United States: The Coast Guard And Maritime Transportation Act Of 2012

The Coast Guard and Maritime Transportation Act of 2012 (Pub. L. No. 112-213, December 20, 2012) (the " Act") was signed into law by President Obama on December 20, 2012. This legislation represents the first major piece of maritime legislation enacted by Congress since the Coast Guard Authorization Act of 2010 was enacted on October 15, 2010. It authorizes appropriations for the Coast Guard through fiscal year 2014 and for the Maritime Administration through fiscal year 2013. In total, the bill authorizes $17.34 billion for U.S. Coast Guard operations and $296 million for the national security aspects of the Maritime Administration. Specifically, the Act is divided into six titles as follows:

Title I: Authorization
Title II: Coast Guard
Title III: Shipping and Navigation
Title IV: Maritime Administration
Title V: Piracyn
Title VI: Marine Debris
Title VII: Miscellaneous

Following is a section-by-section analysis of the Act primarily focusing on the various provisions of the new law that affect commercial interests. Owners and operators of vessels and facilities and other maritime interests, in particular, should review this advisory to determine possible effects on their activities. The sections are noted by descriptive title only, or omitted completely if not deemed relevant to commercial interests, with a brief summary following each section. All references to Secretary are to the Secretary of Homeland Security unless specified otherwise.

TITLE I - AUTHORIZATION

Sec. 101. Coast Guard Authorization Levels: This section authorizes $17,338,706,000 for the Coast Guard for fiscal years 2013 and 2014 as follows:

• Operation and maintenance of the Coast Guard, of which $24,500,000 is authorized in each fiscal year to be derived from the Oil Spill Liability Trust Fund to carry out activities related to the Oil Pollution Act of 1990:
• • $6,882,645,000 for fiscal year 2013, and
  • $6,981,036,000 for fiscal year 2014.
• Acquisition, construction, rebuilding, and improvement of aids to navigation, shore and offshore facilities, vessels, and aircraft, of which $20,000,000 is authorized in each fiscal year to be derived from the Oil Spill Liability Trust Fund to carry out activities related to the Oil Pollution Act of 1990:
• • $1,545,312,000 for fiscal year 2013, and
  • $1,546,448,000 for fiscal year 2014.
• The Coast Guard Reserve program, including personnel and training costs, equipment, and services:
• • $138,111,000 for fiscal year 2013, and
  • $140,016,000 for fiscal year 2014.
• Environmental compliance and restoration of Coast Guard vessels, aircraft, and facilities (other than parts and equipment associated with operation and maintenance):
• • $16,699,000 for fiscal year 2013, and
  • $16,701,000 for fiscal year 2014.
• To the Commandant of the Coast Guard for research, development, test, and evaluation of technologies, materials, and human factors directly related to improving the performance of the Coast Guard's missions:
• • $19,848,000 for fiscal year 2013, and
  • $19,890,000 for fiscal year 2014.
• For the alteration or removal of bridges over navigable waters of the United States constituting obstructions to navigation, and related personnel and administrative costs:
• • $16,000,000 for fiscal year 2013, and
  • $16,000,000 for fiscal year 2014.

Sec. 102. Authorized Levels of Military Strength and Training: The Act authorizes end-of-year strength for active duty personnel of 47,000 for each of fiscal years 2013 and 2014. The Act also authorizes average military training student loads for each of fiscal years 2013 and 2014 as follows:

• Recruit and special training: 2,500 students
• Flight training: 165 student years
• Professional training in military and civilian institutions: 350 student years
• Officer acquisition: 1,200 student years.

TITLE II - COAST GUARD

Sec. 201. Interference with Coast Guard Transmissions: This section adds a provision to Title 14, U.S. Code, that an individual who knowingly and willfully operates a device with the intention of interfering with the broadcast or reception of a radio, microwave, or other signal (including GPS) transmitted, retransmitted, or augmented by the Coast Guard for the purpose of maritime safety is subject to civil and criminal penalties.

Sec. 202. Operation and Maintenance of Coast Guard Assets: This section allocates and vests in the Coast Guard authority (including programmatic budget authority) for the operation and maintenance of Coast Guard vessels, aircraft, systems, aids to navigation, infrastructure, and other assets or facilities.

