Fisheries of the Caribbean, Gulf of America, and South Atlantic; Extension of the Commercial Shrimp Permit Moratorium in the Gulf of America

Issuing agencies

Abstract

NMFS issues this proposed rule and seeks public comment on a management measure proposed in Amendment 19 to the Fishery Management Plan for the Shrimp Fishery of the Gulf (Shrimp FMP) and this proposed rule. If implemented by NMFS, Amendment 19 and this proposed rule would extend the moratorium on the issuance of new commercial shrimp permits in the Gulf of America (Gulf). NMFS implemented the existing shrimp permit moratorium, which is set to expire after October 26, 2026, to stabilize fishing effort and prevent overcapacity in the Gulf shrimp fishery. This proposed rule would extend this permit moratorium for an additional 10 years.

Full Text

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<title>Federal Register, Volume 91 Issue 163 (Tuesday, August 25, 2026)</title>
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[Federal Register Volume 91, Number 163 (Tuesday, August 25, 2026)]
[Proposed Rules]
[Pages 54841-54844]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-17300]


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DEPARTMENT OF COMMERCE

National Oceanic and Atmospheric Administration

50 CFR Part 622

[Docket No. 260819-0006]
RIN 0648-BO31


Fisheries of the Caribbean, Gulf of America, and South Atlantic; 
Extension of the Commercial Shrimp Permit Moratorium in the Gulf of 
America

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 issues this proposed rule and seeks public comment on a 
management measure proposed in Amendment 19 to the Fishery Management 
Plan for the Shrimp Fishery of the Gulf (Shrimp FMP) and this proposed 
rule. If implemented by NMFS, Amendment 19 and this proposed rule would 
extend the moratorium on the issuance of new commercial shrimp permits 
in the Gulf of America (Gulf). NMFS implemented the existing shrimp 
permit moratorium, which is set to expire after October 26, 2026, to 
stabilize fishing effort and prevent overcapacity in the Gulf shrimp 
fishery. This proposed rule would extend this permit moratorium for an 
additional 10 years.

DATES: Written comments on the proposed rule must be received no later 
than September 24, 2026.

ADDRESSES: A plain language summary of this proposed rule is available 
at <a href="https://www.regulations.gov/docket/NOAA-NMFS-2026-1387">https://www.regulations.gov/docket/NOAA-NMFS-2026-1387</a>. You may 
submit comments on this document, identified by NOAA-NMFS-2026-1387, by 
either of the following methods:
    <bullet> Electronic Submission: Submit all electronic public 
comments via the Federal e-Rulemaking Portal. Visit <a href="https://www.regulations.gov">https://www.regulations.gov</a> and type NOAA-NMFS-2026-1387 in the Search box. 
Click on the ``Comment'' icon, complete the required fields, and enter 
or attach your comments.
    <bullet> Mail: Submit all written comments to Frank Helies, 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 
will not be considered by NMFS. All comments received are part of the 
public record and will generally be posted for public viewing on 
<a href="https://www.regulations.gov">https://www.regulations.gov</a> without change. All personal identifying 
information, 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.
    An electronic copy of Amendment 19 is available from <a href="https://www.regulations.gov">https://www.regulations.gov</a> or from the NMFS Southeast Regional Office website 
at <a href="https://www.fisheries.noaa.gov/action/amendment-19-shrimp-permit-moratorium">https://www.fisheries.noaa.gov/action/amendment-19-shrimp-permit-moratorium</a>. Amendment 19 includes a Regulatory Flexibility Act (RFA)

[[Page 54842]]

analysis, regulatory impact review, and fishery impact statement.

FOR FURTHER INFORMATION CONTACT: Rich Malinowski, NMFS Southeast 
Regional Office, telephone: 727-824-5305, or email: 
<a href="/cdn-cgi/l/email-protection#e5978c868dcb8884898c8b8a92968e8ca58b8a8484cb828a93"><span class="__cf_email__" data-cfemail="54263d373c7a3935383d3a3b23273f3d143a3b35357a333b22">[email&#160;protected]</span></a>.

SUPPLEMENTARY INFORMATION: The shrimp fishery in the Gulf is managed 
under the Shrimp FMP. The Shrimp FMP was prepared by NMFS and the Gulf 
Fishery Management Council (Council), and is implemented by NMFS 
through regulations at 50 CFR part 622 under the authority of the 
Magnuson-Stevens Fishery Conservation and Management Act (Magnuson-
Stevens Act). This action is proposed under the statutory authority of 
the Magnuson-Stevens Act section 303(b)(6).

