Gulf of Mexico Fisheries Disaster Program

DEPARTMENT OF COMMERCE

National Oceanic and Atmospheric Administration

[Docket No. 960322092-6159-02; I.D. 032596B]

RIN 0648-ZA19

Gulf of Mexico Fisheries Disaster Program

AGENCY: National Marine Fisheries Service (NMFS), National Oceanic and

Atmospheric Administration (NOAA), Commerce.

ACTION: Final notice of availability of Federal assistance.

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SUMMARY: NMFS establishes a Gulf of Mexico Fisheries Disaster Program

(Program) that will provide $5 million in financial assistance to

commercial fishermen who suffered uninsured fishing vessel or gear

damage or loss caused by hurricanes, floods, or their aftereffects.

Assistance will be in the form of a discretionary grant only; this

notice does not create an entitlement program.

DATES: Applications must be received by close of business October 7,

1996.

ADDRESSES: Applications should be sent to Charles L. Cooper, Program

Leader, Financial Services Division, National Marine Fisheries Service,

1315 East-West Highway, Silver Spring, MD 20910. Comments regarding the

burden-hour estimate or any other aspect of the collection-of-

information requirement contained in this notice should be sent to the

same address.

FOR FURTHER INFORMATION CONTACT: Charles L. Cooper, Program Leader,

(301) 713-2396.

SUPPLEMENTARY INFORMATION: On August 2, 1995, the Secretary of Commerce

(Secretary) declared fisheries disasters in the Pacific Northwest, New

England and the Gulf of Mexico (Gulf). The Secretary stated that the

Gulf disaster arose from hurricanes and floods, and their aftereffects,

occurring from August 23, 1992, through December 31, 1995. Commercial

fishing vessels and gear were damaged or lost either as a direct result

of these events or through contact with underwater hazards created by

the storms and floods. Under the authority of the Interjurisdictional

Fisheries Act (IFA) of 1986 (16 U.S.C. 4107(d)), as amended, a total of

$5 million in Federal financial assistance is available to commercial

fishermen in the Gulf of Mexico for uninsured losses due to vessel or

gear loss or damage due to the natural disasters covered by the August

2, 1995, disaster declaration.

On behalf of the Secretary, NMFS published a Notice of Proposed

Program on April 1, 1996 (61 FR 14293), to solicit public comments. In

addition, the NOAA Office of Sustainable Development and

Intergovernmental Affairs conducted three town meetings in Texas,

Louisiana, and Florida, respectively, in order to solicit public

comment on the proposed program.

Comments received in writing or from public meetings in response to

the proposed program are summarized and responded to in this document.

During the comment period, Congress amended the IFA to provide NMFS

with more program flexibility. Pursuant to these amendments, fishermen

may now recover up to 100 percent of their uninsured loss, and

fishermen who earn less than $2 million in net revenues annually from

commercial fishing are now eligible to participate in the program.

Comments and Responses

NMFS received 11 written responses to the proposed program. In

addition, several points were raised on the record during the public

meetings. In total, NMFS identified the following 10 distinct comments

on the proposed program.

Comment: Eight commenters suggested expanding the area eligible for

assistance beyond the Gulf of Mexico to include other Florida coastal

areas affected by the weather events that were the subject of the

declared fisheries disasters.

Response: The IFA provides for assistance to fishermen affected by

declared fisheries disasters. The

[[Page 29351]]

Secretary's disaster declaration limited the weather-related fisheries

disasters to the Gulf of Mexico, which NMFS has defined as bordered on

the east by the Florida Dade/Monroe County line and including Florida

Bay and the Florida Keys. Consequently, weather-related losses in other

areas are not eligible for assistance at this time.

Comment: One commenter suggested that vessel damage be eligible for

compensation.

Response: NMFS proposed to limit assistance for eligible weather-

related damage to fishing gear only because commercial insurance was

available for vessel losses. However, information from Federal and

state officials, as well as compelling public testimony, indicates a

significant amount of vessel damage caused by the declared disasters.

Therefore, NMFS has determined that assistance may also be provided for

uninsured vessel loss or damage. Individual uninsured losses will be

compensated for the amount of the uninsured loss, or for an amount not

to exceed $7,500, whichever is less.

Comment: Two commenters suggested that economic and property losses

suffered by commercial fisheries support industries should be eligible

for compensation.

Response: The IFA limits assistance ``to persons engaged in

commercial fisheries * * *.'' NMFS interprets this to mean only persons

engaged in actual fishing or operation of a charter boat or head boat

operation. Consequently, losses suffered by support industries are not

eligible for assistance.

