Proposed Rule2023-01408
Reef Fish Resources of the Gulf of Mexico and Coastal Migratory Pelagic Resources of the Gulf of Mexico and Atlantic Region; Conversion of Historical Captain Permits
Primary source
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Published
January 27, 2023
Issuing agencies
Commerce DepartmentNational Oceanic and Atmospheric Administration
Abstract
NMFS proposes to implement management measures as described in an abbreviated framework action under the Fishery Management Plans (FMPs) for the Reef Fish Resources of the Gulf of Mexico (Reef Fish FMP) and Coastal Migratory Pelagic (CMP) Resources of the Gulf of Mexico and Atlantic Region (CMP FMP). This proposed rule would enable a permit holder to replace a historical captain endorsement in the reef fish and CMP fisheries in the Gulf of Mexico (Gulf) with a standard Federal charter vessel/headboat permit. NMFS expects that this proposed rule would reduce the potential regulatory and economic burden on historical captain permit holders.
Full Text
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<title>Federal Register, Volume 88 Issue 18 (Friday, January 27, 2023)</title>
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[Federal Register Volume 88, Number 18 (Friday, January 27, 2023)]
[Proposed Rules]
[Pages 5295-5298]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-01408]
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DEPARTMENT OF COMMERCE
National Oceanic and Atmospheric Administration
50 CFR Part 622
[Docket No. 230119-0017]
RIN 0648-BL58
Reef Fish Resources of the Gulf of Mexico and Coastal Migratory
Pelagic Resources of the Gulf of Mexico and Atlantic Region; Conversion
of Historical Captain Permits
AGENCY: National Marine Fisheries Service (NMFS), National Oceanic and
Atmospheric Administration (NOAA), Commerce.
ACTION: Proposed rule; request for comments.
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SUMMARY: NMFS proposes to implement management measures as described in
an abbreviated framework action under the Fishery Management Plans
(FMPs) for the Reef Fish Resources of the Gulf of Mexico (Reef Fish
FMP) and Coastal Migratory Pelagic (CMP) Resources of the Gulf of
Mexico and Atlantic Region (CMP FMP). This proposed rule would enable a
permit holder to replace a historical captain endorsement in the reef
fish and CMP fisheries in the Gulf of Mexico (Gulf) with a standard
Federal charter vessel/headboat permit. NMFS expects that this proposed
rule would reduce the potential regulatory and economic burden on
historical captain permit holders.
DATES: Written comments must be received by February 27, 2023.
ADDRESSES: You may submit comments on the proposed rule identified by
``NOAA-NMFS-2022-0121'' by either of the following methods:
<bullet> Electronic Submission: Submit all electronic public
comments via the Federal e-Rulemaking Portal. Go to <a href="http://www.regulations.gov">www.regulations.gov</a>
and enter ``NOAA-NMFS-2022-0121'' in the Search box. Click the
``Comment'' icon, complete the required fields, and enter or attach
your comments.
<bullet> Mail: Submit all written comments to Rich Malinowski, NMFS
Southeast Regional Office, 263 13th Avenue South, St. Petersburg, FL
33701.
Instructions: Comments sent by any other method, to any other
address or individual, or received after the end of the comment period
may not be considered by NMFS. All comments received are a part of the
public record and will generally be posted for public viewing on
<a href="http://www.regulations.gov">www.regulations.gov</a> without change. All personal identifying
information, e.g., name and address, confidential business information,
or otherwise sensitive information submitted voluntarily by the sender
will be publicly accessible. NMFS will accept anonymous comments--enter
``N/A'' in the required fields if you wish to remain anonymous.
Electronic copies of the abbreviated framework action may be
obtained from the Southeast Regional Office website at <a href="https://www.fisheries.noaa.gov/action/framework-action-historical-captain-permits-conversion-standard-federal-charter-headboat">https://www.fisheries.noaa.gov/action/framework-action-historical-captain-permits-conversion-standard-federal-charter-headboat</a>. The abbreviated
framework includes a Regulatory Flexibility Act (RFA) analysis and a
regulatory impact review.
