The anti-ethanol DC coalition, Smarter Fuel Future, which MRAA is a member, generated over 10,000 comments to the U.S. Environmental Protection Agency in support of its recent proposal to maintain 2013 blend volumes for corn-based ethanol. The marine industry contributed over 1,800 of those comments. During January, the coalition led a campaign that was strongly supported by MRAA, to support the EPA’s effort to cap the 2014 renewable fuel standard at 2013 levels. MRAA thanks the mass support marine retailers have given to this issue.

The campaign also generated many media hits with interest in building inform with the public about the harmful effects of corn-based ethanol on small engines used in boats, off-road vehicles, snow blowers, lawn mowers, and gasoline powered tools. FOX Business News reported the AAA has issued a warning to Americans that the efforts of the ethanol industry and the EPA to increase the blend level to E15 in cars can damage engines. Ten auto manufacturers have announced warranties would be voided if E15 is used in newer cars. To see the FOX news story click here.

MRAA continues to actively oppose corn-based ethanol in Congress. MRAA has supported several letters written by Congress to the EPA Administrator Gina McCarthy and the President explaining the adverse effects corn-based ethanol has on marine engines and outboard motors.

MRAA supports H.R. 3896, a bill introduced on January 16, 2014 by Rep. Debbie Wasserman-Schultz, to amend the Longshore and Harbor Worker’s Compensation Act to provide a definition of recreational vessel that is a better and clearer application of the Longshore Act to marinas and insurance companies providing service work on recreational boats. There are seven co-sponsors so far. The bill has been referred to the House Committee on Education and the Workforce. No action has been scheduled by the Committee.

Several years ago, the boating industry united in supporting a revision to the Longshore Act to eliminate the need for marinas working on recreational boats to carry both state worker’s compensation and federal Longshore insurance on its workers. The Labor Department received 50 comments on definition of recreational boat during its rulemaking stage of that revision bill, but those recommendations were negated by the Department and went with the Title 46 definition, as amended by several other legal sources. Problems arose almost immediately with insurers saying the definition is too complicated and withdrew the sale of insurance. Longshore insurance generally costs about four times as much as worker’s compensation and for recreational marinas both would still be required.

The Labor Department has refused to re-open the Longshore rule saying an act of Congress is needed to make any change.

H.R. 3896 is a simple bill that defines recreational boat as 1.) a vessel being manufactured or operated primarily for pleasure, or 2.) leased, rented, or chartered to another for the latter’s pleasure. In addition, the bill says a vessel will be treated as a recreational vessel if it is a public vessel or a boat owned by the USA, a state, or political subdivision and is not normally engaged in the military or commercial industry.

No action has yet occurred on the bill.

For the past several years, Congress has faced a year-end deadline to pass the tax extenders bill. It has been one of Congress’s bad habits. But it did not happen this year causing several key pro-business tax deductions like the estate tax and allowing business to deduct the cost of equipment purchases in the year of purchase rather than gradually through depreciation.

In practice these temporary tax deductions have become permanent because of the sage of the annual temporary authorizations. Congress will again be looking at tax extenders in the coming weeks. MRAA will again push for the repeal or, at least, passage of last year’s $3.5 million exemption of the estate (death) tax. Last week Senator Harry Reid (D-Nevada) said the Senate will take up tax extenders when the Chair of the Finance Committee, Max Baucus (D-Montana) departs the Senate for a new post as ambassador to China.

A bipartisan effort to find new revenue to fund roads, bridges, and mass transit may hit recreational boating hard. Historically, transportation has been a bipartisan effort in Congress. So far 25 Republicans and 25 Democrats in the House support a plan that would fund loans for infrastructure improvements from bonds that would be sold to companies who want tax break if cash earned abroad is brought back to the USA.

A 10 to 20 cent per-gallon increase in the federal gas tax is also on the table, but many think it would be a short-term fix to the needs of infrastructure. With a federal mandate in place to increase average mileage to 54.5 a gallon by 2025, many believe a higher gas tax is needed. Other possibilities include moving to a system that charges drivers a fee for every mile they travel.

Whatever happens in Congress MRAA thinks boaters may be paying more at the pump when the transportation bill passes Congress. MRAA opposes tax increases on gasoline or other revenue avenues that impact the ability of Americans to enjoy fishing and boating.

On February 4, 2014 the House Committee on Natural Resources held its first hearing on the re-authorization of the important Magnuson-Stevens Fisheries Conservation and Management Act. This legislation guides federal saltwater fisheries management. A discussion draft of the authorization bill had been distributed to interested groups several weeks before the hearing.

MRAA is generally pleased with the discussion draft — it provides increased flexibility in setting fish catch limits and provides more local control of fisheries management, but remains concerned that the discussion draft fails to adequately address the needs of recreational fishing.

The next discussion draft will be distributed to interested groups in March. MRAA’s President Matt Gruhn said, “MRAA applauds the work of the Natural Resources Committee so far with its common sense reforms, but believes the re-authorization of Magnuson-Stevens this year provides an opportunity for Congress to adequately address recreational fishing and its impact on the economies of local communities. We are looking for consistency in the law and regulations that can be provided by a national policy for recreational fishing.”

The Marine Retailers Association of the Americas has called marine retailers to action by asking them to contact the U.S. Environmental Protections Agency in strong support of its recent action to reduce the Congressional mandate on the renewable fuel standard (RFS) for corn-based ethanol, for 2014 to 2013 levels.

For the past couple of years, MRAA has been working with other key trade associations to repeal the renewable fuel standard, especially for destructive corn-based ethanol. Many conversations with Members of Congress and their staff have been had by the MRAA board, MRAA members, and MRAA staff; and many letters have been sent to Congress, the White House and the EPA, expressing MRAA’s deep concern of the effects of corn-based ethanol on boater safety and the high repair cost of damage to marine engines, outboard motors and fuel systems. MRAA members are fully aware of the damage blend levels higher than E10 create, such as engine stalling and flammable leaks into bilges, damage to engine valves, fuel lines, tanks and other component parts of the fuel system.

As a reminder, the EPA recently indicated it would reduce the RFS volume level for 2014 to 2013 standards. By doing so, the EPA would maintain a blend level supporting E10 for 2014 rather than the anticipated E15. It is a normal process in the federal government for an agency to issue a proposed rule to support the proposed decision before it becomes law. A public comment period Is part of that process. MRAA anticipates the ethanol industry will organize corn producers and ethanol refiners to overwhelm the EPA with letters in strong opposition of its decision. Marine retailers must respond in-kind.

MRAA asks marine retailers to go to this web site and comment in support of the EPA proposal. Sample comments are provided on this site. Comments are due by January 28, 2014. The identifying EPA docket number, which must be included in your comments, is EPA-HQ-OAR-2013-0479.

Please contact MRAA, if you need further explanation or assistance in preparing your letter.

H.R. 3080 and S. 601, the Water Resources Reform and Development Acts have passed the House and Senate and now reside in a conference committee to negotiate the differences between the two bills. The conference committee has met and several Members of Congress expect a final resolution to be made in January.

The Corps has generally placed a high priority on commercial business activities and fails to recognize recreational boating as part of commerce, but we all know what a critical component the recreational maritime industry has on our economy.

MRAA has long worked with Congress and the Corps to open the Harbor Maintenance Fund for this kind of dredging. As passed through the House, WRRDA would authorize some of the Harbor Maintenance Fund to smaller recreational harbors as well as increase spending targets for the fund from $7 million to $10 million for a single facility.