§294.31. Payments.
46 C.F.R. § 294.31
Amount payable. A TSP Operating Agreement will provide for each TSP Fleet Vessel, an annual payment, subject to the availability of appropriations, equal to: $6,000,000 for fiscal years (FY) 2022 to 2024; $8,160,000 for FY 2025 and 2026; $8,380,000 for FY 2027 and 2028; $8,606,000 for FY 2029 and 2030; $8,839,000 for FY 2031 and 2032; $9,078,000 for FY 2033 and 2034; $9,323,000 for FY 2035 and 2036; $9,574,000 for FY 2037 and 2038; and $9,833,000 for FY 2039 and 2040. This amount will be paid in equal monthly installments at the end of each month. The annual amount payable, to the extent of actual appropriations, will not be reduced except as provided in paragraphs (b) and (c) of this section.
Reductions in amount payable. The annual amount otherwise payable under a TSP Operating Agreement will be reduced on a pro rata basis:
For each day less than 320 days in a fiscal year that a TSP Fleet Vessel is not operated in accordance with § 294.23(a)(1) through (3); or
If Congress does not appropriate funds at the authorized level by the 60th day of the fiscal year.
No payment.
Regardless of whether the Agreement Holder has or will operate the TSP Fleet Vessel for 320 days a year, the Agreement Holder will not be paid:
For any day in which the TSP Vessel is engaged in transporting more than 7,500 tons of civilian bulk preference cargoes pursuant to 46 U.S.C. 55302(a), 55305, or 55314 (using the United States standard of short tons, which is equivalent to 6,803.85 metric tons or 6,696.75 long tons);
During a period in which the Agreement Holder participates in noncontiguous domestic trade, unless that Agreement Holder is a section 50501 citizen, applying the 75 percent ownership requirement of section 50501;
For any days in which the Agreement Holder operates a TSP Vessel that is 15 years or older which is not enrolled in their classification society's CAP or is not maintaining a CAP rating of two or better;
For any day in which the Agreement Holder operates a TSP Vessel that is more than 20 years of age;
For days in excess of 30 days in a fiscal year in which a vessel is drydocked or undergoing survey, inspection, or repair, unless, prior to the expiration of the vessel's 30-day drydock and repair period, the Agreement Holder obtains approval from MARAD for an extension beyond 30 days;
For any day in which the Agreement Holder does not, at the request of the Administrator, carry up to two United States Merchant Marine Academy cadets onboard; and
If the Agreement Holder does not operate or maintain the TSP Fleet Vessel in accordance with the terms of the TSP Operating Agreement.
To the extent that non-payment days under this paragraph (c) are known, Agreement Holder payments will be reduced at the time of the current billing. The daily reduction amounts will be based on the annual amounts in paragraph (a) of this section divided by 365 days (366 days in leap years) and rounded to the nearest cent.
MARAD may require, for good cause, that a portion of the funds payable under this section be withheld if the provisions of § 294.23(a) have not been met.
Amounts owed to MARAD for reductions applicable to a prior billing period must be electronically transferred using MARAD's prescribed format, or the amount owed can be credited to MARAD by offsetting amounts payable in future billing periods.
Notes, amendments, and revision history
Authority
Authority: 46 U.S.C. ch. 534, 49 CFR 1.93.
Source
Source: 91 FR 37326, June 23, 2026, unless otherwise noted.