54 U.S.C. § 308704 — Funding

(a) Availability of Funds From Sale and Scrapping of Obsolete Vessels. (1) In general. Despite any other law, money credited in a fiscal year to the Vessel Operations Revolving Fund under section 50301(a) of title 46 from selling obsolete National Defense Reserve Fleet vessels scrapped or sold under sections 57102, 57103, or 57104 of title 46 remains available until spent as follows: (A) 50 percent is available to the Maritime Administration Administrator for federally authorized acquisition, maintenance, repair, reconditioning, or improvement of Reserve Fleet vessels. (B) 25 percent is available to that Administrator to pay or reimburse State maritime academies or the United States Merchant Marine Academy for facility and training-ship maintenance, repair, and modernization, and for simulators and fuel. (C) The remainder is available to the Secretary^* for the Program^* under subsection (b). (2) Applicability. Paragraph (1) does not apply to amounts credited before July 1, 1994.

(b) Use of Amounts for Program. (1) Allocation. (A) Unless subparagraph (B) or paragraph (2) applies, each fiscal year’s Program money under subsection (a)(1)(C) is divided equally: (i) 50 percent for grants under section 308703(b); and (ii) 50 percent for grants under section 308703(c). (B) Set aside. (i) At least 25 percent of that yearly Program money must preserve and present to the public the Maritime Administration’s maritime heritage property. (ii) The Secretary may provide that money by direct transfers to the Maritime Administration. (iii) The Maritime Administrator may waive clause (i) for a fiscal year. (2) Administrative expenses. (A) No more than 15 percent or $500,000, whichever is less, of that fiscal year’s Program money may pay administration expenses. (B) Half of the allowed amount goes to the National Trust^* for administering section 308703(b) grants, and half goes as the Secretary considers appropriate to the Service^* and participating State Historic Preservation Officers.

(c) Disposal of Vessels. (1) Requirement. The Secretary of Transportation must sell, or buy disposal services for, all vessels in paragraph (2). The Secretary must (A) follow a priority system^* that includes requirements that the Maritime Administration (i) dispose of all deteriorated high-priority ships available for disposal within 12 months after designation, and (ii) give priority to vessels posing the greatest environmental danger or costing the most to maintain; (B) use the method giving the Federal Government the best value, unless getting that value would require towing that poses a serious environmental threat; and (C) follow the Department of Transportation disposal plan and sections 57102 through 57104 of title 46. (2) Description of vessels. These are Reserve Fleet vessels after July 1, 1994 that (A) are not assigned to the Fleet’s Ready Reserve Force component and (B) are not specifically authorized or required by statute for a particular use.

(d) Treatment of Available Amounts. Amounts available under this section are not counted in determining money available to the Department of the Interior.