Monita W. Fontaine, Esq., NMMA Vice President, Government Relations |
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Issue 9 - Dec. 19, 2002 |
I. REGULATORY ROUND-UP
Government regulations that affect your bottom line
MOAA, USCG Formalize Homeland Security Agreement
On Dec. 17, MOAA and the U.S. Coast Guard (USCG) executed a Memorandum of Agreement formalizing the terms by which MOAA
and USCG will cooperate in an effort to ensure the security of the waters and ports of the United States. MOAA and the
Coast Guard will work to further the mutual goals of ensuring safe, secure, efficient and environmentally responsible
maritime operations. Specifically, USCG agrees to provide opportunities for MOAA to participate in local port security
committees and subcommittees, while MOAA agrees to cooperate with the Coast Guard in educating the public and its membership
on maritime safety awareness. In the coming months, MOAA will create a national outreach program to educate marina operators,
owners and recreational boaters as to ways they can get involved with this new national security initiative.
As seen in Currents...
CARB Labeling Requirements Begin in 2003
Manufacturers who equip their boats with 2003 model year (or later) gasoline stern drive or inboard engines must affix an
environmental star label on the bow of the boat. This requirement is part of the CARB SD/I rule approved by the Air Resource
Board in August 2001. Engine manufacturers may be required to affix the star labels on the engine as well and will be required
to place hang tags on the engines to provide information on their environmental benefits. The engine manufacturer will supply
the boat manufacturer with the label(s). The boat builder is solely responsible for the placement of the label on the vessel
and can be fined up to $500 per vessel as part of CARB noncompliance penalties. For an example of the engine label and instructions
for placement, download the sample brochure from
www.nmma.org/government/local/downloads/documents/starlabel.pdf.
For more information, contact NMMA Environmental & Safety Compliance Director John McKnight at (202) 721.1604;
jmcknight@nmma.org.
EPA Reforms New Source Review Rules
After six years of negotiation, EPA has finalized major amendments to the federal New Source Review (NSR) rules, which require plants
that are subject to Prevention of Significant Deterioration (PSD) requirements to install the Best Available Control Technology (BACT)
when performing a modification, reconstruction or new construction to a facility. The PSD provision is part of the Clean Air Act Amendment
of 1990, mandating facilities that undergo major equipment or process changes to apply the cleanest technology available. The New Source
Review amendments include:
- Plant-wide Applicability Limits (PALs) which allow facilities to negotiate for operating emissions margins, within
which PSD would not have to be followed;
- A new Potential to Emit (PTE) formula (used to determine emissions) which will more closely reflect the actual,
rather than potential, emissions of a process or equipment change;
- A Clean Unit Exemption, which allows for equipment or process upgrades to be tied into existing control equipment
without incorporating NSR rules.
States with approved New Source Review programs must apply to EPA to make these changes and revise their State Implementation Plan (SIP). States that do
not have state NSR programs will adopt the federal changes immediately. For more information, visit
www.epa.gov/air/nsr-review/.
Coast Guard Life Jacket Rule in Effect this Month
The U.S. Coast Guard's Life Jacket Rule will go into effect Dec. 23. All children under 13 years of age must wear Coast Guard
approved personal flotation devices while aboard recreational vessels underway, except when below the deck or in an enclosed
cabin. This rule affects only those states that do not have existing laws or regulations. Penalties for failure to abide by
this rule may be assessed up to a maximum of $1,100 for each violation. For more information, visit
www.uscgboating.org/news/boatingview.aspx?id=26.
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II. FEDERAL FINDINGS
2002 Maritime Transportation Security Act Impacts Boat Manufacturers
Two provisions in the 2002 Maritime Transportation Security Act regarding the U.S. Coast Guard (USCG) directly impact recreational
boating manufacturers. In a legislative effort led by Sen. John McCain (R-AZ) to "improve boating safety," USCG now has the authority
to recall recreational vessels and associated equipment manufactured up to 10 years (rather than the previous five years) from the
date of manufacture. This change is in line with other recall timeframes and is largely due to a 2001 recall of houseboats with
defective rear exhaust vents linked to carbon monoxide fatalities. NMMA opposed the costly and burdensome provision, but was able
to include favorable language giving manufacturers of recreational vessels and associated equipment the option of recalling by first
class mail or by certified mail. Until this law was passed, manufacturers were required to notify customers of a recall through
certified mail, which has been reported by NMMA members as costly and problematic because of recipients' failure to pick up their
certified mail.
NMMA Seeks Support from Congress Following Supreme Court Decision
NMMA met with both Democrats and Republicans on the House Coast Guard and Maritime Subcommittee to discuss liability and safety
standards for the boating industry. NMMA explained to Subcommittee staff that the recent Supreme Court decision in Sprietsma v.
Mercury Marine removes federal preemption from the U.S. Coast Guard, leaving safety regulation in the hands of the states.
Republican and Democratic staff agree that consistent boating safety standards should be set at the federal level and have
offered to assist NMMA and the industry with this safety and liability issue.
A (Delayed) Election Victory for NMMA
Senator Mary Landrieu (D-LA) won her run-off bid against Suzanne Terrell (R) with 51 percent of the Louisiana vote. Sen.
Landrieu is a friend of NMMA and a supporter of the boating industry. NMMA PAC supported her campaign during the general
and run-off elections.
