Document 06yqqNLwzvV8EyDDkejaVq2Jx

BOM24567 S6J S.L.C. 178 1 "(c) ESTABLISHMENT OF REVOLVING LOAN 2 FUND.--Not later than 30 days after the date of enact- 3 ment of the SHIPS for America Act of 2024, the Sec- 4 retary shall establish a revolving loan fund to be adminis- 5 tered by the National Surface Transportation and Innova- 6 tion Finance Bureau established under section 116 of title 7 49. Any funds appropriated to carry out this chapter shall 8 be deposited in the fund, along with any proceeds gen- 9 erated from the loan guarantee program under this chap- 10 ter including any fees collected under section 53713 or 11 53714. The Secretary or Administrator shall make a guar- 12 antee of payments or commitment to guarantee payments 13 under subsection (a) or for the Secretary to make direct 14 loan obligations under subsection (b) out of the revolving 15 loan fund. 16 "(d) AUTHORIZATION OF APPROPRIATIONS.--There 17 is authorized to be appropriated, out of the Maritime Se- 18 curity Trust Fund established under section 9512 of the 19 Internal Revenue Code of 1986, $100,000,000 for fiscal 20 year 2025 to be available until expended to the revolving 21 loan fund established under subsection (c).". 22 (b) FUNDING LIMITS.--Section 53704 of title 46, 23 United States Code, is amended- 24 (1) in subsection (a), by striking "facilities." 25 and inserting "facilities, and not less than 50 per- OST-2025-1200 Page 00549 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012230 BOM24567 S6J S.L.C. 179 1 cent of obligations guaranteed under this chapter 2 shall be for projects that do not receive any pay- 3 ments or Federal financial assistance from financial 4 assistance programs established under this part."; 5 and 6 (2) in subsection (c), by adding at the end the 7 following: 8 "(5) VESSEL OF NATIONAL INTEREST.--The 9 Administrator shall ensure that the system of risk 10 categories under paragraph (2) takes into consider- 11 ation whether a project subject to a guarantee under 12 this chapter is a project to construct, reconstruct, or 13 recondition a Vessel of National Interest.". 14 (c) ELIGIBLE PURPOSES OF OBLIGATIONS.--Section 15 53706(a)(8) of title 46, United States Code, is amended- 16 (1) by striking "States." and inserting "States 17 that is required--"; and 18 (2) by adding at the end the following new sub- 19 paragraphs: 20 "(A) for the vessel to be a vessel of the 21 United States; 22 "(B) for the vessel to be issued a coastwise 23 endorsement under chapter 121; OST-2025-1200 Page 00550 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012231 B0M24567 S6J S.L.C. 180 1 "(C) to convert a civilian vessel of the 2 United States to a more useful military configu- 3 ration; 4 "(D) for any vessel under contract to the 5 Federal Government; or 6 "(E) for any United States-built vessel 7 participating in-- 8 "(i) the Maritime Security Program 9 or the Emergency Preparedness Program 10 under chapter 531; 11 "(ii) the Cable Security Fleet under 12 chapter 532; 13 "(iii) the Tanker Security Fleet under 14 chapter 534; 15 "(iv) the Strategic Commercial Fleet 16 under chapter 536; 17 "(v) the Shipbuilding Financial Incen- 18 tive under chapter 538; or 19 "(vi) the National Defense Reserve 20 Fleet under section 57100.". 21 (d) BuY AMERICA.--Section 53733 of title 46, 22 United States Code, is amended by adding at the end the 23 following: OST-2025-1200 Page 00551 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012232 B0M24567 S6J S.L.C. 181 1 "(f) BUY AMERICA.--Section 54101(d)(2) shall apply 2 to any funds obligated by the Administrator under this 3 section.". 4 SEC. 504. CONSTRUCTION RESERVE FUND. 5 (a) DEFINITIONS.--Section 53301(a) of title 46, 6 United States Code, is amended- 7 (1) in paragraph (1), by striking "a new vessel" 8 and inserting "an eligible vessel"; 9 (2) in paragraph (2)- 10 (A) in the paragraph heading, by striking 11 "NEW VESSEL" and inserting "ELIGIBLE VES- 12 SEL"; 13 (B) in the matter preceding subparagraph 14 (A), by striking "new vessel" and inserting "eli- 15 gible vessel"; and 16 (C) in subparagraph (A)- 17 (i) in clause (i), by striking "after De- 18 cember 31, 1939"; 19 (ii) in clause (ii), by striking "and" 20 after the semicolon; 21 (iii) by redesignating clause (iii) as 22 clause (iv); and 23 (iv) by inserting after clause (ii), the 24 following: OST-2025-1200 Page 00552 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012233 B0M24567 S6J S.L.C. 182 1 "(iii) operated in foreign commerce or 2 domestic commerce of the United States or 3 in the fisheries; and"; and 4 (3) by adding at the end the following: 5 "(3) FOREIGN COMMERCE.--The term `foreign 6 commerce' means- 7 "(A) commerce or trade between the 8 United States, its territories or possessions, or 9 the District of Columbia, and a foreign country; 10 and 11 "(B) commerce or trade between foreign 12 countries.". 13 (b) AUTHORITY FOR CONSTRUCTION RESERVE 14 FUNDS.--Section 53302(a) of title 46, United States 15 Code, is amended by striking "or acquisition of a new ves- 16 sel" and inserting "repowering, or acquisition of an eligi- 17 ble vessel". 18 (C) PERSONS ELIGIBLE TO ESTABLISH FUNDS.- 19 Section 53303 of title 46, United States Code, is amend- 20 ed- 21 (1) by striking the matter preceding paragraph 22 (1) and inserting the following: "A citizen of the 23 United States may make an agreement with the Sec- 24 retary of Transportation under this chapter to estab- 25 lish a construction reserve fund if that citizen--"; OST-2025-1200 Page 00553 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012234 B0M24567 S6J S.L.C. 183 1 (2) in paragraph (1), by striking "in the foreign 2 or domestic commerce of the United States" and in- 3 serting "documented under the laws of the United 4 States and operating in foreign commerce or domes- 5 tic commerce of the United States"; 6 (3) in paragraph (2), by striking "being oper- 7 ated in the foreign or domestic commerce of the 8 United States" and inserting "documented under 9 the laws of the United States and operating in for- 10 eign commerce or domestic commerce of the United 11 States"; 12 (4) in paragraph (3), by striking "in the foreign 13 or domestic commerce of the United States" and in- 14 serting "documented under the laws of the United 15 States and operating in foreign commerce or domes- 16 tic commerce of the United States"; 17 (5) in paragraph (4)- 18 (A) by striking "being operated in the for- 19 eign or domestic commerce of the United 20 States" and inserting "documented under the 21 laws of the United States and operating in for- 22 eign commerce or domestic commerce of the 23 United States"; and 24 (B) by striking "or" after the semicolon; 25 (6) in paragraph (5)- OST-2025-1200 Page 00554 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012235 BOM24567 S6J S.L.C. 184 1 (A) by striking "in the foreign or domestic 2 commerce of the United States" and inserting 3 "documented under the laws of the United 4 States to operate in foreign commerce or do- 5 mestic commerce of the United States"; and 6 (B) by striking the period at the end and 7 inserting "; or"; and 8 (7) by adding at the end the following: 9 "(6) commits, as a part of the agreement with 10 the Secretary under this chapter, to construct, re- 11 construct, recondition, repower, or acquire, and op- 12 erate, an eligible vessel by not later than 5 years 13 after the date on which the construction reserve 14 fund is established.". 15 (d) VESSEL OWNERSHIP.--Section 53304 of title 46, 16 United States Code, is amended by striking "constructed 17 or acquired" each place the term appears and inserting 18 "constructed, reconstructed, reconditioned, repowered, or 19 acquired". 20 (e) BASIS FOR DETERMINING GAIN OR LOSS.--Sec- 21 tion 53307 of title 46, United States Code, is amended- 22 (1) in the section heading, by striking "new 23 vessels" and inserting "eligible vessels"; 24 (2) by striking "a new vessel" and inserting 25 "an eligible vessel"; OST-2025-1200 Page 00555 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012236 BOM24567 S6J S.L.C. 185 1 (3) by striking "the new vessel" and inserting 2 "the eligible vessel"; 3 (4) by inserting "repowered," after "recondi- 4 tinned,"; and 5 (5) by inserting "repowering," after "recondi- 6 tioning,". 7 (f) OBLIGATION OF DEPOSITS.--Section 53310 of 8 title 46, United States Code, is amended- 9 (1) in subsection (a)- 10 (A) by striking "a new vessel" each place 11 the term appears and inserting "an eligible ves- 12 sel"; and 13 (B) in paragraph (1)(A), by striking "or 14 reconditioning" and inserting ", repowering, or 15 reconditioning"; and 16 (2) by striking subsections (b) and (c) and in- 17 serting the following: 18 "(b) ADDITIONAL REQUIREMENTS FOR CERTAIN 19 VESSELS.-In addition to the requirements of subsection 20 (a)(1), for an eligible vessel not constructed under the con- 21 struction-differential program or not bought from the Sec- 22 retary of Transportation, construction shall commence 23 with reasonable dispatch after the date of the construction 24 contract, as determined by the Secretary of Transpor- OST-2025-1200 Page 00556 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012237 B0M24567 S6J S.L.C. 186 1 tation and certified by such Secretary to the Secretary of 2 the Treasury. 3 "(c) EXTENSIONS.--The Secretary of Transportation 4 may grant extensions of the period within which the depos- 5 its must be expended or obligated, except that such exten- 6 sions may not be for a total of more than 15 years for 7 the expenditure or obligation of deposits.". 8 (g) TAXATION OF DEPOSITS ON FAILURE OF CONDI- 9 TIONS.--Section 53311(3) of title 46, United States Code, 10 is amended by striking "to the extent of 5 percent of coin- 11 pletion". 12 (h) CLERICAL AMENDMENT.--The table of sections 13 for chapter 533 of title 46, United States Code, is amend- 14 ed by striking the item relating to section 53307 and in- 15 serting the following: "53307. Basis for determining gain or loss and for depreciating eligible vessels.". 16 SEC. 505. CAPITAL CONSTRUCTION FUND. 17 (a) IN GENERAL.--Chapter 535 of subtitle V of title 18 46, United States Code, is amended- 19 (1) in section 53501- 20 (A) by redesignating paragraphs (2), (3), 21 (4), (5), (6), (7), (8), and (9), as paragraphs 22 (3), (5), (7), (8), (9), (10), (11), and (12), re- 23 spectively; OST-2025-1200 Page 00557 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012238 BOM24567 S6J S.L.C. 187 1 (B) by inserting after paragraph (1) the 2 following: 3 "(2) CARGO HANDLING EQUIPMENT.--The term 4 `cargo handling equipment' means any vehicle or 5 land-based equipment (excluding marine container 6 chassis, but including cargo-handling equipment that 7 emits less than 1 gram of CO2(kWh)), and the asso- 8 ciated marine terminal or port landside infrastruc- 9 ture, used at a marine terminal to lift or move 10 cargo- 11 "(A) manufactured in the United States 12 (including any territory or possession of the 13 United States); or 14 "(B) manufactured outside of the United 15 States, if such equipment is not produced in the 16 United States in sufficient and reasonably 17 available quantities or of a satisfactory quality 18 as determined by the Secretary."; 19 (C) by inserting after paragraph (3), as re- 20 designated by subparagraph (A), the following: 21 "(4) FOREIGN COMMERCE.--The term `foreign 22 commerce' means- 23 "(A) commerce or trade between the 24 United States, its territories or possessions, or OST-2025-1200 Page 00558 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012239 B0M24567 S6J S.L.C. 188 1 the District of Columbia, and a foreign country; 2 and 3 "(B) commerce or trade between foreign 4 countries."; 5 (D) by inserting after paragraph (5), as 6 redesignated by subparagraph (A), the fol- 7 lowing: 8 "(6) MARINE TERMINAL.--The term `marine 9 terminal' means wharves, bulkheads, quays, piers, 10 docks, and other berthing locations and adjacent 11 storage or adjacent areas and structures associated 12 with the primary movement of cargo or materials 13 from vessel to shore, or from shore to vessel, includ- 14 ing structures which are devoted to receiving, han- 15 dling, holding, consolidating, loading, or delivery of 16 waterborne shipments, including areas devoted to 17 the maintenance of the terminal or equipment."; and 18 (E) in paragraph (3)(A)(iii), as redesig- 19 nated by subparagraph (A), by striking "foreign 20 or domestic trade of the United States" and in- 21 serting "foreign commerce or domestic trade of 22 the United States"; and 23 (F) in paragraph (8)(A)(iii), as redesig- 24 nated by subparagraph (A), by striking "foreign 25 or domestic trade of the United States" and in- OST-2025-1200 Page 00559 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012240 B0M24567 S6J S.L.C. 189 1 serting "foreign commerce or domestic trade of 2 the United States"; 3 (2) in section 53503- 4 (A) by striking subsection (a) and insert- 5 ing the following: 6 "(a) IN GENERAL.- 7 "(1) CITIZEN AGREEMENTS.--A citizen of the 8 United States may make an agreement with the Sec- 9 retary under this chapter to establish a capital con- 10 struction fund for a vessel if that citizen- 11 "(A) owns or leases an eligible vessel; or 12 "(B) commits, as a part of such agree- 13 meat, to build and operate an eligible vessel not 14 later than 5 years after establishing the capital 15 construction fund. 16 "(2) OPERATOR AGREEMENTS.--An operator of 17 a United States marine terminal may make an 18 agreement with the Secretary under this chapter to 19 establish a capital construction fund for the marine 20 terminal."; and 21 (B) by striking subsection (b), and insert- 22 ing the following: 23 "(b) ALLOWABLE PURPOSE.--The purpose of the 24 agreement shall be to provide-- OST-2025-1200 Page 00560 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012241 BOM24567 S6J S.L.C. 190 1 "(1) replacement vessels, additional vessels, or 2 reconstructed vessels, built in the United States and 3 documented under the laws of the United States, for 4 operation in the foreign commerce or domestic trade 5 of the United States or in the fisheries of the United 6 States; or 7 "(2) replacement cargo handling equipment, ad- 8 ditional cargo handling equipment, or reconstructed 9 cargo handling equipment for operation at marine 10 terminals in the United States."; 11 (3) in section 53504(b), by inserting "or United 12 States marine terminal" after "agreement vessel"; 13 (4) by striking section 53505 and inserting the 14 following: 15 " 53505. Ceiling on deposits 16 "(a) MAx[Mum DEPOSITS.--The amount deposited in 17 a capital construction fund for a taxable year may not ex- 18 ceed the amount specified in the agreement under section 19 53503(a), which shall be an amount that is related to a 20 commitment to invest the revenue from the capital con- 21 struction fund into funding the construction of new vessels 22 or funding cargo handling equipment. 23 "(b) REVENUE.--For the purposes of subsection (a), 24 the revenue from the capital construction fund may in- 25 dude-- OST-2025-1200 Page 00561 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012242 BOM24567 S6J S.L.C. 191 1 "(1) income attributable to the operation of the 2 agreement vessel in foreign commerce or domestic 3 trade or fisheries or the operation of a marine ter- 4 minal in the United States; 5 "(2) the amount allowable as a deduction under 6 section 167 of the Internal Revenue Code of 1986 7 for the taxable year with respect to the agreement 8 vessels or cargo handling equipment; 9 "(3) the net proceeds from the disposition of an 10 agreement vessel or cargo handling equipment or in- 11 surance or indemnity attributable to the vessel or 12 cargo handling equipment; and 13 "(4) the receipts from the investment or rein- 14 vestment of amounts held in the fund. 15 "(c) REDUCTIONS FOR LESSEES.--For a lessee, the 16 maximum amount that may be deposited for an agreement 17 vessel under subsection (a) for any period shall be reduced 18 by any amount the owner is required or permitted, under 19 the capital construction fund agreement, to deposit for 20 that period for the vessel under subsection (a)."; 21 (5) in section 53506- 22 (A) in subsection (a), by striking "Except 23 as provided in subsection (b), amounts in the 24 fund may be invested only in interest-bearing 25 securities approved by the Secretary."; and OST-2025-1200 Page 00562 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012243 B0M24567 S6J S.L.C. 192 1 (B) in subsection (b), by striking "With 2 the approval of the Secretary, an agreed per- 3 centage (but not more than 60 percent) of the 4 assets of the fund" and inserting "An agreed 5 percentage of the assets of the fund"; 6 (6) in section 53509- 7 (A) by striking subsection (a), and insert- 8 ing the following: 9 "(a) IN GENERAL.--Subject to subsections (b) and 10 (c), a withdrawal from a capital construction fund is a 11 qualified withdrawal if it is made under the terms of the 12 agreement and is for- 13 "(1) the acquisition, construction, repowering, 14 or reconstruction of- 15 "(A) a qualified vessel or a barge or con- 16 tainer that is part of the complement of a quali- 17 fled vessel; or 18 "(B) cargo handling equipment; or 19 "(2) the payment of the principal on indebted- 20 ness incurred in the acquisition, construction, 21 repowering, or reconstruction of- 22 "(A) a qualified vessel or a barge or con- 23 tainer that is part of the complement of a quali- 24 Pied vessel; or 25 "(B) cargo handling equipment."; OST-2025-1200 Page 00563 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012244 BOM24567 S6J S.L.C. 193 1 (B) by redesignating subsection (c) as sub- 2 section (e); and 3 (C) by inserting after subsection (b) the 4 following: 5 "(c) FULLY AUTOMATED CARGO HANDLING EQUIP- 6 MENT.--No withdrawals may be made from a capital con- 7 struction fund to purchase fully automated cargo handling 8 equipment that is remotely operated or remotely mon- 9 itored with or without the exercise of human intervention 10 or control, if the Secretary determines such equipment 11 would result in a net loss of jobs within a marine terminal. 12 "(d) PROHIBITION ON CERTAIN CRANES.--No with- 13 drawals may be made from a capital construction fund to 14 purchase cranes manufactured in the People's Republic of 15 China or by foreign entities of concern (as defined in sec- 16 tion 4 of the SHIPS for America Act of 2024)."; 17 (7) in section 53510- 18 (A) in subsection (b), by inserting "cargo 19 handling equipment," after "barge," both 20 places the term appears; 21 (B) in subsection (c), by inserting "cargo 22 handling equipment," after "barge," both 23 places the term appears; and 24 (C) in subsection (d), by inserting "cargo 25 handling equipment," after "barges,"; OST-2025-1200 Page 00564 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012245 B0M24567 S6J S.L.C. 194 1 (8) in section 53511(e)(1), by striking the table 2 contained therein and inserting the following: "If the amount remains in the The applicable percentage is- fund at the close of the- 16th taxable year 17th taxable year 18th taxable year 19th taxable year 20th taxable year 20 percent 40 percent .60 percent 80 percent 100 percent"; 3 and 4 (9) in section 53512(b)(1), by adding "cargo 5 handling equipment," after "advanced". 6 (b) CARGO HANDLING EQUIPMENT AVAILABILITY.- 7 The Secretary shall annually publish in the Federal Reg- 8 ister a request for information regarding the availability 9 of cargo handling equipment manufactured in the United 10 States and shall share the results of such request for infor- 11 mation with capital construction fund holders. 12 SEC. 506. ANTICIPATED COMMERCIAL VESSEL CONSTRUC- 13 TION SURVEY. 14 (a) IN GENERAL.--Chapter 501 of title 46, United 15 States Code, is amended by adding at the end the fol- 16 lowing: 17 " 50115. Anticipated commercial vessel construction 18 survey 19 "(a) DEFINITION.-In this section, `commercial ves- 20 sel of the United States' means a vessel that is docu- 21 mented under the laws of the United States, not less than 22 6,000 deadweight tons, and operated in the domestic trade OST-2025-1200 Page 00565 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012246 BOM24567 S6J S.L.C. 195 1 of the United States or foreign commerce, and may in- 2 elude- 3 "(1) a bulk carrier vessel; 4 "(2) a tanker vessel; 5 "(3) a roll-on/roll-off vessel; 6 "(4) a liquefied natural gas tanker vessel; 7 "(5) a container vessel; 8 "(6) a multi-purpose vessel; 9 "(7) a cable vessel (as defined in section 10 53201) 11 "(8) a heavy-lift vessel; or 12 "(9) any other type of vessel determined appro- 13 priate by the Administrator, in consultation with the 14 Maritime Security Board. 15 "(b) IN GENERAL.--Not later than 180 days after 16 the date of enactment of this section, and annually there- 17 after, the Maritime Administrator shall conduct a survey 18 of owners, agents, or operators of commercial vessels of 19 the United States to identify plans for the construction, 20 maintenance, and modernization of commercial vessels of 21 the United States. 22 "(c) PURPOSE.--The purpose of the survey con- 23 ducted under this section is to inform the maritime indus- 24 trial base of the future need for the construction of com- 25 mercial vessels. OST-2025-1200 Page 00566 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012247 BOM24567 S6J S.L.C. 196 1 "(d) INCLUSIONS.-In conducting the survey under 2 this section, the Maritime Administrator shall collect the 3 following information from owners, agents, or operators 4 of commercial vessels of the United States who participate 5 in the survey: 6 "(1) The number of commercial vessels of the 7 United States the participant is looking to construct 8 during the 10-year period beginning on the date on 9 which the participant takes the survey. 10 "(2) The capabilities of the vessels described in 11 paragraph (1) that the participant is seeking in con- 12 structing such vessels. 13 "(3) Estimated timelines for when the partici- 14 pant aims to place each such vessel into service. 15 "(4) The number of major repairs of commer- 16 cial vessels of the United States and overhauls of 17 such commercial vessels the participant is looking to 18 carry out during the 10-year period described in 19 paragraph (1). 20 "(5) The major components that a shipbuilder 21 would need from industrial base suppliers to support 22 the construction, overhaul, or repair of commercial 23 vessels of the United States during such 10-year pe- 24 riod. OST-2025-1200 Page 00567 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012248 BOM24567 S6J S.L.C. 197 1 "(6) Estimates for the capital expenditures the 2 participant is planning to make for the construction, 3 overhaul, or repair of commercial vessels of the 4 United States during such 10-year period. 5 "(7) Any additional information the Maritime 6 Administrator determines appropriate. 7 "(e) PARTICIPATION.--The Administrator may not 8 require any owner, agent, or operator of a commercial yes- 9 sel of the United States to participate in the survey unless 10 that owner, agency, or operator is participating in a finan- 11 cial assistance program established under part C of this 12 subtitle. 13 "(f) RELEASE OF FINDINGS.- 14 "(1) DISTRIBUTION.--Each year, the Maritime 15 Administrator may release the findings of the survey 16 with shipyards in the United States and other mari- 17 time industrial base stakeholders the results of the 18 survey conducted under this section for such year in 19 such a manner as the Administrator determines ap- 20 propriate. 21 "(2) PROPRIETARY INFORMATION.--Notwith- 22 standing any other provision of law, including sec- 23 tion 552 of title 5, United States Code, at the re- 24 quest of a survey participant, the Maritime Adminis- 25 trator shall withhold proprietary information pro- OST-2025-1200 Page 00568 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012249 BO11124567 S6J S.L.C. 198 1 \Tided as a part of a survey conducted under this sec- 2 tion. 3 "(3) COORDINATION.--To the maximum extent 4 practicable, the Maritime Administrator shall seek to 5 conduct the annual surveys under this section and 6 publish the results of such surveys on a similar 7 timeline as the timeline for the annual naval vessel 8 construction plans under section 231(a)(1) of title 9 10 and other shipbuilding construction surveys pub- 10 fished by other Federal agencies.". 11 (b) CLERICAL AMENDMENT.--The table of sections 12 for chapter 501 of title 46, United States Code, is amend- 13 ed by inserting after the item relating to section 50114 14 the following: "50115. Anticipated commercial vessel construction survey.". 15 SEC. 507. STREAMLINED ENVIRONMENTAL REVIEW. 16 Section 41001(6) of the Fixing America's Surface 17 Transportation Act (42 U.S.C. 4370m(6)) is amended- 18 (1) in subparagraph (A)- 19 (A) in the matter preceding clause (i), by 20 inserting "the maritime industry" after "water- 21 ways,"; 22 (B) by redesignating clauses (iii) and (iv) 23 as clauses (iv) and (v), respectively; and 24 (C) by inserting after clause (ii) the fol- 25 lowing: OST-2025-1200 Page 00569 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012250 B0M24567 S6J S.L.C. 199 1 "(iii) is covered by a programmatic 2 plan or environmental review developed for 3 a project related to the maritime indus- 4 try;"; and 5 (2) by adding at the end the following: 6 "(D) MARITIME INDUSTRY.--For the pur- 7 poses of subparagraph (A), the term `construe- 8 tion of infrastructure' for the maritime industry 9 includes construction of- 10 "(i) shipyards and ship repair facili- 11 ties; 12 "(ii) port terminals and other port fa- 13 cilities; 14 "(iii) manufacturing facilities for 15 equipment and technology instrumental to 16 the facilitation of maritime trade and com- 17 merce, as defined by the Council; and 18 "(iv) other industrial base facilities 19 that support the Navy or the merchant 20 marine of the United States.". 21 SEC. 508. ELIGIBILITY FOR LOAN GUARANTEES. 22 Section 1703(b) of the Energy Policy Act of 2005 23 (42 U.S.C. 16513(b)) is amended by inserting at the end 24 the following: OST-2025-1200 Page 00570 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012251 BOM24567 S6J S.L.C. 200 1 "(14) Marine transportation systems, including 2 commercial vessels of the United States, shipyards, 3 marine terminals, and port facilities.". 4 SEC. 509. REPORTS. 5 (a) REPORT ON NATIONAL DEFENSE RESERVE 6 FLEET.- 7 (1) IN GENERAL.--Not later than 180 days 8 after the date of enactment of this Act, and every 9 2 years thereafter, the Maritime Administrator, in 10 consultation with the Commander of the United 11 States Transportation Command and the Secretary 12 of the Navy, and in accordance with paragraph (2), 13 shall submit to the appropriate committees of Con- 14 gress and the Maritime Security Board a report- 15 (A) outlining a plan for using the ship- 16 building financial incentives program authorized 17 under section 53801 of title 46, United States 18 Code, as added by section 501, and the finan- 19 vial incentive programs under subpart C of sub- 20 title V of title 46, United States Code, to sup- 21 plement the size and readiness of the National 22 Defense Reserve Fleet and to improve national 23 shipbuilding and shipping infrastructure; and 24 (B) describing ways in which an expanded 25 and creative view of the make-up of vessels with OST-2025-1200 Page 00571 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012252 BOM24567 S6J S.L.C. 201 1 Voluntary Intermodal Sealift Agreements or 2 Voluntary Tanker Agreements and the ship- 3 building financial incentives program authorized 4 under such section can be used to ensure gov- 5 eminent access to other vessels that are critical 6 to national security, such as icebreakers, oil and 7 natural gas tankers, floating dry docks, salvage 8 vessels, dredges, ocean tugs, offshore construe- 9 tion vessels, multi-use workboats, and commer- 10 cial shipping vessels using small nuclear reac- 11 tors. 12 (2) ADDITIONAL CONSULTATION.-In preparing 13 the report under paragraph (1), the Maritime Ad- 14 ministrator shall also consult with the Secretary of 15 Commerce and the Secretary of Energy with respect 16 to shipping vessels or mobile maritime power plants 17 using small nuclear reactors. 18 (b) REPORT ON DE-RISKING MARITIME SECTOR.- 19 Not later than 180 days after the date of enactment of 20 this Act, and every 2 years thereafter, the Secretary of 21 Defense and the Secretary of Homeland Security, in co- 22 ordination with the Secretaries of Treasury and State, the 23 Maritime Administrator, the United States Trade Rep- 24 resentative, and the Director of the Office of Management 25 and Budget, shall submit to the appropriate committees OST-2025-1200 Page 00572 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012253 B0M24567 S6J S.L.C. 202 1 of Congress and the Maritime Security Board a report 2 outlining a comprehensive strategy for de-risking the 3 United States maritime domain from the People's Repub- 4 lic of China and other asymmetric or emerging maritime 5 threats. 6 (c) REPORT ON RESTRICTING FLOW OF CAPITAL TO 7 CCP.--Not later than 180 days after the date of enact- 8 ment of this Act, the Secretary of Transportation, the Sec- 9 retary of Defense, the Secretary of Commerce, the Sec- 10 retary of State, and the Secretary of the Treasury shall 11 submit to the appropriate committees of Congress and the 12 Maritime Security Board a report on ways and means for 13 restricting the flow of capital from the United States to 14 Chinese Communist Party maritime industries, which 15 shall include recommendations for promoting the flow of 16 capital within and between the United States and treaty 17 allies of the United States. The report shall also include 18 a survey of banks, pension funds, and large financial insti- 19 tutions, with recommendations for ways the United States 20 can incentivize domestic financial investments in the mari- 21 time industry. 