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(ii) the Secretary determines that

(I) the owner of the tank vessel has entered into a binding agreement to alter the tank vessel in a shipyard in the United States to reduce the gross tonnage of the tank vessel by converting a portion of the cargo tanks of the tank vessel into protectively located segregated ballast tanks; and

(II) that conversion will result in a significant reduction in the risk of a discharge
of oil;

(iii) at least 60 days before the date of the issuance of the waiver, the Secretary-
(I) publishes notice that the Secretary has received the application and made the
determinations required by clause (ii), including a description of the agree-
ment entered into pursuant to clause (ii)(I); and

(II) provides an opportunity for submission of comments regarding the applica-
tion; and

(iv) the alterations referred to in clause (ii)(I) are completed before the later of-
(I) the date by which the first special survey of the tank vessel is required to be
completed after the date of the enactment of the National Defense Authoriza-
tion Act for Fiscal Year 1998; or

(II) July 1, 1999.

(B) A waiver under subparagraph (A) shall not be effective after the expiration of the 3year period beginning on the first date on which the tank vessel would have been prohibited by subsection (c) from operating if the alterations referred to in subparagraph (A)(ii)(I) were not made.

(3) This subsection does not apply to a tank vessel that, before July 1, 1997, had undergone, or was the subject of a contract for, alterations that reduce the gross tonnage of the tank vessel, as shown by reliable evidence acceptable to the Secretary.

(Added Pub. L. 101-380, title IV, Sec. 4115(a), Aug. 18, 1990, 104 Stat. 517; amended Pub. L. 104324, title VII, Sec. 715, title XI, Sec. 1103, Oct. 19, 1996, 110 Stat. 3937, 3966; Pub. L. 105-85, div. C, title XXXVI, Sec. 3606, Nov. 18, 1997, 111 Stat. 2077.)

References in Text

The Deepwater Port Act of 1974, referred to in subsec. (b)(3)(A), is Pub. L. 93-627, Jan. 3, 1975, 88 Stat. 2126, as amended, which is classified generally to chapter 29 (Sec. 1501 et seq.) of Title 33, Navigation and Navigable Waters. For complete classification of this Act to the Code, see Short Title note set out under section 1501 of Title 33 and Tables.

The date of the enactment of the National Defense Authorization Act for Fiscal Year 1998, referred to in subsec. (e)(2)(A)(iv)(I), is the date of enactment of Pub. L. 105-85, which was approved Nov. 18, 1997.

Amendments

1997–Subsec. (e). Pub. L. 105-85 added subsec. (e).

1996–Subsec. (b)(2). Pub. L. 104-324, Sec. 715(1), inserted “as measured under section 14502 of this title, or an alternate tonnage measured under section 14302 of this title as prescribed by the Secretary under section 14104 of this title” after “5,000 gross tons”.

Subsec. (b)(4) to (6). Pub. L. 104-324, Sec. 1103(1), added pars. (4) to (6).

Subsec. (c)(2). Pub. L. 104-324, Sec. 715(2), inserted “as measured under section 14502 of this title, or an alternate tonnage measured under section 14302 of this title as prescribed by the Secretary under section 14104 of this title" after “5,000 gross tons" in two places.

Subsec. (c)(3)(A). Pub. L. 104-324, Sec. 715(3), inserted “as measured under section 14502 of this title, or an alternate tonnage measured under section 14302 of this title as prescribed by the Secretary under section 14104 of this title" after “15,000 gross tons".

Subsec. (c)(3)(B). Pub. L. 104-324, Sec. 715(4), inserted "as measured under section 14502 of this title, or an alternate tonnage measured under section 14302 of this title as prescribed by the Secretary under section 14104 of this title” after “30,000 gross tons".

Subsec. (c)(3)(C). Pub. L. 104-324, Sec. 715(5), inserted "as measured under section 14502 of this title, or an alternate tonnage measured under section 14302 of this title as prescribed by the Secretary under section 14104 of this title" after “30,000 gross tons".

Subsec. (d). Pub. L. 104-324, Sec. 1103(2), added subsec. (d).

Effective Date

Section applicable to incidents occurring after Aug. 18, 1990, see section 1020 of Pub. L. 101-380, set out as a note under section 2701 of Title 33, Navigation and Navigable Waters.

