46 U.S.C. § 53402 — Establishment of the Tanker Security Fleet

(a) In General. The Secretary^* of Transportation, consulting the Secretary of Defense, must establish a fleet of active, commercially viable, militarily useful, privately owned product tank vessels. The fleet must meet national-defense and other security needs and maintain a United States presence in international commercial shipping. It must consist of privately owned vessels of the United States with operating agreements in effect under this chapter. It is called the “Tanker Security Fleet,” or the “Fleet.”

(b) Vessel^* Eligibility. A vessel is eligible for the Fleet only if it—

(1) meets the requirements under paragraph (1), (2), (3), or (4) of subsection (c);

(2) is operated, or, for a vessel to be constructed, will be operated, to provide transportation in United States foreign commerce^*;

(3) is self-propelled;

(4) is no more than 10 years old on the date it is first included in the Fleet;

(5) is determined by the Secretary of Defense to be suitable for United States national-defense or military use during war or a national emergency;

(6) is commercially viable, as determined by the Secretary of Transportation; and

(7) is—

(A) a vessel of the United States^*; or

(B) not a vessel of the United States, but—

(i) the vessel’s owner has demonstrated an intent to have the vessel documented under chapter 121 of this title if it is included in the Fleet; and

(ii) when an operating agreement is entered into under this chapter, the vessel is eligible for documentation under chapter 121 of this title.

(c) Requirements Regarding Citizenship of Owners, Charterers, and Operators.

(1) Vessels owned and operated by section 50501 citizens. A vessel meets this paragraph if, during the period of its operating agreement, one or more persons who are United States citizens under section 50501 of this title will own and operate it.

(2) Vessels owned by a section 50501 citizen or United States citizen trust^*, and chartered to a documentation citizen. A vessel meets this paragraph if—

(A) during the period of its operating agreement, it will be—

(i) owned by a person^* who is a United States citizen under section 50501 of this title or is a United States citizen trust; and

(ii) demise-chartered to a person—

(I) eligible to document the vessel under chapter 121 of this title;

(II) whose board chairman, chief executive officer, and majority of directors are United States citizens under section 50501 of this title, are appointed only with the Secretary of Transportation’s approval, and may be removed only with that approval; and

(III) that certifies to the Secretary of Transportation that no treaty, statute, regulation, or other law would prohibit the program participant^* for the vessel from carrying out its obligations under an operating agreement under this chapter;

(B) if the vessel will be demise-chartered to a person owned or controlled by another person who is not a United States citizen under section 50501 of this title, that other person agrees with the Secretary of Transportation not to influence the vessel’s operation in a way that would harm United States interests; and

(C) the Secretary of Transportation and the Secretary of Defense notify the listed Senate and House committees that they concur with the required certification and have reviewed and agree that no legal, operational, or other impediment would prohibit the owner or operator for the vessel from carrying out its obligations under an operating agreement under this chapter.

(3) Vessels owned and operated by a defense contractor. A vessel meets this paragraph if—

(A) during the period of its operating agreement, it will be owned and operated by a person that—

(i) is eligible to document a vessel under chapter 121 of this title;

(ii) operates or manages other vessels of the United States for the Secretary of Defense, or charters other vessels to the Secretary of Defense;

(iii) has entered into a special security agreement for this paragraph with the Secretary of Defense;

(iv) makes the certification described in paragraph (2)(A)(ii)(III); and

(v) if the vessel is described in paragraph (2)(B), enters into the agreement referred to in that paragraph; and

(B) the Secretary of Transportation and the Secretary of Defense notify the listed Senate and House committees that they concur with the certification required under subparagraph (A)(iv), and have reviewed and agree that no legal, operational, or other impediment would prohibit the program participant for the vessel from carrying out its obligations under an operating agreement under this chapter.

(4) Vessels owned by documentation citizens and chartered to section 50501 citizens. A vessel meets this paragraph if, during the period of its operating agreement, it will be—

(A) owned by a person eligible to document a vessel under chapter 121 of this title; and

(B) demise-chartered to a person who is a United States citizen under section 50501 of this title.

(d) Request by Secretary of Defense. The Secretary of Defense must ask the Secretary of Homeland Security to issue any waiver under section 501 of this title that the Secretary of Defense determines is necessary for this chapter.

(e) Vessel Standards.

(1) Certificate of inspection. A vessel used to provide oceangoing transportation qualifies for a certificate of inspection if the Secretary of the department in which the Coast Guard operates determines that the vessel meets subsection (b), but that on the date this section was enacted it was not documented under chapter 121, and if that Secretary determines that—

(A) the vessel is classed by, and designed under, the rules of the American Bureau of Shipping or another classification society accepted by the Commandant of the Coast Guard;

(B) the vessel complies with applicable international agreements and related guidelines, as determined by the country where it was documented immediately before becoming documented under chapter 121 of this title; and

(C) that country has not been identified by the Commandant of the Coast Guard as inadequately enforcing international vessel regulations as to that vessel.

(2) Continued eligibility for certificate. Subsection (a) does not apply to a vessel that has failed to comply with the applicable international agreements and related guidelines mentioned in paragraph (1)(B).

(3) Reliance on classification society.

(A) In general. The Commandant of the Coast Guard may rely on a certification from the American Bureau of Shipping or, subject to subparagraph (B), another classification society accepted by the Commandant to establish that the vessel complies with paragraph (1).

(B) Foreign classification society. The Commandant may accept certification from a foreign classification society under subparagraph (A) only—

(i) to the extent that the foreign country’s government gives the American Bureau of Shipping reciprocal access; and

(ii) if the foreign classification society has offices and keeps records in the United States.