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, 5295-5298 [2023-01408]
Download as PDF
Federal Register / Vol. 88, No. 18 / Friday, January 27, 2023 / Proposed Rules
document in the Search Results column,
and click on it. Then click on the
Comment option. If your material
cannot be submitted using https://
www.regulations.gov, contact the person
in the FOR FURTHER INFORMATION
CONTACT section of this document for
alternate instructions.
To view documents mentioned in this
proposed rule as being available in the
docket, find the docket as described in
the previous paragraph, and then select
‘‘Supporting & Related Material’’ in the
Document Type column. Public
comments will also be placed in our
online docket and can be viewed by
following instructions on the https://
www.regulations.gov Frequently Asked
Questions web page. We review all
comments received, but we will only
post comments that address the topic of
the proposed rule. We may choose not
to post off-topic, inappropriate, or
duplicate comments that we receive.
Additionally, if you go to the online
docket and sign up for email alerts, you
will be notified when comments are
posted or a final rule is published of any
posting or updates to the docket.
We accept anonymous comments.
Comments we post to https://
www.regulations.gov will include any
personal information you have
provided. For more about privacy and
submissions in response to this
document, see DHS’s eRulemaking
System of Records notice (85 FR 14226,
March 11, 2020).
List of Subjects in 33 CFR Part 117
Bridges.
For the reasons discussed in the
preamble, the Coast Guard proposes to
amend 33 CFR part 117 as follows:
PART 117—DRAWBRIDGE
OPERATION REGULATIONS
1. The authority citation for part 117
continues to read as follows:
■
Authority: 33 U.S.C. 499; 33 CFR 1.05–1;
DHS Delegation No. 0170.1.
2. Revise § 117.207 (b) to read as
follows:
■
§ 117.207
Housatonic.
khammond on DSKJM1Z7X2PROD with PROPOSALS
*
*
*
*
*
(b) The draw of the Metro-North
(Devon) bridge, mile 3.9 at Stratford,
shall operate as follows:
(1) The draw shall open on signal
between 4:30 a.m. and 9 p.m. after at
least a two-hour advance notice is given;
except that, from 5:45 through 9:45 a.m.
and from 4 through 8 p.m., Monday
through Friday excluding holidays, the
draw need not open for the passage of
vessel traffic unless an emergency
exists.
VerDate Sep<11>2014
16:09 Jan 26, 2023
Jkt 259001
(2) From 9 p.m. through 4:30 a.m. the
draw shall open on signal after at least
a four-hour advance notice is given.
(3) A delay in opening the draw not
to exceed 10 minutes may occur when
a train scheduled to cross the bridge
without stopping has entered the
drawbridge lock.
(4) Requests for bridge openings may
be made by calling the bridge via marine
radio VHF FM Channel 13 or the
telephone number posted at the bridge.
Dated: January 8, 2023.
J.W. Mauger,
Rear Admiral, U.S. Coast Guard, Commander,
First Coast Guard District.
[FR Doc. 2023–01708 Filed 1–26–23; 8:45 am]
BILLING CODE 9110–04–P
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
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 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:
• Electronic Submission: Submit all
electronic public comments via the
SUMMARY:
PO 00000
Frm 00021
Fmt 4702
Sfmt 4702
5295
Federal e-Rulemaking Portal. Go to
www.regulations.gov and enter ‘‘NOAA–
NMFS–2022–0121’’ in the Search box.
Click the ‘‘Comment’’ icon, complete
the required fields, and enter or attach
your comments.
• 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 www.regulations.gov
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
https://www.fisheries.noaa.gov/action/
framework-action-historical-captainpermits-conversion-standard-federalcharter-headboat. 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:
rich.malinowski@noaa.gov.
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 (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 fishing
industry about the viability of the forhire component and the sustainability of
E:\FR\FM\27JAP1.SGM
27JAP1
khammond on DSKJM1Z7X2PROD with PROPOSALS
5296
Federal Register / Vol. 88, No. 18 / Friday, January 27, 2023 / Proposed Rules
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 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,
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 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, 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
VerDate Sep<11>2014
16:09 Jan 26, 2023
Jkt 259001
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.
PO 00000
Frm 00022
Fmt 4702
Sfmt 4702
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
E:\FR\FM\27JAP1.SGM
27JAP1
khammond on DSKJM1Z7X2PROD with PROPOSALS
Federal Register / Vol. 88, No. 18 / Friday, January 27, 2023 / Proposed Rules
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 (nonexpired) 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
VerDate Sep<11>2014
16:09 Jan 26, 2023
Jkt 259001
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
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
PO 00000
Frm 00023
Fmt 4702
Sfmt 4702
5297
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.
E:\FR\FM\27JAP1.SGM
27JAP1
5298
Federal Register / Vol. 88, No. 18 / Friday, January 27, 2023 / Proposed Rules
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
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)(v) to read as follows:
■
§ 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
khammond on DSKJM1Z7X2PROD with PROPOSALS
*
VerDate Sep<11>2014
16:09 Jan 26, 2023
Jkt 259001
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.
*
*
*
*
*
■ 3. In § 622.373, revise paragraph (f) to
read as follows:
(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.
§ 622.373 Limited access system for
charter vessel/headboat permits for Gulf
coastal migratory pelagic fish.
[FR Doc. 2023–01408 Filed 1–26–23; 8:45 am]
*
BILLING CODE 3510–22–P
PO 00000
*
*
Frm 00024
*
Fmt 4702
*
Sfmt 9990
E:\FR\FM\27JAP1.SGM
27JAP1
Agencies
[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 [www.gpo.gov]
[FR Doc No: 2023-01408]
=======================================================================
-----------------------------------------------------------------------
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.
-----------------------------------------------------------------------
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:
Electronic Submission: Submit all electronic public
comments via the Federal e-Rulemaking Portal. Go to www.regulations.gov
and enter ``NOAA-NMFS-2022-0121'' in the Search box. Click the
``Comment'' icon, complete the required fields, and enter or attach
your comments.
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
www.regulations.gov 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 https://www.fisheries.noaa.gov/action/framework-action-historical-captain-permits-conversion-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, NMFS Southeast
Regional Office, telephone: 727-824-5305; email:
[email protected].
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