Tank Vessels Over 5,000 Gross Tons To Comply Until January 1, 2015, With Environmentally Protective Structural and Operational Requirements Section 4115(b) of Pub. L. 101-380 provided that: “The Secretary shall, within 12 months after the date of the enactment of this Act [Aug. 18, 1990], complete a rulemaking proceeding and issue a final rule to require that tank vessels over 5,000 gross tons affected by section 3703a of title 46, United States Code, as added by this section, comply until January 1, 2015, with structural and operational requirements that the Secretary determines will provide as substantial protection to the environment as is economically and technologically feasible."

Study on Other Structural and Operational Tank Vessel Requirements

Pub. L. 101-380, title IV, Sec. 4115(e), Aug. 18, 1990, 104 Stat. 520, as amended by Pub. L. 105-383, title IV, Sec. 423, Nov. 13, 1998, 112 Stat. 3440, provided that:

"(1) Other requirements.-Not later than 6 months after the date of enactment of this Act [Aug. 18, 1990], the Secretary shall determine, based on recommendations from the National Academy of Sciences or other qualified organizations, whether other structural and operational tank vessel requirements will provide protection to the marine environment equal to or greater than that provided by double hulls, and shall report to the Congress that determination and recommendations for legislative action.

(2) Review and assessment.-The Secretary shall

(A) periodically review recommendations from the National Academy of Sciences and
other qualified organizations on methods for further increasing the environmental
and operational safety of tank vessels;

(B) not later than 5 years after the date of enactment of this Act [Aug. 18, 1990], assess the
impact of this section on the safety of the marine environment and the economic
viability and operational makeup of the maritime oil transportation industry; and
(C) report the results of the review and assessment to the Congress with recommenda-
tions for legislative or other action.

(3) (A) The Secretary of Transportation shall coordinate with the Marine Board of the National Research Council to conduct the necessary research and development of a rationally based equivalency assessment approach, which accounts for the overall environmental performance of alternative tank vessel designs. Notwithstanding the Coast Guard opinion of the application of sections 101 and 311 of the Clean Water Act (33 U.S.C. 1251 and 1321), the intent of this study is to establish an equivalency evaluation procedure that maintains a high standard of environmental protection, while encouraging innovative ship design. The study shall include:

(i) development of a generalized cost spill data base, which includes all relevant costs such as clean-up costs and environmental impact costs as a function of spill size; (ii) refinement of the probability density functions used to establish the extent of vessel damage, based on the latest available historical damage statistics, and current research on the crash worthiness of tank vessel structures;

(iii) development of a rationally based approach for calculating an environmental index, to assess overall outflow performance due to collisions and groundings; and (iv) application of the proposed index to double hull tank vessels and alternative de signs currently under consideration.

(B) A Marine Board committee shall be established not later that [sic] 2 months after the date of the enactment of the Coast Guard Authorization Act of 1998 [Nov. 13, 1998]. The Secretary of Transportation shall submit to the Committee on Commerce, Science, and Transportation of the Senate and the Committee on Transportation and Infrastructure in the House of Representatives a report on the results of the study not later than 12 months after the date of the enactment of the Coast Guard Authoriza tion Act of 1998.

(C) of the amounts authorized by section 1012(a)(5)(A) of this Act [33 U.S.C. 2712(a)(5)(A)}, $500,000 is authorized to carry out the activities under subparagraphs (A) and (B) of this paragraph."

Territorial Sea of United States

For extension of territorial sea of United States, see Proc. No. 5928, set out as a note under section 1331 of Title 43, Public Lands.

Contiguous Zone of United States

For extension of contiguous zone of United States, see Proc. No. 7219, Sept. 2, 1999, 64 F.R. 48701, set out as a note under section 1331 of Title 43, Public Lands.

Section Referred to in Other Sections

This section is referred to in section 3715 of this title; title 50 App. section 1744.

ESTABLISHMENT OF DOUBLE HULL REQUIREMENT FOR TANK VESSELS

Sec. 4115'

(a) Double Hull Requirement.-Chapter 37 of title 46, United States Code, is amended by inserting after section 3703 the following new section:

“3703a. Tank vessel construction standards"

[See 46 U.S.C 3703a, Tank Vessel Construction Standards, above.]