Sec. 205. Policy on Sexual Harassment and Sexual Violence: This section requires that a policy on sexual harassment and sexual violence be prescribed for cadets and other Coast Guard Academy personnel, the conduct of an annual assessment to determine the effectiveness of the policy, and that related reports be filed with Congress.

Sec. 210. Major Acquisitions: This section requires the Secretary to submit to Congress a report on the status of all major acquisition programs. The term "major acquisition program" is defined as an ongoing acquisition undertaken by the Coast Guard with a life-cycle cost estimate of at least $300,000,000.

Sec. 211. Advance Procurement Funding; Domestic Source Priority: This section authorizes the Commandant to enter into contracts or orders for materials, storage, and planning in advance of a contract or order for construction of a vessel. It permits the Commandant to give priority to persons who manufacture materials, parts, and components in the United States.

Sec. 212. Minor Construction: This section prohibits the Coast Guard from expending more than $1,500,000 from amounts available for the operating expenses for minor construction and improvement projects at any one location. It also requires the Secretary to report to Congress on each project undertaken during the course of the preceding fiscal year for which the amount expended exceeded $500,000.

Sec. 213. Capital Investment Plan and Annual Lists of Projects to Congress: This section requires the Commandant to submit a five year Capital Investment Plan, a list of unfunded priorities to Congress at the time the Administration submits its budget request, and a prioritized list of projects eligible for environmental compliance and restoration funding.

Sec. 214. Coast Guard Aircraft Accident Investigations: This section sets forth guidelines for publicly disclosing, and limitations on consideration of, records and investigation reports concerning aircraft accidents under the Commandant's jurisdiction.

Sec. 217 Coast Guard Duties and Lead System Integrator Prohibition: This section makes technical revisions to various Coast Guard duties and organizational references. Further, it revises authorities relating to a prohibition on the use of lead system integrators and a Comptroller General report on former Coast Guard officials employed by Coast Guard contractors.

Sec. 219. Renewal of Temporary Early Retirement Authority: This section renews for fiscal years 2013 through 2018, the authority of the Secretary to offer early retirement to a limited number of Coast Guard personnel.

Sec. 220. Response Boat-Medium Procurement: This section requires the Coast Guard to maintain the schedule and requirements for the total acquisition of 180 boats until the Commandant provides Congress with adequate justification to reduce the number of boats.

Sec. 221. National Security Cutters: This section specifies that the Secretary may enter into multiyear contracts for the procurement of National Security Cutters, and prohibits the Commandant from certifying a sixth National Security Cutter as Ready for Operations until he selects a final design for the Offshore Patrol Cutter and submits a plan on how the National Security Cutters will meet current operational requirements.

Sec. 222. Coast Guard Polar Icebreakers: This section requires the Secretary to conduct a business case analysis of the costs of reactivating and extending the life of the Coast Guard's Polar Sea icebreaker to perform high latitude mission needs as compared with other options to provide icebreaking services as part of a strategy to maintain icebreaking services. Included also is a requirement for a service life extension plan if determined to be cost-effective to reactivate the Polar Sea or if it is determined to not be cost effective a bridging strategy for maintaining icebreaking services until at least September 30, 2022.

NOTE: Sections omitted from Title II address limitations on expenditures; foreign national emoluments; commissioned officer appointment dates; personnel selection board oaths, errors, and corrections; involuntary administrative separations; Coast Guard auxiliary enrollment; miscellaneous repeals; acquisition workforce hiring; and early retirement.

TITLE III - SHIPPING AND NAVIGATION

Sec. 301. Identification of Actions to Enable Qualified United States Flag Capacity to Meet National Defense Requirements: This section requires the Maritime Administrator to identify any actions that could be taken to enable qualified United States flag capacity to meet national defense requirements before any Jones Act waiver of the use of a United States flag vessel is granted. It also requires Congress to be notified of any waiver and basis for the waiver.

