---
kind: "section"
citation: "46 U.S.C. § 53407"
title: "46"
title_heading: "Shipping"
number: "53407"
heading: "National security requirements"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/46/53407"
units:
  - "Subtitle V — Merchant Marine"
  - "Part C — Financial Assistance Programs"
  - "Chapter 534 — Tanker Security Fleet"
---

# §53407. National security requirements

- (a) **Emergency Preparedness Agreement Required.—** The [Secretary](/usc/46/53101.md?p=8) of Transportation, in coordination with the [Secretary](/usc/46/53101.md?p=8) of Defense, shall establish an emergency preparedness program under this section under which the [program participant](/usc/46/53401.md?p=5) for an [operating agreement](/usc/46/53201.md?p=8) under this chapter shall agree, as a condition of the [operating agreement](/usc/46/53201.md?p=8), to enter into an emergency preparedness [agreement](/usc/46/53201.md?p=8) with the [Secretary](/usc/46/53101.md?p=8). The [Secretary](/usc/46/53101.md?p=8) shall negotiate and enter into an Emergency Preparedness [Agreement](/usc/46/53201.md?p=8) with each [program participant](/usc/46/53401.md?p=5) as promptly as practicable after the [program participant](/usc/46/53401.md?p=5) has entered into the [operating agreement](/usc/46/53201.md?p=8).
- (b) **Terms of Agreement.—** The terms of an [agreement](/usc/46/53201.md?p=8) under this section—
  - (1) shall provide that upon request by the [Secretary](/usc/46/53101.md?p=8) of Defense during time of war or national emergency, or whenever determined by the [Secretary](/usc/46/53101.md?p=8) of Defense to be necessary for national security or contingency operation (as that term is defined in [section 101 of title 10](/usc/10/101.md)), the [program participant](/usc/46/53401.md?p=5) shall make available commercial transportation resources (including services) described in [subsection (d)](#d) to the [Secretary](/usc/46/53101.md?p=8) of Defense;
  - (2) shall include such additional terms as may be established by the [Secretary](/usc/46/53101.md?p=8) of Transportation and the [Secretary](/usc/46/53101.md?p=8) of Defense; and
  - (3) shall allow for the modification or addition of terms upon [agreement](/usc/46/53201.md?p=8) by the [Secretary](/usc/46/53101.md?p=8) of Transportation and the [program participant](/usc/46/53401.md?p=5) and the approval by the [Secretary](/usc/46/53101.md?p=8) of Defense.
- (c) **Participation After Expiration of Operating Agreement.—** Except as provided by [section 53406](/usc/46/53406.md), the [Secretary](/usc/46/53101.md?p=8) of Transportation may not require, through an emergency preparedness [agreement](/usc/46/53201.md?p=8) or an [operating agreement](/usc/46/53201.md?p=8), that a [program participant](/usc/46/53401.md?p=5) covered by an [operating agreement](/usc/46/53201.md?p=8) continue to participate in an emergency preparedness [agreement](/usc/46/53201.md?p=8) after the [operating agreement](/usc/46/53201.md?p=8) has expired according to its terms or is otherwise no longer in effect. After the expiration of an emergency preparedness [agreement](/usc/46/53201.md?p=8), a [program participant](/usc/46/53401.md?p=5) may voluntarily continue to participate in the [agreement](/usc/46/53201.md?p=8).
- (d) **Resources Made Available.—** The commercial transportation resources to be made available under an emergency preparedness [agreement](/usc/46/53201.md?p=8) shall include [vessels](/usc/46/53501.md?p=9) or capacity in [vessels](/usc/46/53501.md?p=9), terminal facilities, management services, and other related services, or any agreed portion of such nonvessel resources for activation as the [Secretary](/usc/46/53101.md?p=8) of Defense may determine to be necessary, seeking to minimize disruption of the [program participant](/usc/46/53401.md?p=5)’s service to commercial customers.
- (e) **Compensation.—**
  - (1) **In general.—** The [Secretary](/usc/46/53101.md?p=8) of Transportation shall include in each Emergency Preparedness [Agreement](/usc/46/53201.md?p=8) provisions approved by the [Secretary](/usc/46/53101.md?p=8) of Defense under which the [Secretary](/usc/46/53101.md?p=8) 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 [program participant](/usc/46/53401.md?p=5)’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](/usc/46/53501.md?p=9) or resource is required by the [Secretary](/usc/46/53101.md?p=8) of Defense until the time it is redelivered to the [program participant](/usc/46/53401.md?p=5) and is available to reenter [commercial service](/usc/46/2101.md?p=4); and
    - (D) shall be in addition to and shall not in any way reflect amounts payable under [section 53406 of this title](/usc/46/53406.md).
- (f) **Temporary Replacement Vessels.—** Notwithstanding section [55302(a)](/usc/46/55302.md?p=a), [55304](/usc/46/55304.md), [55305](/usc/46/55305.md), or [55314](/usc/46/55314.md) of this title, [section 2631 of title 10](/usc/10/2631.md), or any other [cargo](/usc/46/53901.md?p=2) preference law of the [United States](/usc/46/53101.md?p=10)—
  - (1) a [program participant](/usc/46/53401.md?p=5) may operate or employ in [foreign commerce](/usc/46/53101.md?p=4) a foreign-flag [vessel](/usc/46/53501.md?p=9) or foreign-flag [vessel](/usc/46/53501.md?p=9) capacity as a temporary replacement for a [vessel](/usc/46/53501.md?p=9) of the [United States](/usc/46/53101.md?p=10) or [vessel](/usc/46/53501.md?p=9) of the [United States](/usc/46/53101.md?p=10) capacity that is activated by the [Secretary](/usc/46/53101.md?p=8) of Defense under an emergency preparedness [agreement](/usc/46/53201.md?p=8) or a primary Department of Defense sealift-approved readiness program; and
  - (2) such replacement [vessel](/usc/46/53501.md?p=9) or [vessel](/usc/46/53501.md?p=9) capacity shall be eligible during the replacement period to transport preference cargoes subject to sections [55302(a)](/usc/46/55302.md?p=a), [55304](/usc/46/55304.md), [55305](/usc/46/55305.md), and [55314](/usc/46/55314.md) of this title and [section 2631 of title 10](/usc/10/2631.md), United States Code, to the same extent as the eligibility of the [vessel](/usc/46/53501.md?p=9) or [vessel](/usc/46/53501.md?p=9) 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](/usc/46/53201.md?p=8) shall, upon termination of the period of activation, be redelivered to the [program participant](/usc/46/53401.md?p=5) in the same good order and condition as when received, less ordinary wear and tear, or the [Secretary](/usc/46/53101.md?p=8) of Defense shall fully compensate the [program participant](/usc/46/53401.md?p=5) for any necessary repair or replacement.
  - (2) **Limitation on united states liability.—** Except as may be expressly agreed in an emergency preparedness [agreement](/usc/46/53201.md?p=8), or as otherwise provided by law, the Government shall not be liable for disruption of a [program participant](/usc/46/53401.md?p=5)’s commercial business or other consequential damages to the [program participant](/usc/46/53401.md?p=5) arising from the activation of commercial transportation resources under an emergency preparedness [agreement](/usc/46/53201.md?p=8).

## Source credit

(Added Pub. L. 116–283, div. C, title XXXV, § 3511(a), Jan. 1, 2021, 134 Stat. 4416.)