114 STAT. 1654A-490 PUBLIC LAW 106-398 —APPENDIX (1) For expenses necessary for operations and training activities, $94,260,000. (2) For expenses under the loan guarantee program authorized by title XI of the Merchant Marine Act, 1936 (46 App. U.S.C. 1271 et seq.), $54,179,000, of which— (A) $50,000,000 is for the cost (as 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 (B) $4,179,000 is for administrative expenses related to loan guarantee commitments under the program. SEC. 3502. SCRAPPING OF NATIONAL DEFENSE RESERVE FLEET VES- SELS. (a) EXTENSION OF SCRAPPING AUTHORITY UNDER NATIONAL MARITIME HERITAGE ACT OF 1994. —Section 6(c)(1) of the National Maritime Heritage Act of 1994 (16 U.S.C. 5405(c)(1)) is amended— (1) in subparagraph (A) by striking "2001" and inserting "2006"; and (2) by striking subparagraph (B) and inserting the following: "(B) in the manner that provides the best value to the Government, except in any case in which obtaining the best value would require towing a vessel and such towing poses a serious threat to the environment; and". (b) SELECTION OF SCRAPPING FACILITIES. —The Secretary of Transportation may scrap obsolete vessels pursuant to section 6(c)(1) of the National Maritime Heritage Act of 1994 (16 U.S.C. 5405(c)(1)) through qualified scrapping facilities, using the most expeditious scrapping methodology and location practicable. Scrapping facilities shall be selected under that section on a best value basis consistent with the Federal Acquisition Regulation, as in effect on the date of the enactment of this Act, without any predisposition toward foreign or domestic facilities taking into consideration, among other things, the ability of facilities to scrap vessels— (1) at least cost to the Government; (2) in a timely manner; (3) giving consideration to worker safety and the environment; and (4) in a manner that minimizes the geographic distance that a vessel must be towed when towing a vessel poses a serious threat to the environment. (c) LIMITATION ON SCRAPPING BEFORE PROGRAM. — (1) IN GENERAL.— Until the report required by subsection (d)(1) is transmitted to the congressional committees referred to in that subsection, the Secretary may not proceed with the scrapping of any vessel in the National Defense Reserve Fleet except the following: (A) DONNER. (B) EXPORT COMMERCE. (C) BUILDER. (D) ALBERT E. WATTS. (E) WAYNE VICTORY. (F) MORMACDAWN. (G) MORMACMOON. (H) SANTA ELENA. (I) SANTA ISABEL. (J) SANTA CRUZ.
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