Background

    Prior to 2001, approximately 4,000 vessels fished for shrimp 
annually in Federal waters of the Gulf. To improve the collection of 
fishing effort and catch data, NMFS implemented a Federal permit 
requirement for all vessels harvesting shrimp commercially from Gulf 
Federal waters through the final rule for Amendment 11 to the Shrimp 
FMP (67 FR 51074, August 7, 2002). Between 2002 and 2006, NMFS issued 
permits to approximately 2,951 vessels. During that time, the shrimp 
fishery experienced economic losses, primarily because of high fuel 
costs and reduced shrimp prices caused by competition from imports. 
These economic losses resulted in the exodus of vessels from the 
fishery and reduced fishing effort. Despite this exodus, the fishery 
remained overcapitalized, with more vessels than needed to harvest the 
available shrimp resources at the most profitable level. To prevent 
effort from returning to former levels that further reduced or removed 
profitability for the fleet overall, the Council recommended a 10-year 
moratorium on the issuance of new Federal commercial shrimp vessel 
permits through Amendment 13 to the Shrimp FMP, while still allowing 
for permit transferability. NMFS implemented the final rule for the 
moratorium on October 26, 2006 (71 FR 56039, September 26, 2006), and 
issued 1,933 vessel permits under the qualifying criteria of the 2006 
rule by 2008.
    The Council subsequently considered the need to continue limiting 
access to the fishery in Amendment 17A to the Shrimp FMP. The Council 
recommended extending the permit moratorium unchanged for an additional 
10 years to maintain stability and prevent overcapacity in the shrimp 
fishery. The Council chose not to permanently limit access to the 
fishery at that time because economic conditions could change in the 
future. On August 22, 2016, NMFS implemented the final rule continuing 
the moratorium for an additional 10 years, through October 26, 2026 (81 
FR 47733, July 22, 2016). Based on the rationale explained further in 
Amendment 19, the Council recommended continuing the permit moratorium 
for an additional 10 years to maintain stability and prevent 
overcapacity in the shrimp fishery.
    Only a valid Gulf shrimp permit can be used to commercially harvest 
Gulf shrimp. A shrimp vessel permit remains valid if it is renewed and 
is renewable within 1 year of its expiration date. After 1 year from 
the expiration date with no renewal, a permit is terminated and 
permanently removed from the pool of available permits. From 2019 
through 2023, the average annual number of vessels with valid Gulf 
shrimp moratorium permits was 1,376, though the number of vessels with 
permits declined each year during this time. In 2024, 1,287 moratorium 
permits were valid or renewable. Accordingly, since NMFS renewed the 
1,933 shrimp vessel permits in 2008, the number of permits has 
decreased by 646. NMFS has permanently removed those 646 permits from 
the permit pool.

Management Measure Contained in This Proposed Rule

    NMFS seeks public comment on the following management measure in 
this proposed rule.
    If implemented by NMFS, Amendment 19 and this proposed rule would 
extend the moratorium on the issuance of new commercial shrimp vessel 
permits in the Gulf for an additional 10 years or through October 26, 
2036. The purpose of this proposed rule is to continue limiting the 
total number of permits. Gulf shrimp stocks are currently healthy, but 
the previously mentioned non-regulatory issues continue to hinder the 
profitability of the commercial shrimp fleet and to cause the decline 
in shrimping effort throughout the Gulf.
    NMFS expects this proposed rule would continue to result in 
positive impacts for those who hold Federal Gulf commercial shrimp 
permits because the permits would retain value as a limited asset, 
which would be lost if the moratorium were to expire. Permits would 
continue to be transferable, allowing for entry to and exit from the 
shrimp fishery. While new entrants would be required to pay more for a 
moratorium permit versus an open access permit, NMFS expects the 
benefits of this action to current permit holders would outweigh the 
cost to any new entrants. The cost of acquiring a shrimp moratorium 
permit, when compared to similar limited access commercial permits in 
other fisheries, is comparably low. For example, from 2022 through 
2024, the median price to transfer a Federal Gulf shrimp permit was 
$5,250, when other permits can be several times more expensive.
    Extending the moratorium would also provide the Council with time 
to re-evaluate the minimum shrimp permit threshold for optimizing yield 
in the fishery in light of new science and the current economic 
condition of the fishery. The Council established a threshold of 1,072 
Gulf shrimp permits in Amendment 17B to the Shrimp FMP, and currently 
there are approximately 1,200 valid or renewable Gulf shrimp permits 
(82 FR 60564, December 21, 2017). The minimum permit threshold 
represents the predicted number of vessels needed to achieve aggregate 
optimum yield in the fishery, while accounting for high shrimp catch 
per unit effort and landings, and reducing the risk of exceeding 
thresholds of sea turtle and juvenile red snapper bycatch.
    To further gauge industry's perspective on this issue, NMFS also 
requests public comment on an alternative option for implementing a 
shorter moratorium extension, for example, a 5-year extension, which 
would expire after October 26, 2031. A shorter timeframe would 
encourage the Council and NMFS to reconsider the need for the 
moratorium at an earlier point in time once the Council completes its 
re-evaluation of the appropriateness of the current minimum shrimp 
permit threshold. However, it should be noted that the moratorium could 
be eliminated at any time through a new FMP amendment and rulemaking.

