80_FR_42885 80 FR 42747 - Fisheries of the Northeastern United States; Atlantic Surfclam and Ocean Quahog Fisheries

80 FR 42747 - Fisheries of the Northeastern United States; Atlantic Surfclam and Ocean Quahog Fisheries

DEPARTMENT OF COMMERCE
National Oceanic and Atmospheric Administration

Federal Register Volume 80, Issue 138 (July 20, 2015)

Page Range42747-42752
FR Document2015-17678

This final rule implements an information collection program for the Atlantic surfclam and ocean quahog fisheries. The information collection program is intended to obtain more detailed information about individuals and businesses that hold fishery quota allocation in these individual transferable quota fisheries. This action is necessary to ensure that the Mid-Atlantic Fishery Management Council has the information needed to develop a future management action intended to establish an excessive share cap in these fisheries.

Federal Register, Volume 80 Issue 138 (Monday, July 20, 2015)
[Federal Register Volume 80, Number 138 (Monday, July 20, 2015)]
[Rules and Regulations]
[Pages 42747-42752]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-17678]


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DEPARTMENT OF COMMERCE

National Oceanic and Atmospheric Administration

50 CFR Part 648

[Docket No. 130822745-5611-02]
RIN 0648-BD64


Fisheries of the Northeastern United States; Atlantic Surfclam 
and Ocean Quahog Fisheries

AGENCY: National Marine Fisheries Service (NMFS), National Oceanic and 
Atmospheric Administration (NOAA), Commerce.

ACTION: Final rule.

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SUMMARY: This final rule implements an information collection program 
for the Atlantic surfclam and ocean quahog fisheries. The information 
collection program is intended to obtain more detailed information 
about individuals and businesses that hold fishery quota allocation in 
these individual transferable quota fisheries. This action is necessary 
to ensure that the Mid-Atlantic Fishery Management Council has the 
information needed to develop a future management action intended to 
establish an excessive share cap in these fisheries.

DATES: Effective January 1, 2016.

ADDRESSES: Written comments regarding the burden-hour estimates or 
other aspects of the collection-of-information requirements contained 
in this final rule may be submitted to the Greater Atlantic Regional 
Fisheries Office and by email to [email protected], or fax to 
(202) 395-7285.

FOR FURTHER INFORMATION CONTACT: Douglas Potts, Fishery Policy Analyst, 
(978) 281-9341.

SUPPLEMENTARY INFORMATION:

Background

    Section 402(a)(1) of the Magnuson-Stevens Fishery Conservation and 
Management Act (Magnuson-Stevens Act) authorizes the Secretary of 
Commerce to implement an information collection program if a fishery 
management council determines that additional information would be 
beneficial for developing, implementing, or revising a fishery 
management plan (FMP). The Mid-Atlantic Fishery Management Council 
formally requested that NMFS implement an information collection 
program in the Atlantic surfclam and ocean quahog individual 
transferable quota (ITQ) fisheries. The purpose of this information 
collection is to better

[[Page 42748]]

identify individuals who hold or control ITQ allocation in these 
fisheries. The Council will use the information collected to inform the 
development of a future management action intended to establish an 
excessive share cap as part of the Council's Surfclam/Ocean Quahog FMP.
    Currently, NMFS collects only basic information about the 
individuals or businesses that hold surfclam and ocean quahog ITQ 
allocations. This information is collected at the time that an entity 
first acquires ITQ allocation and is not routinely verified or updated. 
The information collection program implemented in this action is 
intended to identify the specific individuals who have an ownership 
interest in surfclam or ocean quahog ITQ allocation through a 
corporation, partnership, or other business entity, or control the use 
of ITQ allocation through the use of long-term contracts or other 
agreements. This action also ensures that the ownership information on 
file remains up to date by modifying the procedures for receiving and 
maintaining an ITQ permit.
    This action also makes minor corrections and clarifications to the 
surfclam and ocean quahog regulations.

Final Measures

    Full details and background on the measures in this rule are 
explained in the proposed rule published on August 7, 2014 (79 FR 
46233), and are not repeated here.

