Page:United States Statutes at Large Volume 117.djvu/1828

 PUBLIC LAW 108–136—NOV. 24, 2003

117 STAT. 1809

fleet vessel under the priority under subsection (c)(1)(B) only from a person that has authority to enter into an operating agreement for the vessel with respect to the full term of the operating agreement. ‘‘(B) VESSEL UNDER DEMISE CHARTER.—For purposes of subparagraph (A), in the case of a vessel that is subject to a demise charter that terminates by its terms on September 30, 2005 (without giving effect to any extension provided therein for completion of a voyage or to effect the actual redelivery of the vessel), or that is terminable at will by the owner of the vessel after such date, only the owner of the vessel shall be treated as having the authority referred to in paragraph (1). ‘‘(C) VESSEL OWNED BY UNITED STATES CITIZEN TRUST.— For purposes of subparagraph (B), in the case of a vessel owned by a United States citizen trust, the term ‘owner of the vessel’ includes a beneficial owner of the vessel with respect to such trust. ‘‘(c) PRIORITY FOR AWARDING AGREEMENTS.— ‘‘(1) IN GENERAL.—Subject to the availability of appropriations, the Secretary shall enter into operating agreements according to the following priority: ‘‘(A) NEW TANK VESSELS.—First, for any tank vessel that— ‘‘(i) is constructed in the United States after the effective date of this chapter; ‘‘(ii) is eligible to be included in the Fleet under section 53102(b); and ‘‘(iii) during the period of an operating agreement under this chapter that applies to the vessel, will be owned and operated by one or more persons that are citizens of the United States under section 2 of the Shipping Act, 1916 (46 U.S.C. App. 802), except that the Secretary shall not enter into operating agreements under this subparagraph for more than 5 such vessels. ‘‘(B) PARTICIPATING FLEET VESSELS.—Second, to the extent amounts are available after applying subparagraphs (A), for any participating fleet vessel, except that the Secretary shall not enter into operating agreements under this subparagraph for more than 47 vessels. ‘‘(C) CERTAIN VESSELS OPERATED BY SECTION 2 CITIZENS.—Third, to the extent amounts are available after applying subparagraphs (A) and (B), for any other vessel that is eligible to be included in the Fleet under section 53102(b), and that, during the period of an operating agreement under this chapter that applies to the vessel, will be— ‘‘(i) owned and operated by one or more persons that are citizens of the United States under section 2 of the Shipping Act, 1916 (46 U.S.C. App. 802); or ‘‘(ii) owned by a person that is eligible to document the vessel under chapter 121 of this title, and operated by a person that is a citizen of the United States under section 2 of the Shipping Act, 1916 (46 U.S.C. App. 802).

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