
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 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''.


           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.