1. Surfclam/Ocean Quahog ITQ Permit Annual Renewal

    This final rule revises the regulations at Sec.  648.74 to change 
the validity period for ITQ Permits. ITQ permits will now expire at the 
end of the year and need to be renewed annually. This annual renewal 
requirement better ensures that ITQ-related information is kept 
current. Expired permits are eligible for renewal until the last day of 
the year for which they are needed. Permits not renewed by the deadline 
are considered voluntarily relinquished and will have their quota share 
and eligibility permanently revoked. This is commonly referred to as a 
``renew or lose'' provision. To renew a permit, an annual ITQ permit 
application must be completed. The ITQ permit application form requires 
information such as the applicant's name, address, telephone number, 
and date of birth (or taxpayer identification number for businesses). 
ITQ permit holders are also required to verify that they are eligible 
to own a U.S. Coast Guard documented vessel, as defined under 46 U.S.C. 
12103(b), which serves as a check of U.S. citizenship or corporate 
control by U.S. citizens.

2. New Surfclam/Ocean Quahog ITQ Ownership Form

    This final rule implements a new ITQ ownership form that must be 
submitted along with the ITQ permit application form for a permit to be 
issued. This form is being implemented to capture detailed ownership 
information, such as information on bank-held shares and identification 
of corporate officers, major shareholders, and partners as well as any 
immediate family members who also hold ITQ permits. Corporations or 
other business entities that hold an ITQ permit will be required to 
identify their corporate officers and all shareholders who have a 10-
percent or larger stake in the company.

3. ITQ Transfer Form Changes

    This action modifies the existing ITQ transfer form to collect more 
detailed financial information about transactions in which ITQ is 
transferred. Information about the allocation holder is removed, as 
that is now collected through the ITQ permit application and the ITQ 
ownership form. The ITQ transfer form now clarifies whether or not a 
permanent transfer of ITQ quota share includes all of the cage tags for 
the current fishing year. This action also adds additional questions to 
better understand the nature of the transfer. This includes a 
requirement to submit total price paid for the transfer, including any 
fees; broker fees paid, if applicable; whether the transfer is part of 
a long-term (more than 1 year) contract; if so, the duration of the 
contract and whether the price is fixed or flexible; and any other 
conditions on the transfer.

4. Regulatory Corrections and Clarifications

    This final rule revises the regulations at Sec.  648.74(a)(1)(i) to 
correct a cross reference to 46 U.S.C. 12103(b), which defines the 
persons or entities that are eligible to own a documented vessel. This 
rule also corrects several cross references in Sec.  648.14(j) to other 
sections of the regulations in part 648 pertaining to surfclam and 
ocean quahogs. Finally, the regulations at Sec.  648.74(b)(3) 
specifying when the Regional Administrator may deny a transfer of ITQ 
quota share or cage tags have been made more detailed and clear.
    The new permit requirements in this rule are effective with the 
start of the next fishing year on January 1, 2016. However, the new 
forms will be distributed in early fall to give ITQ permit holders 
ample time to complete and submit the forms in order to receive their 
2016 ITQ permits and 2016 cage tags before the start of the fishing 
year. Many ITQ shareholders choose to submit cage tags transfer 
requests in December, ahead of the new fishing year, so they can be 
processed and ready before January 1. We will continue to work to 
accommodate these requests for the industry.

Comments and Responses

    We published a proposed rule in the Federal Register on August 7, 
2014, and accepted public comments until September 8, 2014. After the 
comment period closed, the Council requested that we reopen the comment 
period to allow for additional public comment to be submitted after the 
proposed action was discussed at a Council meeting. In response, we 
published an announcement in the Federal Register on October 2, 2014 
(79 FR 59472), announcing that the comment period was reopened until 
October 17, 2014. Altogether, we received comments from 23 individuals. 
Nearly all of the comments received were from the surfclam and ocean 
quahog industry including dealers, processors, harvesters, and surfclam 
and ocean quahog consumer product producers and manufacturers. All of 
these comments generally opposed the information collection program, 
and raised very similar issues. Related comments have been combined in 
our summary of comments and responses below. Two comments received 
generally supported the program, but provided no supporting 
information. The Mid-Atlantic Fishery Management Council submitted a 
comment informing us of a motion that was made at the Council meeting 
on October 7, 2014, regarding the information collected on the ITQ 
transfer form.
    Comment 1: Numerous comments expressed concern that an excessive 
share cap is not necessary for these fisheries, and, therefore, there 
is no reason to collect additional information to help determine such 
caps.
    Response: Two sections of the Magnuson-Stevens Act address the need 
to prevent an individual or corporation from acquiring an excessive 
share of fishing privileges: National Standard 4 and section 
303A(c)(5)(D). Amendment 8 to the Atlantic Surfclam and Ocean Quahog 
FMP, which established the ITQ fishery in 1990, cited existing anti-
trust laws as being sufficient to meet the requirements of National 
Standard 4, ``that no particular individual, corporation, or other 
entity acquires an excessive share of such privileges.''

