hurricane michael fishery disaster proposal · this proposal is submitted for the funding available...

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Hurricane Michael Fishery Disaster Funding Proposal

Project Narrative

INTRODUCTION

Hurricane Michael made

landfall near Mexico Beach,

Florida on October 10, 2018 as a

Category 5 hurricane with

maximum sustained winds of

160 mph. Hurricane Michael

was one of the strongest storms

on record to ever hit Florida and

has had a significant impact on

Florida's fishing industry in an

area of the state where fishing

is an important component of our economy and is a traditional activity. The force of Hurricane

Michael's impact on our commercial and recreational fisheries was significant. Florida’s

commercial fishing and seafood industry and recreational fishing sector in the impacted areas

had revenues of $1.1 billion. Saltwater anglers in West Florida spent $2 billion on fishing trips,

which directly supported 17,000 jobs. For-hire operations alone employed 2,700 workers. In

West Florida, the bait and tackle businesses and for-hire operations had combined revenues of

$1.1 billion and employed 15,600 workers in 2017.

Damages at St. Andrew’s Marina. Photo: Florida Sea Grant/Scott Jackson

Damages in Mexico Beach. Photo: Florida Sea Grant/Scott Jackson

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The description of damages to commercial fishermen, the seafood industry and for-hire and

recreational fishing businesses is informed by an on-the-ground rapid assessment conducted by

Florida Sea Grant with assistance from NOAA Fisheries during December 2018.

NOAA Fisheries conducted a phone survey with fishermen and fishing businesses in the Florida

Panhandle and Big Bend area in mid-December 2018 to quantify the damages from Hurricane

Michael. A total of 307 businesses and individuals (out of 1,004 contacted) participated in the

rapid assessment, which was completed over a two-week period. These estimates are

extrapolated from information collected from respondents. Overall, 62% of firms and 55% of

vessel owners that responded sustained damages. Total estimated damages to vessels and

businesses was $45.0 million with revenue losses estimated at $23.9 million.

The Florida Department of Agriculture and Consumer Services conducted a phone survey in

January of 2019 of all commercial aquaculture facilities in the counties impacted by Hurricane

Michael and found that 82% of the 112 farms in the damage area, both upland and marine,

experienced losses. Crop

mortality represented

93% of the economic

impact for shellfish

farms, which

experienced an average

revenue loss of $76,805

per farmer. The total

estimated damage to the

shellfish aquaculture

farmers in Bay, Gulf,

Franklin and Wakulla

counties was estimated

to be $6.5 million.

On October 23, 2018, Governor Scott requested that the US Department of Commerce Secretary Wilbur Ross declare a fishery disaster in Florida (Bay, Franklin, Gulf and Wakulla Counties). Secretary Ross declared a fishery disaster on October 31, 2018. NOAA Fisheries allocated $7,812,000 to the State of Florida to respond to the 2018 Hurricane Michael disaster. This proposal is submitted for the funding available to the State of Florida for the 2018 Hurricane Michael disaster.

FWC developed the following plan in consultation with fishing industry organizations and

individuals. The list of organizations consulted included the Organized Fishermen of Florida,

American Sportfishing Association, Southeastern Fisheries Association, Florida Sea Grant,

Florida Guides Association, Coastal Conservation Association Florida.

The following is a list of categories of projects that will strengthen the long-term economic and

environmental sustainability of Florida fisheries. These projects were developed in partnership

with leaders of the commercial fishing, wholesale dealer, charter fishing, as well as bait and

Aquaculture Damages at Alligator Harbor. Photo: Florida Sea Grant/Erik Lovestrand

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tackle communities. Methodologies for accountability for payments made to commercial

fishers, seafood wholesale dealers, charter captains, and bait and tackle operators will be

further developed with consultation and approval of the NOAA Fisheries Southeast Regional

Office prior to any payments being made.

*From NOAA Fisheries Hurricane Michael Fact Sheet. Aquaculture loss estimated by FDACS.

