Overview

Title

To promote and recruit the United States maritime industry workforce, and for other purposes.

ELI5 AI

The MARINERS Act is like a big plan to make more people want to work in the U.S. shipping and shipbuilding jobs, and to help keep the country's ships strong and safe. It wants to spend money on ads to get workers, help small shipyards, and make sure U.S.-flagged ships get lots of chances to carry goods across the seas.

Summary AI

H.R. 8515, also known as the "Maritime Advantage Results In National Economic Resiliency and Security Act" or the "MARINERS Act," aims to bolster the United States maritime industry by addressing workforce shortages and enhancing shipbuilding and shipping capabilities. The bill proposes various initiatives including funding for marketing campaigns to recruit more workers, creating a national oversight for maritime affairs, and setting strategies for naval rearming capabilities. It also seeks to improve infrastructure, provide tax incentives for shipping companies, and prioritize the use of U.S.-flagged vessels in international trade. Additionally, the bill includes plans for innovation in ship energy technologies and aims to strengthen national security through these maritime enhancements.

Published

2024-05-22
Congress: 118
Session: 2
Chamber: HOUSE
Status: Introduced in House
Date: 2024-05-22
Package ID: BILLS-118hr8515ih

Bill Statistics

Size

Sections:
36
Words:
6,589
Pages:
32
Sentences:
136

Language

Nouns: 2,120
Verbs: 494
Adjectives: 362
Adverbs: 51
Numbers: 271
Entities: 440

Complexity

Average Token Length:
4.57
Average Sentence Length:
48.45
Token Entropy:
5.45
Readability (ARI):
27.85

AnalysisAI

General Summary of the Bill

The proposed legislation, known as the "Maritime Advantage Results In National Economic Resiliency and Security Act" or the "MARINERS Act," is designed to strengthen the maritime industry in the United States. This bill seeks to address workforce shortages, enhance maritime security, and bolster the capabilities of the U.S. merchant marine and shipbuilding industries by providing funding for recruitment and marketing campaigns. Additionally, it aims to ensure that U.S.-flagged vessels play a prominent role in international trade and shipping operations, and it sets out guidelines for maintaining a fleet of ships critical to national defense. The bill requires numerous reports and assessments to be conducted related to maritime capabilities and infrastructure, as well as proposals to increase funding for small shipyards.

Summary of Significant Issues

Several significant issues arise within the bill. First, there appears to be a lack of specificity regarding key roles and responsibilities, particularly concerning the appointment of a Special Adviser to the President to oversee maritime policy. The absence of clear qualifications and accountability measures may hinder effective implementation.

Secondly, there are concerns about potential wasteful spending due to vague definitions and lack of detailed funding allocation in sections aiming to address workforce shortages and promote industry growth. This vagueness also extends to adjustments in cargo preferences and privileging the U.S.-flagged fleet, which could result in international trade friction.

Further issues include the assignment of vessels to the Ready Reserve Force lacking competitive evaluation procedures and undefined terms like "just compensation" for vessel owners, potentially causing disputes.

The bill also mandates numerous reports from different government departments without clear accountability, which may result in delays and inefficiency. Additionally, there is an increase in funding for small shipyards without specific spending guidelines, posing a risk of misallocation of resources.

Impact on the Public

If enacted, the MARINERS Act could potentially enhance the infrastructure and workforce of the U.S. maritime sector, contributing positively to national security and economic growth. However, the broad and sometimes vague language throughout the bill may lead to inefficiencies and ambiguous policy implementation, which could affect how effectively these objectives are met. The public might bear the financial burden of increased spending without clear outcomes, particularly if wasteful practices arise from the lack of defined evaluation metrics.

Impact on Specific Stakeholders

For stakeholders within the maritime industry, such as shipbuilders, mariners, and related workforce entities, the bill offers significant opportunities. It proposes funding for recruiting campaigns, which could address labor shortages and support industry growth. However, the lack of detailed allocations and definitions may result in uneven distribution of benefits across the industry, with some organizations potentially being favored over others.

For international stakeholders, particularly trading partners, the provisions related to privileging U.S.-flagged ships and altering cargo preferences could create friction. There is a risk of conflicts arising with trade agreements or perceived protectionism, which might strain diplomatic and trade relations globally.

In summary, while the MARINERS Act presents promising initiatives to revamp the U.S. maritime sector, careful consideration and revision may be necessary to address the highlighted issues and ensure its effective and fair implementation.