[[Page 42749]]

Section 303A was added to the Act by the Magnuson[hyphen]Stevens 
Fishery Conservation and Management Reauthorization Act of 2006. This 
section contains provisions and requirements for Limited Access 
Privilege Programs (LAPPS), which include ITQ programs. These added 
provisions include section 303A(c)(5)(D)(i), which requires LAPPs to 
ensure limited access privilege holders do not acquire an excessive 
share of the total limited access privileges in the program, by 
``establishing a maximum share, expressed as a percentage of the total 
limited access privileges, that a limited access privilege holder is 
permitted to hold, acquire, or use.'' Because the FMP does not 
currently include an excessive share cap expressed as a percentage of 
the total allocated quota, it is out of compliance with this provision 
of the Magnuson-Stevens Act.
    This information collection program is an important part of the 
Council's efforts to establish a cap that meets this requirement. See 
the response to Comment 2 for additional rationale for why this 
information collection is necessary.
    Comment 2: Several comments expressed concern that we are generally 
collecting too much information and that it is not necessary or 
applicable in helping determine excessive shares. These comments 
expressed concern that we should not collect this information because 
it involves business transactions that should be confidential.
    Response: We understand that this information collection includes 
more specific detail than is collected in other fisheries in the 
region. However, prior reports and analyses for these fisheries suggest 
this information is necessary and appropriate to determine current 
ownership and control of allocations in these fisheries. In the 
surfclam and ocean quahog fisheries, there is a series of complex 
corporate and business relationships involving control of quota shares. 
A 2002 GAO report on this ITQ program suggested that NMFS did not 
gather sufficient ownership information to appropriately characterize 
the amount of consolidation in the fishery. In 2011, NMFS and the MAFMC 
contracted an economic consulting firm to examine and report on 
potential excessive share caps in this fishery (Mitchell, Peterson and 
Willig. Recommendations for Excessive Share Limits in the SCOQ 
Fisheries. May 3, 2011), and subsequently convened a panel of 
independent reviewers to evaluate the report (Summary of Findings by 
the Center for Independent Experts Regarding Setting Excessive Share 
Limits for ITQ Fisheries; www.nefsc.noaa.gov/publications/crd/crd1122/
). In a series of public meetings, a special Council workgroup met and 
considered the recommendations of these reports, reviewed how ownership 
information is collected in other fisheries around the country, 
reviewed the information currently collected in this fishery, and then 
devised a suite of data elements that would provide the information the 
Council would need when developing an excessive shares cap. These 
recommendations were detailed in a white paper that was considered and 
approved by the Council. Without the additional information this action 
will collect, the Council may not have the information necessary to 
make informed decisions on excessive share caps. When the Council 
ultimately establishes an excessive shares cap, it is possible that not 
all of these data elements will be necessary to effectively monitor the 
cap. At that time, this collection will be reevaluated, and data 
elements may be added, removed, or modified to address the specific 
information needed to monitor the cap.
    We agree that some business transactions are confidential. Pursuant 
to section 402(b) of the Magnuson-Stevens Act, information submitted in 
compliance with the Act is confidential, and would not be distributed 
or made publicly available. These confidentiality requirements of the 
Magnuson-Stevens Act apply to information collected as a result of this 
action. Therefore, the collected information may be used to conduct 
analysis by NMFS, or Council staff who are subject to confidentiality 
agreements. Results of this analysis could only be presented in an 
aggregate form, which protects any confidential information.
    Comment 3: Nearly all of the comments received against this action 
were opposed to the provision that ITQ quota share could be considered 
permanently relinquished if the shareholder's ITQ permit is not renewed 
before the end of the fishing year. These comments explain that banks 
and other lending institutions hold much of the ITQ quota share in the 
surfclam and ocean quahog fisheries. Commenters expressed concern that 
lenders could view the potential loss of quota share as an unacceptable 
investment risk. Commenters stated this could result in the banks 
leaving the industry and discontinuing investment in the Atlantic 
surfclam and ocean quahog fisheries. These commenters further asserted 
that it is too easy to make an administrative error of not renewing a 
permit which would result in unfair loss of valuable ITQ quota share.
    Response: NMFS understands that there are concerns with losing the 
fishing rights associated with ITQ quota share if a permit is not 
renewed. However, based on the comments received, there appears to be a 
misunderstanding of how this provision would function. While a number 
of these comments seemed to be under the impression the rights to a 
permit would be lost immediately following the permit's expiration 
date, this is not the case. To clarify, an ITQ permit and quota share 
are not lost the day the permit expires. Although the permit cannot be 
used to harvest fish after it has expired, the applicant is eligible to 
renew the permit for the entire following year before the permit would 
be considered surrendered. For example, if an ITQ permit expires on 
December 31, 2015, the applicant has until December 31, 2016, to renew 
the permit before it is considered surrendered. It would not be 
surrendered when it expires on December 31, 2015.
    All limited access vessel permits in the Greater Atlantic Region 
have been subject to these renew-or-lose provisions since they were 
implemented in the mid-1990s. The Golden Tilefish Individual Fishing 
Quota program has operated under renew-or-lose provisions for tilefish 
quota share since the program's inception in 2010. If a permit is not 
renewed, NMFS makes multiple attempts to notify the permit holder of 
the need to renew the permit well before the deadline. Permanent loss 
of fishing rights has occurred for these other fisheries. However, loss 
of the right to a permit is rarely due to a clerical error such as 
simply forgetting to renew a permit. We believe such instances are 
infrequent given the system that provides a year to renew after permit 
expiration and multiple reminders prior to loss of fishing rights.
    Further, the ITQ permit must be current and valid in order for ITQ 
to be traded or for fishing activity to occur using ITQ. In 2014, there 
were 41 ocean quahog ITQ permits with quota share and 70 surfclam ITQ 
permits with quota share. Of these 111 ITQ permits, all but 15 
transferred allocation, used cage tags to land clams, or otherwise 
participated in the fishery in a manner that will now require a current 
valid permit. The majority of those permits not used in 2014, were used 
in the preceding two years. Therefore, it is likely that most if not 
all permits will be renewed each year in order for ITQ shareholders to 
continue participating in the fishery as they have in previous years. 
As a result,

