel under an operating agreement under this chapter, and subject to agreement by the owner or operator of the vessel, the Secretary of Transportation is authorized, subject to the concurrence of the Secretary of Defense, to acquire the vessel being replaced for inclusion in the National Defense Reserve Fleet.

“(b) Requirements—To be eligible for acquisition by the Secretary of Transportation under this section a vessel shall—

“(1) have been covered by an operating agreement under this chapter for not less than three years; and

“(2) meet recapitalization requirements for the Ready Reserve Force.

“(c) Fair market value—A fair market value shall be established by the Maritime Administration for acquisition of an eligible vessel under this section.

“(d) Appropriations—Vessel acquisitions under this section shall be subject to the availability of appropriations. Amounts made available to carry out this section shall be derived from amounts authorized to be appropriated for the National Defense Reserve Fleet. Amounts authorized to be appropriated to carry out the Maritime Security Program may not be use to carry out this section.”

(b)

Clerical amendment— The table of chapters for subtitle VII of title 46, United States Code, is amended by adding at the end the following:

(c)

Deadline for accepting applications—

(1)

In general— The Secretary of Transportation shall begin accepting applications for enrollment of vessels in the Tanker Security Fleet established under chapter 707 of title 46, United States Code, as added by subsection (a), by not later than 30 days after the date of the enactment of this Act.

(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, in coordination with the Secretary of Defense shall—

(A)

approve the application and enter into an operating agreement with the applicant; or

(B)

provide to the applicant a written explanation for the denial of the application.

C Cable Security Fleet

Sec. 3521 Establishment of Cable Security Fleet

(a)

In general— Title 46, United States Code, is amended by inserting before chapter 533 the following new chapter:

“532 Cable Security Fleet

“53201. Definitions

“In this chapter:

“(1) Cable services—The term “cable services” means the installation, maintenance, or repair of submarine cables and related equipment, and related cable vessel operations.

“(2) Cable vessel—The term “cable vessel” means a vessel—

“(A) classed as a cable ship or cable vessel by, and designed in accordance with the rules of, the American Bureau of Shipping, or another classification society accepted by the Secretary; and

“(B) capable of installing, maintaining, and repairing submarine cables.

“(3) Cable fleet—The term “Cable Fleet” means the Cable Security Fleet established under section 53202(a).

“(4) Contingency agreement—The term “Contingency Agreement” means the agreement required by section 53207.

“(5) Contractor—The term “Contractor” means an owner or operator of a vessel that enters into an Operating Agreement for a cable vessel with the Secretary under section 53203.

“(6) Fiscal year—The term “fiscal year” means any annual period beginning on October 1 and ending on September 30.

“(7) Operating agency—The term “Operating Agency” means that agency or component of the Department of Defense so designated by the Secretary of Defense under this chapter.

“(8) Operating agreement or agreement—The terms “Operating Agreement” or “Agreement” mean the agreement required by section 53203.

“(9) Person—The term “person” includes corporations, partnerships, and associations existing under or authorized by the laws of the United States, or any State, Territory, District, or possession thereof, or of any foreign country.

“(10) Secretary—The term “Secretary” means the Secretary of Transportation.

“(11) United states—The term “United States” includes the States, the District of Columbia, the Commonwealth of Puerto Rico, the Northern Mariana Islands, Guam, American Samoa, and the Virgin Islands.

“(12) United states citizen trust

“(A) Subject to paragraph (C), the term “United States citizen trust” means a trust that is qualified under this paragraph.

“(B) A trust is qualified under this paragraph with respect to a vessel only if—

“(i) it was created under the laws of a state of the United States;

“(ii) each of the trustees is a citizen of the United States; and

“(iii) the application for documentation of the vessel under chapter 121 of this title includes the affidavit of each trustee stating that the trustee is not aware of any reason involving a beneficiary of the trust that is not a citizen of the United States, or involving any other person that is not a citizen of the United States, as a result of which the beneficiary or other person would hold more than 25 percent of the aggregate power to influence, or limit the exercise of the authority of, the trustee with respect to matters involving any ownership or operation of the vessel that may adversely affect the interests of the United States.

“(C) If any person that is not a citizen of the United States has authority to direct, or participate in directing, the trustee for a trust in matters involving any ownership or operation of the vessel that may adversely affect the interests of the United States or in removing a trustee for a trust without cause, either directly or indirectly through the control of another person, the trust is not qualified under this paragraph unless the trust instrument provides that persons who are not citizens of the United States may not hold more than 25 percent of the aggregate authority to direct or remove a trustee.