Comment: One commenter suggested that damage caused by tropical

storms be eligible for assistance.

Response: The IFA provides that Federal assistance will be

available only to commercial fishermen for harm arising from Hurricane

Hugo, Hurricane Andrew, Hurricane Iniki, or any other natural disaster.

The Secretary limited the definition of disasters of the magnitude

foreseen by the IFA to hurricanes, as well as the devastating

Mississippi River floods of 1993 and 1994, and their aftereffects.

Consequently, damage due to tropical storms is ineligible under this

program.

Comment: One commenter suggested that a 45-day application period

is too short, given the time elapsed since some of the eligible

disasters and the fishermen's difficulty in assembling application

information pertaining to these disasters.

Response: NMFS agrees. The application period is increased to 120

days.

Comment: Many commenters at the public meetings in Texas,

Louisiana, and Florida stressed that the scale of damage from eligible

causes was so great that a cap of $5,000 on compensation on individual

applications and $15,000 on aggregate applications from a single entity

is inadequate.

Response: NMFS agrees. Individual uninsured losses will now be

compensated for the amount of the uninsured loss or for an amount not

to exceed $7,500, and up to $22,500 in the aggregate, whichever is

less.

Comment: Six commenters suggested that the program include charter

boat owners or operators.

Response: Because the program will now include vessel damage or

loss, NMFS has decided to extend financial assistance to charter or

head boat owners or operators. Therefore, the definition of

``fisherman'' now includes those persons providing a vessel for hire

that carries recreational fishermen to engage in fishing for a fee.

Comment: Many commenters at the public meetings felt the program

should compensate for the fishermen's cost of labor since most

fishermen repair their own gear.

Response: While NMFS recognizes that many fishermen repair their

own gear and vessels, labor cost would be difficult to document and

would present significant verification concerns. In the interests of

fair and efficient administration of the program, labor costs will not

be reimbursed. Fishermen may recover, however, the costs of material

used to repair their vessel or gear, subject to the conditions and

limitations set forth in this notice.

Comment: Many commenters at the public meetings felt that the

program application requires too much information.

Response: In order to avoid fraud and abuse of the program,

applicants must provide sufficient documentation to prove all

circumstances necessary to qualify for assistance. Therefore, NMFS

requires the information requested in order to make accurate

assessments of each alleged uninsured loss. However, the program allows

for provision of alternative documentation if certain information

cannot be obtained by the applicant. It is within the NMFS Financial

Services Division's discretion to determine whether the documentation

will be considered.

Comment: One commenter suggested that financial assistance should

be limited only to Hurricane Andrew victims.

Response: Pursuant to the IFA, the Secretary announced that

emergency aid would be available for persons engaged in commercial

fishing who suffered from the declared fishery resource disasters

arising from hurricanes, floods, or their aftereffects. Therefore, this

assistance cannot be limited to victims of Hurricane Andrew.

I. Definitions

Application means an application under this program.

Applicant means an applicant under this program.

Award means an approved grant under this program.

Day means a calendar day.

Division means the Financial Services Division, National Marine

Fisheries Service, National Oceanic and Atmospheric Administration,

U.S. Department of Commerce, 1315 East-West Highway, Silver Spring, MD

20910.

Eligible cause means any hurricane or flood, or its aftereffects,

during a period from August 23, 1992, through December 31, 1995

(including, but not limited to: Wind, waves, rising waters, and the

debris or other obstructions caused by them or carried by them).

Eligible waters means all state, Federal, and estuarine waters in

the Gulf of Mexico, which is bounded in the east by the Florida Dade/

Monroe County line and includes Florida Bay and the Florida Keys.

Fisherman means any natural or legal person who (1) Owns or leases

a fishing vessel and/or fishing gear, or provides a vessel for hire

that carries recreational fishermen to engage in fishing for a fee, (2)

derives more than 50 percent of annual income from fishing, (3) has net

revenues of less than $2 million annually from commercial fishing, and

(4) is a U.S. citizen or permanent resident alien.

Fishing means the legal harvesting of all types of aquatic animal

and plant life (except marine mammals and birds) for the purpose of

selling those catches into normal commercial distribution channels with

the intent of earning a profit, or the provision of a vessel for hire

that carries recreational fishermen to engage in fishing for a fee.

Gear means all legal fishing gear and equipment including, but not

limited to, nets, winches, and motor parts, and fixed gear such as

pots, traps, and pound nets.