22 SEC. 510. EXPORT CONTROL REPORT. 23 Not later than 1 year after the date of enactment 24 of this Act, the Secretary of State shall submit to Con- 25 gress a report assessing methods to reduce the use of ex- OST-2025-1200 Page 00573 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012254 BOM24567 S6J S.L.C. 203 1 port controls and other restrictions under the Arms Ex- 2 port Control Act (22 U.S.C. 2751 et seq.) and the Inter- 3 national Traffic in Arms Regulations under subchapter M 4 of chapter I of title 22, Code of Federal Regulations, or 5 successor regulations, that limit the ability of foreign- 6 owned marine industrial base companies to participate in 7 the United States shipbuilding industry, specifically in- 8 eluding shipbuilding for the Federal Government, while 9 ensuring appropriate safeguards for United States-based 10 firms and American workers. 11 Subtitle B Department of Defense 12 Programs 13 SEC. 511. ASSESSMENT OF THE USE OF COMMERCIAL BEST 14 PRACTICES FOR NAVY SHIPBUILDING. 15 (a) ASSESSMENT.- 16 (1) IN GENERAL.--The Secretary of the Navy, 17 in coordination with the Secretary of Transportation 18 and the Secretary of the Department in which the 19 Coast Guard is operating, shall- 20 (A) conduct an assessment of best prac- 21 tices used in the construction and repair of 22 commercial, oceangoing maritime vessels; and 23 (B) identify- 24 (i) opportunities for the Navy and 25 Coast Guard to leverage those best prac- OST-2025-1200 Page 00574 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012255 B0M24567 S6J S.L.C. 204 1 tices to make ship construction and repair 2 efforts of combatant and non-combatant 3 vessels more efficient; and 4 (ii) advanced technologies that can be 5 leveraged to improve the overall readiness 6 and dominance of the United States mari- 7 time fleet (both commercial and military), 8 to specifically include small modular reac- 9 tors for ship power and propulsion. 10 (2) ELEMENTS.--The assessment required by 11 paragraph (1) shall include the following: 12 (A) An evaluation of the best practices de- 13 scribed in subparagraph (A) of such paragraph, 14 including best practices used by commercial 15 shipyards in foreign allied countries, consider- 16 ation of commercial design standards, and the 17 vessel construction manager model used to con- 18 struct the National Security Multi Mission Ves- 19 sel Program, that could improve the efficiency 20 of shipbuilding and repair by the Navy and 21 Coast Guard. 22 (B) An identification of commercial-grade 23 components and capabilities being used in state- 24 of-the-art commercial, oceangoing maritime ves- 25 sels and an assessment of whether the Navy OST-2025-1200 Page 00575 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012256 B0M24567 S6J S.L.C. 205 1 and Coast Guard could better use commercial 2 off-the-shelf components or capabilities to re- 3 duce costs, improve efficiencies, or enhance ca- 4 pabilities in the construction of new naval ves- 5 sels and cutters, and in repair of naval vessels 6 and cutters. 7 (C) A determination as to whether ship- 8 building and acquisition programs of the Navy 9 and Coast Guard use modern best practices 10 from the commercial maritime industry in 11 terms of contracting, ship design, construction, 12 overhaul, and maintenance. 13 (D) An identification of technologies and 14 procedures that are used in commercial ship- 15 building that, if used by the Navy and Coast 16 Guard, would improve the efficiency of design- 17 ing and constructing new naval vessels. 18 (E) An identification of technologies and 19 procedures that are used in commercial ship- 20 building and repair that, if used by the Navy 21 and Coast Guard, would improve the efficiency 22 of repairing naval vessels. 23 (F) An identification of opportunities to 24 improve commonality in ship design, ship com- 25 ponents, and shipbuilding procedures between OST-2025-1200 Page 00576 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012257 B0M24567 S6J S.L.C. 206 1 commercial, oceangoing maritime vessels, naval 2 vessels, and cutters that could lead to improved 3 efficiencies and a more resilient industrial base 4 to support shipbuilding and repair for military 5 and civil maritime vessels. 6 (G) An identification of advanced nuclear 7 technologies that are under development for use 8 in commercial shipbuilding that, if used by the 9 Navy and Coast Guard, would improve the 10 operational capability of naval vessels and cut- 11 ters. 12 (H) An identification of the barriers pre- 13 venting or making prohibitive the use of small 14 modular reactors in naval or commercial, ocean- 15 going maritime vessels, including- 16 (i) ambiguity in regulations governing 17 nuclear propulsion restricting the commer- 18 vial maritime industry from utilizing nu- 19 clear propulsion or collaborating between 20 United States and foreign entities under 21 export controls requirements, including 22 section 744.5 of title 15, Code of Federal 23 Regulations (or a similar successor regula- 24 tion); and OST-2025-1200 Page 00577 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012258 B0M24567 S6J S.L.C. 207 1 (ii) a lack of clarity in the meaning of 2 "maritime (civil) nuclear propulsion plant 3 projects" contained in the Export Adminis- 4 tration Regulations and "Naval Nuclear 5 Propulsion" contained in the International 6 Traffic in Arms Regulations (Cat VI). 7 (I) An evaluation of education and tech- 8 nology development best practices used by com- 9 mercial shipyards in foreign allied countries, 10 and an identification of education and tech- 11 nology development opportunities, that could 12 improve the efficiency of shipbuilding and re- 13 pair by the Navy and Coast Guard. 14 (J) An evaluation of whether adoption of 15 the best practices evaluated under subpara- 16 graph (A) for the construction and repair of 17 naval vessels and cutters would support the do- 18 mestic commercial maritime shipbuilding indus- 19 try, the commercial maritime industrial base, 20 and the merchant marine of the United States. 21 (b) BRIEFING.--Not later than 180 days after the 22 date of the enactment of this Act, the Secretary of the 23 Navy shall provide to the congressional defense commit- 24 tees a briefing on-- OST-2025-1200 Page 00578 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012259 BOM24567 S6J S.L.C. 208 1 (1) the results of the assessment required by 2 subsection (a); and 3 (2) a plan to execute any measures pursuant to 4 such assessment. 5 (c) STRATEGY REQUIRED.--Not later than 1 year 6 after the date of enactment of this Act, and biennially 7 thereafter, the Secretary of the Navy and Secretary of the 8 Department in which the Coast Guard is operating shall- 9 (1) provide to the appropriate committees of 10 Congress strategies describing how measures identi- 11 fled as a result of the assessment required by sub- 12 section (a) will be incorporated into shipbuilding 13 programs for the Navy and Coast Guard; and 14 (2) publish a public version of the strategies. 15 (d) CONGRESSIONAL DEFENSE COMMITTEES DE- 16 FINED.-In this section, the term "congressional defense 17 committees" has the meaning given that term in section 18 101(a) of title 10, United States Code. 19 SEC. 512. PLAN OF ACTION FOR USE OF DEFENSE PRODUC- 20 TION ACT OF 1950 AUTHORITIES. 21 (a) IN GENERAL.--Not later than 180 days after the 22 date of the enactment of this Act, the President shall sub- 23 mit to the appropriate committees of Congress a report 24 on a plan of action for any use of authorities available OST-2025-1200 Page 00579 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012260 BOM24567 S6J S.L.C. 209 1 under title III of the Defense Production Act of 1950 (50 2 U.S.C. 4531 et seq.)- 3 (1) to establish or enhance a domestic produc- 4 tion capability for the construction of militarily use- 5 ful, commercial maritime vessels that can be oper- 6 ated in foreign commerce or the domestic commerce 7 of the United States; 8 (2) to establish, improve, or enhance the de- 9 fense shipyard industrial base; or 10 (3) to establish, improve, or enhance maritime 11 port infrastructure of the United States, including 12 containers and ship-to-shore cranes that were built 13 in the United States and are owned by citizens of 14 the United States. 15 (b) COORDINATION.--The President shall develop the 16 plan of action required by subsection (a) in consultation 17 with- 18 (1) the maritime security advisor (as estab- 19 fished by this Act); 20 (2) the Maritime Security Board (as established 21 by this Act); 22 (3) an advisory committee established under 23 section 708(d) of the Defense Production Act of 24 1950 (50 U.S.C. 4558(d)); and OST-2025-1200 Page 00580 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012261 BOM24567 S6J S.L.C. 210 1 (4) such stakeholders in the private sector as 2 the President considers appropriate. 3 (c) APPROPRIATE COMMITTEES OF CONGRESS DE- 4 FINED.-In this section, the term "appropriate commit- 5 tees of Congress" means- 6 (1) the Committee on Armed Services, the 7 Committee on Commerce, Science, and Transpor- 8 tation, and the Committee on Appropriations of the 9 Senate; and 10 (2) the Committee on Armed Services, the 11 Committee on Transportation and Infrastructure, 12 and the Committee on Appropriations of the House 13 of Representatives. 14 SEC. 513. STRATEGY ON DEVELOPMENT OF NAVAL REARM- 15 AT-SEA CAPABILITY. 16 (a) STRATEGY REQUIRED.- 17 (1) IN GENERAL.--Not later than 180 days 18 after the date of the enactment of this Act, the Sec- 19 retary of the Navy shall submit to the congressional 20 defense committees a strategy for delivering a 21 rearm-at-sea capability to the surface fleet of the 22 Navy. 23 (2) ELEMENTS.--Such strategy required under 24 paragraph (1) shall include each of the following: OST-2025-1200 Page 00581 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012262 B0M24567 S6J S.L.C. 211 1 (A) A plan to develop, by not later than 3 2 years after the date of the enactment of this 3 Act, the capability to employ transportable re- 4 arming mechanism equipment to load missile 5 canisters into MK 41 vertical launch system 6 cells on Navy destroyers, including- 7 (i) an identification of the current and 8 planned investments of the Navy in tech- 9 nology development to achieve such capa- 10 bility; and 11 (ii) the anticipated cost and schedule 12 for such investments. 13 (B) A plan for the key milestone events 14 and associated dates in the development of such 15 capability. 16 (C) A plan to coordinate with allies of the 17 United States that use variants of the MK 41 18 vertical launch system manufactured by the 19 United States to jointly procure rearm-at-sea 20 capabilities. 21 (D) An identification of any courses of ac- 22 tion the Secretary of the Navy is considering 23 other than the plans referred to in subpara- 24 graphs (A) through (C) to address the gap be- 25 tween the rearm-at-sea capabilities of the OST-2025-1200 Page 00582 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012263 BO11124567 S6J S.L.C. 212 1 United States and the capabilities of other 2 countries, including the use of uncrewed tech- 3 nologies, and other commercial off-the-shelf 4 components or capabilities. 5 (E) Such other matters as the Secretary 6 determines appropriate. 7 (b) BRIEFING.--Not later than 90 days after the date 8 of the enactment of this Act, the Secretary of the Navy 9 shall provide to the congressional defense committees a 10 written briefing on the development of the strategy re- 11 quired under subsection (a). 12 SEC. 514. MILITARY SEALIFT COMMAND. 13 (a) AUTHORITY TO OFFER INCREASED PAID LEAVE 14 ACCRUAL.--The Secretary of the Navy is authorized to 15 offer government merchant mariners employed by Military 16 Sealift Command paid leave accrual at a faster rate than 17 provided pursuant to the standard General Schedule (GS) 18 system to make government seafaring jobs more competi- 19 tive with the commercial sector. 20 (b) REPORT ON RECRUITING AND RETENTION EF- 21 FORTS.- 22 (1) IN GENERAL.--Not later than 180 days 23 after the date of the enactment of this Act, and an- 24 nually thereafter, the Secretary of the Navy, in co- 25 ordination with the Commander of the Military Sea- OST-2025-1200 Page 00583 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012264 BOM24567 S6J S.L.C. 213 1 lift Command and the Maritime Security Board, and 2 in consultation with the Commander of United 3 States Transportation Command, the Commander of 4 United States Fleet Forces Command, and the As- 5 sistant Secretary of the Navy for Research, Develop- 6 ment and Acquisition, shall submit to the appro- 7 priate committees of Congress a report on efforts to 8 improve recruitment and retention of Military Sealift 9 Command Mariners. 10 (2) ELEMENTS.--The report required under 11 paragraph (1) shall consider- 12 (A) opportunities to enhance the integra- 13 tion of Military Sealift Commander civilian 14 mariners into the military command structure; 15 (B) providing training on the roles and sig- 16 nificance of Military Sealift Command civilian 17 mariner workforce to relevant military com- 18 mands; and 19 (C) authorities required to improve recruit- 20 ment and retention of civilian mariners in Mili- 21 tart' Sealift Command. 22 (c) REPORT ON EXTENDING CHARTER DURA- 23 TIONS.--Not later than 90 days after the date of the en- 24 actment of this Act, the Secretary of the Navy shall sub- 25 mit to the appropriate committees of Congress a report OST-2025-1200 Page 00584 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012265 BOM24567 S6J S.L.C. 214 1 assessing the merits of extending the maximum charter 2 durations of commercial and specialty vessels for the Mili- 3 tart' Sealift Command. 4 Subtitle C--Shipbuilding 5 Innovation and Infrastructure 6 SEC. 521. UNITED STATES CENTER FOR MARITIME INNOVA- 7 TION. 8 (a) IN GENERAL.-Section 50307(e) of title 46, 9 United States Code, is amended- 10 (1) in paragraph (1), by inserting "through the 11 establishment, management, and coordination of 12 geographically and topically diverse maritime incuba- 13 tors" after "maritime transportation system"; and 14 (2) by striking paragraphs (2), (3), and (4), 15 and inserting the following: 16 "(2) COOPERATIVE AGREEMENT.--The coopera- 17 tive agreement shall be with an organization or per- 18 sons with substantial experience in the maritime in- 19 dustry, as determined by the Secretary, in consulta- 20 tion with the Maritime Security Board. 21 "(3) SELECTION.--The Center shall be- 22 "(A) selected through a competitive proc- 23 ess of eligible entities, and if a private entity, 24 a domestic entity; OST-2025-1200 Page 00585 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012266 BOM24567 S6J S.L.C. 215 1 "(B) based in the United States with tech- 2 nical expertise in emerging marine technologies 3 and practices related to the maritime transpor- 4 tation system; and 5 "(C) located in close proximity to eligible 6 entities with expertise in United States emerg- 7 ing maritime technologies and practices. 8 "(4) COORDINATION.--The Secretary of Trans- 9 portation shall coordinate with the Maritime Secu- 10 rity Board and other agencies critical for science, re- 11 search, and regulation of emerging marine tech- 12 nologies for the maritime sector, including the De- 13 partment of Defense, the Department of Energy, the 14 Environmental Protection Agency, the National 15 Science Foundation, the Coast Guard, the National 16 Oceanic and Atmospheric Association, and the Ma- 17 rine Board of the National Academies when estab- 18 fishing the Center. 19 "(5) RESPONSIBILITIES.--The Center shall 20 carry out the following activities: 21 "(A) Establish and support maritime incu- 22 bators in accordance with paragraph (6). 23 "(B) Accelerate the adoption or integration 24 of commercial technologies within the maritime 25 industry to transform the capacity and capabili- OST-2025-1200 Page 00586 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012267 B0M24567 S6J S.L.C. 216 1 ties of the merchant marine of the United 2 States. 3 "(C) Serve as the principal liaison between 4 the Maritime Security Board and maritime in- 5 cubators. 6 "(D) Carry out programs, projects, and 7 other activities to strengthen the merchant ma- 8 rine of the United States and the maritime in- 9 dustrial base. 10 "(E) Coordinate and harmonize the activi- 11 ties of other organizations and elements of the 12 maritime industry on matters relating to coin- 13 mercial technologies, dual use technologies, and 14 the innovation of such technologies. 15 "(F) Coordinate and advise efforts among 16 elements of the maritime industry on matters 17 relating to the development, procurement, and 18 fielding of nontraditional capabilities and con- 19 nect entities developing those capabilities with 20 the relevant incubators. 21 "(G) Coordinate with maritime industry 22 stakeholders to identify operational challenges 23 that have the potential to be addressed through 24 the use of nontraditional capabilities, including OST-2025-1200 Page 00587 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012268 B0M24567 S6J S.L.C. 217 1 dual-use technologies that are being developed 2 and financed in the commercial sector. 3 "(H) Coordinate with maritime industry 4 stakeholders and relevant Federal agencies to 5 enhance the capacity and performance of sea- 6 ports of the United States, including through 7 hardening security, enhancing preparedness, 8 and developing United States-based supply 9 chains for port technologies and equipment. 10 "(I) Coordinate with other research and 11 development programs and centers focused on 12 modes of transportation besides maritime to de- 13 velop intermodal interoperability with the man- 14 time industry. 15 "(J) Develop a standard design for coin- 16 mercial vessels and components and features of 17 commercial vessels to be manufactured in the 18 United States, using mature, proven designs, 19 which- 20 "(i) includes, to the maximum extent 21 practicable, included parts, components, 22 and material manufactured in and sourced 23 from the United States; 24 "(ii) does not include any parts, com- 25 ponents, or materials manufactured by for- OST-2025-1200 Page 00588 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012269 B0M24567 S6J S.L.C. 218 1 eign entities of concern or which are pro- 2 duced in foreign countries of concern (as 3 such terms are defined in section 4 of the 4 SHIPS for America Act of 2024); and 5 "(iii) includes priorities for design 6 identified in consultation with the Sec- 7 retary of the Navy, as necessary for stra- 8 tegic sealift, informed by requirements to 9 sustain a wartime economy and military 10 operations. 11 "(K) Lead engagement with industry, aca- 12 demia, labor organizations, and other non- 13 governmental entities to develop- 14 "(i) innovative, commercial, and dual- 15 use manufacturing technologies and proc- 16 esses to construct, rehabilitate, or repair 17 maritime vessels of the Armed Forces or 18 the merchant marine of the United States; 19 "(ii) additional naval architecture pro- 20 grams at institutions of higher education 21 in the United States and to expand exist- 22 ing naval architecture programs; 23 "(iii) next-generation propulsion tech- 24 nologies for the merchant marine of the 25 United States, to include small modular re- OST-2025-1200 Page 00589 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012270 B0M24567 S6J S.L.C. 219 1 actors, low-emission propulsion tech- 2 nologies, and other renewable energy solu- 3 tions; 4 "(iv) new and innovative hardware, 5 software, and systems for remote or auton- 6 omous operations at ports, intennodal fa- 7 cilities, or aboard oceangoing vessels; 8 "(v) technology and infrastructure so- 9 lutions that enhance the safe operation of 10 oceangoing vessels to protect lives, prop- 11 erty, and the environment; 12 "(vi) solutions to recruit, train, and 13 retain a skilled workforce capable of sup- 14 porting a vibrant and growing United 15 States maritime industry; and 16 "(vii) the capacity of international al- 17 lies and partners of the United States, 18 with respect to manufacturing technologies 19 and processes, to construct, rehabilitate, or 20 repair maritime vessels. 21 "(L) Work with academic and private sec- 22 tor response training centers and Centers of 23 Excellence for Domestic Maritime Workforce 24 Training and Education to develop maritime 25 strategies applicable to various segments of the OST-2025-1200 Page 00590 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012271 BOM24567 S6J S.L.C. 220 1 United States maritime industry, including the 2 inland, deep water, and coastal fleets. 3 "(M) Establish programs and initiatives to 4 share- 5 "(i) shipbuilding best practices and 6 maritime technology between vessels of the 7 Department of Defense and commercial 8 vessels of the United States; and 9 "(ii) port technology and logistics best 10 practices between the Department of De- 11 fense and commercial port operators and 12 port authorities within the United States. 13 "(N) Carry out such other activities as the 14 Maritime Security Board determines appro- 15 priate. 16 "(6) ESTABLISHMENT OF MARITIME INCUBA- 17 TORS.- 18 "(A) ESTABLISHMENT.--The Center shall, 19 in consultation with the Maritime Security 20 Board, seek out, identify, and support the de- 21 velopment of and experimentation with commer- 22 cial technologies that have the potential to be 23 implemented within the maritime industry, 24 through the establishment of a series of mari- 25 time incubators. OST-2025-1200 Page 00591 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012272 BOM24567 S6J S.L.C. 221 1 "(B) REFLECTION.--Each incubator shall 2 reflect the unique nature of the region's capa- 3 bilities and academic and investor base. 4 "(C) SELECTION.-Incubators shall be- 5 "(i) selected through a competitive 6 process of eligible entities, and if a private 7 entity, a domestic entity; 8 "(ii) based in the United States with 9 technical expertise in emerging marine 10 technologies and practices related to the 11 maritime transportation system; 12 "(iii) based within a United States 13 maritime security investment zone as de- 14 fined in section 1400Z-3 of the Internal 15 Revenue Code of 1986 (as added by sec- 16 tion 708 of this Act); 17 "(iv) topic-specific, according to re- 18 gional maritime expertise in United States 19 emerging maritime technologies and prac- 20 tices, to include designated incubators fo- 21 cused on- 22 "(I) clean energy and alternative 23 fuels; 24 "(II) ports and shoreside infra- 25 structure; OST-2025-1200 Page 00592 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012273 B0M24567 S6J S.L.C. 222 1 "(III) vessel design and naval ar- 2 chitecture; 3 "(IV) shipbuilding and next gen- 4 eration manufacturing; and 5 "(V) other areas for maritime in- 6 novation and technology, as deter- 7 mined by the Center in coordination 8 with the Maritime Security Board. 9 "(D) INCUBATOR RESPONSIBILITIES.- 10 Each maritime incubator shall- 11 "(i) serve as the principal liaison be- 12 tween the Center and individuals and enti- 13 ties that can contribute to innovation with- 14 in the maritime industry, including other 15 maritime incubators under this subsection, 16 entrepreneurs, startups, commercial tech- 17 nology companies, and venture capital 18 sources; and 19 "(ii) establish and support multi- 20 stakeholder research and innovation part- 21 nerships, as described in subparagraph 22 (G). 23 "(E) REPORT.--Each incubator shall sub- 24 mit quarterly activity and status reports to the 25 Center. OST-2025-1200 Page 00593 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012274 BOM24567 S6J 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 S.L.C. 223 "(F) REVIEW AND TERMINATION."(i) IN GENERAL.--The Maritime Administrator may, in consultation with the Maritime Security Board, terminate an agreement with an eligible entity selected to lead a maritime incubator if the Administrator certifies that the eligible entity is failing to meet the requirements of this section. "(ii) RESELECTION.-If the Administrator terminates an agreement with an eligible entity to lead a maritime incubator, the Center shall initiate a new selection process as required under subparagraph (C) to select a new eligible entity. "(iii) REVIEW OF ELIGIBLE ENTITIES.--Not later than 5 years after the establishment of maritime incubators under this paragraph, and every 5 years thereafter, the Administrator, in coordination with the Maritime Security Board, shall conduct a review of all eligible entities selected to lead a maritime incubator and confirm the entity is adequately fulfilling the requirements of this section. OST-2025-1200 Page 00594 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012275 BOM24567 S6J S.L.C. 224 1 "(G) MULTI-STAKEHOLDER PARTNER- 2 SHIPS.- 3 "(i) IN GENERAL.--The maritime in- 4 cubators established under this subsection 5 shall establish and support multi-stake- 6 holder research and innovation partner- 7 ships that-- 8 "(I) have the potential to gen- 9 erate technologies, processes, prod- 10 ucts, or other solutions that support 11 the United States maritime industry; 12 "(II) have as an objective the 13 technology transfer or commercializa- 14 tion of the work product generated by 15 the partnership, which may include 16 work product that incorporates intel- 17 lectual property developed by the Fed- 18 eral Government and licensed to the 19 partnership in accordance with clause 20 (iii); and 21 "(III) incentivize and expand 22 geographically diverse participation in 23 graduate and undergraduate institu- 24 tions of higher education, community OST-2025-1200 Page 00595 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012276 BOM24567 S6J 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 S.L.C. 225 college, and other workforce programs relevant to the maritime industry. "(ii) SUPPORT PROVIDED.--Support provided by the maritime incubator to a multi-stakeholder research and innovation partnership under this subsection may inelude-- "(I) providing funding or other resources to the partnership; "(II) participating in the partnership; "(III) providing technical and technological advice and guidance to the partnership; "(IV) suggesting and introducing other participants for inclusion in the partnership; "(V) providing the partnership with insight into desired solutions for defense and security needs; "(VI) providing access to Ready Reserve ships for testing new technologies and conducting research, as the maritime incubator determines ap- OST-2025-1200 Page 00596 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012277 BOM24567 S6J S.L.C. 226 1 propriate, in coordination with the 2 Center and the Administrator; and 3 "(VII) such other forms of sup- 4 port as the Center, in consultation 5 with maritime incubators and Mari- 6 time Security Board, determines ap- 7 propriate. 8 "(iii) AVAILABILITY OF INTELLEC- 9 TUAL PROPERTY.--To the extent the Cen- 10 ter determines appropriate, the Center, in 11 coordination with the maritime incubators, 12 shall seek to actively inform potential par- 13 ticipants in multi-stakeholder research and 14 innovation partnerships of the availability 15 of intellectual property developed by the 16 Federal Government that may be licensed 17 to the partnership. 18 "(7) REPORT.--Not later than 180 days after 19 the date of enactment of the SHIPS for America 20 Act of 2024, and annually thereafter, the Center 21 shall submit to the Maritime Security Board and the 22 appropriate congressional committees a report on 23 the activities, advances, outcomes, and work product 24 of the maritime incubators and the multi-stakeholder OST-2025-1200 Page 00597 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012278 B0M24567 S6J 227 S.L.C. 1 research and innovation partnerships supported 2 under this subsection. 3 "(8) AUTHORIZATION OF APPROPRIATIONS.-In 4 addition to the funding contributed under subsection 5 (a)(4), there is authorized to be appropriated, out of 6 the Maritime Security Trust Fund established under 7 section 9512 of the Internal Revenue Code of 1986, 8 $50,000,000 for each of fiscal years 2025 through 9 2034. 10 "(9) DEFINITIONS.-In this subsection: 11 "(A) MULTI-STAKEHOLDER RESEARCH 12 AND INNOVATION PARTNERSHIP.--The term 13 `multi-stakeholder research and innovation part- 14 nership' means a partnership composed of any 15 combination of 2 or more of the following: 16 "(i) Institutions of higher education 17 (as defined in section 102 of the Higher 18 Education Act of 1965 (20 U.S.C. 1002)) 19 with research and innovation capability. 20 "(ii) Nonprofit organizations that pro- 21 vide policy, research, outreach, operations, 22 organizational, management, testing, eval- 23 uation, technology transfer, legal, financial, 24 or advocacy expertise. OST-2025-1200 Page 00598 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012279 BOM24567 S6J S.L.C. 228 1 "(iii) For-profit commercial enter- 2 prises that may be publicly or privately 3 owned, early stage or mature, and incor- 4 porated or operating by another ownership 5 structure. 6 "(iv) Centers of excellence for domes- 7 tic maritime workforce training and edu- 8 cation (established under section 51706). 9 "(v) Maritime labor organizations. 10 "(vi) Departments or agencies of the 11 Federal Govermnent with expertise, oper- 12 ations, or resources related to the objec- 13 tives of the multi-stakeholder research and 14 innovation partnership. 