which the grant was made. Records are subject to inspection during the life of the grant and 3 years thereafter. FINANCIAL INFORMATION: Account Identification: 06-48-1422-0-1-506. Obligations: (Grants) FY 70 $2,600,000; FY 71 est $5,000,000; and FY 72 est $5,000,000. Range and Average of Financial Assistance: $1,000 to $300,000; $100,000. PROGRAM ACCOMPLISHMENTS: In fiscal year 1970, 27 grants were awarded. REGULATIONS, GUIDELINES, AND LITERATURE: 45 CFR 600-635; "Suggestions for Submission of Proposals, National Sea Grant Program," NSF 67-18 (no charge). INFORMATION CONTACTS: Regional or Local Office: None. Headquarters Office: Director, National Sea Grant Program, National Oceanic & Atmospheric Administration, 6010 Executive Blvd., Rockville, Maryland 20852. Telephone: (202) 343-6025. RELATED PROGRAMS: 11.417, Sea Grant Institutional Support; 11.506, State Marine Schools; 11.507, U.S. Merchant Marine Academy; 20.002, Coast Guard Cooperative Marine Sciences Program; 47.018, Oceanography - Basic Research Grants; 60.004, Chesapeake Bay Center for Environmental Studies. 471 MARITIME ADMINISTRATION 11.500 CONSTRUCTION-DIFFERENTIAL SUBSIDIES FEDERAL AGENCY: MARITIME ADMINISTRATION, DEPART- OBJECTIVES: To promote the development and maintenance of the Applicant Eligibility: U.S. flagship operators or U.S. shipyards for construction of ships to be used in foreign trade. Beneficiary Eligibility: Same as applicant eligibility. Credentials/Documentation: Proof of U.S. Citizenship. APPLICATION AND AWARD PROCESS: Preapplication Coordination: None. Application Procedure: Application is filed on form MB-8, in triplicate (originals) and 12 conforming copies which are forwarded to, the Assistant Administrator for Maritime Aids at the headquarters office listed below. Award Procedure: Priority will be given to those proposals which: (a) best attain the goal of reducing the percent of CDS necessary; (b) provide for the production of ships of high transport capability and productivity; (c) use standard ship designs leading to series production and multi-year contracting; and (d) increase foreign trade penetration. Award decisions are made by the Maritime Subsidy Board, based on recommendations of the Maritime Aids Office. The Subsidy Board also formally notifies the applicant of approval or disapproval of the award. Deadlines: None. Range of Approval/Disapproval Time: 90 days to 6 months. Appeals: The time between receipt of application and return for reworking is generally about one month. Renewals: Not applicable. ASSISTANCE CONSIDERATIONS: Formula and Matching Requirements: A maximum of 50 percent of construction costs in a United States shipyard. A goal of 45 percent for fiscal year 1971 with a further reduction of 2 percent per year until a ceiling of 35 percent is reached in 1976 has been established. Length and Time Phasing of Assistance: Not applicable. POST ASSISTANCE REQUIREMENTS: Reports: The shipowner must agree to build the ship in the United States and operate it under U.S. flag in the foreign commerce of the United States, with a U.S. citizen crew for a period of 25 years. The ship is subject to requisition at any time. Audits: None. Records: Reports and records listed in "Index of Current Regulations" published by the Maritime Administration. FINANCIAL INFORMATION: Account Identification: 06-70-1708-0-1-502. Obligations: (Direct payments) FY 70 $67,774,000; FY 71 est $237,990,000; and FY 72 est $229,687,000. Range and Average of Financial Assistance: $7,500,000 to $15,000,000 per ship. PROGRAM ACCOMPLISHMENTS: The new program is to provide up to 30 new ships per year, commencing in 1971. In 1970, 3 new ships were delivered under CDS, and 6 contracts for new construction were awarded. REGULATIONS, GUIDELINES, AND LITERATURE: Maritime Administration - General Order 11 (46 CFR Part 251). INFORMATION CONTACTS: Regional or Local Office: Maritime Administration, Eastern Region Director, Federal