Sec. 302. Liability Limit for Non-federal VTS: This section shields an entity operating a non-federal vessel traffic information or advisory service pursuant to a written agreement with the Coast Guard, and any pilot acting on behalf of that entity, from liability for damages caused by or related to information, advice, or communication assistance unless the acts or omissions constitute gross negligence or willful misconduct.

Sec. 303. Survival Craft: This section directs the Commandant to report to Congress on the carriage of survival craft that ensures no part of an individual is immersed in water.

Sec. 304. State Sponsor of Terrorism Sanctions for Foreign Classification Societies: This section requires, before the Secretary may delegate to a foreign classification society the authority to conduct examinations and approve plans for issuing certificates of inspection, compliance, and other documents regarding certain vessels, a determination by the Secretary of State that the class society does not provide comparable services in or for a state sponsor of terrorism. It also requires the revocation of a delegation if the Secretary of State makes this determination.

Sec. 305. Dockside Examinations and Certifications: This section requires the Secretary to examine at dockside certain uninspected fishing industry vessels at least once every five years (the current requirement is every two years) and that the first dockside examination shall occur not later than October 15, 2015. It also repeals the requirement for a publicly accessible database on individuals in charge of a vessel who have received a certificate of training (the current requirement is that this database be publicly available). It also extends the dates on which certain fishing vessels must be certified to meet an alternative safety compliance program to be developed.

Sec. 306. Authority to Extend the Duration of Medical Certificates: This section extends the duration of medical certificates to up to one year if the Secretary determines that the extension is required to enable the Coast Guard to eliminate a backlog in processing applications, or in response to a national emergency or natural disaster.

Sec. 307. Clarification of Restrictions on American Fisheries Act Vessels: This section modifies the eligibility of certain fishing vessels to participate in the non-pollock trawl ground fish fisheries in the Northwest Pacific under the American Fisheries Act.

Sec. 308. Investigations by Secretary: This section allows the Secretary to conduct investigations and inspections regarding compliance with vessel documentation requirements, including the authority to issue a subpoena to require the attendance of a witness or the production of documents.

Sec. 309. Vessel Documentation Penalties: This section increases the civil penalty for certain documentation violations from $10,000 to $15,000, and establishes a civil penalty of the greater of $25,000 or twice the vessel's charter rate for certain violations involving mobile offshore drilling units.

Sec. 310. United States Committee on the Marine Transportation System: This section legislatively establishes the Committee on the Marine Transportation System (which is currently informally operating within the Administration). It also requires the Committee to provide Congress with a strategy on ways to improve the Marine Transportation System every five years.

Sec. 312. Deepwater Ports: This section amends the Deepwater Port Act (DWPA) to authorize exports of oil and LNG. Currently the DWPA is limited to imports of oil and LNG.

NOTE: Sections omitted from Title III address certain cross reference corrections in Title 46, U.S. Code.

TITLE IV - MARITIME ADMINISTRATION

Sec. 401. Short Title: This section names Title IV as the "Maritime Administration Authorization Act for Fiscal Year 2013."

Sec. 402. Authorization of Appropriations For National Security Aspects of the Merchant Marine for Fiscal Year 2013: This section authorizes $295,765,000 for the national security aspects of the Maritime Administration for fiscal year 2013:

• United States Merchant Marine Academy operations: $77,253,000, of which $67,253,000 shall remain available until expended for Academy operations, and $10,000,000 shall remain available until expended for capital asset management at the Academy;
• State maritime academies support expenses: $16,045,000, of which $2,400,000 shall remain available until expended for student incentive payments; $2,545,000 shall remain available until expended for direct payments to such academies; and $11,100,000 shall remain available until expended for maintenance and repair of State maritime academy training vessels;
• Expenses necessary to dispose of vessels in the National Defense Reserve Fleet: $12,717,000;
• Expenses to maintain and preserve a U.S.-flag merchant marine to serve the national security needs of the United States: $186,000,000; and
• Cost of Title XI loan guarantees: $3,750,000, for administrative expenses

Sec. 403. Maritime Environmental and Technical Assistance: This section allows the Secretary of Transportation to engage in the environmental study, research, development, assessment and deployment of emerging marine technologies and practices related to the marine transportation system through the use of public vessels under the control of the Maritime Administration or private U.S.-flag vessels, and through partnerships with academic, public, private, and nongovernmental entities and facilities.

