Fisheries of the Caribbean, Gulf of Mexico, and South Atlantic; Reef Fish Resources of the Gulf of Mexico and Coastal Migratory Pelagic Resources of the Gulf of Mexico and Atlantic Region; Historical Captain Permits Conversions, 3885-3889 [2020-00935]
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Federal Register / Vol. 85, No. 15 / Thursday, January 23, 2020 / Proposed Rules
requiring modifications to fishing gear
and/or practices, NMFS would review
the action for potential adverse effects to
listed species under the ESA.
This proposed rule would have no
adverse impacts on sea turtles, and
information collected from observer
programs may have a positive impact on
sea turtles by improving knowledge of
sea turtles and the fisheries interacting
with sea turtles.
This proposed rule would not affect
the land or water uses or natural
resources of the coastal zone, as
specified under section 307 of the
Coastal Zone Management Act.
References
Lutcavage, M. E. and P.L. Lutz. 1997. Diving
Physiology. In: P.L. Lutz and J. Musick (eds.)
The Biology of Sea Turtles. ERC Press, Boca
Raton, FL. 432 pp.
Dated: January 15, 2020.
Samuel D. Rauch III,
Deputy Assistant Administrator for
Regulatory Programs, National Marine
Fisheries Service.
[FR Doc. 2020–01079 Filed 1–22–20; 8:45 am]
BILLING CODE 3510–22–P
DEPARTMENT OF COMMERCE
National Oceanic and Atmospheric
Administration
50 CFR Part 622
[Docket No. 200115–0018]
RIN 0648–BI12
Fisheries of the Caribbean, Gulf of
Mexico, and South Atlantic; Reef Fish
Resources of the Gulf of Mexico and
Coastal Migratory Pelagic Resources
of the Gulf of Mexico and Atlantic
Region; Historical Captain Permits
Conversions
National Marine Fisheries
Service (NMFS), National Oceanic and
Atmospheric Administration (NOAA),
Commerce.
ACTION: Proposed rule; request for
comments.
AGENCY:
NMFS proposes to implement
management measures as described in
an abbreviated framework action to the
Fishery Management Plans (FMPs) for
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), as prepared by the Gulf of
Mexico Fishery Management Council
(Gulf Council). This proposed rule
would modify the Federal regulations
for historical captain permits in the reef
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SUMMARY:
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fish and CMP fisheries in the Gulf of
Mexico (Gulf) Exclusive Economic Zone
(EEZ), to provide an opportunity for
eligible historical captain permit
holders to replace their permits with
standard Federal charter vessel/
headboat permits. It is expected that the
rule would reduce the regulatory and
economic burden on historical captain
permit holders. In addition, NMFS
proposes a correction to the regulations
regarding commercial king mackerel
permit requirements from an
inadvertent error in the final rule for
Amendment 20A to the FMP for the
CMP Resources in the Gulf of Mexico
and Atlantic Region.
DATES: Written comments must be
received on or before February 22, 2020.
ADDRESSES: You may submit comments
on the proposed rule identified by
‘‘NOAA–NMFS–2019–0081’’ by either
of the following methods:
• Electronic Submission: Submit all
electronic public comments via the
Federal e-Rulemaking Portal. Go to
www.regulations.gov/
#!docketDetail;D=NOAA-NMFS-20190081, click the ‘‘Comment Now!’’ icon,
complete the required fields, and enter
or attach your comments.
• Mail: Submit written comments to
Rich Malinowski, Southeast Regional
Office, NMFS, 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 www.regulations.gov
without change. All personal identifying
information (e.g., name, 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 Framework Amendment may be
obtained from the Southeast Regional
Office website at https://
www.fisheries.noaa.gov/action/
framework-action-replacementhistorical-captain-permits-standardfederal-charter-headboat. The
abbreviated framework includes a
Regulatory Flexibility Act (RFA)
analysis and a regulatory impact review.
FOR FURTHER INFORMATION CONTACT: Rich
Malinowski, Southeast Regional Office,
NMFS, telephone: 727–824–5305; email:
rich.malinowski@noaa.gov.
SUPPLEMENTARY INFORMATION: NMFS and
the Gulf Council manage reef fish
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resources in the Gulf EEZ under the
Reef Fish FMP. The CMP fishery in the
Gulf of Mexico and Atlantic regions is
managed jointly by the Gulf Council and
South Atlantic Fishery Management
Council (Councils).
The Gulf Council prepared the Reef
Fish FMP and the Councils jointly
prepared the CMP FMP. 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 (forhire) 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 industry
about the viability of the industry and
the sustainability of the fish stocks they
were harvesting. The Gulf Council was
also concerned about the rapid increase
in the number of reef fish and CMP forhire 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 3year 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,
which included 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 forhire 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, these captains were
eligible to apply for a permit with a
historical captain endorsement, referred
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Federal Register / Vol. 85, No. 15 / Thursday, January 23, 2020 / Proposed Rules
to hereafter as a historical captain
permit. Eligibility requirements for the
historical captain permit included
demonstrating a captain was licensed
and operated a federally permitted forhire vessel in the Gulf reef fish or CMP
fisheries before March 29, 2001, and
that at least 25 percent of their earned
income came from for-hire fishing in at
least one of the following years: 1997,
1998, 1999, or 2000.
