§294.15. Initial award of TSP Operating Agreements.
46 C.F.R. § 294.15
Number of agreements. The Secretary, in concurrence with the Secretary of War, may award up to ten TSP Operating Agreements for the operation of product tank vessels from among those applications submitted by qualified Applicants. If the Secretary and the Secretary of War are unable to select ten vessels for inclusion in the TSP Fleet from their initial review of applications, they may accept additional applications for review to ensure that the Secretary can award ten TSP Operating Agreements.
Vessel selection priority. In consideration of the applications, the Secretary and the Secretary of War will consider each Applicant's vessel(s)'s qualifications as they relate to subpart B of this part and will give priority to applications based on the criteria in paragraphs (b)(1) through (4) of this section, in order of priority:
Vessel capabilities, as established by the Secretary of War;
Applicant's record of vessel ownership and operation of tanker vessels;
Applicant's citizenship, with preference for section 50501 citizens; and
Location of vessel construction, with preference for vessels built in the United States.
Consideration of applications requesting an age waiver. If an Applicant applies for a TSP Operating Agreement under the provisions of this section, the Secretary and the Secretary of War will consider:
Whether the vessel is enrolled in its class society's CAP and has maintained a rating equivalent to ABS CAP 2 or better;
The vessel priority factors in paragraph (b) of this section for both the proposed non-compliant vessel and the vessel proposed to replace the non-compliant vessel within the initial 30 months of the TSP Operating Agreement; and
The feasibility of the Applicant's plan to obtain and operate the compliant replacement vessel within the initial 30 months of the TSP Operating Agreement.
Notification to Applicants. After the Secretary, in concurrence with the Secretary of War, has selected those vessels to be included in the TSP Fleet, the Secretary will notify all Applicants as to whether their applications were successful or unsuccessful.
For each successful application, the Secretary will extend an offer to the Applicant to enter into one or more TSP Operating Agreements, based on the number of vessels selected from the Applicant's application for inclusion into the TSP Fleet.
For each unsuccessful application, the Secretary will inform the Applicant of the reason(s) why the application was unsuccessful.
Notes, amendments, and revision history
Authority
Authority: 46 U.S.C. ch. 534, 49 CFR 1.93.
Source
Source: 91 FR 37326, June 23, 2026, unless otherwise noted.