Extend the Duration of U.S. Cruising Licenses for Large Recreational Vessels
Issue: The inability to obtain a successive or the extension of a U.S. cruising license for a large recreational vessel severely limits the economic benefits of having these vessels operate in U.S. waters. Background: • The recreational vessel industry is an important part of the U.S. economy offering careers in manufacturing, hospitality & service, and technology fields. The economic and jobs impact is significant. Increasing the opportunity for more recreational vessels increases this sector of the economy. Specifically each large recreational vessel spins off significant benefits in additional jobs, shipyard repair and refurbishing work, provisioning, and impact on local economies. • The economic and jobs impact is significant. The United States accounts for approximately 20% of the world superyacht market. The large yacht fleet is estimated to be close to 4200 vessels with an estimated 40% to 50% of those vessels owned by Americans. However the majority of those vessels are flagged outside the United States. The U.S. industry encompasses over 1100 companies employing close to 28,800 workers and the estimated economic impact in the United States is close to $6 billion. Each large recreational vessel spins off significant benefits in additional jobs, shipyard repair and refurbishing work, provisioning, and impact on local economies. For example, a large yacht (24 meters and up) spends roughly 10% to 15% of its total value each year on various services. That equates to $500,000 to $1 million or more in spending per year per vessel. Moving a recreational vessel out of U.S. waters often severs this relationship with the U.S. economy. Either these vessels do not return or their return is significantly delayed, thus limiting the economic benefits. CBP Cruising License Policy: Under CBP policy, non-U.S. residents are not eligible for successive cruising licenses. • Upon expiration of a U.S. cruising license, a pleasure vessel is not entitled to another cruising license until the vessel: Again arrives in the United States from a foreign port or place; and More than 15 days have elapsed since the expiration of the vessel’s previous Cruising License. • Note: U.S. residents and resident aliens may apply for successive cruising licenses if their foreignflag vessel was made in the U.S. provided that the vessel is documented under the laws of a recognized country. • An extension of the time under a cruising license for up to two years has been discussed with CBP in the past. Action: Request CBP to modify the current regulatory regime to remove this significant barrier to large vessels by offering extended or successive cruising permits for these vessels.
MARAD Grants for Recreational Vessel Shipyards Would Significantly Impact the U.S. Economy and Create Jobs Issue: A lack of grants to shipyards that work on recreational vessels shows a tremendous misunderstanding exists about shipyards that work on recreational vessels and their significant role in overall maritime community and U.S. economy. Background: •
The recreational vessel industry is an integral part of the U.S. economy offering opportunities in the maritime and recreational sectors.
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The United States accounts for approximately 20% of the world superyacht market encompassing over 1100 companies employing close to 28,800 workers. The estimated economic impact in the United States is close to $6 billion.
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The economic and jobs impact is significant. Increasing the opportunity for more recreational vessels increases this sector of the economy.
Specifically each large recreational vessel spins off significant jobs, shipyard repair and refurbishing work, provisioning, and impact on local economies. It’s a true ripple effect.
A large vessel (24 meters and up) spends roughly 10 percent to 15 percent of its total value each year on various services. That equates to $500,000 to $1 million or more in spending per year per vessel
Recreational vessel shipyards are a growing and expanding part of the maritime industry.
MARAD Grants: •
The U.S. Maritime Administration has a grant program to support and revitalize the U.S. shipbuilding capacity.
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MARAD grants have not been awarded to recreational vessel shipyards that build and repair recreational vessels.
Action: The U. S. Maritime Administration should recognize the significant economic impact of recreational vessels on the U.S. economy by making grants to the recreational vessel shipbuilding and repair facilities to bolster the expansion of this segment of the U.S. maritime industry.
Support Modernized Waterways Infrastructure
Issue: A long-term comprehensive solution is needed to provide the U.S. Army Corps of Engineers with adequate construction and operation & maintenance funding to attract large recreational vessels to the United States and to support and maintain the significant jobs and economic impact they generate. Background: Deep water ports and a modern, well-maintained lock and dam infrastructure are two key elements that support the estimated $6 billion superyacht industry in the United States. Consequently, Increasing the opportunity for more large recreational vessels increases this sector of the economy. Authorization: To address this national need, two bills have been introduced with bi-partisan support. In the Senate, Senators Barbara Boxer and David Vitter brought forward S. 601 (Water Resources Development Act (WRDA)). In the House, Reps. Bill Shuster and Nick Rahall introduced H.R. 3080 (Water Resources Reform and Development Act (WRRDA)). Both bills have passed in each chamber and are now being reconciled in conference. •
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Both bills set in motion a comprehensive series of project design and delivery reforms developed by the Inland Waterways User Board. Additionally, both bills relieve the Inland Waterways Trust Fund (IWTF) from the burden of funding the severely over-budget Olmsted lock and dam project, thereby making revenues available for other critical waterway infrastructure projects. However, an essential aspect of the Capital Development Plan that will not be contained in WRDA is predicated on timely and bipartisan Congressional leadership: recapitalization of the IWTF. Because of the Olmsted project’s drain on the trust fund, the IWTF must be replenished in an expedited timeframe through a diesel fuel tax increase.
