This regulatory impact statement (RIS) has been prepared for the proposed regulation, 6 NYCRR Subpart 646-8, promulgated by the Lake George Park Commission (the “Commission”). Articles one and two of the State Administration Procedures Act (SAPA) contain procedural and substantive requirements with which the agencies must comply when proposing and adopting rules.

The Legislature established the Lake George Park Commission (“Commission”) as an independent agency and delegated broad and expansive powers to protect enhance and regulate the resources of the Lake George Park, and particularly the waters of the Lake George. Environmental Conservation Law Section 43-0117(4) directs the Commission to promulgate regulations relative to the permitting of boats, the regulation of marinas, and regulation of recreational activities to protect and preserve the water quality of Lake George and further provides that no person “shall operate any boat or vessel, or undertake any regulated activity without complying with such regulations.” Environmental Conservation Law 43-0107 (8) provides that the Commission shall have the power to adopt, amend and repeal rules and regulations which are consistent with Title 43 of the Environmental Conservation Law, as it deems necessary to administer this article, and “to do any and all things necessary or convenient to carry out the purpose and policies of this article and to exercise all powers granted by law.”

The proposed regulation is consistent with the legislative objects by regulating the use of boats on the waters of Lake George Park and by enhancing and preserving the quality of those waters for the public benefit. The proposed regulation is intended to protect the waters of Lake George Park from further infestation of Aquative Invasive Species (AIS) and to reduce the spread and proliferation of the 5 AIS that are currently found in Lake George.

The Lake George communities have already expended more than Six Million Dollars to manage three of these AIS in Lake George. It is estimated that failure to adopt appropriate measures to reduce the spread of AIS will result in more aggressive and unmanageable AIS from entering Lake George. The further spread of AIS into Lake George is estimated to result in significant losses of tourism and visits to Lake George, with a corresponding loss of approximately 9 Million to as much as 48 Million dollars to the local economies who depend on tourism. The Regulatory Impact Statement describes the threat of AIS in more detail.

The proposed regulation was drafted after a two year outreach and study of possible methods to prevent the further spread of AIS into the waters of the Lake George Park. The outreach and study looked at methods to preserve the excellent water quality of Lake George and the economic and recreational benefits associated with the Lake George Park. The results of this study determined that the most effective means of reducing the spread and infestation of new AIS into the waters of Lake George Park was through a mandatory inspection program of all trailered vessels prior to being launched into the waters of the Lake George Park.

The proposed regulation requires all trailered vessels to undergo mandatory inspection and possible decontamination prior to launch in the waters of the Lake George Park. The regulation requires trailered boats to visit a regional inspection station in the Lake George watershed, and undergo a 7-10 minute invasive species inspection of the vessel and trailer. The standard for boats to pass inspection would be that of the Western states model of “clean, drained and dry” (CDD), which would work to prevent both visible and non-visible aquatic invasive threats.

Inspectors would be authorized by the Commission to enter the interior of boats in order to complete the inspection of all hull compartments. As part of the boat inspection process, boat owners will also be required to drain the bilge and properly dispose of AIS prior to leaving the launch area to prevent Lake George from being a source of AIS to other water bodies.

Boats that do not meet the C-D-D inspection standard would have to be washed and decontaminated at the inspection station with High Pressure Hot Water (HPHW) prior to launching. Boats with ballast tanks and bilges will have to be drained and possibly flushed with HPHW. Once the inspection and, if necessary, decontamination process is complete, the boat would be fitted with an inspection tag securing the boat to the trailer. Boats are then permitted to proceed to the marina of choice and launch into Lake George. As long as the boat's inspection tag is secured/connected to the trailer the boat is free to launch. Boats that are leaving Lake George launches will also be fitted with inspection tags. These boats may re-launch into Lake George without being re-inspected as long as the inspection tag is intact.

The proposed regulation avoids undue deleterious economic effects or overly burdensome impacts to boat owners because the inspection process is only expected to take 10 minutes and, at present, the Commission does not intend to charge a fee for such service. The regulation provides however that the Commission may establish a fee related to the Commission’s costs of performing such services and other vessel inspection program costs and such fees may be necessary in the future.

Costs to launch operators are expected to be slight. Local governments and small businesses would be required to monitor boats entering and leaving their launches, to maintain records of launches from their properties and to secure their launches in some manner during off-hours. The regulation does not mandate the method by which the launches must be secured and businesses and launch operators may use the most cost-effective means to meet these requirements. Marinas and launch operators generally employee people to assist customers in the launching of their boats and it is expected that these same employees can perform the duties required by the regulation. Marinas and launch operators also require a fee from boaters prior to launching from their facilities and these facilities are usually closed during off hours. It is not expected that these businesses would incur much if any expense to implement this regulation. The reporting requirement is also expected to be minimal. The Commission has streamlined the process as much as possible by exempting boats whose last launch was in Lake George from inspection.

