(1) In general.— The Secretary, subject to the availability of appropriations and the other provisions of this section, shall pay to the contractor for an operating agreement, for each vessel that is covered by the operating agreement, an amount equal to—
(A)$2,600,000 for each of fiscal years 2006, 2007, and 2008;
(B)$2,900,000, for each of fiscal years 2009, 2010, and 2011;
(C)$3,100,000 for each of fiscal years 2012, 2013, 2014, 2015, 2016, 2017, and 2018;
(D)$3,500,000 for each of fiscal years 2019, 2020, and 2021; and
(E)$3,700,000 for each of fiscal years 2022, 2023, 2024, and 2025.
(2) Timing.— The amount shall be paid in equal monthly installments at the end of each month. The amount shall not be reduced except as provided by this section.
(b) Certification Required for Payment.— As a condition of receiving payment under this section for a fiscal year for a vessel, the contractor for the vessel shall certify, in accordance with regulations issued by the Secretary, that the vessel has been and will be operated in accordance with section
53105(a)(1) for at least 320 days in the fiscal year. Days during which the vessel is drydocked, surveyed, inspected, or repaired shall be considered days of operation for purposes of this subsection.
(c) General Limitations.— The Secretary of Transportation shall not make any payment under this chapter for a vessel with respect to any days for which the vessel is—
(1)under a charter to the United States Government, other than a charter pursuant to an Emergency Preparedness Agreement under section
(2)not operated or maintained in accordance with an operating agreement under this chapter; or
(A)25 years of age, except as provided in subparagraph (B) or (C);
(B)20 years of age, in the case of a tank vessel; or
(C)30 years of age, in the case of a LASH vessel.
(d) Reductions in Payments.— With respect to payments under this chapter for a vessel covered by an operating agreement, the Secretary—
(1)except as provided in paragraph (2), shall not reduce any payment for the operation of the vessel to carry military or other preference cargoes under section
55314 of this title, section
2631 of title
10, or any other cargo preference law of the United States;
(2)shall not make any payment for any day that the vessel is engaged in transporting more than 7,500 tons of civilian bulk preference cargoes pursuant to section
55314 of this title that is bulk cargo; and
(3)shall make a pro rata reduction in payment for each day less than 320 in a fiscal year that the vessel is not operated in accordance with section
53105(a)(1), with days during which the vessel is drydocked or undergoing survey, inspection, or repair considered to be days on which the vessel is operated.
(1) In general.— No contractor shall receive payments pursuant to this chapter during a period in which it participates in noncontiguous domestic trade.
(2) Limitation on application.— Paragraph (1) shall not apply to any person that is a citizen of the United States within the meaning of section
50501 of this title, applying the 75 percent ownership requirement of that section.
(3) Participates in a noncontiguous domestic trade defined.— In this subsection the term “participates in a noncontiguous domestic trade” means directly or indirectly owns, charters, or operates a vessel engaged in transportation of cargo between a point in the contiguous 48 States and a point in Alaska, Hawaii, or Puerto Rico, other than a point in Alaska north of the Arctic Circle.
Pub. L. 112–239, div. C, title XXXV, § 3508(f)(2), (j)(2),Jan. 2, 2013, 126 Stat. 2225, 2226, provided that, effective Dec. 31, 2014, subsection (c)(3)(C) of this section is amended by striking “a LASH vessel.” and inserting “a lighter aboard ship vessel.” See 2013 Amendment note below.
2013—Subsec. (a)(1)(B) to (E). Pub. L. 112–239, § 3508(f)(1), added subpars. (C) to (E) and struck out former subpar. (C) which read as follows: “$3,100,000 for each of fiscal years 2012 though 2025.”
Subsec. (c)(3)(C). Pub. L. 112–239, § 3508(f)(2), substituted “a lighter aboard ship vessel.” for “a LASH vessel.”
Subsec. (f). Pub. L. 112–239, § 3508(f)(3), struck out subsec. (f). Text read as follows: “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).”
2011—Subsec. (a)(1)(C). Pub. L. 111–383substituted “for each of fiscal years 2012 though 2025” for “for each fiscal years 2012, 2013, 2014, and 2015”.
Subsec. (e)(2). Pub. L. 109–304, § 13(a)(5)(C), substituted “section
50501 of this title, applying the 75 percent ownership requirement of that section” for “section 2(c) of the Shipping Act, 1916 (46 App. U.S.C. 802(c))”.
The table below lists the classification updates, since Jan. 3, 2012, for this section. Updates to a broader range of sections may be found at the update page for containing chapter, title, etc.
The most recent Classification Table update that we have noticed was Tuesday, August 13, 2013
An empty table indicates that we see no relevant changes listed in the classification tables. If you suspect that our system may be missing something, please double-check with the Office of the Law Revision Counsel.