Appropriations: Annual appropriations also play a significant role in maintaining dredged channels for recreational and commercial vessels. • The Obama Administration’s FY 2015 budget calls for a 32 percent cut in U.S. Army Corps of Engineers construction funding. • If enacted, this decrease would severely impair the Corps’ ability to move forward with needed projects and increase the possibility of critical infrastructure failure on navigable waterways. Action Needed: The U.S. Superyacht Association urges Congress to: • Complete a WRDA – WRRDA conference agreement expeditiously; th • Increase the diesel fuel fee in tax legislation for the IWTF before the end of the 113 Congress; • Restrict IWTF funding for the Olmsted project in the Energy and Water Appropriations bill; and • Support full funding for both the Corps’ construction and O&M accounts
U.S. Laws and Regulations Should Be Changed to Facilitate the Increase of Larger Recreational Vessels Operating in U.S. Waters Issue: The current regulatory tonnage limit of 300 gross tons to register as a recreational vessel under the U.S. flag limits the economic impact of this sector and hurts the overall U.S. economy. Discussion: The recreational vessel industry accounts for significant economic impacts in the marine trades and overall U.S. economy. Accordingly, more superyachts in the U.S. mean more opportunities to increase market share and reap the benefit of the economic impact of these economic generators. • The United States accounts for approximately 20 percent of the world Superyacht market encompassing over 1100 companies employing close to 28,800 workers. • The estimated economic impact of superyachts alone in the United States is close to $6 billion. • Each large recreational vessel spins off significant benefits in additional jobs, shipyard repair and refurbishing work, provisioning, and impact on local economies. • A large yacht (24 meters and up) spends roughly 10 percent to 15 percent of its total value each year on various services. That equates to $500,000 to $1 million or more in spending per year per vessel. • The large yacht fleet is estimated to be close to 4200 vessels with an estimated 40 percent to 50 percent of those vessels owned by Americans. However the majority of those vessels are flagged outside the United States. Objective: Develop a comprehensive regulatory regime centered on an increase in the regulatory tonnage limit of 300 gross ton to facilitate the more U. S. flag recreational vessels of a larger tonnage operating within U. S. waters for longer periods of time. Regulations that apply to large recreational vessels apply to inspection and manning standards as well as documentation. Elements of this effort would be: • A new subchapter in 46 CFR could be created to accomplish this. • Provide for the documentation larger vessels. • Create structural and safety standards for recreational vessels. • Establish manning standards. Success Story: The M/Y Freedom was recently flagged under the U.S. flag using the American Bureau of Shipping Guide for Building and Classing Motor Pleasure Yachts as an equivalent standard to the requirements of 46 CFR. • This approach suggests that standards can be developed to facilitate the placing of additional recreational vessels of larger than 300 gross tons under the U.S. flag. Action: To facilitate the flagging of large recreational vessels of 300 gross tons and larger under the U.S. flag to increase the number operating in U.S. waters: (1) Ask the U. S. Coast Guard to develop an appropriate regulatory regime; and (2) Seek legislation from Congress as needed to provide the necessary authority.
More Bridge Closures for Increased All Aboard Florida Rail Traffic would have an Adverse Impact on Established Waterway Commerce Issue: Proposed increase in rail traffic over the New River and adjacent waterways bridges will result in more bridge closures potentially destroying vital commercial navigation and activities on those waterways if key concerns are not adequately addressed. Background: All Aboard Florida is a proposed express intercity passenger rail service connecting Miami, Ft. Lauderdale, and West Palm Beach to Orlando and points north. Freight would use the same tracks. The current bridges have very low clearance and additional closures will be required to accommodate the increased traffic. The issue with increased bridge closures would be restricted access to the marine boat yards and facilities upstream from the bridges, not to mention the disruption to tourism and commercial waterway traffic. In fact, the majority of South Florida’s recreational vessel repair facilities are upstream and there is an indication already that boat owners will go elsewhere to do their repairs because of the bridge closures to permit increase train traffic. Access to boat trade shows and other events is essential. In South Florida, the marine industry is a $8.9 billion economic engine with 107 thousand jobs and activity that are highly mobile to locations that are more convenient to access. The boating experience in South Florida is a very significant part of that industry. Area of Impact: The increased rail traffic over the New River and adjacent waterways (St. Lucie and Loxahatchee Rivers) will severely and negatively impact the navigation upstream from the two train bridges, particularly for vessel repair facilities and commercial tug and barge traffic, as well the recreational boating community. Remaining Concerns: While All Aboard Florida has been conducting meetings for public input, because of the affect on the maritime community, the following questions still must be addressed: • What construction/alteration and permitting is needed on the bridges? What is the status of proposed new positive train control signaling, the implementation of an onsite bridge tender, a bridge upgrade, and other improvements? How long will these take exactly? • Are all agencies with jurisdiction on board the project? Which ones and POCs. • How will traffic be divided up? How much is passenger/commuter and freight? • What is the economic impact on the marine boatyards and facilities upstream? • What are the proposed bridge opening schedules to facilitate the established marine use of the waterway? Is adequate mooring available for waiting vessels? • Are there alternative routes to minimize congestion? Is it feasible to shift the freight traffic to routes west of the affected navigable waters and urban areas. Action Needed: More coordination and input is needed up front to assure that the bridge closings will not choke off established critical navigation on the waterways and drive jobs and economic activity out of the South Florida market. Such things as a bridge tender, the bridge default position as up, a minimum and predictable number of minutes the bridge is in up position of 40 minutes, and signal and PTC upgrades are absolutely essential to preserve this Florida targeted industry.