APPENDIX B Oil Pollution Act of 1990 (P.L. 101-380), Section 4115

Establishment of Double Hull Requirement for Tank Vessels

(a) Double Hull Requirement.—Chapter 37 of title 46, United States Code, is amended by inserting after section 3703 the following new section:

''§ 3703a. Tank Vessel Construction Standards

"(a) Except as otherwise provided in this section, a vessel to which this chapter applies shall be equipped with a double hull—

"(1) if it is constructed or adapted to carry, or carries, oil in bulk as cargo or cargo residue; and

"(2) when operating on the waters subject to the jurisdiction of the United States, including the Exclusive Economic Zone.

"(b) This section does not apply to—

"(1) a vessel used only to respond to a discharge of oil or a hazardous substance;

"(2) a vessel of less than 5,000 gross tons equipped with a double containment system determined by the Secretary to be as effective as a double hull for the prevention of a discharge of oil; or

"(3) before January 1, 2015—

"(A) a vessel unloading oil in bulk at a deepwater port licensed under the Deepwater Port Act of 1974 (33 U.S.C. 1501 et seq.); or

"(B) a delivering vessel that is offloading in lightering activities—

"(i) within a lightering zone established under section 3715(b)(5) of this title; and

"(ii) more than 60 miles from the baseline from which the territorial sea of the United States is measured.



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--> APPENDIX B Oil Pollution Act of 1990 (P.L. 101-380), Section 4115 Establishment of Double Hull Requirement for Tank Vessels (a) Double Hull Requirement.—Chapter 37 of title 46, United States Code, is amended by inserting after section 3703 the following new section: ''§ 3703a. Tank Vessel Construction Standards "(a) Except as otherwise provided in this section, a vessel to which this chapter applies shall be equipped with a double hull— "(1) if it is constructed or adapted to carry, or carries, oil in bulk as cargo or cargo residue; and "(2) when operating on the waters subject to the jurisdiction of the United States, including the Exclusive Economic Zone. "(b) This section does not apply to— "(1) a vessel used only to respond to a discharge of oil or a hazardous substance; "(2) a vessel of less than 5,000 gross tons equipped with a double containment system determined by the Secretary to be as effective as a double hull for the prevention of a discharge of oil; or "(3) before January 1, 2015— "(A) a vessel unloading oil in bulk at a deepwater port licensed under the Deepwater Port Act of 1974 (33 U.S.C. 1501 et seq.); or "(B) a delivering vessel that is offloading in lightering activities— "(i) within a lightering zone established under section 3715(b)(5) of this title; and "(ii) more than 60 miles from the baseline from which the territorial sea of the United States is measured.

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--> "(c) (1) In this subsection, the age of a vessel is determined from the later of the dates on which the vessel— "(A) is delivered after original construction; "(B) is delivered after completion of a major conversion; or "(C) had its appraised salvage value determined by the Coast Guard and is qualified for documentation under section 4136 of the Revised Statutes of the United States (46 App. U.S.C. 14). "(2) A vessel of less than 5,000 gross tons for which a building contract or contract for major conversion was placed before June 30, 1990, and that is delivered under that contract before January 1, 1994, and a vessel of less than 5,000 gross tons that had its appraised salvage value determined by the Coast Guard before June 30, 1990 and that qualifies for documentation under section 4136 of the Revised Statutes of the United States (46 App. U.S.C. 14) before January 1, 1994, may not operate in the navigable waters or the Exclusive Economic Zone of the United States after January 1, 2015, unless the vessel is equipped with a double hull or with a double containment system determined by the Secretary to be as effective as a double hull for the prevention of a discharge of oil. (3) A vessel for which a building contract or contract for major conversion was placed before June 30, 1990, and that is delivered under that contract before January 1, 1994, and a vessel that had its appraised salvage value determined by the Coast Guard before June 30, 1990, and that qualifies for documentation under section 4136 of the Revised Statutes of the United States (46 App. U.S.C. 14) before January 1, 1994, may not operate in the navigable water or Exclusive Economic Zone of the United States unless equipped with a double hull— "(A) in the case of a vessel of at least 5,000 gross tons but less than 15,000 gross tons— "(i) after January 1, 1995, if the vessel is 40 years old or older and has a single hull, or is 45 years old or older and has a double bottom or double sides; "(ii) after January 1, 1996, if the vessel is 39 years old or older and has a single hull, or is 44 years old or older and has a double bottom or double sides; "(iii) after January 1, 1997, if the vessel is 38 years old or older and has a single hull, or is 43 years old or older and has a double bottom or double sides; "(iv) after January 1, 1998, if the vessel is 37 years old or older and has a single hull, or is 42 years old or older and has a double bottom or double sides; "(v) after January 1, 1999, if the vessel is 36 years old or older

