You only need 360 days as an "Assistant engineer" while holding your 2AE to test for your 1AE. For your 1AE tests, the hp of the vessels you are working on does not matter.

Yes. The hp of the vessel determines your hp limitation. It's common for people to hold 1AE and 2AE with different hp limitations as well as a 3AE unlimited. There are three easy steps to calculate if you are going to have a hp limitation and what it will be:
1. Is 50% of your service while holding a 2AE MMC and serving as an Assistant engineer on vessels over 4000hp?
If Yes, then you qualify for 1AE Unlimited. If No, answer question 2 and 3. Whichever is greater will be the hp limitation on your license.
2. What is the maximum hp for 25% of your service while holding a 2AE MMC and serving as an Assistant engineer on vessels? In this case you round up to the nearest 1000hp.
An example would be that you have over 90 days but less than 180 days on a 6500hp vessel. Your 1AE would be limited to 7000hp until you removed the hp limitation.
3. What is the maximum hp for 50% of your service while holding a 2AE MMC and serving as an Assistant engineer on vessels? In this case you multiply the highest vessel hp that you have over 180 days on times 1.5 rounded up to the nearest 1000hp.
An example would be that you sea time is all on a vessel that is 3094hp. The calculation is 3094 * 1.5 = 4641. Your 1AE would be limited to 5000hp until you removed the hp limitation.
If you are going to have a horsepower limitation make sure you ask for the highest one. Do both calculations for your situation and know what you are going to be asking for as your upgrade.
Hp limitations are easy to remove. It is just sea time on the right horsepower vessels. The USCG NMC Checklist on this is really clear and lays out the three main ways for higher engineering licenses to remove a horsepower limitation.

We hope this made your life a little easier and if you have other questions the MM-SEAS team is always here to help!
MM-SEAS is free to use on your own and if you need some more personalized help you can upgrade to MM-SEAS Expert Access inside of the site.
No matter what, when you are ready to submit your application you can do it yourself, or you can hand the whole thing to us. An MM-SEAS Navita Navigator walks you through submitting in Navita, the Coast Guard's new submission portal, on a short video call. No computer, or not up for a video call? Our team gets your application submitted to the Coast Guard for you anyway. A Stress-Free MMC is $399. Two MM-SEAS licensing experts check every page, we pay your Coast Guard fees at submission and charge your card so you never touch pay.gov, and we stay on it with the National Maritime Center until your credential is issued.
MM-SEAS Expert Access is $99 a year. It is your personal guidance counselor for USCG licensing: what training you need next, which sea time counts, and how to reach the credential you want, by phone, email, chat or a 1 on 1 video call. Expert Access members also get $50 off a Stress-Free MMC.
Nate Gilman is President and Co-Founder of MM-SEAS. He hawsepiped from the deck to a 3rd Mate Unlimited license with full STCW compliance over more than 15 years at sea, and is a veteran of the NOAA Commissioned Corps. He works directly with the National Maritime Center, USCG-approved training schools, and vessel operators on credentialing policy, and writes on sea service documentation, evaluation standards, and how mariners move up the license ladder.