15 "(vii) State maritime academies (as 16 defined in section 51102(4)). 17 "(viii) The United States Merchant 18 Marine Academy. 19 "(ix) National research laboratories 20 with expertise, operations, or resources re- 21 lated to the objectives of the partnership. 22 "(B) NONTRADITIONAL CAPABILITY.--The 23 term `nontraditional capability' means a solu- 24 tion to an operational challenge that can signifi- 25 cantly leverage commercial innovation or exter- OST-2025-1200 Page 00599 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012280 BOM24567 S6J S.L.C. 229 1 nal capital with minimal dependencies on field- 2 ed systems. 3 "(C) MARITIME INDUSTRY.--The term 4 `maritime industry' includes- 5 "(i) shipbuilders and ship repair fa- 6 cilities; 7 "(ii) ship owners; 8 "(iii) port operators; 9 "(iv) personnel of the merchant ma- 10 rine of the United States; 11 "(v) manufacturers of equipment and 12 technology instrumental to the facilitation 13 of maritime trade and commerce; and 14 "(vi) other members of the industrial 15 base that support the Navy or the mer- 16 chant marine of the United States.". 17 (b) TRANSITION.--A Center for Maritime Innovation 18 established by the Secretary of Transportation through a 19 cooperative agreement pursuant to section 50307 of title 20 46, United States Code, as of the day before the date of 21 enactment of this Act shall- 22 (1) be deemed to be the United States Center 23 for Maritime Innovation under section 50307 of title 24 46, United States Code, as of the date of enactment OST-2025-1200 Page 00600 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012281 BOM24567 S6J S.L.C. 230 1 of this Act, with all the authorities granted by such 2 section; and 3 (2) coordinate activities of the Center with the 4 Maritime Security Board pursuant to subsection 5 (e)(4) of such section, as amended by this Act. 6 SEC. 522. NATIONAL SHIPBUILDING RESEARCH PROGRAM. 7 Section 50105(c) of title 46, United States Code, is 8 amended to read as follows: 9 "(c) NATIONAL SHIPBUILDING RESEARCH PRO- 10 GRAM.- 11 "(1) IN GENERAL.--The Maritime Adminis- 12 trator shall establish and carry out, in coordination 13 with Naval Sea Systems Command, the National 14 Shipbuilding Research Program. 15 "(2) PURPOSES.--The purpose of the National 16 Shipbuilding Research Program shall be to develop 17 plans for the economical construction of vessels and 18 their propelling machinery, of most modern economi- 19 cal types, giving thorough consideration to all well- 20 recognized means of propulsion and taking into ac- 21 count the benefits from standardized production 22 where practicable and desirable. 23 "(3) ACTIVITIES.--The National Shipbuilding 24 Research Program shall-- OST-2025-1200 Page 00601 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012282 BOM24567 S6J S.L.C. 231 1 "(A) support technology transfers and in- 2 dustry networking; 3 "(B) select and execute research and devel- 4 opment projects, which may include- 5 "(i) advancing best practices in ship- 6 building and ship repair, including alter- 7 native project management and project fi- 8 nancing arrangements for shipyards, such 9 as public-private financing; 10 "(ii) improving efficiency across the 11 shipyard industrial base of the United 12 States; and 13 "(iii) developing, maturing, and imple- 14 menting industry-relevant shipbuilding and 15 sustainment technologies; 16 "(C) carry out ad hoc initiatives focused 17 on specific target areas in shipbuilding and ship 18 repair; and 19 "(D) carry out additional activities as de- 20 tennined by the Maritime Administrator or the 21 Secretary of Defense.". 22 SEC. 523. ASSESSMENT ON MARINE INFRASTRUCTURE 23 READINESS. 24 (a) IN GENERAL.--Not later than 180 days after the 25 date of enactment of this Act, the Maritime Administrator OST-2025-1200 Page 00602 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012283 BOM24567 S6J S.L.C. 232 1 shall submit to Congress a report on the status and re- 2 sources and authorities needed to execute and complete 3 necessary vessels, harborcraft, port, shipyard, and other 4 infrastructure improvements to ensure the national secu- 5 rity interests of the United States and support the domes- 6 tic and foreign commerce of the United States. 7 (b) CONTENTS.--The report under subsection (a) 8 shall include- 9 (1) consideration of existing literature and re- 10 porting from Federal and non-Federal sources; 11 (2) an assessment of the number of commercial 12 shipping vessels by class required to sustain a peace- 13 time and wartime national economy; 14 (3) an assessment of opportunities to leverage 15 private sector funding to enhance the capability of 16 marine infrastructure of the United States; 17 (4) an evaluation of future infrastructure needs 18 to support alternative fuels for vessels and 19 harborcraft; 20 (5) an assessment of an ability to construct and 21 repair seaports and shipyards during national secu- 22 rity emergencies, including readiness to construct 23 temporary facilities, and carry out marine salvage 24 and firefighting operations; and OST-2025-1200 Page 00603 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012284 BOM24567 S6J S.L.C. 233 1 (6) an evaluation of the possible effects on the 2 commercial operations of United States ports and 3 other critical infrastructure of prohibiting any entity 4 that owns or operates a port or terminal in the 5 United States from using or sharing data with- 6 (A) LOGINK; 7 (B) any logistics platform controlled by, af- 8 filiated with, or subject to the jurisdiction of 9 the Chinese Communist Party or the Govern- 10 anent of the People's Republic of China; or 11 (C) any logistics platform that shares data 12 with a system described in subparagraph (A) or 13 (B). 14 (c) DEFINITIONS.- 15 (1) CRITICAL INFRASTRUCTURE.--The term 16 "critical infrastructure" has the meaning given the 17 term in section 721(a) of the Defense Production 18 Act of 1950 (50 U.S.C. 4565(a)). 19 (2) LOGNIK.--The term "LOGINK" means 20 the public, open, shared logistics information net- 21 work known as the National Public Information 22 Platform for Transportation and Logistics by the 23 Ministry of Transport of the People's Republic of 24 China. OST-2025-1200 Page 00604 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012285 BOM24567 S6J S.L.C. 234 1 TITLE VI--WORKFORCE 2 DEVELOPMENT 3 Subtitle A Workforce Incentives 4 SEC. 601. PUBLIC SERVICE LOAN FORGIVENESS FOR MER- 5 CHANT MARINES. 6 Section 455(m) of the Higher Education Act of 1965 7 (20 U.S.C. 1087e(m)) is amended-- 8 (1) in paragraph (3)(B)(i), by inserting "the 9 United States Merchant Marine (as described in 10 paragraph (5)), a United States shipyard," after 11 "law enforcement,"; and 12 (2) by adding at the end the following: 13 "(5) FULL-TIME JOB IN UNITED STATES MER- 14 CHANT MARINE.--For purposes of loan cancellation 15 under this subsection, a full-time job in the United 16 States Merchant Marine shall mean possession of a 17 Merchant Mariner Credential authorized by the 18 Coast Guard and employment on board a vessel of 19 the United States for not less than 150 days in a 20 calendar year.". 21 SEC. 602. ELIGIBILITY FOR EDUCATIONAL ASSISTANCE. 22 (a) IN GENERAL.--Chapter 521 of title 46, United 23 States Code, is amended by adding at the end the fol- 24 lowing: OST-2025-1200 Page 00605 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012286 BOM24567 S6J S.L.C. 235 1 9.52102. Eligibility for educational assistance 2 "(a) ELIGIBILITY.-A covered individual shall be 3 treated as an individual described in section 3311(b)(1) 4 of title 38, United States Code, for purposes of entitle- 5 ment to educational assistance under chapter 33 of such 6 title. 7 "(b) COVERED INDIVIDUAL.- 8 "(1) IN GENERAL.-In this section, the term 9 `covered individual' means an individual who- 10 "(A) served as a full-time, credentialed 11 United States Merchant Mariner for not less 12 than 10 years; 13 "(B) as a result of such service received 14 the Merchant Marine Expeditionary Medal or 15 another award for service in a designated com- 16 bat zone after the date of enactment of this sec- 17 tion; and 18 "(C) is not eligible under any other provi- 19 sion of law for benefits under laws administered 20 by the Secretary of Veterans Affairs. 21 "(2) FULL-TIME, CREDENTIALED UNITED 22 STATES MERCHANT MARINER.--For purposes of 23 paragraph (1), serving as a `full-time, credentialed 24 United States Merchant Mariner' means possession 25 of a Merchant Mariner Credential authorized by the 26 Coast Guard and employment on board a vessel of OST-2025-1200 Page 00606 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012287 B0M24567 S6J S.L.C. 236 1 the United States for not less than 150 days in a 2 calendar year. 3 "(c) REIMBURSEMENT.--There is authorized to be 4 appropriated to the Secretary of Veterans Affairs such 5 sums as may be necessary to carry out this section from 6 the Maritime Security Trust Fund established under sec- 7 tion 9512 of chapter 98 of the Internal Revenue Code of 8 1986.". 9 (b) CLERICAL AMENDMENT.--The table of sections 10 for chapter 521 of title 46, United States Code, is amend- 11 ed by adding at the end the following: "52102. Eligibility for educational assistance.". 12 SEC. 603. ELIGIBILITY OF MARINERS TO ATTEND NAVAL 13 POSTGRADUATE SCHOOL. 14 (a) IN GENERAL--Section 8545 of title 10, United 15 States Code, is amended- 16 (1) in subsection (a), by adding at the end the 17 following new paragraph: 18 "(3) The Secretary may permit an officer or 19 unlicensed mariner of the United States Merchant 20 Marine to receive instruction at the Naval Post- 21 graduate School."; 22 (2) in subsection (b)(1), by adding at the end 23 the following new sentence: "The Secretary of 24 Transportation shall bear the cost of the instruction 25 received by officers and unlicensed mariners of the OST-2025-1200 Page 00607 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012288 B0M24567 S6J S.L.C. 237 1 United States Merchant Marine detailed for that in- 2 struction."; and 3 (3) in subsection (c), by inserting ", and offi- 4 cers and unlicensed mariners of the United States 5 Merchant Marine," after "Coast Guard". 6 (b) REPORT REQUIRED.--Not later than 180 days 7 after the date of enactment of this Act, the Secretary of 8 Transportation, in consultation with the Secretary of De- 9 fense, shall submit to Congress a report assessing what 10 matters relating to military training it would be beneficial 11 for mariners to study at the Naval Postgraduate School. 12 SEC. 604. REIMBURSEMENT OF QUALIFYING SPOUSE RELI- 13 CENSING COSTS AND BUSINESS COSTS. 14 (a) IN GENERAL.--Chapter 521 of title 46, United 15 States Code, as amended by section 602, is further amend- 16 ed by adding at the end the following: 17 " 52103. Reimbursement of qualifying spouse reli- 18 tensing costs and business costs 19 "(a) IN GENERAL.--The Secretary of Transportation 20 shall establish a program to reimburse an individual serv- 21 ing in the merchant marine of the United States for quali- 22 feed relicensing costs and qualified business costs of the 23 spouse of that individual when the individual relocates to 24 a new jurisdiction or geographic area as the result of a 25 reassignment as a result of service as a commissioned offi- OST-2025-1200 Page 00608 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012289 BOM24567 S6J S.L.C. 238 1 cer in the Navy Reserve (including the Strategic Sealift 2 Officer Program, Navy Reserve), the Coast Guard Re- 3 serve, or any other reserve component of the Armed Serv- 4 ices of the United States. 5 "(b) LIMITATIONS.- 6 "(1) RELICENSING.--Reimbursement provided 7 to a member under this subsection for qualified reli- 8 censing costs may not exceed $1,000 in connection 9 with each relocation described in paragraph (1). 10 "(2) BUSINESS COSTS.--Reimbursement pro- 11 vided to a member under this subsection for quali- 12 fled business costs may not exceed $1,000 in connec- 13 tion with each relocation described in paragraph (1). 14 "(3) DEADLINE.--No reimbursement may be 15 provided under this subsection for qualified reli- 16 censing costs or qualified business costs paid or in- 17 curred after December 31, 2034. 18 "(C) QUALIFIED RELICENSING COSTS.-In this sec- 19 tion, the term `qualified relicensing costs' means costs, in- 20 eluding exam, continuing education courses, business li- 21 cense, permit, and registration fees, incurred by the 22 spouse of an individual serving in the merchant marine 23 of the United States if- 24 "(1) the spouse was licensed or certified in a 25 profession, or owned a business, during the individ- OST-2025-1200 Page 00609 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012290 BOM24567 S6J S.L.C. 239 1 ual's previous assignment and requires a new profes- 2 sional license or certification, or business license or 3 permit, to engage in that profession in a new juris- 4 diction because of the individual's relocation de- 5 scribed in paragraph (1); and 6 "(2) the costs were incurred or paid to secure 7 or maintain the professional license or certification, 8 or business license or permit, from the new jurisdic- 9 tion in connection with such relocation. 10 "(d) QUALIFIED BUSINESS COSTS.-In this section, 11 the term `qualified business costs' means costs, including 12 moving services for equipment, equipment removal, new 13 equipment purchases, information technology expenses, 14 and inspection fees, incurred by the spouse of an indi- 15 vidual serving in the merchant marine of the United 16 States if- 17 "(1) the spouse owned a business during the in- 18 dividual's previous assignment and the costs result 19 from the individual's relocation described in para- 20 graph (1); and 21 "(2) the costs were incurred or paid to move 22 such business to a new location in connection with 23 such relocation. 24 "(e) AUTHORIZATION OF APPROPRIATIONS.--There 25 is authorized to be appropriated out of the Maritime Secu- OST-2025-1200 Page 00610 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012291 BOM24567 S6J S.L.C. 240 1 rity Trust Fund, established under section 9512 of the 2 Internal Revenue Code of 1986 to carry out this section, 3 $500,000 for each of fiscal years 2025 through 2034.". 4 (b) CLERICAL AMENDMENT.--The table of sections 5 for chapter 521 of title 46, United States Code, as amend- 6 ed by section 602, is further amended by adding at the 7 end the following: "52103. Reimbursement of qualifying spouse relicensing costs and business costs.". 8 SEC. 605. NONCOMPETITIVE ELIGIBILITY FOR FEDERAL 9 EMPLOYMENT. 10 (a) AMENDMENT.--Chapter 521 of title 46, United 11 States Code, as amended by sections 602 and 604, is 12 amended by adding at the end the following: 13 " 52104. Noncompetitive eligibility for Federal em- 14 ployment 15 "(a) DEFINITION OF AGENCY.--In this section, the 16 term `agency'- 17 "(1) has the meaning given the term `Executive 18 agency' in section 105 of title 5, United States Code; 19 "(2) includes the United States Postal Service 20 and the Postal Regulatory Commission; and 21 "(3) does not include the Government Account- 22 ability Office. 23 "(b) APPOINTMENT AUTHORITY.--The head of an 24 agency may appoint noncompetitively-- OST-2025-1200 Page 00611 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012292 B011124567 S6J S.L.C. 241 1 "(1) a graduate of the United States Merchant 2 Marine Academy who has met all of the require- 3 ments of their cadet commitment agreement under 4 section 51306 of title 46, United States Code; or 5 "(2) a credentialed United States Merchant 6 Mariner with an officer or rating endorsement who 7 has completed not less than 7 years of service 8 aboard a vessel of the United States.". 9 (b) CLERICAL AMENDMENT.--The table of sections 10 for chapter 521 of title 46, United States Code, as amend- 11 ed by sections 602 and 604, is amended by adding at the 12 end the following: "52104. Noncompetitive eligibility for Federal employment.". 13 SEC. 606. UNITED STATES MERCHANT MARINE CAREER RE- 14 TENTION PROGRAM. 15 (a) SENSE OF CONGRESS.-It is the sense of Con- 16 gress that- 17 (1) it takes years of training and experience, 18 and costly license trainings, to earn mariner quali- 19 fications; 20 (2) with just around 12,000 merchant mariners 21 of the United States operating oceangoing vessels, 22 compared with China's more than 1,700,000 sea- 23 farers, the United States may not have a sufficient 24 number of mariners to fully power the strategic sea- 25 lift vessels necessary in a future prolonged conflict; OST-2025-1200 Page 00612 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012293 B0M24567 S6J S.L.C. 242 1 (3) the United States requires a qualified work- 2 force of sufficient size that is ready and available to 3 crew vessels of the United States for national de- 4 fense or national emergency; and 5 (4) a workforce committed to take all measures 6 possible to expand, develop, and protect the domestic 7 maritime workforce should-- 8 (A) support a retention program to permit 9 credentialed merchant mariners to maintain 10 recency through a coordinated Federal pro- 11 gram, in coordination with maritime labor orga- 12 nizations; and 13 (B) implement civil service, workplace, and 14 hiring protections. 15 (b) AMENDMENT.--Chapter 521 of title 46, United 16 States Code, as amended by sections 602, 604, and 605, 17 is further amended by adding at the end the following: 18 "52105. United States Merchant Marine Career Re- 19 tention Program 20 "(a) ESTABLISHMENT.--The Maritime Adminis- 21 trator shall establish a program, to be known as the 22 `United States Merchant Marine Career Retention Pro- 23 gram', to ensure that a qualified workforce of sufficient 24 size is ready to crew strategic sealift vessels in the event 25 of a national defense or national emergency activation. OST-2025-1200 Page 00613 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012294 BOM24567 S6J S.L.C. 243 1 Through the United States Merchant Marine Career Re- 2 tention Program, the Maritime Administrator shall estab- 3 lish and administer mechanisms to register merchant 4 mariners and mariner employers to participate in the Pro- 5 gram. 6 "(b) IMPLEMENTATION.--The Maritime Adminis- 7 trator shall-- 8 "(1) appoint a board of directors to oversee the 9 United States Merchant Marine Career Retention 10 Program; 11 "(2) appoint and facilitate a working group to 12 recommend policies, procedures, and a prioritization 13 matrix for the United States Merchant Marine Ca- 14 reer Retention Program, which shall be composed of 15 representatives from major stakeholders, including 16 maritime labor organizations, credentialed United 17 States Merchant Mariners, vessel owners, vessel op- 18 erators, the United States Merchant Marine Acad- 19 emy, State maritime academies, United States Mili- 20 tary Sealift Command, and other likely employers of 21 members of the United States Merchant Marine Ca- 22 reer Retention Program; and 23 "(3) submit to Congress an annual evaluation 24 of the United States Merchant Marine Career Re- 25 tention Program. OST-2025-1200 Page 00614 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012295 BOM24567 S6J S.L.C. 244 1 "(C) MEMBERSHIP IN UNITED STATES MERCHANT 2 MARINE CAREER RETENTION PROGRAM.- 3 "(1) IN GENERAL.--There shall be 2 paths to 4 enrollment in the United States Merchant Marine 5 Career Retention Program as described in para- 6 graphs (2) and (3). 7 "(2) MEMBERS WHO WORK ASHORE WHO HOLD 8 MARINER QUALIFICATIONS.- 9 "(A) OPPORTUNITIES.--The United States 10 Merchant Marine Career Retention Program 11 shall provide individuals who hold Coast Guard 12 issued mariner qualifications who work ashore 13 with an opportunity to maintain, or potentially 14 upgrade, their mariner qualifications and cre- 15 dentials by- 16 "(i) providing qualified service at sea 17 on vessels of the United States; and 18 "(ii) participating in compulsory 19 training. 20 "(B) STRUCTURE.--The United States 21 Merchant Marine Career Retention Program 22 shall be open for enrollment to both licensed 23 and unlicensed mariners and provide members 24 with an 8-3-1 schedule as follows: 25 "(i) 8 months shoreside employment. OST-2025-1200 Page 00615 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012296 BOM24567 S6J 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 S.L.C. 245 "(ii) 3 months sailing employment designed to ensure that members meet the minimum sea-time requirement to maintaro the credentials required by the Standards of Training, Certification, and Watchkeeping certification, or, depending on mariner and employer requirements, more frequent, but shorter-duration sailing assignments. "(iii) 1 month vacation, which is in addition to vacation provided by the shoreside employer. "(C) ASHORE EMPLOYERS."(i) EMPLOYER OBLIGATIONS.--The employer of a member of the United States Merchant Marine Career Retention Program described under this paragraph shall grant the member"(I) an unpaid leave of absence for the duration of the member's training, sailing, and vacation with the United States Merchant Marine Career Retention Program; and "(II) the same or an equivalent position with the employer when the OST-2025-1200 Page 00616 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012297 B0M24567 S6J S.L.C. 246 1 member returns from training, sailing, 2 or vacation with the United States 3 Merchant Marine Career Retention 4 Program. 5 "(D) SEA DAY ASSIGNMENTS.--The United 6 States Merchant Marine Career Retention Pro- 7 gram shall, with respect to members described 8 under this paragraph- 9 "(i) maintain records of each mem- 10 ber's qualifications, sea time, and avail- 11 ability, and prioritize assignments on these 12 and other factors with the goal of maxi- 13 mizing the United States Merchant Marine 14 Career Retention Program readiness to 15 support strategic sealift; 16 "(ii) maintain a `job call' program of- 17 Tice that coordinates how jobs become 18 available for members from State maritime 19 academies, vessel operating companies, 20 maritime labor organizations, United 21 States Military Sealift Command, and 22 other organizations responsible for crewing 23 vessels of the United States of qualifying 24 tonnage or horsepower; OST-2025-1200 Page 00617 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012298 B0M24567 S6J 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 S.L.C. 247 "(iii) establish partnerships with State maritime academies and the United States Military Sealift Command that aim to establish reliable crewing jobs with job cycles that maximize the readiness of United States Merchant Marine Career Retention Program; "(iv) dispatch members to fill available jobs, prioritizing maximizing readiness for strategic sealift, taking into consideration mariner availability and credentials, sea time requirements to maintain merchant mariner credentials, predicted program demand for specific ratings, and expected expansion or contraction of the program's membership; and "(v) coordinate with vessel operators and labor organizations to ensure that members in the United States Merchant Marine Career Retention Program are given opportunities to fulfill their sea time and maintain the credentials required by the Standards of Training, Certification, and, Watchkeeping certification. OST-2025-1200 Page 00618 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012299 BOM24567 S6J S.L.C. 248 1 "(E) USERRA PROTECTIONS.--Members 2 of the United States Merchant Marine Career 3 Retention Program described under this para- 4 graph shall be entitled to protections and obli- 5 gations under chapter 43 of title 38 (commonly 6 known as the `Uniformed Services Employment 7 and Reemployment Rights Act'). 8 "(F) REQUIREMENT.--A member in the 9 United States Merchant Marine Career Reten- 10 tion Program described under this paragraph 11 may not fail to accept a sea day assignment 12 and remain in good standing with the Program, 13 unless a hardship exemption is provided by the 14 Maritime Administrator under subsection (e). 15 "(3) MEMBERS SERVING ON FOREIGN VES- 16 SELS.- 17 "(A) IN GENERAL.--The United States 18 Merchant Marine Career Retention Program 19 shall be open for enrollment to individuals 20 who- 21 "(i) hold Coast Guard issued mer- 22 chant mariner credentials required by the 23 Standards of Training, Certification, and 24 Watchkeeping Certification; OST-2025-1200 Page 00619 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012300 B0M24567 S6J S.L.C. 249 1 "(ii) have completed their service obli- 2 gations with respect to any previous enroll- 3 ment in a Federal or State maritime acad- 4 emy, if applicable; and 5 "(iii) are serving on a foreign vessel 6 (as defined in section 110) that is not 7 owned by a foreign entity of concern (as 8 that term is defined in section 4 of the 9 SHIPS for America Act of 2024) or a ves- 10 sel registered under a registry of a foreign 11 country of concern or operated under the 12 authority of a foreign country of concern 13 (as that term is defined in such section 4). 14 "(B) REQUIREMENT.--Members of the 15 United States Merchant Marine Career Reten- 16 tion Program described under this paragraph 17 shall maintain- 18 "(i) Standards of Training, Certifi- 19 cation, and Watchkeeping Certification 20 currency; 21 "(ii) a valid merchant mariner creden- 22 tial, unlimited as to horsepower or ton- 23 nage, issued by the United States Coast 24 Guard as an officer in the merchant ma- 25 rine of the United States, accompanied by OST-2025-1200 Page 00620 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012301 BOM24567 S6J S.L.C. 250 1 the appropriate national and international 2 endorsements and certifications required 3 by the Coast Guard for service aboard ves- 4 sels on domestic and international voyages, 5 without limitation; 6 "(iii) a valid transportation worker 7 identification credential; 8 "(iv) a Coast Guard medical certifi- 9 cate; and 10 "(v) classes and certifications de- l1 scribed in subparagraph (C). 12 "(C) CERTIFICATIONS.--The Adminis- 13 trator shall publish a list of classes and certifi- 14 cations required for individuals described in 15 subparagraph (A) to be eligible for the United 16 States Merchant Marine Career Retention Pro- 17 gram. 18 "(D) RULE OF CONSTRUCTION.--Nothing 19 in subparagraph (A) shall be construed to allow 20 the United States Coast Guard to prevent or 21 delay a merchant mariner who is otherwise eli- 22 gible from attaining a more advanced rank or 23 credential for Merchant Mariners sailing on for- 24 eign vessels. OST-2025-1200 Page 00621 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012302 BOM24567 S6J S.L.C. 251 1 "(E) USERRA PROTECTIONS.--Members 2 of the United States Merchant Marine Career 3 Retention Program described under this para- 4 graph shall be entitled to protections and obli- 5 gations under chapter 43 of title 38 (commonly 6 known as the `Uniformed Services Employment 7 and Reemployment Rights Act'). 8 "(d) ENFORCEMENT.--The Maritime Administrator 9 shall ensure all members of the Merchant Marine Career 10 Retention Program remain in good standing with the re- 11 quirements of the Program. 12 "(1) ENFORCEMENT.--Subject to paragraph 13 (2), members found to be in noncompliance with the 14 requirements of the Program shall- 15 "(A) have their reservist status terminated; 16 and 17 "(B) forfeit the protections provided under 18 chapter 43 of title 38 (commonly known as the 19 `Uniformed Services Employment and Reem- 20 ployment Rights Act'). 21 "(2) EXCEPTION.-In cases where the Maritime 22 Administrator determines a hardship exists, which 23 prevents the mariner from meeting the requirements 24 of the Program, the requirements of paragraph (1) 25 shall not apply. OST-2025-1200 Page 00622 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012303 B0M24567 S6J S.L.C. 252 1 "(e) AUTHORIZATION OF APPROPRIATIONS.--There 2 is authorized to be appropriated out of the Maritime Secu- 3 rity Trust Fund established under section 9512 of the In- 4 ternal Revenue Code of 1986 to carry out this section, 5 $2,000,000 for each of fiscal years 2025 through 2034.". 6 (C) CLERICAL AMENDMENT.--The table of sections 7 for chapter 521 of title 46, United States Code, as amend- 8 ed by sections 602, 604, and 605, is amended by adding 9 at the end the following: "52105. United States Merchant Marine Career Retention Program.". 10 Subtitle B Workforce Pipeline 1 1 SEC. 611. MARITIME AND SHIPBUILDING RECRUITING CAM- 12 PAIGN. 13 (a) PURPOSES.--The purposes of this section are 14 to- 15 (1) address the shortage of workers in the mar- 16 itime sector and stimulate growth in the United 17 States Merchant Marine and shipbuilding industries 18 by providing funding for a comprehensive marketing, 19 recruiting, and public relations campaign; and 20 (2) expand and nurture a robust maritime 21 workforce that enhances the national security and 22 strategic sealift readiness of the United States. 23 (b) IN GENERAL.--The Maritime Administrator, in 24 consultation with the Maritime Security Board, through 25 contracts described in subsection (c), shall develop and de- OST-2025-1200 Page 00623 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012304 BOM24567 S6J S.L.C. 253 1 ploy branding, content, advertising buys, and local and na- 2 tional engagement strategies to implement the campaigns 3 described in subsection (d). 4 (c) CONTRACTS.--The contracts described in this 5 subsection shall be made to reputable marketing, recruit- 6 ing, and public relations firms through a competitive bid- 7 ding process. 8 (d) CAMPAIGNS.