Final Amendment to the FMPs for: Reef Fish (Amendment 25) and Coastal Migratory Pelagics (Amendment 17) for Extending the Charter Vessel/Headboat Permit Moratorium (Including SEIS/RIR/IRFA) Gulf of Mexico Fishery Management Council National Oceanographic and Atmospheric Administration The Commons at Rivergate National Marine Fisheries Service 3018 North U.S. Highway 301, Suite 1000 Southeast Regional Office Tampa, Florida 33619-2272 263 13th Avenue South 813-228-2815 St. Petersburg, Florida 33701 888-833-1844 (toll-free) 727-824-5305 813-225-7015 (FAX) 727-824-5308 (FAX) [email protected] http//sero.nmfs.noaa.gov http://www.gulfcouncil.org July 2005 This is a publication of the Gulf of Mexico Fishery Management Council pursuant to National Oceanic and Atmospheric Administration Award No. NA04NMF4410020. This page intentionally left blank ii TABLE OF CONTENTS Acronyms/Abbreviations Used in this Document.....................................................................................v Draft Supplemental Environmental Impact Statement Cover Sheet....................................................vi Table of Contents for DSEIS....................................................................................................................vii Executive Summary.................................................................................................................................viii Fishery Impact Statement/Social Impact Analysis...................................................................................x 1 INTRODUCTION....................................................................................................................................1 1.1 Description of Current Permit System...............................................................................................1 1.2 History of Management....................................................................................................................2 2 PURPOSE AND NEED FOR ACTION.................................................................................................4 3 MANAGEMENT ALTERNATIVES.....................................................................................................6 4 MAGNUSON-STEVENS ACT PROVISIONS FOR LIMITED ACCESS SYSTEMS....................9 5 REGULATORY IMPACT REVIEW..................................................................................................12 5.1 Introduction.....................................................................................................................................12 5.2 Problems and issues in the fishery..................................................................................................12 5.3 Objectives........................................................................................................................................12 5.4 Description of the fishery................................................................................................................12 5.4.1. Harvest characteristics..........................................................................................................12 5.4.2. Number of vessels and vessel characteristics.......................................................................17 5.4.3 Socioeconomic characteristics of recreational anglers..........................................................24 5.4.4. Socioeconomic characteristics of the for-hire fishery...........................................................30 5.4.5 Fishing communities..............................................................................................................37 5.5 Impacts of management alternatives...............................................................................................39 5.6 Private and public costs...................................................................................................................46 5.7 Determination of a significant regulatory action............................................................................47 6 INITIAL REGULATORY FLEXIBILITY ANALYSIS....................................................................49 6.1 Introduction.....................................................................................................................................49 6.2 Description of the reasons why action by the agency is being considered.....................................49 6.3 Statement of the objectives of, and legal basis for, the proposed rule............................................49 6.4 Description and estimate of the number of small entities to which the proposed rule will apply..49 6.5 Description of the projected reporting, record-keeping and other compliance requirements of the proposed rule, including an estimate of the classes of small entities which will be subject to the requirement and the type of professional skills necessary for the preparation of the report or records..............................................................................................................................................51 6.6 Identification of all relevant federal rules, which may duplicate, overlap or conflict with the proposed rule....................................................................................................................................51 6.7 Significance of economic impacts on small entities.......................................................................51 6.8 Description of significant alternatives to the proposed rule and discussion of how the alternatives attempt to minimize economic impacts on small entities................................................................52 7 AFFECTED ENVIRONMENT............................................................................................................53 7.1 Physical