[[Page 42750]]

there would be little to no threat of an ITQ shareholder permanently 
losing his/her quota share.
    Certainly, lenders will continue to evaluate investment risk as it 
relates to these fisheries. We believe it unlikely that investors will 
find the ``renew or lose'' provision to be an additional risk that 
would preclude investment.
    Comment 4: The Council submitted a comment informing us of a motion 
approved at the October 2014 Council meeting to request we remove much 
of the information to be collected on the ITQ transfer form.
    Response: While the motion was supported by a majority of the 
Council members present, the vote was not unanimous and there were 
members who expressed a strong interest in having this information 
available when they consider an excessive shares cap. Removing these 
fields from the ITQ transfer form would be contrary to the 
recommendations in the white paper prepared by the Council's special 
workgroup and the 2011 report Economic Guidelines for Excessive Share 
Limits in the Surfclam and Ocean Quahog Fisheries. Currently, no 
information is collected on the financial aspects of allocation 
transfers in the surfclam and ocean quahog ITQ fishery. Similar 
programs around the country routinely collect information about the 
price paid for allocation. This information can provide valuable 
insight into the market for quota or long-term contracts and agreements 
that would not otherwise be apparent. These additional details about 
transfers can illuminate situations where individuals or companies 
exert effective control over ITQ allocation, even if they do not 
directly hold the quota share.
    As mentioned above in the response to Comment 2, we anticipate that 
the specific data elements will be reevaluated and revised when an 
excessive share cap is implemented. For these reasons, we continue to 
support the inclusion of all of the proposed elements of this 
information collection program, at least for the short term. Therefore, 
this action implements the ITQ transfer form as described in the 
proposed rule.

Changes From Proposed Rule

    There are no substantive changes from the measures described in the 
proposed rule. The preamble to the proposed rule explained that banks 
holding quota share as collateral on a loan would not need to provide 
as much detail about ownership if the borrower maintains a valid ITQ 
permit and the bank could only transfer quota share or cage tags to the 
borrower. However, the regulatory text in the proposed rule did not 
fully reflect these requirements. These requirements have been added at 
Sec.  648.74(a)(1)(ii)(C) and (b)(3) in this final rule to reflect 
these provisions as they were described in the preamble of the proposed 
rule.

