§ 5405. — Funding.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 16USC5405]
TITLE 16--CONSERVATION
CHAPTER 74--NATIONAL MARITIME HERITAGE
Sec. 5405. Funding
(a) Availability of funds from sale and scrapping of obsolete vessels
(1) In general
Notwithstanding any other provision of law, the amount of funds
credited in a fiscal year to the Vessel Operations Revolving Fund
established by section 1241a of title 46, Appendix, that is
attributable to the sale of obsolete vessels in the National Defense
Reserve Fleet that are scrapped or sold under section 1158 or
1160(i) of title 46, Appendix, shall be available until expended as
follows:
(A) 50 percent shall be available to the Administrator of
the Maritime Administration for such acquisition, maintenance,
repair, reconditioning, or improvement of vessels in the
National Defense Reserve Fleet as is authorized under other
Federal law.
(B) 25 percent shall be available to the Administrator of
the Maritime Administration for the payment or reimbursement of
expenses incurred by or on behalf of State maritime academies or
the United States Merchant Marine Academy for facility and
training ship maintenance, repair, and modernization, and for
the purchase of simulators and fuel.
(C) The remainder shall be available to the Secretary to
carry out the Program, as provided in subsection (b) of this
section.
(2) Application
Paragraph (1) does not apply to amounts credited to the Vessel
Operations Revolving Fund before July 1, 1994.
(b) Use of amounts for Program
(1) In general
Except as provided in paragraph (2), of amounts available each
fiscal year for the Program under subsection (a)(1)(C) of this
section--
(A) \1/2\ shall be used for grants under section 5403(b) of
this title; and
(B) \1/2\ shall be used for grants under section 5403(c) of
this title.
(2) Use for interim projects
Amounts available for the Program under subsection (a)(1)(C) of
this section that are the proceeds of any of the first 8 obsolete
vessels in the National Defense Reserve Fleet that are sold or
scrapped after July 1, 1994, under section 1158 or 1160(i) of title
46, Appendix, are available to the Secretary for grants for interim
projects approved under section 5403(j) of this title.
(3) Administrative expenses
(A) In general
Not more than 15 percent or $500,000, whichever is less, of
the amount available for the Program under subsection (a)(1)(C)
of this section for a fiscal year may be used for expenses of
administering the Program.
(B) Allocation
Of the amount available under subparagraph (A) for a fiscal
year--
(i) \1/2\ shall be allocated to the National Trust for
expenses incurred in administering grants under section
5403(b) of this title; and
(ii) \1/2\ shall be allocated as appropriate by the
Secretary to the National Park Service and participating
State Historic Preservation Officers.
(c) Disposals of vessels
(1) Requirement
The Secretary of Transportation shall dispose of all vessels
described in paragraph (2)--
(A) by September 30, 2006;
(B) in the manner that provides the best value to the
Government, except in any case in which obtaining the best value
would require towing a vessel and such towing poses a serious
threat to the environment; and
(C) in accordance with the plan of the Department of
Transportation for disposal of those vessels and requirements
under sections 1158 and 1160(i) of title 46, Appendix.
(2) Vessels described
The vessels referred to in paragraph (1) are the vessels in the
National Defense Reserve Fleet after July 1, 1994, that--
(A) are not assigned to the Ready Reserve Force component of
that fleet; and
(B) are not specifically authorized or required by statute
to be used for a particular purpose.
(d) Treatment of amounts available
Amounts available under this section shall not be considered in any
determination of the amounts available to the Department of the
Interior.
(Pub. L. 103-451, Sec. 6, Nov. 2, 1994, 108 Stat. 4776; Pub. L. 105-85,
div. A, title X, Sec. 1026(c), Nov. 18, 1997, 111 Stat. 1878; Pub. L.
106-398, Sec. 1 [div. C, title XXXV, Sec. 3502(a)], Oct. 30, 2000, 114
Stat. 1654, 1654A-490.)
Amendments
2000--Subsec. (c)(1)(A). Pub. L. 106-398, Sec. 1 [div. C, title
XXXV, Sec. 3502(a)(1)], substituted ``2006'' for ``2001''.
Subsec. (c)(1)(B). Pub. L. 106-398, Sec. 1 [div. C, title XXXV,
Sec. 3502(a)(2)], added subpar. (B) and struck out former subpar. (B)
which read as follows: ``in a manner that maximizes the return on the
vessels to the United States; and''.
1997--Subsec. (a)(1). Pub. L. 105-85, Sec. 1026(c)(1), inserted ``or
1160(i)'' after ``1158'' in introductory provisions.
