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be must-pass legislation inclusion of VGP reform is a significant step and enhances considerably the chances of VIDAs enactment into law this year. PVA members should remember that PVA has developed for their use a guidance document explaining how the current VGP impacts them and how they can comply with it. Capital Construction Fund A recent statutory amendment to the existing Capital Construction Fund CCF law means that the private- sector operator of a domestic vehicle- carrying ferry can now establish and use a CCF to accumulate tax-deferred earning to construct or acquire a new U.S.-built vessel. The April 2016 issue of FOGHORN magazine carries the article entitled Look into the Value of a Capital Construction Fund. However if a PVA member wishes to acquire a new passenger-only ferry or other type of passenger vessel for operation in the lower 48 states other than in the Great Lakes the CCF is not a viable possibility. PVAs Board of Directors has set a legislative goal of changes to the CCF law so that even more PVA members might have the option of using a CCF. The Boards resolution states To encourage the construction of more vessels in U.S. shipyards and to increase the amount of capital available for such construc- tion the PVA Board of Directors urges that the Capital Construction Fund law be amended so that the term qualified vessel includes any U.S.- flagged passenger vessel or small passenger vessel. This will require an act of Congress and it will have to be included in broader tax reform legisla- tion. The odds of such tax legislation being achieved in an election year are low but PVA is working now to lay the groundwork for favorable action in 2017. Further Relief from TWIC As a result of a change in law advocated by PVA and accomplished several years ago it is no longer necessary for a licensed mariner working on a non-security passenger- carrying vessel generally a vessel with a passenger capacity of 140 or below to have a Transportation Worker Identification Credential TWIC. Also after a delay of many years the Coast Guard is expected to release this summer the final rule requiring certain vessel operators and facilities to install electronic TWIC readers. PVA vigorously pushed back against sug- gestions that PVA operators should be required to have TWIC readers filing detailed comments to the regu- latory docket and testifying at public hearings convened by the Coast Guard. PVA was pleased that the Coast Guards proposed rule on TWIC readers excluded nearly all PVAvessel operators and we remain hopeful that this exclusion will be retained in the final rule. PVA continues to believe that TWIC is a costly mandate that does nothing to enhance security of domestic passenger-carrying vessels. As a result we look for any oppor- 20 MAY 2016 FOGHORN LEGISLATIVEREPORT