Classification

    The Administrator, Greater Atlantic Region, NMFS, determined that 
this action is necessary for the conservation and management of the 
Atlantic surfclam and ocean quahog fishery and that it is consistent 
with the Magnuson-Stevens Fishery Conservation and Management Act and 
other applicable laws.
    This final rule has been determined to be not significant for 
purposes of Executive Order 12866.
    The Chief Counsel for Regulation of the Department of Commerce 
certified to the Chief Counsel for Advocacy of the Small Business 
Administration during the proposed rule stage that this action would 
not have a significant economic impact on a substantial number of small 
entities. The factual basis for this certification was published in the 
proposed rule and is not repeated here. No comments were received 
regarding this certification. As a result, a regulatory flexibility 
analysis was not required and none was prepared.
    This final rule contains a change to a collection-of-information 
requirement subject to the Paperwork Reduction Act (PRA) and which has 
been approved by the Office of Management and Budget (OMB) under OMB 
Control Number 0648-0240: Northeast Region Surfclam and Ocean Quahog 
Individual Transferable Quota (ITQ) Administration. The public 
reporting burden is estimated to average 5 minutes per response for the 
application for surfclam/ocean quahog ITQ permit; 60 minutes per 
response for new entrants completing the surfclam/ocean quahog ITQ 
ownership form and to average 5 minutes per response when the form is 
pre-filled for renewing entities; and the application to transfer 
surfclam/ocean quahog ITQ are estimated to average 5 minutes per 
response, including the time for reviewing instructions, searching 
existing data sources, gathering and maintaining the data needed, and 
completing and reviewing the collection of information. The costs 
burden associated for all of the requirements is $.49 per submission 
for postage. Send comments regarding these burden estimates or any 
other aspect of this data collection, including suggestions for 
reducing the burden, to NMFS (see ADDRESSES) and by email to 
[email protected], or fax to 202-395-7285.
    Notwithstanding any other provision of the law, no person is 
required to respond to, and no person shall be subject to 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.

List of Subjects in 50 CFR Part 648

    Fisheries, Fishing, Reporting and recordkeeping requirements.

    Dated: July 14, 2015.
Samuel D. Rauch III,
Deputy Assistant Administrator for Regulatory Programs, National Marine 
Fisheries Service.

    For the reasons set out in the preamble, 50 CFR part 648 is amended 
as follows:

PART 648--FISHERIES OF THE NORTHEASTERN UNITED STATES

0
1. The authority citation for part 648 continues to read as follows:

    Authority: 16 U.S.C. 1801 et seq.


0
2. In Sec.  648.14, revise paragraphs (j)(1)(ii), (j)(2)(i), (j)(3)(v), 
(j)(3)(vi), (j)(5)(ii), (j)(5)(iv), (j)(5)(v), (j)(6)(ii), and 
(j)(6)(iii) to read as follows:


Sec.  648.14  Prohibitions.

* * * * *
    (j) * * *
    (1) * * *
    (ii) Shuck surfclams or ocean quahogs harvested in or from the EEZ 
at sea, unless permitted by the Regional Administrator under the terms 
of Sec.  648.75.
* * * * *
    (2) Transfer and purchase. (i) Receive for a commercial purpose 
other than solely for transport on land, surfclams or ocean quahogs 
harvested in or from the EEZ, whether or not they are landed under an 
allocation under Sec.  648.74, unless issued a dealer/processor permit 
under this part.
* * * * *
    (3) * * *
    (v) Possess an empty cage to which a cage tag required by Sec.  
648.77 is affixed, or possess any cage that does not contain surfclams 
or ocean quahogs and to which a cage tag required by Sec.  648.77 is 
affixed.
    (vi) Land or possess, after offloading, any cage holding surfclams 
or ocean quahogs without a cage tag or tags required by Sec.  648.77, 
unless the person can demonstrate the inapplicability of the 
presumptions set forth in Sec.  648.77(h).
* * * * *

[[Page 42751]]