FOR FURTHER INFORMATION CONTACT: Rich Malinowski, NMFS Southeast
Regional Office, telephone: 727-824-5305; email:
<a href="/cdn-cgi/l/email-protection#4a3823292264272b262324253d3921230a24252b2b642d253c"><span class="__cf_email__" data-cfemail="23514a404b0d4e424f4a4d4c5450484a634d4c42420d444c55">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION: The Gulf of Mexico Fishery Management
Council (Gulf Council) manages reef fish resources in the Gulf
Exclusive Economic Zone (EEZ) under the Reef Fish FMP. The CMP fishery
in the Gulf of Mexico and Atlantic Region is managed jointly by the
Gulf Council and South Atlantic Fishery Management Council (Councils).
NMFS implements the FMPs through regulations at 50 CFR part 622 under
the authority of the Magnuson-Stevens Fishery Conservation and
Management Act (Magnuson-Stevens Act) (16 U.S.C. 1801 et seq.).
Background
During the 1980s and 1990s, the number of charter and headboat
(for-hire) vessels operating in the recreational Gulf reef fish and CMP
fisheries increased rapidly, creating concern among the Gulf Council,
NMFS, and other members of the fishing industry about the viability of
the for-hire component and the sustainability of
[[Page 5296]]
the fish stocks they were harvesting. The Gulf Council was also
concerned about the rapid increase in the number of reef fish and CMP
for-hire permits and trips, and the increased proportion of the catch
harvested by the for-hire fleet.
In response to these concerns, the Gulf Council developed Amendment
14 to the CMP FMP and Amendment 20 to the Reef Fish FMP (CMP Amendment
14/Reef Fish Amendment 20) that, when implemented by NMFS, established
a 3-year moratorium on the issuance of new charter vessel/headboat
permits in the reef fish and CMP fisheries in the Gulf EEZ (67 FR
43558, June 28, 2002). The purpose of the moratorium was to cap the
number of for-hire permitted vessels while the Gulf Council evaluated
the need for further management actions to rebuild fishery resources. A
fully transferable reef fish or CMP charter vessel/headboat permit,
hereafter referred to as a standard permit, was issued to eligible for-
hire operators, including those individuals who (1) owned a vessel with
a valid charter vessel/headboat permit, or (2) could demonstrate that,
prior to March 29, 2001, they had a charter vessel or headboat under
construction, with associated expenditures of at least $5,000.
The Gulf Council recognized that some captains participating in the
for-hire reef fish and CMP fisheries operated other individuals'
vessels and did not own their vessels, and therefore were not eligible
for a standard permit. Under CMP Amendment 14/Reef Fish Amendment 20,
captains who met specific eligibility requirements could apply for a
permit with a historical captain endorsement, referred to hereafter as
a historical captain permit. Unlike a standard permit, a historical
captain permit is attached to the individual instead of a specific
vessel and has certain restrictions. A historical captain permit
requires the captain to be on the vessel when operating a for-hire
trip, and a historical captain permit cannot be transferred or sold.
Persons who submitted evidence of eligibility as a historical
captain within 90 days of the implementation of the CMP Amendment 14/
Reef Fish Amendment 20 were issued letters of eligibility, which could
be used to obtain a historical captain permit. Initially, NMFS issued a
total of 141 historical captain permits to harvest reef fish and CMP
species.
In 2006, NMFS implemented Reef Fish Amendment 25/CMP Amendment 17
(71 FR 28282, May 16, 2006), which established a limited access program
for permitting for-hire vessels for the reef fish and CMP fisheries in
the Gulf EEZ, effectively extending the permit moratorium indefinitely.
The historical captain permit continued to be a category of permit
following implementation of Reef Fish Amendment 25/CMP Amendment 17,
and previously issued letters of eligibility remained valid, as did the
historical captain permits, provided that permit holders followed
procedures for permit retention and renewal.