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 with Amendment 19, the Shrimp FMP, 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 (E.O.) 12866.
    An initial regulatory flexibility analysis (IRFA) was prepared, as 
required by section 603 of the Regulatory Flexibility Act (RFA). The 
IRFA describes the economic impact this proposed rule, if adopted, 
would

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have on small entities. A description of this proposed rule, why it is 
being considered, and the objectives of this proposed rule are 
contained earlier in the SUPPLEMENTARY INFORMATION section of this 
proposed rule. A copy of the full analysis is available from NMFS (see 
the ADDRESSES section). All monetary estimates in the following 
analysis are in 2023 dollars.
    The Magnuson-Stevens Act provides the statutory basis for this 
proposed rule. No duplicative, overlapping, or conflicting Federal 
rules have been identified. In addition, no new reporting, record-
keeping, or other compliance requirements are introduced by this 
proposed rule.
    Amendment 19 and this proposed rule address the expiration of the 
Federal shrimp permit moratorium in the Gulf by proposing to extend the 
moratorium for 10 years, to expire after October 26, 2036, for 
commercial shrimp vessels in the Gulf. The moratorium, first 
established for 10 years through Amendment 13 to the Shrimp FMP, and 
then renewed for another 10 years through Amendment 17A to the Shrimp 
FMP, is set to expire after October 26, 2026. The moratorium was 
implemented to create stability and prevent overcapacity in the Gulf 
shrimp fishery.
    This proposed rule is expected to directly regulate all federally 
permitted commercial fishing businesses that participate in the Gulf 
shrimp fishery. None of the proposed changes would directly apply to 
federally permitted dealers or processors. Any change in the supply of 
shrimp available for purchase by dealers or processors because of the 
proposed rule, and associated economic effects, would be indirect 
effects of the proposed rule and would therefore fall outside the scope 
of the RFA. Additionally, as described in the Regulatory Impact Review 
of Amendment 19, by extending the moratorium, this proposed rule would 
be expected to increase barriers to entry for new participants compared 
with the status quo in which the moratorium would expire. The number of 
small entities that would intend to enter the Federal Gulf shrimp 
fishery in the future and their operating characteristics are unknown 
and cannot be estimated with available data.
    From 2019 through 2023, the average annual number of vessels with 
valid Gulf shrimp moratorium permits was 1,376, though the number of 
vessels with permits declined each year during this time. As of 
December 31, 2024, there were 1,287 vessels with valid or renewable 
Gulf shrimp moratorium permits. From 2019 through 2023, the average 
number of vessels with valid permits that actively fished (i.e., had 
landings) in the Gulf shrimp fishery was 932. On average (2019 through 
2023), each active shrimp vessel with a Federal Gulf shrimp permit 
earned $332,653 in gross revenue per year from commercial fishing 
operations. Net cash flow per vessel was $21,249 and net operating 
revenue per vessel was $4,810, on average, during this period. Average 
annual net cash flow and net revenue from operations for average active 
vessels were positive and increasing through 2021; however, both turned 
negative in 2022 and remained so in 2023. In 2023, average net cash 
flow per vessel was -$4,885 and average net operating revenue per 
vessel was -$14,635. These numbers correspond with deteriorating 
economic conditions for the shrimp fishery seen in recent years, 
including low shrimp prices, increased foreign competition, and rising 
operating costs. From 2019 through 2023, the maximum annual gross 
revenue earned by a single federally permitted commercial shrimp vessel 
was approximately $1.51 million in 2020.
    NMFS does not possess complete ownership data for businesses and 
vessels that participate in the Federal Gulf shrimp fishery. Therefore, 
it is not currently feasible to accurately determine affiliations 
between these particular businesses. As a result of the incomplete 
ownership data, for purposes of this analysis, it is assumed that each 
of the aforementioned vessels is independently owned by a single 
business, which is expected to result in an overestimate of the actual 
number of businesses directly regulated by this proposed rule. Thus, 
this proposed rule is estimated to directly regulate up to 1,287 
businesses in the commercial Gulf shrimp fishing industry.
    For RFA purposes only, NMFS has established a small business size 
standard for businesses, including its affiliates, whose primary 
industry is commercial fishing (see 50 CFR 200.2). A business primarily 
engaged in commercial fishing (North American Industry Classification 
System code 11411) 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 $11 million for all its affiliated operations 
worldwide. All of the commercial fishing businesses directly regulated 
by this proposed rule are believed to be small entities based on the 
NMFS size standard. No other small entities that would be directly 
affected by this proposed rule have been identified.
    The proposed extension of the moratorium on the issuance of new 
Federal shrimp permits would preserve the asset value of the permits to 
existing commercial fishing businesses that currently hold Federal 
shrimp permits. It would also prevent costs associated with 
overcapitalization and increased competition within the shrimp industry 
under open access, which would reduce profitability for commercial 
fishing businesses. These effects cannot be quantified with existing 
data. In summary, the proposed extension of the moratorium would 
improve the economic profitability of shrimp harvesters relative to the 
status quo in which the moratorium is set to expire after October 26, 
2026. The extension of the moratorium would also increase barriers to 
entry for new participants relative to the status quo. However, factors 
such as increasing fuel prices, decreasing shrimp prices, and increased 
competition with imports are assumed to have a greater influence than 
the cost of a permit on the decision to enter the shrimp fishery.
    Two alternatives to the proposed action to extend the Gulf Federal 
shrimp permit moratorium for 10 years were considered. The first 
alternative, the no action alternative, would allow the moratorium to 
expire after October 26, 2026. This alternative would revert the 
commercial shrimp fishery to open access. Under this alternative, 
Federal shrimp permits would cease to have any market value. From 2022 
through 2024, the median price of a Federal Gulf shrimp permit was 
estimated to be $5,250. Although the number of potential permit buyers 
is not known, this loss in asset value would constitute adverse 
economic effects borne by current permit holders. Reverting to open 
access would, however, make it cheaper for new participants to obtain a 
permit and enter the fishery. This alternative was not selected because 
reverting to open access would fail to accomplish the intent of the 
moratorium, which was to help stabilize the shrimp fishery and prevent 
overcapacity. Open access would directly eliminate permit asset value 
and lead to broader negative impacts on fleet profitability, including 
overcapitalization, heightened competition, reduced catch per unit 
effort, and increasing the risk of exceeding thresholds of sea turtle 
and juvenile red snapper bycatch.
    The second alternative would establish a limited access program for 
commercial shrimp vessels in the Gulf, replacing the open access permit 
and

