2012 -- H 7385

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LC01108

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2012

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A N A C T

RELATING TO WATERS AND NAVIGATION -- ARTIFICIAL REEF PROGRAM

     Introduced By: Representatives Keable, Nunes, Jackson, and Lally

     Date Introduced: February 02, 2012

     Referred To: House Finance

It is enacted by the General Assembly as follows:

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     SECTION 1. Title 46 of the General Laws entitled "WATERS AND NAVIGATION" is

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hereby amended by adding thereto the following chapter:

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     CHAPTER 6.2

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RHODE ISLAND ARTIFICIAL REEF PROGRAM

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     46-6.2-1. Declaration of purpose. –

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     WHEREAS, In the past, the United States has used unneeded ships as targets for military

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exercises known as sinking exercises, and

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     WHEREAS, Now the United States has devised an alternative means of disposing of

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obsolete Ex-military vessels that allows the vessels to serve in a productive capacity for hundreds

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of years past their intended use, and

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     WHEREAS, The National Defense Authorization Act for Fiscal Year 2004 allows

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appropriate obsolete ships to be donated for use as artificial reefs, and

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     WHEREAS, The process of using obsolete vessels as man-made artificial reefs not only

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promotes marine life and fishing but relieves pressure on natural ocean bottom features and reefs,

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and

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     WHEREAS, The measure allows the United States to accomplish the overall process for

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the cost-effective donation or sale and transfer of available vessels, and

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     WHEREAS, The United States Maritime Administration (MARAD) will coordinate the

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federal agency solicitation and application for obtaining the vessels for use as artificial reefs, and

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     WHEREAS, The donation and transfer application for all ex-military and MARAD ships

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available for use as artificial reefs may be submitted only by states, commonwealths, and

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territories and possessions of the United States, or municipal corporations or political

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subdivisions thereof, and

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     WHEREAS, The placement in Florida waters of the U.S.S. Spiegel Grove in 2002 and

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the U.S.S. Oriskany in 2006 and the U.S.S. General Hoyt S. Vandenberg in 2009 has already

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provided substantial economic and ecologic benefit to the state and to communities and

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businesses in the proximity of the placements, and

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     WHEREAS, Each State within the United States, having active Reefing Programs using

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ex-military, MARAD and other ships available for use as artificial reefs, formally report marked

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increases in permanent job creation and increased tax revenue through tourism, , global media

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attention, television productions and documentaries, and supporting industries; and

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     WHEREAS, Since 1984, the New Jersey Bureau of Marine Fisheries has been involved

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in an intensive program of artificial reef construction and biological monitoring which includes

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15 artificial reef sites encompassing a total of 25 square miles of sea floor, and

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     WHEREAS, The purpose of the New Jersey reefing program is to create a network of

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artificial reefs in the ocean waters along the New Jersey coast to provide a hard substrate for fish,

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shellfish and crustaceans, fishing grounds for anglers, and underwater structures for scuba divers,

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these reefs are now being used extensively by anglers and divers who catch sea bass, blackfish,

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porgy and lobster, and

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     WHEREAS, Rhode Island already has defined Marine Recreation in the Ocean Special

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Area Management Plan (SAMP), a collection of locations that are open to the public in Rhode

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Island and which currently include four themes, those themes being Marine Recreation in the

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SAMP area, Cruise Ship Tourism, Recreational Activities Adjacent to the SAMP Area, and

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Economic and Non-Market Value of Recreation and Tourism in the SAMP area, and

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     WHEREAS, This act would add a new, fifth theme to the Ocean Special Area

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Management Plan, a vessel Artificial Reef theme, and

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     WHEREAS, The program provides a practical option for disposing of obsolete vessels in

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a cost-effective and environmentally sound manner that can continue to promote ecotourism

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associated with recreational diving and fishing in Rhode Island, now, therefore be it

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     RESOLVED, The general assembly determines that a statewide matching grant program

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to secure and place obsolete ex military, MARAD and other vessels in Rhode Island waters as

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artificial reefs would be of great benefit to Rhode Islanders in promoting ecotourism associated

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with recreational diving and fishing in Rhode Island. The Legislature further finds that a pilot

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program for the preparation and deployment of an ex-military and or a MARAD and or other

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vessel (optimally one with an historic or cultural connection with Rhode Island, in Block Island

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Sound would assist in the appropriate development of procedures for the placement of obsolete

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vessels in Rhode Island waters.