Financial Assessment

The MARINERS Act, formally known as H.R. 8515, seeks to enhance the United States maritime industry with a focus on workforce recruitment, shipbuilding, and shipping capabilities. Financial references within the bill indicate several allocations and appropriations to support these objectives.

Spending and Appropriations

The bill makes several proposals regarding financial commitments:

  • Maritime Security Program: Section 11 allocates $8,500,000 annually for fiscal years 2024 through 2035. This funding is intended to support maritime security, crucial for maintaining a strong maritime force for national defense.

  • Targeted Campaigns: Section 20 authorizes $10,000,000 for a campaign to promote employment in the United States Merchant Marine and $5,000,000 for a similar campaign aimed at the United States shipbuilding industry. These campaigns are meant to attract skilled workers to these sectors, thereby addressing workforce shortages.

  • Small Shipyards: The bill significantly increases funding for small shipyards, with Section 19 amending previous amounts to $100,000,000 for fiscal year 2025, up from $20,000,000.

  • Loan Guarantee Program: Section 21 permits the Department of Transportation to expend $103,020,000 for loan guarantees and administrative expenses related to maintaining the United States Merchant Marine. This includes $100,000,000 designated for the cost of loan guarantees.

Issues Related to Financial Allocations

The financial allocations touched upon in several sections relate directly to concerns identified in the issues list:

  • Oversight and Effectiveness: Section 4 proposes the creation of a Special Adviser to the President for maritime policy without specific criteria for their appointment. This raises questions about whether funds for this position will be spent effectively to enhance maritime policy oversight.

  • Unclear Funding Sources: Sections 2 and 3 outline various objectives to address workforce shortages and industry growth but lack detailed information on funding sources and allocation. This vagueness could result in inefficient or excessive spending without precise measures of success.

  • Protectionism and Trade Concerns: Sections 9 and 10 propose preferential treatment for U.S.-flagged vessels, potentially increasing cargo preference quotas. These measures could lead to higher costs and international tensions, especially if perceived as protectionist.

  • Vessel Assignment and Compensation: Section 6 involves assigning vessels to the Ready Reserve Force, yet does not specify the evaluation process for this allocation or clearly define "just compensation," potentially leading to disputes about fairness and financial efficacy.

  • Increased Funding Without Criteria: The augmentation from $20 million to $100 million for small shipyards in Section 19 lacks specific purposes or criteria, thus magnifying the risk of inefficient fund use or misallocation.

Conclusion

While the MARINERS Act's funding allocations highlight a robust effort to support and grow the maritime industry, it also presents challenges regarding specificity and oversight. Addressing these issues is essential to ensuring that appropriated funds accomplish their intended economic and security objectives effectively and responsibly.

Issues

  • The lack of specific criteria and accountability measures for the 'Special Adviser to the President' in Section 4 could lead to the appointment of individuals without necessary maritime expertise, impacting the effectiveness of national maritime policy oversight and implementation.

  • Section 2 and Section 3 lack specificity in terms of funding sources and allocation, raising concerns about potential excessive or wasteful spending to address the workforce shortage and promote maritime industry growth without clear outcome measures.

  • Sections 9 and 10 introduce preferential treatment for the United States-flagged fleet and increased cargo preference from 50% to 75%. This could lead to international trade tensions or conflicts with existing trade agreements due to perceived protectionism.

  • Section 6 and Section 56701 involve the assignment of vessels to the Ready Reserve Force without competitive evaluation, potentially limiting cost-effective or more suitable alternatives, and lack a clear definition of 'just compensation,' which may lead to disputes over fairness.

  • In Sections 90101 through 90111, the broad and vague definitions of terms such as 'sufficient and privileged sealift capability,' 'critical shipbuilding infrastructure,' and 'privileged in regulation, taxation, fees, and policy' may lead to inconsistent interpretations and policy implementations, potentially affecting international obligations and budget priorities.

  • Section 8 requires reports across multiple departments without clear accountability, leading to potential inefficiencies or delays, particularly concerning strategy for de-risking the maritime domain and capital flow restriction to Chinese maritime industries.

  • The amendment in Section 19, raising funding from $20 million to $100 million for small shipyards without specifying criteria or purpose, increases the risk of inefficiencies or misuse of funds.

  • Section 90103 does not specify how the prioritization of sealift capabilities will be evaluated or monitored during wartime or crises, potentially impacting strategic decision-making and transparency.

  • Section 12 lacks specific criteria or defined scope for developing small nuclear reactor technology, which could result in uncontrolled spending and challenges in aligning with renewable energy initiatives.

