Industry News You Need To Know

EPA Heeds NMMA
HAPs Suggestions

The Environmental Protection Agency (EPA) has finalized its rules for Area Source Emission Standards for paint stripping and surface coating after significant revision following comments by the National Marine Manufacturers Association (NMMA). The original wording in the rules would have regulated area sources that included boatyards, marinas and small boatbuilders with emissions of hazardous air pollutants (HAPs) under 10 tons. It would have required the owners of these facilities to implement a series of work practice standards and conduct all surface coating operations inside a spray booth. The NMMA lobbied that such regulations would prevent boatyards and marinas from performing outdoor bottom painting or maintenance touch ups. The EPA also agreed to specify the HAPs regulated in the surface coatings, confining them to “HAPs of concern,” which are cadmium, chromium, lead, manganese, and nickel compounds–none of these are used in marine paint applications. The final wording also exempts adhesives, caulks, sealants and maskants, and coatings from aerosol cans, as well as in-mold coatings sprayed in the manufacture of reinforced plastic composite parts.
The NMMA recommends all boatbuilders review their surface coatings to determine if they contain any of the five HAPs of concern. For more information regarding the Area Source Emission Standards rulings, contact John McKnight at 202-737-9757, or visit nmma.org/government/environmental/?catid=1297.

Fort Lauderdale Considers
Dredging New River

Fort Lauderdale city officials are interested in more dredging for a 6.2-mile stretch of the New River–from its intersection with the Intracoastal Waterway to slightly west of the I-95 overpass. Three years ago the area was dredged to an average depth of 10 feet. This new project calls for dredging to 14 feet.

To determine the feasibility of this project, city officials are turning to the Florida Inland Navigation District to conduct a study. Under an already approved plan, the $600,000 study will be funded by $450,000 from the Florida Inland Navigation District and $150,000 from the city of Fort Lauderdale, which will try to obtain a grant to cover its share. If the New River can be dredged to 14 feet, the city estimates a high-end cost $15.7 million, of which the navigation district would pay 75 percent. The study will address the affects of dredging on seagrass and the river bottom as well as the impact on the shoreline.

Along with the environmental affects of dredging, the study will also examine the economic impact. The dredging would allow more megayachts and deep-draft sailboats to reach about 20 facilities along that stretch of the New River. This increase in traffic is expected to bring an increase in business, which will create more jobs and boost the city’s economy.

Two Tax Deductions
Available for Boat Owners

Two federal income tax deductions of potential benefit to boat owners remained in place once Congress adjourned for 2007. Taxpayers may deduct mortgage interest paid on a second home from their federal tax returns. A boat is treated like a second home if it has a galley, a head and sleeping berth, therefore the interest paid on the boat loan may be deducted. The other tax benefit available is a deduction for states sales taxes. This is appropriate for owners who paid a significant state sales tax last year. Owners must choose either the state sales tax deduction or the state income tax deduction on their federal tax return. For more information on possible tax deductions, visit irs.gov.

Genmar Closes
Sarasota Operation

Genmar has ceased its boatbuilding operations in Sarasota, Florida, and moved production to its other facilities across the U.S. This closure affects 19 models from three of its brands: Hydra-Sports, Wellcraft and Seaswirl. Genmar officials cited the rising costs of doing business in Florida compared to manufacturing in other states as well as the state of Florida’s lack of interest in attempting to keep the facility open as reasons for its closure. Closing the facility will affect about 225 employees. Genmar has said that all the employees will be able to earn special incentives during the transition period, which is expected to last six months. Additionally, some of the Sarasota employees will be offered jobs at other Genmar facilities.

New Yacht Show in D.C.

National Harbor, located on the Potomac River adjacent to Washington D.C., will be home to a new show this June. Taking place June 5-8, the Yacht Show at National Harbor will have an in-water display of new, brokerage and charter yachts 60 feet and above exclusively. On-land tents will feature exhibitors that provide service and accessories for larger yachts. For more information, visit yachtshownh.com.

Europe Boat Market
Tops U.S. During 2007

A study conducted by the Dallas, Texas-based global market research and consulting firm Lucintel has revealed some telling numbers for the boating industry. Lucintel’s research indicated that the boating market was significantly down in North America for 2007 while Europe achieved a record high. This was the first year that the European market exceeded the North American market in dollar value. Lucintel attributed the European growth to the huge demand for megayachts in the European market. The global boat industry was estimated at $25 billion in 2007 and Lucintel projected it to reach $38.3 billion in annual sales by 2013. The future growth is expected to be fueled by demand from the European and Asian/Pacific markets with the trends continuing towards larger more expensive boats.