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     THEREFORE, The Legislature hereby authorizes the planning and development of a

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statewide ships-to-reefs program and a pilot program as described in this subsection to be

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administered by the Rhode Island economic development corporation (RIEDC). The programs

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will be implemented subject to: (1) Legislative approval for the state of Rhode Island to accept

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custody of a designated ex-military and or a MARAD vessel or other; and (2) Approval for the

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REIDC to secure and administer funding from the legislature or other source(s) for the pilot

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program.

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     46-6.2-2. Objectives program. – (a) Assist in reducing the pressures on natural reefs in

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Rhode Island waters and increasing the opportunities for recreational diving and fishing.

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     (b) Provide a mechanism through which local counties and municipalities that are

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permitted to place vessels in Rhode Island waters as artificial reefs can apply for and receive state

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matching grants for the placement of obsolete ex military, MARAD or other vessels.

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     (c) Provide state funds that would be matched with local funds, federal funds, and funds

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from local businesses or other sources.

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     (d) Establish criteria to determine eligibility for such state matching funds.

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     (e) Assist local counties and municipalities with the donation and transfer application for

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obsolete ex-military, MARAD or other vessels available for use as artificial reefs in accordance

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with MARAD or other application evaluation criteria.

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     (f) Develop a master plan for the purposes of maximizing the number and type of vessels

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to be placed in Rhode Island waters that provides for the location of vessels in the most

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ecologically and economically effective and beneficial manner.

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     (g) Establish and promote standards for the placement of obsolete ex-military, MARAD

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or other vessels in Rhode Island waters, consistent with current environmental standards and the

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mandate of Section 3516 of the National Defense Authorization Act for Fiscal Year 2004 and the

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2006 publication, “National Guidance: Best Management Practices for preparing Vessels

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Intended to Create Artificial Reefs”, published jointly by the United States Environmental

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Protection Agency and the MARAD, which emphasizes minimization of the release of harmful

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substances into the environment while obsolete vessels are at anchorage and are undergoing

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disposal processes.

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     (h) Provide for and receive interagency comments from the agencies responsible for the

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permitting of artificial reefs and the Rhode Island department of environmental management,

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allowing for a review period consistent with MARAD or other appropriate application deadlines.

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     (i) Establish a vessel artificial reef component as a fifth (5th) theme for Rhode Island’s

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Recreation in the Ocean Special Area Management Plan (SAMP), consistent with the

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responsibilities of the Rhode Island Commission on Tourism and the Office of Tourism, Trade,

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and Economic Development under s. with respect to nature-based tourism and heritage tourism.

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     (j) Provide for title of obsolete vessels to be transferred to the state.

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     46-6.2-3. Rhode Island obsolete vessel placement program – Matching grant

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program. – The RIEDC is authorized to establish the Rhode Island obsolete vessel placement

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program, a matching grant program for the securing and placement of obsolete ex-military,

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MARAD or other vessels in Rhode Island waters to serve as artificial reefs and, pursuant thereto,

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to make expenditures and enter into contracts with local governments and nonprofit corporations

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specifically established for the purpose of securing and placing obsolete ex-military, MARAD or

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other vessels as artificial reefs in Rhode Island waters.