In April 2020, NMFS implemented a framework action developed by the
Gulf Council that allowed historical captain permit holders to convert
existing reef fish and CMP historical captain permits to standard
charter vessel/headboat permits (85 FR 22043, April 21, 2020). At that
time, 61 historical captain permits were eligible for the conversion,
and all of those permits have been converted to standard permits. The
Gulf Council developed the action after hearing public testimony about
the economic hardships caused by the restrictions imposed on historical
captain permits. Converting a historical captain permit allowed the
permit holder to lease the vessel to another captain, have another
captain operate the vessel, or transfer the permit to a family member
or any other eligible person. A fully transferable standard permit also
allows the family of a permitted captain who has died to retain the
permit, unlike a historical captain permit that expires upon the
captain's death.
In addition to allowing for the conversion of eligible historical
caption permits, the 2020 rulemaking rendered any remaining letters of
eligibility for historical captain permits invalid. However, some
individuals submitted their letters to NMFS before the effective date
of the 2020 rule and received historical captain permits. There are
currently 4 remaining historical captain permits (two reef fish and two
CMP) held by 2 individuals and the Council determined that it was
appropriate to allow these permit holders the opportunity to convert
their permits to a standard permit. This would eliminate the historical
captain permit category and reduce the regulatory and economic burden
on those remaining historical captain permit holders.
Each standard permit and historical captain permit provides a
maximum number of passengers allowed on board a vessel operating under
the permit. A standard permit issued as a result this proposed rule
would have the same maximum number of passengers as the historical
captain permit that it would replace.
Management Measures Contained in This Proposed Rule
This proposed rule would extend the same rights and
responsibilities of standard Gulf reef fish and CMP charter vessel/
headboat permits to eligible individuals who choose to convert their
historical captain permits to standard permits.
If an individual with an eligible historical captain permit wishes
to convert the permit to a standard reef fish or CMP charter vessel/
headboat permit, the individual would submit a permit application to
the NMFS Southeast Fisheries Permits Office along with their current
historical captain permit (original document, not a copy) and
supporting documents and fees, including documentation for the vessel
to which the standard for-hire permit would be attached. Unlike a
historical captain permit, which is issued to an individual, a standard
permit must be issued to a vessel with a valid U.S. Coast Guard (USCG)
certificate of documentation (COD) or state registration certificate
(50 CFR 622.4(a)). If the permit applicant is the owner of the vessel,
NMFS would verify that the vessel for which the new for-hire permit
would be issued is owned by the applicant and does not have an existing
Gulf reef fish or CMP charter vessel/headboat permit associated with
it, as vessels are not allowed to have multiple charter vessel/headboat
permits of the same type associated with them.
If the vessel to which the permit would be attached is to be
leased, a fully executed lease agreement of at least 7 months, between
the vessel owner and permit holder, would need to be included with the
application. Note that vessel owners and lessees cannot independently
hold permits for the same vessel at the same time. NMFS would then
verify the vessel does not have any other Federal permit associated
with it in another permit holder's name.
After NMFS verifies that the information provided with the
application allows for the conversion, the historical captain permit
would be converted to a standard permit for Gulf reef fish or Gulf CMP
species. Due to the uniqueness of the historical captain permit number,
the new permit would keep the existing permit number, e.g., HRCG-9999
would convert to RCG-9999.
Classification
Pursuant to section 304(b)(1)(A) of the Magnuson-Stevens Act, the
NMFS Assistant Administrator has determined that this proposed rule is
consistent
[[Page 5297]]
with the abbreviated framework action, the respective FMPs, other
provisions of the Magnuson-Stevens Act, and other applicable law,
subject to further consideration after public comment.
This proposed rule has been determined to be not significant for
purposes of Executive Order 12866.
Pursuant to section 605(b) of the Regulatory Flexibility Act (RFA),
the Chief Counsel for Regulation of the Department of Commerce has
certified to the Chief Counsel for Advocacy of the Small Business
Administration (SBA) that this proposed rule, if adopted, would not
have a significant economic impact on a substantial number of small
entities. The factual basis for this determination follows.