The costs to the Commission for administering the regulation are expected to be approximately $700,000 annually. The Regulatory Impact Statement provides a description of these costs as well as a description of the cost of compliance on regulated parties. The Regulatory Impact Statement also describes the possible funding alternatives available for this program.

The Regulatory Impact Statements provides a description of the various alternatives to the regulation considered by the Commission and a description of the benefits and potential adverse impacts as a result of the Regulation, including a description of the potential adverse and beneficial impacts on tourism and the local economy.

The Regulatory Impact Statement describes the reporting and compliance requirements for the regulated parties and local governments. The Regulatory Impact Statement also describes the interaction with existing State and Local Laws, as well as the Commission’s own regulations. The Regulatory Impact Statement also describes the expected interaction with DEC and other state and local agencies in implementing the regulation.

The Regulatory Impact Statement and the proposed regulation provide for an expiration of the program after two years to allow the Commission the opportunity to review and reassess the efficacy, cost and benefits of the program at the end of the second season after its implementation.

1. Effect of the rule:

The proposed regulation may impose some slight additional costs to local governments and small businesses who would be required to maintain records of launches from their properties and who would be required to secure their launches in some manner during off-hours. These costs are expected to be minor, however. The regulation does not mandate the method by which the launches must be secured, only that the Commission approve the method of security.

Under the program, an employee of a business or municipality would be expected to check each boat that is launched from the property to insure that the boat had a tag indicating it had been inspected by one of the Commission staff or that it was last launched in the Lake George Park. This person or persons would also be expected to tag any boats leaving the waters of the Lake George Park via that launch, if requested by the boat owner to do so. This person would also be expected to keep and maintain records of all boats that were launched from the facility and to keep all tags that were removed from the boats and those that were not used.

This regulation is not expected to impose a significant cost on local municipalities or businesses. There are currently only 2 public launches that are owned by municipalities: one in the Town of Putnam and one in the Town of Hague. The Town of Hague already employs a boat steward to assist at its launches and would likely not be required to hire any additional employees in order to implement the program. The Town of Putnam may need to hire one additional person to monitor boats coming in and out of the lake at that location. The Town of Bolton has an interest in Norowal Marina, as does DEC. The Commission intends to staff inspectors at that launch, however, thereby eliminating any cost to this municipality.

Marinas and launch operators generally require a fee from boaters prior to launching from their facilities and these facilities are usually closed during off hours. It is not expected that these businesses would incur much if any expense to implement this regulation.

Moreover, boats whose last launch was in the Lake George Park are exempt from further inspections. Thus the rule may provide for an increase in local businesses, such as marinas and quick launches, for those boaters who only launch in Lake George.

Requiring boat inspections may also cause some potential tourists to stay away from Lake George or choose to visit the lake less frequently. This would have impacts on tourism and the regional economy. Data from other lakes with inspection programs indicate that changes in boat usage after mandatory boat inspections are implemented is minimal or is within the annual variability of year-to-year recreational pursuit changes.¹

The inconvenience and costs of the regulation are offset by the enormous benefit the regulation is expected to have on the quality of the waters of the Lake George Park and to the public health and recreation, the local economy and tourism in the Lake George area. There are currently 5 invasive species in Lake George and the Commission actively manages three of these: Eurasian Water Milfoil, zebra mussels and Asian clams. Without an effective prevention strategy, dozens of AIS may be introduced to the waters of the Lake George Park. The primary vector by which these species may arrive is trailered boats coming in from nearby waterways such as Lake Champlain, the Hudson River, and from the Great Lakes and Finger Lakes region. AIS have the potential to cause significant, long-term damage to the Lake George environment and cost millions of dollars to control in the future. These negative impacts could extend to the local tax base and the robust tourism industry.

The cost of managing existing AIS is reported to be a minimum of 16:1 times higher than the cost of prevention (US Congress of Office of Technology Assessment, 1993). Over the last 26 years (1986-2012), it has cost the Lake George community an estimated $6.5 million dollars to combat EWM, zebra mussels and Asian clams. The future threat of new AIS introductions to the Lake George Park and Lake George itself is high and the outcome of large or extensive uncontrolled growth of AIS may result in significant impacts to the regional economy. Most AIS are most likely to occur in the “littoral zone” of the lake. This zone is described as the shallow water area extending from the shoreline to a point where water depth is approximately ten (10) meters in depth (Boylen and Kuliopulo, 1981). The littoral zone of Lake George comprises approximately 8,058 acres or twenty-nine percent (29%) of the overall water coverage area and is the area where activities such as boating, swimming, scuba diving, and much of the other recreational activities occur. This area also serves as the primary habitat for many game fish attracting recreational and sport fishermen or “anglers.”