Building, 26 Federal Plaza, 37th floor, New York City, N.Y. 10007, telephone: (212) 264-1300; Maritime Administration, Central Region Director, 701 Loyola Avenue, P.O. Box 52948, New Orleans, Louisiana 70150, telephone: (504) 527-6556; Maritime Administration, Western Region Director, 450 Golden Gate Avenue, Box 36073, San Francisco, California, 94102, telephone: (415) 556-3816. Headquarters Office: Assistant Administrator for Maritime Aids, Maritime Administration, Department of Commerce, 14th and Constitution, Washington, D.C. 20235, telephone: (202) 967-2611. RELATED PROGRAMS: 11.504, Operating-Differential Subsidies. 11.501 DEVELOPMENT AND PROMOTION OF PORTS AND INTERMODAL TRANSPORT SYSTEMS (Ports and Intermodal Systems) FEDERAL AGENCY: MARITIME ADMINISTRATION, DEPARTMENT OF COMMERCE AUTHORIZATION: Section 8, Merchant Marine Act, 1920, as amended; 41 Stat. 992; section 212, Merchant Marine Act, 1936, as amended; 46 U.S.C. section 1122. OBJECTIVES: To promote the development and utilization of ports and port facilities, and intermodal transportation systems. Provide technical advice to other Government agencies, private industry and State and municipal governments in the above fields; and plan for the utilization and control of ports and port facilities under national mobilization conditions. TYPES OF ASSISTANCE: Advisory Services and Counseling; USES AND USE RESTRICTIONS: There are no use restrictions. Applicant Eligibility: State and local governments, including port authorities are eligible; also individuals, organizations, companies, etc., as appropriate. Beneficiary Eligibility: Same as applicant eligibility. APPLICATION AND AWARD PROCESS: Preapplication Coordination: None. Application Procedure: Personal conference or explanation of Range of Approval/Disapproval Time: Not applicable. Renewals: Not applicable. ASSISTANCE CONSIDERATIONS: Formula and Matching Requirements: Not applicable. Length and Time Phasing of Assistance: Not applicable. POST ASSISTANCE REQUIREMENTS: Reports: None. Audits: None. Records: None. FINANCIAL INFORMATION: Account Identification: 06-70-1716-0-1-502; 06-70-1700-0-1-502. Obligations: Not separately identifiable. Range and Average of Financial Assistance: Not applicable. PROGRAM ACCOMPLISHMENTS: In fiscal year initiated study of offshore port terminal concept; evaluated the Economic Development Administration's grant applications for port improvements; prepared navigation study for Great Lakes Basin 5 Commission; initiated oil pollution abatement in U.S. ports; and developed U.S. position papers on international port and intermodal matters. REGULATIONS, GUIDELINES, AND LITERATURE: Departmental Organization Order 25-2B; 35 FR 13145 of August 18, 1970. INFORMATION CONTACTS: Regional or Local Office: Maritime Administration, Eastern Region Director, Federal Building, 26 Federal Plaza, 37th Floor, New York City, N.Y. 10007, telephone: (212) 264-1300; Maritime Administration, Central Region Director, 701 Loyola Avenue, P.O. Box 52948, New Orleans, Louisiana 70150, telephone: (504) 527-6556; Maritime Administration, Western Region Director, 45 Golden Gate Avenue, Box 36073, San Francisco, California 94102, telephone: (415) 556-3816. Headquarters Office: Chief, Office of Ports and Intermodal Systems, Maritime Administration, Department of Commerce, Washington, D.C. 20235. Telephone: (202) 967-4123. RELATED PROGRAMS: None. 11.502 FEDERAL SHIP MORTGAGE INSURANCE (Title XI) FEDERAL AGENCY: MARITIME ADMINISTRATION, DEPARTMENT OF COMMERCE AUTHORIZATION: Title XI of the Merchant Marine Act, 1936, as amended; 46 U.S.C. 1271, et seq. OBJECTIVES: To develop and promote the construction and reconstruction of ships in the foreign and domestic commerce of the United States by providing Government insurance on commercial loans and mortgages so as to make commercial credit more readily available. TYPES OF ASSISTANCE: Guaranteed Insured Loans. USES AND USE RESTRICTIONS: Insured loans