H.R. 3842: To amend title 46, United States Code, to include the replacement or purchase of additional cargo handling equipment as an eligible purpose for Capital Construction Funds, and for other purposes.

This bill proposes changes to Title 46 of the United States Code, specifically regarding the use of Capital Construction Funds (CCF) for marine terminal operations. The key aspects of the bill are as follows:

1. Definitions of Cargo Handling Equipment and Marine Terminal

The bill clarifies the definitions of "cargo handling equipment" and "marine terminal." Specifically, "cargo handling equipment" refers to vehicles and equipment used at marine terminals to lift or move cargo, including infrastructure necessary for these operations. It states that such equipment must either be manufactured in the United States or, if not available in sufficient quantity or quality domestically, can be sourced from outside the U.S.

The "marine terminal" definition has also been broadened to include various structures such as wharves and piers that facilitate the movement of cargo between vessels and the shore.

2. Establishing a Capital Construction Fund

The bill allows individuals and operators of marine terminals to create Capital Construction Funds under agreements with the Secretary. The purposes for establishing these funds include:

• Acquisition or construction of replacement or additional vessels for operation in trade.
• Replacement or additional cargo handling equipment for use at marine terminals.

3. Deposits and Withdrawals

The bill amends provisions regarding deposits and withdrawals from these funds, allowing funds to be used not only for vessels but also specifically for cargo handling equipment at United States marine terminals.

4. Ceiling on Deposits

It updates the rules regarding deposits to the Capital Construction Fund to incorporate the operation of marine terminals into existing frameworks, expanding allowable purposes.

5. Qualified Withdrawals

The bill outlines the conditions under which withdrawals from the Capital Construction Funds can occur, indicating that they can be used for the acquisition or construction of cargo handling equipment as well. However, it also imposes restrictions regarding automation, specifically that funds cannot be used to purchase fully automated cargo handling equipment that may lead to job losses at marine terminals. Additionally, it prohibits using these funds to purchase cranes manufactured in the People's Republic of China.

6. Treatment of Qualified Withdrawals

It specifies how qualified withdrawals from these funds should be treated in accounting terms, ensuring that cargo handling equipment is included in relevant provisions.

7. FIFO and LIFO Withdrawals

The bill allows for the inclusion of cargo handling equipment in the existing guidelines for first-in, first-out (FIFO) and last-in, first-out (LIFO) withdrawal methods from Capital Construction Funds.

8. Cargo Handling Equipment Availability

The Secretary is mandated to annually publish a request for information on the availability of domestically manufactured cargo handling equipment. These findings will be shared with Capital Construction Fund holders to keep them informed about available resources.

Relevant Companies

None found