Environment.....................................................................................................................53 7.1.1 Geological Features................................................................................................................53 7.1.2 Oceanographic Features.........................................................................................................54 7.1.3 Habitat Use by Managed Species...........................................................................................54 7.1.4 Environmental Sites of Importance to Reef Fish or CMP Species........................................55 7.2 Biological Environment..................................................................................................................56 iii 7.2.1 Reef Fish Life History and Stock Status................................................................................56 7.2.2 Coastal Migratory Pelagic Species Life History and Stock Status........................................58 7.2.3 Protected Species Under the ESA and MMPA......................................................................59 7.3 Social and Economic Environment.................................................................................................60 7.3.1 Economic Environment..........................................................................................................60 7.3.2 Social Environment................................................................................................................60 7.4 Administrative Environment...........................................................................................................61 7.4.1 Federal Fishery Management.................................................................................................61 7.4.2 State Fishery Management.....................................................................................................61 8 ENVIRONMENTAL CONSEQUENCES...........................................................................................63 8.1 Direct and Indirect Effects on the Physical Environment...............................................................63 8.2 Direct and Indirect Effects on the Biological Environment............................................................63 8.3 Direct and Indirect Effects on the Social/Economic Environment.................................................65 8.4 Direct and Indirect Effects on the Administrative Environment....................................................66 8.5 Mitigation Measures.......................................................................................................................66 8.6 Cumulative Effects..........................................................................................................................66 8.7 Unavoidable Adverse Effects..........................................................................................................67 8.8 Relationship between Short-Term and Long-Term Productivity...................................................67 8.9 Irreversible and Irretrievable Commitments of Resources.............................................................68 8.10 Any Other Disclosures..................................................................................................................68 9 OTHER APPLICABLE LAW..............................................................................................................69 9.1 Administrative Procedures Act.......................................................................................................69 9.2 Coastal Zone Management Act.......................................................................................................69 9.3 Data Quality Act.............................................................................................................................70 9.4 Endangered Species Act..................................................................................................................70 9.5 Executive Orders..............................................................................................................................71 9.5.1 E.O. 13132: Federalism........................................................................................................71 9.5.2 E.O. 12630: Takings.............................................................................................................72 9.6 Marine Mammal Protection Act.....................................................................................................72 9.7 Paperwork Reduction Act...............................................................................................................73 9.8 Small Business Act.........................................................................................................................73 9.9 Essential Fish Habitat......................................................................................................................73 10 LIST OF PREPARERS.......................................................................................................................74 11 LIST OF AGENCIES AND PERSONS CONSULTED...................................................................74 12 REFERENCES.....................................................................................................................................75 APPENDIX A Summaries of public hearings.....................................................................................A-1 APPENDIX B Alternatives considered but rejected...........................................................................B-1 APPENDIX C Life history characteristics of federally managed Gulf of Mexico reef fish speciesC-1 iv Acronyms/Abbreviations Used in this Document CEQ Council on Environmental Quality CFR Code of Federal Regulations CMP Coastal Migratory