It is recognised that there is the potential for pollution incidents when boats are refuelled at fuel pontoons. One litre of spilt fuel can contaminate one million litres of water, with potentially serious consequences to marine flora and fauna. Oil and fuels are the most frequently reported pollutant of inland waters in England and Wales. The majority comes from everyday sources like refuelling, engine emissions and oil leaks.

General Precautions

• When fuelling, avoid topping off or overfilling to reduce the risk of fuel overflowing from vents. Allow room for expansion in the tank.
• Use a funnel when pouring fuel or oil.
• Avoid using oil and fuel on the pontoons, other than on those dedicated to refuelling. Off the boat, the Government recommends a distance of at least 10m from the water.
• Good maintenance of fuel lines, connections and seals helps avoid leaks.
• The most effective way to clean oily bilge water is to use an oil absorbent sock.
• Check bilge water for contaminants before routine pumping.
• Dispose of all oily or fuel-soaked materials in the hazardous waste containers.
• A drip tray under the engine is a requirement on many waterways. If it starts getting oily, find and mend the leak!

Further precautions when fuel supplied by road tanker

• Mooring lines should be tight and checked regularly throughout supply.
• There should be adequate length of transfer hose to avoid undue strain on the fuel connection.
• The hose should be in good condition, with no visible sign of damage.
  (Bulges, gouges, damage to the hose reinforcement).
• The connection at the vessel manifold must be sufficiently tightened and sealed.
• Vessel scuppers should be plugged and appropriate spill protection equipment readily available.
• The emergency shutdown procedure should be established with both crew and supplier before delivery takes place.
• There should be a no smoking ban with clear signs in place throughout fuelling and fire fighting equipment must be at the ready.
• Quantity and pumping rate should be agreed with the vessel and supplier before delivery.
• A vessel representative should inspect the trucks and agree the quantity before delivery.
• A vessel representative should witness the sampling of the product during delivery.
• Official sealed and documented samples should be retained by both vessel and supplier.
• Final quantity received on board should be agreed and signed for on the delivery note at completion of loading.

In the event of a spillage

To reduce the risk of serious pollution incidents, an emergency fuel spill kit box is kept in some marinas or the vessel itself carries it’s Emergency Spill products. This normally consists of oil/fuel absorbent pads and a containment boom. These absorbent materials pick up and contain hydrocarbons without water logging or sinking. Spills can therefore be effectively and efficiently dealt with,

Preventing serious pollution incidents from occurring.

For further information on the oil/fuel spill kits that are available, visit the Green Directory:http://thegreenblue.org.uk/greendirectory/index.asp. There are also spill kit products for the individual boat owner; these include fuel collars to catch any drips when refuelling, bilge socks and pads to deal with accidental spills and in line filters for bilge pumps.

www.marinefuelpoint.com

 From the 1^st November 2008 red diesel continues to be available to recreational boaters albeit fuel used for propulsion will be subject to the full rate of duty whilst fuel for domestic purposes e.g. heating, lighting etc will continue to be at the rebated rate.

Boat owners engaged in commercial boat operations e.g. yacht charters and deliveries

will continue to purchase fuel for propulsion at the rebated rate.

The new system works as follows for leisure boat owners. A written declaration is made to the vendor before purchase stating the percentage of fuel used for propulsion the balance as a percentage for domestic use. HMRC and the industry suggest a split of 60% for propulsion and 40% for domestic use, but the apportionment split is purely down to the owners intended usage and a level of honesty is required. After all HRMC may review the situation if the system does not work. 

The wording prescribed by HMR&C for this declaration is:-
“I declare that [  ] % of the fuel purchased will be used for propelling a private pleasure craft” and then the owner will be asked to pay the full rate of duty on the declared proportion of the fuel purchased. The vendor may also have a form to complete. Once the declaration is made there is nothing more to do.

HMRC have confirmed that VAT is charged at the reduced rate of 5% on fuel for propulsion and domestic use. A worked example is given below

This example assumes a 60% (propulsion) and 40% (domestic) split for a purchase of 100 litres of red diesel (the price of diesel is assumed to be 0.70ppl which includes 9.69ppl duty already paid to fuel supplier):

·         Propulsion calculation (i.e. 60%)

       60 litres @ 0.70ppl = £42
       60 litres @ 0.4066 = £24.40 (additional duty)
       VAT @ 5% = £3.32

     Propulsion Total = £69.72

·         Domestic calculation (i.e. 40%)

       40 litres @ 0.70ppl = £28
       VAT @ 5% = £ 1.40

     Domestic Total = £29.40

Transaction Total = £99.12

Don’t forget to keep invoices on board if travelling abroad on your boat where legislation for red diesel consumption can be different.

Overall the industry has welcomed this new system which has helped to alleviate major worries from leisure boat owners and the U.K. boating industry as a whole. Now let’s see if both U.K. boat owners, fuel suppliers and the HRMC can make the system work.

www.marinefuelpoint.com  08 December 2008.