PROJECTS

The following allocations were taken from the rapid assessment conducted by NOAA following

the storm. Staffing and indirect costs are for part-time employees for up to two years to

administer projects.

The following projects include direct payouts commercial fishers, wholesale dealers, charter

captains, and shellfish aquaculturists to help them recoup a portion of lost revenue as well as

financial relief for incurred costs associated with lost vessels and/or facility damage. These

projects are proposed to provide some assurance that they can continue to contribute to

Florida’s valuable fishing industry.

Vessel/Facility Damage Revenue Loss Total Losses

Sector

*Vessel and Facility

Damage in millions of $

Percent of Total Allocation

*Revenue Loss in

millions $ Percent of Total Allocation

Total Losses in millions $

Percent of Total

Total Sector Allocation

Commercial Fishers

11.6 19% $1,475,751 9.3 15% $1,183,146 20.9 34% $2,658,897

Wholesale Dealers

11.3 19% $1,437,585 2.0 3% $254,440 13.3 22% $1,692,025

Charter Captain

9.2 15% $1,170,424 2.7 4% $343,494 11.9 19% $1,513,917

Marina Infrastructure

8.3 14% $1,055,926 8.3 14% $1,055,926

Aquaculture 6.5 11% $826,930 6.5 11% $826,930

Staffing and Indirect

$64,305

Total 40.4 63% $5,139,686 20.5 37% $2,608,010 55.1 $7,812,000

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Direct Payouts to Commercial Fishers-$2,658,897

Commercial Fisher Revenue Loss

Qualifications Documentation

Florida resident FWC will qualify based on information in licensing system

Applicant had a valid Saltwater Products License at time of storm

FWC will qualify based on information in licensing system

Applicant had landings in Bay, Gulf, Franklin or Wakulla County at least one year prior to storm and landings one year after storm

FWC will qualify based on information in trip ticket system

Landings must have been entered into FWC trip ticket system


Received no other compensation with the exception of loan(s) Applicant will self-certify

Applicant had less value in landings after storm than average of up to three years prior to storm


Loss of revenues was due to storm Applicant will self-certify

Commercial Fisher Vessel Damage



Applicant had a valid Saltwater Products License at time of storm


Applicant had landings in Bay, Gulf, Franklin or Wakulla County at least one year prior to storm and landings one year after storm


Landings must have been entered into FWC trip ticket system


Vessel damage was due to storm Applicant will self-certify

Some or all of losses were uninsured Applicant will self-certify

Damages were evaluated by independent party

Insurance adjuster claim damages report is to be available upon request and documents are to be maintained for at least three years after payment for this project

A project is proposed to provide direct payouts to commercial fishermen impacted by revenue loss to help the sustainability of this crucial component of the fishery. Fishermen in the Counties most impacted by Hurricane Michael (Bay, Franklin, Gulf and Wakulla Counties), on average, sustained damages of $18,400 per vessel in addition to an estimated combined facilities and business insured and uninsured loss of $11.6 million. This is in addition to the estimated $9.3 million loss in revenues. Many of the commercial fishermen in Bay County were out of work due to damaged or lost vessels. The Gulf County commercial fishery was devastated with facility damage, vessel damage, and loss revenue. One of the large wholesale

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dealers in the county had no way to produce ice for over a week. In Franklin County, most vessels were moved inland and avoided any significant damage, but loss of power affected revenues. Commercial fishers continue to be important economic engines of the community and essential components of the fishing industry.

This program is proposed to pay commercial fishers (SPL holders) financially impacted by

Hurricane Michael. Applications will be sent to all license holders who have current

addresses on file who meet initial eligibility requirements, which include residing in the

State of Florida, possessing a valid SPL, and having reported landings in eligible Counties

(Bay, Gulf, Franklin or Wakulla) both before (not to exceed three years) and one year after

Hurricane Michael made landfall in Florida. The landings must have been reported in FWC’s

trip ticket system. For SPL holders who also hold a commercial wholesale dealer (WD)

license, landings sold to themselves will be removed from this project. Since these “self-

sold” landings will be utilized in the proposed Direct Payouts to Commercial Wholesale

Dealers project, they will be removed from this project to prohibit applicants from receiving

financial relief twice for the same landings.

