A bill to amend the Merchant Marine Act, 1920 to require vessels used to transport sewage sludge to be built in the United States.

(Measure passed House, amended)

Amends the Merchant Marine Act, 1920 to modify the penalty for transportation of merchandise between points in the United States in other than domestically built or rebuilt and documented vessels to permit a penalty, in the case of transportation of valueless material, in the amount of the value of the transportation provided. Applies such provision to the transportation of valueless material from a point in the United States to a point on the high seas within the Exclusive Economic Zone (EEZ).

Amends Federal law to make applicable to the towing of a vessel transporting valueless material from a point in the United States to a point on the high seas within the EEZ current provisions prohibiting the towing of vessels by vessels not owned by a citizen of the United States and documented under provisions of Federal law.

Permits a documented vessel to transport municipal sewage sludge to a deepwater disposal site designated under the Marine Protection, Research, and Sanctuaries Act of 1972, provided such vessel, as of enactment of this Act, is under construction or contract for use by a municipality for the transportation of sewage sludge.

Declares that, for purposes of a provision of the Merchant Marine Act, 1936 regarding forbidden practices in coastwise service, a vessel documented under U.S. laws and under contract with a municipality for the transportation of sewage sludge as of enactment of this Act is not a vessel engaged in domestic intercoastal or coastwise service. Provides that such vessels are bound by a provision prohibiting the diversion of any money, property, or other thing of value, used in foreign-trade operations, for which a subsidy is paid by the United States, into any coastwise or intercoastal operations.