A description of this proposed rule, why it is being considered,
and the objectives of this proposed rule are contained in the
SUPPLEMENTARY INFORMATION section of this proposed rule. The Magnuson-
Stevens Act provides the statutory basis for this proposed rule. No
duplicative, overlapping, or conflicting Federal rules have been
identified.
This proposed rule, if implemented, would apply to operators of
charter vessels and headboats (for-hire vessels) that have a reef fish
or CMP historical captain permit. There are two historical captains
that each have a valid (non-expired) or renewable charter vessel/
headboat historical captain permit for Gulf reef fish and Gulf CMP
species for a total of four historical captain permits. Although the
for-hire permit application collects information on the primary method
of operation, the permit itself does not identify the permitted vessel
as either a charter vessel or a headboat and vessels may operate in
both capacities on separate trips. The average charter vessel is
estimated to receive approximately $94,000 (2021 dollars) in annual
gross revenue; the average headboat is estimated to receive
approximately $451,000 (2021 dollars) in annual gross revenue.
The SBA has established size standards for all major industry
sectors in the U.S. including for-hire businesses (NAICS code 487210).
A business primarily involved in the for-hire fishing industry is
classified as a small business if it is independently owned and
operated, is not dominant in its field of operation (including its
affiliates), and has combined annual receipts not in excess of $12.5
million for all its affiliated operations worldwide. All of the for-
hire businesses directly regulated by this proposed rule are believed
to be small entities based on the SBA size criteria. No other small
entities that would be directly affected by this proposed rule have
been identified.
This proposed rule would not establish any new reporting or record-
keeping requirements. It would, however, require historical captain
permit holders to comply with the standard permit regulations if their
historical captain permits are replaced with standard permits. The
regulations stipulate that the standard permit must be issued to a
vessel with a valid U.S. Coast Guard certificate of documentation or
state registration certificate (50 CFR 622.4(a)). For any historical
captain permit holder who elects to have their historical captain
permit replaced with a standard permit and who does not currently own
or lease a vessel, this would require either the purchase or lease of a
vessel and payment of applicable registration and inspection fees.
This proposed rule would grant two historical captain permit
holders the opportunity to replace their historical captain permits
with standard permits. Because standard permits are transferrable and
salable and historical captain permits are not, this would have
positive economic effects in terms of increased asset value and
business succession planning. Transfer values for a single standard
permit ranged from approximately $0.01 to $147,000 (2021 dollars)
during 2010 through 2018. It is not possible to estimate a meaningful
average market value for these permits with available data; however, it
is expected that the value would increase relative to the passenger
capacity of the historical captain permit. Additionally, once
historical captain permits are replaced with standard permits, the
historical captains would no longer need to be present on the vessel
while the permit is in use. This would provide greater operational
flexibility and potentially increase profits for affected small
entities.
There are also some potential economic costs to small entities from
this proposed rule. Because replacement of historical captain permits
with standard permits would be optional, only those permit holders who
choose to participate in the conversion would be affected. Standard
permits must be issued to a vessel that is either owned or leased by
the permit holder. Some historical captains may not currently own or
lease a vessel. To replace their existing permits with standard
permits, these historical captains would need to purchase or lease a
suitable vessel and pay all applicable inspection and registration
fees. An initial U.S. Coast Guard certificate of documentation is $133
and a renewal is $26 (46 CFR 67.550). If a U.S. Coast Guard certificate
of inspection is required, the annual inspection fee is $300 for
vessels less than 65 ft (19.8 m) and $600 for vessels 65 ft (19.8 m)
and greater in length overall (46 CFR 2.10-101(a)). State boat
registration and inspection fees in Gulf States are estimated to range
from approximately $10 up to $458, depending on the length of the
vessel and state of registration. Due to uncertainty about the business
strategies of historical captain permit holders, variation in permit
passenger capacities, and the wide range of vessel options, it is not
possible to estimate the cost that would be incurred by historical
captains to purchase or lease a vessel. The average purchase price for
a headboat operating in the Gulf is estimated to be $426,826 (2021
dollars); the average purchase price for a charter vessel operating in
the Gulf is estimated to be $114,494 (2021 dollars). If historical
captains intend to only sell their new standard permits, they could buy
a much cheaper vessel to hold the permit prior to the sale. Estimates
of for-hire vessel lease prices are not readily available; however,
this may be a more affordable option than purchasing a vessel.
