,,ii #aafth ,,congress #ast ,session ,s4 #aagg ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,april #aa1 #bjai ,ms4 ,murkowski 7for herself1 ,mr4 ,sullivan1 and ,mr4 ,king7 introduced the following bill2 which was read twice and referred to the ,committee on ,commerce1 ,science1 and ,transportation ,a ,,bill ,to establish a congressionally chartered seaway development corporation in the ,arctic1 consistent with customary international law1 with the intention of uniting ,arctic nations in a cooperative ,arctic shipping union1 where voluntary collective maritime shipping fees will help fund the infrastructural and environmental demands of safe and reliable shipping in the region4 #a4 ,short title ,this ,act may be cited as the ,shipping and ,environmental ,arctic ,leadership ,act or the ,,seal ,act4 #b4 ,definitions ,in this ,act3 7#a7 ,arctic ,the term ,arctic has the meaning given the term in section #aab of the ,arctic ,research and ,policy ,act of #aihd 7#ae ,u4,s4,c4 #daaa74 7#b7 ,arctic ,sea ,routes ,the term ,arctic ,sea ,routes means the international ,northern ,sea ,route1 the ,transpolar ,sea ,route1 and the ,northwest ,passage4 #c4 ,findings ,congress finds the following3 7#a7 ,the ,arctic seas have historically been considered impassable and impractical maritime routes1 but diminishing ,arctic sea ice1 better icebreaking technology1 and global demand for ,arctic resources has opened up opportunity for international trade routes through ,arctic ,ocean waters4 7#b7 ,according to the ,national ,oceanic and ,atmospheric ,administration1 over the last #bj years atmospheric temperatures have increased at a rate at least #c times the global average1 and as of #bjaa sea ice thickness was #db percent below what it was in #aigi4 ,if trends continue1 summers may produce ice-free waters in the ,arctic ,ocean by the late #bjcjs4 7#c7 ,the ,bering ,strait is experiencing significant increases in international traffic from vessels using the ,arctic ,sea ,routes4 ,increases in international traffic are projected to continue4 7#d7 ,while the ,arctic ,council's agreements on search and rescue1 spill prevention and response1 and initiatives through the ,international ,maritime ,organization to bring about a mandatory polar code are significant1 little or no cooperation yet exists in the ,arctic region to bring about needed maritime infrastructure1 nor do ,arctic coastal states and user states cooperate in establishing common seaway administration4 ,international coordination and investment in infrastructure for shipping routes1 icebreaker service and refuge1 ports1 spill prevention and response1 salvage1 and ,,lng bunkering1 would be collectively beneficial for all associated states1 the environment1 and global commerce4 7#e7 ,trans-,arctic shipping brings substantial commercial benefits4 ,shipping distance between ,europe and ,asia could be reduced by #d1ejj nautical miles1 saving a week's time and #dj percent in freight shipping distances compared to alternative routes4 ,through a voluntary tariff model1 user nations from the remainder of the world can be invited to share with ,arctic nations the capital and operating costs necessary for safe and reliable infrastructure in the ,arctic ,ocean and its approaches4 7#f7 ,as this new frontier emerges1 the ,united ,states should assume leadership to ensure safe1 secure1 and reliable ,arctic seaway development1 and further to ensure that the ,arctic becomes a place of international cooperation rather than competition or conflict4 7#g7 ,setting precedent for cooperative infrastructure investment and greater reliability in domestic and international shipping is the ,st4 ,lawrence ,seaway between the ,united ,states and ,canada1 which links the ,great ,lakes to the ,atlantic ,ocean4 ,the ,seaway operates in internal waters1 rather than international waters1 but offers ship operators a coordinated suite of services1 similar to what is needed in the ,arctic ,ocean and its approaches4 7#h7 ,the ,st4 ,lawrence ,seaway ,development ,corporation1 established in #aied1 is a model for a ,united ,states ,government corporation that constructs1 operates1 and maintains sea passage infrastructure in water bodies shared with another nation4 ,it corresponds with its ,canadian counterpart1 