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 a total of 141 historical captain
permits for reef fish and CMP charter/
headboat vessels were issued by the
NMFS Southeast Fisheries Permits
Office.
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, providing
permit procedures for retention and
renewal were followed.
In January 2018, the Gulf Council
began development of an action to allow
historical captain permit holders to
convert existing reef fish and CMP
historical captain permits to standard
charter vessel/headboat permits, after
hearing public testimony about the
economic hardships caused by the
restrictions imposed on historical
captain permits. Converting a historical
captain permit would allow the permit
holder to lease the vessel to another
captain or have another captain operate
the vessel. Additionally, unlike a
historical captain permit, a standard
permit is fully transferrable in
accordance with 50 CFR 622.20(b)(1)(i),
which provides the opportunity to
transfer the permit to a family member
or any other eligible person, and
provides greater flexibility in permit
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ownership to the holder. For example,
a fully transferable standard permit
allows the family of a permitted captain
who has died to retain the permit,
unlike a historical captain permit,
which expires upon the captain’s death.
In contrast to the historical captain
permit, being able to transfer the
standard permit to another entity
provides the permit holder an
opportunity to sell or trade the permit.
At their October 2018 meeting, the
Gulf Council determined that only the
individuals who had a valid (nonexpired) or renewable historical captain
permit as of October 25, 2018, would be
eligible to convert that permit to a
standard permit. As of that date, 32
captains held a valid (non-expired) or
renewable historical captain permit; all
but one have both a reef fish and a CMP
historical captain permit, and the
remaining captain has a CMP historical
captain permit only. This framework
action by the Gulf Council is limited to
those 32 individuals, because the
Council’s intent is to provide additional
flexibility to fishermen who have relied
on the historical captain permit for their
livelihood.
Each permit provides a maximum
number of passengers allowed on board
a vessel operating under the permit.
While listed on the permit as the
‘‘Permit Maximum Passenger Capacity,’’
this number is commonly referred to as
the ‘‘passenger capacity.’’ The Gulf
Council decided that a standard for-hire
permit issued as a result of this
framework action would have the same
passenger capacity as the historical
captain permit that it would replace. For
instance, 27 of the 32 for-hire vessels
operated with historical captain permits
as of October 25, 2018, have a passenger
capacity of 6 people. Therefore, when
converted to standard permits, vessels
operating under these permits would
each retain the same 6-person passenger
capacity on for-hire trips in the EEZ.
Some of the letters of eligibility sent
to historical captains in 2003 have not
been redeemed and are still valid. The
Gulf Council determined that previously
issued eligibility letters for historical
captains will be invalid as of the
effective date of any final rule to
implement the framework action in this
proposed rule. If an individual redeems
an outstanding letter of eligibility for a
historical captain permit before any
effective date of the final rule, they
could receive a historical captain
permit, but they would not be eligible
for conversion of that historical captain
permit into standard for-hire permit at
that time.
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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 who holds an eligible
(non-expired) or renewable historical
captain permit as of October 25, 2018,
and wishes to retain a historical captain
permit, the individual would renew the
permit as done in previous years. This
would include filling out all sections of
the permit application specifically
related to the historical captain permit
renewal process and providing the
appropriate supporting documents and
fees to the NMFS Southeast Fisheries
Permits Office.
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 Southeast Fisheries
Permits Office staff 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
Southeast Fisheries Permits Office staff
would then verify the vessel does not
have any other Federal permit(s)
associated with it in another permit
holder’s name.
Once the NMFS Southeast Fisheries
Permits Office verifies that the
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information provided with the
application allows for the conversion,
the historical captain permit would be
converted to a standard reef fish or CMP
charter vessel/headboat permit. 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).
Any application to convert from a
historical captain permit to a standard
permit must be submitted to NMFS
within 2 years of the effective date of a
final rule to implement this framework
amendment. Any application submitted
more than 2 years after the effective date
of a final rule would not be accepted by
NMFS, and the individual would
instead retain their historical captain
permit.
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Additional Proposed Changes to
Codified Text Not in the Framework
Action
In June 2014, NMFS published the
final rule for Amendment 20A to the
CMP FMP in the Federal Register (79
FR 34246, June 16, 2014). Amendment
20A removed the income qualification
requirements for Spanish and king
mackerel in the Gulf and Atlantic and
restricted the sale of these species
caught under the recreational bag limit.
However, a regulation regarding the
transfer requirements of limited access
commercial vessel permits for king
mackerel (50 CFR 622.371(b)), was
inadvertently removed. As a result,
current regulations unnecessarily
restrict the transfer of Gulf commercial
king mackerel permits to another vessel
owned by the same entity. NMFS has
only recently become aware of this
error. Therefore, this proposed rule
would correct this error by adding the
following sentence to regulations at 50
CFR 622.371(b): ‘‘A permit holder may
also transfer the commercial vessel
permit for king mackerel to the owner
of another vessel or to a new vessel
owner when he or she transfers
ownership of the permitted vessel.’’
