§ 54101. Assistance for small shipyards and maritime communities
(a)
Establishment of Program.—
Subject to the availability of appropriations, the Administrator of the Maritime Administration shall execute agreements with shipyards to provide assistance—
(1)
in the form of grants, loans, and loan guarantees to small shipyards for capital improvements; and
(2)
for maritime training programs to foster technical skills and operational productivity in communities whose economies are related to or dependent upon the maritime industry.
(b)
Awards.—
In providing assistance under the program, the Administrator shall—
(1)
take into account—
(A)
the economic circumstances and conditions of maritime communities;
(B)
projects that would be effective in fostering efficiency, competitive operations, and quality ship construction, repair, and reconfiguration; and
(C)
projects that would be effective in fostering employee skills and enhancing productivity; and
(2)
make grants within 120 days after the date of enactment of the appropriations Act for the fiscal year concerned.
(c)
Use of Funds.—
(1)
In general.—
Assistance provided under this section may be used—
(A)
to make capital and related improvements in small shipyards located in or near maritime communities;
(B)
to provide training for workers in communities whose economies are related to the maritime industry; and
(C)
for such other purposes as the Administrator determines to be consistent with and supplemental to such activities.
(2)
Administrative costs.—
Not more than 2 percent of amounts made available to carry out the program may be used for the necessary costs of grant administration.
(d)
Prohibited Uses.—
Grants awarded under this section may not be used to construct buildings or other physical facilities or to acquire land unless such use is specifically approved by the Administrator in support of subsection (c)(1)(C).
(e)
Matching Requirements; Allocation.—
(1)
Federal funding.—
Except as provided in paragraph (2), Federal funds for any eligible project under this section shall not exceed 75 percent of the total cost of such project.
(2)
Exception.—
If the Administrator determines that a proposed project merits support and cannot be undertaken without a higher percentage of Federal financial assistance, the Administrator may award a grant for such project with a lesser matching requirement than is described in paragraph (1).
(3)
Allocation of funds.—
The Administrator may not award more than 25 percent of the funds appropriated to carry out this section for any fiscal year to any small shipyard in one geographic location that has more than 600 employees.
(f)
Applications.—
(1)
In general.—
To be eligible for assistance under this section, an applicant shall submit an application, in such form, and containing such information and assurances as the Administrator may require, within 60 days after the date of enactment of the appropriations Act for the fiscal year concerned.
(2)
Minimum standards for payment or reimbursement.—
Each application submitted under paragraph (1) shall include—
(A)
a comprehensive description of—
(i)
the need for the project;
(ii)
the methodology for implementing the project; and
(iii)
any existing programs or arrangements that can be used to supplement or leverage assistance under the program.
(3)
Procedural safeguards.—
The Administrator, in consultation with the Office of the Inspector General, shall issue guidelines to establish appropriate accounting, reporting, and review procedures to ensure that—
(A)
grant funds are used for the purposes for which they were made available;
(B)
grantees have properly accounted for all expenditures of grant funds; and
(C)
grant funds not used for such purposes and amounts not obligated or expended are returned.
(4)
Project approval required.—
The Administrator may not award a grant under this section unless the Administrator determines that—
(A)
sufficient funding is available to meet the matching requirements of subsection (e);
(B)
the project will be completed without unreasonable delay; and
(C)
the recipient has authority to carry out the proposed project.
(g)
Audits and Examinations.—
All grantees under this section shall maintain such records as the Administrator may require and make such records available for review and audit by the Administrator.
(h)
Small Shipyard Defined.—
In this section, the term “small shipyard” means a shipyard facility in one geographic location that does not have more than 1,200 employees.
(i)
Authorization of Appropriations.—
There are authorized to be appropriated to the Administrator of the Maritime Administration for each of fiscal years 2009 through 2013 to carry out this section—
(1)
$5,000,000 for training grants; and
(2)
$25,000,000 for capital and related improvements.
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