1. (a) Eligible vessel. A vessel is eligible to be included in an MSP Operating Agreement if:

   1. (1) The vessel is:

      1. (i) Determined by the SecDef to be suitable for use by the United States for national defense or military purposes in time of war or national emergency; and
      2. (ii) Determined by the Secretary to be commercially viable;
   2. (2) The vessel is operated or, in the case of a vessel to be purchased or constructed, will be operated to provide transportation in the foreign commerce;

   3. (3) The vessel is self-propelled and—

      1. (i) Is a tank vessel that is 10 years of age or less on the date the vessel is included in the Fleet; or
      2. (ii) Is any other type of vessel that is 15 years of age or less on the date the vessel is included in the Fleet;

   4. (4) The vessel is:

      1. (i) A United States documented vessel under 46 U.S.C. chapter 121; or

      2. (ii) Not a United States-documented vessel under 46 U.S.C. chapter 121, but the owner of the vessel has demonstrated an intent to have the vessel documented under 46 U.S.C. chapter 121 at the time the vessel is to be included in the MSP fleet; and

         1. (A) The vessel is eligible for a certificate of inspection if the Secretary of the Department in which the United States Coast Guard is operating determines that:

            (1) The vessel is classed and designed in accordance with the rules of the American Bureau of Shipping (ABS) or another classification society accepted by such Secretary;

            (2) The vessel complies with applicable international agreements and associated guidelines as determined by the country in which the vessel was documented immediately before becoming a U.S.-flag vessel; and

            (3) The flag country has not been identified by such Secretary as inadequately enforcing international vessel regulations.

         2. (B) [Reserved]

2. (b) Waiver of age restriction of vessels. The SecDef, in conjunction with the Secretary, may waive the age restriction in paragraph (a) of this section if the Secretaries jointly determine that the waiver:

   1. (1) Is in the national interest;
   2. (2) Is appropriate to allow the maintenance of the economic viability of the vessel and any associated operating network; and
   3. (3) Is necessary due to the lack of availability of other vessels and operators that comply with the requirements of the MSA 2003.

3. (c) Telecommunications and other electronic equipment. The telecommunications and other electronic equipment on an existing vessel that is redocumented under the laws of the United States for operation under an MSP Operating Agreement shall be deemed to satisfy all Federal Communications Commission equipment certification requirements, if

   1. (1) Such equipment complies with all applicable international agreements and associated guidelines as determined by the country in which the vessel was documented immediately before becoming documented under the laws of the United States;
   2. (2) That country has not been identified by the Secretary as inadequately enforcing international regulations as to that vessel; and
   3. (3) At the end of its useful life, such equipment will be replaced with equipment that meets Federal Communications Commission equipment certification standards (see 47 CFR Chapter I).

[70 FR 55588, Sept. 22, 2005; 70 FR 59400, Oct. 12, 2005; 82 FR 56897, Dec. 1, 2017]