The adverse economic effect of future AIS invasions and outbreaks will be most felt along the 3,130 shoreline properties along Lake George and extending through eight (8) municipalities (the Towns of Dresden, Fort Ann, Putnam, Bolton, Hague, Lake George (inclusive of the Village of Lake George), Queensbury and Ticonderoga) within three (3) counties (Washington, Warren and Essex). Additionally, it is acknowledged that the economic impact of AIS may have implications to upland (off shore) properties. The proposed rule is needed to reduce the risk of introduction and spread of aquatic invasive species by subjecting all trailered vessels to inspection, and if determined necessary, decontamination prior to launch into the waters of Lake George Park. It is anticipated that a mandatory boat inspection program will have a net positive impact on the water quality, ecology, recreational uses and economic health of the Lake George Park by significantly reducing the threat of AS from being introduced to the waters in Lake George Park and causing new ecological impacts.

2. Compliance requirements:

Local launches will be required to secure their launches in off hours in some fashion that is acceptable to the Commission. This might require the launch to install a gate or surveillance equipment for its launches. Most businesses already limit launches to business hours only and this will have little effect on these businesses.

Businesses and municipalities will also be expected to keep and maintain records of boats that launch from their facilities to ensure that such boats have been properly inspected prior to launch. Boats that have been properly inspected will be sealed to their trailers. The launch owner or operator will have to cut the seal from the boat’s trailer prior to allowing the boat to launch in the lake. The launch owner or operator will also keep a record of this boat and the seal. The launch owner or operator will also re-seal any boat requesting to be re-sealed upon exiting the lake. Boats that are re-sealed upon leaving the lake may reenter the lake without being re-inspected. The launch owner or operator must also record any boats that leave the lake and are re-sealed and keep any unused seals. These record-keeping requirements are not expected to be extensive or burdensome. Most businesses that operate a launch already employ sufficient staff to perform these tasks. Moreover, the Commission is committed to work with the affected businesses and municipalities to find the most cost-effective solution to implement the regulations. Local businesses currently are required to obtain authorization or permits from the Commission for their marina activities and to construct and install docks on their facilities. The additional interaction with the Commission required by this regulation is not expected to be burdensome.

3. Professional services:

Some businesses and municipalities may have to hire additional staff to monitor their launches. These positions are labor, as opposed to professional, positions, however.

4. Compliance costs:

The costs for compliance will be the cost of additional personnel, if any, to monitor launches and maintain records and the cost to secure the business or municipality’s launch during off season hours. Each business or municipality is permitted to use whatever method it chooses, with the Commission’s authorization, to secure its launch, thus allowing the property owner to use the most cost-effective means available to implement the rule.

5. Economic and technological feasibility:

Compliance with the rule is both economic and technologically feasible. As set forth above, most marinas and other businesses offering launches already restrict launches to business hours and employ staff to assist customers in launching their boats. These staff members could perform the additional requirement of insuring that those boats launched from their facilities have been properly inspected prior to launch.

6. Minimizing adverse impact:

The proposed compliance requirement minimizes adverse impact to the potentially affected businesses and municipalities. The mandatory boat inspection program is the most feasible method of to prevent the further spread of aquatic invasive species into the waters of Lake George. Although there may be some initial adverse impacts from boaters who are unfamiliar with the cleaned, drained and dry protocol and who do not understand the boat inspection program, the Commission has and will institute a boater education program and public outreach to educate boaters on the new regulations. The regulation also provides that boats that were last launched in the Lake George Park do not have to be re-inspected before launching and may provide a means whereby “frozen boats,” i.e. boats which have been out in below-freezing temperatures for at least 3 weeks could be certified as invasives-free, and tagged as if they were inspected. The Commission estimates that approximately 2/3 of all boats that annually launch in Lake George only launch in Lake George.

7. Small business and local government participation:

The Commission has conducted many meetings with municipalities, local chambers of commerce, business groups and environmental groups related to the proposed regulation. These conversations included means and methods of preventing the spread of aquatic invasive species into the lake. No alternative methods have been discovered that would be less adverse to small businesses and, at the same time, meet the objective of the proposal. The municipalities and the majority of the businesses involved in these discussions have been in favor of the regulation. Some businesses, while not opposed to the regulation, have expressed concern that they may lose customers to other lakes or businesses who do not comply with the regulations. Education and, if necessary, enforcement will be key to ensuring that any adverse effects to businesses are minimized. The Commission will hold two additional public information meetings on the proposal, at a southern and northern location along Lake George. The Commission will provide educational information about the program on its web site and will work with the local media, other not-for-profit groups and other agencies such as DEC and Parks and Recreation to assist in a public outreach and education campaign.

