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Capital Construction Fund Revision
Plain English Summary
The Maritime Administration (MARAD) is updating its rules for the Capital Construction Fund (CCF) Program. These changes will now allow all U.S.-built vessels involved in domestic or foreign trade to apply for the program, remove restrictions on certain geographic areas, and clarify how long reconstruction projects can take. Additionally, the new rules will help close inactive accounts and update outdated information. Insurance agents should be aware of these changes as they may affect clients involved in maritime commerce and advise them accordingly.
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MARAD proposes to revise its regulations governing the filing of applications and administration of Capital Construction Fund (CCF) Program accounts. The proposed rule would (i) conform the regulations to recent statutory amendments extending CCF Program application to all U.S. built vessels engaged in United States domestic or foreign commerce, (ii) eliminate limitations on CCF Program availability to certain geographic trades, (iii) clarify the maximum allowable completion time for reconstruction projects, and (iv) provide for funds to be used for acquisitions under certain circumstances. In addition, the NPRM proposes a mechanism to terminate inactive accounts, accounts with a zero balance, and accounts where a CCF Program objective has failed to commence within a 10-year period. The proposed rule would also correct numerous citations, modernize text, update agency contact information, and remove obsolete references.