Sections

Sections are presented as they are annotated in the original legislative text. Any missing headers, numbers, or non-consecutive order is due to the original text.

1. Short title Read Opens in new tab

Summary AI

The first section of the bill states that the official name for the Act is the “Maritime Advantage Results In National Economic Resiliency and Security Act” or simply the “MARINERS Act.”

2. Findings Read Opens in new tab

Summary AI

Congress emphasizes the importance of strategic sealift, including civilian and government ships and mariners, for national security and the economy. They highlight the need for investment and planning to maintain these resources, ensuring the United States can respond to threats and work with allies when necessary.

3. Purpose Read Opens in new tab

Summary AI

The purpose of this Act is to tackle the shortage of maritime workers and boost the U.S. merchant marine and shipbuilding industries through funding for marketing and recruitment efforts, thereby enhancing national security and maritime readiness. It also aims to strengthen the position of U.S. shipping and naval power both domestically and globally by ensuring access to international waters without interference from competitors.

4. Establishing national oversight Read Opens in new tab

Summary AI

The President is required to appoint a Special Adviser within two years to coordinate national maritime affairs and policy, and this adviser will lead a National Maritime Council responsible for managing the National Maritime Strategy.

5. Strategy on development of naval rearm at sea capability Read Opens in new tab

Summary AI

The section requires the Secretary of the Navy to submit a strategy to Congress within 180 days to develop the Navy's ability to reload ships at sea using mobile equipment. This strategy must detail plans and timelines for technology development, cost estimates, collaboration with allies, potentially alternative solutions, and any other relevant information deemed necessary. Additionally, a briefing on this strategy must be provided within 90 days.

6. Vessels constructed with construction-differential Read Opens in new tab

Summary AI

The section outlines the requirements for vessels constructed with a construction-differential under the Merchant Marine Act of 1936. It mandates that such vessels be assigned to the Ready Reserve Force for national emergencies and requires owners to surrender control to the U.S. government when necessary, with compensation provided. Additionally, it specifies that the vessels must meet commercial and military standards and be built using mature, repeatable designs.

56701. Vessels constructed with construction-differential Read Opens in new tab

Summary AI

The section mandates that any vessels built with a construction-differential after this law is enacted must join the Ready Reserve Force, managed in consultation with the Navy. It requires an agreement with a vessel construction manager to ensure these vessels meet certain standards and grants the U.S. control of the vessels during national emergencies, compensating the owners fairly for their use.

7. Conforming amendments Read Opens in new tab

Summary AI

The section outlines various amendments to the Merchant Marine Act, 1936, and parts of title 46 of the United States Code by removing the word "subsidy" and replacing "construction-differential subsidies" with "construction-differentials" across multiple sections and titles.

8. Reports Read Opens in new tab

Summary AI

The section requires several reports to be submitted to Congress within 180 days of the Act's enactment. These reports include plans for improving the National Defense Reserve Fleet, incentives for shipping companies, strategies for reducing maritime risks from China, ways to restrict U.S. capital flow to Chinese maritime industries, and potential tax incentives for using U.S.-flagged ships and ports.

9. Privileging United States-flagged fleet Read Opens in new tab

Summary AI

The section outlines that within 180 days, federal agencies involved in maritime shipping must study and potentially promote the use of United States-flagged ships for international trade. It also requires these agencies to report to Congress on any rule changes and future needs after implementing study recommendations, and mandates a study on creating a Maritime Trust Fund to support U.S. maritime industries through fees on imports and exports.

10. Cargo preferences Read Opens in new tab

Summary AI

The section amends the United States Code to increase the percentage from 50 to 75 in a subsection related to cargo preferences. It also introduces a provision for waivers where the President or specific Secretaries can temporarily waive certain requirements during emergencies if it's determined that there aren't enough qualified U.S. flag vessels available at reasonable rates.

11. Payments for Maritime Security Program Read Opens in new tab

Summary AI

The section amends U.S. Code to authorize $8.5 million annually for the Maritime Security Program from 2024 to 2035. It also mandates that the U.S. Transportation Command, with other authorities, test and report on the control of the Maritime Security Fleet in emergencies, with biannual drills and briefings to Congress.

Money References

  • (a) In general.—Section 53106 of title 46, United States Code, is amended— (1) in subparagraph (B) by adding “and” at the end; and (2) by striking subparagraphs (C) through (F) and inserting the following: “(C) $8,500,000 for each of fiscal years 2024 through 2035.”. (b) Maritime Security Fleet.