The Affects of Mandatory Boat Inspections on Recreational Boating; Brad Wright; University of Northern Colorado; 2009.¹

1. Types and estimated numbers of rural areas:

The Lake George Park is a rural area comprising some 300 square miles in land and water surface area. Of the approximately 255 miles of land surface, some 100 square miles is State-owned forest preserves. The whole area is located within the Adirondack Mountain region occupying an area at the south-eastern portion of the Adirondack Park. It is characterized by steeply sloped forested mountains and hillside areas with a number of streams and smaller lakes and ponds. Lake George is a 44 square mile glacially-formed lake that is 32 miles long, has an average width of 1.5 miles and an average depth of approximately 70 feet. Lake George includes approximately 131 miles of shoreline and is fed by more than 150 streams.

Development in the Lake George Park is concentrated along the lakeshore and nearby State highways of Route 9, 9L and 9N. There are fifteen local government entities, three counties and twelve municipalities all or partially within the Lake George Park. The population of the park expands by ten-fold in the summer months.

2. Reporting, recordkeeping and other compliance requirements; and professional services:

Local launches will be required to secure their launches in off-hours in some fashion that is acceptable to the Commission. This might require the launch owner to install a gate or surveillance equipment. Most businesses already limit launches to business hours only and this will have little effect on these businesses.

Businesses and municipalities will also be expected to keep and maintain records of boats that launch from their facilities to ensure that such boats have been properly inspected prior to launch. Boats that have been properly inspected will be sealed to their trailers. The launch owner or operator will have to cut the seal from the boat’s trailer prior to allowing the boat to launch in the lake. The launch owner or operator will also keep a record of this boat and the seal. The launch owner or operator will also re-seal any boat requesting to be re-sealed upon exiting the lake. Boats that are re-sealed upon leaving the lake may reenter the lake without being re-inspected. The launch owner or operator must also record any boats that leave the lake and are re-sealed and keep any unused seals. These record-keeping requirements are not expected to be extensive or burdensome. Most businesses that operate a launch already employ sufficient staff to perform these tasks. Moreover, the Commission is committed to work with the affected businesses and municipalities to find the most cost-effective solution to implement the regulations. Local businesses currently are required to obtain authorization or permits from the Commission for their marina activities and to construct and install docks on their facilities. The additional interaction with the Commission required by this regulation is not expected to be burdensome.

No professional services are anticipated to be necessary for any marina, launch operator or municipality to comply with the regulation.

3. Costs:

The proposed regulation may impose some slight additional costs to local governments and small businesses who would be required to monitor boats coming entering and leaving their launches, to maintain records of launches from their properties and to secure their launches in some manner during off-hours. These costs are expected to be minor, however. The regulation does not mandate the method by which the launches must be secured, only that the Commission approve the method of security. Only 2 municipal launches will be affected: one in the Town of Putnam and one in the Town of Hague. It is not expected that the Town of Hague will require any additional personnel to implement this regulation. The Town of Putnam may need to hire one additional person to monitor boats coming in and out of Lake George at that location. Marinas and launch operators generally employ people to assist customers in the launching of their boats and it is expected that these same employees can perform the duties required by the regulation. Marinas and launch operators also require a fee from boaters prior to launching from their facilities and these facilities are usually closed during off hours. It is not expected that these businesses would incur much if any expense to implement this regulation.

Requiring boat inspections may cause some individuals to stay away from Lake George or choose to visit the lake less frequently. This would have impacts on tourism and the regional economy. Data from other lakes with inspection programs indicate that changes in boat usage after mandatory boat inspections are implemented is minimal or is within the annual variability of year-to-year recreational pursuit changes.

The regulation might increase markets for boats that are only launched on the Lake George Park during a boating season. Such boaters will be exempt from inspection, if they can prove through their boats being sealed to their trailers or otherwise, that they last launched in the Lake George Park. Overall, the program is expected to increase the quality of the water of Lake George and thereby preserve and increase tourism and jobs for the area.

The regulation will increase costs and demands on the Commission staff due to the need for staffing 5 inspection and decontamination stations, increased public outreach and education, and enforcement of the regulation. The expected annual cost for staffing the program is anticipated to be $700,000.