Sec. 404. Property for Instruction Purposes: This section clarifies that the Secretary of Transportation may donate certain excess property, including vessels, to state maritime academies.

Sec. 405. Short Sea Shipping Amendments: This section expands the Department of Transportation's short sea transportation program (currently, a program to mitigate landside congestion) to include the promotion of short sea transportation and use of U.S.-flag vessels. Permits (currently requires) the development of certain strategies to encourage short sea shipping.

Sec. 406-408. Transfer of Vessels to the National Defense Reserve Fleet: These sections clarify that federal government-owned vessels over 1,500 gross tons or vessels determined to be appropriate by the Secretary of Transportation may be eligible for transfer to the National Defense Reserve Fleet, and make technical and conforming amendments in Title 46, U.S. Code.

Sec. 409. Maritime Administration Mission Statement: This section specifies that the mission of the Maritime Administration is to foster, promote, and develop the domestic merchant maritime industry of the United States.

Sec. 410. Amendments Relating to the National Defense Reserve Fleet: This section clarifies that any vessels participating in the National Defense Reserve Fleet must be activated for sea trials periodically, available for activation within five days, and located at ports of embarkation.

Sec. 411. Requirement for Barge Design: This section requires the Maritime Administrator to complete the design for a containerized, articulated barge within 270 days of enactment.

Sec. 412. Container-on-Barge Transportation: This section requires the Maritime Administrator to submit an assessment on the potential for using container-on-barge transportation in short sea transportation to Congress within 180 days of enactment.

Sec. 413. Department of Defense National Strategic Ports Study and Comptroller General Studies and Reports on Strategic Ports: This section expresses the sense of Congress that the Secretary of Defense should expedite completion of the study of U.S. strategic ports called for in the conference report accompanying the National Defense Authorization Act for Fiscal Year 2012 so that it can be submitted to Congress before July 1, 2013. It also directs the Comptroller General to assess such report and conduct a subsequent study of Department of Defense (DOD) programs and efforts related to the state of strategic ports with respect to DOD's operational and readiness requirements. Finally, it defines "strategic port" as a U.S. port designated by the Secretary of Defense as a significant transportation hub important to the readiness and cargo throughput capacity of DOD.

Sec. 414. Maritime Workforce Study: This section requires the Comptroller General to conduct a study on the training needs of the maritime workforce within one year after enactment.

Sec. 415. Maritime Administration Vessel Recycling Contract Award Practices: This section requires the Comptroller General to conduct an assessment of the source selection procedures and practices used to award the Maritime Administration's National Defense Reserve Fleet vessel recycling contracts.

NOTE: Sections omitted from Title IV address the short title of Title IV and clarification of a section caption.

TITLE V - PIRACY

Sec. 501. Short Title: This section names Title V as the "Piracy Suppression Act of 2012."

Sec. 502. Training for Use of Force Against Piracy: This section requires the Secretary of Transportation to certify, within 270 days of enactment, a training curriculum for United States mariners on the use of force against pirates.

Sec. 503. Security of Government-Impelled Cargo: This section requires the Secretary of Transportation to direct each department or agency (except DOD), when responsible for the carriage of equipment, materials or commodities, to provide armed personnel aboard vessels of the United States if the vessels are transiting high-risk waters to ensure the safety of these vessels, contents, and crewmembers, including reimbursing vessel owners and operators for the cost associated with this program, subject to available appropriations.

Sec. 504. Actions Taken to Protect Foreign-Flagged Vessels from Piracy: This section would require the Secretary of Defense to provide Congress, within 180 days of enactment, with a report on actions taken by the Secretary to protect foreign-flag vessels from acts of piracy on the high seas.

TITLE VI - MARINE DEBRIS

Sec. 601. Short Title: This section names Title VI as the "Marine Debris Act Amendments of 2012."

Sec. 602. Act Renamed and Marine Debris Defined: This section renames the Marine Debris Research, Prevention, and Reduction Act as the Marine Debris Act.