“(D) This paragraph shall not be considered to prohibit a person who is not a citizen of the United States from holding more than 25 percent of the beneficial interest in a trust.

“53202. Establishment of the Cable Security Fleet

“(a) In general

“(1) The Secretary, in consultation with the Operating Agency, shall establish a fleet of active, commercially viable, cable vessels to meet national security requirements. The fleet shall consist of privately owned, United States-documented cable vessels for which there are in effect Operating Agreements under this chapter, and shall be known as the Cable Security Fleet.

“(2) The Fleet described under this section shall include two vessels.

“(b) Vessel eligibility—A cable vessel is eligible to be included in the Fleet if—

“(1) the vessel meets the requirements of paragraph (1), (2), (3), or (4) of subsection (c);

“(2) the vessel is operated (or in the case of a vessel to be constructed, will be operated) in commercial service providing cable services;

“(3) the vessel is 40 years of age or less on the date the vessel is included in the Fleet;

“(4) the vessel is—

“(A) determined by the Operating Agency to be suitable for engaging in cable services by the United States in the interest of national security; and

“(B) determined by the Secretary to be commercially viable, whether independently or taking any payments which are the consequence of participation in the Cable Fleet into account; and

“(5) the vessel—

“(A) is a United States-documented vessel; or

“(B) is not a United States-documented vessel, but—

“(i) the owner of the vessel has demonstrated an intent to have the vessel documented under chapter 121 of this title if it is included in the Cable Fleet; and

“(ii) at the time an Operating Agreement is entered into under this chapter, the vessel is eligible for documentation under chapter 121 of this title.

“(c) Requirements regarding citizenship of owners and operators

“(1) Vessels owned and operated by section 50501 citizens—A vessel meets the requirements of this paragraph if, during the period of an Operating Agreement under this chapter that applies to the vessel, the vessel will be owned and operated by one or more persons that are citizens of the United states under section 50501 of this title.

“(2) Vessels owned by a section 50501 citizen, or united states citizen trust, and chartered to a documentation citizen—A vessel meets the requirements of this paragraph if—

“(A) during the period of an Operating Agreement under this chapter that applies to the vessel, the vessel will be—

“(i) owned by a person that is a citizen of the United States under section 50501 of this title or that is a United States citizen trust; and

“(ii) demise chartered to and operated by a person—

“(I) that is eligible to document the vessel under chapter 121 of this title;

“(II) the chairman of the board of directors, chief executive officer, and a majority of the members of the board of directors of which are citizens of the United States under section 50501 of this title, and are appointed and subject to removal only upon approval by the Secretary; and

“(III) that certifies to the Secretary that there are no treaties, statutes, regulations, or other laws that would prohibit the Contractor for the vessel from performing its obligations under an Operating Agreement under this chapter;

“(C) the Secretary and the Operating Agency notify the Committee on Armed Services and the Committee on Commerce, Science and Transportation of the Senate, and the Committee on Armed Services of the House of Representatives that they concur, and have reviewed the certification required under subparagraph (A)(ii)(III) and determined that there are no legal, operational, or other impediments that would prohibit the Contractor for the vessel from performing its obligations under an Operating Agreement under this chapter.

“(3) Vessel owned and operated by a defense contractor—A vessel meets the requirements of this paragraph if—

“(A) during the period of an Operating Agreement under this chapter that applies to the vessel, the vessel will be owned and operated by a person that—

“(i) is eligible to document a vessel under chapter 121 of this title;

“(ii) operates or manages other United States-documented vessels for the Secretary of Defense, or charters other vessels to the Secretary of Defense;

“(iii) has entered into a special security agreement for purposes of this paragraph with the Secretary of Defense;

“(iv) makes the certification described in paragraph (2)(A)(ii)(III); and

“(v) in the case of a vessel described in paragraph (2)(B), enters into an agreement referred to in that paragraph; and

“(B) the Secretary and the Secretary of Defense notify the Committee on Armed Services and Committee on Commerce, Science, and Transportation of the Senate and the Committee on Armed Services of the House of Representatives that they have reviewed the certification required by subparagraph (A)(iv) and determined that there are no other legal, operational, or other impediments that would prohibit the Contractor for the vessel from performing its obligations under an Operating Agreement under this chapter.

“(4) Vessel owned by a documentation citizen and chartered to a section 50501 citizen—A vessel meets the requirements of this paragraph if, during the period of an Operating Agreement under this chapter that applies to the vessel, the vessel will be—

“(A) owned by a person that is eligible to document a vessel under chapter 121 of this title; and

“(B) demise chartered to a person that is a citizen of the United States under section 50501 of this title.

