110 STAT. 2636 PUBLIC LAW 104-201—SEPT. 23, 1996 Subtitle B—Naval Vessels and Shipyards SEC. 1021. REPEAL OF REQUIREMENT FOR CONTINUOUS APPLICABIL- ITY OF CONTRACTS FOR PHASED MAINTENANCE OF AE CLASS SHIPS. Section 1016 of the National Defense Authorization Act for Fiscal Year 1996 (Public Law 104-106; 110 Stat. 425) is repealed. SEC. 1022. FUNDING FOR SECOND AND THIRD MARITIME PREPOSrriONING SHIPS OUT OF NATIONAL DEFENSE SEA- LIFT FUND. (a) NATIONAL DEFENSE SEALIFT FUND. — To the extent provided in appropriations Acts, funds in the National Defense Sealift Fund may be obligated and expended for the purchase and conversion, or construction, of a total of three ships for the purpose of enhancing Marine Corps prepositioning ship squadrons. (b) AUTHORIZATION OF APPROPRIATIONS.—Of the amount authorized to be appropriated under section 302(2), $240,000,000 is authorized to be appropriated for the purpose stated in subsection (a). Wisconsin. SEC. 1023. TRANSFER OF CERTAIN OBSOLETE TUGBOATS OF THE NAVY. (a) REQUIREMENT TO TRANSFER VESSELS. —The Secretary of the Navy shall transfer the six obsolete tugboats of the Navy specified in subsection (b) to the Northeast Wisconsin • Railroad Transportation Commission, an instrumentality of the State of Wisconsin, if the Secretary determines that the tugboats are not needed for transfer, donation, or other disposal under title II of the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 481 et seq.). (b) VESSELS COVERED.— The requirement in subsection (a) applies to the six decommissioned Cherokee class tugboats, listed as of the date of the enactment of this Act as being surplus to the Navy, that are designated as ATF-105, ATF-110, ATF-149, ATF-158, ATF-159, and ATF-160. (c) CONDITION RELATING TO ENVIRONMENTAL COMPLIANCE.— The Secretary shall require as a condition of the transfer of a vessel under subsection (a) that use of the vessel by the Commission not commence until the terms of any necessary environmental compliance letter or agreement with respect to that vessel have been complied with. (d) ADDITIONAL TERMS AND CONDITIONS.—The Secretary may require such additional terms and conditions (including a requirement that the transfer be at no cost to the Government) in connection with the transfers required by subsection (a) as the Secretary considers appropriate. SEC. 1024. TRANSFER OF U.S.S. DRUM TO CITY OF VALLEJO, CALIFORNIA. (a) TRANSFER.—The Secretary of the Navy shall transfer the U.S.S. Drum (SSN-677) to the city of Vallejo, California, in accordance with this section and upon satisfactory completion of a ship donation application. Before making such transfer, the Secretary of the Navy shall remove from the vessel the reactor compartment and other classified and sensitive military equipment.