4. Minimizing adverse impact:

The Commission has minimized unnecessary adverse impacts on New York State jobs by creating an inspection program designed to prevent the spread of AIS into the waters of the Lake George Park, preserving the quality of the water for health, recreational, economic and tourism activities. The Commission has minimized the adverse effect of the regulation by streamlining the inspection process as much as possible, minimizing the fees charged for the process and allowing launch operators to devise their own method of securing their launches to best suit their business model.

5. Rural area participation:

The Commission has already held over 50 public meetings and intends to hold two more public information meetings around the Lake George Park to inform the public of the proposed regulations, the need for them, how they will affect local businesses and tourism and how all can comply with the regulation.

1. Nature of impact:

The regulation is not expected to have any significant impact on job numbers. There are some businesses, such as marinas, hotels and motels and quick launches, which will be required to keep monthly records of the launches from those facilities. These businesses will also be required to keep their launches secured during times when no inspectors are available, such as nighttime hours.

Requiring boat inspections may also cause some potential tourists to stay away from Lake George or choose to visit the lake less frequently. This would have impacts on tourism and regional economy. Data from other lakes with inspection programs indicate that changes in boat usage after mandatory boat inspections are implemented is minimal or is within the annual variability of year-to-year recreational pursuit changes.¹

The inconvenience and costs of the regulation are offset by the enormous benefit the regulation is expected to have on the quality of the waters of the Lake George Park and to the public health and recreation, the local economy and tourism in the Lake George area. AIS have the potential to cause significant, long-term damage to the Lake George environment and cost millions of dollars to control in the future. These negative impacts could extend to the local tax base and the robust tourism industry.

The cost of managing existing AIS is extensive. Over the last 26 years (1986-2012), it has cost the Lake George community an estimated $6.5 million dollars to combat three different AIS in the Lake. The future threat of new AIS introductions to the Lake George Park and Lake George itself is high and the outcome of large or extensive uncontrolled growth of AIS may result in significant impacts to the regional economy. The areas where AIS are expected to proliferate are in the same areas where most recreational activities occur and most launches, docks and moorings are located. The adverse economic effect of future AIS invasions and outbreaks will be most felt along the 3,130 shoreline properties along Lake George and extending through eight (8) municipalities (the Towns of Dresden, Fort Ann, Putnam, Bolton, Hague, Lake George (inclusive of the Village of Lake George), Queensbury and Ticonderoga) within three (3) counties (Washington, Warren and Essex). The proliferation of additional AIS into the waters of the Lake George Park is expected to have a significant negative impact on tourism to the region, negatively impacting jobs in the area. If nothing is done to stop the spread of existing and new AIS into Lake George, the loss in total annual tourism expenditures is estimated to range between $9.74 million to $48.7 million. The annual loss in visitor events is estimated to be approximately 146,600 to 733,000 events. Tourism-related employment is estimated to experience a net loss of approximately 162 to 800 jobs with a corresponding reduction in wages paid ranging from approximately $4.55 million to $22.74 million.

The proposed rule is the most efficient method of reducing spread of existing AIS and preventing the introduction of new AIS into Lake George. The rule is reduces the risk of introduction and spread of aquatic invasive species by subjecting all trailered vessels to inspection, and if determined necessary, decontamination prior to launch into the waters of Lake George Park. It is anticipated that a mandatory boat inspection program will have a net positive impact on the water quality, ecology, recreational uses and economic health of the Lake George Park by significantly reducing the threat of AS from being introduced to the waters in Lake George Park and causing new ecological impacts.

The overall impact on jobs is expected to be positive, as the Commission will hire 30-40 additional staff to perform inspections and, if necessary, decontamination.

2. Categories and numbers affected:

The jobs affected would primarily be laborer types, requiring some training, related to inspection and decontamination of boats. These jobs would be seasonal from April through November, depending annually on weather conditions.

3. Regions of adverse impact:

The regulations apply only to the Lake George Park.

4. Minimizing adverse impacts:

The Commission has minimized unnecessary adverse impacts on New York jobs by making the boat inspections as streamlined as possible and by providing a means by which boats that are only launched in the Lake George Park during a season would be exempt from inspections. In addition, the Commission is considering a frozen boat program which would allow those boaters who can demonstrate that their boat was in frozen conditions sufficient to destroy any AIS prior to being launched into the Lake George Park may bypass the inspection. The program is expected to have a positive impact on jobs by providing for additional staffing at the Commission. Local businesses and municipalities may also hire additional personnel to ensure that boats launched from these facilities have been properly tagged and are tagged as they leave the launch, if requested.

5. Self-employment opportunities:

All inspectors are to be hired and trained by the Commission, so the program does not offer any self-employment opportunities.