the ,st4 ,lawrence ,seaway ,management ,corporation4 ,in #bjaj the ,great ,lakes-,seaway system generated-- 7,a7 #bbf1hcc ,united ,states and ,canadian jobs2 7,b7 #cc1fjj1jjj1jjj in business revenue from maritime activity2 and 7,c7 #d1fjj1jjj1jjj in ,federal1 ,state1 provincial1 and local tax revenue from maritime activity4 7#i7 ,in #bjab the ,russian ,duma passed legislation to create a single management agency called the ,northern ,sea ,route ,administration1 to manage all infrastructural and navigational services across what ,russia claims to be its ,arctic territorial waters4 ,this is a claim the ,united ,states and many other nations do not recognize4 ,russia is investing heavily into ,northern ,sea ,route infrastructure1 anticipating an increase in cargo transport from #a1hjj1jjj tons in #bjaj to #fd1jjj1jjj tons by #bjbj4 ,the ,russian ,northern ,sea ,route ,administration charges escort fees for international cargo ships as high as #ejj1jjj1 and aims to collect a share of revenues that might otherwise be paid as tariffs on the ,suez ,canal where collections totaled #e1cjj1jjj1jjj in #bjag4 7#aj7 ,the ,russian ,federation has considered legislation to require all energy traffic on the ,northern ,sea ,route to be carried by ,russian-flagged ships4 7#aa7 ,rising transit in ,united ,states ,arctic region waters necessitates a management agency and infrastructure investment in a transportation system4 ,as identified in the ,ten-,year ,prioritization of ,infrastructure ,needs in the ,united ,states ,arctic prepared by the ,united ,states ,committee on the ,marine ,transportation ,system ,arctic ,transportation ,integrated ,action ,team for the ,united ,states ,department of ,transportation1 there is a significant infrastructure gap in the ,arctic in the areas of-- 7,a7 navigable waterways1 such as waterway coordination with international stakeholders2 7,b7 physical infrastructure1 such as infrastructure around ,port ,clarence and ,port of ,nome in ,alaska to support commercial activity2 7,c7 informational infrastructure1 such as up-to-date nautical charts and electronic aids to navigation2 7,d7 ,,mts ,response ,services1 such as emergency response and rescue capabilities2 and 7,e7 vessel operations1 such as ,united ,states icebreaking capabilities4 7#ab7 ,the ,arctic offers economic value to the ,united ,states through commercial shipping and international trade routes1 energy1 mining1 commercial fishing1 tourism1 and tug and barge operations4 ,the ,arctic offers environmental and cultural value through ecological significance1 unique wildlife1 indigenous peoples and ,alaskan communities1 and scientific research4 ,the ,arctic offers security value to the ,united ,states as a way to move ,united ,states vessels and forces between the world's oceans1 and through other waters4 ,while the ,united ,states does not support mandatory tariffs in this region1 it does not currently have a way to collect voluntary tariffs for providing assistance to vessels crossing through the ,bering ,strait or the ,arctic ,ocean4 7#ac7 ,reinvesting into infrastructural and environmental demands with funds collected from international shipping fees will be essential to the long-term viability of the ,arctic4 7#ad7 ,environmental protection of the ,arctic takes the form of pollution prevention1 clean-up1 and accident response4 7#ae7 ,arctic prevention and clean-up involves all feasible efforts to remove or mitigate pollutants from the environment4 ,arctic ecosystems are more susceptible to biological damage from pollutants than more temperate climates4 ,existing removable hazards1 such as dumped radioactive waste and other toxic substances1 must be handled4 7#af7 ,arctic pollution prevention takes collective adherence to regulations and best practices4 ,united ,states leadership on clean practices in the ,arctic will be essential in the ecosystem's sustainability4 ,provision of bunkering facilities to enable the use of clean ,,lng fuels for ships will strengthen pollution prevention4 7#ag7 ,environmental response capabilities in the ,arctic are weak1 sparse1 and have only begun to be internationally coordinated4 ,transportation of oil and gas and maritime traffic is expected to increase significantly in the ,arctic1 which will increase the