    (5) * * *
    (ii) Land unshucked surfclams and ocean quahogs harvested in or 
from the EEZ within the Maine mahogany quahog zone in containers other 
than cages from vessels capable of carrying cages unless, with respect 
to ocean quahogs, the vessel has been issued a Maine mahogany quahog 
permit under this part and is not fishing for an individual allocation 
of quahogs under Sec.  648.74.
* * * * *
    (iv) Offload unshucked ocean quahogs harvested in or from the EEZ 
within the Maine mahogany quahog zone from vessels not capable of 
carrying cages, other than directly into cages, unless the vessel has 
been issued a Maine mahogany quahog permit under this part and is not 
fishing for an individual allocation of quahogs under Sec.  648.74.
    (v) Land or possess ocean quahogs harvested in or from the EEZ 
within the Maine mahogany quahog zone after the effective date 
published in the Federal Register notifying participants that Maine 
mahogany quahog quota is no longer available for the respective fishing 
year, unless the vessel is fishing for an individual allocation of 
ocean quahogs under Sec.  648.74.
    (6) * * *
    (ii) Surfclams or ocean quahogs landed from a trip for which 
notification was provided under Sec.  648.15(b) or Sec.  648.74(b) are 
deemed to have been harvested in the EEZ and count against the 
individual's annual allocation, unless the vessel has a valid Maine 
mahogany quahog permit issued pursuant to Sec.  648.4(a)(4)(i) and is 
not fishing for an individual allocation under Sec.  648.74.
    (iii) Surfclams or ocean quahogs found in cages without a valid 
state tag are deemed to have been harvested in the EEZ and are deemed 
to be part of an individual's allocation, unless the vessel has a valid 
Maine mahogany quahog permit issued pursuant to Sec.  648.4(a)(4)(i) 
and is not fishing for an individual allocation under Sec.  648.74; or, 
unless the preponderance of available evidence demonstrates that he/she 
has surrendered his/her surfclam and ocean quahog permit issued under 
Sec.  648.4 and he/she conducted fishing operations exclusively within 
waters under the jurisdiction of any state. Surfclams and ocean quahogs 
in cages with a Federal tag or tags, issued and still valid pursuant to 
this part, affixed thereto are deemed to have been harvested by the 
individual allocation holder to whom the tags were issued or 
transferred under Sec.  648.74 or Sec.  648.77(b).
* * * * *

0
3. Revise Sec.  648.74 to read as follows:


Sec.  648.74  Individual Transferable Quota (ITQ) Program.

    (a) Annual individual allocations. Each fishing year, the Regional 
Administrator shall determine the initial annual allocation of 
surfclams and ocean quahogs for the next fishing year for each ITQ 
permit holder holding ITQ quota share pursuant to the requirements of 
this section. For each species, the initial allocation for the next 
fishing year is calculated by multiplying the quota share percentage 
held by each ITQ permit holder as of the last day of the previous 
fishing year in which quota shareholders are permitted to permanently 
transfer quota share percentage pursuant to paragraph (b) of this 
section (i.e., October 15 of every year), by the quota specified by the 
Regional Administrator pursuant to Sec.  648.72. The total number of 
bushels of annual allocation shall be divided by 32 to determine the 
appropriate number of cage tags to be issued or acquired under Sec.  
648.77. Amounts of annual allocation of 0.5 cages or smaller created by 
this division shall be rounded downward to the nearest whole number, 
and amounts of annual allocation greater than 0.5 cages created by this 
division shall be rounded upward to the nearest whole number, so that 
annual allocations are specified in whole cages.
    (1) Surfclam and ocean quahog ITQ permits. Surfclam and ocean 
quahog ITQ allocations shall be issued in the form of annual ITQ 
permits. The ITQ permit shall specify the quota share percentage held 
by the ITQ permit holder and the annual allocation in cages and cage 
tags for each species.
    (i) Eligibility. In order to be eligible to hold a surfclam or 
ocean quahog ITQ permit, an individual must be eligible to own a 
documented vessel under the terms of 46 U.S.C. 12103(b).
    (ii) Application--(A) General. Applicants for a surfclam or ocean 
quahog ITQ permit under this section must submit a completed ITQ permit 
application and a completed ITQ ownership form on the appropriate forms 
obtained from NMFS. The ITQ permit application and ITQ ownership form 
must be filled out completely and signed by the applicant. The Regional 
Administrator will notify the applicant of any deficiency in the 
application.
    (B) Renewal applications. Applications to renew a surfclam or ocean 
quahog ITQ permit must be received by November 1 to be processed in 
time for permits to be issued by December 15, as specified in paragraph 
(a)(1)(iii) of this section. Renewal applications received after this 
date may not be approved, and a new permit may not be issued before the 
start of the next fishing year. An ITQ permit holder must renew his/her 
ITQ permit(s) on an annual basis by submitting an application and an 
ownership form for such permit prior to the end of the fishing year for 
which the permit is required. Failure to renew a surfclam or ocean 
quahog ITQ permit in any fishing year will result in any surfclam or 
ocean quahog ITQ quota share held by that ITQ permit holder to be 
considered abandoned and relinquished as specified in paragraph 
(a)(1)(ix) of this section.
    (C) Lenders Holding ITQ Quota Share as Collateral. A bank or other 
lender that holds ITQ quota share as collateral on a loan may be 
allowed to provide less detailed information on the ITQ ownership form 
under the following conditions.
    (1) The lender certifies that the ITQ quota share is held solely as 
collateral on a loan and the lender does not exert any control over the 
use of the annual allocation of cage tags.
    (2) The lender identifies the borrower, and the borrower maintains 
a valid ITQ permit including all required ownership information.
    (3) The lender may only transfer quota share or cage tags to the 
identified borrower. The borrower could then transfer the quota share 
or cage tags to another party, if desired.
    (iii) Issuance. Except as provided in subpart D of 15 CFR part 904, 
and provided an application for such permit is submitted by November 1, 
as specified in paragraph (a)(1)(ii)(B) of this section, NMFS shall 
issue annual ITQ permits on or before December 15, to allow allocation 
owners to purchase cage tags from a vendor specified by the Regional 
Administrator pursuant to Sec.  648.77(b).
    (iv) Duration. An ITQ permit is valid through December 31 of each 
fishing year unless it is suspended, modified, or revoked pursuant to 
15 CFR part 904, or revised due to a transfer of all or part of the ITQ 
quota share or cage tag allocation under paragraph (b) of this section.
    (v) Alteration. An ITQ permit that is altered, erased, or mutilated 
is invalid.
    (vi) Replacement. The Regional Administrator may issue a 
replacement permit upon written application of the annual ITQ permit 
holder.
    (vii) Transfer. The annual ITQ permit is valid only for the person 
to whom it is issued. All or part of the ITQ quota share or the cage 
tag allocation specified in the ITQ permit may be transferred in 
accordance with paragraph (b) of this section.

