These conclusions led Rob Southwick, an expert in market research, statistics and economics, specializing in sportfishing and outdoor recreation markets, to conclude, “Any assumption that costs can be fully or even partially passed along to customers without decreasing participation is simply wrong. If boat operators were in a position to charge higher prices, just like any business, they already would have. Without a doubt, price increases will harm CPF vessel operators and likewise the local communities that depend on them.”

• In stark contrast to CARB’s estimate of $2.1 million for a new vessel, a reputable shipbuilder provided bids for the two most common passenger boats found off California’s coast.  The bids revealed costs of $4.6 million to construct a 65 ft one-day vessel (Class 1, suitable for day fishing trips, whale watching and SCUBA excursions) and $5.7 million for an 80 ft multi-day vessel (Class 2).  These boats would be expected to conform to CARB’s proposed rule, if new engines and equipment are certified.
• According to the CPA report, based on the operating budgets of current H&M landing boats, to break even, businesses replacing a Class 1 boat would have to increase prices for a one-day fishing trip from $180 to $542 (201% increase) and a new Class 2 boat that provides multi-day fishing trips would have to increase its prices from $200 to $394 (97% increase). These prices are significantly higher than the 19% to 27% increases anticipated by CARB.
• Communities of lower economic means stand to be most impacted by higher passenger ticket prices.
• The CPA’s analysis underscored the financing challenges. The CPA notes that 20% - 40% is a commonly required down payment within the marine industry. Considering existing non-compliant boats will have no resale value in California and the glut of boats to be sold will depress markets outside of California, businesses will find it difficult to sell their current boats and secure down payments on new vessels, thus raising the risk for banks.  Banks would have to demand higher down payments and/or higher rates. Without feasible financing, many vessel operators will shut down.  
• Californians spend nearly $1 billion annually to access California’s 174 commercial U.S. Coast Guard inspected sportfishing boats and support local jobs, and nearly 10% of California’s marine anglers are out-of-state residents, an additional source of visitor spending for coastal communities.
• Higher passenger ticket prices would impact fishing participation rates, and as fishing license sales and revenue decline so would funding for state fisheries and conservation programs.