Commercial shipbuilding infrastructure program

Section 54101 of title 46, United States Code, is amended to read as follows: 54101. Commercial shipbuilding infrastructure program (a) Establishment (1) In general Subject to the availability of appropriations, the Maritime Administrator shall carry out a program to provide financial assistance to shipyards for the purposes described in subsection (c). (2) Goal The goal of the program shall be to fund eligible projects that will foster technical skills and operational productivity relating to shipbuilding, ship repair, and associated industries. (b) Grant authority (1) In general In carrying out the program, the Maritime Administrator shall make grants to eligible applicants, on a competitive basis, in accordance with this section. (2) Administrative costs Not more than 2 percent of amounts made available to carry out the program authorized by this section may be used for necessary costs of administration of the program authorized by this section. (3) Availability (A) In general Amounts appropriated to make grants for shipyards under this section shall remain available until expended. (B) Reuse of unexpended grant funds Amounts awarded as a grant under this section that are not expended by the grantee during the 5-year period following the date of the award or that are returned shall remain available to the Maritime Administrator for use for grants under this section in a subsequent fiscal year. (4) Awards In providing assistance under this section, the Maritime Administrator shall not select an applicant for more than one award for the same fiscal year. (5) Amount For grants other than those awarded under subsection (i), the minimum award size shall be $30,000,000. (6) Prohibited uses A maritime training center that has received funds awarded under section 51706 of title 46, United States Code, shall not be eligible for grants under this section for training purposes in the same fiscal year. (c) Eligible projects Assistance provided under this section may be used to— (1) make capital and related improvements to shipyards owned or operated by eligible applicants; and (2) provide training for workers in shipbuilding, ship repair, and associated industries. (d) Eligible applicants To be eligible for financial assistance pursuant to this section, an applicant shall— (1) have authority as owner or operator of the shipyard facility to carry out the proposed project as required by subsection (j); and (2) be the owner or operator of a shipyard facility in a single geographic location in the United States that— (A) constructs, repairs, or reconfigures vessels 40 feet in length or more for commercial or government use; or (B) constructs, repairs, or reconfigures vessels 100 feet in length or more for noncommercial vessels. (e) Buy America (1) In general Subject to paragraph (2), the Maritime Administrator shall not obligate funds under this section, unless each product and material purchased with those funds (including products and materials purchased by a grantee), and including any commercially available off-the-shelf item, is— (A) an unmanufactured article, material, or supply that has been mined or produced in the United States; or (B) a manufactured article, material, or supply that has been manufactured in the United States substantially all from articles, materials, or supplies mined, produced, or manufactured in the United States. (2) Exceptions (A) In general Notwithstanding paragraph (1), the requirements of that paragraph shall not apply with respect to a particular product or material if the Administrator determines— (i) that the application of those requirements would be inconsistent with the public interest; (ii) that such product or material is not available in the United States in sufficient and reasonably available quantities, of a satisfactory quality, or on a timely basis; or (iii) that inclusion of a domestic product or material will increase the cost of that product or material by more than 25 percent, with respect to a certain contract between a grantee and that grantee's supplier. (B) Federal register A determination made by the Administrator under this subparagraph shall be published in the Federal Register. (3) Definitions In this subsection: (A) Commercially available off-the-shelf item The term commercially available off-the-shelf item means— (i) any item of supply (including construction material) that is— (I) a commercial product, as defined by section 2.101 of title 48, Code of Federal Regulations (as in effect on the date of the enactment of this Act); and (II) sold in substantial quantities in the commercial marketplace; and (ii) does not include bulk cargo, as defined in section 40102(4) of this title, such as agricultural products and petroleum products. (B) Product or material The term product or material means an article, material, or supply brought to the site by the recipient for incorporation into the building, work, or project. The term also includes an item brought to the site preassembled from articles, materials, or supplies. However, emergency life safety systems, such as emergency lighting, fire alarm, and audio evacuation systems, that are discrete systems incorporated into a public building or work and that are produced as complete systems, are evaluated as a single and distinct construction material regardless of when or how the individual parts or components of those systems are delivered to the construction site. (C) United States The term United States includes the District of Columbia, the Commonwealth