risk of accidents4 ,the ,arctic region is particularly vulnerable to pollution from oil and gas shipping4 ,because oil spills in ice are considerably more complicated to address than oil spills in open waters1 effects of oil spills could remain in the region for periods of #ej years or more4 ,in #bjaj the ,international ,maritime ,organization passed ,guidelines for ,ships ,operating in ,polar ,waters1 citing1 the need to ensure that all ship systems both are capable of functioning effectively under anticipated operating conditions and provide adequate levels of safety in accident and emergency situations4 7#ah7 ,in ,june #bjad1 the ,government ,accountability ,office 7,,gao7 reported that the ,coast ,guard was experiencing a gap in its heavy icebreaking capacity and was without a heavy icebreaker from #bjaj to #bjac4 ,tariffs collected through this system can help ,united ,states public and private icebreaker capacity grow1 and induce additional private investment in marine safety and services4 7#ai7 ,during the most recent ,united ,states ,chairmanship of the ,arctic ,council1 ,may #bjag1 the ,arctic ,council's ,protection of the ,arctic ,marine ,environment ,working ,group established an ,arctic ,shipping ,best ,practices ,information ,forum to help serve as a resource hub of information1 guidance1 and guidelines that aid decision-makers involved in ,arctic maritime navigation and those affected by maritime operations related to the ,polar ,code4 ,insurers of ,arctic shipping encouraged this ,forum to help bring about safer and more reliable shipping in the ,arctic region1 and to reduce losses4 ,this ,act is in support of the same goals4 #d4 ,creation of the ,arctic ,seaway ,development ,corporation ,there is hereby created1 subject to the direction and supervision of the ,secretary of ,transportation1 in conjunction with the ,secretary of ,state1 the ,secretary of ,defense operating through the ,secretary of the ,army1 and the ,secretary of the ,department in which the ,coast ,guard is operating1 a body corporate to be known as the ,arctic ,seaway ,development ,corporation 7hereinafter referred to as the ,corporation74 #e4 ,services 7a7 ,in general ,the ,secretary of ,transportation1 in conjunction with the ,secretary of the ,department in which the ,coast ,guard is operating1 the ,secretary of ,defense acting through the ,secretary of the ,army1 and the ,secretary of ,state1 shall approve services for which the ,corporation established under section #d may charge a toll to vessels4 7b7 ,management 7#a7 ,board of directors 7,a7 ,establishment ,there is established the ,board of ,directors of the ,corporation 7hereinafter referred to as the ,board of ,directors71 which shall be composed of #i members as described in subparagraph 7,b74 7,b7 ,composition ,the ,board of ,directors shall consist of-- 7i7 the ,chair of the ,board of ,directors to be appointed and designated by the ,president of the ,united ,states2 7ii7 the ,administrator of the ,national ,oceanic and ,atmospheric ,administration2 7iii7 the ,secretary of ,state2 7iv7 the ,secretary of ,transportation2 7v7 the ,secretary of the ,department in which the ,coast ,guard is operating2 and 7vi7 #d senior representatives nominated by the ,governor of ,alaska and designated by the ,secretary of ,transportation1 of whom-- 7,i7 #a shall represent the government of the ,state of ,alaska2 7,,ii7 #a shall represent the ,alaska business community2 7,,iii7 #a shall represent the ,alaskan coastal and subsistence communities affected by the ,corporation2 and 7,,iv7 #a shall represent ,alaskan maritime labor organizations4 7,c7 ,terms ,each member of the ,board of ,directors described in subparagraph 7,b77vi7 shall serve for a #d-year term or until a new member is designated4 7,d7 ,meetings ,the ,board of ,directors shall-- 7i7 meet at the call of the ,chair1 not less often than once every #ij days2 and 7ii7 conduct an annual meeting of the ,corporation in the ,state of ,alaska4 7,e7 ,functions ,the ,board of ,directors shall develop a set of policy recommendations regarding the facilities and infrastructure necessary to provide services related to safety and environmental protection and response for vessels transiting the ,arctic ,sea ,routes1 including-- 7i7 the