--The Maritime Administrator, in 9 coordination with the Secretary of Labor and in consulta- 10 tion with the Secretary of Defense, shall carry out tar- 11 geted campaigns under this section to- 12 (1) promote the virtues of work in the merchant 13 marine of the United States for the purpose of sail- 14 ing in international trade, including Military Sealift 15 Command mariner positions, and the critical need 16 for skilled workers in the maritime industry, and to 17 attract workers to such industry; and 18 (2) promote the virtues of work in the ship- 19 building industry of the United States, highlighting 20 the critical need for skilled workers in the ship- 21 building industry, and to attract workers to such in- 22 dustry. 23 (e) CAMPAIGN OBJECTIVES.--The campaigns under 24 this section shall focus on the following objectives: OST-2025-1200 Page 00624 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012305 B0M24567 S6J S.L.C. 254 1 (1) Emphasize the importance of maritime and 2 shipbuilding work for national security. 3 (2) Showcase the numerous opportunities avail- 4 able in the maritime industry and the shipbuilding 5 industry. 6 (3) Highlight the shortage of workers in the 7 maritime industry and the shipbuilding industry. 8 (4) Seek out new and non-traditional audiences 9 and platforms to bring workers from different back- 10 grounds and with different skill sets into the mari- 11 time industry and shipbuilding industry. 12 (5) Promote the excitement, benefits, and ap- 13 peal of a career in the maritime industry and the 14 shipbuilding industry. 15 (6) Inform potential workers of the points of 16 entry available to join and receive training for such 17 a career, including- 18 (A) the United States Merchant Marine 19 Academy; 20 (B) State and regional maritime academies 21 described in chapter 515 of title 46, United 22 States Code; 23 (C) merchant mariner and shipbuilding 24 labor organization training facilities; OST-2025-1200 Page 00625 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012306 B0M24567 S6J S.L.C. 255 1 (D) merchant mariner and shipbuilding 2 apprenticeship programs approved by the Sec- 3 retary of Labor; 4 (E) shipbuilding industry training pro- 5 grams; 6 (F) certain community colleges and private 7 institutions of higher education; 8 (G) maritime training high schools; and 9 (H) Centers of Excellence for Domestic 10 Maritime Workforce Training and Education 11 designated by the Maritime Administration. 12 (7) Inform potential workers of sources of fi- 13 nancial assistance for training for individuals inter- 14 ested in joining the maritime industry and the ship- 15 building industry. 16 (8) Attract workers to the maritime and ship- 17 building industries. 18 (9) Highlight successes in the United States 19 maritime and shipbuilding industries. 20 (f) TARGET AUDIENCE.--Each campaign under this 21 section shall target a diverse audience, including- 22 (1) potential workers interested in maritime in- 23 dustry careers or shipbuilding industry careers; 24 (2) educational institutions and their students 25 considering vocational training in the maritime in- OST-2025-1200 Page 00626 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012307 BOM24567 S6J S.L.C. 256 1 dustry and shipbuilding industry, including kinder- 2 garter through grade 12 levels; 3 (3) veterans and individuals seeking career 4 transitions; and 5 (4) the general public to raise awareness about 6 the importance of the maritime and shipbuilding in- 7 dustries. 8 (g) REPORTING AND ACCOUNTABILITY.- 9 (1) QUARTERLY REPORT.--Not later than 30 10 days after the last day of each quarter of each fiscal 11 year during which a campaign is carried out under 12 this section, the firm selected under subsection (b) 13 shall submit a report with respect to such quarter to 14 the Maritime Administrator and the appropriate 15 committees of Congress detailing the progress, out- 16 reach, and impact of each campaign carried out 17 under this section during such quarter and the effec- 18 tiveness of each such campaign in increasing appli- 19 cations for employment in the maritime and ship- 20 building industries of the United States. 21 (2) FINAL REPORT.--The firm selected under 22 subsection (b) shall submit a comprehensive final re- 23 port not later than 60 days after the conclusion of 24 all campaigns carried out under this section. OST-2025-1200 Page 00627 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012308 BOM24567 S6J S.L.C. 257 1 (h) EFFECTIVE DATE.--The Maritime Administrator 2 shall initiate the competitive bidding process described in 3 subsection (b) not later than 180 days after the date that 4 appropriations are first made available for this section. 5 (i) AUTHORIZATION OF APPROPRIATIONS.- 6 (1) FY 2025-2028.--There are authorized to be 7 appropriated out of the Maritime Security Trust 8 Fund, established under section 9512 of the Internal 9 Revenue Code of 1986 to the Maritime Adminis- 10 trator, for each of fiscal year 2025, 2026, 2027, and 11 2028, $15,000,000 to carry out this section, of 12 which- 13 (A) $10,000,000 shall be for the program 14 established under subsection (d)(1) (work in the 15 United States Merchant Marine); and 16 (B) $5,000,000 shall be for the program 17 established under subsection (d)(2) (work in the 18 shipbuilding industry). 19 (2) FY 2029-2034.--There are authorized to be 20 appropriated out of the Maritime Security Trust 21 Fund, established under section 9512 of the Internal 22 Revenue Code of 1986 to the Maritime Adminis- 23 trator, for each of fiscal year 2029, 2030, 2031, 24 2032, 2033, and 2034, $25,000,000 to carry out 25 this section, of which-- OST-2025-1200 Page 00628 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012309 BO11124567 S6J S.L.C. 258 1 (A) $15,000,000 shall be for the program 2 established under subsection (d)(1) (work in the 3 United States Merchant Marine); and 4 (B) $10,000,000 shall be for the program 5 established under subsection (d)(2) (work in the 6 shipbuilding industry). 7 SEC. 612. CENTERS OF EXCELLENCE FOR DOMESTIC MARI- 8 TIME WORKFORCE TRAINING AND EDU- 9 CATION. 10 Section 51706 of title 46, United States Code, is 11 amended- 12 (1) in subsection (c)(1)(B)(iii), by striking 13 "nonprofit entity" and inserting "entity"; and 14 (2) by adding to the end the following: 15 "(d) AUTHORIZATION OF APPROPRIATIONS.--There 16 is authorized to be appropriated out of the Maritime Secu- 17 rity Trust Fund, established under section 9512 of the 18 Internal Revenue Code of 1986 to carry out this section, 19 $25,000,000 for each of fiscal years 2025 through 2034.". 20 SEC. 613. MARITIME CAREER AND TECHNICAL EDUCATION 21 ADVISORY COMMITTEE. 22 (a) DEFINITIONS.-In this section: 23 (1) ADMINISTRATOR.--The term "Adminis- 24 trator" means the Maritime Administrator. OST-2025-1200 Page 00629 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012310 BOM24567 S6J S.L.C. 259 1 (2) ADVISORY COMMITTEE.--The term "Advi- 2 sory Committee" means the Maritime Career and 3 Technical Education Advisory Committee established 4 under subsection (b). 5 (b) ADVISORY COMMITTEE PLAN AND ESTABLISH- 6 MENT.- 7 (1) PLAN.--Not later than 180 days after the 8 date of enactment of this Act, the Administrator 9 shall develop a plan, and notify Congress of such 10 plan, to establish a Maritime Career and Technical 11 Education Advisory Committee to- 12 (A) bring representatives of maritime in- 13 dustrial base employers and education providers 14 together to identify joint opportunities to train 15 needed workers for maritime careers; and 16 (B) develop and disperse best practices and 17 recommendations for the improvement of ship- 18 building education and training programs, naval 19 architecture education programs, and merchant 20 marine training and certification programs. 21 (2) ESTABLISHMENT.--Not later than 1 year 22 after the date of enactment of this Act, the Adminis- 23 trator shall establish the Advisory Committee. 24 (C) MEMBERSHIP.- OST-2025-1200 Page 00630 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012311 BOM24567 S6J S.L.C. 260 1 (1) ADMINISTRATOR.--The Advisory Committee 2 shall include the Administrator (or a delegate of the 3 Administrator) who shall serve as Chair of the Advi- 4 sort' Committee. 5 (2) REPRESENTATIVES.--The Advisory Com- 6 mittee shall be composed of representatives from 7 each of the following, to be appointed the Adminis- 8 trator: 9 (A) Maritime education, including rep- 10 resentatives (i) the Centers of Excellence for Do- 12 mestic Maritime Workforce Training and 13 Education designated by the Maritime Ad- 14 ministration, taking into consideration- 15 (I) geographic diversity; 16 (II) the rate of employment after 17 graduation; 18 (III) training or skillset diversity; 19 and 20 (IV) other qualities as deter- 21 mined by the Administrator; 22 (ii) the United States Naval Sea 23 Cadet Corps; and OST-2025-1200 Page 00631 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012312 B0M24567 S6J S.L.C. 261 1 (iii) kindergarten through grade 12 2 maritime education programs designated 3 by the Maritime Administration. 4 (B) The maritime workforce, including 5 representatives from- 6 (i) skilled workers representing a wide 7 swath of the career and technical maritime 8 industry both onshore and offshore; 9 (ii) career and technical education cer- 10 tified instructors; and 11 (iii) maritime labor organizations. 12 (C) Maritime industry, including represent- 13 atives from- 14 (i) shipbuilding, ship repair, and ship- 15 yard industry stakeholders; 16 (ii) maritime industrial base coali- 17 tions; 18 (iii) shipping industry stakeholders; 19 and 20 (iv) owners and operators of vessels of 21 the United States. 22 (D) Technical nonprofit organizations with 23 expertise in the maritime industry, including 24 representatives from- 25 (i) think tanks; OST-2025-1200 Page 00632 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012313 BOM24567 S6J S.L.C. 262 1 (ii) recognized classification societies; 2 and 3 (iii) professional societies. 4 (E) The Federal Government, including 5 representatives from- 6 (i) the Department of Education; 7 (ii) the Department of Labor; 8 (iii) the Department of Transpor- 9 tation; 10 (iv) the Department of the Navy; 11 (v) the United States Coast Guard; 12 (vi) the National Oceanic and Atmos- 13 pheric Administration; 14 (vii) the Army Corps of Engineers; 15 and 16 (viii) the Federal Maritime Commis- 17 sion 18 (d) MEETINGS.- 19 (1) IN GENERAL.--The Advisory Committee 20 shall meet not less often than annually. 21 (2) QUORUM ESTABLISHED.--Two thirds of all 22 members appointed by the Administrator under sub- 23 section (c) shall constitute a quorum for a meeting 24 of the Advisory Committee. OST-2025-1200 Page 00633 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012314 BOM24567 S6J S.L.C. 263 1 (3) WORKENG GROUPS.--The Advisory Coin- 2 mittee shall include working groups that shall meet 3 not less often than quarterly each year. 4 (e) FACA.--Chapter 10 of title 5, United States 5 Code, shall apply to the Advisory Committee. 6 (f) DEVELOPMENT OF CURRICULA.--Consistent with 7 the purposes of the Advisory Committee established in 8 subsection (b) and applicable law (including regulations), 9 the Advisory Committee shall recommend curricula for key 10 skills for maritime professionals and make such curricula 11 publicly available to institutions of higher education, ca- 12 reer and technical education schools, and State maritime 13 academies. 14 (g) REPORTING.--The Advisory Committee shall sub- 15 mit to the appropriate committees of Congress and the 16 Maritime Security Board and publish on the website of 17 the Maritime Administration, an ammal report that in- 18 dudes best practices and policy recommendations, as de- 19 scribed in subsection (b). 20 (h) RULE OF CONSTRUCTION.--Nothing in this sec- 21 tion shall be construed to create new regulatory authority 22 or supersede existing law (including regulations) as of the 23 day before the date of enactment of this Act, relating to 24 shipbuilding education and training programs, naval ar- OST-2025-1200 Page 00634 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012315 BOM24567 S6J S.L.C. 264 1 chitecture education programs, and merchant marine 2 training and certification programs. 3 SEC. 614. MILITARY CANDIDATES TO MARINER CAREERS 4 RECRUITMENT EXCHANGE. 5 (a) DUTIES OF SECRETARY OF DEFENSE.--The Sec- 6 retary of Defense shall- 7 (1) encourage and incentivize military recruiters 8 to recommend the United States Department of 9 Transportation Maritime Administration to potential 10 recruits who do not qualify for military service in the 11 Armed Forces; and 12 (2) establish a mechanism for military recruit- 13 ers to introduce recruits described in paragraph (1) 14 who are interested in maritime service to representa- 15 tives from the Maritime Administration, in accord- 16 ance with the procedures established under sub- 17 section (b). 18 (b) DUTIES OF THE MARITIME ADMINISTRATOR.- 19 The Maritime Administrator shall- 20 (1) establish a mechanism to receive recruit- 21 anent referrals from military recruiters; 22 (2) provide hand-off services to connect recruits 23 with educational resources and institutions, recog- 24 nized Maritime Centers of Excellence, eligible mari- OST-2025-1200 Page 00635 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012316 BOM24567 S6J S.L.C. 265 1 time industry employers, and other maritime indus- 2 try career services, as appropriate; 3 (3) track the number of referrals from the De- 4 partment of Defense; and 5 (4) track the number of recruits who enroll in 6 maritime industry programs, to the extent prac- 7 ticable. 8 (c) REPORTING REQUIREMENT.- 9 (1) BRIEFING ON THE IMPLEMENTATION 10 STRATEGY.--Not later than 90 days after the date 11 of enactment of this Act, the Maritime Adminis- 12 trator, in coordination with the Secretary of De- 13 Tense, shall submit a briefing to the appropriate 14 committees of Congress about a strategy for imple- 15 menting the activities required under this section, 16 including- 17 (A) a timeline for implementation; and 18 (B) the identification of the Department of 19 Defense recruiter incentives and training re- 20 quired for maximum utility in carrying out such 21 activities. 22 (2) ANNUAL REPORT ON PROGRAM EFFICACY.- 23 One year after the date of enactment of this Act, 24 and annually thereafter, the Maritime Adminis- 25 trator, in coordination with the Secretary of De- OST-2025-1200 Page 00636 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012317 BOM24567 S6J S.L.C. 266 1 fense, shall submit a report to the appropriate corn- 2 rnittees of Congress on the efficacy and utility of the 3 activities carried out under this section, including- 4 (A) the number of Department of Defense 5 referrals to the Maritime Administration; 6 (B) the number of Maritime Administra- 7 tion hand-offs to the maritime industry; 8 (C) an assessment of the efficacy of the ac- 9 tivities carried out under this section; and 10 (D) challenges and recommendations relat- 11 ing to such activities. 12 SEC. 615. MARITIME WORKER DATA COLLECTION. 13 (a) PUBLICATION OF REPORT.--The Maritime Ad- 14 ministrator shall publish an biennial report on the state 15 of the merchant mariner workforce. 16 (b) COMPLETION OF REPORT.--The Maritime Ad- 17 ministrator shall complete the biennial report required 18 under subsection (a) or enter into a contract with another 19 entity to complete the report. 20 (c) CONTENT OF REPORT.--The biennial report re- 21 quired under subsection (a) shall include, at minimum- 22 (1) a count of United States Merchant Mari- 23 ners with valid merchant mariner credentials and 24 credentials in continuity endorsement; OST-2025-1200 Page 00637 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012318 B0M24567 S6J S.L.C. 267 1 (2) a count of inactive but credentialed and for- 2 merly credentialed United States Merchant Mari- 3 ners, to the extent practicable, and an evaluation 4 of- 5 (A) the challenges to identifying such indi- 6 viduals; 7 (B) opportunities to partner with Federal, 8 State, local, and non-government entities to 9 identify such individuals; and 10 (C) an action plan of how to implement the 11 opportunities described under subparagraph 12 (B); 13 (3) a count of United States mariners and for- 14 eign workers employed on vessels, rigs, platforms, 15 and other vehicles or structures off the coast of the 16 United States and an evaluation of the percentage of 17 United States and foreign workers employed on- 18 (A) coastwise-endorsed vessels; and 19 (B) vessels of the United States which do 20 not have a coastwise endorsement; 21 (4) a listing of actively operating vessels of the 22 United States; 23 (5) a report of merchant mariner requirements 24 needed in the event of a national defense sealift op- 25 eration and any gaps identified in quantity and qual- OST-2025-1200 Page 00638 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012319 BOM24567 S6J S.L.C. 268 1 ity, and other variables of concern, as determined by 2 the Administrator; 3 (6) a general outlook for the future of the mer- 4 chant mariner industry and potential gaps or sur- 5 pluses of merchant mariners; 6 (7) identification of any concerns in the 7 credentialing of merchant mariners, which may in- 8 elude general processing issues, shortage of training 9 providers or instructors, and barriers to entry due to 10 costs to the economically disadvantaged; and 11 (8) recommendations, based on data collected, 12 on ways to- 13 (A) improve retention of existing merchant 14 mariners; 15 (B) create expedited pathways for mari- 16 ners with expired credentials to renew their cre- 17 dentials; and 18 (C) encourage new merchant mariners to 19 enter the industry. 20 (d) ACCESSIBILITY OF DATA.- 21 (1) IN GENERAL.--Except as provided in para- 22 graph (2), the Maritime Administrator, and any au- 23 thorized agent of the Maritime Administrator, shall 24 have full access to available Coast Guard mariner 25 credentialing data, in a manner that ensures the OST-2025-1200 Page 00639 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012320 BOM24567 S6J S.L.C. 269 1 protection of personally identifiable information, in 2 order to complete the report required under sub- 3 section (a). 4 (2) EXCEPTION.--The Maritime Administrator, 5 and any authorized agent of the Maritime Adminis- 6 trator, may not have access to confidential medical 7 information pursuant to paragraph (1). 8 (e) AUTHORIZATION OF APPROPRIATIONS.--There is 9 authorized to be appropriated out of the Maritime Secu- 10 rity Trust Fund, established under section 9512 of the 11 Internal Revenue Code of 1986 to carry out this section, 12 $1,000,000 for each of the fiscal years 2025 through 13 2029. 14 SEC. 616. MILITARY TO MARITIME TRANSITION. 15 (a) RECOMMENDATIONS REQUIRED.--Not later than 16 180 days after the date of enactment of this Act, the Sec- 17 retary of Defense, in consultation with the Secretary of 18 the Navy, the Secretary of the Air Force, the Secretary 19 of the Army, the Secretary of the department in which 20 the Coast Guard is operating, the Maritime Security 21 Board, the Department of Veterans Affairs, and the De- 22 partment of Labor, shall submit a report to the appro- 23 priate committees of Congress containing- 24 (1) recommendations about how to increase and 25 improve opportunities for transitioning OST-2025-1200 Page 00640 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012321 BOM24567 S6J S.L.C. 270 1 servicemembers to secure employment in the mari- 2 time industry at sea and shoreside; and 3 (2) a plan to implement those recommenda- 4 tions. 5 (b) CONSIDERATIONS.--In carrying out subsection 6 (a), the Secretary of Defense shall- 7 (1) identify barriers that servicemembers face 8 when trying to transition to the United States mari- 9 time industry, including the merchant marines, ship- 10 building, ship repair, and shipping; 11 (2) consider opportunities to improve, expedite, 12 and alleviate the burdens on servicemembers 13 transitioning to the maritime industry, including ef- 14 forts to- 15 (A) inform transitioning servicemembers of 16 employment opportunities in the United States 17 maritime industry; 18 (B) assist transitioning servicemembers in 19 determining how their military credentials and 20 experience translate to credentialed civilian em- 21 ployment in the maritime industry; 22 (C) increase the establishment and uptake 23 of accelerated or bridge programs to assist sep- 24 arating members of the Armed Forces in trans- OST-2025-1200 Page 00641 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012322 BOM24567 S6J S.L.C. 271 1 lating military credentials and experience into 2 maritime industry credentials and employment; 3 (D) increase the availability and accessi- 4 bility of preparatory activities under the 5 SkillBridge program established under section 6 1143(e) of title 10, United States Code, in the 7 United States maritime industry; 8 (E) incorporate the maritime industry in 9 the Transition Assistance Program, as de- 10 scribed in chapter 58 of title 10, United States 11 Code; and 12 (F) enhance the activities carried out pur- 13 suant to the Military to Mariners Act of 2022 14 (section 11514 of division K of the James M. 15 Inhofe National Defense Authorization Act for 16 Fiscal Year 2023 (Public Law 117-263)); and 17 (3) specifically consider the transition of 18 servicemembers to employment in the shipbuilding 19 and ship repair maritime industries. 20 SEC. 617. EARLY MARITIME EDUCATION AND YOUTH IN- 21 VOLVEMENT. 22 (a) SECRETARY OF THE NAVY BUDGET REQUEST.- 23 In the Secretary of the Navy's annual budget submission 24 to Congress, the Secretary of the Navy shall include, as OST-2025-1200 Page 00642 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012323 BOM24567 S6J S.L.C. 272 1 a distinct item, the funding request for the United States 2 Naval Sea Cadet Corps. 3 (b) ENGAGEMENT WITH ELEMENTARY SCHOOL AND 4 SECONDARY SCHOOL STUDENTS.--The Maritime Admin- 5 istrator shall encourage designated Centers of Excellence 6 for Domestic Maritime Workforce Training and Education 7 to engage with students in kindergarten through grade 12. 8 SEC. 618. INTERNATIONAL SCHOLARSHIP FOR MARINER 9 AND NAVAL ARCHITECTURE EXCHANGES. 10 (a) IN GENERAL.--The Maritime Administrator shall 11 establish an international exchange program for mariners, 12 naval architects, and marine engineers between the United 13 States and countries described in subsection (b). 14 (b) ELIGIBLE PARTICIPANTS.-In carrying out the 15 program under this section, the Administrator shall limit 16 participation to United States citizens and citizens of- 17 (1) member countries of NATO; 18 (2) treaty allies of the United States; and 19 (3) major non-NATO allies of the United 20 States. 21 (c) PLACEMENTS.--In carrying out the program 22 under this section, the Administrator shall seek corporate 23 and government partners for placement of eligible partici- 24 pants of the program. OST-2025-1200 Page 00643 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012324 BOM24567 S6J S.L.C. 273 1 (d) AUTHORIZATION OF APPROPRIATIONS.--There is 2 authorized to be appropriated out of the Maritime Secu- 3 rity Trust Fund, established under section 9512 of the 4 Internal Revenue Code of 1986, $2,000,000 to carry out 5 this section for each of fiscal years 2025 through 2034. 6 Subtitle C--United States Mer7 chant Marine Academy and 8 State Maritime Academies 9 SEC. 621. AUTHORIZATION OF APPROPRIATIONS FOR 10 UNITED STATES MERCHANT MARINE ACAD- 11 EMY INFRASTRUCTURE AND FACILITIES 12 MODERNIZATION. 13 (a) FINDINGS.--Congress finds the following: 14 (1) The United States Merchant Marine Acad- 15 emy plays a critical role in training service-obligated 16 licensed merchant mariners to operate commercial 17 vessels, in peacetime and during times of conflict. 18 (2) The United States Merchant Marine Acad- 19 emy is 1 of the 5 Federal service academies and 20 plays a critical role in maintaining a domestic, com- 21 mercial maritime industry, with each graduate hav- 22 ing a commitment to serve not less than 8 years in 23 the foreign and domestic commerce and the national 24 defense of the United States, which may include 25 service on a merchant vessel documented under OST-2025-1200 Page 00644 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012325 BOM24567 S6J S.L.C. 274 1 chapter 121 of title 46, and graduates make up 2 more than 80 percent of the United States Navy's 3 Strategic Sealift Officer Program. 4 (3) The United States defense readiness and 5 economic security relies on a strong investment in 6 training and cultivating United States Merchant Ma- 7 rine officers at the United States Merchant Marine 8 Academy. 9 (4) Most of the facilities at the United States 10 Merchant Marine Academy date back to the Acad- 11 emy's founding, have not been modernized since, and 12 are not conducive to the immersive training and de- 13 manding coursework today's Midshipmen are re- 14 quired to complete. 15 (5) Rehabilitating and modernizing the campus 16 infrastructure at the United States Merchant Ma- 17 rine Academy is necessary to ensuring current and 18 future generations of Midshipmen receive a first- 19 class education. 20 (b) SENSE OF THE SENATE.--It is the sense of the 21 Senate- 22 (1) to ensure that the United States continues 23 to have a sufficient number of service-obligated li- 24 tensed merchant mariners to meet current and fu- 25 ture economic and national security needs, the Mari- OST-2025-1200 Page 00645 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012326 B0M24567 S6J S.L.C. 275 1 time Administration and the Department of Trans- 2 portation have a responsibility to provide suitable 3 academic, training, and dormitory facilities at the 4 United States Merchant Marine Academy by rapidly 5 implementing a comprehensive plan for campus-wide 6 modernization in accordance with section 51329 of 7 title 46, United States Code, (referred to in this sec- 8 tion as the "Campus Modernization Plan") and pro- 9 viding sufficient accountability and oversight to en- 10 sure that milestones in such plan are met; 11 (2) in developing the comprehensive Campus 12 Modernization Plan for the United States Merchant 13 Marine Academy, the Maritime Administration, and 14 the Department of Transportation should utilize, to 15 the maximum extent practicable, the "Merchant Ma- 16 rine Academy Full Speed Ahead Plan" developed by 17 the Maritime Security Infrastructure Council as 18 summarized in the Congressional Record, dated Feb- 19 ruary 28, 2024; 20 (3) given the conditions of the United States 21 Merchant Marine Academy as of the date of enact- 22 went of this section, a comprehensive, campus-wide 23 modernization is needed to significantly upgrade or 24 replace facilities throughout the campus; and OST-2025-1200 Page 00646 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012327 B0M24567 S6J S.L.C. 276 1 (4) the Maritime Administration and the De- 2 partment of Transportation should identify opportu- 3 nities to utilize design-build contracts to increase de- 4 livery times and reduce costs. 5 (c) CAMPUS MODERNIZATION PLAN.--Chapter 513 6 of title 46, United States Code, is amended by adding at 7 the end the following: 8 " 51329. 10-year Campus Modernization Plan 9 "(a) IN GENERAL.--Not later than 180 days after 10 the date of enactment of this section, the Secretary shall 11 develop and begin to implement a comprehensive Campus 12 Modernization Plan (referred to in this section as the 13 `Campus Modernization Plan'), informed by the `United 14 States Merchant Marine Academy Full Speed Ahead Plan' 15 developed by the Maritime Security Infrastructure Council 16 as summarized in the Congressional Record, dated Feb- 17 ruary 28, 2024, to carry out a campus-wide modernization 18 at the United States Merchant Marine Academy. 19 "(b) OBJECTIVES.-In carrying out the Campus 20 Modernization Plan authorized under subsection (a), the 21 Administrator shall prioritize the following objectives: 22 "(1) Promoting modern education best prac- 23 tices by constructing learning facilities that leverage 24 state-of-the art technologies and learning best prac- 25 tices. OST-2025-1200 Page 00647 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012328 B0M24567 S6J S.L.C. 277 1 "(2) Providing Midshipmen with access to fa- 2 cilities needed to pass the United States Coast 3 Guard License Exam for Third Mate or Third As- 4 sistant Engineer Unlimited. 5 "(3) Ensuring Midshipmen have access to fa- 6 cilities sufficient to enable Midshipmen to maintain 7 physical readiness standards required of United 8 States Navy officers. 9 "(4) Developing campus infrastructure to en- 10 sure the Academy attracts a diverse pool of appli- 11 cants. 12 "(5) Providing facilities that enable industry 13 engagement and continuing education opportunities. 14 "(6) Maintaining a safe and secure campus en- 15 viromnent for all Midshipmen, which shall include 16 any facilities or infrastructure needed to meet the 17 requirements of sections 51326, 51327, or 51328 of 18 this title. 19 "(7) Implementing, to the extent practicable, 20 the facilities and infrastructure recommendations in 21 chapter 4 of the report titled `Organizational Assess- 22 anent of the United States Merchant Marine Acad- 23 emy: A Path Forward' issued by the National Acad- 24 emy of Public Administration in November 2021. OST-2025-1200 Page 00648 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012329 BOM24567 S6J S.L.C. 278 1 "(c) INCLUSIONS.