U.S. Code > Title 46 Shipping > Subtitle V—Merchant Marine (§§ 50101—58109) > Part D—Promotional Programs (§§ 55101—55605) > CHAPTER 553—PASSENGER AND CARGO PREFERENCES (§§ 55301—55336) > SUBCHAPTER II—EXPORT TRANSPORTATION OF AGRICULTURAL COMMODITIES (§§ 55311—55318) > § 55316. Financing the transportation of agricultural commodities

§ 55316. Financing the transportation of agricultural commodities

(a) Financing of Increased Charges.— The Secretary of Transportation shall finance any increased ocean freight charges incurred in any fiscal year that result from the application of section 55314 of this title.
(b) Reimbursement of Increased Charges.—
(1) In general.— The Secretary of Transportation shall reimburse the Secretary of Agriculture and the Commodity Credit Corporation for the amount by which, in any fiscal year—
(A) the total cost of ocean freight and ocean freight differential for which obligations are incurred by the Secretary of Agriculture and the Corporation on exports of agricultural commodities and their products under the agricultural export programs specified in section 55314 (b) of this title; exceeds
(B) 20 percent of the value of the commodities and their products and the cost of the ocean freight and ocean freight differential on which obligations are incurred by the Secretary of Agriculture and the Corporation during that fiscal year.
(2) Commodities shipped from inventory.— For purposes of this subsection, commodities shipped from the inventory of the Corporation shall be valued as provided in section 412(d) of the Food for Peace Act (7 U.S.C. 1736f (d)).
(c) Issuance and Purchase of Obligations.—
(1) Issuance.— To meet the expenses required to be assumed under subsections (a) and (b), the Secretary of Transportation shall issue obligations to the Secretary of the Treasury. The Secretary of Transportation, with the approval of the Secretary of the Treasury, shall prescribe the form, denomination, maturity, and other terms (except the interest rate) of the obligations. The Secretary of the Treasury shall set the interest rate for the obligations, considering the average market yield on outstanding marketable obligations of the United States Government of comparable maturities during the month before the obligations are issued.
(2) Purchase.— The Secretary of the Treasury shall purchase the obligations issued under this subsection. To purchase the obligations, the Secretary of the Treasury may use as a public debt transaction the proceeds from the sale of securities issued under chapter 31 of title 31. The purposes for which securities may be issued under that chapter are extended to include the purchase of obligations under this subsection. A redemption or purchase of the obligations by the Secretary of the Treasury is a public debt transaction of the Government.
(d) Source of Funds for Reimbursement.— Reimbursement of the Secretary of Transportation for costs incurred under this section shall be made with appropriated funds rather than through cancellation of notes.
(e) Appropriations.—
(1) Authorization.— Each fiscal year, there is authorized to be appropriated an amount sufficient to reimburse the Secretary of Transportation for the costs incurred under this section, including administrative expenses and the principal and interest due on obligations issued to the Secretary of the Treasury.
(2) Appropriation for administrative expenses.— Each fiscal year, such amounts as may be necessary are hereby appropriated to pay interest and to liquidate debt on obligations issued to the Secretary of the Treasury under this section.
(f) Notification to Congress of Insufficiency.— If the Secretary of Transportation is unable to obtain the funds necessary to finance the increased ocean freight charges resulting from the requirements of subsections (a) and (b) and section 55314 (a) of this title, the Secretary shall notify Congress within 10 working days of the discovery of the insufficiency.