12. Innovation incubator program Read Opens in new tab

Summary AI

The Secretaries of Defense, Energy, and Transportation are required to support a program to develop small nuclear reactor technology for ships, report on its progress to Congress annually, and seek funding through the President’s Budget and partnerships.

13. Assessment on marine infrastructure readiness Read Opens in new tab

Summary AI

The section requires the Maritime Administration to report to Congress within 180 days about the status and resources needed for port, shipyard, and infrastructure improvements supporting finance arrangements for projects. It also asks for policy and rule changes to enhance U.S. maritime capabilities and suggestions on using special economic zones to boost maritime workforce and facilities.

14. Contracting Read Opens in new tab

Summary AI

The section explains that the Administrator of the Maritime Administration is required to hire a reputable firm through a competitive bidding process. This firm will handle the tasks of creating branding, content, buying advertisements, and developing both local and national strategies to support the campaigns mentioned in section 3.

15. Campaign objectives Read Opens in new tab

Summary AI

The section outlines objectives for campaigns to boost maritime careers by emphasizing their importance to national security, showcasing job opportunities and excitement in the field, addressing worker shortages, and promoting avenues for training and financial support for those interested in joining the maritime sector.

16. Target Audience Read Opens in new tab

Summary AI

The section outlines that the campaign to promote awareness about the merchant marine and shipbuilding sectors should focus on a variety of audiences, including people interested in maritime careers, educational institutions and their students, military veterans and those seeking new careers, as well as the general public.

17. Reporting and accountability Read Opens in new tab

Summary AI

The section requires that the chosen firm submit quarterly reports to the Maritime Administration and Congress about the progress and effectiveness of the campaigns meant to boost job applications in the American merchant marine and shipbuilding sectors. Additionally, a comprehensive final report must be submitted within 60 days after the campaigns end.

18. Sealift capability Read Opens in new tab

Summary AI

The Sealift Capability section of the bill outlines the importance of a strong United States-flagged sealift fleet for national defense and commerce, detailing objectives for maintaining a sufficient fleet, prioritizing its use, engaging in international agreements, and developing domestic shipbuilding capacity. It requires reports and briefings by various U.S. departments to Congress, focusing on ensuring the readiness of maritime infrastructure, supporting U.S.-flagged commercial fleets, and coordinating with allies for wartime needs.

90101. Objectives and policy Read Opens in new tab

Summary AI

The section outlines the need for the United States to maintain a fleet of ships under its own flag that can be used for national defense and economic purposes, especially during crises or wars. It states the policy of supporting the development and upkeep of this fleet to ensure the country can meet its security and trade needs without relying on foreign powers.

90102. Procurement, maintenance, and operation Read Opens in new tab

Summary AI

The section outlines that the Secretaries of Transportation and Defense are responsible for creating and maintaining a strong sealift capability that supports civil, commercial, and military needs. Additionally, it highlights the need to keep operating programs like the Maritime Security Program and the Military Sealift Command to ensure the U.S. has the necessary transport capabilities in times of peace, crisis, and war.

90103. Sealift prioritization Read Opens in new tab

Summary AI

In times of war or crisis, SEC. 90103 mandates the order of priority for using sealift capabilities, starting with commercial vessels registered in the United States, followed by U.S. government-operated vessels, then vessels from allied nations, and lastly, ships from partner states. The Secretary of Defense decides when to move to the next priority level.

90104. Interaction with programs Read Opens in new tab

Summary AI

The section explains that the Secretaries of Transportation and Defense are allowed to buy, maintain, and fix ships from allied countries. These ships should be able to be used across different programs, like the Maritime Security Program and Tanker Security Program.

90105. International agreements Read Opens in new tab

Summary AI

The section describes the Department of State's role in maintaining and enhancing sealift capabilities by working with the U.S.'s treaty allies and partners to ensure readiness during wartime, as well as requiring a report to Congress by March 1, 2025, that evaluates and suggests updates to these international agreements.

90106. Briefing on shipbuilding capacity Read Opens in new tab

Summary AI

The section requires the Secretary of Transportation and the Secretary of Defense to report to Congress by March 1, 2025, on the U.S. shipbuilding industry's ability to build, maintain, and repair strategic sealift ships. The report should also offer suggestions for improving shipbuilding infrastructure, workforce, supply chains, and consider contributions from allies and partners.

90107. Briefing on privileging fleet Read Opens in new tab

Summary AI

The Secretary of Transportation, along with other government officials, must brief Congress by March 1, 2025, on ways to increase the presence of U.S. ships in international trade. The briefing will include recommendations and incentives, such as tax and credit benefits, to encourage more use of U.S.-flagged ships by businesses and allies.

