BIG time and other ways to get money for nothing

By Dan Natchez*

Other than the titles, I must admit I have no particular tie-ins here to these now somehow old songs by Peter Gabriel and Dire Straits, respectively, and to be clear, the ‘money for nothing’ I’m talking about will not often be quite for nothing, but it could definitely help keep your straits from becoming dire!

Each year, the marine industry faces more and more oversight from big brother. In some cases, that can be helpful and in other cases it can be challenging. Big brother has a job to do, but sometimes their approach can be quite daunting and can result in marinas playing catch up or accelerating capital projects to bring operations into compliance with the various regulations.

The best advice I can offer is to try to stay ahead of the game. That means implementing compliance in both operationally and costeffective ways. Sounds nice, but what does this mean and how does one pay for it, especially when things are tight?

Firstly, it requires having a fluid multi-year plan that integrates operations, maintenance, capital projects and forward thinking of how to obtain getting to the next level. In some respects, this can be relatively easy to do, but more often than not gets widely overlooked.

The second approach typically requires a bit more doing, but while big brother watches over all of us, sometimes the government powers that be also try to be helpful in providing funding for various regulatory compliance initiatives and/or desired development/ redevelopment – therein the ‘money for not quite nothing’. The biggest issue for many to deal with in getting the cash is the time it takes, often long, to secure the approvals, even when the particular agency really likes the project. That is where having the multi-year plan for improvements is beneficial.

It should also be noted that for most fundable projects one needs to get through the paperwork and approval process prior to undertaking the project. Retroactive reimbursement is almost unheard of in US governmental funding, with one possible exception being the Federal Emergency Management Agency (FEMA), but even then there are steps to be taken before funds can be spent and be reimbursable. Naturally, more often than not there are conditions and strings attached to the funding. There are specific equipment programs, as well as operational programs.

BIG program

Yes, this is the ‘BIG’ in ‘BIG Time’ – the US Boating Infrastructure Grant program, which is a Federal program run through the US Fish & Wildlife Service and largely administered by individual states to provide funding to promote nautical tourism and for greater access to the recreational, cultural, historic, scenic and natural resources within the US for boats that are 26 ft or more in length (large cruising boats). The program is aimed at nontrailerable transient boating with stays not exceeding 15 days. The funding is for facilities construction or renovation projects that are designed to last at least 20 years, are in waters with greater than or equal to 6 ft of depth at the lowest tide and that provide security, safety and service (including a pump-out station within two miles for overnight facilities).

The program is divided into two segments. Tier 1 is for funding of up to $200,000 that is decided by a state in that state’s competition, but the maximum of the total moneys available under Tier 1 per year per state is $200,000 per year. Tier 2 is for funding up to $1,500,000 per grant, which is based on a national competition (multiple grants to a given entity are allowed, but must be in separate years). For the 2022 cycle, 13 grants were awarded ranging from $208,000 to the $1.5 million limit, for a total of just over $15 million.

The funding can include: (a) boat berths, piers, mooring buoys, floating docks, dinghy docks, day docks and other structures for boats to tie-up and gain access to the shore or services; (b) fuel stations, restrooms, showers, utilities and other amenities for transient-boater convenience; (c) lighting, communications, buoys, beacons, signals, markers, signs and other means to support safe boating and give information to aid boaters; (d) breakwaters, sea walls and other physical improvements to allow an area to offer a harbour of safe refuge; and/or (e) equipment and structures for collecting, disposing of or recycling liquid or solid waste from eligible vessels or for eligible users.

Each state can make its own determination of additional requirements – for instance, some states have reserved the Tier 1 funds for state-owned facilities. Applicants’ minimum funding requirement is 25%, but projects with a match higher than 25% will receive additional points during evaluation. The matching funds for the 2022 awardees ranged from a low of about 35% for Port Townsend, Washington, to a high of roughly 152% for Safe Harbor’s Port Royal Marina in South Carolina.

This program requires a wellthought-out presentation and while it is a lengthy process and faces a rigorous review and competition, it can be a major source of funding for meaningful projects.