Subsec. (b)(2). Pub. L. 105-85, Sec. 1026(c)(1), (2), inserted ``or
1160(i)'' after ``1158'' and substituted ``first 8'' for ``first 6''.
Subsec. (c)(1)(A). Pub. L. 105-85, Sec. 1026(c)(3), substituted
``2001'' for ``1999''.
Pilot Program on Export of Obsolete Vessels for Dismantlement and
Recycling
Pub. L. 107-314, div. C, title XXXV, Sec. 3504(c), (d), Dec. 2,
2002, 116 Stat. 2755, 2756, provided that:
``(c) Pilot Program on Export of Obsolete Vessels for Dismantlement
and Recycling.--(1)(A) The Secretary of Transportation, Secretary of
State, and Administrator of the Environmental Protection Agency shall
jointly carry out one or more pilot programs through the Maritime
Administration to explore the feasibility and advisability of various
alternatives for exporting obsolete vessels in the National Defense
Reserve Fleet for purposes of the dismantlement and recycling of such
vessels.
``(B) The pilot programs shall be carried out in accordance with
applicable provisions of law and regulations.
``(2)(A) The pilot programs under paragraph (1) shall be carried out
during fiscal year 2003.
``(B) The pilot programs shall include a total of not more than four
vessels.
``(C) The authority provided by this subsection is in addition to
any other authority available to Maritime Administration for exporting
obsolete vessels in the National Defense Reserve Fleet.
``(3) Activities under the pilot programs under paragraph (1) shall
include the following:
``(A) Exploration of the feasibility and advisability of a
variety of alternatives (developed for purposes of the pilot
programs) for exporting obsolete vessels in the National Defense
Reserve Fleet for purposes of the dismantlement and recycling of
such vessels.
``(B) Response by the Maritime Administration to proposals from
the international ship recycling industry for innovative and cost-
effective disposal solutions for obsolete vessels in the National
Defense Reserve Fleet, including an evaluation of the feasibility
and advisability of such proposals.
``(C) Demonstration of the extent to which the cost-effective
dismantlement or recycling of obsolete vessels in the National
Defense Reserve Fleet can be accomplished abroad in [a] manner that
appropriately addresses concerns regarding worker health and safety
and the environment.
``(D) Opportunities to transfer abroad processes, methodologies,
and technologies for ship dismantlement and recycling in order to
support the pilot programs and to improve international practices
and standards for ship dismantlement and recycling.
``(E) Exploration of cooperative efforts with foreign
governments (under a global action program on ship recycling or
other program) in order to foster economically and environmentally
sound ship recycling abroad.
``(4) The Secretary of Transportation shall submit to Congress a
report on the pilot programs under paragraph (1) through the existing
ship disposal reporting requirements in section 3502 of Floyd D. Spence
National Defense Authorization Act for Fiscal Year 2001 [section 1 [div.
C, title XXXV, Sec. 3502] of Pub. L. 106-398, which amended this section
and enacted provisions set out below]. The report shall include a
description of the activities under the pilot programs, and such
recommendations for further legislative or administrative action as the
Secretary considers appropriate.
``(d) Construction.--Nothing in this section shall be construed to
establish a preference for the reefing or export of obsolete vessels in
the National Defense Reserve Fleet over other alternatives available to
the Secretary for the scrapping of such vessels under section 3502(d)(3)
of the Floyd D. Spence National Defense Authorization Act for Fiscal
Year 2001.''
Scrapping of National Defense Reserve Fleet Vessels
Pub. L. 106-398, Sec. 1 [div. C, title XXXV, Sec. 3502(b)-(f)], Oct.
30, 2000, 114 Stat. 1654, 1654A-490 to 1654A-492, provided that:
``(b) Selection of Scrapping Facilities.--The Secretary of
Transportation may scrap obsolete vessels pursuant to section 6(c)(1) of
the National Maritime Heritage Act of 1994 (16 U.S.C. 5405(c)(1))
through qualified scrapping facilities, using the most expeditious
scrapping methodology and location practicable. Scrapping facilities
shall be selected under that section on a best value basis consistent
with the Federal Acquisition Regulation, as in effect on the date of the
enactment of this Act [Oct. 30, 2000], without any predisposition toward
foreign or domestic facilities taking into consideration, among other
things, the ability of facilities to scrap vessels--
``(1) at least cost to the Government;
``(2) in a timely manner;
``(3) giving consideration to worker safety and the environment;
and
``(4) in a manner that minimizes the geographic distance that a
vessel must be towed when towing a vessel poses a serious threat to
the environment.