Additionally, applicants will be able to request financial relief from incurred costs associated

with uninsured vessel damage. Vessel reimbursement qualifications are still being

determined and will be done in consultation with the NOAA Fisheries Southeast Regional

Office. Applicants will be required to attest to the accuracy of the landings reported and

information they provide on the application and declaring that they were financially

affected as a commercial fisher by Hurricane Michael. Applications will be mailed to entities

using the active mailing address on file with the FWC License and Permitting database and

advertised for a one-month period. If the applicant has an email address on file with FWC,

they will be notified by email when the application has been mailed. Applicants will be

allowed to submit their application either electronically or by mail. A postmarked deadline

will be utilized to provide a fair submission process. While the application submission

window is open, applicants will be able to contact FWC regarding any disputes with the

reported landings data. A team of FWC employees with access to FWC’s trip ticket database

will work with applicants to resolve any disputes.

Payouts will be processed for submitted applications that have reported landings in at least

one of the four Counties at least one year prior to Hurricane Michael making landfall and

after the storm. Pre-storm landings data will still go back as far as three years. This landings

requirement ensures the paid applicant was an active commercial fisher before and after

Hurricane Michael. Applications will be sent to SPL holders that meet the initial

requirements listed above. This is done to allow the SPL holder to review their landings FWC

has recorded, ensuring they are accurate and if not, dispute potential inaccuracies.

Therefore, some SPL holders will receive an application, but not be eligible to receive a

payout. This disclosure will be stated on the application.

Individual payouts will be calculated based on total losses identified from applicants.

Revenue losses will be calculated based on the decrease in landings from the averaged years

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before the storm (not to exceed three years) compared to the one year after the storm.

Payments will be made on a pro-rated basis, based on the amount of funds available for this

project.

Direct Payouts to Commercial Wholesale Dealers-$1,692,025

Wholesale Dealer Revenue Loss



Applicant had a valid Seafood Wholesale Dealer's License at time of storm


Applicant had saltwater product purchases in Bay, Gulf, Franklin or Wakulla County at least one year prior to storm and saltwater product purchases one year after storm


Saltwater product purchases must have been entered into FWC trip ticket system


Applicant had loss of revenue after the storm as compared to up to a three year average before the storm

FWC will index losses based on trip tickets that have been submitted

Losses in revenues were the result of the storm Applicant will self-certify

Seafood Wholesale Dealer Facility Damage or Vessel Damage



Applicant had a valid Seafood Wholesale Dealer's License at time of storm


Applicant had saltwater product purchases in Bay, Gulf, Franklin or Wakulla County at least one year prior to storm and saltwater product purchases one year after storm


Saltwater product purchases must have been entered into FWC trip ticket system


Facility must be one inspected by FDACS

FWC will quality based on information in FDACS Wholesale Dealer Inspection database

Facility and/or vessel damage was due to storm Applicant will self-certify




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This project is proposed to ensure sustainability and resiliency of commercial wholesale dealers.

Commercial fishers holding a saltwater products license can only legally sell their product to a

licensed wholesale dealer. Seafood processors and dealers sustained estimated damages of

$11.3 million of insured and uninsured vessel/facilities damages and reported a loss of

revenues of $2.0 million. Anyone wishing to sell a saltwater product to the public must possess

a retail dealer’s license. Therefore, commercial fishers, wholesale dealers, and retail dealers are

dependent upon each other to provide the public with wholesome, healthy Florida seafood.

The proposed project includes direct payouts to wholesale dealers to ensure the public’s

continued access to Florida seafood.