Pump-outs

One of the easiest and wellfunded programs in the US is for pump-out facilities under the Clean Vessel Act, where today funding can be for up to 75% of the costs of construction, renovation, operation and maintenance of pump-out stations and waste reception facilities to meet the needs of recreational boaters. This can involve much more than just the cost of the pump-out device – it can include consultants and professionals for the design and obtaining permits, infrastructure (including site preparation, signage, trenching and piping), as well as equipment, installation, personnel to operate the facilities and maintenance costs. The 25% that must be funded by the applicant can be in terms of actual expenditures, as well as in-house labour and in-kind services. A major string for this (and other federallyfunded projects these days) is that all equipment, steel, etc, must be made in the US. Additional strings are that the pump-out must be

One of the easiest and well-funded programs in the US is for pump-out facilities under the Clean Vessel Act, where today funding can be for up to 75% of the costs of construction, renovation, operation and maintenance of pumpout stations and waste reception facilities to meet the needs of recreational boaters open for use by the public and if a charge is made for its usage, it cannot exceed $5.00. Since most facilities tend to charge little if anything for pump-outs, this has not tended to be an issue for most applicants. This program has been extremely effective in helping make pump-out facilities widely available throughout the country.

Both the pump-out and BIG programs, along with various other incentive and research programs, are funded through the WallopBreaux Trust Fund, which is a fund created by placement of a portion of the tax on boat fuel and various equipment sales for use in the recreational boating field.

As mentioned in my recent article on power washing in the June, 2022, issue of Marina Industry, for quite some time I have been advocating for the Clean Vessel Act to be expanded to include the handling of process water from power washing. To do it right can be very costly and many states these days seem to have unclaimed money left over for pump-outs. This would be a significant benefit to marinas and in helping to keep our waters clean.

Other approaches

There are other US federal and state approaches with potential funding sources such as FEMA for Building Resilient Infrastructure and Communities, as well as Flood Mitigation Assistance, Community Development Block Grants (CDBG), Disaster Recovery Programs, state economic development, waterways programs and other programs that foster specific goals. Every state and region has their own specific goals on how to upgrade and improve their waterfronts. It is a hot topic today, particularly with increasing emphasis on dealing with climate change and sea level rising. Many programs have funding resources and, of course, similar programs can be found in most countries.

Partnering with one or more public entities can also make funding available for various components of a project and/ or allow for reduced costs that otherwise might not be available to a private entity. Properly packaged proposals allow for accomplishment of various public and marina goals. Like most things in life, there are yin-yang conditions involved and business judgements have to be made as to the benefits and concerns, However, by and large, properly planned and partnered projects can be very meaningful to accomplishing short and longterm goals. On many occasions, breaking projects down into segments allows for partnering on specific segmented items. Such approaches could include things such as community protection for breakwaters, public access boardwalks and associated shoreline protection, green infrastructure, as well as utilities that extend to and beyond the marina.

Not long ago I was surprised to see a series of maintenance dredging projects receive funding under a program for improving coastal resiliency. Not what you would typically expect, but the projects were well-presented and the state agreed that they were eligible! Another approach one might consider on the dredging front if there is a Federal Project or similar government anchorage or channel of some sort adjacent to your site is to piggyback on the cost of testing, which is often excessive, if undertaken in conjunction with the testing for the Federal Project. Likewise, one may be able to obtain a lower per unit cost for testing and dredging by working with the same contractor undertaking the Federal Project. Similarly, working with others in the area and forming a dredging group can have comparable benefits.

Clean-up and development of brownfield areas may also be eligible for various sources of funding. A brownfield is a property the expansion, redevelopment or reuse of which may be complicated by the presence or potential presence of a hazardous substance, pollutant or other contaminant. There are various levels of funding available and working in partnerships with state, regional or local organisations (public or private) can be very helpful in obtaining funding. This has been readily undertaken for development of upland real estate projects, typically with creating parkland along the waterfront. It has also been successful for marina projects, but due to the length of time and other reasons, has not been as widely used as it might be. The biggest takeaways I can provide are to plan ahead, understand the objectives of various grant programs and carefully tailor one’s proposal to show how the desired project is beneficial in accomplishing those goals.

While there may be no such thing as a free lunch, as there are usually strings attached to funding sources (in fact, whether they be private or public), it just makes sense to take advantage of the carrots that big brother sometimes offers, as there is certainly no shortage of sticks. Applications for funding can be successful when properly presented and one fully understands the respective goals and ways to achieve them. Yes, it does take time, diligence and a lot of patience, but in the end, it can be well worth it. After all, who wouldn’t want some money for nothing – even if it isn’t quite free?

*Dan Natchez is President of Daniel S. Natchez and Associates Inc, a leading international environmental waterfront design consulting company specialising in the design of marinas and marina resorts throughout the world.Your comments and enquiries are invited on Tel: +1 914 698 5678,by Fax: +1 914 698 7321,by E-mail: dan.n@dsnainc.com or on his Website: www.dsnainc.com