are available to aid in financing of vessels which are designed for research or for commercial use (a) in the coastwide or intercoastal trade; (b) on the Great Lakes or on bays, sounds, rivers, harbors, or inland lakes of the United States; (c) in the foreign trade; (d) in the fishing trade, or floating drydocks. Any vessel other than a towboat, barge, scow, lighter, car float, canal boat or tank vessel of less than 200 gross tons is eligible. ELIGIBILITY REQUIREMENTS: Applicant Eligibility: Any U.S. citizen with the ability, experience and financial resources, and other qualifications necessary to the adequate operation and maintenance of the mortgaged property. Beneficiary Eligibility: Same as applicant eligibility. Credentials/Documentation: Economic feasibility of project, citizenship of applicant. APPLICATION AND AWARD PROCESS: Preapplication Coordination: Bank providing the loan must be approved by the Maritime Administration. Application Procedure: Application for loan form MA 163 must be filed through Regional Directors and approved in principle prior to the keel-laying of vessels to be constructed or prior to commencement of work on vessels to be reconstructed or reconditioned. Award Procedure: Final approval granted by Assistant Secretary for Maritime Affairs (Maritime Administrator) for nonsubsidized operators and by the Chief, Office of Subsidy Administration, for subsidized operators. Deadlines: None. Range of Approval/Disapproval Time: After a complete application has been filed with all supporting documents, processing time is approximately 90 days. Appeals: Applications are not returned but are supplemented and revised, usually by negotiation between the applicants, the lending institution and the Maritime Administration. Renewals: Not applicable. ASSISTANCE CONSIDERATIONS: Formula and Matching Requirements: The shipowner must provide 121⁄2 percent or 25 percent of the total construction cost depending on the proposed construction. The remaining costs are to be financed through loans or mortgages with private institutions. Length and Time Phasing of Assistance: Over life of ship - 20 to 25 years. Assistance provided as ship is constructed and/or throughout life of ship. POST ASSISTANCE REQUIREMENTS: Reports: Financial reports as per contract. Annual reports regarding citizenship, no default certificates, ABS requirements, etc. Audits: See "Index of Current Regulations," Maritime Administration. Records: See "Reports" above. FINANCIAL INFORMATION: Account Identification: 06-70-4301-0-3-502. Face Value of Loans: (Insured loans) FY 70 $919,418,000; FY 71 est $1,152,000,000; and FY 72 est $1,450,000,000. Range and Average of Financial Assistance: $106,000 to $21,000,000; $5,000,000. PROGRAM ACCOMPLISHMENTS: In fiscal year 1970, 29 vessels were Regional or Local Office: Maritime Administration, Eastern Region RELATED PROGRAMS: 11.500, Construction - Differential Subsidies. 11.503 MARITIME WAR RISK INSURANCE (Title XII, MMA, 1936) FEDERAL AGENCY: MARITIME ADMINISTRATION, DEPART- OBJECTIVES: To provide war risk insurance whenever it appears to the Secretary of Commerce that such insurance, adequate for the needs of the waterborne commerce of the United States, cannot be obtained on reasonable terms and conditions from companies authorized to do an insurance business in a State of the United States. TYPES OF ASSISTANCE: Insurance. USES AND USE RESTRICTIONS: Entire program details set forth in General Order 75, 2d revision, part 308- War Risk Insurance (26 F.R. 4541, issue of May 26, 1961), as amended from time to time. Insurance binders or policies on certain vessels in operation or under construction, provided for nominal cost in peacetime. Provides insurance against war risks which fall upon a citizen or resident of U.S., its territories or possessions or is transported to or from or between such areas. ELIGIBILITY REQUIREMENTS: Applicant Eligibility: Set forth in General Order 75, 