of Puerto Rico, the Northern Mariana Islands, Guam, American Samoa, and the Virgin Islands. (f) Solicitation and application (1) Notice of funding opportunity Not later than 45 days after the date on which funds are made available to carry out the program, the Secretary shall publish a notice of funding opportunity for the funds. (2) Applications (A) In general To be eligible to receive a grant under this section, an applicant shall submit to the Maritime Administrator an application in such form and containing such information and assurances as the Maritime Administrator considers to be appropriate. (B) Contents Such an application shall include, at minimum, a comprehensive description of— (i) the need for the project; (ii) the methodology for implementing the project; and (iii) any existing programs or arrangements that can be used to supplement or leverage assistance under the program. (3) Timing of applications To be eligible to receive assistance under this section, an applicant must submit an application by such date as the Maritime Administrator may establish. (g) Primary selection criteria In awarding grants under the program, the Maritime Administrator shall evaluate the extent to which a project fosters— (1) efficiency, competitive operations, quality ship construction, repair, and reconfiguration, and improves capacity at the shipyard (for capital improvement projects); (2) employee skills and enhanced productivity related to shipbuilding, ship repair, and associated industries (for maritime training program projects); and (3) improved capacity at the shipyard (for projects other than those under subsection (i)). (h) Additional considerations In selecting projects to receive grants under the program, the Maritime Administrator shall give substantial weight to— (1) the extent to which the project improves safety; (2) the utilization of non-Federal contributions; (3) the utilization of nontraditional financing, innovative design and construction techniques, or innovative technologies; (4) the extent to which the project supports critical shipbuilding and ship repair infrastructure as determined by the Maritime Administrator; and (5) contributions to geographic diversity among grant recipients. (i) Assistance to small shipyards (1) Allocation of funds The Maritime Administrator shall reserve not less than 25 percent of the amounts made available for grants under this section each fiscal year to make grants to eligible applicants for eligible projects at shipyard facilities that have 1,200 production employees or fewer in one geographic location. (2) Limitations (A) In general Grants awarded under this subsection may not be used to construct buildings or other physical facilities or to acquire land. (B) Limitation Not more than 25 percent of the funds available under this subsection may be awarded to any small shipyard in one geographic location that has more than 600 production employees. (3) Production employees In this section, production employees include eligible applicant employees directly engaged in repair, construction, or reconstruction of vessels and does not include— (A) employees primarily engaged in administration, engineering, or support functions; or (B) contractors of any kind. (j) Conditions on provision of assistance The Maritime Administrator may not award a grant under this section unless the Maritime Administrator determines that— (1) sufficient funding is available to meet the matching requirements of subsection (l); (2) the project will be completed without unreasonable delay; and (3) the recipient has authority to carry out the proposed project. (k) Awards (1) In general Except as provided in subparagraph (2), not later than 270 days after the date on which amounts are made available to provide grants under the program for a fiscal year, the Maritime Administrator shall announce the selection of awards of eligible projects to receive grants in accordance with this section. (2) Announcement For projects selected under subsection (i), the Maritime Administrator shall announce the selection of awards of eligible projects not later than 150 days after the date on which amounts are made available to provide grants under the program for a fiscal year, in accordance with this section. (l) Federal share The Federal share of the cost of an eligible project carried out using a grant provided under the program shall not exceed 75 percent. (m) Technical assistance (1) In general On request of an eligible applicant that submitted an application for a project that is not selected to receive a grant under the program, the Maritime Administrator shall provide to the eligible applicant technical assistance and briefings relating to the project. (2) Treatment Technical assistance provided under this paragraph shall not be considered a guarantee of future selection of the applicable project under the program. (n) Audits and examinations All grantees under this section shall maintain such records as the Maritime Administrator may require and make such records available for review and audit by the Maritime Administrator. (o) Procedural safeguards The Maritime Administrator, in consultation with the Office of the Inspector General, shall issue guidelines to establish appropriate accounting, reporting, and review procedures to ensure that— (1) grant funds are used for the purposes for which they were made available; (2) grantees have properly accounted for all expenditures of grant funds; and (3) grant funds not used for such purposes and amounts not obligated or expended are returned..