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 the framework action, the
respective FMPs, the Magnuson-Stevens
Act, and other applicable laws, subject
to further consideration after public
comment.
This proposed rule has been
determined to be not significant for
purposes of Executive Order 12866.
This rule is expected to be an Executive
Order 13771 deregulatory action.
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The Chief Counsel for Regulation of
the Department of Commerce 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 preamble. 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 all for-hire vessels that
had a reef fish or CMP historical captain
permit at the time that the Gulf Council
considered this action in October 2018.
As of October 25, 2018, there were 32
historical captains that had either a
valid (non-expired) or renewable Gulf
reef fish or CMP charter vessel/headboat
historical captain permit. Of these 32
vessels, all but one had both a reef fish
and a CMP historical captain permit; the
remaining vessel had a CMP historical
captain permit only. Although the
application for a charter vessel/headboat
permit collects information on the
primary method of vessel 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. The average
charter vessel operating in the Gulf is
estimated to receive approximately
$86,000 (2017 dollars) in gross revenue
and $25,000 in net income (gross
revenue minus variable and fixed costs)
annually. The average headboat is
estimated to receive approximately
$261,000 (2017 dollars) in gross revenue
and $76,000 in net income annually.
Additionally, some of the letters of
eligibility sent to historical captains in
2003, have not been redeemed by
individuals but are still valid. As of May
17, 2019, there were an estimated 65
historical captains that could still
redeem their letters of eligibility, and
thus, up to 65 additional for-hire
businesses that may be affected by this
proposed rule.
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 $7.5 million for
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3887
all its affiliated operations worldwide.
All of the for-hire fishing businesses
that would be 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 recordkeeping requirements. It would,
however, require historical captain
permit holders to comply with the
permit regulations for standard charter
vessel/headboat permits if their
historical captain permits are converted
to standard permits. The applicable
permit regulations state that the
standard permit must be issued to a
vessel with a valid USCG COD 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 allow 32
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 proposed
rule would have positive economic
effects in terms of increased asset value
and business succession planning.
Transfer values for a single standard
permit ranged from $0.01 to $130,000
during 2007 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
permit. Additionally, once historical
captain permits are replaced with
standard permits, the respective
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.
Historical captains that already own or
lease a suitable vessel would be able to
attach their new standard permit to that
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vessel and continue operating as
normal, but with the added benefits
described earlier. Some historical
captains, however, may not currently
own or lease a vessel. In order 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. To obtain an initial
USCG COD costs $133 and an USCG
COD renewal costs $26 (46 CFR 67.550).
If a USCG certificate of inspection is
required, the annual inspection fee is
$300 for vessels less than 65 feet (19.812
meters) and $600 for vessels 65 feet
(19.812 meters) and greater (46 CFR
2.10–101(a)). State boat registration and
inspection fees in Gulf states are
estimated to range from approximately
$10 up to $400, depending on the length
of the vessel and state of vessel
registration. As a result of 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
$388,627 (2017 dollars); the average
purchase price for a charter vessel
operating in the Gulf is estimated to be
$104,248. If historical captains intend to
only sell their new standard permits,
they could use 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 potential 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. In
order to extract value from the standard
permit, historical captains would need
to either sell their permit or attach it to
a vessel that they own or lease. This
vessel must also be capable and
sufficient for servicing paying
customers. Again, replacement of
historical captain permits is voluntary
and it is expected that historical
captains would only replace their
historical captain permits with standard
permits if the benefits of doing so
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outweigh the costs. Finally, this
proposed rule would render any
remaining letters of eligibility for
historical captain permits invalid upon
implementation of these regulations.
Individuals that submit outstanding
letters of eligibility prior to the
implementation date of this rule would
be issued a historical captain permit,
but it would remain a historical captain
permit only and would not be eligible
for conversion to a standard permit. It
is assumed that historical captains who
have not yet submitted their letters of
eligibility do not intend to operate a forhire fishing vessel with a historical
captain permit and therefore would not
be affected by this proposed rule. If, for
whatever reason, there are some
historical captains that were waiting to
submit their letters, it is assumed they
would apply for a historical captain
permit prior to the implementation of
this rule.
An item contained in this proposed
rule that is not part of the proposed
framework action is the addition of the
following sentence to 50
CFR 622.371(b): ‘‘A permit holder may
also transfer the commercial vessel
permit for king mackerel to the owner
of another vessel or to a new vessel
owner when he or she transfers
ownership of the permitted vessel.’’
This provision was inadvertently
removed in the final rule implementing
Amendment 20A to the CMP FMP (79
FR 34246, June 16, 2014). However,
NMFS has continued to allow the
transfer of a commercial king mackerel
permit to the owner of another vessel or
to a new vessel owner since
Amendment 20A was implemented.
Therefore, this is an administrative
change only and is not expected to have
any direct economic effects on any
small entities. As such, this component
of the proposed rule is outside the scope
of the RFA.
The information provided above
supports a determination that this
proposed rule would not have a
significant adverse economic impact on
a substantial number of small entities.
Because this rule, if implemented, is not
expected to have a significant adverse
economic impact on any small entities,
an initial regulatory flexibility analysis
is not required and none has been
prepared.