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     46-6.2-4. Artificial reef program. – To carry out the provisions as set forth in this

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chapter, the RIEDC is authorized to adopt regulations regarding the placement of vessels in state

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waters to form artificial reefs; authorizing the planning and development of a statewide matching

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grant program to secure and place ex-military, MARAD and other vessels in Rhode Island waters

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as artificial reefs; authorizing the planning and development of a pilot program for the preparation

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and deployment of a specified obsolete vessel in Block Island Sound to serve as a model for the

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development of procedures for the placement of such vessels in Rhode Island waters; providing

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for administration of the programs by the RIEDC; providing for implementation of the program

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subject to appropriations; providing objectives of the programs; providing for the establishment

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of the Rhode Island obsolete vessel Placement Program and matching grant program by the

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RIEDC; providing a limitation on the total annual allocation of funds for the grant program;

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providing a limitation on individual grants awarded under the program; specifying the percentage

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of the state matching grant; and providing procedures and requirements with respect to the

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programs;

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     46-6.2-5. Grant approval. – (a) The RIEDC shall have final approval of grants awarded

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through this program.

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     (b) The total annual allocation of funds for the grant program may not exceed twelve

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million dollars ($12,000,000). Each grant awarded under the program shall be limited to no more

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than four million dollars ($4,000,000) and shall be matched. The limit for a state matching grant

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shall be fifty percent (50%) of total project cost.

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     (c) The RIEDC may:

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     (1) Receive submissions of requests for matching funds and documentation relating to

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those requests;

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     (2) Evaluate requests for reefing proposals and matching funds; and

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     (3) Approve and allocate matching funds to local governments or nonprofit corporations

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specifically established and recognized by the state for the purpose of securing and placing

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obsolete ex-military, MARAD or other vessels as artificial reefs in Rhode Island waters.

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     (d) To demonstrate that a local government or nonprofit corporations meet the required

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criteria, the local government or nonprofit corporation must submit formal agreements, written

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pledges, memorandums of understanding, financing arrangements, or other documents

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demonstrating that non-state matching funds are available for securing and placing the vessel

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prior to submission of an application. Matching grant funds shall be released only upon

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documentation that the applicant meets all established criteria.

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     (e) The commission is authorized to adopt rules necessary to administer the matching

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grants provided in this section.

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     (f) The RIEDC shall establish a pilot program to fund the preparation and deployment of

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obsolete ex-military, MARAD or other vessels in the waters of Block Island Sound and shall, by

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January 1, 2014, and, each year thereafter for a period of five years, provide to the governor, the

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president of the senate, and the speaker of the house of representatives an annual report on the

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success and outcomes achieved by the pilot program, with a recommendation as to whether the

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pilot program shall be continued, terminated, or expanded. The RIEDC shall also report on the

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procedures developed and used for the proper preparation and deployment of the pilot vessel

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consistent with the objectives stated

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     (g) To the extent that funding is made available, the pilot program shall provide funds to

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pay for a portion of the cost of the preparation and deployment of the pilot vessel in the waters off

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Block Island. Such funds are in addition to any other funds appropriated for this purpose. The

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RIEDC shall develop procedures for conducting the pilot program, including, but not limited to,

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procedures for determining eligibility, providing payment, and ensuring that payments are made

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to eligible not-for-profit corporations, persons or local governments until the funds are exhausted.

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The RIEDC shall examine use, and to the extent possible, assist in the procuring other available

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options for funding the project cost, including the use of funds raised by private agencies or

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persons and or services in kind.

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     46-6.2-6. Appropriation. – A separate appropriations bill shall be drafted for

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consideration by the legislature in the sum limited to no more than five million dollars

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($5,000,000), appropriated for the 2013-2014 fiscal year out of any money in the treasury not

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otherwise appropriated, to the marine resources conservation trust fund. Any unexpended and

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unencumbered funds remaining at the end of fiscal year 2014 shall be carried over and remain

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available to the Rhode Island economic development corporation for the uses and purposes set

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forth in this act.

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     46-6.2-7. Annual report. – No later than January 1, 2014, and each January 1 thereafter

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for a period of five (5) years, the RIEDC shall submit a report to the governor, the president of

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the senate, and the speaker of the house of representatives detailing the expenditure of the funds

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appropriated to it for the purposes of carrying out the provisions of this chapter.

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     SECTION 2. This act shall take effect upon passage.

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LC01108

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO WATERS AND NAVIGATION -- ARTIFICIAL REEF PROGRAM

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     This act would create the Rhode Island Artificial Reef Program.

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     This act would take effect upon passage.

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LC01108

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