--In meeting the objectives of sub- 2 section (b), the Campus Modernization Plan authorized 3 under subsection (a) shall include- 4 "(1) construction of new facilities or significant 5 renovation of existing facilities to provide- 6 "(A) Standards of Training, Certification, 7 and Watchkeeping applications laboratories; 8 "(B) a Safety Of Life At Sea training 9 pool; 10 "(C) engineering powerplant laboratories; 11 "(D) athletic facilities that meet the needs 12 of both male and female students; 13 "(E) enhanced waterfront facilities, to in- 14 elude a new pier; 15 "(F) a visitor welcome center and main 16 campus security office building; 17 "(G) housing facilities for senior staff and 18 faculty; and 19 "(H) sufficient parking facilities for fac- 20 ulty, staff, and campus visitors; 21 "(2) upgrades to all classrooms and laboratories 22 with modern information technology infrastructure; 23 "(3) a campus-wide upgrade and retrofit of- 24 "(A) the electric distribution power grid; 25 "(B) the sanitary sewer system piping; OST-2025-1200 Page 00649 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012330 BOM24567 S6J S.L.C. 279 1 "(C) the storm drainage system; and 2 "(D) the drinking water system, including 3 development of a separate and redundant fire 4 suppression system; and 5 "(4) renovations of existing campus facilities to 6 ensure all campus facilities- 7 "(A) are structurally sound; 8 "(B) have reliable heating and air condi- 9 tioning systems; 10 "(C) have functioning plumbing and elec- 11 trical systems; 12 "(D) are protected from the elements, in- 13 eluding through roof replacements and window 14 repairs or replacements, as needed; 15 "(E) are accessible in accordance with the 16 Americans with Disabilities Act of 1990; and 17 "(F) have working fire alarm and fire sup- 18 pression systems. 19 "(d) REQUIREMENTS.--For the duration of the Cam- 20 pus Modernization Plan authorized under subsection (a), 21 the Administrator shall ensure that the Academy remains 22 fully operational. 23 "(e) USE OF A FEDERAL CONSTRUCTION AGENT.- 24 Consistent with the requirements of section 3515(d)(3) of 25 the James M. Inhofe National Defense Authorization Act OST-2025-1200 Page 00650 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012331 BOM24567 S6J S.L.C. 280 1 for Fiscal Year 2023 (Public Law 117-263), the Adminis- 2 trator shall seek to enter into an agreement with a Federal 3 construction agent to carry out the Campus Modernization 4 Plan authorized under subsection (a). 5 "(f) AUTHORIZATION OF APPROPRIATIONS.--There 6 are authorized to be appropriated to the Department of 7 Transportation, out of the Maritime Security Trust Fund 8 established under section 9512 of the Internal Revenue 9 Code of 1986, for fiscal years 2025 through 2034, for the 10 phased rehabilitation, modernization, and construction of 11 facilities and infrastructure at the United States Merchant 12 Marine Academy, in accordance with this section, includ- 13 ing the Campus Modernization Plan authorized in sub- 14 section (a), $1,020,000,000 of which- 15 "(1) $54,000,000 is authorized to be appro- 16 priated for fiscal year 2025 for design and planning 17 purposes, which shall be used for the development of 18 a design-build plan for the phased rehabilitation, 19 modernization, and construction of facilities and in- 20 frastructure at the United States Merchant Marine 21 Academy in accordance with the Campus Moderniza- 22 tion Plan; and 23 "(2) for fiscal years 2026 through 2034, 24 $107,333,333 is authorized to be appropriated for 25 each year for construction and contingency pur- OST-2025-1200 Page 00651 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012332 B0M24567 S6J S.L.C. 281 1 chases necessary to execute the Campus Moderniza- 2 tion Plan.". 3 (d) CLERICAL AMENDMENT.--The table of sections 4 for chapter 513 of title 46, United States Code, is amend- 5 ed by adding at the end the following: "51329. 10-Year Campus Modernization Plan.". 6 SEC. 622. UNITED STATES MERCHANT MARINE ACADEMY. 7 (a) SENSE OF CONGRESS.--it is the sense of Con- 8 gress that- 9 (1) the United States Merchant Marine Acad- 10 emy, one of our Nation's 5 Federal service acad- 11 envies, is vital to our national security, and modern- 12 izing the Academy's aging infrastructure and invest- 13 ing in faculty and students must be congressional 14 priorities; 15 (2) sufficient funding must be provided to en- 16 able the maximum student enrollment that the cam- 17 pus infrastructure of the United States Merchant 18 Marine Academy can support; and 19 (3) considering the Academy's role as a co- 20 equal military service academy, the United States 21 Merchant Marine Academy should be included in the 22 rotation of presidential attendance at graduations. 23 (b) AUTHORIZATION OF APPROPRIATIONS.--Section 24 51301 of title 46, United States Code, is amended by add- 25 ing at the end the following: OST-2025-1200 Page 00652 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012333 BOM24567 S6J S.L.C. 282 1 "(d) AUTHORIZATION OF APPROPRIATIONS.--There 2 are authorized to be appropriated to the Department of 3 Transportation $125,000,000 for each of fiscal years 2025 4 through 2034 for Academy operations.". 5 (c) REPORT ON ENROLLMENT.--Not later than 180 6 days after the date of enactment of this Act, the Maritime 7 Administrator shall submit a report to the appropriate 8 committees of Congress identifying the additional re- 9 sources needed to increase enrollment at the United States 10 Merchant Marine Academy. 11 SEC. 623. RETIREMENT SERVICE CREDIT FOR SERVICE AS 12 A MIDSHIPMAN AT THE UNITED STATES MER- 13 CHANT MARINE ACADEMY. 14 (a) CIVIL SERVICE RETIREMENT SYSTEM.--SeCtiOn. 15 8331(13) of title 5, United States Code, is amended, in 16 the flush text following subparagraph (C), by inserting "or 17 the United States Merchant Marine Academy" after 18 "Naval Academy". 19 (b) FEDERAL EMPLOYEES' RETIREMENT SYSTEM.- 20 Section 8401(31) of title 5, United States Code, is amend- 21 ed, in the flush text following subparagraph (C), by insert- 22 ing "or the United States Merchant Marine Academy" 23 after "Naval Academy". 24 (c) APPLICABILITY.--The amendments made by this 25 section shall apply to-- OST-2025-1200 Page 00653 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012334 BOM24567 S6J S.L.C. 283 1 (1) any annuity, the eligibility for which is 2 based on a separation occurring before, on, or after 3 the date of enactment of this Act; and 4 (2) any period of service as a midshipman at 5 the United States Merchant Marine Academy occur- 6 ring before, on, or after the date of enactment of 7 this Act. 8 SEC. 624. STATE MARITIME ACADEMIES. 9 (a) IN GENERAL.--Not later than 180 days after the 10 date of enactment of this Act, the Maritime Administrator 11 shall submit a report to Congress containing the results 12 of a study to evaluate the additional resources needed to 13 allow State maritime academies to increase enrollment and 14 produce additional mariners. 15 (b) NEED FOR ADDITIONAL STATE MARITIME ACAD- 16 EMIES.--Such study shall consider whether there is a need 17 for additional State maritime academies in States that do 18 not operate a maritime academy. 19 (c) AUTHORIZATION OF APPROPRIATIONS.--Section 20 51501 of title 46, United States Code, is amended by add- 21 ing at the end the following: 22 "(d) AUTHORIZATION OF APPROPRIATIONS.--There 23 is authorized to be appropriated out of the Maritime Secu- 24 rity Trust Fund established under section 9512 of the In- 25 ternal Revenue Code of 1986, $10,000,000 for assistance OST-2025-1200 Page 00654 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012335 BOM24567 S6J S.L.C. 284 1 to State maritime academies under subsection (a) for each 2 of fiscal years 2025 through 2034.". 3 SEC. 625. MILITARY TO MARINER ENROLLMENT AT A STATE 4 MARITIME ACADEMY. 5 Section 51506 of title 46, United States Code, is 6 amended- 7 (1) in subsection (a)(2), by inserting before the 8 semicolon the following: ", which shall include stand- 9 ards for a program described in subsection (c)"; 10 (2) by redesignating subsection (c) as sub- 11 section (d); and 12 (3) by inserting after subsection (b) the fol- 13 lowing: 14 "(c) MERCHANT MARINER EXPEDITED PREPARA- 15 TION PROGRAM.- 16 "(1) IN GENERAL.--A State maritime academy 17 shall offer a program for eligible individuals de- 18 scribed in paragraph (2) through which the eligible 19 individuals- 20 "(A) complete a merchant marine officer 21 preparation program approved by the Secretary, 22 and the requirements for the issuance of a li- 23 cense under section 7101 of this title, in less 24 than 3 years; and OST-2025-1200 Page 00655 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012336 BOM24567 S6J S.L.C. 285 1 "(B) are not required to earn a bacca- 2 laureate or other degree from the State mari- 3 time academy. 4 "(2) ELIGIBLE INDIVIDUALS.--An eligible indi- 5 vidual described in paragraph (1) is an individual 6 who- 7 "(A)(i) is an honorably discharged veteran 8 of the Armed Forces; or 9 "(ii) is a member of the National Guard or 10 Reserves with not less than 6 years of service; 11 and 12 "(B) has earned a baccalaureate degree 13 from an institution of higher education (as de- 14 fined in section 102 of the Higher Education 15 Act of 1965 (20 U.S.C. 1002)) before entering 16 the State maritime academy program.". 17 SEC. 626. ENFORCEMENT OF SERVICE OBLIGATION RE- 18 QUIREMENTS. 19 (a) IN GENERAL.--The Maritime Administrator shall 20 ensure that- 21 (1) each citizen who is appointed as a cadet at 22 the United States Merchant Marine Academy and 23 signs a cadet commitment agreement under section 24 51306 of title 46, United States Code, meets the OST-2025-1200 Page 00656 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012337 BOM24567 S6J S.L.C. 286 1 service obligation requirements of that agreement; 2 and 3 (2) each individual that signs a student incen- 4 tive payment agreement under section 51509 of title 5 46, United States Code, meets the service obligation 6 requirements under that agreement. 7 (b) REPORTING REQUIREMENT.--The Maritime Ad- 8 ministrator shall establish an electronic system through 9 which each individual with a service obligation under such 10 section 51306 or 51509 (referred to in this section as a 11 "service-obligated mariner") shall annually demonstrate 12 that they are meeting their service obligation or have a 13 valid deferment consistent with section 51310 of title 46, 14 United States Code, or section 51510 of title 46, United 15 States Code, as applicable. 16 (c) NOTIFICATION OF VIOLATION.--The Maritime 17 Administrator shall transmit a written notice to each serv- 18 ice-obligated mariner who fails to meet the reporting re- 19 quirement of subsection (b), notifying such individual of 20 the applicable penalties established under section 51306 21 of title 46, United States Code, or section 51509 of title 22 46, United States Code, for failure to carry out the appli- 23 cable service requirements, including cost recovery. 24 (d) REPORT TO CONGRESS.--Not later than 180 days 25 after the date of enactment of this section, and annually OST-2025-1200 Page 00657 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012338 BOM24567 S6J S.L.C. 287 1 thereafter, the Maritime Administrator shall submit to the 2 appropriate committees of Congress a report on the status 3 of all service-obligated mariners, which shall include- 4 (1) information about how each service-obli- 5 gated mariner is meeting their service obligation re- 6 quirement, which shall be based on the results of the 7 data collected under subsection (b); 8 (2) the number of service-obligated mariners 9 who have not met their service obligation and have 10 not complied with the reporting requirement under 11 subsection (b); and 12 (3) the number of actions taken by the Mari- 13 time Administrator under sections 51306(b), 14 51306(d), 51306(f), and 51509(g) to recover costs 15 from service-obligated mariners who have not dem- 16 onstrated that they have met their service obligation 17 requirements. 18 SEC. 627. FUEL FUNDING FOR TRAINING SHIPS OPERATED 19 BY STATE MARITIME ACADEMIES. 20 (a) CONFORMING AMENDMENT.--Section 51504 of 21 title 46, United States Code, is amended by striking sub- 22 section (f) and inserting the following: 23 "(f) FUEL COSTS.--Subject to the availability of ap- 24 propriations, the Secretary shall pay to each State mari- 25 time academy the costs of fuel used by a vessel provided OST-2025-1200 Page 00658 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012339 BOM24567 S6J S.L.C. 288 1 under this section while used for training in accordance 2 with section 51512.". 3 (b) AMENDMENT.--Chapter 515 of title 46, United 4 States Code, is amended by adding at the end the fol- 5 lowing: 6 "51512. Funding for training ships operated by 7 State maritime academies 8 "(a) FUEL FUNDING.- 9 "(1) IN GENERAL.--Subject to the availability 10 of appropriations, the Secretary shall pay to each 11 State maritime academy the costs of fuel used by a 12 vessel that is loaned to the State maritime academy 13 in accordance with section 51504 while used for 14 training. 15 "(2) MAXIMUM AMOUNTS.--The amount of the 16 payment to a State maritime academy under sub- 17 section (a) may not exceed $20,000,000 for each of 18 fiscal years 2025 through 2034. 19 "(3) PROHIBITION.--Maritime academies that 20 receive funding under subsection (a) may not- 21 "(A) profit from charging cadets to go to 22 sea for their licensing when using federally pro- 23 \Tided fuel; or 24 "(B) utilize the vessel as housing for stu- 25 dents outside of seasonal training cruises, un- OST-2025-1200 Page 00659 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012340 BOM24567 S6J S.L.C. 289 1 less students elect voluntarily to live aboard the 2 vessel. 3 "(4) REQUIREMENT.--Each State maritime 4 academy that receives fuel costs under this section 5 shall offer billets for liaison officers from each mili- 6 tary service during the time such vessel is provided 7 to that State maritime academy. 8 "(b) CREW.- 9 "(1) IN GENERAL.--Each State maritime acad- 10 emy shall make crew positions available on a vessel 11 that is loaned to the State maritime academy for 12 mariners enrolled in the United States Merchant 13 Marine Career Retention Program established under 14 section 52105. 15 "(2) CREW FUNDING.--For each crew slot filled 16 by a mariner enrolled in the career retention pro- 17 gram, as provided for under paragraph (1), the Sec- 18 retary shall pay the crew costs for that mariner, 19 subject to the availability of appropriations. 20 "(c) AUTHORIZATION OF APPROPRIATIONS.--There 21 is authorized to be appropriated out of the Maritime Secu- 22 rity Trust Fund, established under section 9512 of the 23 Internal Revenue Code of 1986, $120,000,000 to carry 24 out this section for each of fiscal years 2025 through 25 2034.". OST-2025-1200 Page 00660 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012341 BOM24567 S6J S.L.C. 290 1 (C) CLERICAL AMENDMENT.--The table of sections 2 for chapter 515 of title 46, United States Code, is amend- 3 ed by adding at the end the following: "51512. Fuel funding for training ships operated by State maritime academies.". 4 SEC. 628. STATE MARITIME ACADEMY SEA TERM SCHOLAR- 5 SHIP PROGRAMS. 6 (a) IN GENERAL.--Chapter 515 of title 46, United 7 States Code, as amended by section 627, is further amend- 8 ed by adding at the end the following: 9 " 51513. State Maritime Academy Sea Term Scholar- 10 ship Programs 11 "(a) IN GENERAL.--The Maritime Administrator 12 shall work with private entities in the maritime industry 13 to establish a scholarship program- 14 "(1) for students at State maritime academies 15 to offset expenses associated with completion of a 16 summer sea term to receive sea-time required to 17 earn a Coast Guard license; and 18 "(2) which is entirely or predominantly funded 19 through contributions from a private entity. 20 "(b) CONTRIBUTED FUNDS.--The Maritime Admin- 21 istrator shall enter into a cooperative agreement, or other 22 agreement, with private entities in the maritime industry 23 to accept funding from private entities for the purpose of 24 establishing such a scholarship program. The cooperative OST-2025-1200 Page 00661 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012342 BOM24567 S6J S.L.C. 291 1 agreement may include any terms considered necessary by 2 the Maritime Administrator. 3 "(c) PRIVILEGES.--The Maritime Administrator may 4 provide certain privileges to a private entity who contrib- 5 utes funds for a scholarship program under this section, 6 including opportunities to provide information about em- 7 ployment opportunities with the private entity to students 8 enrolled in the scholarship program. 9 "(d) STRUCTURE.--In establishing a scholarship pro- 10 gram to offset expenses associated with a summer sea 11 term- 12 "(1) the Maritime Administrator may enter into 13 an agreement with a student at a State maritime 14 academy that has an agreement with the Secretary 15 of Transportation under section 51505 of this title, 16 to offset expenses associated with completion of a 17 summer sea term; or 18 "(2) the Maritime Administrator may enter into 19 an agreement with a State maritime academy that 20 has an agreement with the Secretary of Transpor- 21 tation under section 51505 of this title, to offset ex- 22 penses for all students who participate in a summer 23 sea term program. 24 "(e) RELATIONSHIP TO FINANCIAL ASSISTANCE 25 PROGRA1VIS.--Recognizing the need for licensed merchant OST-2025-1200 Page 00662 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012343 BOM24567 S6J S.L.C. 292 1 mariners, the Maritime Administrator shall encourage 2 participants of the financial assistance programs under 3 part C of this subtitle, to enter into agreements under this 4 section to establish scholarship programs to offset ex- 5 penses associated with summer sea term. 6 "(f) REQUIREMENTS FOR STUDENTS.--Any student 7 who benefits from a scholarship program under this sec- 8 tion shall enter into an agreement with the Maritime Ad- 9 ministrator which requires the student to- 10 "(1) complete the course of instruction at the 11 academy the individual is attending; 12 "(2) obtain a merchant mariner license, without 13 limitation as to tonnage or horsepower, from the 14 Coast Guard as an officer in the merchant marine 15 of the United States, accompanied by the appro- 16 priate national and international endorsements and 17 certification required by the Coast Guard for service 18 aboard vessels on domestic and international voy- 19 ages, without limitation, within 3 months of comple- 20 tion of the course of instruction at the academy the 21 individual is attending; 22 "(3) serve in a position that supports the for- 23 eign and domestic commerce and the national de- 24 Tense of the United States for at least 1 year after 25 graduation from the academy-- OST-2025-1200 Page 00663 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012344 BOM24567 S6J S.L.C. 293 1 "(A) as a merchant marine officer on a 2 documented vessel or a vessel owned and oper- 3 ated by the United States Government or by a 4 State; or 5 "(B) as a commissioned officer on active 6 duty in an Armed Force of the United States, 7 as a commissioned officer in the National Oce- 8 anic and Atmospheric Administration, or in 9 other maritime-related Federal employment 10 which serves the national security interests of 11 the United States, as determined by the Mari- 12 time Administrator; and 13 "(4) report to the Maritime Administrator on 14 compliance with this subsection. 15 "(g) AUTHORIZATION OF APPROPRIATIONS.--There 16 is authorized to be appropriated out of the Maritime Secu- 17 rity Trust Fund, established under section 9512 of the 18 Internal Revenue Code of 1986, $2,500,000 to carry out 19 this section for each of fiscal years 2025 through 2034.". 20 (b) CLERICAL AMENDMENT.--The table of sections 21 for chapter 515 of title 46, United States Code, as amend- 22 ed by section 627, is further amended by adding at the 23 end the following: "51513. State Maritime Academy Sea Term Scholarship Prog,rams.". OST-2025-1200 Page 00664 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012345 BOM24567 S6J S.L.C. 294 1 SEC. 629. NAVAL JOINT EXERCISE INVOLVEMENT FOR 2 TRAINING SHIPS OPERATED BY STATE MARI- 3 TIME ACADEMIES. 4 (a) IN GENERAL.--The Secretary of the Navy, in co- 5 ordination with the Maritime Administrator, shall, to the 6 extent practicable, include in national and international 7 maritime warfare exercises not less than 1 training vessel 8 used by a State maritime academy and maintained pursu- 9 ant to section 51504 of title 46, United States Code, in 10 order to provide an opportunity to integrate merchant 11 mariners with naval and military operations. 12 (b) PARTICIPANTS.--Subject to guidance issued by 13 the Secretary of the Navy and Maritime Administrator, 14 an individual may participate in the exercise aboard that 15 training ship if the individual is- 16 (1) a licensed merchant mariner; or 17 (2) a student from the United States Merchant 18 Marine Academy, a State maritime academy, a Cen- 19 ter of Excellence for Domestic Maritime Workforce 20 Training and Education, or a merchant marine cen- 21 ter established under section 147 of the Workforce 22 Innovation and Opportunity Act (29 U.S.C. 3197), 23 as added by section 612 of this Act. 24 (c) PRIORITY.-In selecting participants under sub- 25 section (b) the Administrator shall give priority to stu- 26 dents described in paragraph (2) of subsection (b). OST-2025-1200 Page 00665 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012346 BOM24567 S6J S.L.C. 295 1 (d) VESSELS.--In coordination with the Secretary of 2 the Navy, the Maritime Administrator shall rotate train- 3 ing vessels to ensure that each training vessel described 4 in subsection (a) has an equal opportunity to participate 5 in such exercises. 6 Subtitle D Maritime 7 Credentialing Modernization 8 SEC. 631. MERCHANT MARINER CREDENTIALING MOD- 9 ERNIZATION. 10 (a) MERCHANT MARINER CREDENTIALING MOD- 11 ERNIZATION.--The Secretary of the department in which 12 the Coast Guard is operating shall carry out necessary 13 system and process changes to carry out the activities de- 14 scribed in paragraphs (1) through (4). 15 (1) LICENSING, CERTIFICATION, AND DOCU- 16 MENTATION DATABASE.--Replacement of the mer- 17 chant mariner licensing, certification, and docu- 18 mentation database such that the database allows 19 for- 20 (A) the electronic submission of merchant 21 mariner credential applications (including sea 22 service, professional qualifications, course coin- 23 pletion data, safety and suitability, and medical 24 records) and course approval requests; OST-2025-1200 Page 00666 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012347 BOM24567 S6J S.L.C. 296 1 (B) direct submission of sea service infor- 2 'nation from employers and course completion 3 data from training providers and other stake- 4 holders to provide data securely and directly so 5 that documentation does not need to be sub- 6 mitted later by the merchant mariner; and 7 (C) the electronic processing and evalua- 8 tion of information for the issuance of creden- 9 tials and course approvals, including the capa- 10 bility for the Secretary to complete remote eval- 11 uation of the information submitted. 12 (2) SYSTEM FOR DATA EXCHANGE.-Implemen- 13 tation of a system that provides for the exchange of 14 data with government agencies and industry stake- 15 holders, which provides the Maritime Administration 16 and other agencies, as appropriate, anonymized and 17 aggregated data showing the following: 18 (A) The total amount of sea service for in- 19 dividuals with a valid merchant mariner creden- 20 tial. 21 (B) The number of credentialed mariners 22 by individual rating and the capability to filter 23 data by endorsements. 24 (C) Demographic information, including 25 age, gender, ethnicity, and address or location. OST-2025-1200 Page 00667 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012348 B0M24567 S6J S.L.C. 297 1 (D) National Maritime Center processing 2 times. 3 (E) The number of Coast Guard approved 4 training providers, and, for each such training 5 provider, the number of courses taken by indi- 6 viduals who have, or who are applying for, a 7 merchant mariner credential from that training 8 provider. 9 (3) PUBLIC FACING PORTAL.-Implementation 10 of a system that includes a public facing portal in 11 the .gov domain instead of the .mil domain to accept 12 merchant mariner applicant information, including 13 credential applications, course completion data, and 14 course approval requests, that complies with the re- 15 quirements for cybersecurity and privacy information 16 of electronic systems in the .gov domain. 17 (4) EXAMINATION PROCESSES.--Upgrading the 18 examination processes for merchant mariner exami- 19 nations, by- 20 (A) implementing an examination regime 21 that provides for electronic and third party ad- 22 ministration of examinations; 23 (B) reassessing the content of tests 24 through the development of job task analysis 25 for all credentials; and OST-2025-1200 Page 00668 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012349 BOM24567 S6J S.L.C. 298 1 (C) implementing a robust system to ana- 2 lyze examination data. 3 (b) REPORT.--The Secretary of the department in 4 which the Coast Guard is operating shall submit- 5 (1) an annual report to the Committee on Coin- 6 merce, Science, and Transportation, the Committee 7 on Appropriations, and the Committee on Armed 8 Services of the Senate, and the Committee on 9 Transportation and Infrastructure, the Committee 10 on Appropriations, and the Committee on Armed 11 Services of the House of Representatives, on the 12 progress of the system and process changes required 13 under subsection (a); and 14 (2) a final report to those Committees 1 year 15 after full operating capability of the complete sys- 16 teen, comprised of all 4 systems required under sub- 17 section (a). 18 (c) AUTHORIZATION OF APPROPRIATIONS.--There is 19 authorized to be appropriated out of the Maritime Secu- 20 rity Trust Fund, established under section 9512 of the 21 Internal Revenue Code of 1986 to carry out this section, 22 $20,000,000 for fiscal year 2025, to remain available until 23 expended. OST-2025-1200 Page 00669 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012350 BOM24567 S6J S.L.C. 9 99 SEC. 632. REVISING MERCHANT MARINER DECK TRAINING 2 REQUIREMENTS. 3 (a) GENERAL DEFINITIONS.--Section 2101 of title 4 46, United States Code, is amended- 5 (1) by redesignating paragraphs (20) through 6 (56) as paragraphs (21) through (57), respectively; 7 and 8 (2) by inserting after paragraph (19) the fol- 9 lowing: 10 "(20) `merchant mariner credential' means a 11 merchant mariner license, certificate, or document 12 that the Secretary is authorized to issue pursuant to 13 this title.". 14 (b) EXA1VIINATIONS.--Section 7116 of title 46, 15 United States Code, is amended by striking subsection (c). 16 (c) MERCHANT MARINERS DOCUMENTS.- 17 (1) GENERAL REQUIREMENTS.--Section 7306 18 of title 46, United States Code, is amended to read 19 as follows: 20 " 7306. General requirements and classifications for 21 members of deck departments 22 "(a) IN GENERAL.--The Secretary may issue a mer- 23 chant mariner credential, to members of the deck depart- 24 ment in the following classes: 25 "(1) Able Seaman-Unlimited. 26 "(2) Able Seaman-Limited. OST-2025-1200 Page 00670 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012351 BOM24567 S6J S.L.C. 300 1 "(3) Able Seaman-Special. 2 "(4) Able Seaman-Offshore Supply Vessels. 3 "(5) Able Seaman-Sail. 4 "(6) Able Seaman-Fishing Industry. 5 "(7) Ordinary Seaman. 6 "(b) CLASSIFICATION OF CREDENTIALS.--The Sec- 7 retary may classify the merchant mariner credential issued 8 under subsection (a) based on- 9 "(1) the tonnage and means of propulsion of 10 vessels; 11 "(2) the waters on which vessels are to be oper- 12 ated; or 13 "(3) other appropriate standards. 14 "(c) CONSIDERATIONS.-In issuing the credential 15 under subsection (a), the Secretary may consider the fol- 16 lowing qualifications of the merchant mariner: 17 "(1) Age. 18 "(2) Character. 19 "(3) Habits of life. 20 "(4) Experience. 21 "(5) Professional qualifications demonstrated 22 by satisfactory completion of applicable examinations 23 or other educational requirements. 24 "(6) Physical condition, including sight and 25 hearing. OST-2025-1200 Page 00671 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012352 BOM24567 S6J S.L.C. 301 1 "(7) Other requirements established by the Sec- 2 retary, including career patterns and service appro- 3 priate to the particular service, industry, or job 4 functions the individual is engaged.". 5 (2) CLERICAL AMENDMENT.--The table of sec- 6 tions for chapter 73 of title 46, United States Code, 7 is amended by striking the item relating to section 8 7306 and inserting the following: "7306. General requirements and classifications for members of deck departments.". 9 (3) GENERAL REQUIREMENTS FOR MEMBERS 10 OF ENGINE DEPARTMENTS.--Section 7313(b) of title 11 46, United States Code, is amended by striking 12 "and coal passer". 13 (4) TRAINING.--Section 7315 of title 46, 14 United States Code, is amended- 15 (A) by amending subsection (a) to read as 16 follows: 17 "(a) Graduation from a nautical school program ap- 18 proved by the Secretary may be substituted for the service 19 requirements under sections 7307 through 7311a and 20 7314."; 21 (B) in subsection (b)- 22 (i) by striking "one-third" and insert- 23 ing "one-half"; and OST-2025-1200 Page 00672 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012353 B0M24567 S6J S.L.C. 302 1 (ii) by striking "7307-7311 of this 2 title" and inserting "7307-7311a and 3 7314"; and 4 (C) by striking subsection (c). 