Because no new reporting or recordkeeping requirements are introduced by
this proposed rule, the Paperwork
Reduction Act does not apply to this
proposed rule.
List of Subjects in 50 CFR Part 622
Fish, Fisheries, Gulf, Historical
Captain, Permits, Transfer.
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Dated: January 15, 2020.
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
1. The authority citation for part 622
continues to read as follows:
■
Authority: 16 U.S.C. 1801 et seq.
2. In § 622.20, revise paragraph (b)(1)
introductory text and add paragraph
(b)(1)(v) to read as follows:
■
§ 622.20
Permits and endorsements.
*
*
*
*
*
(b) * * *
(1) Limited access system for charter
vessel/headboat permits for Gulf reef
fish. No applications for additional
charter vessel/headboat permits for Gulf
reef fish will be accepted. Existing
permits may be renewed, are subject to
the restrictions on transfer in paragraph
(b)(1)(i) of this section, and are subject
to the renewal requirements in
paragraph (b)(1)(ii) of this section. An
eligible charter vessel/headboat permit
with a historical captain endorsement
may be converted to a charter vessel/
headboat permit without a historical
captain endorsement, per procedures at
paragraph (b)(1)(v) of this section.
*
*
*
*
*
(v) Procedure for conversion of permit
with historical captain endorsement. A
charter vessel headboat permit with a
historical captain endorsement valid or
renewable on October 25, 2018, 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 an
permit application to the RA by [DATE
25 MONTHS AFTER THE EFFECTIVE
DATE OF THE FINAL RULE]. If no
application to convert an eligible charter
vessel/headboat permit with a historical
captain endorsement is submitted by
[DATE 25 MONTHS AFTER THE
EFFECTIVE DATE OF THE FINAL
RULE], the permit holder will retain a
charter vessel/headboat permit with the
E:\FR\FM\23JAP1.SGM
23JAP1
Federal Register / Vol. 85, No. 15 / Thursday, January 23, 2020 / Proposed Rules
historical captain endorsement that is
subject to the restrictions described in
paragraph (b)(1)(i)(B) of this section.
*
*
*
*
*
■ 3. In § 622.371, revise paragraph (b) to
read as follows:
§ 622.371 Limited access system for
commercial vessel permits for king
mackerel.
*
*
*
*
*
(b) An owner of a permitted vessel
may transfer the commercial vessel
permit for king mackerel issued under
this limited access system to another
vessel owned by the same entity. A
permit holder may also transfer the
commercial vessel permit for king
mackerel to the owner of another vessel
or to a new vessel owner when he or she
transfers ownership of the permitted
vessel.
*
*
*
*
*
■ 4. In § 622.373, revise paragraph (a)
and add paragraph (f) to read as follows:
jbell on DSKJLSW7X2PROD with PROPOSALS
(a) No applications for additional
charter vessel/headboat permits for Gulf
coastal migratory pelagic fish will be
accepted. Existing permits may be
renewed, are subject to the restrictions
on transfer in paragraph (b) of this
section, and are subject to the renewal
requirements in paragraph (c) of this
section. An eligible charter vessel/
headboat permit with a historical
captain endorsement may be converted
to a charter vessel/headboat permit
without a historical captain
endorsement, per procedures at
paragraph (f) of this section.
*
*
*
*
*
(f) Procedure for conversion of permit
with historical captain endorsement. A
charter vessel headboat permit with a
historical captain endorsement valid or
renewable on October 25, 2018, may be
converted to a charter vessel/headboat
permit for Gulf coastal migratory pelagic
fish without a historical captain
endorsement as described in
§ 622.373(b)(1). 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 an
permit application to the RA by [DATE
25 MONTHS AFTER THE EFFECTIVE
DATE OF THE FINAL RULE]. If no
application to convert an eligible charter
16:48 Jan 22, 2020
Jkt 250001
[FR Doc. 2020–00935 Filed 1–22–20; 8:45 am]
BILLING CODE 3510–22–P
DEPARTMENT OF COMMERCE
National Oceanic and Atmospheric
Administration
50 CFR Part 665
RIN 0648–BJ27
Pacific Island Fisheries; Sea Turtle
Limits in the Hawaii Shallow-Set
Pelagic Longline Fishery
National Marine Fisheries
Service (NMFS), National Oceanic and
Atmospheric Administration (NOAA),
Commerce.
ACTION: Notice of availability of a fishery
ecosystem plan amendment; request for
comments.
AGENCY:
§ 622.373 Limited access system for
charter vessel/headboat permits for Gulf
coastal migratory pelagic fish.
VerDate Sep<11>2014
vessel/headboat permit with a historical
captain endorsement is submitted by
[DATE 25 MONTHS AFTER THE
EFFECTIVE DATE OF THE FINAL
RULE], the permit holder will retain a
charter vessel/headboat permit with the
historical captain endorsement that is
subject to the restrictions described in
§ 622.373(b)(2).