2d revision, part 308 - War Risk Insurance (26 F.R. 4541, issue of May 26, 1961) as amended from time to time. Beneficiary Eligibility: Not applicable. Credentials/Documentation: See applicant eligibility. APPLICATION AND AWARD PROCESS: Preapplication Coordination: None. Application Procedure: Set forth in General Order 75, 2d revision, part 308 War Risk Insurance (26 CFR 4541, issue of May 26, 1961), as amended from time to time. Process being updated. Award Procedure: Section 1202A Title XII of the Merchant Marine Act amended applies which calls for approval by the Secretary of Commerce. Deadlines: None. Range of Approval/Disapproval Time: 3 to 10 working days. Renewals: Extension or renewal of insurance offered is subject to statute (section 1214, Title XII, Merchant Marine Act, 1936, as amended) and the discretion of the Secretary of Commerce as delegated to the Maritime Administration. ASSISTANCE CONSIDERATIONS: Formula and Matching Requirements: Not applicable. Length and Time Phasing of Assistance: Indeterminate; depends on war situation and posture of the country. POST ASSISTANCE REQUIREMENTS: Reports: Indeterminate. Audits: Indeterminate. Records: Indeterminate. FINANCIAL INFORMATION: Account Identification: 06-70-4302-0-3-502. Obligations: (Salaries and expenses) FY 70 $92,266; FY 71 est $154,000; and FY 72 est $60,000. Range and Average of Financial Assistance: Not available because of fluctuating ship prices. PROGRAM ACCOMPLISHMENTS: War risk insurance is being provided on over 1200 vessels as of fiscal year 1970 and their crews, under the Title XII program. Such insurance is unobtainable commercially. REGULATIONS, GUIDELINES, AND LITERATURE: 26 CFR 4541; Regulations and guidelines as set forth in General Order 75, as revised and amended from time to time through publication in the Federal Register. INFORMATION CONTACTS: Regional or Local Office: None. Headquarters Office: Chief, Division of Insurance, Maritime Administration, Washington, D.C. 20235. Telephone: (202) 967-4820. RELATED PROGRAMS: 19.201, Protection of Ships from Foreign Seizure. 11.504 OPERATING-DIFFERENTIAL SUBSIDIES (ODS) FEDERAL AGENCY: MARITIME ADMINISTRATION, DEPARTMENT OF COMMERCE AUTHORIZATION: Title VI of the Merchant Marine Act, 1936, as amended; 46 U.S.C. 1171-1183. OBJECTIVES: To promote the development and maintenance of the U.S. Merchant Marine by granting financial aid so as to equalize the cost of operating a U.S. flag ship with the cost of operating a competitive foreign flag ship. TYPES OF ASSISTANCE: Direct Payments for Specified Uses. USES AND USE RESTRICTIONS: Title VI of the act provides for the payment of operating-differential subsidy on a vessel or vessels to be used in a foreign service in the foreign commerce of the United States, which has been declared to be essential by the Maritime Administrator under section 211 of the act. Operating subsidy is based on the difference between the fair and reasonable cost of certain items of operating expense and the estimated cost of the same items of expense if the vessels were operated under foreign registry. ELIGIBILITY REQUIREMENTS: Applicant Eligibility: Any U.S. citizen for operation of vessels in an essential service in foreign commerce who has ability, experience, financial resources, and other qualifications necessary to enable him to conduct the proposed operation. Beneficiary Eligibility: Same as applicant eligibility. Credentials/Documentation: Proof of U.S. citizenship. APPLICATION AND AWARD PROCESS: Preapplication Coordination: None. Application Procedure: See Maritime Administration - General Order 13 (46 CFR, Part 251). Application from MA-628 in triplicate (3 originals and 18 copies). Send application to the headquarters office listed below. Award Procedure: Maritime Aids office reviews applications and determines that ODS may be paid if: (1) the operation is required to meet foreign competition; (2) the applicant owns, leases, can or