LOAN GUARANTEES FOR EXPORT VESSELS.

SEC. 1356. LOAN GUARANTEES FOR EXPORT VESSELS. Title XI of the Merchant Marine Act, 1936 (46 App. U.S.C. 1271 et seq.) is amended as follows: (1) Eligible export vessel defined.—Section 1101 is amended by adding at the end the following new subsection: “(o) The term ‘eligible export vessel’ means a vessel constructed, reconstructed, or reconditioned in the United States for use in world-wide trade which will, upon delivery or redelivery, be placed under or continued to be documented under the laws of a country other than the United States.”. (2) Limitations on guarantee obligations.—Section 1103 is amended— (A) by amending the first sentence of subsection (f) to read as follows: “The aggregate unpaid principal amount of the obligations guaranteed under this section and outstanding at any one time shall not exceed $12,000,000,000, of which (1) $850,000,000 shall be limited to obligations pertaining to guarantees of obligations for fishing vessels and fishery facilities made under this title, and (2) $3,000,000,000 shall be limited to obligations pertaining to guarantees of obligations for eligible export vessels.”; and (B) by adding at the end the following new subsection: “(g)(1) The Secretary may not issue a commitment to guarantee obligations for an eligible export vessel unless, after considering— “(A) the status of pending applications for commitments to guarantee obligations for vessels documented under the laws of the United States and operating or to be operated in the domestic or foreign commerce of the United States, “(B) the economic soundness of the applications referred to in subparagraph (A), and “(C) the amount of guarantee authority available, the Secretary determines, m the sole discretion of the Secretary, that the issuance of a commitment to guarantee obligations for an eligible export vessel will not result in the denial of an economically sound application to issue a commitment to guarantee obliga-107 STAT. 1813tions for vessels documented under the laws of the United States operating in the domestic or foreign commerce of the United States. “(2) The Secretary may not issue commitments to guarantee obligations for eligible export vessels under this section after the later of— “(A) the 5th anniversary of the date on which the Secretary publishes final regulations setting forth the application procedures for the issuance of commitments to guarantee obligations for eligible export vessels, “(B) the last day of any 5-year period in which funding and guarantee authority for obligations for eligible export vessels nave been continuously available, or “(C) the last date on which those commitments may be issued under any treaty or convention entered into after the date of the enactment of the National Shipbuilding and Shipyard Conversion Act of 1993 that prohibits guarantee of those obligations”. (3) Authority to guarantee obligations for eligible export vessels.— Section 1104A is amended— (A) by amending so much of subsection (a)(1) as precedes the proviso to read as follows: “(1) financing, including reimbursement of an obligor for expenditures previously made for, construction, reconstruction, or reconditioning of a vessel (including an eligible export vessel), which is designed principally for research, or for commercial use (A) in the coastwise or intercoastal trade; (B) on the Great Lakes, or on bays, sounds, rivers, harbors, or inland lakes of the United States; (C) in foreign trade as defined in section 905 of this Act for purposes of title V of this Act; or (D) as an ocean thermal energy conversion facility or plantship; (E) with respect to floating drydocks in the construction, reconstruction, reconditioning, or repair of vessels; or (F) with respect to an eligible export vessel, in world-wide trade;”; (B) by amending subsection (b)(2)— (i) by striking “subject to the provisions of paragraph (1) of subsection (c) of this section,” and inserting “subject to the provisions of subsection (c)(1) and subsection (i),”, and (ii) by inserting before the semicolon at the end the following: “: Provided further, That in the case of an eligible export vessel, such obligations may be in an aggregate principal amount which does not exceed 87½ of the actual cost or depreciated actual cost of the eligible export vessel”; (C) by amending subsection (b)(6) by inserting after “United States Coast Guard” the following: “or, in the case of an eligible export vessel, of the appropriate national flag authorities under a treaty, convention, or other international agreement to which the United States is a party”; (D) in subsection (d), by adding at the end the following new paragraph: “(3) No commitment to guarantee, or guarantee of an obligation may be made by the Secretary under this title for the construction, reconstruction, or reconditioning of an eligible export vessel unless— “(A) the Secretary finds that the construction, reconstruction, or reconditioning of that vessel will aid 107 STAT. 1814in the transition of United States shipyards to commercial activities or will preserve shipbuilding assets that would be essential in time of war or national emergency, and “(B) the owner of the vessel agrees with the Secretary of Transportation that the vessel shall not be transferred to any country designated by the Secretary of Defense as a country whose interests are hostile to the interests of the United States.”; and (E) by adding at the end the following new subsections: “(i) The Secretary may not, with respect to— “(1) the general 75 percent or less limitation in subsection (b)(2); “(2) the 87½ percent or less limitation in the 1st, 2nd, 4th, or 5th proviso to subsection (b)(2) or section 1112(b); or “(3) the 80 percent or less limitation in the 3rd proviso to such subsection; establish by rule, regulation, or procedure any percentage within any such limitation that is, or is intended to be, applied uniformly to all guarantees or commitments to guarantee made under this section that are subject to the limitation. “(j)(1) Upon receiving an application for a loan guarantee for an eligible export vessel, the Secretary shall promptly provide to the Secretary of Defense notice of the receipt of the application. During the 30-day period beginning on the date on which the Secretary of Defense receives such notice, the Secretary of Defense may disapprove the loan guarantee based on the assessment of the Secretary of the potential use of the vessel in a manner that may cause harm to United States national security interests. The Secretary of Defense may not disapprove a loan guarantee under this section solely on the basis of the type of vessel to be constructed with the loan guarantee. The authority of the Secretary to disapprove a loan guarantee under this section may not be delegated to any official other than a civilian officer of the Department of Defense appointed by the President, by and with the advice and consent of the Senate. “(2) The Secretary of Transportation may not make a loan guarantee disapproved by the Secretary of Defense under paragraph (1).” (4) Limitation on authority to establish uniform percentage limitation.—Section 1104B is amended by adding at the end of subsection (b) the following flush sentence: “The Secretary may not by rule, regulation, or procedure establish any percentage within the 87½ percent or less limitation in paragraph (2) that is, or is intended to be, applied uniformly to all guarantees or commitments to guarantee made under this section.”. (5) Conforming amendment.—Section 1103(a) is amended in the first sentence by striking “, upon application by a citizen of the United States,”.