Ineligible causes means any causes other than eligible causes,

including (but not limited to) negligence.

Loss means damage to or loss of gear or damage to vessels caused by

eligible causes in eligible waters for which compensation has not been

received, or will not be received, from insurance companies, state, or

Federal programs

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(other than this program), or any other sources.

Loss gear means the gear for the loss of which an applicant is

submitting an application under this program.

Loss trip means the trip of the loss vessel during which the loss

actually occurred (or, in the case of fixed gear, both the trip in

which the loss gear was deployed and the trip in which the loss gear's

loss was first discovered).

Loss vessel means the vessel that was lost or damaged or from which

the loss gear was, or last had been, deployed at the time of its loss.

Negligence includes, but is not limited to, failure to: (1) Remain

outside any navigation safety zone established around any offshore

energy activities or other obstructions by any Federal or state

authority; (2) avoid obstructions recorded on nautical charts or in the

Notice to Mariners in effect at least 15 days before the loss or marked

by a buoy or other surface marker (casualties occurring within a one-

quarter mile (0.4 kilometer) radius of obstructions so recorded or

marked are presumed to involve the negligence or fault of the

claimant); (3) abide by established Coast Guard navigational rules; or

(4) use due care and diligence to avoid or mitigate the damage or loss.

Notice means this final notice of availability of Federal

assistance.

Program means this program under the notice.

Repair cost means the cost (at the time of loss) of repairing loss

gear or vessel, including material costs for fishermen repairing their

own gear.

Replacement cost means the cost (at the time of loss) of replacing

loss gear.

Vessel means any fishing vessel, boat, or other water craft

documented under the laws of the United States or registered under the

laws of any state of the United States and used for fishing or

activities directly related to fishing.

II. Eligibility

The Program is available only to fishermen for the repair cost or

replacement cost of fishing vessels and/or fishing gear loss in

eligible waters due to eligible causes.

III. Documentation Requirements

Applicants must provide sufficient documentation to prove all

circumstances necessary to qualify for assistance (including, but not

limited to, documentation evidencing that loss was more likely than not

due to eligible causes). Specific types of documentation requested are

identified in Section VIII below. Other documentation considered to be

relevant by applicants may also be submitted. It will be within the

Division's discretion to determine whether the documentation will be

considered.

IV. Amount

Each award shall be for up to 100 percent of the uninsured loss,

except that (1) no award will exceed $7,500 and (2) no applicant will

receive aggregate awards from multiple applications totaling more than

$22,500.

V. Who May Apply

Only U.S. citizens or permanent resident aliens who meet the

definition of fisherman as set out in this notice, and who owned or

leased the loss gear or vessel at the time the loss or damage occurred

may apply. Lessors may not apply unless they bore the risk of the

vessel or gear's loss.

VI. When to Apply

Applications will be accepted during a 120-day period that begins

on the date of publication of the final notice in the Federal Register.

Applications received after this period will not be considered.

If applications are sent by U.S. mail, their submission dates are

the same as their postmark dates. If applications are sent any other

way, their submission dates are the dates the Division receives them.

All applications will be considered on a first-come/first-serve basis

from the date of acceptance.

VII. Where to Apply

Applicants must send applications to the Division (see ADDRESSES).

All other correspondence or questions about this program or

applications under it must also be addressed to the Division.

VIII. Application Contents

Applicants must submit applications on forms provided by the

Division. Proprietary information submitted by applicants will only be

disclosed to Federal officials who are responsible for the program

unless otherwise required by court order or other applicable law. All

information submitted is subject to disclosure under the Freedom of

Information Act.

Applicants may receive application forms (and NOAA Federal

Assistance Application Kits) by calling or writing the Division (see

ADDRESSES). All applications must include at least the following items:

(1) The applicant's name, social security number, tax

identification number, mailing address, telephone number, citizenship,

and whether the applicant owned or leased the loss gear and/or loss

vessel during the loss trip.

(2) If the loss vessel is documented under Federal law, a copy of

the loss vessel's Certificate of Documentation (U.S. Coast Guard Form

1270).

(3) If the loss vessel is registered under state law, a copy of the

registration or title document issued by the registering state.

(4) If the loss vessel is leased, a copy of the lease and the name,

mailing address, and telephone number of the loss vessel's lessor (the

legal owner from which the applicant leased the loss vessel). Loss

vessel lessees must establish that they bore the risk of the loss

vessel's loss.