NMFS announces that the
Western Pacific Fishery Management
Council (Council) proposes to amend
the Fishery Ecosystem Plan for the
Pelagic Fisheries of the Western Pacific
(FEP). Amendment 10 would facilitate
management of Hawaii shallow-set
longline fishery interactions with sea
turtles to ensure a continued supply of
fresh domestic swordfish to U.S.
markets, consistent with sea turtle
conservation. The proposed action
would also ensure that the fishery
operates in compliance with the
Reasonable and Prudent Measures
(RPM) and associated Terms and
Conditions (T&C) of a recent NMFS
biological opinion (BiOp).
DATES: NMFS must receive comments
on the proposed amendments by March
23, 2020.
ADDRESSES: You may submit comments
on this document, identified by NOAA–
NMFS–2019–0098, by either of the
following methods:
• Electronic Submission: Submit all
electronic public comments via the
Federal e-Rulemaking Portal. Go to
https://www.regulations.gov/
#!docketDetail;D=NOAA-NMFS-20190098, click the ‘‘Comment Now!’’ icon,
complete the required fields, and enter
or attach your comments.
• Mail: Send written comments to
Michael D. Tosatto, Regional
SUMMARY:
PO 00000
Frm 00033
Fmt 4702
Sfmt 4702
3889
Administrator, NMFS Pacific Islands
Region (PIR), 1845 Wasp Blvd. Bldg.
176, Honolulu, HI 96818.
Instructions: NMFS may not consider
comments sent by any other method, to
any other address or individual, or
received after the end of the comment
period. All comments received are a
part of the public record, and NMFS
will generally post them for public
viewing on www.regulations.gov
without change. All personal identifying
information (e.g., name, address, etc.),
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).
The Council prepared Amendment
10, including an environmental
assessment (EA) and regulatory impact
review (RIR). Amendment 10 and
supporting documents are available at
https://www.regulations.gov, or from the
Council, 1164 Bishop St., Suite 1400,
Honolulu, HI 96813, tel 808–522–8220,
fax 808–522–8226, www.wpcouncil.org.
FOR FURTHER INFORMATION CONTACT:
Joshua Lee, Sustainable Fisheries,
NMFS PIR, 808–725–5177.
SUPPLEMENTARY INFORMATION: The
Hawaii shallow-set pelagic longline
fishery targets swordfish (Xiphias
gladius) in the U.S. Exclusive Economic
Zone and on the high seas. The Council
and NMFS manage the fishery under the
FEP and its implementing regulations,
as authorized by the Magnuson-Stevens
Fishery Conservation and Management
Act. The Council proposes to amend the
FEP to revise the annual fleet
interaction limit (‘‘hard cap’’) for
leatherback turtles from 26 to 16. If the
fleet reaches the limit, NMFS would
close the fishery for the remainder of the
calendar year. The Council proposes to
remove the hard cap for North Pacific
loggerhead turtles (currently 17).
Amendment 10 would also establish
trip interaction limits of two leatherback
turtles and five North Pacific loggerhead
turtles. If a vessel reaches either limit on
a shallow-set trip, NMFS would require
the vessel to stop fishing and return to
port. The first time a vessel reaches the
limit for either species, it would be
prohibited from shallow-set fishing for
five days. If a vessel reaches an
interaction limit a second time for either
species in a calendar year, NMFS would
prohibit that vessel from shallow-set
fishing for the remainder of that
calendar year. In the following year, that
vessel would have an annual hard cap
limit of two leatherback or five
loggerhead turtles.
E:\FR\FM\23JAP1.SGM
23JAP1
]]>Agencies
[Federal Register Volume 85, Number 15 (Thursday, January 23, 2020)]
[Proposed Rules]
[Pages 3885-3889]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-00935]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
National Oceanic and Atmospheric Administration
50 CFR Part 622
[Docket No. 200115-0018]
RIN 0648-BI12
Fisheries of the Caribbean, Gulf of Mexico, and South Atlantic;
Reef Fish Resources of the Gulf of Mexico and Coastal Migratory Pelagic
Resources of the Gulf of Mexico and Atlantic Region; Historical Captain
Permits Conversions
AGENCY: National Marine Fisheries Service (NMFS), National Oceanic and
Atmospheric Administration (NOAA), Commerce.
ACTION: Proposed rule; request for comments.
-----------------------------------------------------------------------
SUMMARY: NMFS proposes to implement management measures as described in
an abbreviated framework action to the Fishery Management Plans (FMPs)
for 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), as prepared by the Gulf of Mexico Fishery
Management Council (Gulf Council). This proposed rule would modify the
Federal regulations for historical captain permits in the reef fish and
CMP fisheries in the Gulf of Mexico (Gulf) Exclusive Economic Zone
(EEZ), to provide an opportunity for eligible historical captain permit
holders to replace their permits with standard Federal charter vessel/
headboat permits. It is expected that the rule would reduce the
regulatory and economic burden on historical captain permit holders. In
addition, NMFS proposes a correction to the regulations regarding
commercial king mackerel permit requirements from an inadvertent error
in the final rule for Amendment 20A to the FMP for the CMP Resources in
the Gulf of Mexico and Atlantic Region.
DATES: Written comments must be received on or before February 22,
2020.