In addition to the cost to buy or lease a vessel, there would be an
opportunity cost for some historical captains should they choose to
replace their historical captain permits with standard permits. This
opportunity cost pertains to the potential lost earnings that would
result from no longer being able to use their historical captain permit
to operate a vessel owned or leased by another individual or business.
This opportunity cost cannot be quantified with available data. To
extract value from the standard permit, historical captains would need
to either sell their permit or attach it to a purchased or leased
vessel capable of servicing paying customers. Again, replacement of
historical captain permits is voluntary and it is expected that
historical captains will only replace their historical captain permits
with standard permits if the benefits of doing so outweigh the costs.
In summary, the information provided above supports a determination
that this proposed rule would not have a significant economic impact on
a substantial number of small entities. As a result, an initial
regulatory flexibility analysis is not required and none has been
prepared.
This proposed rule contains no information collection requirements
under the Paperwork Reduction Act of 1995.
[[Page 5298]]
List of Subjects in 50 CFR Part 622
Fish, Fisheries, Gulf of Mexico, Historical captain, Permit.
Dated: January 19, 2023.
Samuel D. Rauch, III,
Deputy Assistant Administrator for Regulatory Programs, National Marine
Fisheries Service.
For the reasons set out in the preamble, 50 CFR part 622 is
proposed to be amended as follows:
PART 622--FISHERIES OF THE CARIBBEAN, GULF OF MEXICO, AND SOUTH
ATLANTIC
0
1. The authority citation for part 622 continues to read as follows:
Authority: 16 U.S.C. 1801 et seq.
0
2. In Sec. 622.20, revise paragraph (b)(1)(v) to read as follows:
Sec. 622.20 Permits and endorsements.
* * * * *
(b) * * *
(1) * * *
(v) Procedure for conversion of permit with historical captain
endorsement. A charter vessel/headboat permit with a historical captain
endorsement may be converted to a charter vessel/headboat permit for
Gulf reef fish without a historical captain endorsement. A charter
vessel/headboat permit with a historical captain endorsement that is
converted to a charter vessel/headboat permit without a historical
captain endorsement will retain the same vessel permit maximum
passenger capacity as the permit it replaces. To convert an eligible
charter vessel/headboat permit with a historical captain endorsement,
the permit holder must submit a permit application to the RA by
February 27, 2025. If no application to convert an eligible charter
vessel/headboat permit with a historical captain endorsement is
submitted by February 27, 2025, the permit holder will retain a charter
vessel/headboat permit with the historical captain endorsement that is
subject to the restrictions described in paragraph (b)(1)(i)(B) of this
section.
* * * * *
0
3. In Sec. 622.373, revise paragraph (f) to read as follows:
Sec. 622.373 Limited access system for charter vessel/headboat
permits for Gulf coastal migratory pelagic fish.
* * * * *
(f) Procedure for conversion of permit with historical captain
endorsement. A charter vessel headboat permit with a historical captain
endorsement may be converted to a charter vessel/headboat permit for
Gulf coastal migratory pelagic fish without a historical captain
endorsement as described in paragraph (b)(1) of this section. A charter
vessel/headboat permit with a historical captain endorsement that is
converted to a charter vessel/headboat permit without a historical
captain endorsement will retain the same vessel permit maximum
passenger capacity as the permit it replaces. To convert an eligible
charter vessel/headboat permit with a historical captain endorsement,
the permit holder must submit a permit application to the RA by
February 27, 2025. If no application to convert an eligible charter
vessel/headboat permit with a historical captain endorsement is
submitted by February 27, 2025, the permit holder will retain a charter
vessel/headboat permit with the historical captain endorsement that is
subject to the restrictions described in paragraph (b)(2) of this
section.
[FR Doc. 2023-01408 Filed 1-26-23; 8:45 am]
BILLING CODE 3510-22-P
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This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.