---
kind: "section"
citation: "46 U.S.C. § 53403"
title: "46"
title_heading: "Shipping"
number: "53403"
heading: "Award of operating agreements"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/46/53403"
units:
  - "Subtitle V — Merchant Marine"
  - "Part C — Financial Assistance Programs"
  - "Chapter 534 — Tanker Security Fleet"
---

# §53403. Award of operating agreements

- (a) **In General.—** The [Secretary](/usc/46/53101.md?p=8) of Transportation shall require, as a condition of including any [vessel](/usc/46/53501.md?p=9) in the [Fleet](/usc/46/53101.md?p=3), that the [program participant](/usc/46/53401.md?p=5) of the [vessel](/usc/46/53501.md?p=9) enter into an [operating agreement](/usc/46/53201.md?p=8) with the [Secretary](/usc/46/53101.md?p=8) under this section.
- (b) **Procedure for Applications.—**
  - (1) **Eligible vessels.—** The [Secretary](/usc/46/53101.md?p=8) of Transportation shall accept an application for an [operating agreement](/usc/46/53201.md?p=8) for an eligible [product tank vessel](/usc/46/53101.md?p=7) under the priority under [paragraph (2)](#b-2) only from a [person](/usc/46/53101.md?p=6) that has authority to enter into an [operating agreement](/usc/46/53201.md?p=8) under this chapter.
  - (2) **Establishment of priority.—** The [Secretary](/usc/46/53101.md?p=8) of Transportation may enter into a new [operating agreement](/usc/46/53201.md?p=8) with an applicant that meets the requirements of [section 53402(c)](/usc/46/53402.md?p=c) for a [vessel](/usc/46/53501.md?p=9) that meets the qualifications of [section 53402(b)](/usc/46/53402.md?p=b), and shall give priority to applications based on—
    - (A) [vessel](/usc/46/53501.md?p=9) capabilities, as established by the [Secretary](/usc/46/53101.md?p=8) of Defense; then
    - (B) after [consideration](/usc/46/2101.md?p=5) of [vessel](/usc/46/53501.md?p=9) type, according to an applicant’s record of owning and operating [vessels](/usc/46/53501.md?p=9); then
    - (C) after [consideration](/usc/46/2101.md?p=5) of ownership and operation, according to such additional priorities as the [Secretary](/usc/46/53101.md?p=8) of Transportation may consider appropriate.
  - (3) **Concurrence of award.—** The [Secretary](/usc/46/53101.md?p=8) of Transportation may not approve an application for an [operating agreement](/usc/46/53201.md?p=8) without the concurrence of the [Secretary](/usc/46/53101.md?p=8) of Defense.
- (c) **Limitation.—** The [Secretary](/usc/46/53101.md?p=8) of Transportation may not award [operating agreements](/usc/46/53201.md?p=8) under this chapter that require payments under [section 53406 of this title](/usc/46/53406.md) for more than—.[^1]
  - (1) for each of [fiscal years](/usc/46/53201.md?p=6) 2022 and 2023, 10 [vessels](/usc/46/53501.md?p=9); and
  - (2) for any subsequent [fiscal year](/usc/46/53201.md?p=6), 20 [vessels](/usc/46/53501.md?p=9).
- (d) **Judicial Review.—** No court shall have jurisdiction to review the [Secretary](/usc/46/53101.md?p=8)’s decision with respect to the award or non-award of an [operating agreement](/usc/46/53201.md?p=8) issued under this chapter.

## Footnotes

[^1]: So in original. The period probably should not appear.

## Source credit

(Added Pub. L. 116–283, div. C, title XXXV, § 3511(a), Jan. 1, 2021, 134 Stat. 4412; amended Pub. L. 117–263, div. C, title XXXV, § 3501(b)(2), Dec. 23, 2022, 136 Stat. 3064.)

## Notes

### Editorial Notes

### Amendments

2022—Subsec. (c). Pub. L. 117–263 substituted “The Secretary” for “For any fiscal year, the Secretary” and “more than—” for “more than 10 vessels”, designated existing provisions as introductory provisions, and added pars. (1) and (2).