ADDRESSES: You may submit comments on the proposed rule identified by
``NOAA-NMFS-2019-0081'' by either of the following methods:
Electronic Submission: Submit all electronic public
comments via the Federal e-Rulemaking Portal. Go to
www.regulations.gov/#!docketDetail;D=NOAA-NMFS-2019-0081, click the
``Comment Now!'' icon, complete the required fields, and enter or
attach your comments.
Mail: Submit written comments to Rich Malinowski,
Southeast Regional Office, NMFS, 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
www.regulations.gov without change. All personal identifying
information (e.g., name, 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 Framework Amendment may be obtained from the
Southeast Regional Office website at https://www.fisheries.noaa.gov/action/framework-action-replacement-historical-captain-permits-standard-federal-charter-headboat. The abbreviated framework includes a
Regulatory Flexibility Act (RFA) analysis and a regulatory impact
review.
FOR FURTHER INFORMATION CONTACT: Rich Malinowski, Southeast Regional
Office, NMFS, telephone: 727-824-5305; email: [email protected].
SUPPLEMENTARY INFORMATION: NMFS and the Gulf Council manage reef fish
resources in the Gulf EEZ under the Reef Fish FMP. The CMP fishery in
the Gulf of Mexico and Atlantic regions is managed jointly by the Gulf
Council and South Atlantic Fishery Management Council (Councils).
The Gulf Council prepared the Reef Fish FMP and the Councils
jointly prepared the CMP FMP. 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 industry about the viability of the
industry and the sustainability of 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, which included 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,
these captains were eligible to apply for a permit with a historical
captain endorsement, referred
[[Page 3886]]
to hereafter as a historical captain permit. Eligibility requirements
for the historical captain permit included demonstrating a captain was
licensed and operated a federally permitted for-hire vessel in the Gulf
reef fish or CMP fisheries before March 29, 2001, and that at least 25
percent of their earned income came from for-hire fishing in at least
one of the following years: 1997, 1998, 1999, or 2000.
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 a total of 141
historical captain permits for reef fish and CMP charter/headboat
vessels were issued by the NMFS Southeast Fisheries Permits Office.
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, providing permit procedures for retention
and renewal were followed.
In January 2018, the Gulf Council began development of an action to
allow historical captain permit holders to convert existing reef fish
and CMP historical captain permits to standard charter vessel/headboat
permits, after hearing public testimony about the economic hardships
caused by the restrictions imposed on historical captain permits.
Converting a historical captain permit would allow the permit holder to
lease the vessel to another captain or have another captain operate the
vessel. Additionally, unlike a historical captain permit, a standard
permit is fully transferrable in accordance with 50 CFR
622.20(b)(1)(i), which provides the opportunity to transfer the permit
to a family member or any other eligible person, and provides greater
flexibility in permit ownership to the holder. For example, a fully
transferable standard permit allows the family of a permitted captain
who has died to retain the permit, unlike a historical captain permit,
which expires upon the captain's death. In contrast to the historical
captain permit, being able to transfer the standard permit to another
entity provides the permit holder an opportunity to sell or trade the
permit.
At their October 2018 meeting, the Gulf Council determined that
only the individuals who had a valid (non-expired) or renewable
historical captain permit as of October 25, 2018, would be eligible to
convert that permit to a standard permit. As of that date, 32 captains
held a valid (non-expired) or renewable historical captain permit; all
but one have both a reef fish and a CMP historical captain permit, and
the remaining captain has a CMP historical captain permit only. This
framework action by the Gulf Council is limited to those 32
individuals, because the Council's intent is to provide additional
flexibility to fishermen who have relied on the historical captain
permit for their livelihood.
Each permit provides a maximum number of passengers allowed on
board a vessel operating under the permit. While listed on the permit
as the ``Permit Maximum Passenger Capacity,'' this number is commonly
referred to as the ``passenger capacity.'' The Gulf Council decided
that a standard for-hire permit issued as a result of this framework
action would have the same passenger capacity as the historical captain
permit that it would replace. For instance, 27 of the 32 for-hire
vessels operated with historical captain permits as of October 25,
2018, have a passenger capacity of 6 people. Therefore, when converted
to standard permits, vessels operating under these permits would each
retain the same 6-person passenger capacity on for-hire trips in the
EEZ.
Some of the letters of eligibility sent to historical captains in
2003 have not been redeemed and are still valid. The Gulf Council
determined that previously issued eligibility letters for historical
captains will be invalid as of the effective date of any final rule to
implement the framework action in this proposed rule. If an individual
redeems an outstanding letter of eligibility for a historical captain
permit before any effective date of the final rule, they could receive
a historical captain permit, but they would not be eligible for
conversion of that historical captain permit into standard for-hire
permit at that time.
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 who holds an eligible (non-expired) or renewable
historical captain permit as of October 25, 2018, and wishes to retain
a historical captain permit, the individual would renew the permit as
done in previous years. This would include filling out all sections of
the permit application specifically related to the historical captain
permit renewal process and providing the appropriate supporting
documents and fees to the NMFS Southeast Fisheries Permits Office.
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 Southeast Fisheries Permits Office staff 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 Southeast
Fisheries Permits Office staff would then verify the vessel does not
have any other Federal permit(s) associated with it in another permit
holder's name.