“(d) Vessel standards

“(1) Certificate of inspection—A cable vessel which the Secretary of the Department in which the Coast Guard is operating determines meets the criteria of subsection (b) of this section but which, on the date of enactment of the Act, is not documented under chapter 121 of this title, shall be eligible for a certificate of inspection if that Secretary determines that—

“(A) the vessel is classed by, and designed in accordance with the rules of, the American Bureau of Shipping, or another classification society accepted by that Secretary;

“(C) that country has not been identified by that Secretary as inadequately enforcing international vessel regulations as to that vessel.

“(2) Continued eligibility for certificate—Paragraph (1) does not apply to a vessel after any date on which the vessel fails to comply with the applicable international agreements and associated guidelines referred to in paragraph (1)(B).

“(3) Reliance on classification society

“(A) In general—The Secretary of the Department in which the Coast Guard is operating may rely on a certification from the American Bureau of Shipping or, subject to subparagraph (B), another classification society accepted by that Secretary to establish that a vessel is in compliance with the requirements of paragraphs (1) and (2).

“(B) Foreign classification society—The Secretary of the Department in which the Coast Guard is operating may accept certification from a foreign classification society 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 reciprocal basis to the American Bureau of Shipping; and

“(ii) if the foreign classification society has offices and maintains records in the United States.

“(e) Waiver of age registration—The Secretary, in conjunction with the Operating Agency, may waive the application of the age restriction under subsection (b)(3) if they jointly determine that the waiver—

“(1) is in the national interest;

“(2) the subject cable vessel and any associated operating network is and will continue to be economically viable; and

“(3) is necessary due to the lack of availability of other vessels and operators that comply with the requirements of this chapter.

“53203. Award of operating agreements

“(a) In general—The Secretary shall require, as a condition of including any vessel in the Cable Fleet, that the person that is the owner or operator of the vessel for purposes of section 53202(c) enter into an Operating Agreement with the Secretary under this section.

“(b) Procedure for applications

“(1) Acceptance of applications—Beginning no later than 60 days after the effective date of this chapter, the Secretary shall accept applications for enrollment of vessels in the Cable Fleet.

“(2) Action on applications—Within 120 days after receipt of an application for enrollment of a vessel in the Cable Fleet, the Secretary shall approve the application in conjunction with the Operating Agency, and shall enter into an Operating Agreement with the applicant, or provide in writing the reason for denial of that application.

“(c) Priority for awarding agreements—Subject to the availability of appropriations, the Secretary shall enter into Operating Agreements with those vessels determined by the Operating Agency, in its sole discretion, to best meet the national security requirements of the United States. After consideration of national security requirements, priority shall be given to an applicant that is a United States citizen under section 50501 of this title.

“53204. Effectiveness of operating agreements

“(a) Effectiveness generally—The Secretary may enter into an Operating Agreement under this chapter for fiscal year 2021. Except as provided in subsection (d), the agreement shall be effective only for one fiscal year, but shall be renewable, subject to available appropriations, for each subsequent year.

“(b) Vessels under charter to the United States—Vessels under charter to the United States are eligible to receive payments pursuant to their Operating Agreements.

“(c) Termination

“(1) Termination by the secretary—If the Contractor with respect to an Operating Agreement materially fails to comply with the terms of the Agreement—

“(A) the Secretary shall notify the Contractor and provide a reasonable opportunity for it to comply with the Operating Agreement;

“(B) the Secretary shall terminate the Operating Agreement if the Contractor fails to achieve such compliance; and

“(C) upon such termination, any funds obligated by the Agreement shall be available to the Secretary to carry out this chapter.

“(2) Early termination by a contractor—An Operating Agreement under this chapter shall terminate on a date specified by the Contractor if the Contractor notifies the Secretary, not fewer than 60 days prior to the effective date of the termination, that the Contractor intends to terminate the Agreement.

“(d) Nonrenewal for lack of funds—If, by the first day of a fiscal year, sufficient funds have not been appropriated under the authority provided by this chapter for that fiscal year for all Operating Agreements, then the Secretary shall notify the Committee on Armed Services and the Committee on Commerce, Science, and Transportation of the Senate and the Committee on Armed Services of the House of Representatives that Operating Agreements authorized under this chapter for which sufficient funds are not available will not be renewed for that fiscal year if sufficient funds are not appropriated by the 60th day of that fiscal year. If only partial funding is appropriated by the 60th day of such fiscal year, then the Secretary, in consultation with the Operating Agency, shall select the vessels to retain under Operating Agreements, based on their determinations of which vessels are most useful for national security. In the event that no funds are appropriated, then no Operating Agreements shall be renewed and each Contractor shall be released from its obligations under the Operating Agreement. Final payments under an Operating Agreement that is not renewed shall be made in accordance with section 53206. To the extent that sufficient funds are appropriated in a subsequent fiscal year, an Operating Agreement that has not been renewed pursuant to this subsection may be reinstated if mutually acceptable to the Secretary, in consultation with the Operating Agency, and the Contractor, provided the vessel remains eligible for participation pursuant to section 53202, without regard to subsection 53202 (b)(3).