Pelagic (fishery) COI Certificate of Inspection issued by USCG Council Gulf of Mexico Fishery Management Council CZMA Coastal Zone Management Act EA Environmental Assessment EEZ Exclusive Economic Zone EHF Essential Fisheries Habitat EIS Environmental Impact Statement DSEIS Draft Supplemental EIS FEIS Final EIS FSEIS Final Supplemental EIS SEIS Supplemental EIS ESA Endangered Species Act FMP Fishery Management Plan FR Federal Register GMFMC Gulf of Mexico Fishery Management Council GOM Gulf of Mexico HAPC Habitat Area of Particular Concern IFQ Individual Fishing Quota MRFSS Marine Recreational Fisheries Statistics Survey M-SFCMA Magnuson-Stevens Fishery Conservation and Management Act MFMT Maximum Fishing Mortality Threshold MSST Minimum Stock Size Threshold MSY Maximum Sustainable Yield NMFS NOAA’s National Marine Fisheries Service NOAA National Oceanic and Atmospheric Administration OMB Office of Management and Budget OY Optimum Yield RF Reef fish RFA Regulatory Flexibility Act IRFA Initial Regulatory Flexibility Analysis RIR Regulatory Impact Review SEFSC Southeast Fisheries Science Center SSC Scientific and Statistical Committee USCG U.S. Coast Guard v Draft Supplemental Environmental Impact Statement Cover Sheet Responsible Agencies and Contacts: National Marine Fisheries Service 727-824-5301 Southeast Regional Office 727-824-5308 (FAX) 263 13th Avenue South http://www.sero.nmfs.noaa.gov St. Petersburg, Florida 33701 Contact: Andy Strelcheck [email protected] Gulf of Mexico Fishery Management Council 813-228-2815 The Commons at Rivergate 888-833-1844 (toll-free) 3018 U.S. Highway 301 North, Suite 1000 813-225-7015 (FAX) Tampa, Florida 33619-2272 [email protected] Contact: Frank S. Kennedy http://www.gulfcouncil.org [email protected] Name of Action Amendment 25 to the Fishery Management Plan for the Reef Fish Resources of the Gulf of Mexico and Amendment 17 to the Coastal Migratory Pelagic Resources of the Gulf of Mexico and South Atlantic. Type of Action (X) Administrative ( ) Legislative ( ) Draft (X) Final Summary Amendments establishing the charter vessel/headboat permit moratorium for the CMP fishery (Amendment 14) and the reef fish fishery (Amendment 20) were approved by NOAA’s National Marine Fisheries Service (NMFS) on May 6, 2003, and implemented on June 16, 2003 (68 FR 26280). The intended effect of these amendments was to cap the number of for-hire vessels operating in these two fisheries at the current level (as of March 29, 2001) while the Council evaluated whether limited access programs were needed to permanently constrain effort. The moratorium is set to expire June 16, 2006. In this amendment, the Council is considering whether to let the moratorium expire, extend the moratorium for a finite time period (5 or 10 years), or establish an indefinite limited access program. The Council has selected as their preferred alternative to establish an indefinite limited access program. Filing Dates with EPA Notice of Intent to prepare DSEIS published in Federal Register 4/07/05 (70 FR 17658). Draft SEIS filed with EPA on: TBD Comments on DSEIS must be received by: TBD vi Table of Contents for DSEIS The table of contents and sections that comprise the DSEIS are as follows: Cover sheet page vi Summary page xiii Executive Summary Purpose and need Section 2 Purpose and Need for Action Alternatives including the Section 3 Management Alternatives proposed actions Affected environment Section 7 Affected Environment Environmental consequences Section 5 Regulatory Impact Review Section 6 Initial Regulatory Flexibility Analysis Section 8 Environmental Consequences List of preparers Section 10 List of Preparers List of agencies, organizations, Section 11 List of Agencies, Organizations, and persons to whom copies and Persons to whom copies of the of the statement are sent. statement are sent References Section 12 References Index Section 13 Index Appendices Appendix A – Scoping Hearing Summaries Appendix B - Alternatives Considered but Rejected Appendix C – Life History Characteristics of Gulf of Mexico Reef Fish Species. vii Executive Summary Charter vessel permits were initially required in the coastal migratory pelagic (CMP) fishery in 1987. The for-hire fishing sector (charter vessels and headboats) of the reef fish fishery was required to have permits starting in 1997. Amendments establishing the charter vessel/headboat permit moratorium for the CMP fishery (Amendment 14) and the reef fish fishery (Amendment 20) were approved by NOAA Fisheries on May 6, 2003, and implemented on June 16, 2003 (68 FR 26280). Prior to the moratorium several fishery problems were identified, necessitating the cap on the number of vessels. Those problems included a significant increase in the number of Gulf charter vessels between 1998 and 2003 and the overfished status of several major reef fish and CMP fisheries. The intended effect of these Amendments was to cap the number of for-hire vessels operating in these two fisheries at the current level (as of March 29, 2001) while the Council evaluated whether limited access programs were needed to constrain effort. The moratorium is set to expire on June 16, 2006. In this amendment, the Council is considering whether to let the moratorium expire, extend the moratorium for a finite time period (5 or 10 years), or establish an indefinite limited access program. The potential impacts of each of the alternatives are illustrated in the following table and described below. A plus (+) indicates an overall benefit, a minus (-) an overall impact, and “na” represents none identified or not applicable. reference Pref Biol. Phys Econ Soc Admin Mitigate Cum Unavoid Irreversible Alt. Env. Env Env Env Effects adverse Irretrievable Alt 1- No Action - na - - - na - na na Alt 2- June 16, 2011 + na + + na na + na na Alt 3- June 16, 2016 + na + + na na + na na Alt 4- Limit access x + na + + na na + na