[[Page 42752]]

    (viii) Fee. The Regional Administrator may, after publication of a 
fee notification in the Federal Register, charge a permit fee before 
issuance of the permit to recover administrative expenses. Failure to 
pay the fee will preclude issuance of the permit.
    (ix) Abandonment or voluntary relinquishment. Any ITQ permit that 
is voluntarily relinquished to the Regional Administrator, or deemed to 
have been voluntarily relinquished for failure to renew in accordance 
with paragraph (a)(1)(ii) of this section, shall not be reissued or 
renewed in a subsequent year, except as specified in paragraph 
(a)(1)(x) of this section.
    (x) Transitional grace period. A surfclam or ocean quahog quota 
share holder who does not submit a complete application for an ITQ 
permit before the end of the 2016 fishing year, may be granted a grace 
period of up to one year to complete the initial application process, 
and be issued an ITQ permit, before the quota share is considered 
permanently relinquished. If an individual is issued a 2016 ITQ permit, 
but fails to renew that ITQ permit before the end of the 2017 fishing 
year, the Regional Administrator may allow a grace period until no 
later than July 1, 2018, to complete the renewal process and retain the 
permit. A permit holder may not be issued cage tags or transfer quota 
share until a valid ITQ permit is issued. Failure to complete the ITQ 
permit application or renewal process, and be issued a valid ITQ permit 
before the end of such a grace period would result in the ITQ permit 
and any associated ITQ quota share being permanently forfeit.
    (2) [Reserved]
    (b) Transfers--(1) Quota share percentage. Subject to the approval 
of the Regional Administrator, part or all of a quota share percentage 
may be transferred in the year in which the transfer is made, to any 
person or entity with a valid ITQ permit under paragraph (a) of this 
section. Approval of a transfer by the Regional Administrator and for a 
new ITQ permit reflecting that transfer may be requested by submitting 
a written application for approval of the transfer and for issuance of 
a new ITQ permit to the Regional Administrator at least 10 days before 
the date on which the applicant desires the transfer to be effective, 
in the form of a completed transfer form supplied by the Regional 
Administrator. The transfer is not effective until the new holder 
receives a new or revised ITQ permit from the Regional Administrator 
reflecting the new quota share percentage. An application for transfer 
may not be made between October 15 and December 31 of each year.
    (2) Cage tags. Cage tags issued pursuant to Sec.  648.77 may be 
transferred at any time, and in any amount subject to the restrictions 
and procedure specified in paragraph (b)(1) of this section; provided 
that application for such cage tag transfers may be made at any time 
before December 10 of each year. The transfer is effective upon the 
receipt by the transferee of written authorization from the Regional 
Administrator.
    (3) Denial of ITQ transfer application. The Regional Administrator 
may reject an application to transfer surfclam or ocean quahog ITQ 
quota share or cage tags for the following reasons: The application is 
incomplete; the transferor or transferee does not possess a valid 
surfclam or ocean quahog ITQ permit for the appropriate species; the 
transfer is not allowed under paragraph (a)(1)(ii)(C)(3) of this 
section; the transferor's or transferee's surfclam or ocean quahog ITQ 
permit has been sanctioned pursuant to an enforcement proceeding under 
15 CFR part 904; or any other failure to meet the requirements of this 
subpart. Upon denial of an application to transfer ITQ allocation, the 
Regional Administrator shall send a letter to the applicant describing 
the reason(s) for the denial. The decision by the Regional 
Administrator is the final decision of the Department of Commerce; 
there is no opportunity for an administrative appeal.