For the proposed direct payouts to seafood commercial wholesale dealers (WD License

holders) financially impacted by Hurricane Michael applications will be sent to all WD

licensees who have current addresses on file who meet initial eligibility requirements, which

includes a physical location in the State of Florida, possessing a valid WD license or Shellfish

Processing Certificate, and having reported saltwater product purchases in eligible Counties

(Bay, Gulf, Franklin, or Wakulla) both before (not to exceed three years) and one year after

Hurricane Michael made landfall in Florida. The saltwater product purchases must have

been reported in FWC’s trip ticket system or the Florida Department of Agriculture and

Consumer Services (FDACS) shellfish processing plant production report system. Applicants

will be required to provide their business’ revenue both before (not to exceed three years)

and after the storm on an October 10 – October 9 timeframe.

Additionally, the applicant will be able to request financial relief from incurred costs

associated with uninsured vessel and/or facility damage. Vessel reimbursement

qualifications are still being determined and will be done in consultation with the NOAA

Fisheries Southeast Regional Office. Facility damage reimbursement will be done at a 50%

match for uninsured repair made to facilities from October 11, 2018 – December 31, 2019

and will only be eligible for applicants whose facility has been inspected by FDACS.

Applicants would need to certify that reimbursements would be made on uninsured

damages or improvements to the facility or equipment; and would need to supply proof of

costs of repairs or improvements. Applicants would also have to certify that they have

received no other governmental financial assistance, except government loans, for the

repair or improvement to their facility. Applicants will be required to attest to the accuracy

of the information they provide on the application and declaring that they were financially

affected as a commercial wholesale dealer by Hurricane Michael. FWC will index loss

revenues based on trip tickets sales submitted by the wholesale dealers. Applications will be

mailed to entities using the active mailing address on file with the FWC License and

Permitting database and advertised for a one-month period. If the applicant has an email

address on file with FWC, they will be notified by email when the application has been

mailed. Applicants will be allowed to submit their application either electronically or by

mail. A postmarked deadline will be utilized to provide a fair submission process. While the

application submission window is open applicants will be able to contact FWC regarding any

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questions regarding the project.

Individual payouts will be calculated based on total losses (revenue indexed from trip ticket

sales, vessel damage, facility damage) identified from applicants. Revenue losses will be

calculated based on the decrease in trip ticket sales before the storm, not to exceed three

years, compared to the one year after the storm. Payments will be made on a pro-rated

basis, based on the amount of funds available for this project.

Direct Payouts to Licensed Charter/For-Hire Businesses-$1,513,917

Charter Fishing Business Revenue Loss



Applicant resided in Bay, Gulf, Franklin, or Wakulla County during storm


Applicant had a valid Charter License at time of storm FWC will qualify based on information in licensing system

Applicant had loss of revenue after the storm as compared to up to a three year average before the storm

Income tax forms for up to two years after the storm and three years prior to the storm will be available upon request. These records will be maintained for at least three years after payment from FWC.

Losses in revenues were the result of the storm Applicant will self-certify

Charter Fishing Business Vessel Damage



Applicant resided in Bay, Gulf, Franklin, or Wakulla County during storm


Applicant had a valid Charter License at time of storm FWC will qualify based on information in licensing system

Vessel damage was due to storm Applicant will self-certify




This direct payout program is proposed for charter captains to ensure continued viability of this

industry. For-hire insured and uninsured damages to vessels/facilities were estimated to be

$9.2 million, while loss in revenue was estimated to be $2.7 million. The charter fishing industry

is an important economic component of many communities, providing access to fishing

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opportunities for tourists and residents. Many of these businesses were disrupted because of

the storm, and direct payouts to these captains will help ensure their continued service to

recreational fishers.

