DMR Proposals on Groundfish Relief Funds

 

Based on the last meeting and input provided throughout the process, the DMR is proposing two strawman options for distribution of the groundfish relief funds provided to Maine under “Bin 2,” which allocated $636,000 to Maine. The DMR is asking that the options be reviewed that feedback be provided to them.

Under these proposals the Bin 2 funds would focus relief on the vessels who remain active into the future, and ensure that more money goes to captains and crew as well as the permit holders.

The next (and likely final) meeting regarding the use of these funds is scheduled to be in Portland on September 4 at 3 pm and will be held at the Portland Fish Exchange

We look forward to hearing from you with any feedback you may have.

Meredith, 207-624-6502

Meredith.Mendelson@maine.gov

STRAWMAN OPTIONS FOR
GROUNDFISH DISASTER FUNDS
(STATE OF MAINE DISCRETIONARY FUNDS = $636,000)

 

OPTION #1:

• All funds (minus 2% administrative cost assessed by DMR) are dispersed to the Portland Fish Exchange under a sub-contract.

• PFE uses funds to rebate landings/handling fees for landings of NE Multispecies stocks to the PFE by vessels with limited access NE Multispecies permits landing in Maine.

• No administrative charge will be assessed by PFE (per PFE Board letter to DMR dated 8/1/2014).

• Fee rebates will begin on May 1, 2015.

• Funds available are expected to be sufficient to provide rebates for approximately 18 months.

• If members of a particular sector or association want to direct their rebates to that entity, this agreement will be a private contract between PFE and that entity’s members and will not involve the DMR. Funds directed in this way will not be restricted by the terms of the grant.

OPTION #2:

• Sub-grant made to Maine Coast Community Sector (MCCS) to be used for limited purposes related to purchase of additional permits. Amount will be based on landings/handling fees for multispecies stocks by MCCS vessels in Fishing Year 2013 (the declared disaster year) as a percentage of total landings. Use of funds provided under this sub-grant will be restricted and may only be used for the purchase of permits, and permits purchased using these funds may also have use restrictions imposed by the terms of the sub-grant.

Sub-grant issues to be addressed by MCCS in application to DMR by September 15:

• What is anticipated timeline for permit purchases, and plan to raise additional capital necessary? DMR proposes a restriction of one year from date of sub-grant. Should permit purchase not close prior to the close of that year, DMR proposes that funds allocated to MCCS will either 1) revert to DMR and be directed to fee rebate program via PFE or 2) be redirected to alternative agreed upon usage (which must be defined in MCCS sub-grant proposal to DMR).

• Detailed budget of for expenditures under sub-grant must be provided to DMR prior to award.

• If MCCS members sold to fewer than three dealers in 2013, confidentiality waivers will be required for use of their data to generate the fees and allocation of funds.

• All remaining funds (minus 2.5% administrative cost assessed by DMR) are dispersed to the Portland Fish Exchange under a sub-contract.

• PFE uses funds to rebate landing/handling fees for active permits in the Common Pool, Northeast Coastal Communities Sector, Sustainable Harvest Sector and other limited access NE Multispecies permit holders so long as they are not eligible for Bin #2 funds distributed to other states. Under this scenario, vessels in the MCCS will not be eligible for fee rebates.

• No administrative charge assessed by PFE (per PFE Board letter to DMR dated 8/11/2014).

• Fee rebates for all non-MCCS permit holders will begin on May 1, 2015.

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