establishment of rules of measurement for vessels and cargo on which rates of charges or tolls for the services provided by the ,corporation are based2 and 7ii7 all other matters which the ,board of ,directors determines to be relevant4 7#b7 ,administrator ,the management of the ,corporation shall be vested in an ,administrator who shall be appointed by the ,board of ,directors with the approval of the ,secretary of ,transportation4 #f4 ,functions of the ,arctic ,seaway ,development ,corporation ,the functions of the ,corporation are to provide services related to safety and environmental protection and response approved by the ,secretary under section #e1 including-- 7#a7 constructing deep water port facilities in the ,arctic to provide services necessary to manage and facilitate increased marine traffic1 including cargo1 tugs1 commercial fuel bunkering1 and icebreaker vessels in the ,arctic2 7#b7 maintaining a relationship with east and west coast ports serving ,arctic trade2 7#c7 collaborating with the ,state of ,alaska and the ,united ,states ,coast ,guard in the provision of icebreaker services1 including the provision of facilities1 necessary for safe navigation of the ,arctic2 7#d7 leasing private icebreakers and cooperating in offering services with icebreakers of other nations2 7#e7 where necessary1 constructing places of refuge and aids to navigation within the ,arctic2 7#f7 making charts showing the locations of places of refuge readily available to all vessels operating in the ,arctic2 and 7#g7 establishing strong ties among ,united ,states residents of the ,arctic region1 ,arctic shippers1 and the maritime insurance industry by creating a system of maritime transportation in the ,arctic that prevents loss of life1 vessels1 and cargo1 and increases reliability of shipping in the ,arctic4 #g4 ,general powers of the ,corporation ,for the purpose of carrying out its functions under this ,act1 the ,corporation-- 7#a7 shall have succession in its corporate name2 7#b7 may adopt and use a corporate seal1 which shall be judicially noticed2 7#c7 may sue and be sued in its corporate name2 7#d7 may adopt1 amend1 and repeal bylaws1 rules1 and regulations governing the manner in which its business may be conducted and the powers vested in it may be exercised2 7#e7 may make and carry out contracts or agreements as are necessary or advisable in the conduct of its business2 7#f7 shall be held to be an inhabitant and resident of the third judicial district of the ,state of ,alaska within the meaning on the laws of the ,united ,states relating to the venue of civil suits2 7#g7 may appoint and fix compensation1 in accordance with the provisions of subpart ,d of part ,,iii of title #e1 ,united ,states ,code1 for such officers1 attorneys1 and employees as may be necessary for the conduct of its business1 defining their authority and duties1 and delegating to them such powers vested in the ,corporation as the ,administrator may determine2 7#h7 may acquire1 by purchase1 lease1 property1 and any interest therein1 and may sell1 lease1 or otherwise dispose of such property1 as the ,administrator deems necessary for the conduct of its business2 7#i7 shall determine the character and necessity for its obligations and expenditures1 and the manner in which they shall be incurred1 allowed1 and paid1 subject to provisions of law specifically applicable to government corporations2 7#aj7 may impose1 retain and expend a toll to provide for safety and environmental protection and response services provided by the ,corporation and to carry out services approved by the ,secretary under section #e2 7#aa7 may provide services and facilities1 at reasonable prices1 to vessels operating in the ,arctic2 7#ab7 if the ,united ,states portion of the revenue from the tolls charged to the users of any services provided under this section is applied solely towards the safety and environmental protection and response services to vessels operating on the ,arctic ,sea ,routes as specified in paragraph 7#aa71 may participate with international entities in the ownership and operation of a tolling company1 and may lease icebreakers1 and enlist and return assets2 7#ac7 shall be credited with amounts received from any of the activities authorized under paragraphs 7#aj7 