Once the NMFS Southeast Fisheries Permits Office verifies that the
[[Page 3887]]
information provided with the application allows for the conversion,
the historical captain permit would be converted to a standard reef
fish or CMP charter vessel/headboat permit. 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).
Any application to convert from a historical captain permit to a
standard permit must be submitted to NMFS within 2 years of the
effective date of a final rule to implement this framework amendment.
Any application submitted more than 2 years after the effective date of
a final rule would not be accepted by NMFS, and the individual would
instead retain their historical captain permit.
Additional Proposed Changes to Codified Text Not in the Framework
Action
In June 2014, NMFS published the final rule for Amendment 20A to
the CMP FMP in the Federal Register (79 FR 34246, June 16, 2014).
Amendment 20A removed the income qualification requirements for Spanish
and king mackerel in the Gulf and Atlantic and restricted the sale of
these species caught under the recreational bag limit. However, a
regulation regarding the transfer requirements of limited access
commercial vessel permits for king mackerel (50 CFR 622.371(b)), was
inadvertently removed. As a result, current regulations unnecessarily
restrict the transfer of Gulf commercial king mackerel permits to
another vessel owned by the same entity. NMFS has only recently become
aware of this error. Therefore, this proposed rule would correct this
error by adding the following sentence to regulations at 50 CFR
622.371(b): ``A permit holder may also transfer the commercial vessel
permit for king mackerel to the owner of another vessel or to a new
vessel owner when he or she transfers ownership of the permitted
vessel.''
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 the framework action, the respective FMPs, the
Magnuson-Stevens Act, and other applicable laws, subject to further
consideration after public comment.
This proposed rule has been determined to be not significant for
purposes of Executive Order 12866. This rule is expected to be an
Executive Order 13771 deregulatory action.
The Chief Counsel for Regulation of the Department of Commerce
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 preamble.
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 all for-hire
vessels that had a reef fish or CMP historical captain permit at the
time that the Gulf Council considered this action in October 2018. As
of October 25, 2018, there were 32 historical captains that had either
a valid (non-expired) or renewable Gulf reef fish or CMP charter
vessel/headboat historical captain permit. Of these 32 vessels, all but
one had both a reef fish and a CMP historical captain permit; the
remaining vessel had a CMP historical captain permit only. Although the
application for a charter vessel/headboat permit collects information
on the primary method of vessel 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. The average charter vessel
operating in the Gulf is estimated to receive approximately $86,000
(2017 dollars) in gross revenue and $25,000 in net income (gross
revenue minus variable and fixed costs) annually. The average headboat
is estimated to receive approximately $261,000 (2017 dollars) in gross
revenue and $76,000 in net income annually.
Additionally, some of the letters of eligibility sent to historical
captains in 2003, have not been redeemed by individuals but are still
valid. As of May 17, 2019, there were an estimated 65 historical
captains that could still redeem their letters of eligibility, and
thus, up to 65 additional for-hire businesses that may be affected by
this proposed rule.
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 $7.5
million for all its affiliated operations worldwide. All of the for-
hire fishing businesses that would be 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 permit regulations for standard
charter vessel/headboat permits if their historical captain permits are
converted to standard permits. The applicable permit regulations state
that the standard permit must be issued to a vessel with a valid USCG
COD 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 allow 32 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 proposed rule
would have positive economic effects in terms of increased asset value
and business succession planning. Transfer values for a single standard
permit ranged from $0.01 to $130,000 during 2007 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 permit.
Additionally, once historical captain permits are replaced with
standard permits, the respective 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. Historical captains that already own or lease a
suitable vessel would be able to attach their new standard permit to
that
[[Page 3888]]
vessel and continue operating as normal, but with the added benefits
described earlier. Some historical captains, however, may not currently
own or lease a vessel. In order 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. To obtain an initial USCG COD costs $133 and an USCG
COD renewal costs $26 (46 CFR 67.550). If a USCG certificate of
inspection is required, the annual inspection fee is $300 for vessels
less than 65 feet (19.812 meters) and $600 for vessels 65 feet (19.812
meters) and greater (46 CFR 2.10-101(a)). State boat registration and
inspection fees in Gulf states are estimated to range from
approximately $10 up to $400, depending on the length of the vessel and
state of vessel registration. As a result of 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 $388,627
(2017 dollars); the average purchase price for a charter vessel
operating in the Gulf is estimated to be $104,248. If historical
captains intend to only sell their new standard permits, they could use
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 potential 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. In order to extract value from the standard permit,
historical captains would need to either sell their permit or attach it
to a vessel that they own or lease. This vessel must also be capable
and sufficient for servicing paying customers. Again, replacement of
historical captain permits is voluntary and it is expected that
historical captains would only replace their historical captain permits
with standard permits if the benefits of doing so outweigh the costs.
Finally, this proposed rule would render any remaining letters of
eligibility for historical captain permits invalid upon implementation
of these regulations. Individuals that submit outstanding letters of
eligibility prior to the implementation date of this rule would be
issued a historical captain permit, but it would remain a historical
captain permit only and would not be eligible for conversion to a
standard permit. It is assumed that historical captains who have not
yet submitted their letters of eligibility do not intend to operate a
for-hire fishing vessel with a historical captain permit and therefore
would not be affected by this proposed rule. If, for whatever reason,
there are some historical captains that were waiting to submit their
letters, it is assumed they would apply for a historical captain permit
prior to the implementation of this rule.