Sec. 603. Purpose: This section states that the purpose of the Marine Debris Act "is to address the adverse impacts of marine debris on the United States economy, the marine environment, and navigation safety through the identification, determination of sources, assessment, prevention, reduction, and removal of debris."

Sec. 604. NOAA Marine Debris Program: This section requires the Administrator of the National Oceanic and Atmospheric Administration (NOAA), acting through the Marine Debris Program, and subject to the availability of appropriations, to identify, determine sources of, assess, prevent, reduce and remove marine debris with a focus on marine debris posing a threat to living marine resources and navigation safety; provide national and regional coordination to assist States, Indian tribes, and regional organizations in the identification, determination of sources, assessment prevention, reduction and removal of marine debris; undertake efforts to reduce the adverse impacts of lost and discarded fishing gear on living marine resources and navigation safety; undertake outreach and education activities for the public and other stakeholders; and develop interagency plans for timely response to events determined to be severe marine debris events.

Sec. 606. Coordination and Reports: This section replaces provisions of the Marine Debris Program concerning interagency coordination with provisions establishing the Interagency Marine Debris Coordinating Committee and requires the Committee to submit biennial progress reports.

Sec. 608. Marine Debris Defined: This section defines "marine debris" as any persistent solid material that is manufactured or processed and directly or indirectly, intentionally or unintentionally, disposed of or abandoned into the marine environment or the Great Lakes.

Sec. 609. Severe Marine Debris Event Determination: This section requires the Administrator of NOAA to determine, within 30 days of enactment, whether the March 2011 Tohoku earthquake, and subsequent tsunami, and Hurricane Sandy caused a severe marine debris event.

NOTE: Sections omitted from Title VI repeal obsolete provisions and expand confidentiality of submitted information requirements to all information submitted.

TITLE VII - MISCELLANEOUS

Sec. 701 Distant Water Tuna Fleet: This section extends the current officer manning exemption (which would have expired on December 31, 2011), except for the master, for certain U.S.-flag purse seine fishing vessels fishing exclusively for highly migratory species in the treaty area under a fishing license issued pursuant to the 1987 Treaty on Fisheries Between the Governments of Certain Pacific Islands States and the Government of the United States of America, through the date the treaty ceases if no U.S. citizen personnel are readily available to fill any vacancy. It also modifies certain credentialing requirements for such officers.

Sec. 702. Technical Corrections: This section adds a requirement for the Commandant to make a study of certain bridges over navigable waters with a channel depth of 25 feet or greater, and clarifies a prior vessel waiver.

Sec. 703. Extension of EPA Regulation Moratorium: This section extends the moratorium for fishing vessels and commercial vessels less than 79 feet from the Environmental Protection Agency's (EPA) Vessel General Permit, which regulates of discharges incidental to the normal operation of a vessel through December 18, 2014.

Sec. 704. Notice of Arrival Exception: This section removes the notice of arrival requirement required under the Security and Accountability For Every Port Act of 2006 for U.S.-flag vessels operating on the Outer Continental Shelf unless those vessels arrive from a foreign port or place. Current requirements applying to foreign-flag vessels remain.

Sec. 705. Waivers: This section authorizes the Secretary to issue a fishery endorsement to the Texas Star Casino under limited circumstances and clarifies that the passenger vessel Ranger III does not need to comply with certain tank vessel construction standards while owned by the National Park Service.

Sec. 706. National Response Center Notification Requirements: This section clarifies that the Ohio River Valley Water Sanitation Commission is a government agency for the purposes of receiving reports of oil and hazardous material spills into the Ohio River.

Sec. 707. Vessel Determinations: This section establishes the build date for two vessels as the date they were rebuilt if certain conditions are met.

Sec. 708. Mille Lacs Lake, Minnesota: This section clarifies that certain vessels operating on Mille Lacs Lake, Minnesota, are only subject to state safety standards.

Sec. 709. Transportation Worker Identification Credential Process Reform: This section requires the Secretary to, within 270 days of enactment, reform the process for Transportation Worker Identification Credential enrollment, activation, issuance, and renewal to require, in total, not more than one in-person visit to a designated enrollment center except in cases in which there are extenuating circumstances.