Direct payouts are proposed to be made to minimize the impact that Hurricane Michael may

have had on licensed charter captains’ revenues to help ensure that they can continue to

provide their services to recreational fishers in Florida in the future. Applications will be sent to

all licensed charter holders who were registered in Bay, Franklin, Gulf or Wakulla County and

have current addresses on file between October 2017 to October 2018. Applicants must

provide their revenue generated from their charter business both before (not to exceed three

years) and one year after the storm on an October 10 – October 9 timeframe. Applicants will be

required to attest to the accuracy of the information they provide on the application and

declaring that they were financially affected as a charter/for-hire business by Hurricane

Michael, as well as certifying that they will produce documents, such as income tax forms, for

the time period specified if requested by FWC and/or NOAA for up to three years after

receiving payment.

Additionally, the applicant will be able to request financial relief from incurred costs associated

with uninsured vessels. Vessel reimbursement qualifications are still being determined and will

be done in consultation with the NOAA Fisheries Southeast Regional Office. Applications will be

mailed to entities using the active mailing address on file with the FWC License and Permitting

database, derived originally from the Bay, Franklin, Gulf and Wakulla County Tax Collector’s

Offices, and advertised for a one-month period. If the applicant has an email address on file

with FWC, they will be notified by email when the application has been mailed. Applicants will

be allowed to submit their application either electronically or by mail. A postmarked deadline

will be utilized to provide a fair submission process. While the application submission window is

open applicants will be able to contact FWC regarding any questions regarding the project. This

project relies on truthful income-related information being provided by the applicants.

Therefore, the application will clearly state that the applicant must be prepared to show proof

of the charter-generated income they attested to on their application, such as tax return

documents, if FWC and/or NOAA requests such information.

Individual payouts will be calculated based on total losses identified from applicants.

Payments will be made on a pro-rated basis, based on the amount of funds available for this

project.

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Marina Infrastructure-$1,055,926

Marina Infrastructure Damage


Marina must be located in Bay, Gulf, Franklin, or Wakulla County No documentation needed

Marina must have received damage during storm Applicant will self-certify




Access to fishing from marinas is important to Florida’s fishing economy. As Hurricane Michael

made landfall in Florida, public fishing access infrastructure at marinas was damaged. In Bay

County, some infrastructure suffered a complete loss. Private entities that manage this

infrastructure have requested assistance in repairing or rebuilding crucial infrastructure,

allowing for normal operations to continue. In many cases, other means of recovery have been

denied or have failed, causing these operations to be totally or partially inactive. Estimated

damage to the infrastructure outlined is estimated to be at least $8.3 million.

This program is proposed to reimburse marina operators for up to a 50% match for uninsured

repair and improvements made to facilities from October 10, 2018 through December 31, 2019.

Successful grant applicants will be those with physical addresses within Bay, Franklin, Gulf, or

Wakulla County. Mailing address information for marinas will be queried with the assistance of

the four Counties. Applicants would need to certify that reimbursements would be made on

uninsured damages or improvements to the facility or equipment; and would need to supply

proof of costs of repairs or improvements, as well as be able to produce such documents for

these facilities if requested by FWC and/or NOAA for up to three years after receiving payment.

Applicants would also have to certify that they have received no other governmental financial

assistance, except government loans for the repair or improvement to their facility. Payments

will be made on a pro-rated basis, based on the amount of funds available for this project. A

team of FWC employees would be utilized to evaluate grantee eligibility.

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Direct Payouts for Shellfish Aquaculturists-$826,930

Crop Loss Revenue Reimbursement and Equipment Cost-Share Program-Administered by the Florida Department of Agriculture and Consumer Services


Applicant had a valid Aquaculture Certificate of Registration at time of storm

No documentation needed

Applicant currently possesses a valid Aquaculture Certificate of Registration (FY20-21)


Applicant possesses a State-Owned Sovereignty Submerged Land Aquaculture Lease or Authorized User Acknowledgement for a parcel located in Gulf, Bay, Franklin or Wakulla counties.


Applicant completed a 2018 Internal Audit of a State-Owned Sovereignty Submerged Land Aquaculture Lease


Applicants, possessing an Inperpetuity lease or a certified shellfish hatchery or nursery, provide revenue loss documentation.

