NATIONAL DEFENSE RESERVE FLEET.

SEC. 1014. NATIONAL DEFENSE RESERVE FLEET. (a) Availability of National Defense Sealift Fund.— Section 2218 of title 10, United States Code, is amended— (1) in subsection (c)(1)— (A) by striking out “only for—” in the matter preceding subparagraph (A) and inserting in lieu thereof “only for the following purposes:”; (B) by capitalizing the first letter of the first word of subparagraphs (A), (B), (C), and (D); (C) by striking out the semicolon at the end of subparagraphs (A) and (B) and inserting in lieu thereof a period; (D) by striking out “; and” at the end of subparagraph (C) and inserting in lieu thereof a period; and (E) by adding at the end the following new subparagraph: “(E) Expenses for maintaining the National Defense Reserve Fleet under section 11 of the Merchant Ship Sales Act of 1946 (50 U.S.C. App. 1744), and for the costs of acquisition of vessels for, and alteration and conversion of vessels 110 STAT. 424in (or to be placed in), the fleet, but only for vessels built in United States shipyards.”; and (2) in subsection (i), by inserting “(other than subsection (c)(I)(E))” after “Nothing in this section”. (b) Clarification of Exemption of NDRF Vessels From Retrofit Requirement.— Section 11 of the Merchant Ship Sales Act of 1946 (50 U.S.C. App. 1744) is amended by adding at the end the following new subsection: “(e) Vessels in the National Defense Reserve Fleet are exempt from the provisions of section 3703a of title 46, United States Code.”. (c) Authority To Use National Defense Sealift Fund To Convert Two Vessels.— Of the amount authorized to be appropriated in section 302 for fiscal year 1996 for the National Defense Sealift Fund under section 2218 of title 10, United States Code, not more than $20,000,000 shall be available for conversion work on the following two roll-on/roll-off vessels, which were acquired by the Maritime Administration during fiscal year 1995: (1) M/V Cape Knox (ON-1036323). (2) M/V Cape Kennedy (ON-1036324).