252.12—Approval.
The Board may not approve an application for the payment of ODS until the Board has determined, in addition to other statutorily required determinations, that:
(a)
The operation of the vessel in an essential service is required to meet foreign-flag competition and to promote U.S. foreign commerce;
(b)
The vessel was built in the United States, or built foreign and determined to be eligible for ODS pursuant to the applicable law at the time it was built or acquired, and the vessel is documented under the laws of the United States.
(c)
The applicant owns or leases, or can and will build or purchase or lease, a vessel or vessels of the size, type, speed and number, and with the proper equipment required to enable him to operate in an essential service in such manner as may be necessary to meet competitive conditions and to promote U.S. foreign commerce;
(d)
The applicant possesses the ability, experience, financial resources and other qualifications necessary to enable him to conduct the proposed operation of the vessel to meet competitive conditions and promote U.S. foreign commerce;
(e)
The granting of the aid applied for is necessary to place the proposed operations of the vessel on a parity with the vessels of foreign competitors, and is reasonably calculated to carry out effectively the purposes and policy of the Act;
(f)
The vessel is of steel or other acceptable metal, is propelled by steam or motor, and is as nearly fireproof as practicable; and
(g)
The vessel is constructed in accordance with plans and specifications approved by the Board and Secretary of the Navy, with particular reference to economical conversion into an auxiliary naval vessel, or approved by the Board and Navy Department as otherwise useful to the United States in time of national emergency.
[40 FR 43490, Sept. 22, 1975, as amended at 51 FR 40425, Nov. 7, 1986]