U.S. Department of Treasury, Internal Revenue Service annual income tax return (Form 1040) for 2018 and up to five years before and one year after the storm.

Applicant incurred crop losses due to the storm. Applicant will self-certify

Applicant possessed an active United States Department of Agriculture Noninsured Crop Disaster Assistance Program (NAP) policy

Applicant will self-certify

This project will be coordinated with the Florida Department of Agriculture and Consumer

Services through a contract with FWC. A crop loss revenue reimbursement program is

proposed to provide economic recovery of the marine aquaculture industry in Bay, Franklin,

Gulf, and Wakulla counties which was heavily impacted by Hurricane Michael. Based on a

Hurricane Michael damage assessment survey conducted in January 2019 by the Florida

Department of Agriculture and Consumer Services Division of Aquaculture (FDACS), 82%

certified shellfish farmers in those counties sustained an average direct loss of $76,800 per

leaseholder, with 93% of damages due to crop loss. The timing of the hurricane was

especially damaging for the shellfish farms due the bi-annual crop cycle of oyster farms in

the Florida panhandle which have mainly, high-value market-ready product during October.

In addition, the revenue loss was especially damaging for this new industry in the process of

building production, where a majority of farms were less than 3-years old and an entire

growing season of revenue was lost. While equipment losses were only 7% of total

damages, this figure does not account for labor investment required to retrieve, clean, and

reinstall displaced gear, lines, anchors and markers.

This program is proposed to pay shellfish leaseholders for crop losses incurred due to Hurricane Michael. Applications will be sent to all entities who have valid Aquaculture Certificates of Registration who meet initial eligibility requirements, which includes holding a current, holding an Aquaculture Submerged Land Lease or Authorized User Acknowledgement with FDACS at

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the time of Hurricane Michael (FY18-19) and currently (FY20-21) for the same parcel, and incompletion of a 2018 Internal Audit of an Existing Sovereignty Submerged Land Shellfish Aquaculture Lease, which is required for all bottom and water column leaseholders and includes planting of shellfish products along with valid receipts. In perpetuity leaseholders and shellfish nurseries and hatcheries must have held an Aquaculture Certificate of Registration at the time of Hurricane Michael and must hold a current, valid Aquaculture Certificate of Registration, provide cultch planting and/or sales receipts and demonstrate a decrease in revenues in 2019, compared to the previous three years in lieu of the 2018 audit which isn’t required for this lease or farm type. Applications will be mailed to entities using the active mailing address on file within the FDACS Submerged Land Leasing database and advertised for a one-month period. If the applicant has an email address on file with FDACS, they will also be notified by email when the application has been mailed. Applicants will be allowed to submit their application either electronically or by mail. A postmarked deadline will be utilized to provide a fair submission process. Individual reimbursements for eligible shellfish aquaculture farmers will be calculated as

follows. Applicants will be reimbursed at a proportional loss value of the total funding

amount. Each lease’s loss value will be determined by crops planted minus crops harvested,

as reported in the 2018 Audits, following deductions for average mortality and per piece

value, as established by the U.S. Department of Agriculture Farm Service Agency (USDA FSA)

Noninsured Crop Disaster Assistant Program (NAP) policy during the 2019 federal crop year.

While most shellfish farmers in Bay, Gulf, Franklin and Wakulla counties were either

ineligible or not covered by NAP insurance, some farmers did receive NAP and/or Wildfire

and Hurricane Indemnity Program (WHIP) payments. FDACS will coordinate with USDA FSA

to verify individual NAP and WHIP claims to ensure that any insurance payments are

deducted from individual payouts. Applicants will be required to attest that they

experienced crop loss due to Hurricane Michael and disclose any NAP policy claims. A team

of FDACS staff will be utilized to evaluate applicant eligibility and FWC will mail the checks

for this direct payout program.

hurricane michael fishery disaster proposal · this proposal is submitted for the funding available...

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