“(e) Release of vessels from obligations—If funds are not appropriated for payments under an Operating Agreement under this chapter for any fiscal year by the 60th day of a fiscal year, and the Secretary, in consultation with the Operating Agency determines to not renew a Contractor’s Operating Agreement for a vessel, then—

“(1) each vessel covered by the Operating Agreement that is not renewed is thereby released from any further obligation under the Operating Agreement;

“(2) the owner or operator of the vessel whose Operating Agreement was not renewed may transfer and register such vessel under a foreign registry that is acceptable to the Secretary and the Operating Agency, notwithstanding section 56101 of this title; and

“(3) if chapter 563 of this title is applicable to such vessel after registration, then the vessel is available to be requisitioned by the Secretary pursuant to chapter 563.

“53205. Obligations and rights under operating agreements

“(a) Operation of vessel—An Operating Agreement under this chapter shall require that, during the period the vessel is operating under the Agreement, the vessel—

“(1) shall be operated in the trade for Cable Services, or under a charter to the United States; and

“(2) shall be documented under chapter 121 of this title.

“(b) Annual payments by the secretary

“(1) In general—An Operating Agreement under this chapter shall require, subject to the availability of appropriations, that the Secretary make payment to the Contractor in accordance with section 53206.

“(2) Operating agreement is an obligation of the united states government—An Operating Agreement under this chapter constitutes a contractual obligation of the United States Government to pay the amounts provided for in the Operating Agreement to the extent of actual appropriations.

“(c) Documentation requirement—Each vessel covered by an Operating Agreement (including an Agreement terminated under section 53204(c)(2)) shall remain documented under chapter 121 of this title, until the date the Operating Agreement would terminate according to its own terms.

“(d) National security requirements

“(1) In general—A Contractor with respect to an Operating Agreement (including an Agreement terminated under section 53204(c)(2)) shall continue to be bound by the provisions of section 53207 until the date the Operating Agreement would terminate according to its terms.

“(2) Contingency agreement with operating agency—All terms and conditions of a Contingency Agreement entered into under section 53207 shall remain in effect until a date the Operating Agreement would terminate according to its terms, except that the terms of such Contingency Agreement may be modified by the mutual consent of the Contractor, and the Operating Agency.

“(e) Transfer of operating agreements—Operating Agreements shall not be transferrable by the Contractor.

“(f) Replacement vessel—A Contractor may replace a vessel under an Operating Agreement with another vessel that is eligible to be included in the Fleet under section 53202(b), if the Secretary and the Operating Agency jointly determine that the replacement vessel meets national security requirements and approve the replacement.

“53206. Payments

“(a) Annual payment

“(1) In general—The Secretary, subject to availability of appropriations and other provisions of this section, shall pay to the Contractor for an operating agreement, for each vessel that is covered by the operating agreement, an amount equal to $5,000,000 for each fiscal year 2021 through 2035.

“(2) Timing—This amount shall be paid in equal monthly installments at the end of each month. The amount shall not be reduced except as provided by this section.

“(b) Certification required for payment—As a condition of receiving payment under this section for a fiscal year for a vessel, the Contractor for the vessel shall certify that the vessel has been and will be operated in accordance with section 53205(a)(1) for 365 days in each fiscal year. Up to thirty (30) 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 shall not make any payment under this chapter for a vessel with respect to any days for which the vessel is—

“(1) not operated or maintained in accordance with an Operating Agreement under this chapter; or

“(2) more than 40 years of age.

“(d) Reductions in payments—With respect to payments under this chapter for a vessel covered by an Operating Agreement, the Secretary shall make a pro rata reduction for each day less than 365 in a fiscal year that the vessel is not operated in accordance with section 53205(a)(1), with days during which the vessel is drydocked or undergoing survey, inspection or repair to be considered days on which the vessel is operated as provided in subsection (b).

