118 STAT. 2039 PUBLIC LAW 108–375—OCT. 28, 2004 and for removal and disposal of hazardous waste material is discounted by the offeror’s estimate of the value of scrap and reusable items that the contractor will remove from the vessel during performance of the contract. ‘‘(2) The term ‘scrap’ means personal property that has no value except for its basic material content. ‘‘(3) The term ‘reusable item’ means a demilitarized compo nent or a removable portion of a vessel or equipment that the Secretary of the Navy has identified as excess to the needs of the Navy but which has potential resale value on the open market.’’. (b) CLERICAL AMENDMENT.—The table of sections at the begin ning of such chapter is amended by inserting after the item relating to section 7305 the following new item: ‘‘7305a. Vessels stricken from Naval Vessel Register: contracts for dismantling on net cost basis.’’. SEC. 1012. USE OF PROCEEDS FROM EXCHANGE AND SALE OF OBSO LETE NAVY SERVICE CRAFT AND BOATS. (a) COSTS OF PREPARATION FOR DISPOSAL.—(1) Chapter 633 of title 10, United States Code, is amended by inserting after section 7311 the following new section: ‘‘§ 7312. Service craft stricken from Naval Vessel Register; obsolete boats: use of proceeds from exchange or sale ‘‘(a) EXCHANGE OR SALE OF SIMILAR ITEMS.—When the Sec retary of the Navy sells an obsolete service craft or an obsolete boat, or exchanges such a craft or boat in a transaction for which a similar craft or boat is acquired, the Secretary may retain the proceeds of the sale or the exchange allowance from the exchange, as the case may be, and apply the proceeds of sale or the exchange allowance for any of the following purposes: ‘‘(1) For payment, in whole or in part, for a similar service craft or boat acquired as a replacement, as authorized by section 503 of title 40. ‘‘(2) For reimbursement, to the extent practicable, of the appropriate accounts of the Navy for the full costs of prepara tion of such obsolete craft or boat for such sale or exchange. ‘‘(3) For deposit to the special account established under subsection (b), to be available in accordance with that sub section. ‘‘(b) SPECIAL ACCOUNT.—Amounts retained under subsection (a) that are not applied as provided in paragraph (1) or (2) of that subsection shall be deposited into a special account. Amounts in the account shall be available under subsection (c) without regard to fiscal year limitation. Amounts in the account that the Secretary of the Navy determines are not needed for the purpose stated in subsection (c) shall be transferred at least annually to the Gen eral Fund of the Treasury. ‘‘(c) COSTS OF PREPARATION OF OBSOLETE SERVICE CRAFT AND BOATS FOR FUTURE SALE OR EXCHANGE.—The Secretary may use amounts in the account under subsection (b) for payment, in whole or in part, for the full costs of preparation of obsolete service craft and obsolete boats for future sale or exchange. ‘‘(d) COSTS OF PREPARATION FOR SALE OR EXCHANGE.—In this section, the term ‘full costs of preparation’ means the full costs
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