An item contained in this proposed rule that is not part of the
proposed framework action is the addition of the following sentence to
50 CFR[thinsp]622.371(b): ``A permit holder may also transfer the
commercial vessel permit for king mackerel to the owner of another
vessel or to a new vessel owner when he or she transfers ownership of
the permitted vessel.'' This provision was inadvertently removed in the
final rule implementing Amendment 20A to the CMP FMP (79 FR 34246, June
16, 2014). However, NMFS has continued to allow the transfer of a
commercial king mackerel permit to the owner of another vessel or to a
new vessel owner since Amendment 20A was implemented. Therefore, this
is an administrative change only and is not expected to have any direct
economic effects on any small entities. As such, this component of the
proposed rule is outside the scope of the RFA.
The information provided above supports a determination that this
proposed rule would not have a significant adverse economic impact on a
substantial number of small entities. Because this rule, if
implemented, is not expected to have a significant adverse economic
impact on any small entities, an initial regulatory flexibility
analysis is not required and none has been prepared.
Because no new reporting or record-keeping requirements are
introduced by this proposed rule, the Paperwork Reduction Act does not
apply to this proposed rule.
List of Subjects in 50 CFR Part 622
Fish, Fisheries, Gulf, Historical Captain, Permits, Transfer.
Dated: January 15, 2020.
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) introductory text and add
paragraph (b)(1)(v) to read as follows:
Sec. 622.20 Permits and endorsements.
* * * * *
(b) * * *
(1) Limited access system for charter vessel/headboat permits for
Gulf reef fish. No applications for additional charter vessel/headboat
permits for Gulf reef fish will be accepted. Existing permits may be
renewed, are subject to the restrictions on transfer in paragraph
(b)(1)(i) of this section, and are subject to the renewal requirements
in paragraph (b)(1)(ii) of this section. An eligible charter vessel/
headboat permit with a historical captain endorsement may be converted
to a charter vessel/headboat permit without a historical captain
endorsement, per procedures at paragraph (b)(1)(v) of this section.
* * * * *
(v) Procedure for conversion of permit with historical captain
endorsement. A charter vessel headboat permit with a historical captain
endorsement valid or renewable on October 25, 2018, 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 an permit
application to the RA by [DATE 25 MONTHS AFTER THE EFFECTIVE DATE OF
THE FINAL RULE]. If no application to convert an eligible charter
vessel/headboat permit with a historical captain endorsement is
submitted by [DATE 25 MONTHS AFTER THE EFFECTIVE DATE OF THE FINAL
RULE], the permit holder will retain a charter vessel/headboat permit
with the
[[Page 3889]]
historical captain endorsement that is subject to the restrictions
described in paragraph (b)(1)(i)(B) of this section.
* * * * *
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3. In Sec. 622.371, revise paragraph (b) to read as follows:
Sec. 622.371 Limited access system for commercial vessel permits for
king mackerel.
* * * * *
(b) An owner of a permitted vessel may transfer the commercial
vessel permit for king mackerel issued under this limited access system
to another vessel owned by the same entity. A permit holder may also
transfer the commercial vessel permit for king mackerel to the owner of
another vessel or to a new vessel owner when he or she transfers
ownership of the permitted vessel.
* * * * *
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4. In Sec. 622.373, revise paragraph (a) and add paragraph (f) to read
as follows:
Sec. 622.373 Limited access system for charter vessel/headboat
permits for Gulf coastal migratory pelagic fish.
(a) No applications for additional charter vessel/headboat permits
for Gulf coastal migratory pelagic fish will be accepted. Existing
permits may be renewed, are subject to the restrictions on transfer in
paragraph (b) of this section, and are subject to the renewal
requirements in paragraph (c) of this section. An eligible charter
vessel/headboat permit with a historical captain endorsement may be
converted to a charter vessel/headboat permit without a historical
captain endorsement, per procedures at paragraph (f) of this section.
* * * * *
(f) Procedure for conversion of permit with historical captain
endorsement. A charter vessel headboat permit with a historical captain
endorsement valid or renewable on October 25, 2018, may be converted to
a charter vessel/headboat permit for Gulf coastal migratory pelagic
fish without a historical captain endorsement as described in Sec.
622.373(b)(1). 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 an permit
application to the RA by [DATE 25 MONTHS AFTER THE EFFECTIVE DATE OF
THE FINAL RULE]. If no application to convert an eligible charter
vessel/headboat permit with a historical captain endorsement is
submitted by [DATE 25 MONTHS AFTER THE EFFECTIVE DATE OF THE FINAL
RULE], the permit holder will retain a charter vessel/headboat permit
with the historical captain endorsement that is subject to the
restrictions described in Sec. 622.373(b)(2).
[FR Doc. 2020-00935 Filed 1-22-20; 8:45 am]
BILLING CODE 3510-22-P
