46 C.F.R. Subpart G—Maintenance and Repair Reimbursement Pilot Program
Title 46 - Shipping
Section 3517, Subtitle A of Title XXXV establishes a five-year pilot program for MSP vessels to perform maintenance and repair (M&R) work in United States shipyards. (a) The M&R pilot program is authorized at $19.5 million per year for FYs 2006–2011. (b) The M&R pilot program is a voluntary program and MSP operators are not required to participate. (c) Subject to available funding, expenses are reimbursable at 80 percent of the difference between the fair and reasonable costs of the repairs in a foreign shipyard in the geographic region in which the MSP vessel operates and the fair and reasonable costs of performing the repairs in a United States shipyard. (1) An MSP operator must apply at least 180 days in advance of anticipated M&R work. (2) The application must include estimates of M&R costs in the United States and outside the United States in the geographic region in which the MSP vessel operates. (d) MARAD has 60 days to notify the M&R applicant if the repair work meets the requirements of the M&R pilot program, if there is a shipyard in the United States that can perform the approved repairs, and whether funds are available. (e) Qualified M&R work includes any required inspection and any M&R work determined in the course of an inspection that is necessary to comply with the laws of the United States. (f) Qualified M&R work does not include routine M&R or emergency M&R that is necessary to enable a vessel to return to a port in the United States.
Title 46: Shipping
PART 296—MARITIME SECURITY PROGRAM (MSP)
Subpart G—Maintenance and Repair Reimbursement Pilot Program
§ 296.60 Applications.
