PRIORITY FOR TITLE XI ASSISTANCE.

SEC. 1014. PRIORITY FOR TITLE XI ASSISTANCE.(a) In General.—Section 1103 of the Merchant Marine Act, 1936 (46 U.S.C. App. 1273) is amended—(1) in subsection (i) (as added by section 3544 of this Act) by striking “Priority”and inserting “Priority for National Defense Tank Vessels”; and(2) by adding at the end the following:“(j) Priority for Other Vessels Suitable for Service as a Naval Auxiliary.—In guaranteeing and entering commitments to guarantee under this section, the Secretary shall, after applying subsection (i), give priority to a guarantee or commitment for a vessel that is otherwise eligible for a guarantee under this section and that the Secretary of Defense determines—“(1) is suitable for service as a naval auxiliary in time of war or national emergency; and“(2) meets a shortfall in sealift capacity or capability.”.(b) Report.—Within 180 days after the date of the enactment of this Act, the Secretary of Transportation and the Secretary of Defense shall transmit a report to the Senate Committee on Armed Services, the Senate Committee on Commerce, Science, and Transportation, and the House of Representatives Committee on Armed Services that—(1) sets forth the criteria to be used by the Secretary of Defense in making, for purposes of section 1103(j) of the Merchant Marine Act, 1936 (46 U.S.C. App. 1273(j)), as amended by this section, the determinations described in paragraphs (1) and (2) of that section; and(2) describes the procedure that the Secretary of Defense will follow—(A) in reviewing applications for which priority treatment is sought under section 1103(j) of that Act; and(B) in reporting to the Secretary of Transportation with respect to such applications.