“53207. National security requirements

“(a) Contingency agreement required—The Secretary shall include in each Operating Agreement under this chapter a requirement that the Contractor enter into a Contingency Agreement with the Operating Agency. The Operating Agency shall negotiate and enter into a Contingency Agreement with each Contractor as promptly as practicable after the Contractor has entered into an Operating Agreement under this chapter.

“(b) Terms of contingency agreement

“(1) In general—A Contingency Agreement under this section shall require that a Contractor for a vessel covered by an Operating Agreement under this chapter make the vessel, including all necessary resources to engage in Cable Services required by the Operating Agency, available upon request by the Operating Agency.

“(2) Terms

“(A) In general—The basic terms of a Contingency Agreement shall be established (subject to subparagraph (B)) by the Operating Agency.

“(B) Additional terms—The Operating Agency and a Contractor may agree to additional or modifying terms appropriate to the Contractor’s circumstances.

“(c) Defense measures against unauthorized seizures

“(1) The Contingency Agreement shall require that any vessel operating under the direction of the Operating Agency operating in area that is designated by the Coast Guard as an area of high risk of piracy shall be equipped with, at a minimum, appropriate non-lethal defense measures to protect the vessel and crew from unauthorized seizure at sea.

“(2) The Secretary of Defense and the Secretary of the department in which the Coast Guard is operating shall jointly prescribe the non-lethal defense measures that are required under this paragraph.

“(d) Participation after expiration of operating agreement—Except as provided by section 53205(d), the Operating Agency may not require, through a Contingency Agreement or an Operating Agreement, that a Contractor continue to participate in a Contingency Agreement after the Operating Agreement with the Contractor has expired according to its terms or is otherwise no longer in effect.

“(e) Resources made available—The resources to be made available in addition to the vessel under a Contingency Agreement shall include all equipment, personnel, supplies, management services, and other related services as the Operating Agency may determine to be necessary to provide the Cable Services required by the Operating Agency.

“(f) Compensation

“(1) In general—The Operating Agency shall include in each Contingency Agreement provisions under which the Operating Agency shall pay fair and reasonable compensation for use of the vessel and all Cable Services provided pursuant to this section and the Contingency Agreement.

“(2) Specific requirements—Compensation under this subsection—

“(A) shall be at the rate specified in the Contingency Agreement;

“(B) shall be provided from the time that a vessel is required by the Operating Agency under the Contingency Agreement until the time it is made available by the Operating Agency available to reenter commercial service; and

“(C) shall be in addition to and shall not in any way reflect amounts payable under section 53206.

“(g) Liability of the United States for damages

“(1) Limitation on the liability of the u.s—Except as otherwise provided by law, the Government shall not be liable for disruption of a Contractor’s commercial business or other consequential damages to a Contractor arising from the activation of the Contingency Agreement.

“(2) Affirmative defense—In any action in any Federal or State court for breach of third-party contract, there shall be available as an affirmative defense that the alleged breach of contract was caused predominantly by action taken to carry out a Contingent Agreement. Such defense shall not release the party asserting it from any obligation under applicable law to mitigate damages to the greatest extent possible.

“53208. Regulatory relief

“(a) Applicability of coastwise laws—A vessel covered by an Operating Agreement that is operating pursuant to a Contingency Agreement, shall not be subject to the coastwise laws (46 U.S.C. 55101 et seq.).

“(b) Telecommunications equipment—The telecommunications and other electronic equipment on an existing vessel that is redocumented under the laws of the United States for operation under an Operating Agreement under this chapter shall be deemed to satisfy all Federal Communication Commission equipment certification requirements, if—

“(2) that country has not been identified by the Secretary of the Department in which the Coast Guard is operating as inadequately enforcing international regulations as to that vessel; and

“(3) at the end of its useful life, such equipment shall be replaced with equipment that meets Federal Communication Commission equipment certification standards.

“53209. Authorization of appropriations

“There are authorized to be appropriated for payments under section 53206, $10,000,000 for each of the fiscal years 2021 through 2035.”

(b)

Conforming amendment— The table of chapters at the beginning of subtitle V of title 46, United States Code, is amended by inserting before the item relating to chapter 533 the following new item:

Lineage

Sep 10, 2019viewing Placed on Calendar Senate Received See what changed
Jul 12, 2019 Engrossed in House See what changed
May 2, 2019 Reported in House Mr. Smith of Washington (for himself and Mr. Thornberry) (both by request) introduced the following bill; which was referred to the Committee on Armed Services See what changed
May 2, 2019 Introduced in House Mr. Smith of Washington (for himself and Mr. Thornberry) (both by request) introduced the following bill; which was referred to the Committee on Armed Services