``(c) Limitation on Scrapping Before Program.--
``(1) In general.--Until the report required by subsection
(d)(1) is transmitted to the congressional committees referred to in
that subsection, the Secretary may not proceed with the scrapping of
any vessel in the National Defense Reserve Fleet except the
following:
``(A) DONNER.
``(B) EXPORT COMMERCE.
``(C) BUILDER.
``(D) ALBERT E. WATTS.
``(E) WAYNE VICTORY.
``(F) MORMACDAWN.
``(G) MORMACMOON.
``(H) SANTA ELENA.
``(I) SANTA ISABEL.
``(J) SANTA CRUZ.
``(K) PROTECTOR.
``(L) LAUDERDALE.
``(N) [(M)] PVT. FRED C. MURPHY.
``(M) [(N)] BEAUJOLAIS.
``(O) MEACHAM.
``(P) NEACO.
``(Q) WABASH.
``(R) NEMASKET.
``(S) MIRFAK.
``(T) GEN. ALEX M. PATCH.
``(U) ARTHUR M. HUDDELL.
``(V) WASHINGTON.
``(W) SUFFOLK COUNTY.
``(X) CRANDALL.
``(Y) CRILLEY.
``(Z) RIGEL.
``(AA) VEGA.
``(BB) COMPASS ISLAND.
``(CC) EXPORT CHALLENGER.
``(DD) PRESERVER.
``(EE) MARINE FIDDLER.
``(FF) WOOD COUNTY.
``(GG) CATAWBA VICTORY.
``(HH) GEN. NELSON M. WALKER.
``(II) LORAIN COUNTY.
``(JJ) LYNCH.
``(KK) MISSION SANTA YNEZ.
``(LL) CALOOSAHATCHEE.
``(MM) CANISTEO.
``(2) Prioritization.--The Secretary shall exercise discretion
to prioritize for scrapping those vessels identified in paragraph
(1) that pose the most immediate threat to the environment.
``(d) Scrapping Program for Obsolete National Defense Reserve Fleet
Vessels.--
``(1) Development of program; report.--The Secretary of
Transportation, in consultation with the Secretary of the Navy and
the Administrator of the Environmental Protection Agency, shall
within 6 months after the date of the enactment of this Act [Oct.
30, 2000]--
``(A) develop a program for the scrapping of obsolete
National Defense Reserve Fleet vessels; and
``(B) submit a report on the program to the Committee on
Transportation and Infrastructure and the Committee on Resources
of the House of Representatives, the Committee on Commerce,
Science, and Transportation of the Senate, and the Committees on
Armed Services of the House of Representatives and the Senate.
``(2) Contents of report.--The report shall include information
concerning the initial determination of scrapping capacity, both
domestically and abroad, appropriate proposed regulations to
implement the program, funding and staffing requirements, milestone
dates for the disposal of each obsolete vessel, and longterm cost
estimates for the program.
``(3) Alternatives.--In developing the program, the Secretary of
Transportation, in consultation with the Secretary of the Navy and
the Administrator of the Environmental Protection Agency, shall
consider all alternatives and available information, including--
``(A) alternative scrapping sites;
``(B) vessel donations;
``(C) sinking of vessels in deep water;
``(D) sinking vessels for development of artificial reefs;
``(E) sales of vessels before they become obsolete;
``(F) results from the Navy Ship Disposal Program under
section 8124 of the Department of Defense Appropriations Act,
1999 [Pub. L. 105-262, 10 U.S.C. 7291 note]; and
``(G) the Report of the Department of Defense's Interagency
Panel on Ship Scrapping issued in April 1998.
``(e) Report.--Not later than 1 year after the date of the enactment
of this Act [Oct. 30, 2000], and every 6 months thereafter, the
Secretary of Transportation, in coordination with the Secretary of the
Navy, shall report to the Committee on Transportation and Infrastructure
and the Committee on Resources of the House of Representatives, the
Committee on Commerce, Science, and Transportation of the Senate, and
the Committees on Armed Services of the House of Representatives and the
Senate on the progress of the vessel scrapping program developed under
subsection (d)(1) and on the progress of any other scrapping of obsolete
Government-owned vessels.
``(f) Presidential Recommendation.--The President shall transmit
with the report required by subsection (d)(1) a recommendation on--
``(1) whether it is necessary to amend the Toxic Substances
Control Act (15 U.S.C. 2601 et seq.) or any other environmental
statute or regulatory requirements relevant to the disposal of
vessels described in section 6(c)(2) of the National Maritime
Heritage Act of 1994 (16 U.S.C. 5405(c)(2)) by September 30, 2006;
and
``(2) any proposed changes to those requirements to carry out
such disposals.''
Section Referred to in Other Sections
This section is referred to in section 5403 of this title.
