I'm sorry I am so late to this discussion because I could have cleared it up in a minute.
The surveyor is confused between what is regulation and what is an industry standard (voluntary) and some recalls mandated by the USCG.
First off the CFR citation
"CFR 58.10.d.1 states: Exhaust pipe installations shall conform to the requirements of the American Boat and Yacht Council Standard ABYC P-1 "Safe Installation for Exhaust Systems" and National Fire Protection Association Standard NFPA 302 part 1 section 23. "
This does not apply to recreational boats. It is contained in a portion of the CFR applying to commercial passenger carrying vessels. This of course does not mean that it isn't good practice. But it is not the law for recreational boats.
The USCG does not regulate exhaust systems on recreational boats. It only gets involved when there is a situation that can present a substantial risk of injury or death. That is what happened with the houseboats and the swim platforms. Manufacturers who had built houseboats with engine exhausts under swim platfroms or other projections that could trap exhaust gases were required to move the exhaust outlets. Manufacturers were advised (not ordered) to follow AbYC standard P-1 which does not specifically say where the exhaust must be. Rather, it says the exhaust should be where it will not be trapped. I was all too intimately involved with that recall.
There has been an effort to make most houseboats dry stack exhaust for several reasons. The main one is the old station wagon effect. Exhaust gases can be pulled in behind the boat because of the low pressure system immediately aft of the superstructure. So exhaust needs to go out into clean air where it will be carried away from the boat. Dry stacks accomplish this.
Owners of boats are encouraged by marine surveyors and the USCG to follow ABYC standards. Unfortunately most owners don't have access to the specific standard (see http://www.abycinc.org)
and rely on their surveyor or yard to tell them what is what. But sometimes the surveyor or yard doesn't get it quite correct.
Anyway, the exhaust on this boat does not have moved. I could be, but there is no requiremnet in law to do so. However a buyer may want to require it as part of a deal, or an insurance company may want to have it moved as a result of an insurance survey. Both of these are legitimate reasons, but the owner still has the option to say no.
1.5.1 The exhaust system shall be gas-tight to the hull interior.
1.5.2 To minimize the accumulation of hazardous CO gases from gasoline exhaust, the exhaust gas terminus(i)
shall be installed in one of the following locations:
22.214.171.124 in the proximity of the intersection of the hull side and transom on the side of the boat, or
126.96.36.199 in the bottom of the boat, or
188.8.131.52 in the transom positioned as far outboard of the centerline as practicable, or
184.108.40.206 above the highest occupied deck and its weather enclosure/cover.
NOTE: Selecting the appropriate terminus(i) location may vary depending upon the specific design of the
1.5.3 The exhaust terminus(i) of a generator(s) shall not be located in an easily occupied cavity(s) where exhaust gases may become trapped.
As you can see it is dependent on the specific design and the discretion of the builder.
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