5 (d) REDUCTION OF LENGTHS OF CERTAIN PERIODS 6 OF SERVICE.- 7 (1) IN GENERAL.--Title 46, United States 8 Code, is amended- 9 (A) in section 7307, by striking "3 years" 10 and inserting "18 months"; 11 (B) in section 7308, by striking "18 12 months" and inserting "12 months"; and 13 (C) in section 7309, by striking "12 14 months" and inserting "6 months". 15 (2) TEMPORARY REDUCTION OF LENGTHS OF 16 CERTAIN PERIODS OF SERVICE.--Section 3534(j) of 17 the National Defense Authorization Act for Fiscal 18 Year 2024 (Public Law 118-31) is repealed. 19 (e) MERCHANT MARINER CREDENTIALS.--Section 20 7510 of title 46, United States Code, is amended by strik- 21 ing subsection (d). 22 (f) IMPLEMENTATION.--The Secretary of the depart- 23 ment in which the Coast Guard is operating shall imple- 24 ment the amended requirements under subsections (c)(3), 25 (c)(4), and (d)(1) of this section without regard to chap- OST-2025-1200 Page 00673 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012354 BOM24567 S6J S.L.C. 303 1 ters 5 and 6 of title 5, United States Code, and Executive 2 Orders 12866 and 13563 (5 U.S.C. 601 note). 3 SEC. 633. INSPECTIONS FOR TRANSPORTATION SECURITY. 4 (a) IN GENERAL.--Chapter 81 of part F of subtitle 5 II of title 46, United States Code, is amended by adding 6 at the end the following: 7 " 8109. Inspections for transportation security 8 "(a) IN GENERAL.- 9 "(1) INSPECTION.--The Secretary shall periodi- 10 cally, but not less than once annually, inspect each 11 covered facility to verify that the owner or operator 12 of the covered facility has a valid exemption under 13 subsection (c) of section 30 of the Outer Continental 14 Shelf Lands Act (43 U.S.C. 1356(c)). 15 "(2) COVERED FACILITY.-In this subsection, 16 the term `covered facility' means a vessel, rig, plat- 17 form, or other vehicle or structure that, but for an 18 exemption under subsection (c) of section 30 of the 19 Outer Continental Shelf Lands Act (43 U.S.C. 20 1356(c)) would otherwise be subject to the regula- 21 tions under subsection (a)(3) of such section. 22 "(b) TRANSPORTATION SECURITY CARD.--During an 23 inspection under this section, the Secretary shall confirm 24 that all crew members that are required to have a trans- OST-2025-1200 Page 00674 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012355 BOM24567 S6J S.L.C. 304 1 portation worker identification credential pursuant to sec- 2 tion 70105 have such a credential.". 3 (b) CLERICAL AMENDMENT.--The table of sections 4 for chapter 81 of title 46, United States Code, is amended 5 by adding at the end the following: "8109. Inspections for transportation security.". 6 SEC. 634. TECHNICAL AMENDMENTS RELATING TO REF- 7 ERENCES TO SEAMEN. 8 (a) MERCHANT MARINER CREDENTIALS.--The head- 9 ing for part E of subtitle II of title 46, United States 10 Code, is amended by striking "MERCHANT SEAMEN LI- 11 CENSES, CERTIFICATES, AND DOCUMENTS" and in- 12 serting "MERCHANT MARINER CREDENTIALS". 13 (b) ABLE SEAFARERS-UNLIMITED.- 14 (1) IN GENERAL.--The section heading for sec- 15 tion 7307 of title 46, United States Code, is amend- 16 ed by striking "seamen" and inserting "sea- 17 farers". 18 (2) CLERICAL AMENDMENT.--The table of sec- 19 tions for chapter 73 of title 46, United States Code, 20 is further amended in the item relating to section 21 7307 by striking "seamen" and inserting "sea- 22 farers". 23 (c) ABLE SEAMEN-LIMITED.- 24 (1) IN GENERAL.--The section heading for sec- 25 tion 7308 of title 46, United States Code, is amend- OST-2025-1200 Page 00675 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012356 BOM24567 S6J S.L.C. 305 1 ed by striking "seamen" and inserting "sea- 2 farers". 3 (2) CLERICAL AMENDMENT.--The table of sec- 4 tions for chapter 73 of title 46, United States Code, 5 is further amended in the item relating to section 6 7308 by striking "seamen" and inserting "sea- 7 farers". 8 (d) ABLE SEAFARERS-SPECIAL.- 9 (1) IN GENERAL.--The section heading for sec- 10 tion 7309 of title 46, United States Code, is amend- 11 ed by striking "seamen" and inserting "sea- 12 farers". 13 (2) CLERICAL .AMENDMENT.--The table of sec- 14 tions for chapter 73 of title 46, United States Code, 15 is further amended in the item relating to section 16 7309 by striking "seamen" and inserting "sea- 17 farers". 18 (e) ABLE SEAFARERS-OFFSHORE SUPPLY VES- 19 SELS.- 20 (1) IN GENERAL.--The section heading for sec- 21 tion 7310 of title 46, United States Code, is amend- 22 ed by striking "seamen" and inserting "sea- 23 farers". 24 (2) CLERICAL AMENDMENT.--The table of sec- 25 tions for chapter 73 of title 46, United States Code, OST-2025-1200 Page 00676 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012357 B0M24567 S6J S.L.C. 306 1 is further amended in the item relating to section 2 7310 by striking "seamen" and inserting "sea- 3 farers". 4 (f) ABLE SEAFARERS-SAIL.- 5 (1) IN GENERAL.--The section heading for sec- 6 tion 7311 of title 46, United States Code, is amend- 7 ed by striking "seamen" and inserting "sea- 8 farers". 9 (2) CLERICAL AMENDMENT.--The table of sec- 10 tions for chapter 73 of title 46, United States Code, 11 is further amended in the item relating to section 12 7311 by striking "seamen" and inserting "sea- 13 farers". 14 (g) ABLE SEAMEN-FISHING INDUSTRY.- 15 (1) IN GENERAL.--The section heading for sec- 16 tion 7311a of title 46, United States Code, is 17 amended by striking "seamen" and inserting 18 "seafarers". 19 (2) CLERICAL AMENDMENT.--The table of sec- 20 tions for chapter 73 of title 46, United States Code, 21 is further amended in the item relating to section 22 7311a by striking "seamen" and inserting "sea- 23 farers". 24 (h) PARTS E AND F.--Parts E and F of subtitle II 25 of title 46, United States Code, is amended-- OST-2025-1200 Page 00677 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012358 BOM24567 S6J S.L.C. 307 1 (1) by striking "seaman" and inserting "sea- 2 farer" each place it appears; and 3 (2) by striking "seamen" and inserting "sea- 4 farers" each place it appears. 5 (i) CLERICAL AMENDMENTS.--The table of sections 6 for subtitle II of title 46, United States Code, is amended 7 in the item relating to part E by striking "MERCHANT 8 SEAMEN LICENSES, CERTIFICATES, AND DOCU- 9 MENTS" and inserting "MERCHANT MARINER ORE- 10 DENTIALS". 1 1 SEC. 635. RENEWAL OF MERCHANT MARINER LICENSES 12 AND DOCUMENTS. 13 Section 7507 of title 46, United States Code, is 14 amended by adding at the end the following: 15 "(d) RENEWAL.With respect to any renewal of a 16 valid merchant mariner credential issued under this part 17 that is not an extension under subsection (a) or (b), the 18 validity period of such credential shall begin the day after 19 the expiration of the current credential.". 20 SEC. 636. MERCHANT SEAMEN LICENSES, CERTIFICATES, 21 AND DOCUMENTS; MANNING OF VESSELS. 22 (a) CITIZENSHIP OR NONCITIZEN NATIONALITY.- 23 (1) IN GENERAL.--Section 7102 of title 46, 24 United States Code, is amended-- OST-2025-1200 Page 00678 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012359 B0M24567 S6J 1 2 S.L.C. 308 (A) in the section heading, by inserting noncitizen nationality" after "Citi- 3 zenship"; and 4 (B) by inserting "or noncitizen nationals 5 (as such term is described in section 308 of the 6 Immigration and Nationality Act (8 U.S.C. 7 1408))" after "citizens of the United States". 8 (2) CLERICAL AMENDMENT.--The table of sec- 9 tions for chapter 71 of title 46, United States Code, 10 is amended by striking the item relating to section 11 7102 and inserting the following: "7102. Citizenship or noncitizen nationality.". 12 (b) CITIZENSHIP OR NONCITIZEN NATIONALITY NO- 13 TATION ON MERCHANT MARINERS' DOCUMENTS.- 14 (1) IN GENERAL.--SeCtion 7304 of title 46, 15 United States Code, is amended- 16 (A) in the section heading, by inserting 17 noncitizen nationality" after "Citi- 18 zenship"; and 19 (B) by inserting "or noncitizen national 20 (as such term is described in section 308 of the 21 Immigration and Nationality Act (8 U.S.C. 22 1408))" after "citizen of the United States". 23 (2) CLERICAL AMENDMENT.--The table of sec- 24 tions for chapter 73 of title 46, United States Code, OST-2025-1200 Page 00679 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012360 BOM24567 S6J S.L.C. 309 1 is amended by striking the item relating to section 2 7304 and inserting the following: "7304. Citizenship or noncitizen nationality notation on merchant mariners' documents.". 3 (c) CITIZENSHIP OR NONCITIZEN NATIONALITY.- 4 (1) IN GENERAL.--Section 8103 of title 46, 5 United States Code, is amended- 6 (A) in the section heading by inserting "or 7 noncitizen nationality" after "Citizen- 8 ship"; 9 (B) in subsection (a), by inserting "or non- 10 citizen national" after "citizen of the United 11 States"; 12 (C) in subsection (b)- 13 (i) in paragraph (1)(A)(i), by insert- 14 ing "or noncitizen national" after "citizen 15 of the United States"; and 16 (ii) in paragraph (3)- 17 (I) in the matter preceding sub- 18 paragraph (A), by inserting "or non- 19 citizen nationality" after "citizen- 20 ship"; and 21 (II) in subparagraph (C), by in- 22 serting "or noncitizen nationals" after 23 "citizens of the United States"; OST-2025-1200 Page 00680 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012361 BOM24567 S6J S.L.C. 310 1 (D) in subsection (c), by inserting "or non- 2 citizen nationals" after "citizens of the United 3 States"; 4 (E) in subsection (d)- 5 (i) in paragraph (1), by inserting "or 6 noncitizen nationals" after "citizens of the 7 United States"; and 8 (ii) in paragraph (2), by inserting "or 9 noncitizen national" after "citizen of the 10 United States" each place it appears; 11 (F) in subsection (e), in the matter pre- 12 ceding paragraph (1), by inserting "or noncit- 13 izen national" after "citizen of the United 14 States" each place it appears; 15 (G) in subsection (i)(1)(A), by inserting 16 "or noncitizen national" after "citizen of the 17 United States"; 18 (H) in subsection (k)(1)(A), by inserting 19 "or noncitizen national" after "citizen of the 20 United States"; and 21 (I) by adding at the end the following: 22 "(1) NONCITIZEN NATIONAL DEFINED.-In this sec- 23 tion, the term `noncitizen national' means an individual 24 described in section 308 of the Immigration and Nation- 25 ality Act (8 U.S.C. 1408).". OST-2025-1200 Page 00681 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012362 B0M24567 S6J S.L.C. 311 1 (2) CLERICAL AMENDMENT.--The table of sec- 2 tions for chapter 81 of title 46, United States Code, 3 is amended by striking the item relating to section 4 8103 and inserting the following: "8103. Citizenship or noncitizen nationality and Navy Reserve requirements.". 5 (d) COMMAND OF DOCUMENTED VESSELS.--Section 6 12131(a) of title 46, United States Code, is amended by 7 inserting "or noncitizen national (as such term is de- 8 scribed in section 308 of the Immigration and Nationality 9 Act (8 U.S.C. 1408))" after "citizen of the United 10 States". 11 (e) INVALIDATION OF CERTIFICATES OF Docu- 12 MENTATION.--Section 12135(2) of title 46, United States 13 Code, is amended by inserting "or noncitizen national (as 14 such term is described in section 308 of the Immigration 15 and Nationality Act (8 U.S.C. 1408))" after "citizen of 16 the United States". 17 SEC. 637. REACTIVATION OF EXPIRED LICENSE. 18 (a) IN GENERAL.--Chapter 75 of subtitle II of part 19 E, of title 46, United States Code, is amended by adding 20 at the end the following: 21 " 7512. Authority for reactivation of United States 22 Merchant Mariner credentials 23 "(a) LICENSES AND CERTIFICATES OF REGISTRY.- 24 Notwithstanding sections 7106 and 7107, the Secretary 25 of the department in which the Coast Guard is operating OST-2025-1200 Page 00682 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012363 BOM24567 S6J S.L.C. 312 1 may renew for not more than 2 years an expired license 2 or certificate of registry issued for an individual under 3 chapter 71 if the Secretary determines that the renewal 4 is in response to a national emergency declared by Con- 5 gress or declared under section 201 of the National Emer- 6 genies Act (50 U.S.C. 1621), as deemed necessary by the 7 Secretary. 8 "(b) MERCHANT MARINER DOCUMENTS.--Notwith- 9 standing section 7302(g), the Secretary may renew for not 10 more than 2 years an expiring merchant mariner's docu- 11 ment issued for an individual under chapter 73 if the Sec- 12 retary determines that the renewal is in response to a na- 13 tional emergency proclaimed by the President or declared 14 by Congress, as deemed necessary by the Secretary. 15 "(c) MANNER OF RENEWAL.Any renewal granted 16 under this section may be granted to individual seamen 17 or a specifically identified group of seamen.". 18 (b) CLERICAL AMENDMENT.--The table of sections 19 for chapter 75 of title 46, United States Code, is amended 20 by adding at the end the following: "7512. Authority for reactivation of United States Merchant Mariner credentials.". OST-2025-1200 Page 00683 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012364 BO11124567 S6J S.L.C. 313 TITLE VII-AMENDMENTS TO THE INTERNAL REVENUE 3 CODE OF 1986 4 SEC. 701. ESTABLISHMENT OF THE MARITIME SECURITY 5 TRUST FUND. 6 (a) IN GENERAL.--Subchapter A of chapter 98 of the 7 Internal Revenue Code of 1986 is amended by adding at 8 the end the following new section: 9 "SEC. 9512. MARITIME SECURITY TRUST FUND. 10 "(a) CREATION OF TRUST FUND.--There is estab- 11 lished in the Treasury of the United States a trust fund 12 to be known as the `Maritime Security Trust Fund', con- 13 sisting of such amounts as may be- 14 "(1) appropriated to such Trust Fund as pro- 15 vided in this section, or 16 "(2) credited to such Trust Fund as provided 17 in section 9602(b). 18 "(b) TRANSFERS TO TRUST FUND.--There are here- 19 by appropriated to the Trust Fund amounts equivalent 20 to- 21 "(1) the taxes received in the Treasury under- 22 "(A) section 1352 (relating to alternative 23 tax on qualifying shipping activities), 24 "(B) section 60301 of title 46, United 25 States Code (relating to regular tonnage taxes), OST-2025-1200 Page 00684 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012365 B0M24567 S6J S.L.C. 314 1 "(C) section 60302 of title 46, United 2 States Code (relating to special tonnage taxes), 3 and 4 "(D) section 60303 of title 46, United 5 States Code (relating to light money), 6 "(2) the amount received in the Treasury and 7 attributable to revenue collected from duties im- 8 posed- 9 "(A) under section 466 of the Tariff Act 10 of 1930 (19 U.S.C. 1466) (relating to equip- 11 ment and repair of vessels), 12 "(B) on and after July 6, 2018, with re- 13 spect to articles of the People's Republic of 14 China pursuant to section 301 of the Trade Act 15 of 1974 (19 U.S.C. 2411), notice of which was 16 published in the Federal Register on June 20, 17 2018 (83 Fed. Reg. 28710), and 18 "(C) under section 60502 of title 46, 19 United States Code (relating to discriminating 20 duty on goods imported in foreign vessels or 21 from contiguous countries), 22 "(3) any penalties paid with respect to a vessel 23 pursuant to- 24 "(A) section 436 of the Tariff Act of 1930 25 (19 U.S.C. 1436), OST-2025-1200 Page 00685 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012366 B0M24567 S6J S.L.C. 315 1 "(B) section 453 of the Tariff Act of 1930 2 (19 U.S.C. 1453), 3 "(C) section 454 of the Tariff Act of 1930 4 (19 U.S.C. 1454), 5 "(D) section 464 of the Tariff Act of 1930 6 (19 U.S.C. 1464), 7 "(E) section 497 of the Tariff Act of 1930 8 (19 U.S.C. 1497), 9 "(F) section 584 of the Tariff Act of 1930 10 (19 U.S.C. 1584), 11 "(G) section 592 of the Tariff Act of 1930 12 (19 U.S.C. 1592), 13 "(H) section 593A of the Tariff Act of 14 1930 (19 U.S.C. 1593a), 15 "(I) section 7 of the Act of June 19, 1886 16 (24 Stat. 81, chapter 421; 19 U.S.C. 1706a), 17 "(J) section 2107 of title 46, United 18 States Code, 19 "(K) section 2302 of title 46, United 20 States Code, 21 "(L) section 3318 of title 46, United 22 States Code, 23 "(M) section 3718 of title 46, United 24 States Code, OST-2025-1200 Page 00686 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012367 B0M24567 S6J S.L.C. 316 1 "(N) section 4106 of title 46, United 2 States Code, 3 "(O) section 5116 of title 46, United 4 States Code, 5 "(P) section 11303 of title 46, United 6 States Code, 7 "(Q) section 11501 of title 46, United 8 States Code, 9 "(R) section 12151 of title 46, United 10 States Code, 11 "(S) section 12507 of title 46, United 12 States Code, 13 "(T) section 14701 of title 46, United 14 States Code, 15 "(U) section 30707 of title 46, United 16 States Code, with respect to the portion of the 17 fine that goes to the United States Government 18 under subsection (c) of such section 30707, 19 "(V) section 31309 of title 46, United 20 States Code, 21 "(W) section 31330 of title 46, United 22 States Code, 23 "(X) section 41107 of title 46, United 24 States Code, OST-2025-1200 Page 00687 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012368 B0M24567 S6J S.L.C. 317 1 "(Y) section 41108 of title 46, United 2 States Code, 3 "(Z) section 42108 of title 46, United 4 States Code, 5 "(AA) section 44104 of title 46, United 6 States Code, 7 "(BB) section 70052 of title 46, United 8 States Code, 9 "(CC) section 70119 of title 46, United 10 States Code, 11 "(DD) section 70506 of title 46, United 12 States Code, and 13 "(EE) section 80509 of title 46, United 14 States Code, and 15 "(4) any revenue generated in connection with 16 the seizure and forfeiture of a maritime vessel 17 under- 18 "(A) section 3 of the Act of August 5, 19 1935 (49 Stat. 518, chapter 438; 19 U.S.C. 20 1703), 21 "(B) section 70052 of title 46, United 22 States Code, and 23 "(C) section 70507 of title 46, United 24 States Code. OST-2025-1200 Page 00688 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012369 B0M24567 S6J S.L.C. 318 1 "(c) EXPENDITURES FROM TRUST FUND.Amounts 2 in the Maritime Security Trust Fund shall be available, 3 as provided by appropriation Acts, for making expendi- 4 tures before October 1, 2035, to meet those obligations 5 of the United States heretofore and hereafter incurred 6 which are authorized to be paid out of the Maritime Secu- 7 rity Trust Fund under the SHIPS for America Act of 8 2024". 9 (b) CLERICAL AMENDMENT.--The table of sections 10 for subchapter A of chapter 98 of the Internal Revenue 11 Code of 1986 is amended by adding at the end the fol- 12 lowing new item: "Sec. 9512. Maritime Security Trust Fund.". 13 SEC. 702. UNITED STATES VESSEL INVESTMENT CREDIT. 14 (a) IN GENERAL.--Subpart E of part IV of sub- 15 chapter A of chapter 1 of the Internal Revenue Code of 16 1986 is amended by inserting after section 48E the fol- 17 lowing new section: 18 "SEC. 48F. UNITED STATES VESSEL INVESTMENT CREDIT. 19 "(a) IN GENERAL.--For purposes of section 46, the 20 United States Vessel Investment credit for any taxable 21 year is an amount equal to the applicable percentage of 22 any qualified investment for such taxable year with respect 23 to any qualified vessel. 24 "(b) APPLICABLE PERCENTAGE.--For purposes of 25 subsection (a), the applicable percentage with respect to OST-2025-1200 Page 00689 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012370 B0M24567 S6J S.L.C. 319 1 any qualified vessel shall be an amount equal to the sum 2 of- 3 "(1) 33 percent, plus 4 "(2) in the case of any qualified vessel for 5 which the owner of such vessel will, as part of the 6 agreement described in subsection (d)(1)(F) and for 7 the duration of such agreement, obtain protection 8 and indemnity insurance with respect to such vessel 9 from an insurance company that is domiciled and 10 headquartered in the United States and is an under- 11 writer that is approved by the Maritime Adminis- 12 trator, 5 percent, plus 13 "(3) in the case of any qualified vessel which is 14 classified by and designed in accordance with the 15 rules of the American Bureau of Shipping or any 16 other classification society headquartered in the 17 United States and recognized by the Secretary of 18 the department in which the Coast Guard is oper- 19 ating in accordance with section 3316 of title 46, 20 United States Code, 2 percent. 21 "(c) QUALIFIED INVESTMENT.--For purposes of sub- 22 section (a), the qualified investment with respect to any 23 qualified vessel is equal to the amount paid or incurred 24 by the taxpayer in connection with the construction, 25 repowering, or reconstruction of such vessel-- OST-2025-1200 Page 00690 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012371 B0M24567 S6J S.L.C. 320 1 "(1) in a shipyard of the United States, and 2 "(2) by an entity which is not a foreign entity 3 of concern. 4 "(d) QUALIFIED VESSEL.- 5 "(1) IN GENERAL.--For purposes of this sec- 6 tion, the term `qualified vessel' means a cargo ves- 7 sel-- 8 "(A) which is a United States flag vessel 9 (as defined in section 1355), 10 "(B) which, in the case of any repowering 11 or reconstruction of such vessel, was originally 12 constructed in the United States, 13 "(C) which operates in providing transpor- 14 tation in the United States foreign trade (as 15 such term is defined in section 1355(a)), 16 "(D) which is not a passenger vessel, as 17 defined in section 2101 of title 46, United 18 States Code, 19 "(E) which is- 20 "(i) a bulk carrier vessel, 21 "(ii) a tanker vessel, 22 "(iii) a roll-on/roll-off vessel, 23 "(iv) a container vessel, 24 "(v) a multi-purpose vessel, 25 "(vi) a cable vessel, OST-2025-1200 Page 00691 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012372 BOM24567 S6J S.L.C. 321 1 "(vii) a heavy-lift vessel, or 2 "(viii) any other type of vessel deter- 3 mined appropriate by the Maritime Admin- 4 istrator, in consultation with the Maritime 5 Security Board, 6 "(F) which, pursuant to an agreement be- 7 tween the taxpayer and the Maritime Adminis- 8 trator, operates as a vessel of the United States 9 for a period of not less than 10 years, and 10 "(G) the construction of which begins be- ll fore January 1, 2032. 12 "(2) EXCLUSION RELATED TO FOREIGN ENTI- 13 TIES OF CONCERN.--The term `qualified vessel' shall 14 not include a vessel which- 15 "(A) is, or was previously, owned or oper- 16 ated by a foreign entity of concern, 17 "(B) was constructed, repowered, or recon- 18 structed in a shipyard which is owned or oper- 19 ated by a foreign entity of concern, or 20 "(C) was registered as a vessel of a foreign 21 country of concern at any time prior to being 22 placed in service by the taxpayer. 23 "(e) DEFINITIONS.- 24 "(1) VESSELS.--For purposes of subsection 25 (d)(1)(E), any term used in such paragraph which OST-2025-1200 Page 00692 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012373 BOM24567 S6J S.L.C. 322 1 is also used in chapter 536 of title 46, United States 2 Code, shall have the same meaning as when used in 3 such chapter. 4 "(2) FOREIGN ENTITY OF CONCERN; FOREIGN 5 COUNTRY OF CONCERN.--For purposes of this sec- 6 tion, the terms `foreign entity of concern' and `for- 7 eign country of concern' have the same meaning 8 given such terms under section 4 of the SHIPS for 9 America Act of 2024. 10 "(f) CERTAIN PROGRESS EXPENDITURE RULES 11 MADE APPLICABLE.--Rules similar to the rules of sub- 12 sections (c)(4) and (d) of section 46 (as in effect on the 13 day before the date of the enactment of the Revenue Rec- 14 onciliation Act of 1990) shall apply for purposes of sub- 15 section (a). 16 "(g) REGULATIONS.--The Secretary, in consultation 17 with the Maritime Administrator, shall issue such regula- 18 tions or other guidance as may be necessary or appro- 19 priate to carry out the purposes of this section, including 20 any regulations or guidance which may be necessary or 21 appropriate to recapture the benefit of any credit deter- 22 mined under this section with respect to any qualified yes- 23 sel, or any increase in the applicable percentage under 24 subsection (b) with respect to any qualified vessel, in the 25 case of any taxpayer which fails to comply with the terms OST-2025-1200 Page 00693 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012374 BOM24567 S6J S.L.C. 323 1 of the agreement described in subsection (d)(1)(F) with 2 respect to such qualified vessel.". 3 (b) CONFORMING AMENDMENTS.- 4 (1) Section 46 of the Internal Revenue Code of 5 1986, as amended by section 13702(b)(1) of Public 6 Law 117-169, is amended- 7 (A) in paragraph (6), by striking "and" at 8 the end, 9 (B) in paragraph (7), by striking the pe- 10 riod at the end and inserting ", and", and 11 (C) by adding at the end the following: 12 "(8) the United States Vessel Investment cred- 13 it.". 14 (2) Section 49(a)(1)(C) of such Code, as 15 amended by section 13702(b)(2) of Public Law 117- 16 169, is amended- 17 (A) in clause (vii), by striking "and" at the 18 end, 19 (B) in clause (viii), by striking the period 20 at the end and inserting ", and", and 21 (C) by adding at the end the following: 22 "(ix) with respect to any qualified yes- 23 sel (as defined in section 48F(d)), the por- 24 tion of the basis of such vessel attributable 25 to amounts paid or incurred by the tax- OST-2025-1200 Page 00694 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012375 BOM24567 S6J S.L.C. 324 1 payer in connection with the construction, 2 repowering, or reconstruction of such yes- 3 sel.". 4 (3) The table of sections for subpart E of part 5 IV of subchapter A of chapter 1 of such Code is 6 amended by inserting after the item relating to sec- 7 tion 48E the following new item: "Sec. 48F. United States Vessel Investment credit.". 8 (c) RECAPTURE FOR FAILURE TO OPERATE AS A 9 VESSEL OF THE UNITED STATES.--Section 50(a) of the 10 Internal Revenue Code of 1986 is amended- 11 (1) in paragraph (4), by striking "or any appli- 12 cable transaction to which paragraph (3)(A) applies" 13 and inserting "any applicable transaction to which 14 paragraph (3)(A) applies, or any violation to which 15 paragraph (6)(A) applies", 16 (2) by redesignating paragraph (6) as para- 17 graph (7), 18 (3) by inserting after paragraph (5) the fol- 19 lowing new paragraph: 20 "(6) FAILURE TO OPERATE QUALIFIED VESSEL 21 AS A VESSEL OF THE UNITED STATES.- 22 "(A) IN GENERAL.-If an applicable tax- 23 payer violates any of the requirements of the 24 agreement described in section 48F(d)(1)(F) 25 during the duration of such agreement with re- OST-2025-1200 Page 00695 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012376 BOM24567 S6J S.L.C. 325 1 spect to any investment credit property which is 2 eligible for the United States Vessel Investment 3 credit under section 48F(a), then the tax under 4 this chapter for the taxable year in which such 5 violation occurs shall be increased by 100 per- 6 cent of the aggregate decrease in the credits al- 7 lowed under section 38 for all prior taxable 8 years which would have resulted solely from re- 9 ducing to zero any credit determined under sec- 10 tion 46 which is attributable to the United 11 States Vessel Investment credit under section 12 48F(a) with respect to such property. 13 "(B) EXCEPTION.--Subparagraph (A) 14 shall not apply if the applicable taxpayer dem- 15 onstrates to the satisfaction of the Secretary 16 and the Maritime Administrator that the tax- 17 payer is in compliance with the agreement de- 18 scribed in section 48F(d)(1)(F) within 30 days 19 of a determination and notice by the Secretary. 20 "(C) REGULATIONS AND GUIDANCE.--The 21 Secretary shall issue such regulations or other 22 guidance as the Secretary determines necessary 23 or appropriate to carry out the purposes of this 24 paragraph, including regulations or other guid- 25 ance which provide for requirements for record- OST-2025-1200 Page 00696 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012377 BOM24567 S6J S.L.C. 326 1 keeping or information reporting for purposes 2 of administering the requirements of this para- 3 graph.", and 4 (4) in paragraph (7) (as redesignated by para- 5 graph (2))- 6 (A) in subparagraph (C), by striking "or 7 (3)" and inserting "(3), or (4)", and 8 (B) by striking subparagraph (E) and in- 9 serting the following: 10 "(E) APPLICABLE TAXPAYER.--For pur- 1 1 poses of this subsection, the term `applicable 12 taxpayer' means any taxpayer who has been al- 13 lowed- 14 "(i) for purposes of paragraph (3), a 15 credit under section 48D(a) for any prior 16 taxable year, or 17 "(ii) for purposes of paragraph (6), a 18 credit under section 48F(a) for any prior 19 taxable year.". 20 (d) ELECTIVE PAYMENT AND TRANSFER OF CRED- 21 IT.- 22 (1) ELECTIVE PAYMENT.--Section 6417 of the 23 Internal Revenue Code of 1986 is amended- 24 (A) in subsection (b), by adding at the end 25 the following: OST-2025-1200 Page 00697 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012378 BOM24567 S6J S.L.C. 327 1 "(13) The United States Vessel Investment 2 credit under section 48F.", and 3 (B) in subsection (d)(1)- 4 (i) in subparagraph (E), by striking 5 "(C), or (D)" each place it appears and in- 6 serting "(C), (D), or (E)", 7 (ii) by redesignating subparagraph 8 (E) (as amended by clause (i)) as subpara- 9 graph (F), and 10 (iii) by inserting after subparagraph 11 (D) the following: 12 "(E) ELECTION WITH RESPECT TO 13 UNITED STATES VESSEL INVESTMENT CRED- 14 IT.-If a taxpayer other than an entity de- 15 scribed in subparagraph (A) makes an election 16 under this subparagraph with respect to any 17 taxable year in which such taxpayer has made 18 a qualified investment with respect to any quali- 19 Pied vessel (as defined in section 48F), such 20 taxpayer shall be treated as an applicable entity 21 for purposes of this section for such taxable 22 year, but only with respect to the credit de- 23 scribed in subsection (b)(13).". OST-2025-1200 Page 00698 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012379 BOM24567 S6J S.L.C. 328 1 (2) TRANSFER.