Tammi 0%tam 

WASHINGTON, DC 20510

April 19, 2018

The Honorable Susan Collins The Honorable Jack Reed

Chairman Ranking Member

Senate Committee on Appropriations Senate Committee on Appropriations
Subcommittee on Transportation, Subcommittee on Transportation,
Housing and Urban Development Housing and Urban Development
184 Dirksen Senate Of?ce Building 125 Hart Senate Of?ce Building
Washington, DC. 20510 Washington, DC. 20510

Dear Chairman Collins and Ranking Member Reed:

As you begin consideration of the Fiscal Year 2019 Transportation, Housing and Urban
Development appropriations bill, we urge you to provide $35 million for the US. Department of
Transportation Maritime Administration (MARAD) Small Shipyard Grant Program. We applaud
your commitment to this program that helps modernize the country?s small shipyards and repair
facilities, while spurring American manufacturing and supporting local economies.

Small shipyards on our nation?s coasts and inland waterways are often considered the lifeblood
of the maritime community. Across the nation, small shipyards build and maintain more than
40,000 commercial workboats in the US. ?ag ?eet. Small shipyards maintain the workboat ?eet
to ensure maritime transport remains one of the safest and most energy-ef?cient forms of
transportation for both passengers and products. In this way, small shipyards are essential in
maintaining commerce in the United States and throughout the world. Small shipyards also build
and maintain vessels critical to transportation safety, including Coast Guard ships, dredges,
icebreakers, research and military vessels, as well as ?re and rescue boats.

The Small Shipyard Grant Program generates incentives for small shipyards to modernize and
repair facilities as well as make capital improvements to upgrade equipment and processes that
make them more ef?cient and competitive in the global marketplace. The grants fund a variety of
projects including infrastructure improvements, equipment upgrades, repairs, and
recon?gurations. Grants may also be used to support employee training programs to promote
technical skills, increasing workforce ef?ciency and productivity.

Additionally, small shipyard grants support American manufacturers and workers who provide
equipment for shipbuilding, routine maintenance, and repair services. The program provides
manufacturers with more opportunities to sell their products, and because Buy American
provisions are applied to grant awards, the program has the crucial bene?t of supporting
American-made equipment and well-paying jobs.

In 2017, Congress passed the National Defense Authorization Actfor Fiscal Year 20] 8 (PL.
115-91) reauthorizing this program for three years and increasing the annual authorization level
to $35 million. Competition for these grants shows a continued strong demand for Small
Shipyard Grant Program funding. In Fiscal Year 2017, MARAD received 93 applications

requesting approximately $127 million for the $10 million in available funds. It is clear many
shipyards would move forward with modernization projects, with the federal government as a
partner, if strong funding for the grant program is made available in Fiscal Year 2019.

In addition, demand for services at small shipyards is expected to increase over the next several
years as the U.S. Coast Guard?s new ?Subchapter regulations take effect, requiring shipyard
visits for previously uninspected towing vessels. The Small Shipyard Grant Program can serve as
an important tool to ensure that our shipyards have suf?cient equipment and technology to keep
up with this expected increased demand for services.

Strong funding for the Small Shipyard Grant Program is a win for America?s small shipyards,

equipment manufacturers, the workboat ?eet and jobs in all of these industries. Thank you for
your consideration.

Sincerely,
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