Sec. 710. Investment Amount: This section requires the Secretary of the Treasury to adjust the investment amount of certain funds in the Oil Spill Liability Trust Fund.

Sec. 711. Integrated Cross-Border Maritime Law Enforcement Operations Between the United States and Canada: This section authorizes the Secretary to establish an Integrated Cross-Border Maritime Law Enforcement Operations Program to coordinate the maritime security operations of the United States and Canada to strengthen border security and detect, prevent, suppress, investigate, and respond to terrorism and violations of law related to border security.

Sec. 712. Bridge Permits: This section authorizes the Secretary to receive voluntary services from bridge owners to expedite the issuance of bridge construction and alteration permits. It also directs the Secretary to complete determinations on any required approval for issuance of any permits under its jurisdiction related to the construction or alteration of a bridge over the Kill Van Kull (a tidal strait connecting Bayonne, New Jersey, and Staten Island, New York) consistent with Executive Order 13604 of March 22, 2012.

Sec. 713. Tonnage of Aqueos Acadian: This section allows the Secretary to consider the current tonnage measurements for the vessel Aqueos Acadian to be valid until May 2, 2014.

Sec. 714. Navigability Determination: This section requires the Commandant to submit to Congress, within 180 days of enactment, an assessment of the impact of additional regulatory requirements imposed on passenger vessels operating on the Ringo Cocke Canal in Louisiana as a result of the Coast Guard's navigability determination for the Canal dated March 25, 2010. It also prohibits the Commandant from enforcing the additional regulatory requirements until 180 days after the submittal of the assessment report to Congress.

Sec. 715. Coast Guard Housing: This section requires the Commandant to submit to Congress the Coast Guard's National Housing Assessment within 30 days of enactment.

Sec. 716. Assessment of Needs for Additional Coast Guard Presence in High-Latitude Regions: This section requires the Secretary to submit to Congress, within 180 days of enactment, an assessment of the need for additional Coast Guard prevention and response capability in the high-latitude regions.

Sec. 717. Potential Place of Refuge: This section requires the Commandant to consult with appropriate federal agencies and state and local interests, within one year of enactment, to determine what improvements, if any, are necessary to designate existing ice-free facilities in the Central Bering Sea as a fully functional, year-round Potential Place of Refuge.

Sec. 718. Merchant Mariner Medical Evaluation Program: This section requires the Commandant to report to Congress, within 180 days of enactment, an assessment of the Coast Guard National Maritime Center's merchant mariner medical evaluation program and alternatives to the program.

Sec. 719. Foreign Shipyard Work Impact: This section directs the Secretary to provide Congress, within 270 days of enactment, an assessment of: (1) the loss of U.S. shipyard jobs and industrial base expertise as a result of rebuild, conversion, and double-hull work on U.S.-flag vessels eligible to engage in the coastwise trade being performed in foreign shipyards; (2) enforcement of the Coast Guard's foreign rebuild determination regulations; and (3) recommendations for improving transparency in the Coast Guard's foreign rebuild determination process.

Sec. 720. Impediments to the U.S.-Flag Registry: This section requires the Commandant to submit to Congress, within 180 days of enactment, an assessment of factors under the authority of the Coast Guard that impact the ability of U.S.-flag vessels to effectively compete in international transportation markets.

Sec. 721. Arctic Deepwater Seaport: This section requires the Commandant to conduct a study, within one year after enactment, on the feasibility of establishing a deepwater seaport in the Arctic to protect and advance strategic United States interests within the Arctic region.

Sec. 722. Risk Assessment of Transporting Canadian Oil Sands: This section requires the Commandant to assess the increased vessel traffic in the Salish Sea (including Puget Sound, the Strait of Georgia, Haro Strait, Rosario Strait, and the Strait of Juan de Fuca) that may occur from the transport of Canadian oil sands, and submit the assessment to Congress, within 180 days of enactment.

Notice: The purpose of this Maritime Developments Advisory is to identify select developments that may be of interest to readers. The information contained herein is abridged and summarized from various sources, the accuracy and completeness of which cannot be assured. The Advisory should not be construed as legal advice or opinion, and is not a substitute for the advice of counsel.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.