--Section 6418(f)(1)(A) of the 2 Internal Revenue Code of 1986 is amended by add- 3 ing at the end the following: 4 "(xii) The United States Vessel In- 5 vestment credit under section 48F.". 6 (e) EXCEPTION RELATING TO ALTERNATIVE TAX ON 7 QUALIFYING SHIPPING ACTIVITIES.--SeetiOn. 1357(c) of 8 the Internal Revenue Code of 1986 is amended- 9 (1) in paragraph (1), by striking "paragraph 10 (2)" and inserting "paragraph (2) or (4)", and 11 (2) by adding at the end the following: 12 "(4) EXCEPTION FOR UNITED STATES VESSEL 13 INVESTMENT CREDIT.--Paragraph (1) shall not 14 apply with respect to any credit allowed to the tax- 15 payer under section 48F.". 16 (f) EFFECTIVE DATE.--The amendments made by 17 this section shall apply to property placed in service after 18 December 31, 2024. 19 SEC. 703. CERTAIN PAYMENTS FOR MARITIME SECURITY 20 EXCLUDED FROM GROSS INCOME. 21 (a) IN GENERAL.--Part III of subchapter B of chap- 22 ter 1 of the Internal Revenue Code of 1986 is amended 23 by inserting after section 139I the following new sub- 24 section: OST-2025-1200 Page 00699 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012380 BOM24567 S6J S.L.C. "SEC. 139J. MARITIME SECURITY PAYMENTS. 2 "(a) IN GENERAL.--Gross income shall not include 3 any payment made pursuant to- 4 "(1) section 53106 of title 46, United States 5 Code, 6 "(2) section 53801 of such title, 7 "(3) section 53206 of such title, 8 "(4) section 53406 of such title, 9 "(5) section 53604 of such title, 10 "(6) section 54101 of such title, or 11 "(7) section 54301 of such title. 12 "(b) DENIAL OF DOUBLE BENEFIT.--No deduction 13 or credit shall be allowed for, or by reason of, any expendi- 14 tune to the extent of the amount excluded under sub- 15 section (a) for any payment which was provided with re- 16 spect to such expenditure. The adjusted basis of any prop- 17 erty shall be reduced by the amount excluded under sub- 18 section (a) which was provided with respect to such prop- 19 erty.". 20 (b) CLERICAL AMENDMENT.--The table of sections 21 for part III of subchapter B of chapter 1 of such Code 22 is amended by inserting after the item relating to section 23 1391 the following new item: "Sec. 139J. Maritime security payments.". OST-2025-1200 Page 00700 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012381 B0M24567 S6J S.L.C. 330 1 (c) EFFECTIVE DATE.--The amendments made by 2 this section shall apply to taxable years beginning after 3 the date of the enactment of this Act. 4 SEC. 704. ELIMINATION OF 30-DAY LIMITATION ON DOMES- 5 TIC OPERATIONS. 6 (a) IN GENERAL.--Section 1355 of the Internal Rev- 7 enue Code of 1986 is amended-- 8 (1) in subsection (f), by striking paragraph (4), 9 and 10 (2) in subsection (g)(2), by striking subpara- 11 graph (D). 12 (b) EFFECTIVE DATE.--The amendments made by 13 this section shall apply to taxable years beginning after 14 the date of enactment of this Act. 15 SEC. 705. QUALIFYING SHIPPING ACTIVITIES. 16 Section 1356(b) of the Internal Revenue Code of 17 1986 (relating to qualifying shipping activities) is amend- 18 ed by striking "activities in operating" and inserting "the 19 carriage of goods (as defined in section 1 of the Carriage 20 of Goods by Sea Act (46 U.S.C. 30701 note)) by". 21 SEC. 706. QUALIFYING VESSEL. 22 Section 1355(a) of the Internal Revenue Code of 23 1986 is amended- 24 (1) by striking paragraph (4) and inserting the 25 following: OST-2025-1200 Page 00701 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012382 BOM24567 S6J S.L.C. 331 1 "(4) QUALIFYING VESSEL.--The term `quali- 2 Eying vessel' means a vessel which is- 3 "(A) self-propelled (or a combination self- 4 propelled and non-self-propelled), 5 "(B) a United States flag vessel or a 6 United States-owned foreign flag vessel, 7 "(C) not less than 6,000 deadweight tons, 8 and 9 "(D) used exclusively in the United States 10 foreign trade during the period that the election 11 under this subchapter is in effect.", and 12 (2) by adding at the end the following: 13 "(8) UNITED STATES-OWNED FOREIGN FLAG 14 VESSEL.--The term `United States-owned foreign 15 flag vessel' means any vessel which- 16 "(A) is documented under the laws of a 17 country (other than the United States) or a for- 18 eign registry which is not a foreign country of 19 concern (as defined by section 4 of the SHIPS 20 for America Act of 2024), 21 "(B) is owned by a person which- 22 "(i)(I) is a citizen of the United 23 States (as determined under section 50501 24 of title 46, United States Code), or OST-2025-1200 Page 00702 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012383 B0M24567 S6J S.L.C. 332 1 "(II) is controlled (within the meaning 2 of section 954(d)(3)) by a citizen of the 3 United States (as so determined), and 4 "(ii) owns a fleet of United States 5 flag vessels, and 6 "(C) has in effect a Voluntary Intermodal 7 Sealift Agreement or Voluntary Tanker Agree- 8 meat with the Maritime Administrator.". 9 SEC. 707. CREDIT FOR CONSTRUCTION OF SHIPYARD FA- 10 CILITIES. 11 (a) IN GENERAL.--Subpart E of part IV of sub- 12 chapter A of chapter 1 of the Internal Revenue Code of 13 1986, as amended by section 702(a), is amended by insert- 14 ing after section 48F the following new section: 15 "SEC. 48G. CREDIT FOR CONSTRUCTION OF SHIPYARD FA- 16 CILITIES. 17 "(a) IN GENERAL.--For purposes of section 46, the 18 shipyard investment tax credit for any taxable year is an 19 amount equal to 25 percent of the qualified investment 20 for such taxable year with respect to any qualified ship- 21 yard facility of a taxpayer described in section 48D(c)(1). 22 "(b) QUALIFIED INVESTMENT.- 23 "(1) IN GENERAL.--For purposes of subsection 24 (a), the qualified investment with respect to any 25 qualified shipyard facility for any taxable year is the OST-2025-1200 Page 00703 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012384 BOM24567 S6J S.L.C. 333 1 basis of any qualified property placed in service by 2 the taxpayer during such taxable year which is part 3 of a qualified shipyard facility. 4 "(2) QUALIFIED PROPERTY.--The term `quali- 5 fled property' shall have the same meaning given 6 such term in section 48D(b)(2), except that subpara- 7 graph (A)(iv) of such section shall be applied by sub- 8 stituting `qualified shipyard facility' for `advanced 9 manufacturing facility'. 10 "(3) QUALIFIED SHIPYARD FACILITY.--For 11 purposes of this section, the term `qualified shipyard 12 facility' means a facility- 13 "(A) which is located within the United 14 States (including any territory or possession of 15 the United States), and 16 "(B) for which the primary purpose is- 17 "(i) constructing or repairing commer- 18 cial or military oceangoing vessels, 19 "(ii) manufacturing components which 20 are critical (as determined by the Sec- 21 retary, in consultation with the Secretary 22 of the Navy and the Maritime Adminis- 23 trator) to the operation of commercial or 24 military oceangoing vessels, or OST-2025-1200 Page 00704 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012385 BOM24567 S6J S.L.C. 334 1 "(iii) manufacturing equipment which 2 is used to produce or repair commercial or 3 military oceangoing vessels. 4 "(4) CERTAIN PROGRESS EXPENDITURE RULES 5 MADE APPLICABLE.--Rules similar to the rules of 6 subsections (c)(4) and (d) of section 46 (as in effect 7 on the day before the date of the enactment of the 8 Revenue Reconciliation Act of 1990) shall apply for 9 purposes of subsection (a). 10 "(c) DENIAL OF DOUBLE BENEFIT.--This section 11 shall not apply to any property placed in service by the 12 taxpayer during the taxable year if a credit was allowed 13 under section 48F to such taxpayer during such taxable 14 year. 15 "(d) REGULATIONS.--The Secretary shall issue such 16 regulations or other guidance as may be necessary or ap- 17 propriate to carry out the purposes of this section. 18 "(e) TERMINATION OF CREDIT.--The credit allowed 19 under this section shall not apply to property placed in 20 service after December 31, 2031.". 21 (b) CONFORMING AMENDMENTS.- 22 (1) Section 46 of the Internal Revenue Code of 23 1986, as amended by section 702(b)(1), is amend- 24 ed-- OST-2025-1200 Page 00705 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012386 B0M24567 S6J S.L.C. 335 1 (A) in paragraph (7), by striking "and" at 2 the end, 3 (B) in paragraph (8), by striking the pe- 4 riod at the end and inserting ", and", and 5 (C) by adding at the end the following: 6 "(9) the shipyard investment tax credit.". 7 (2) Section 49(a)(1)(C) of such Code, as 8 amended by section 702(b)(2), is amended- 9 (A) in clause (viii), by striking "and" at 10 the end, 11 (B) in clause (ix), by striking the period at 12 the end and inserting ", and", and 13 (C) by adding at the end the following: 14 "(x) the basis of any qualified prop- 15 erty (as defined in subsection (b)(2) of sec- 16 tion 48G) which is part of a qualified ship- 17 yard facility (as defined in subsection 18 (b)(3) of such section).". 19 (3) Section 50(a)(2)(E) of such Code, as 20 amended by section 13702(b) of Public Law 117- 21 169, is amended by striking "or 48E(e)" and insert- 22 ing "48E(e), or 48G(b)(4)". 23 (4) The table of sections for subpart E of part 24 IV of subchapter A of chapter 1 of such Code, as 25 amended by section 702(b)(3), is amended by insert- OST-2025-1200 Page 00706 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012387 BOM24567 S6J S.L.C. 336 1 ing after the item relating to section 48F the fol- 2 lowing new item: "Sec. 48G. Shipyard investment tax credit.". 3 (c) ELECTIVE PAYMENT AND TRANSFER OF CRED- 4 IT.- 5 (1) ELECTIVE PAYMENT.--Section 6417 of the 6 Internal Revenue Code of 1986, as amended by sec- 7 tion 702, is amended-- 8 (A) in subsection (b), by adding at the end 9 the following: 10 "(14) The shipyard investment tax credit under 11 section 48G.", and 12 (B) in subsection (d)(1)- 13 (i) in subparagraph (F), by striking 14 "(D), or (E)" each place it appears and in- 15 serting "(D), (E), or (F)", 16 (ii) by redesignating subparagraph 17 (F) (as amended by clause (i)) as subpara- 18 graph (G), and 19 (iii) by inserting after subparagraph 20 (E) the following: 21 "(F) ELECTION WITH RESPECT TO THE 22 SHIPYARD INVESTMENT TAX CREDIT.-If a tax- 23 payer other than an entity described in sub- 24 paragraph (A) makes an election under this 25 subparagraph with respect to any taxable year OST-2025-1200 Page 00707 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012388 BOM24567 S6J S.L.C. 337 1 in which such taxpayer has placed in service 2 any qualified property which is part of a quali- 3 fled shipyard facility (as defined in section 4 48G), such taxpayer shall be treated as an ap- 5 plicable entity for purposes of this section for 6 such taxable year, but, only with respect to the 7 credit described in subsection (b)(14).". 8 (2) TRANSFER.--Section 6418(f)(1)(A) of the 9 Internal Revenue Code of 1986, as amended by sec- 10 tion 702, is amended by adding at the end the fol- 11 lowing: 12 "(xiii) The shipyard investment tax 13 credit under section 48G.". 14 (d) EXCEPTION RELATING TO ALTERNATIVE TAX ON 15 QUALIFYING SHIPPING ACTIVITIES.--Paragraph (4) of 16 section 1357(c) of the Internal Revenue Code of 1986, as 17 added by section 702(e), is amended to read as follows: 18 "(4) EXCEPTION FOR UNITED STATES VESSEL 19 INVESTMENT CREDIT AND SHIPYARD INVESTMENT 20 TAX CREDIT.--Paragraph (1) shall not apply with 21 respect to any credit allowed to the taxpayer under 22 section 48F or 48G.". 23 (e) EFFECTIVE DATE.--The amendments made by 24 this section shall apply to property placed in service after 25 December 31, 2024. OST-2025-1200 Page 00708 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012389 B0M24567 S6J S.L.C. 338 SEC. 708. TAX INCENTIVES RELATING TO MERCHANT MA- 2 RINE CAPITAL CONSTRUCTION FUNDS. 3 (a) IN GENERAL.--Section 7518 of the Internal Rev- 4 enue Code of 1986 is amended- 5 (1) in subsection (a)- 6 (A) by striking paragraph (1) and insert- 7 ing the following: 8 "(1) IN GENERAL.--The amount deposited in a 9 fund established under chapter 535 of title 46 of the 10 United States Code (hereinafter in this section re- 11 ferred to as a `capital construction fund') for a tax- 12 able year may not exceed the amount specified in the 13 agreement under section 53503(a) of such title, 14 which shall be an amount that is related to a com- 15 mitment to invest the revenue from the capital con- 16 struction fund into funding the construction of new 17 vessels or funding cargo handling equipment.", 18 (B) in paragraph (2), by striking "para- 19 graph (1)(B)" each place it appears and insert- 20 ing "paragraph (1)", and 21 (C) by adding at the end the following new 22 paragraph: 23 "(4) REVENUE.--For the purposes of para- 24 graph (1), the revenue from the capital construction 25 fund may include-- OST-2025-1200 Page 00709 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012390 B0M24567 S6J S.L.C. 339 1 "(A) income attributable to the operation 2 of any agreement vessel in foreign commerce or 3 domestic trade or fisheries or the operation of 4 a marine terminal in the United States, 5 "(B) the net proceeds from the disposition 6 of an agreement vessel or cargo handling equip- 7 meat or insurance or indemnity attributable to 8 the vessel or cargo handing equipment, 9 "(C) the receipts from the investment or 10 reinvestment of amounts held in the fund, and 11 "(D) the amount allowable as a deduction 12 under section 167 for the taxable year with re- 13 spect to the agreement vessels or cargo han- 14 dling equipment.", 15 (2) in subsection (b)(2), by striking "Amounts 16 in any capital construction fund" and all that fol- 17 lows through "(not in excess of 60 percent)" and in- 18 serting "An agreed percentage", 19 (3) in subsection (e)- 20 (A) by striking paragraph (1) and insert- 21 ing the following: 22 "(1) IN GENERAL.--A qualified withdrawal 23 from the fund is one made in accordance with the 24 terms of the agreement but only if it is for-- OST-2025-1200 Page 00710 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012391 BOM24567 S6J S.L.C. 340 1 "(A) the acquisition, construction, 2 repowering, or reconstruction of- 3 "(i) a qualified vessel or a barge or 4 container that is part of the complement of 5 a qualified vessel, or 6 "(ii) cargo handling equipment, or 7 "(B) the payment of the principal on in- 8 debtedness incurred in the acquisition, con- 9 struction, repowering, or reconstruction of- 10 "(i) a qualified vessel or a barge or 11 container that is part of the complement of 12 a qualified vessel, or 13 "(ii) cargo handling equipment. 14 Except to the extent provided in regulations 15 prescribed by the Secretary, subparagraph (A), 16 and so much of subparagraph (B) as relates 17 only to barges and containers, shall apply only 18 with respect to barges and containers con- 19 structed in the United States.", 20 (B) by redesignating paragraph (2) as 21 paragraph (4), and 22 (C) by inserting after paragraph (1) the 23 following: 24 "(2) FULLY AUTOMATED CARGO HANDLING 25 EQUIPMENT.--No withdrawals may be made from a OST-2025-1200 Page 00711 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012392 BOM24567 S6J S.L.C. 341 1 capital construction fund to purchase fully auto- 2 mated cargo handling equipment that is remotely 3 operated or remotely monitored with or without the 4 exercise of human intervention or control, if the Sec- 5 retary determines such equipment would result in a 6 net loss of jobs within a marine terminal. 7 "(3) PROHIBITION ON PEOPLE'S REPUBLIC OF 8 CHINA CRANES.--No withdrawals may be made from 9 a capital construction fund to purchase cranes man- 10 ufactured in the People's Republic of China.", 11 (4) in subsection (f)- 12 (A) in paragraph (2), by inserting "cargo 13 handling equipment," after "barge," both 14 places the term appears, 15 (B) in paragraph (3), by inserting "cargo 16 handling equipment," after "barge," both 17 places the term appears, and 18 (C) in paragraph (4), by inserting "cargo 19 handling equipment," after "barges,", 20 (5) in subsection (g)- 21 (A) in the flush matter at the end of para- 22 graph (2), by inserting "cargo handling equip- 23 ment," after "advanced", and 24 (B) in paragraph (5)(A)-- OST-2025-1200 Page 00712 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012393 BOM24567 S6J S.L.C. 342 1 (i) in the heading, by striking "25 2 YEARS" and inserting "15 YEARS", 3 (ii) by striking "26th, 27th, 28th, 4 29th, or 30th taxable year" and inserting 5 "following specified taxable year", and 6 (iii) by striking the table contained 7 therein and inserting the following: "If the amount remains in the The applicable percentage is- fund at the close of the- 16th taxable year 17th taxable year 18th taxable year 19th taxable year 20th taxable year 20 percent 40 percent 60 percent 80 percent 100..p.ercent", and 8 (6) in subsection (i), by striking "as in effect on 9 the date of the enactment of this section". 10 (b) EFFECTIVE DATE.--The amendments made by 11 this section shall apply to taxable years beginning after 12 December 31, 2024. 13 SEC. 709. EXEMPTION OF STUDENT INCENTIVE PAYMENT 14 AGREEMENTS FROM GROSS INCOME. 15 (a) IN GENERAL.--Part III of subchapter B of chap- 16 ter 1 of the Internal Revenue Code of 1986, as amended 17 by section 703, is further amended by inserting after sec- 18 tion 139J the following new section: 19 "SEC. 139K. STUDENT INCENTIVE PAYMENT AGREEMENTS. 20 "In the case of an individual who has entered into 21 an agreement described in section 51509 of title 46, 22 United States Code, gross income does not include any OST-2025-1200 Page 00713 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012394 BOM24567 S6J S.L.C. 343 1 student incentive payments made to such individual pursu- 2 ant to such agreement.". 3 (b) CLERICAL AMENDMENT.--The table of sections 4 for part III of subchapter B of chapter 1 of the Internal 5 Revenue Code of 1986, as amended by section 703, is fur- 6 ther amended by inserting after the item relating to sec- 7 tion 139J the following new item: "Sec. 139K. Student incentive payment agreements.". 8 (C) EFFECTIVE DATE.--The amendments made by 9 this section shall apply with respect to payments made 10 after December 31, 2024. 11 SEC. 710. MARITIME FUEL TAX PARITY. 12 Section 4041(g) of the Internal Revenue Code of 13 1986 is amended by adding at the end the following new 14 sentence: "For purposes of subsection (a)(2), the exemp- 15 tion under paragraph (1) shall also apply to fuel sold for 16 use or used by a vessel which is both described in section 17 4042(c)(1) and actually engaged in trade between the At- 18 lantic (including the Gulf of Mexico) or Pacific ports of 19 the United States (including any territory or possession 20 of the United States).". OST-2025-1200 Page 00714 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012395 ARIZONA SENATOR MARK KELLY SHIPS for America Act Senator Mark Kelly / Senator Todd Young Congressman John Garamendi / Congressman Trent Kelly 12/19/2024 Summary: The U.S. Maritime industry needs support. Roughly 80 oceangoing ships fly the American flag in international commerce. The U.S. shipbuilding industrial base lacks the capacity to produce oceangoing vessels at scale. And the need for qualified mariners is growing. The U.S. Merchant Marine will be relied upon to transport critical goods and military cargo during a time of war, and a strong U.S. Merchant Marine will strengthen American supply chains during peacetime. This legislative proposal represents a comprehensive approach to revitalizing the U.S. Merchant Marine by establishing national oversight and consistent funding for U.S. maritime policy, making U.S.-flagged vessels commercially competitive in international commerce by cutting red tape, rebuilding the U.S. shipyard industrial base, and expanding and strengthening mariner and shipyard worker recruitment, training, and retention. Section-by-Section: Front matter: Section 1: Short Title & Table of Contents Section 2: Findings Section 3: Sense of Congress Section 4: Definitions Title 1: Oversight and Accountability Section 101: Maritime Security Advisor; Maritime Security Board This section requires the President to appoint a Special Advisor, known as the Maritime Security Advisor, to coordinate national maritime affairs and policy, including maintaining and updating the National Maritime Strategy. The bill establishes the Office of the Maritime Security Advisor in the Executive Office of the President. The Maritime Security Advisor is authorized to appoint such officers and employees as the Maritime Security Advisor may deem necessary. This section also establishes a Maritime Security Board, which is based within the White House, led by the Maritime Security Advisor, and consists of representatives from all federal agencies with responsibilities for the maritime industry. The Board, which has voting and nonvoting members, shall be responsible for the coordination of all efforts related to the National Maritime Strategy and marine transportation system of the United 1 OST-2025-1200 Page 00715 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012396 ARIZONA SENATOR MARK KELLY States, including establishing target numbers for the size of the maritime security fleets, conducting independent oversight of cargo preference requirements, coordinating national efforts to develop a robust maritime workforce, establishing national priorities for research and development of next-generation technologies in the shipbuilding and maritime industries, coordinating interagency efforts to privilege U.S. vessels operating in international commerce while maintaining U.S. international obligations, protecting vessels of the United States from physical or cyber threats, and conducting oversight of the Maritime Security Trust Fund. This section eliminates the U.S. Committee on Marine Transportation System. Section 102. Maritime Transportation System National Advisory Committee This section requires the Maritime Transportation System National Advisory Committee, an existing advisory group made up of industry experts, to report to the Maritime Security Board (as opposed to the Secretary of Transportation) and makes technical updates to how members are appointed to serve on the committee. Section 103. Direct Hire Authority This section provides the Maritime Administration and offices under the U.S. Coast Guard's Assistant Commandant for Prevention Policy with Direct Hire Authority. Section 104. Implementation Plan This section requires the Maritime Administration and U.S. Coast Guard to develop implementation plans for carrying out the programs and policies of this Act. Agencies must report on progress implementing this Act every two years. This section also requires the Government Accountability Office (GAO) to conduct independent reviews of the implementation of this Act every two years. Section 105. Federal Maritime Commission Report on Vessels of the United States This section requires the Federal Maritime Commission to submit an annual report to the Maritime Security Board and appropriate Congressional committees evaluating the competitiveness of U.S. vessels in foreign commerce, which the Board will use to inform the National Maritime Strategy. Title 2: Maritime Security Trust Fund Section 201: Apportionment of the Maritime Security Trust Fund Other modes of transportation are supported by dedicated trust funds, financed by user fees. These trust funds, like the Highway Trust Fund and Aviation Trust Fund, allow for sustained federal support for national transportation priorities, independent of the annual 2 OST-2025-1200 Page 00716 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012397 ARIZONA SENATOR MARK KELLY appropriations process. This section (alongside Section 701) establishes a Maritime Security Trust Fund to create a dedicated source of funding for critical maritime security programs. This section provides the Maritime Administration, the U.S. Coast Guard, and the Federal Maritime Commission with direct funding from the Maritime Security Trust Fund for administrative expenses necessary to carry out this legislation. This section also clarifies that obligations made from the Maritime Security Trust Fund may support the following programs, which protects these programs from relying on annual appropriations: a. The U.S. Merchant Marine Academy b. State Maritime Academies and the National Security Multi-Mission Vessel Program c. Strategic Commercial Fleet (as established in this legislation) d. Title XI Loan Guarantees e. Shipbuilding Financial Incentives Program (as established in this legislation) f. Small Shipyard Grant Program g. Port Infrastructure Development Program h. Transportation Cost Reimbursement program i. The United States Center for Maritime Innovation j. The Merchant Marine Career Retention Program k. Maritime and shipbuilding recruiting campaigns I. Centers of Excellence for Domestic Maritime Workforce Training and Education m. Merchant Mariner Credentialing and Modernization n. Other Maritime Administration workforce development initiatives Note: Specific funding allocated out of the trust fund is specified elsewhere in the legislation. Section 202: Regular Tonnage Taxes; Presidential Suspension of Tonnage Taxes and Light Money This section prevents the Presidential suspension of tonnage taxes and light money for vessels that are owned or operated by a foreign entity of concern or registered to a foreign country of concern (defined as Russia, China, Iran, and North Korea). In effect, this will impose a new duty on goods imported on Chinese-owned or Chinese-flagged vessels. Title 3: Sealift Capability Section 301: Sealift Capability This section establishes that it is the policy of the United States to have a United Statesflagged strategic fleet capable of meeting American national and economic security objectives. The Secretary of Transportation and Secretary of Defense are required to acquire and maintain sufficient civil, commercial, and military sealift capability. In carrying out these provisions, the United States may enter into agreements with treaty 3 OST-2025-1200 Page 00717 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012398 ARIZONA SENATOR MARK KELLY allies to meet sealift requirements. The Secretary of Defense and Secretary of Transportation are required to provide reports, briefings, and assessments to Congress related to these objectives. Section 302: National Freight Strategic Plan This section requires the National Freight Strategic Plan to include maritime trade and strategic sealift considerations. Section 303: Foreign Shipping Practices; Controlled Carriers This section amends the Foreign Shipping Practices Act and the Controlled Carrier Act to enhance the Federal Maritime Commission's authority to prevent foreign countries and foreign flag operators from carrying out unfair trade practices for both cargo and cruise vessels. Title 4: Vessels of the United States in International Commerce Subtitle A -- Strategic Sealift Programs Section 401: Strategic Commercial Fleet This section establishes a new program -- the Strategic Commercial Fleet Program -- to support the development of U.S.-built, U.S.-flagged vessels in international commerce. Under this program, the Maritime Administration shall solicit bids for commercially viable, militarily useful, privately owned vessels to meet national security requirements and maintain a U.S. presence in international commercial shipping. The program will have a goal for establishing a fleet of 250 U.S.-flagged vessels in international commerce. To participate in the program, an eligible carrier (or a team representing a carrier and a shipyard) shall submit a proposal to bring a vessel into the program, including a proposed support payment which shall cover the capital costs and operational costs associated with bringing a new, U.S.-built, U.S.-flagged, U.S.-crewed vessel into the fleet. The Maritime Administration shall select proposals which are the best value to the taxpayer. Vessels shall be included within the fleet for 7 years, and this operating agreement can be renewed twice (for a total of 21 years--the lifetime of a vessel). If an agreement is not renewed, the carrier shall receive a payment based on the remaining useful life of the vessel. In order to increase the fleet rapidly, carriers may also submit a bid to bring a foreignbuilt vessel into the fleet and reflag it. This vessel may serve as an "interim vessel," meaning it remains in the fleet only until it can be replaced by a U.S.-built vessel, or it may serve in the fleet under a full-term operating agreement. However, foreign-built vessels other than "interim vessels" shall not be allowed to enter the fleet after fiscal year 2029. 4 OST-2025-1200 Page 00718 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012399 ARIZONA SENATOR MARK KELLY Recognizing that U.S. Transportation Command (TRANSCOM) has identified an imminent need for additional tanker vessels, the program includes specific language specifying that MARAD should prioritize adding tanker vessels through the Strategic Commercial Fleet program if TRANSCOM determines more tankers are needed than are available through the Tanker Security Fleet. Section 402: Maritime Security Program This section increases the annual stipend for the Maritime Security Fleet to $7.23m by 2034. This section requires USTRANSCOM to perform an annual test (tabletop exercise) of the Maritime Security Fleet. Section 403: Cable Security Fleet This section increases the annual stipend for the Cable Security Fleet to $12m by 2034. This section shall require the Secretary of Defense to conduct an assessment of the ability of the USNS Zeus and the Cable Security Fleet to address a situation where undersea cables are damaged by adversaries. Section 404: Tanker Security Fleet This section increases the annual stipend for the Tanker Security Fleet to $9m. Section 405: Modification to Duties Relating to Equipment and Repair of Vessels Currently, any U.S.