will build competitive vessels; (3) the applicant possesses the ability, experience and financial resources necessary to conduct the operation; (4) the granting of aid is necessary to place the proposed operation on a parity with foreign competition. Approved by Maritime Subsidy Board. Maritime Aids office will then notify operator of award. Deadlines: None. Range of Approval/Disapproval Time: 90 days to 2 years. Appeals: Since the payment of ODS is a contractual matter, the period of negotiation may extend over a number of years before all of the requirements of the act have been satisfied. The amount of reworking time would be dependent on the completeness of the original application. Renewals: Not applicable. ASSISTANCE CONSIDERATIONS: Formula and Matching Requirements: The subsidy paid may not exceed the difference between the fair and reasonable cost of insurance, repairs and wage and subsistence of officers and crews over the estimated fair and reasonable cost of the same items if the vessels were operated under foreign flag. Length and Time Phasing of Assistance: Not to exceed 20-year contracts. After signing of contract, subsidy is payable commencing with loading of cargo on first outbound voyage. POST ASSISTANCE REQUIREMENTS: Reports: The reports required and a list of records to be maintained FINANCIAL INFORMATION: Account Identification: 06-70-1709-0-1-502. Obligations: (Contract Payments) FY 70 $193,917,000; FY 71 est $223,800,000; and FY 72 est $219,159,000. Range and Average of Financial Assistance: Parity between foreign and domestic costs wages, insurance, maintenance and repairs, and subsistence. PROGRAM ACCOMPLISHMENTS: In fiscal year 1970, 247 ships were subsidized. In fiscal year 1971, 213 (estimated) ships will be subsidized. REGULATIONS, GUIDELINES, AND LITERATURE: 46 CFR 251; "The U.S. Merchant Marine - A Brief History." INFORMATION CONTACTS: Regional or Local Office: Maritime Administration, Eastern Region Director, Federal Building, 26 Federal Plaza, 37th Floor, New York, N. Y. 10007, telephone: (212) 264-1300; Maritime Administration, Central Region Director, 701 Loyola Avenue, P.O. Box 52948, New Orleans, Louisiana 70150, telephone: (504) 527-6556; Maritime Administration, Western Region Director, 450 Golden Gate Avenue, Box 36073, San Francisco, California 94102, telephone: (415) 556-3816. Headquarters Office: Assistant administrator for Maritime Aids, Maritime Administration, Department of Commerce, 14th and Constitution Avenue, N.W., Washington, D.C. 20235. Telephone: (202) 967-2611. RELATED PROGRAMS: 11.500, Construction - Differential Subsidies. 11.505 SHIPS EXCHANGE AND SALES FEDERAL AGENCY: MARITIME ADMINISTRATION, DEPARTMENT OF COMMERCE AUTHORIZATION: Merchant Marine Act of 1936; 46 U.S.C. 1158, section 510(i), as amended by Public Law 89-254; 79 Stat. 980 and Public Law 91-469; 84 Stat. 1023; section 508, 49 Stat. 2000. OBJECTIVES: To permit ship operators to upgrade their American-flag Fleets and to provide a source of material to the shipbuilding industry. To sell by competitive bids merchant ships which become surplus to the needs of the Government. TYPES OF ASSISTANCE: Sale, Exchange, or Donation of Property and Goods. USES AND USE RESTRICTIONS: Includes providing ships for special uses such as piers, warehouses, oil drilling platforms, crane platforms, etc. Restrictions are that the ships are either for scrapping, or used for nontransportation uses. Also, transfer ships must remain under U.S. flag for 5 years. ELIGIBILITY REQUIREMENTS: Applicant Eligibility: Any operator whose financial and operating capabilities meet required standards may acquire ships under the ship exchange program. Those who have need for ships for nontransportation or scrapping purposes may purchase ships under competitive bids for such purposes. Beneficiary Eligibility: Same as applicant eligibility. Credentials/Documentation: Affidavits of citizenship, statements of operating, and