(b) Rulemaking.-The Secretary shall, within 12 months after the date of the enactment of this Act, complete a rulemaking proceeding and issue a final rule to require that tank vessels over 5,000 gross tons affected by section 3703a of title 46, United States Code, as added by this section, comply until January 1, 2015, with structural and operational requirements that the Secretary determines will provide as substantial protection to the environment as is economically and technologically feasible.

(c) Clerical Amendment.-The analysis for chapter 37 of title 46, United States Code, is amended by inserting after the item relating to section 3703 the following:

❝3703a. Tank Vessel Construction Standards.".

(d) Lightering Requirements.-Section 3715(a) of title 46, United States Code, is amended– (1) in paragraph (1), by striking “; and" and inserting a semicolon;

(2) in paragraph (2), by striking the period and inserting "; and"; and

(3) by adding at the end the following:

“(3) the delivering and the receiving vessel had on board at the time of transfer, a certificate of financial responsibility as would have been required under section 1016 of the Oil Pollution Act of 1990, had the transfer taken place in a place subject to the jurisdiction of the United States;

(4) the delivering and the receiving vessel had on board at the time of transfer, evidence that each vessel is operating in compliance with section 311(j) of the Federal Water Pollution Control Act (33 U.S.C. 1321(j)); and

(5) the delivering and the receiving vessel are operating in compliance with section 3703a of this title.".

(e) Secretarial Studies.

[See "Study on Other Structural and Operational Tank Vessel Requirements" note under 46 U.S.C 3703a above for contents of paragraph.]

(f) Vessel Financing.-Section 1104 of the Merchant Marine Act of 1936 (46 App. U.S.C. 1274) is amended

(1) by striking "Sec. 1104” and inserting “Sec. 1104A.”; and

(2) by inserting after section 1104A (as redesignated by paragraph (1)) the following:

"Sec. 1104B. (a) Notwithstanding the provisions of this title, except as provided in subsection (d) of this section, the Secretary, upon the terms the Secretary may prescribe, may guarantee or make a commitment to guarantee, payment of the principal of and interest on an obligation which aids in financing and refinancing, including reimbursement to an obligor for expenditures previously made, of a contract for construction or reconstruction of a vessel or vessels owned by citizens of the United States which are designed and to be employed for commercial use in the coastwise or intercoastal trade or in foreign trade as defined in section 905 of this Act if

Editor's note: section number and text is that of Pub. L. 101-380.

(1) the construction or reconstruction by an applicant is made necessary to replace ves-
sels the continued operation of which is denied by virtue of the imposition of a statu-
torily mandated change in standards for the operation of vessels, and where, as a
matter of law, the applicant would otherwise be denied the right to continue operating
vessels in the trades in which the applicant operated prior to the taking effect of the
statutory or regulatory change;

(2) the applicant is presently engaged in transporting cargoes in vessels of the type and
class that will be constructed or reconstructed under this section, and agrees to em-
ploy vessel constructed or reconstructed under this section as replacements only for
vessels made obsolete by changes in operating standards imposed by statute;
(3) the capacity of the vessels to be constructed or reconstructed under this title will not
increase the cargo carrying capacity of the vessels being replaced;

(4) the Secretary has not made a determination that the market demand for the vessel
over its useful life will diminish so as to make the granting of the guarantee fiduciarily
imprudent; and

(5) the Secretary has considered the provisions of section 1104(A)(d)(1)(A)(iii), (iv), and (v) of this title.

(b) For the purposes of this section

(1) the maximum term for obligations guaranteed under this program may not exceed 25
years;

(2) obligations guaranteed may not exceed 75 percent of the actual cost or depreciated
actual cost to the applicant for the construction or reconstruction of the vessel; and
(3) reconstruction cost obligations may not be guaranteed unless the vessel after recon-
struction will have a useful life of at least 15 years.

(c) (1) The Secretary shall by rule require that the applicant provide adequate security against default. The Secretary may, in addition to any fees assessed under section 1104A(e), establish a Vessel Replacement Guarantee Fund into which shall be paid by obligors under this section

(A) annual fees which may be an additional amount on the loan guarantee fee in section 1104A(e), not to exceed an additional 1 percent; or

(B) fees based on the amount of the obligations versus the percentage of the obligor's fleet being replaced by vessels constructed under this section.

