Title 46, ShippingRelease 119-110

§53403 Award of Operating Agreements

Title 46 › Subtitle V — Merchant Marine › Part C — Financial Assistance Programs › CHAPTER 534 — TANKER SECURITY FLEET › § 53403

Last updated Sep 23, 2026|Official source

Summary

Requires that any vessel be covered by an operating agreement with the Secretary of Transportation to be included in the Fleet. The Secretary will only take applications for eligible product tank vessels from people who are authorized under this law. New agreements go to applicants who meet the rules in section 53402(c) for vessels that qualify under section 53402(b). Priority is set first by vessel capabilities as decided by the Secretary of Defense, then by vessel type and the applicant’s record, then by any other priorities the Transportation Secretary sets. The Transportation Secretary cannot approve an application unless the Secretary of Defense agrees. The Transportation Secretary cannot require payments under section 53406 for more than 10 vessels in each of fiscal years 2022 and 2023, and not more than 20 vessels in any later fiscal year. Courts cannot review decisions to give or deny these operating agreements.

Full Legal Text

Title 46, §53403

Shipping, Source: USLM XML via OLRC

(a)In General.—
The Secretary of Transportation shall require, as a condition of including any vessel in the Fleet, that the program participant of the vessel enter into an operating agreement with the Secretary under this section.
(b)Procedure for Applications.—
(1)Eligible vessels.—
The Secretary of Transportation shall accept an application for an operating agreement for an eligible product tank vessel under the priority under paragraph (2) only from a person that has authority to enter into an operating agreement under this chapter.
(2)Establishment of priority.—
The Secretary of Transportation may enter into a new operating agreement with an applicant that meets the requirements of section 53402(c) for a vessel that meets the qualifications of section 53402(b), and shall give priority to applications based on—
(A)vessel capabilities, as established by the Secretary of Defense; then
(B)after consideration of vessel type, according to an applicant’s record of owning and operating vessels; then
(C)after consideration of ownership and operation, according to such additional priorities as the Secretary of Transportation may consider appropriate.
(3)Concurrence of award.—
The Secretary of Transportation may not approve an application for an operating agreement without the concurrence of the Secretary of Defense.
(c)Limitation.—
The Secretary of Transportation may not award operating agreements under this chapter that require payments under section 53406 of this title for more than—.
(1)for each of fiscal years 2022 and 2023, 10 vessels; and
(2)for any subsequent fiscal year, 20 vessels.
(d)Judicial Review.—
No court shall have jurisdiction to review the Secretary’s decision with respect to the award or non-award of an operating agreement issued under this chapter.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Amendments

2022—Subsec. (c). Pub. L. 117–263 substituted “The Secretary” for “For any fiscal year, the Secretary” and “more than—” for “more than 10 vessels”, designated existing provisions as introductory provisions, and added pars. (1) and (2).

Reference

Citations & Metadata

Citation

46 U.S.C. § 53403

Title 46, Shipping

Last Updated

Sep 23, 2026

Release point: 119-110