(5) If the loss gear is leased, a copy of the lease and the name,

mailing address, and telephone number of the loss gear's lessor (the

legal owner from which the applicant leased the loss gear.) Loss gear

lessees must establish that they bore the risk of the loss gear's loss.

(6) A description of the loss vessel's fishing type, size, and

capacity.

(7) A full description of the loss gear and how such gear is

normally deployed and operated.

(8) If the loss was observed, the date and time of loss.

(9) If the loss was unobserved, the date and time the applicant

last saw the loss gear or loss vessel in good condition and the date

and time the applicant first discovered the loss gear or vessel's loss.

(10) A full statement of why the applicant believes it is more

likely than not that the loss was caused by an eligible cause. The

applicant should include in this statement all known evidence relevant

to the most likely cause of the loss gear or vessel's loss. The level

of detail in this statement must, together with all other information

required in this section, be sufficient to clearly and accurately

depict all known circumstances relevant to the loss. Photographs and

videos of the damage may be submitted in support of the statement. The

Division will deem statements that do not meet this criterion to be

incomplete. If the time and place of loss are not consistent with the

time at which a hurricane or a flood directly affected that place, then

the applicant must carefully explain why the applicant believes the

loss was more likely than not caused by the aftereffects of a hurricane

or flood rather than by other factors (unrelated to hurricanes or

floods) normally responsible for such a loss in such a place.

(11) When the loss vessel first left port on the loss trip and when

it first returned to port at the end of the loss trip.

(12) Where applicable, the loss vessel's direction, speed, and

other

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activities immediately before, during, and after the loss.

(13) The name, current mailing address, and telephone number of

each person serving during the loss trip as a crew member of the loss

vessel (if unavailable, state why).

(14) A sworn, written statement from each loss trip crew member

describing his or her knowledge of the loss and the conditions

surrounding it and his or her activities immediately before, during,

and after the time of the loss (if unavailable, state why).

(15) The location where the loss occurred in Loran C coordinates

(or, if the loss vessel did not have Loran C capability, the next most

accurate method of position fixing available).

(16) The fullest description possible of the nature and type of any

obstruction, debris, or other item involved in causing the loss.

(17) The total purchase cost or total lease cost of the loss vessel

or loss gear.

(18) A detailed inventory of all components of the loss gear and

the nature of the loss with respect to each component.

(19) Proof of the date, place, and cost of having acquired all loss

gear (sales receipts, copies of leases, or other satisfactory

evidence).

(20) Evidence that the loss vessel was fishing on the three most

recent loss-vessel trips before the loss trip. This evidence may

consist of trip tickets for the three trips before the loss trip.

(21) Proof of having replaced or repaired the loss gear or loss

vessel (sales receipts, repair invoices, copies of leases, or other

satisfactory evidence).

(22) A copy of the applicant's Federal income tax return (including

all business schedules) for the year in which the loss occurred (or, if

the loss trip occurred in a year for which the applicant has not yet

filed a return and the deadline for doing so has not yet passed, then a

copy of a return for the latest year for which the filing deadline has

passed).

(23) A copy of any state or Federal fishing license, permit, or

gear tag receipts, or other state or Federal fishing authorization

required for the loss vessel's operation during the loss trip.

(24) Evidence of the applicant's having complied with state or

Federal requirements (if any) for reporting the catch results during

the loss trip.

All applications will be submitted, and all statements in them

made, under a penalty of perjury. A false statement on the application

is grounds for denial or termination of funds and grounds for possible

punishment by a fine or imprisonment (18 U.S.C. 1001).

It will be within the Division's discretion to accept other

documentation that applicants may submit in support of the application-

content requirements. The Division may engage in pre-award negotiations

with applicants to enable the Division to make a determination

concerning acceptable application-content documentation.

IX. Application Processing

(a) Ineligible or incomplete applications. The Division will not

accept ineligible or incomplete applications. The Division will return

these to the applicants with an explanation of why the applications are

unacceptable. Any applicant who wishes to have his or her returned

application reconsidered for acceptance must respond within 30 days

from the date of the Division's letter returning the application. If

reconsideration responses render the applications complete, they will

be accepted as newly submitted applications with the date of response

serving as the submission date for chronological ranking for funding

purposes.

(b) Submission dates for reconsideration responses. If

reconsideration responses are sent by U.S. mail, their submission dates

are the same as their postmark dates. If these responses are sent any

other way, their submission dates are the dates on which the Division

receives them.

X. Determinations

(a) Chronological precedence. Chronological precedence for

assistance will be determined by application submission dates.