-flagged vessel must pay a duty of 50% for any repairs made on the vessel in a foreign shipyard of an allied country. This section increases the duty to 200% for any repairs made in shipyards in foreign countries of concern (i.e., China) and creates a short-term authority for the Maritime Administrator to waive the duty for vessels enrolled in the Maritime Security Fleet, Cable Security Fleet, Tanker Security Fleet, Strategic Commercial Fleet, or with a Voluntary Intermodal Sealift Agreement (VISA) or Voluntary Tanker Agreement (VTA), if a vessel first makes a good faith effort to carry out repairs in the United States. Subtitle B: Cargo Preference Section 411: United States Government Cargo This section raises the percentage of U.S. government cargo that must sail on U.S.flagged vessels from 50 percent to 100 percent. It also includes a sense of Congress affirming the Maritime Administrator is responsible for determining the non-availability of qualified vessels of the United States. Section 412: Cargo Preference Implementation Regulations This section requires that the Maritime Administrator issue regulations and agency guidance related to the new cargo preference requirements. This section also authorizes the Maritime Administrator to consult with the Food Aid Consultative Group established by the Food for Peace Act. 5 OST-2025-1200 Page 00719 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012400 ARIZONA SENATOR MARK KELLY Section 413: Cargo Preference Oversight and Audit This section updates oversight and audit requirements for cargo preference laws and requires Congressional notification if an agency is found to be out of compliance with cargo preference requirements. Section 414: Financing the Transportation of Agricultural Commodities This section requires that the U.S. Agency for International Development, the Secretary of Agriculture, and the Commodity Credit Corporation be reimbursed out of the Maritime Security Trust Fund for transportation costs on U.S.-flagged vessels that exceeded market rates. This section includes provisions to ensure a transparent and timely reimbursement process. Section 415: Importation from China on American ships This section establishes a commercial cargo preference, requiring that within 15 years, 10 percent of all cargo imported into the United States from the People's Republic of China be imported on U.S.-flagged vessels. Section 416: Priority for Vessels of the United States This section establishes that a U.S.-flagged vessel shall be given priority at any port of the United States ahead of a waiting vessel of a foreign country. Section 417: Moving Cargo on Vessels of the United States This section requires the President, in consultation with the Maritime Security Advisor, the Secretary of Transportation, the Secretary of Commerce, the Federal Maritime Commission, and the U.S. Trade Representative, to identify existing authorities to provide tax benefits, modified import duties, and other maritime privileges to companies that chose to move commercial cargo aboard vessels of the United States. The President shall also make recommendations for Congress for additional legal authorities needed to incentivize movement of commercial cargo aboard U.S.-flag vessels. Section 418: Transportation requirements for certain exports sponsored by the Secretary of Agriculture This section clarifies that current U.S.-flagged vessel requirements for USDA's international food aid apply to all agricultural products (not only commodity crops). Section 419: Clarifying amendments This section clarifies that the authority to waive Cargo Preference requirements rests with the Maritime Administrator. Section 420: Energizing American Shipbuilding 6 OST-2025-1200 Page 00720 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012401 ARIZONA SENATOR MARK KELLY This section is the Energizing American Shipbuilding Act (S. 3467 / H.R. 6724), which requires that vessels built in the U.S. transport 15 percent of total seaborne LNG exports by 2043 and 10 percent of total seaborne crude oil exports by 2035. Section 421: Ship America Office This section establishes a Ship America Office within the Maritime Administration, to assist in facilitating the movement of commercial goods and government cargo on U.S.flagged vessels, provide information to importers and carriers about cargo preference incentives, and aid in compliance efforts related to cargo preference requirements. Subtitle C: Regulatory Reform Section 431: Alternate Standards The Maritime Security Program has a provision which allows a U.S.-flag vessel to obtain a U.S. Coast Guard Certificate of Inspection (COI) by complying with the standards of an authorized classification society. This section requires that this Alternate Compliance Program be made available to all U.S.-flagged vessels. Section 432: Rulemaking Committee on Commercial Maritime Regulations and Standards This section requires the U.S. Coast Guard to establish a rulemaking committee on commercial maritime regulations and standards to evaluate opportunities to better align U.S. Coast Guard regulations with the International Maritime Organization's (IMO) regulations. The committee shall be made up of representatives of federal maritime agencies, classification societies, carriers, shipbuilders, mariners, maritime labor, and outside experts. The Commandant of the Coast Guard shall initiate a rulemaking process to update regulations based on the committee's recommendations. Section 433: Amendments to Shipowners' Limitation of Liability Act of 1851 Currently, all vessels in the United States have limited liability (no more than lx the value of the vessel and freight) for accidents caused, even if major infrastructure is damaged. This section establishes that the liability of a foreign vessel for any claim, debt, or liability shall be 10x the value of the vessel and pending freight, whereas the value of a U.S.-flag vessel shall be lx the value of the vessel and pending freight. This excludes liability for personal injury, wrongful death, or a claim for wages. Title 5: Shipbuilding Subtitle A: Shipbuilding Financial Incentives Section 501: Shipbuilding Financial Incentives This section establishes a shipbuilding financial incentive program which allows the Maritime Administration to aid in the construction of an eligible oceangoing vessel (but not a part of the Strategic Commercial Fleet) or to make qualified investments in U.S. 7 OST-2025-1200 Page 00721 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012402 ARIZONA SENATOR MARK KELLY shipyards and facilities which produce critical components or subcomponents for shipyards. This section provides $250m for each of the fiscal years 2025 through 2034 out of the Maritime Security Trust Fund. Section 502: Assistance for Small Shipyards This section provides $100m per year in funding for the Assistance for Small Shipyards program from the Maritime Security Trust Fund for fiscal years 2025 through 2034. The program's eligibility is also expanded to cover industrial base investments. Section 503: Federal Ship Financing (Title XI) Program This section transforms the Title XI program into a revolving loan fund, with proceeds generated by loans and loan guarantees reinvested into the program. To capitalize the initial loan fund, $100m is provided from the Maritime Security Trust Fund in fiscal year 2025. The program's eligible uses are expanded to include costs associated with reflagging a vessel or converting a vessel to a more useful military configuration. Section 504: Construction Reserve Fund A Construction Reserve Fund (CRF) allows U.S.-flag operators to defer the gain attributable to the sale or loss of a vessel if the funds will be used to expand or modernize the U.S. merchant fleet. This section allows deposited funds to be held longer, placed into investment vehicles other than a bank account, and used for additional purposes. Section 505: Capital Construction Fund This section allows funds deposited in a Capital Construction Fund (CCF) to be held longer, expands the profits eligible to be deposited, expands how funds can be used, and allows any company, even one which does not currently own U.S.-flagged vessels, to create a CCF. This section also expands the CCF program to allow marine terminal operators to create CCFs and use deposited funds to replace cargo handling equipment at marine terminals of the United States, unless such equipment is made by a Chinese-owned or controlled entity. Section 506: Anticipated Commercial Vessel Construction Survey This section requires the Maritime Administrator to conduct an annual survey of owners, agents, or operators of commercial maritime vessels and may distribute results to the maritime industrial base. Participation in the survey is voluntary, and proprietary information is protected from disclosure. Section 507: Streamlined Environmental Review This section streamlines environmental review requirements for shipyards, ship repair facilities, port terminals and other port facilities, and other facilities which support the 8 OST-2025-1200 Page 00722 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012403 ARIZONA SENATOR MARK KELLY Navy or Merchant Marine of the United States. Under this provision, a lead federal agency will coordinate all reviews, and all reviews must be completed within two years. Section 508: Eligibility for Loan Guarantees This section allows Department of Energy loan guarantee programs to support investments in U.S.-flag vessels, shipyards, marine terminals, and port facilities. Section 509: Reports This section requires the Maritime Administrator, USTRANSCOM, and the Secretary of the Navy to submit reports to Congress indicating how the shipbuilding financial incentives program will be used to rebuild the Ready Reserve Fleet and derisk the maritime sector. It also requires a report on a plan to restrict capital flow to the Chinese maritime industry. Section 510: Export Control Report This section requires the Secretary of State to conduct a study on methods to reduce export controls and ITAR restrictions on foreign-owned maritime companies who wish to invest in the U.S. shipbuilding industry. Subtitle B: Department of Defense Programs Section 511: Assessment of the Use of Commercial Best Practices for Navy Shipbuilding To help private shipbuilders serve both a military and commercial customers, this section would require the Navy and Coast Guard to assess and, where possible, integrate commercial best practices into the design, building, and repair of Navy and Coast Guard vessels. Section 512: Plan of Action for Use of Defense Production Act Authorities This section requires a plan of action to be developed to use Defense Production Act authorities to enhance shipyard infrastructure, the defense shipyard industrial base, and maritime port infrastructure in the United States. Section 513: Strategy on Development of Naval Re-Arm at Sea Capability This section requires the Secretary of the Navy to develop a strategy for delivering a rearm-at-sea capability to the surface fleet of the United States Navy. Section 514: Military Sealift Command This section provides additional authorities to the Secretary of the Navy to support recruitment and retention efforts for mariners employed by Military Sealift Command. It also requires the Navy and Military Sealift Command to report on recruitment and 9 OST-2025-1200 Page 00723 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012404 ARIZONA SENATOR MARK KELLY retention efforts, and the Navy to assess the merits of extending charter durations of for Military Sealift Command. Subtitle C: Shipbuilding Innovation and Infrastructure Section 521: United States Center for Maritime Innovation This section establishes a national maritime innovation incubator program within the Maritime Administration to advance and accelerate R&D for technologies and manufacturing processes which will support the maritime industrial base. The program expands the existing United States Center for Maritime Innovation Program by requiring the establishment of incubators to be located in different regions of the country, establish multi-stakeholder partnerships, and specialize in shipbuilding, alternative fuels, shoreside infrastructure, vessel design and naval architecture, and other areas identified as a priority by the Maritime Security Board. $50m is provided from the Maritime Security Trust Fund for each of fiscal years 2025 through 2034. Section 522: National Shipbuilding Research Program This section authorizes the activities of the National Shipbuilding Research Program (NRSP) and requires increased coordination between NSRP and the Maritime Administration. Section 523: Assessment on Marine Infrastructure Readiness This section requires the Maritime Administrator to conduct an assessment on the infrastructure needs of United States shipbuilding, shipping, port, and shipyard infrastructure, including an evaluation of threats posed by the logistics platform LOGINK, which is affiliated with the Chinese government. Title 6: Workforce Development Subtitle A: Workforce Incentives Section 601: Public Service Loan Forgiveness for Mariners This section would allow merchant mariners with a USCG Merchant Mariner Credential or employees of a shipyard of the United States to qualify for public service loan forgiveness, recognizing their critical role to U.S. economic and national security. To qualify, workers must be employed on a U.S. vessel or by a U.S. shipyard for 10 years (with at least 150 days at sea in a calendar year for mariners). Section 602: Eligibility for Educational Assistance This section allows merchant mariners who have served full-time for at least 10 years as a credentialed merchant mariner and have received the Merchant Marine Expeditionary Medal or other mariner medals for service in a designated combat zone (after the date of enactment) to receive educational assistance under the GI bill, if they are not eligible under other VA benefits. 10 OST-2025-1200 Page 00724 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012405 ARIZONA SENATOR MARK KELLY Section 603: Eligibility of Mariners to attend Naval Postgraduate School This section establishes that the Secretary of the Navy may permit officers and unlicensed mariners of the U.S. Merchant Marine to attend the Naval Postgraduate School. Section 604: Reimbursement of Qualifying Spouse Relicensing Costs and Business Costs This section allows spouses of members of the Strategic Sealift Officer Program or Coast Guard Reserve to be reimbursed for costs, up to a certain amount, associated with relicensing or re-establishing a business as a result of service in the reserve programs. Funds for this program will come from the Maritime Security Trust Fund. Section 605: Noncompetitive Eligibility for Federal Employment This section allows individuals who 1) have graduated from the USMMA and met all of their cadet commitment agreement requirements, or 2) are a credentialed U.S. Merchant Mariner with an officer or rating endorsement who has served at least 7 years at sea on a vessel of the United States, to be eligible for noncompetitive federal employment. This is similar to the hiring preference afforded to veterans or Peace Corps volunteers. Section 606: United States Merchant Marine Career Retention Program Recognizing that in times of war, a reserve of mariners will be needed for strategic sealift opportunities, this section establishes a U.S. Merchant Marine Career Retention Program with two tracks. Track 1: Reserve members may work a shore-side job, with USERRA protections, and receive short-term deployments on merchant vessels to maintain mariner credentials. Track 2: After completing their service obligations, graduates of Merchant Marine Academies may serve on foreign flagged vessels while keeping their USCG certifications and retaining a reserve status to surge US sealift capacity. Subtitle B: Workforce Pipeline Sec. 611: Maritime and Shipbuilding Recruiting Campaign This section requires the Maritime Administration to conduct targeted public recruiting campaigns, by entering into a contract with a national marketing firm, to promote the opportunities for and benefits of a career in the maritime industry. Funding is provided from the Maritime Security Trust Fund for each of fiscal years 2025 through 2034. Section 612: Centers of Excellence for Domestic Maritime Workforce Training and Education 11 OST-2025-1200 Page 00725 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012406 ARIZONA SENATOR MARK KELLY This section provides dedicated appropriations to the Centers of Excellence for Domestic Maritime Workforce Training and Education out of the Maritime Security Trust Fund. Section 613: Maritime Career and Technical Education Advisory Committee This section creates a federal advisory committee at the Maritime Administration to bring maritime industrial base employers and education providers together to identify joint opportunities to train needed workers for maritime careers. Section 614: Military Candidates to Mariner Careers Recruitment Exchange This section requires the Department of Defense to encourage military recruiters to recommend careers in the maritime industry to recruits who do not qualify for U.S. military service but wish to serve at-sea or work in a shipyard of the United States. It requires DoD to establish a mechanism to introduce these recruits to the Maritime Administration, who are then required to provide these recruits with appropriate maritime industry career resources and hand-offs. Section 615: Maritime Worker Data Collection This section requires the Maritime Administrator to publish a biennial report on the state of the U.S. Merchant Marine, to include the number of mariners actively sailing, and forecasts for needed mariners in the future and in a potential conflict. Section 616: Military to Maritime Transition This section requires DoD, Coast Guard, DoL, VA, and the Maritime Security Board to jointly submit a report detailing opportunities to reduce barriers for retiring military service members with military sea service credentials or skills transferable to the maritime industry to transition to jobs in the merchant marine, shipyards, or other maritime industries. Section 617: Early Maritime Education and Youth Involvement This section requires the Secretary of the Navy to specify funding for the Naval Sea Cadet Corps in the annual budget request and encourages the Maritime Administration (MARAD) Centers of Excellence to develop programs to work with K-12 educational programs to raise awareness of careers in the maritime industry. Section 618: International Scholarship for Mariner and Naval Architecture Exchanges This section establishes a new international exchange program between the United States and allied countries for post-graduate studies related to maritime architecture. Subtitle C: U.S. Merchant Marine Academy and State Maritime Academies 12 OST-2025-1200 Page 00726 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012407 ARIZONA SENATOR MARK KELLY Section 621: Authorization of Appropriations for United States Merchant Marine Academy Infrastructure and Facilities Modernization This section requires the Maritime Administration to develop a 10-year campus modernization plan to make the campus capable of meeting the modern needs of the midshipmen and the maritime industry. Section 622: United States Merchant Marine Academy This section establishes a sense of Congress that the U.S. Merchant Marine Academy shall be considered a co-equal school to the other four military service academies and requires MARAD to conduct a study on increasing enrollment at the Academy. This section also authorizes funding for the operations of the U.S. Merchant Marine Academy. Section 623: Retirement Service Credit for Service as a Midshipman at the United States Merchant Marine Academy This section clarifies that attendance at the U.S. Merchant Marine Academy, just like other federal service academies, is a qualifying time for federal retirement benefits. Section 624: State Maritime Academies This section requires the Maritime Administrator to evaluate whether additional resources are needed to allow State Maritime Academies to increase their enrollment. It also requires the Administrator to study if additional State Maritime Academies should be established. This section also provides dedicated funding to State Maritime Academies out of the Maritime Security Trust Fund. Section 625: Military to Mariner Enrollment at a State Maritime Academy This section requires State Maritime Academies to establish a program to allow honorably discharged veterans to receive merchant marine officer credentials without requiring the veteran to receive a four-year degree. Such expedited programs shall last less than three years. Section 626: Enforcement of Service Obligation Requirements This section requires the Maritime Administration to develop an updated system to ensure all mariners meet their service obligation and inform those who have not met their obligation of their duty to do so, or else repay the cost of their education. Section 627: Fuel Funding for Training Ships operated by State Maritime Academies 13 OST-2025-1200 Page 00727 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012408 ARIZONA SENATOR MARK KELLY This section establishes that all fuel costs for training ships operated by State Maritime Academies shall be provided out of the Maritime Security Trust Fund. It also prohibits State Maritime Academies who receive this funding from making a profit on students who use training vessels at sea. The section also establishes that State Maritime Academies should make use of mariners enrolled in the Career Retention Program to crew training vessels and allows the Maritime Administration to cover all such expenses associated with crew costs for individuals enrolled in the Career Retention Program on training ships, with funding provided out of the Maritime Security Trust Fund. Section 628: State Maritime Academy Sea Term Scholarship Programs This section requires the Maritime Administrator to partner with industry partners who would hire licensed mariners who complete summer sea term training on scholarships to offset the costs of a summer sea term program. The Maritime Administration can match contributed funds by industry partners for such programs with funding from the Maritime Security Trust Fund. Section 629: Naval Joint Exercise Involvement for Training Ships Operated by State Maritime Academies This section requires the Secretary of the Navy to find opportunities to include at least one training ship operated by a State Maritime Academy in annual joint-naval exercises and make space on the vessel available to students from USMMA, the SMAs, or other credentialed mariners. Subtitle D: Maritime Licensing Modernization Section 631: Merchant Mariner Credentialing Modernization This section requires the U.S. Coast Guard to upgrade the merchant mariner credentialing program to allow for electronic submission of mariner applications and allow certain data to be shared between government agencies. Section 632: Revising Merchant Mariner Deck Training Requirements This section updates the sea-time and training requirements for unlicensed members of deck departments. Section 633. Inspections for Transportation Security This section requires the Coast Guard to verify that offshore vessels are following the manning requirements under 43 U.S.C. 1356 or has a valid exemption. Section 634: Technical Amendments Relating to References to Seamen This section replaces the word "seaman" with the term "seafarer" where it appears in statute. 14 OST-2025-1200 Page 00728 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012409 ARIZONA SENATOR MARK KELLY Section 635: Renewal of Merchant Mariner Licenses and Documents This section clarifies that renewals to existing merchant mariner credentials begin the day after the expiration of the existing credential. Section 636: Merchant Seamen Licenses, Certificates, and Documents; Manning of Vessels This section enables American Samoans who meet the definition of a United States National to be eligible for merchant mariner credentials. Section 637: Reactivation of Expired License This section grants authority to reactivate a merchant mariner's documents, expired license, and/or certificate of registry in response to a declared national emergency, if determined necessary by the Secretary. Title 7: Tax Provisions Section 701: Establishment of the Maritime Security Trust Fund Other modes of transportation are supported by dedicated trust funds, financed by user fees. These trust funds, like the Highway Trust Fund and Aviation Trust Fund, allow for sustained federal support for national transportation priorities, independent of the annual appropriations process. This section (alongside Section 201) creates a Maritime Security Trust Fund to create a dedicated source of funding for critical maritime security programs. The Maritime Security Trust Fund would be financed by funds collected from Customs and Border Protection through duties, fees, and penalties imposed on vessels in international commerce, the proceeds from regular tonnage taxes (as amended by section 202), special tonnage taxes, light money, and tariffs and duties imposed on foreign nations, to include Section 301 tariffs. Section 702: United States Vessel Investment Credit This section would establish a 33% investment tax credit for any investment made by a taxpayer to construct, repower, or reconstruct an eligible oceangoing vessel in the United States. To claim the credit, the vessel owner would have to enter into an agreement with the Maritime Administrator to document the ship under the laws of the United States for not less than 10 years and institutes a claw back mechanism if necessary. A bonus credit of 5% would be added on if the vessel owner enters into an agreement with the Maritime Administrator to receive protection and indemnity (P&I) insurance from a company headquartered in the United States. A bonus credit of 2.5% would be added on if the vessel is classified by and designed in accordance with the rules of a classification society headquartered in the United States. 15 OST-2025-1200 Page 00729 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012410 ARIZONA SENATOR MARK KELLY Section 703: Certain Payments for Maritime Security Excluded from Gross Income This section clarifies that funding received under the following programs is not considered taxable income: The Maritime Security Program The Shipbuilding Financial Incentives Program The Cable Security Program The Tanker Security Program The Strategic Commercial Fleet Program The Small Shipyards Grant Program The Port Infrastructure Development Program Section 704: Elimination of 30-day Limitation on Domestic Operations This section eliminates the statutory 30-day limitation under the domestic tonnage tax. Section 705: Qualifying Shipping Activities This section requires the IRS to update regulations to specify that "core" activities are any transportation services that a carrier is obligated to provide under a bill of lading covering the transportation of goods by ocean to or from U.S. ports in foreign trade as set forth in the Carriage of Goods by Sea Act (COGSA), which is the industry standard for "core" activities. Section 706: Qualifying Vessel This section allows owners of vessels of the United States, whose vessels have a VISA or VTA, to qualify for the tonnage tax regime for their entire fleet of vessels. Section 707: Credit for Construction of Shipyard Facilities This section establishes a 25% investment tax credit for any investment made by a taxpayer into a qualified shipyard facility in the United States, which includes shipyards for civil and military oceangoing vessels, and manufacturers that make critical components or equipment for such vessels. Section 708: Tax Incentives Relating to Merchant Marine Capital Construction Funds This section makes corresponding technical updates to the Internal Revenue Code related to the changes made to the Capital Construction Fund under Sec. 505. It also clarifies that fund withdrawals may not be used for fully automated cargo handling equipment or cranes manufactured in the PRC. Section 709: Exemption of Student Incentive Payment Agreements from Gross Income 16 OST-2025-1200 Page 00730 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012411 ARIZONA SENATOR MARK KELLY The Student Incentive Payment (SIP) Program provides financial support to eligible students enrolled at a State Maritime Academy to become licensed officers in the U.S. Merchant Marine. Students benefitting from SIP have a service obligation upon graduation. This section clarifies the payments received under the SIP Program are not considered a part of a student's taxable income. Sec. 710 Maritime Fuel Tax Parity Act This section is the Maritime Fuel Tax Parity Act (S. 3001 / H.R. 1044), which extends the exemption from the excise tax on alternative motor boat or motor vehicle fuels sold or used as supplies for certain vessels or aircraft engaged in trade between U.S. Atlantic or Pacific ports. 17 OST-2025-1200 Page 00731 Sierra Club v. Dept. of Transp. - 3:25-cv-06221 SC_EVERSPLIT0012412