[[Page 54844]]

temporary moratorium with a new limited access permit. The only 
operational difference between the current open access permit with the 
moratorium and a new limited access permit is that the limited access 
permit would not have an expiration date. Current permit holders would 
receive the limited access permit if the vessel has a valid or 
renewable Federal Gulf commercial shrimp permit on October 26, 2026. 
The new Federal Gulf commercial shrimp vessel limited access permits 
would still need to be renewed every year, and all previous renewal, 
transfer, and reporting requirements would still be in effect. This 
alternative would provide long-term fleet stability and preserve permit 
asset value similar to the proposed rule, but without a built-in 
regulatory expiration date. Under this alternative, the previously 
described barriers to entry for new participants would be extended 
indefinitely. This alternative was not selected because establishing a 
limited access program without a mandatory sunset provision reduces the 
administrative imperative for timely, structured re-evaluations of 
fleet capacity. A fixed 10-year moratorium ensures that the Council and 
NMFS re-assess the appropriate threshold number of permits in a timely 
manner, incorporating updated scientific information, revised effort 
thresholds for fish bycatch and evolving protected species take limits.
    This proposed rule does not contain a change to a collection of 
information requirement for purposes of the Paperwork Reduction Act of 
1995. The existing collection of information requirements would 
continue to apply under the Office of Management and Budget Control 
Number 0648-0205, Southeast Region Permit Family of Forms.

List of Subjects in 50 CFR Part 622

    Fisheries, Fishing, Recordkeeping and reporting, Shrimp.

    Dated: August 19, 2026.
Samuel D. Rauch III,
Deputy Assistant Administrator for Regulatory Programs, National Marine 
Fisheries Service.

    For the reasons set out in the preamble, NMFS proposes to amend 50 
CFR part 622 as follows:

PART 622--FISHERIES OF THE CARIBBEAN, GULF OF AMERICA, 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. Amend Sec.  622.50, by revising the section heading and introductory 
paragraph (b) to read as follows:


Sec.  622.50   Permits, permit issuance moratorium, permit endorsement, 
and transit provision.

* * * * *
    (b) Moratorium on commercial vessel permits for Gulf shrimp. The 
provisions of this paragraph (b) are applicable through October 26, 
2036.
* * * * *
[FR Doc. 2026-17300 Filed 8-24-26; 8:45 am]
BILLING CODE 3510-22-P


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