(2) The Vessel Replacement Guarantee Fund shall be a subaccount in the Federal Ship Financing Fund, and shall

(A) be the depository for all moneys received by the Secretary under sections 1101 through 1107 of this title with respect to guarantee or commitments to guarantee made under this section;

(B) not include investigation fees payable under section 1104A(f) which shall be paid to the Federal Ship Financing Fund; and

(C) be the depository, whenever there shall be outstanding any notes or obligations issued by the Secretary under section 1105(d) with respect to the Vessel Replacement Guarantee Fund, for all moneys received by the Secretary under sections 1101 through 1107 from applicants under this section.

(d) The program created by this section shall, in addition to the requirements of this section, be subject to the provisions of sections 1101 through 1103; 1104A(b) (1), (4), (5), (6); 1104A(e); 1104A(f); 1104A(h); and 1105 through 1107; except that the Federal Ship Financing Fund is not liable for any guarantees or commitments to guarantee issued under this section.".

PILOTAGE

Sec. 41161

(a) Pilot Required.-Section 8502(g) of title 46, United States Code, is amended to read as follows: "(g) (1) The Secretary shall designate by regulation the areas of the approaches to and waters of Prince William Sound, Alaska, if any, on which a vessel subject to this section is not required to be under the direction and control of a pilot licensed under section 7101 of this title.

'Editor's note: section number and text is that of Pub. L. 101-380.

(2) In any area of Prince William Sound, Alaska, where a vessel subject to this section is required to be under the direction and control of a pilot licensed under section 7101 of this title, the pilot may not be a member of the crew of that vessel and shall be a pilot licensed by the State of Alaska who is operating under a Federal license, when the vessel is navigating waters between 60°49' North latitude and the Port of Valdez, Alaska.". (b) Second Person Required.-Section 8502 of title 46, United States Code, is amended by adding at the end the following:

"(h) The Secretary shall designate waters on which tankers over 1,600 gross tons subject to this section shall have on the bridge a master or mate licensed to direct and control the vessel under section 7101(c)(1) of this title who is separate and distinct from the pilot required under subsection (a) of this section.".

(c) Escorts for Certain Tankers.-Not later than 6 months after the date of enactment of this Act, the Secretary shall initiate issuance of regulations under section 3703(a)(3) of title 46, United States Code, to define those areas, including Prince William Sound, Alaska, and Rosario Strait and Puget Sound, Washington (including those portions of the Strait of Juan de Fuca east of Port Angeles, Haro Strait, and the Strait of Georgia subject to United States jurisdiction), on which single hulled tankers over 5,000 gross tons transporting oil in bulk shall be escorted by at least two towing vessels (as defined under section 2101 of title 46, United State Code) or other vessels considered appropriate by the Secretary.

(d) Tanker Defined. In this section the term “tanker” has the same meaning the term has in section 2101 of title 46, United States Code.

Sec. 4117

MARITIME POLLUTION PREVENTION TRAINING PROGRAM STUDY

The Secretary shall conduct a study to determine the feasibility of a Maritime Oil Pollution Prevention Training program to be carried out in cooperation with approved maritime training institutions. The study shall assess the costs and benefits of transferring suitable vessels to selected maritime training institutions, equipping the vessels for oil spill response, and training students in oil pollution response skills. The study shall be completed and transmitted to the Congress no later than one year after the date of the enactment of this Act.

Sec. 4118

VESSEL COMMUNICATION EQUIPMENT REGULATIONS

The Secretary shall, not later than one year after the date of the enactment of this Act, issue regulations necessary to ensure that vessels subject to the Vessel Bridge-to-Bridge Radiotelephone Act of 1971 (33 U.S.C. 1203) are also equipped as necessary to

(1) receive radio marine navigation safety warnings; and

(2) engage in radio communications on designated frequencies with the Coast Guard, and such other vessels and stations as may be specified by the Secretary.

Subtitle B-Removal

FEDERAL REMOVAL AUTHORITY

Sec. 4201'

(a) In General.—Subsection (c) of section 311 of the Federal Water Pollution Control Act (33 U.S.C. 1321(c) is amended to read as follows: [Note: See Clean Water Act, Section 311(c) Federal Removal Authority.]

(b) National Contingency Plan.-Subsection (d) of section 311 of the Federal Water Pollution Control Act (33 U.S.C. 1321(d)) is amended to read as follows: [See Clean Water Act, Section 311(d) National Contingency Plan.]

'Editor's note: section number and text is that of Pub. L. 101-380.

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