46 U.S.C. § 53404 — Effectiveness of operating agreements

(a) In General. Subject to available appropriations, the Secretary may sign an operating agreement under this chapter starting in fiscal year 2022. Each agreement runs for only one fiscal year, but it can renew every year through fiscal year 2040 if Congress appropriates the money. (b) Vessels Under Charter to the United States. A vessel on long term charter to the United States is not eligible to be part of the Fleet. (c) Termination. (1) If a program participant materially fails to follow an agreement's terms, the Secretary must notify the participant and give a reasonable chance to fix the problem, then must terminate the agreement if the participant still does not comply. (2) If a program participant gives notice that it intends to end an agreement, at least 60 days before its chosen termination date, the agreement ends on that date. (d) Nonrenewal for Lack of Funds. If, by the first day of a fiscal year, Congress has not appropriated enough money for this chapter, the Secretary must tell the Senate and House Armed Services Committees, the Senate Commerce Committee, and the House Transportation and Infrastructure Committee that affected agreements will not be renewed for that year unless enough money is appropriated by the 60th day of the fiscal year. (e) Release of Vessels From Obligations. If that money still has not been appropriated by the 60th day of the fiscal year, then: (1) each covered vessel is released from any further duty under its operating agreement; (2) the program participant may register it under a foreign registry the Secretaries of Transportation and Defense accept, despite section 56101; and (3) if chapter 563 applies to the vessel after it is registered abroad, the vessel becomes available for the Secretary to requisition under that chapter.