Assistance will be made available on a first-come/first-serve basis

until the $5 million available for this program has been depleted.

(b) Delays. Determinations will be made as soon as possible, but

personnel considerations may result in significant processing delays.

(c) Division disapproval. If the Division disapproves an

application, it will return the application to the applicant and state

the reason for its disapproval.

(d) Approval and disbursement of funds. If the Division approves an

application, it will forward the application to the NOAA Grants

Management Division for final approval. If the NOAA Grants Management

Division approves the application, it will issue an award and notify

the applicant of the award amount and any further requirements upon

which the award is contingent.

(e) Finality. All Division and NOAA Grants Management Division

determinations will be final and conclusive.

XI. Administrative Requirements

All applicants are subject to as much of the following grants

administration requirements as may be applicable to these grants.

Applicants to whom awards will be made must submit a Standard Form

424B, ``Assurances--Non-Construction Programs'' and Form CD-511,

``Certification Regarding Debarment, Suspension and Other

Responsibility Matters; Drug-Free Workplace Requirements and

Lobbying.'' These documents are included in the NOAA Federal Assistance

Application Kit.

Prospective participants (as defined at 15 CFR 26.105) are subject

to 15 CFR part 26, ``Nonprocurement Debarment and Suspension,'' and the

related section of the certification form CD-511 applies.

Grantees (as defined at 15 CFR 26.605) are subject to 15 CFR part

26, subpart F, ``Governmentwide Requirements for Drug-Free Workplace

(Grants),'' and the related section of the certification form CD-511

applies.

Any applicant who has paid or will pay for lobbying using any funds

must submit an SF-LLL, ``Disclosure of Lobbying Activities,'' as

required by law (31 U.S.C. 1352, as amended).

Grant recipients are subject to all Federal laws and Federal and

Commerce policies, regulations, and procedures applicable to Federal

financial assistance awards.

Applicants are subject to a name check review process. Name checks

are intended to reveal if any key individuals associated with the

recipient have been convicted of, or are presently facing, criminal

charges such as fraud, theft, perjury, or other matters that

significantly reflect on the recipient's management, honesty, or

financial integrity. A false statement on the application is grounds

for denial or termination of funds and for possible punishment by a

fine or imprisonment (18 U.S.C. 1001).

Unsatisfactory performance under prior Federal awards may result in

an application not being considered for funding.

No award of Federal funds shall be made to an applicant who has an

outstanding delinquent Federal debt or fine until: (a) The delinquent

account is paid in full; (b) a negotiated repayment schedule is

established and at least one payment is received; or (c) other

arrangements satisfactory to Commerce are made.

Applicants are hereby notified that they are encouraged, to the

extent

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feasible, to purchase American-made equipment and products with funding

under this program.

If applicants incur any costs prior to an award being made, they do

so solely at their own risk of not being reimbursed by the Government.

Notwithstanding any verbal or written assurance that may have been

received, there is no obligation on the part of Commerce to cover pre-

award costs.

If an application is selected for funding, Commerce has no

obligation to provide any additional future funding in connection with

that award.

Classification

This program has been determined to be not significant for the

purposes of E.O. 12866.

Applications under this program are subject to E.O. 12372,

``Intergovernmental Review of Federal Programs.''

The program is listed in the ``Catalogue of Federal Domestic

Assistance'' under No. 11.452, Unallied Industry Projects.

This program contains a collection-of-information requirement

subject to the Paperwork Reduction Act (PRA). The collection of this

information has been approved by OMB (OMB control number 0648-0082).

Public reporting burden for preparation of the claim application is

estimated to be 10 hours per response including the time for reviewing

instructions, gathering and maintaining the documentation, and

completing and reviewing the collection of information. Send comments

regarding this burden estimate or any other aspect of this collection

of information, including suggestions for reducing this burden, to NMFS

(see ADDRESSES). Other requirements mentioned in the notice include

Forms 424B and LLL, which are cleared under OMB Control Numbers 0348-

0040 and 0348-0046, respectively.

Notwithstanding any other provision of law, no person is required

to respond to nor shall a person be subject to a penalty for failure to

comply with a collection of information subject to the requirements of

the PRA unless that collection of information displays a currently

valid OMB control number.

Authority: Public Law 99-659 (16 U.S.C. 4107 et seq.); Public

Law 102-396.

Dated: June 4, 1996.

Gary Matlock,

Program Management Officer, National Marine Fisheries Service.

[FR Doc. 96-14591 Filed 6-7-96; 8:45 am]

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