and 7#aa72 7#ad7 shall publish charts of locations of places of refuge to be made readily available to all vessel voyaging north of the ,bering ,straight in the interest of ensuring vessel safety2 and 7#ae7 shall carry out other functions considered relevant by the ,secretary of ,transportation1 in conjunction with the ,secretary of the ,department in which the ,coast ,guard is operating1 the ,secretary of ,defense acting through the ,secretary of the ,army1 and the ,secretary of ,state4 #h4 ,bonds2 issuance2 maturity2 redemption2 interest2 purchase of obligations by the ,secretary of ,treasury 7a7 ,in general ,to finance its activities1 the ,corporation may issue revenue bonds payable from corporate revenue to the ,secretary of the ,treasury4 7b7 ,total value ,the total value of all bonds issued as described in subsection 7a7 shall not exceed a sum that shall be determined by the ,secretary of ,transportation in conjunction with the ,secretary of the ,treasury4 7c7 ,maturity dates ,bonds issued as described in subsection 7a7 shall have maturity dates agreed upon by the ,corporation and the ,secretary of the ,treasury that shall not be in excess of #ej years4 ,the obligations on such bonds may be redeemable at the option of the ,corporation before the maturity in such a manner as may be stipulated in such obligations1 but the obligations thus redeemed shall not be refinanced by the ,corporation4 7d7 ,coordination with title #ca 7#a7 ,authority to use proceeds from sale of ,treasury securities ,for the purpose of purchasing obligations of the ,corporation1 the ,secretary of the ,treasury may use as a public debt transaction the proceeds from the sale by the ,secretary of any securities issued under chapter #ca of title #ca1 ,united ,states ,code1 and the purposes for which securities may be issued under such chapter are extended to include such purchases4 7#b7 ,treatment of transactions ,all purchases and sales by the ,secretary of the ,treasury of obligations issued by the ,corporation under this section shall be treated as public debt transactions of the ,united ,states4 #i4 ,reports 7a7 ,in general ,not later than #a year after the outset of corporate activities of the ,corporation1 the ,corporation shall submit a special report to ,congress regarding its general operations4 7b7 ,additional reports 7#a7 ,new proposals ,in addition to the report described in subsection 7a71 the ,corporation shall submit to ,congress a special report whenever there is proposed a new feature1 facility1 design1 or phase of the ,corporation involving an estimated value exceeding #a1jjj1jjj1 that shall include justification for the new feature1 facility1 design1 or phase4 7#b7 ,progress reports ,the ,corporation shall submit reports upon the request of the ,board of ,directors1 the ,president1 or ,congress regarding progress of the ,corporation1 including financial reports regarding expenses or revenues1 extreme weather patterns in the ,arctic region1 or reports as determined necessary by ,congress4 ,such reports shall be submitted not later than #ahj days after the date of the initial request4 7#c7 ,environmental impact reports ,the ,board of ,directors may direct the ,corporation to compile detailed reports regarding the environmental impact of increased marine shipping within the ,arctic region4 ,such reports shall be submitted not later than #ahj days after the date of the initial request from the ,board of ,directors4 #aj4 ,the role of the ,department of ,state in facilitating international engagement 7a7 ,promoting international cooperation ,the ,secretary of ,state shall undertake a leadership role in engaging in multilateral dialogues with member and observer nations of the ,arctic ,council with the intention of encouraging cooperation in providing coordinated services for shipping in the ,arctic ,ocean and its approaches4 ,the ,corporation shall encourage cooperative and collaborative relationships with the member and observer nations of the ,arctic ,council in order to establish fair and reasonable tolls and1 where applicable1 joint facilities1 as described in section #g4 7b7 ,international fees and tolls ,the ,corporation is hereby authorized and instructed to waive fees and tolls as necessary for international cooperation4