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--> and has a single hull, or is 41 years old or older and has a double bottom or double sides; "(vi) after January 1, 2000, if the vessel is 35 years old or older and has a single hull, or is 40 years old or older and has a double bottom or double sides; and "(vii) after January 1, 2005, if the vessel is 25 years old or older and has a single hull, or is 30 years old or older and has a double bottom or double sides; "(B) in the case of a vessel of at least 15,000 gross tons but less than 30,000 gross tons— "(i) after January 1, 1995, if the vessel is 40 years old or older and has a single hull, or is 45 years old or older and has a double bottom or double sides; "(ii) after January 1, 1996, if the vessel is 38 years old or older and has a single hull, or is 43 years old or older and has a double bottom or double sides; "(iii) after January 1, 1997, if the vessel is 36 years old or older and has a single hull, or is 41 years old or older and has a double bottom or double sides; "(iv) after January 1, 1998, if the vessel is 34 years old or older and has a single hull, or is 39 years old or older and has a double bottom or double sides; "(v) after January 1, 1999, if the vessel is 32 years old or older and has a single hull, or is 37 years old or older and has a double bottom or double sides; "(vi) after January 1, 2000, if the vessel is 30 years old or older and has a single hull, or is 35 years old or older and has a double bottom or double sides; "(vii) after January 1, 2001, if the vessel is 29 years old or older and has a single hull, or is 34 years old or older and has a double bottom or double sides; "(viii) after January 1, 2002, if the vessel is 28 years old or older and has a single hull, or is 33 years old or older and has a double bottom or double sides; "(ix) after January 1, 2003, if the vessel is 27 years old or older and has a single hull, or is 32 years old or older and has a double bottom or double sides; "(x) after January 1, 2004, if the vessel is 26 years old or older and has a single hull, or is 31 years old or older and has a double bottom or double sides; and "(xi) after January 1, 2005, if the vessel is 25 years old or older and has a single hull, or is 30 years old or older and has a double bottom or double sides; and

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--> "(C) in the case of a vessel of at least 30,000 gross tons— "(i) after January 1, 1995, if the vessel is 28 years old or older and has a single hull, or is 33 years old or older and has a double bottom or double sides; "(ii) after January 1, 1996, if the vessel is 27 years old or older and has a single hull, or is 32 years old or older and has a double bottom or double sides; "(iii) after January 1, 1997, if the vessel is 26 years old or older and has a single hull, or is 31 years old or older and has a double bottom or double sides: "(iv) after January 1, 1998, if the vessel is 25 years old or older and has a single hull, or is 30 years old or older and has a double bottom or double sides; "(v) after January 1, 1999, if the vessel is 24 years old or older and has a single hull, or is 29 years old or older and has a double bottom or double sides; and "(vi) after January 1, 2000, if the vessel is 23 years old or older and has a single hull, or is 28 years old or older and has a double bottom or double sides. "(4) Except as provided in subsection (b) of this section— "(A) a vessel that has a single hull may not operate after January 1, 2010; and "(B) a vessel that has a double bottom or double sides may not operate after January 1, 2015." (b) Rulemaking.—The Secretary shall, within 12 months after the date of the enactment of this Act, complete a rulemaking proceeding and issue a final rule to require that tank vessels over 5,000 gross tons affected by section 3703a of title 46, United States Code, as added by this section, comply until January 1, 2015, with structural and operational requirements that the Secretary determines will provide as substantial protection to the environment as is economically and technologically feasible. (c) Clerical Amendment.—The analysis for chapter 37 of title 46, United States Code, is amended by inserting after the item relating to section 3703 the following: "3703a. Tank Vessel Construction Standards." (d) Lightering Requirements.—Section 3715(a) of title 46, United States Code, is amended— (1) in paragraph (1), by striking "; and" and inserting a semicolon; (2) in paragraph (2), by striking the period and inserting "; and"; and (3) by adding at the end the following: "(3) the delivering and the receiving vessel had on board at the time