na Allowing the fishery to revert to an open access management regime (Alternative 1) would allow an increase in the number of for-hire vessels and potentially would increase fishing effort, thereby directly affecting stocks targeted by the for-hire sector. An increase in fishing effort could force the need for additional regulations and directly jeopardize the Councils’ ability to rebuild overfished fisheries and prevent overfishing in the short-term. Alternative 1 would have the smallest initial economic effects of any of the alternatives considered, but would likely reduce economic stability and performance in both the short- and long-term. Increases in fishing mortality could also negatively affect existing and future regulations in the short-term designed to rebuild stocks, which in turn could decrease the long-term viability of the for-hire business operations. If fish abundance worsens over time or regulations are made more restrictive, fishing costs may increase, which would reduce business prospects and deter anglers from fishing on for-hire vessels. Alternatives 2-4 all would continue to cap the number of vessels participating in the for-hire fishery. Alternative 2 would continue the permit moratorium for an additional five years. Alternative 3 would continue the permit moratorium for an additional 10 years. Preferred Alternative 4 would establish an indefinite limited access system. In the short-term (< 5 years), the effects of each of these alternatives are expected to be similar. All of the alternatives would benefit the biological environment by limiting or preventing increases in fishing mortality. In the long-term, Alternatives 2 and 3 would have the greatest effects on the administrative environment because a new amendment would have to be developed to continue the moratorium after five or ten years. Because these alternatives would set a finite period for viii continuing the moratorium, the Council could be faced with the same choices as at present, i.e., either let the moratorium expire, continue it for some period, or replace it with some other form of limited access. Preferred Alternative 4 would create a permanent limited access program for the for-hire fishery until such time as the Council determines that it is no longer needed or replaces it with some other form of limited access. They will review the effectiveness of the limited access program at least every ten years as part of that determination. Preferred Alternative 4 would result in greater profit losses, than Alternatives 2 and 3, respectively. However, economic impacts may be mitigated or possibly eliminated by an emergency rule that reopened the application process for persons who did not obtain a permit during the original moratorium. Additionally, since the transferability of permits under the moratorium would remain valid under any of these alternatives, new entrants could enter the fishery by purchasing existing permits. ix Fishery Impact Statement/Social Impact Analysis Regulations impose restrictions on fishery participants, which can result in adverse effects on fishermen and fishing communities. The proposed action would establish a limited entry system for recreational for- hire permits in the Reef Fish and CMP fisheries. This limited entry system is intended to continue the cap on participation in the fishery at current levels and provide for biological, social and economic stability in the Reef Fish and CMP for-hire fishery. The biological status of species in the Reef Fish and CMP fisheries is expected to be better under a moratorium or limited access system that prevents new vessels from entering the fishery and increasing fishing pressure. The status quo would allow the recreational for-hire permit moratorium that was implemented on June 16, 2003 to expire, creating an open access fishery. It is estimated that approximately 850 or more for-hire vessels currently operating in GOM state waters may apply for a for-hire permit. Fishing effort would increase on Reef Fish and CMP species, many of which are already overfished or undergoing overfishing. Under open access, an increase in the number of vessels entering the fishery would likely increase short- term total revenues for the for-hire charter fishery but in the long-term could diminish the overall economic performance of individual vessels. Under any of the action alternatives in this Amendment, permits would be capped at the March 29, 2001 level. This cap on permits should maintain the current social and economic structure of the for-hire industry while providing some room for change as allowed by open-market permit transferability. Alternatives 2 and 3 would set a finite time period for extension of the existing moratorium, five or ten years. The Preferred Alternative 4 would create a limited access system making permanent the moratorium on issuance of new permits unless the Council, through a required ten year review process, re-opened the permit application process. Although there are expected short-term costs associated with the moratorium, the moratorium will support the continued socioeconomic benefits associated with stability in the fishery and avoidance of the adverse effects associated with increased resource pressure and deteriorating resource conditions. The longer the moratorium, as would occur under Preferred Alternative 4, the longer these benefits will be received. Additionally, it is expected that the longer the moratorium, the more the permitted vessels will be able to adapt their operations to increases in demand for recreational trips from both previously displaced anglers or improved U. S. economic conditions, as well as being able to benefit from improved resource conditions. A more detailed analysis of the impacts to participants and their communities relative to the alternatives for open or limited access is found in Sections 5 and 8 herein. x