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III. STATES AND LOCALITIES
States Legislative Agendas Addressed at New England Marine Trade Meeting
At the December New England Marine Trade Association (NEMTA) Annual Meeting in Waltham, MA, NMMA and PWIA addressed the high
volume of legislation - on issues such as lemon laws and new taxes - expected to impact the recreational boating industry in
the Northeast. They also encouraged cooperation from NEMTA members on legislative issues of mutual interest.
Pennsylvania Enacts Mandatory Boater Education; Other States Seek Similar Laws
Pennsylvania Governor Mark Schweiker signed into law mandatory boater education for all persons born on or before Jan. 1, 1982,
and who operate boats with 25 horsepower or greater. The NMMA-endorsed bill becomes law in March 2003. According to the National
Transportation Safety Board (NTSB), other states will consider similar measures in 2003.
Tax Bills Common in State Legislatures as Budget Crises Deepen
Several states, including Massachusetts, Missouri, Montana, and South Carolina are considering a range of tax measures in 2003.
In South Carolina, a bill was introduced requiring personal property taxes to be paid in full before an owner can transfer title
to a watercraft or outboard motor. Other states, such as Montana, are seeking to raise boater registration fees by 50 cents to
cover search and rescue operations and other boating related programs.
A Note on the Following State News
As state legislatures prepare to reconvene next month, they are pre-filing, or submitting drafts of bills, that they will
introduce while in session. Details are currently unavailable, but NMMA will continue to actively monitor movement in the states,
relay further information as it becomes available and lobby for your interests.
Boating Bills Introduced in Massachusetts
Legislators in Massachusetts have pre-filed four draft bills that cover bans on watercraft, boat and engine taxes and sales taxes on kayaks.
Missouri Bill Would Exempt Boats Built In-State from Sales Tax
Missouri State Representative Harold Selby (D) has introduced a bill that exempts all boats and motor vehicles manufactured in-state
from sales tax. Connecticut may introduce similar legislation. NMMA is reviewing whether this legislation may be considered an infringement
of the Commerce Clause regulating trade between the states.
Arkansas Bill Sets Requirements for Lanyard-type Engine Cutoff Switch
A bill pre-filed in Arkansas requires boat operators to attach the lanyard to their clothing or life jacket when the boat is manufactured
with a lanyard-type engine cutoff switch, ensuring the boat's engine will shut off should the operator fall overboard.
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IV. OUTREACH
Falling U.S. Dollar Benefits Manufacturing Industries
"The dollar fell to its lowest level against the Euro in almost three years.A weaker dollar could also help the economic rebound
in the United States by making American exports more competitive abroad and many domestic manufacturers.more competitive at home."
From The New York Times, Dec. 14, 2002; "Dollar Loses More Ground to Both the Euro and the Yen" by Jonathan Fuerbringer
http://www.nytimes.com/2002/12/14/business/14DOLL.html
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NAM Economic Committee Urges President to Revitalize Manufacturing
On Dec. 11, NMMA met with other manufacturing representatives to discuss a proactive U.S. economic policy at the National Association
of Manufacturers (NAM) International Economic Policy Committee meeting in Washington, DC. NAM will present a policy statement to the
President that encourages a focus on U.S. manufacturing needs for economic growth and competition, bilateral and regional trade agreements,
a fair and competitive U.S. dollar and a possible phase-out of steel tariff measures. NAM is also asking the President to charge the U.S. International
Trade Commission with studying the impact of the steel tariffs on steel-producing and steel-consuming industries and report its findings by
July 31, 2003.
NMMA Public Policy and Political Governing Committee Seeks Leaders
NMMA is seeking industry leaders to serve on both the new NMMA PAC Committee Board of Trustees, which approves all political contributions,
and its working group, the Strategic Cabinet, to develop public policy positions and grassroots agendas. Formerly the NMMA Government
Relations Committee, the newly restructured NMMA PAC Committee will be the industry's decision-making body for both public policy and
political issues, reporting directly to the NMMA Board of Directors. For further information on the Committee and the recommended criteria
to serve, contact Kelly Bobek at (202) 721.1608; kbobek@nmma.org.
Industry and House Republicans Discuss Policy Initiatives in Upcoming Congress
NMMA sponsored and attended the National Republican Congressional Committee (NRCC) Winter Meeting held in New York City to discuss upcoming
issues and strategy for the 108th Congress. House Republican leaders and congressional White House liaison staff educated industry and Representatives
on the priorities of the President and of the Speaker of the House. These include economic and job growth legislation; legal reform, such as class action
reform and medical malpractice; medical reform and prescription drugs; and energy policy. The NRCC received valuable feedback from industry while providing
networking opportunities with House Republicans.
Join your peers at The American Boating Congress, the all industry marine legislative conference, formerly called LegCon, in Washington, DC on May 5 & 6, 2003
to create the 2003-04 Boating Industry Legislative Agenda. Visit
http://www.nmma.org/abc/inforequest.asp to request registration
information.
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WASHINGTON OFFICE CONTACT INFORMATION
For more information on any of the topics discussed, or for general comments, please contact:
- NMMA Public Affairs Coordinator, Vanessa Bilanceri at (202) 721.1613; vbilanceri@nmma.org
- MOAA Manager of Communications and Education Stephen Wakefield at (202) 721.1622; swakefield@nmma.org
- PWIA Public Affairs Manager Elinore Boeke at (202) 721.1621; eboeke@pwia.org
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