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--> of transfer, a certificate of financial responsibility as would have been required under section 1016 of the Oil Pollution Act of 1990, had the transfer taken place in a place subject to the jurisdiction of the United States; "(4) the delivering and the receiving vessel had on board at the time of transfer, evidence that each vessel is operating in compliance with section 311(j) of the Federal Water Pollution Control Act (33 U.S.C. 1321(j)); and "(5) the delivering and the receiving vessel are operating in compliance with section 3703a of this title." (e) Secretarial Studies— (1) Other Requirements.—Not later than 6 months after the date of enactment of this Act, the Secretary shall determine, based on recommendations from the National Academy of Sciences or other qualified organizations, whether other structural and operational tank vessel requirements will provide protection to the marine environment equal to or greater than that provided by double hulls, and shall report to the Congress that determination and recommendations for legislative action. (2) Review and Assessment.—The Secretary shall— (A) Periodically review recommendations from the National Academy of Sciences and other qualified organizations on methods for further increasing the environmental and operational safety of tank vessels; (B) not later than 5 years after the date of enactment of this Act, assess the impact of this section on the safety of the marine environment and the economic viability and operational makeup of the maritime oil transportation industry; and (C) report the results of the review and assessment to the Congress with recommendations for legislative or other action. (f) Vessel Financing.—Section 1104 of the Merchant Marine Act of 1936 (46 App. U.S. C. 1274) is amended— (1) by striking "Sec. 1104." and inserting "Sec. 1104A."; and (2) by inserting after section 1104A (as redesignated by paragraph (1)) the following: "Sec. 1104B. (a) Notwithstanding the provision of this title, except as provided in subsection (d) of this section, the Secretary, upon the terms the Secretary may prescribe, may guarantee or make a commitment to guarantee, payment of the principal of and interest on an obligation which aids in financing and refinancing, including reimbursement to an obligor for expenditures previously made, of a contract for construction or reconstruction of vessel or vessels owned by citizens of the United States which are designed and to be employed

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--> for commercial use in the coastwise or intercoastal trade or in foreign trade as defined in section 905 of this Act if— "(1) the construction or reconstruction by an applicant is made necessary to replace vessels the continued operation of which is denied by virtue of the imposition of a statutorily mandated change in standards for the operation of vessels, and where, as a matter of law, the applicant would otherwise be denied the right to continue operating vessels in the trades in which the applicant operated prior to the taking effect of the statutory or regulatory change; "(2) the applicant is presently engaged in transporting cargoes in vessels of the type and class that will be constructed or reconstructed under this section, and agrees to employ vessels constructed or reconstructed under this section as replacements only for vessels made obsolete by changes in operating standards imposed by statute; "(3) the capacity of the vessels to be constructed or reconstructed under this title will not increase the cargo carrying capacity of the vessels being replaced; "(4) the Secretary has not made a determination that the market demand for the vessel over its useful life will diminish so as to make the granting of the guarantee fiduciarily imprudent; and "(5) the Secretary has considered the provisions of section 1104A (d)(1)(A) (iii), (iv), and (v) of this title. "(b) For the purposes of this section— "(1) the maximum term for obligations guaranteed under this program may not exceed 25 years; "(2) obligations guaranteed may not exceed 75 percent of the actual cost or depreciated actual cost to the applicant for the construction or reconstruction of the vessel; and "(3) reconstruction cost obligations may not be guaranteed unless the vessel after reconstruction will have a useful life of at least 15 years. "(c) (1) The Secretary shall by rule require that the applicant provide adequate security against default. The Secretary may, in addition to any fees assessed under section 1104A(e), establish a Vessel Replacement Guarantee Fund into which shall be paid by obligors under this section— "(A) annual fees which may be an additional amount on the loan guarantee fee in section 1104A(e) not to exceed an additional 1 percent; or "(B) fees based on the amount of the obligation versus the percentage of the obligor's fleet being replaced by vessels constructed or reconstructed under this section. "(2) The Vessel Replacement guarantee Fund shall be a subaccount in the Federal Ship Financing Fund, and shall— "(A) be the depository for all moneys received by the Secretary un-

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--> der sections 1101 through 1107 of this title with respect to guarantee or commitments to guarantee made under this section; "(B) not include investigation fees payable under section 1104A(f) which shall be paid to the Federal Ship Financing Fund; and "(C) be the depository, whenever there shall be outstanding any notes or obligations issued by the Secretary under section 1105(d) with respect to the Vessel Replacement Guarantee Fund, for all moneys received by the Secretary under sections 1101 through 1107 from applicants under this section. "(d) The program created by this section shall, in addition to the requirements of this section, be subject to the provisions of sections 1101 through 1103; 1104A(b) (1), (4), (5), (6); 1104A(e); 1104A(f); Financing Fund is not liable for any guarantees or commitments to guarantee issued under this section."