90108. Report on privilege Read Opens in new tab

Summary AI

The section mandates that by March 1, 2025, the Secretary of Transportation, along with other officials, must deliver a report to Congress on how the United States can prioritize its own sealift fleet over foreign vessels in terms of regulations, taxes, and policies, while respecting international agreements. The report should also provide strategies for supporting US-flagged ships in programs that contribute to the national security fleet.

90109. Report on requirements for sealift force deployment Read Opens in new tab

Summary AI

The section mandates the Secretary of Defense to submit a report to Congress by March 1, 2025, detailing the requirements for maintaining and developing the Maritime Security Program, Tanker Security Program, and Ready Reserve Force. It also requires a plan to engage the Ready Reserve Force in international trade using a public-private partnership while ensuring control during crises or war.

90110. Report on domestic build requirements Read Opens in new tab

Summary AI

The Secretary of Transportation must deliver a report to Congress by March 1, 2025, detailing a plan to financially support and gradually implement a rule that requires ships for certain federal maritime programs to be built in the United States. This plan will take into account partnerships and resource sharing with allied countries and organizations.

90111. Assessment on marine infrastructure readiness Read Opens in new tab

Summary AI

The section mandates that every two years starting March 1, 2026, the Secretaries of Defense, Homeland Security, Commerce, and Transportation must report to Congress on the readiness and security of the U.S. marine infrastructure and shipping industry. Additionally, it requires the Secretary of State to assess international agreements that support U.S. maritime capabilities during crises.

19. Assistance for small shipyards Read Opens in new tab

Summary AI

The bill proposes to change the funding for small shipyards in Section 54101(i) of title 46, United States Code, by increasing the allocated amount from $20 million for fiscal year 2021 to $100 million for fiscal year 2025.

Money References

  • SEC. 19.Assistance for small shipyards. Section 54101(i) of title 46, United States Code, is amended by striking “fiscal year 2021 to carry out this section $20,000,000” and inserting “fiscal year 2025 to carry out this section $100,000,000”.

20. Authorization of appropriations for Maritime Administration Read Opens in new tab

Summary AI

The section authorizes the allocation of funds to the Department of Transportation for the fiscal years 2025 to 2035, including $10 million for a campaign to promote careers in the United States Merchant Marine, and $5 million for a campaign to promote careers in the U.S. shipbuilding industry. Both campaigns aim to highlight the need for skilled workers and encourage people to enter these fields.

Money References

  • the following amounts: (1) $10,000,000 for a targeted campaign promoting the virtues of work in the United States Merchant Marine for the purpose of sailing in international trade, including Military Sealift Command mariner positions, highlighting the critical need for skilled workers in this sector, and to attract workers to this sector. (2) $5,000,000 for a targeted campaign promoting the virtues of work in the United States shipbuilding industry, highlighting the critical need for skilled workers in this sector, and to attract workers to this sector. ---

21. Authorization of appropriations for Maritime Administration Read Opens in new tab

Summary AI

The section authorizes $103,020,000 to be allocated to the Department of Transportation for 2024 to support the United States Merchant Marine, with $100,000,000 designated for loan guarantees and $3,020,000 for administrative expenses related to those guarantees.

Money References

  • There is authorized to be appropriated to the Department of Transportation for fiscal year 2024, for programs associated with maintaining the United States Merchant Marine for expenses necessary for the loan guarantee program authorized under chapter 537 of title 46, United States Code, $103,020,000, of which— (1) $100,000,000 may be for the cost (as such term is defined in section 502(5) of the Federal Credit Reform Act of 1990 (2 U.S.C. 661a(5)) of loan guarantees under the program; and (2) $3,020,000 may be used for administrative expenses relating to loan guarantee commitments under the program. ---

22. Effective date Read Opens in new tab

Summary AI

The section states that the Administrator of the Maritime Administration must complete the specific task mentioned in section 14 within one year from when the funds authorized by the Act are made available.

23. Sunset clause Read Opens in new tab

Summary AI

Any money that is not yet spent and was approved under this law will expire 3 years after it is initially provided.

24. Definition Read Opens in new tab

Summary AI

In this section of the bill, the term "relevant congressional committees" refers to specific committees in both the House of Representatives and the Senate: for the House, it includes the Appropriations, Armed Services, and Transportation and Infrastructure Committees; for the Senate, it includes the Appropriations, Armed Services, and Commerce, Science, and Transportation Committees.