ABC Big Boats = Big Jobs 2018

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U.S. Laws and Regulations Should Be Changed to Facilitate the Increase of Larger Recreational Vessels Operating in U.S. Waters

Problem Statement: Current U.S. law limits recreational vessels to 300 gross tons (GT). Unfortunately, our economy suffers because these boats do not come to our waters and spend their dollars in our local communities.

Background: The recreational vessel industry accounts for significant economic impacts in the marine trades and overall U.S. economy. Accordingly, more large recreational vessels 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% of the world’s large recreational vessel market encompassing over 1,100 companies employing nearly 28,800 workers.  The estimated economic impact of large recreational vessels alone in the United States is close to $6 billion, and as a result is a significant segment of the marine tourism. o Cruising vessels and charters have additional positive economic impact on coastal communities.  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 (80 feet and larger) spends roughly 10% to 15% of its total value each year on various services. That equates to roughly $2 million or more in spending per year per vessel.  The large yacht fleet is estimated to be close to 8,500 vessels with an estimated 40% to 50% of those vessels owned by Americans. However nearly all of those vessels are flagged outside the United States.

Success Story: The M/Y Freedom was registered 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 Code of Federal Regulations (CFR)—a lengthy and expensive process. The M/Y Limitless was only able to accomplish that with an act of Congress. This approach suggests that standards can be developed to facilitate the placing of additional recreational vessels of larger than 300 GT under the U.S. flag.

Regulatory Solution: U.S. Superyacht Association (USSA), the voice for the businesses that support the larger boat market, initiated a dialogue with the Coast Guard in December 2014. The objective was to increase the regulatory regime of 300 GT with a comprehensive approach. By upping the limit, boats would be able to stay longer in our country (and spend their money here!) before they move on to other countries.

Elements of this effort include:  We successfully completed a GAP Analysis in 2017 for the Coast Guard.  Ongoing: Create a new subchapter 46 CFR to accomplish this tonnage increase  Ongoing: Provide for the documentation of larger vessels as recreational vessels.  Ongoing: Create structural and safety standards for recreational vessels.  Ongoing: Establish appropriate manning standards.

Action: To facilitate the flagging of large recreational vessels of 300 GT and larger under the U.S. flag to increase the number operating in U.S. waters: 1. Meet with the Coast Guard to further refine regulatory equivalencies; and 2. Seek legislation from Congress as needed to provide the necessary authority.

767 SE 17 Street, # 667 * Fort Lauderdale, FL 33316 info@ussuperyacht.com * ussuperyacht.com * 954‐792‐8666

The Ballard Locks

Keystone of Puget Sound’s Maritime Economy

June 2017

As the Ballard Locks turn 100 years old, its sustainability has never been more important or more in jeopardy.

A UNIQUE NATIONAL ASSET ê The keystone of a billion-dollar-plus maritime economic system

ê A critical environmental control for the vast watersheds around Seattle

ê An important safeguard for tribal fishing rights ê A vital piece of public-safety infrastructure ê The only locks in the U.S. that connects a large urban lake system directly to the ocean

THE NUMBERS

LOCKS Locks ECONOMIC IMPACT AREA THE DOLLARS & JOBS Economic Impact Area

40,000 annual transits most in the nation

7,500 commercial vessel transits

99

Local businesses depend on the Ballard Locks for:

5

$480 million

Ballard Locks Lake Sammamish

twelfth highest in the nation

1.1 million tons of shipping

3,000 full-time equivalent jobs

Lake Washington 90

directly associated with Locksrelated business activity

$545 million

Duwamish Waterway

If the Locks were to close before the fleet could leave for the season, it would cost a whole season.

— Fishing Association

$1.2 BILLION

$120 million in annual payroll

520

Elliott Bay

in annual sales

in annual commercial fishing harvests by vessels that depend on the Locks

$40 million

in annual spending by 1.25 million visitors and school classes

IN TOTAL LOCKS-RELATED ECONOMIC ACTIVITY

The urgent need for reinvestment Deferred maintenance threatens daily operations; lack of reinvestment threatens the regional economy. ê A dozen components at the Locks need major repair or replacement. ê An extended, unplanned closure of the Locks would have significant negative effects on at least 200 businesses and would threaten public safety.

Keeping the Locks safe and reliable requires more than flat operations and maintenance funding. ê Annual O&M funding is stretched thinner and thinner, and the potential for failure increases every year.

Funding Needed: $30 to $60 Million

ê Only a small portion of long-term needs have been addressed.

ENVIRONMENTAL AND PUBLIC INFRASTRUCTURE VALUE The Locks control water levels in Lake Washington and Lake Union to maintain key infrastructure that includes the Washington State Route 520 and Interstate 90 floating bridges, the water and sewer systems that serve Mercer Island’s 24,000 residents, and approximately 75 miles of residential, municipal and commercial shoreline and moorage.

The Ballard Locks and its fish ladder safeguard an investment of more than $125 million in freshwater salmon habitat protection and restoration over last the two decades.

The Locks are the only marine access and egress point for equipment and supplies for major infrastructure projects such as the $4.6 billion renewal of the State Route 520 floating bridge and removal of excavated material during construction of a planned $430 million Ballard/Wallingford stormwater tunnel.

TRIBAL RIGHTS VALUE The Ballard Locks are key to meeting federal trust responsibilities under treaties between the U.S. government and two federally recognized tribes by protecting migrating salmon to safeguard traditional and customary tribal activities.

PUBLIC SAFETY VALUE The Ballard Locks ensure rapid emergency response for public safety vessels between Lake Washington and Lake Union and Puget Sound.

The study was conducted by McDowell Group and administered by the Marine Exchange of Puget Sound. The following companies and organizations contributed funds: Ballard Alliance Ballard Oil Company City of Kenmore City of Kirkland City of Seattle Coastal Transportation Covich-Williams CSR Marine Ferguson Terminal Foss Maritime Company Freezer Longline Coalition Fremont Dock Company Kane Environmental King County Kirby Corporation Lake Union Drydock Company Malone Law Group PS Nautical Landing Marina Nordic Heritage Museum Northwest Marine Trade Association Northwest Yacht Brokers Association O’Hara Corporation Pacific Fishermen Shipyard Port of Seattle Puget Sound Ports Council, Maritime Trades Department AFL-CIO Seattle Marine Business Coalition Stabbert Maritime The American Waterways Operators Trident Seafoods United Catcher Boats United States Seafoods Vigor Western Towboat Prepared by

A complete copy of the study is available at portseattle.org

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