AMENDMENTS RELATING TO THE MARITIME SECURITY FLEET PROGRAM.

SEC. 3502. AMENDMENTS RELATING TO THE MARITIME SECURITY FLEET PROGRAM.(a) Limitation on Transfer of Operating Agreements.—Section 53105(e) of title 46, United States Code, is amended—(1) by inserting “(1) In general.—” before the first sentence;(2) by moving paragraph (1) (as designated by the amendment made by paragraph (1) of this subsection) so as to appear immediately below the heading for such subsection, and 2 ems to the right; and(3) by adding at the end the following:“(2) Limitation.—The Secretary of Defense may not approve under paragraph (1) transfer of an operating agreement to a person that is not a citizen of the United States under section 2 of the Shipping Act, 1916 (46 U.S.C. App. 802), unless the Secretary of Defense determines that there is no person who is a citizen under such section and is interested 120 STAT. 2515 in obtaining the operating agreement for a vessel that is otherwise eligible to be included in the Fleet under section 53102(b) and meets the requirements of the Department of Defense.”.(b) Maritime Security Fleet Program Tank Vessels.—(1) In general.—Section 53103(c)(4) of title 46, United States Code, is amended—(A) in subparagraph (A)(i) by striking “(i)” and inserting “(i)(I)”;(B) in subparagraph (A) by redesignating clause (ii) as subclause (II) of clause (i);(C) in subparagraph (A)(i)(II), as so redesignated, by striking “53102(b).” and inserting “53102(b); or”;(D) by inserting after subparagraph (A)(i)(II), as so redesignated, the following:“(ii)(I) not later than 9 months after the first date amounts are available to carry out this chapter, the operator of the existing tank vessel enters into an agreement to charter one or more tank vessels to be built in the United States and operated as a documented vessel or documented vessels;“(II) the combined tonnage of the vessels required to be chartered under subclause (I) is equal to or greater than the tonnage of the existing tank vessel subject to an operating agreement;“(III) the operator enters into an agreement with the Secretary that is substantially the same as an Emergency Preparedness Agreement under section 53107 of this title, under which the operator shall make available commercial transportation resources as provided in that section;“(IV) if the person that is the owner or operator of the existing tank vessel owns or operates more than one existing tank vessel subject to an operating agreement, the combined tonnage of those vessels required to be chartered under subclause (I) by that person is equal to or greater than the combined tonnage of all such existing tank vessels owned or operated by such person that are subject to operating agreements.”;(E) in subparagraph (B) by inserting “with respect to which a binding contract is entered into under subparagraph (A)(i)” after “existing tank vessel”; and(F) by adding at the end the following:“(C) For purpose of subparagraph (A)(ii), tonnage shall be measured under section 14502 of this title, or an alternate tonnage measured under section 14302 of this title as prescribed by the Secretary under section 14104 of this title.“(D) No payment under this chapter may be made for an existing tank vessel with respect to which an agreement is entered into under subparagraph (A)(ii) for any period occurring—“(i) after the date that is 5 years after the first date that amounts became available to carry out this chapter, if the vessel or vessels required to be chartered under subparagraph (A)(ii) have not been delivered; or“(ii) after delivery of the vessel or vessels required to be chartered under such subparagraph, if any of such vessels is not chartered by the operator of the existing tank vessel.”.120 STAT. 2516(2) Assistance authority.—Section 3543(a) of the National Defense Authorization Act for Fiscal Year 2004 (46 U.S.C. 53101 note) is amended by striking “shall, to the extent of the availability of appropriations,” and inserting “may”.(c) Priority in Allocation of Amounts Available for Annual Payments.—Section 53106 of title 46, United States Code, is amended by adding at the end the following:“(f) Priority in Allocation of Available Amounts.—If the amount available for a fiscal year for making payments under operating agreements under this chapter is not sufficient to pay the full amount authorized under each agreement pursuant to this section for such fiscal year, the amount available shall be allocated among such agreements in a manner that gives priority to payments for vessels that are subject to agreements under section 3517 of the Maritime Security Act of 2003 (46 U.S.C. 53101 note).”.