Cargo preference enforcement

(a) In general Section 55305 of title 46, United States Code, is amended— (1) in subsection (a)— (A) by striking Minimum tonnage.— When the United States Government and inserting Requirement to use U.S.-Flag vessels.— When a United States department or agency; and (B) by striking the appropriate agencies shall take steps necessary and all that follows through the end of the subsection and inserting the department or agency must ensure that all equipment, materials, or commodities that may be transported on ocean vessels, except when required for the timely transportation of cargoes under the Foreign Assistance Act of 1961 (22 U.S.C. 2151 et seq.), is transported on privately-owned commercial vessels of the United States.; (2) by striking subsection (d) and inserting the following: (d) Waivers (1) The requirements under this section may be waived as provided for in this subsection. (2) The President, the Secretary of War, or the Secretary of State may waive this section temporarily by— (A) declaring the existence of an emergency justifying a waiver; and (B) notifying the appropriate agencies of the waiver; or (3) Upon the request of a U.S. Government department or agency filed at least 10 days prior to transportation of equipment, materials, and commodities subject to this section, the Secretary of Transportation may waive the requirements in subsection (a), for all or part of the transportation, if the Secretary determines there are no privately-owned commercial vessels of the United States— (A) responsive to the solicitation by vessel type; (B) available at fair and reasonable rates for commercial vessels of the United States; or (C) otherwise available. (4) For waiver requests filed pursuant to paragraph (3), the Secretary of Transportation shall not be obligated to issue a waiver sooner than 10 days prior to transportation. (5) The Secretary of Transportation shall notify the Committee on Transportation and Infrastructure and the Committee on Armed Services of the House of Representatives and the Committee on Commerce, Science, and Transportation of the Senate of— (A) any waiver request made pursuant to paragraph (3) not later than 72 hours after receiving such a request; and (B) the issuance of any such waiver not later than 72 hours after issuing the waiver. (6) Waivers issued pursuant to paragraph (3) shall be published on the Department of Transportation website within 5 business days. (7) The Secretary of Transportation, in consultation with the Secretary of State, is authorized to promulgate regulations defining “fair and reasonable rates for commercial vessels of the United States as cost based” for purposes of the determinations established in paragraph (3). The goal of such regulations shall be to provide clarity and reduce procedural friction in the waiver process by establishing an objective standard based on vessel cost, to the maximum extent possible, in relevant and accessible market and cost data.; (3) in subsection (e)— (A) in the subsection heading by striking Programs of other agencies and inserting Department and agency requirements; (B) by striking paragraph (1) and inserting the following: (1) Each Federal Government department or agency that transports equipment, commodities, or materials shall— (A) include provisions in each Federal solicitation, application, agreement, or procurement contract requiring each contract applicant or offeror to acknowledge that ocean transportation contracted under the agreement or procurement contract must comply with this section and related regulations issued by the Secretary of Transportation; (B) submit to the Secretary agreements, procurements, or other contracts at least 45 days before ocean carriage, along with corresponding plans for complying with this section that describe— (i) all cargoes, both known and anticipated, with specificity; (ii) the proposed ports of loading and discharge and expected dates of ocean carriage; (iii) all parties involved in the ocean transportation of the cargoes, including brokers and freight forwarders; and (iv) any other relevant information required by the Secretary of Transportation; (C) provide the Maritime Administration with the Automated Commercial Environment Internal Transaction Number that corresponds with each ocean bill of lading number for each ocean shipment of cargo under contract, including those transported on foreign-flag vessels— (i) within 20 working days after the date of loading for shipments originating in the United States; (ii) within 30 working days after the date of loading for shipments originating outside of the United States; or (iii) in instances for which an Automated Commercial Environment Internal Transaction Number is not available, a legible, complete copy of a rated on-board ocean bill of lading in English, within times specified in clauses (i) or (ii); (D) exercise contractual rights and remedies against contractors who fail to comply with contractual provisions requiring the use of U.S.-flag vessels, as determined by the Secretary of Transportation, including by— (i) equitably adjusting the contract price downward by an amount equal to the difference in the cost of a foreign-flag vessel used in violation of the contract and the estimated cost of using a U.S.-flag vessel to carry the same cargo; (ii) determining that a contractor is ineligible for an award of such a contract; or (iii) terminating such a contract or suspension or debarment of the contractor for such a contract; and (E) retain records collected pursuant to this section for 5 years after each shipment is completed.; and (C) in paragraph (2)— (i) by striking subparagraphs (A) and (B); (ii) by redesignating subparagraphs (C) and (D) as subparagraphs (E) and (F), respectively; (iii) by inserting before subparagraph (E), as so redesignated, the following: (A) has sole authority for determining compliance by a department, agency, or individual with this section; (B) may provide guidance on whether a department or agency is operating in compliance with the requirements of this section; (C) shall review every shipment and compliance plan subject to the requirements of this section; (D) shall annually submit to the Committee on Transportation and Infrastructure and Committee on Armed Forces of the House of Representatives and the Committee on Commerce, Science, and Transportation of the Senate a report on department and agency compliance with this section, including submission of compliance plans;; and (iv) in subparagraph (F), as so redesignated, by striking may take other measures as appropriate under and inserting shall notify agencies of violations so that other measures may be taken as appropriate under subsection (e)(1)(D) of this section or. (b) Effective date The amendments made by this section shall take effect on the date that is 180 days after the date of enactment of this Act.