financial capabilities. APPLICATION AND AWARD PROCESS: Preapplication Coordination: None. Application Procedure: Ship exchange: follow instructions in Maritime Administration's General Order 92, Rev. (34 CFR 6929). Ship sales: write to the Maritime Administration for invitations to bid. Award Procedure: Not applicable. Deadlines: As noted in invitations to bid. Range of Approval/Disapproval Time: Ship exchange: 1 month to 6 months, Ship Sales: 2 to 10 days after bid opening. Appeals: Not applicable. Renewals: Not applicable. ASSISTANCE CONSIDERATIONS: Formula and Matching Requirements: Not applicable. Length and Time Phasing of Assistance: Not applicable. POST ASSISTANCE REQUIREMENTS: Reports: That ships have been put to the uses for which required. Submitted after work accomplished. Audits: None. Records: None. FINANCIAL INFORMATION: Account Identification: None. Goes to general Treasury fund. Range and Average of Financial Assistance: Not applicable. PROGRAM ACCOMPLISHMENTS: In fiscal year 1970, 238 ships were sold and 1 ship was exchanged. REGULATIONS, GUIDELINES, AND LITERATURE: Ship exchange: General Order 92, Rev., may be obtained from the Maritime Administration at $0.25 per copy; Ship sales: none. INFORMATION CONTACTS: Regional or Local Office: Inquiries should be directed to headquarters office. Invitations to bid can be obtained from: Maritime Administration, Eastern Region Director, Federal Building, 26 Federal Plaza - 37th Floor, New York, N.Y. 10007, telephone: (212) 264-1300; Maritime Administration, Central Region Director, 701 Loyola Avenue, Post Office Box 52948, New Orleans, Louisiana 70150, telephone: (504) 527-6556; Maritime Administration, Western Region Director, 450 Golden Gate Ave., Box 36073, San Franciso, California 94102, telephone: (415) 556-3816. Headquarters Office: Chief, Fleet Disposal Branch, Division of Reserve Fleet, Office of Ship Operations, Maritime Adminis tration, Department of Commerce, Washington, D.C. 20235. Telephone: (202) 386-4426. RELATED PROGRAMS: None. 11.506 STATE MARINE SCHOOLS FEDERAL AGENCY: MARITIME ADMINISTRATION, DEPART- OBJECTIVES: To train Merchant Marine Officers in State Marine TYPES OF ASSISTANCE: Formula Grants; Use of Property, Facilities, and Equipment. USES AND USE RESTRICTIONS: Operation and maintenance of State Marine Schools; maintenance and repair of training vessels loaned by Federal Government; assistance to students in paying for uniforms, books and subsistence. ELIGIBILITY REQUIREMENTS: Applicant Eligibility: Individual States apply. Criterion for approval is Federal Government judgment that graduates of programs are needed in Merchant Marine. Limited to 1 academy in any 1 State. Beneficiary Eligibility: Students, under usual criteria for college entrance. Credentials/Documentation: Formal application from State Governor setting forth evidence of establishment of school; State appropriation for the school; suitable curriculum and facilities. APPLICATION AND AWARD PROCESS: Preapplication Coordination: Maritime Administration, Department of Commerce. Application Procedure: Letter from a State Governor to Secretary of Commerce or Assistant Secretary for Maritime Affairs. Award Procedure: Need for training must be established. The final award is approved by the Assistant Secretary for Maritime Affairs (Maritime Administrator). Notification of award is made to the public and the designated State Central Information Reception Agency (SF 240). Deadlines: None. Range of Approval/Disapproval Time: Not applicable. ASSISTANCE CONSIDERATIONS: Formula and Matching Requirements: Formula: Direct grants of $75,000 if matched by State appropriations and if out-of-State students are enrolled. Grants comprise (1) lump-sum annual grant to schools, (2) loan of vessel and payment for its maintenance, (3) student allowances. States are required to show that their annual funding for the school at least matches the Federal lump sum grant. |