[FR Doc. 2015-17678 Filed 7-17-15; 8:45 am]
 BILLING CODE 3510-22-P



                                                                    Federal Register / Vol. 80, No. 138 / Monday, July 20, 2015 / Rules and Regulations                                         42747

                                                information on how to access the e-PMN                      (d) EPA will review the information                DEPARTMENT OF COMMERCE
                                                software.                                                submitted by the manufacturer
                                                *    *    *     *    *                                   (including importer) or processor under               National Oceanic and Atmospheric
                                                                                                         this paragraph to determine whether                   Administration
                                                PART 725—[AMENDED]                                       that person has shown a bona fide intent
                                                                                                         to manufacture (including import) or                  50 CFR Part 648
                                                ■ 10. The authority citation for part 725                process the microorganism. If necessary,              [Docket No. 130822745–5611–02]
                                                continues to read as follows:
                                                                                                         EPA will compare this information to
                                                  Authority: 15 U.S.C. 2604, 2607, 2613 and                                                                    RIN 0648–BD64
                                                                                                         the information requested for the
                                                2625.                                                    confidential microorganism under                      Fisheries of the Northeastern United
                                                ■ 11. In § 725.15, revise paragraphs                     § 725.85(b)(3)(iii).                                  States; Atlantic Surfclam and Ocean
                                                (a)(2), (b)(2) introductory text, (b)(2)(ii)                                                                   Quahog Fisheries
                                                                                                            (e) In order for EPA to make a
                                                and (iii), (d), (e), (f), and (g) to read as
                                                follows:                                                 conclusive determination of the                       AGENCY:  National Marine Fisheries
                                                                                                         microorganism’s status, the proposed                  Service (NMFS), National Oceanic and
                                                § 725.15 Determining applicability when                  manufacturer (including importer) or                  Atmospheric Administration (NOAA),
                                                microorganism identity or use is                         processor must show a bona fide intent                Commerce.
                                                confidential or uncertain.                               to manufacture (including import) or                  ACTION: Final rule.
                                                   (a) * * *                                             process the microorganism and must
                                                   (2) Uncertain microorganism identity.                 provide sufficient information to                     SUMMARY:    This final rule implements an
                                                The current state of scientific                          establish identity unambiguously. After               information collection program for the
                                                knowledge leads to some imprecision in                   sufficient information has been                       Atlantic surfclam and ocean quahog
                                                describing a microorganism. As the state                 provided, EPA will inform the                         fisheries. The information collection
                                                of knowledge increases, EPA will be                      manufacturer (including importer) or                  program is intended to obtain more
                                                developing policies to determine                         processor whether the microorganism is                detailed information about individuals
                                                whether one microorganism is                             subject to this part and if so, which                 and businesses that hold fishery quota
                                                equivalent to another. Persons intending                                                                       allocation in these individual
                                                                                                         sections of this part apply.
                                                to conduct activities involving                                                                                transferable quota fisheries. This action
                                                microorganisms may inquire of EPA                           (f) If the microorganism is found on               is necessary to ensure that the Mid-
                                                whether the microorganisms they intend                   the confidential version of the                       Atlantic Fishery Management Council
                                                to manufacture (including import) or                     Inventory, in § 725.239 or in subpart M               has the information needed to develop
                                                process are equivalent to specific                       of this part, EPA will notify the                     a future management action intended to
                                                microorganisms described on the                          person(s) who originally reported the                 establish an excessive share cap in these
                                                Inventory, in § 725.239, or in subpart M                 microorganism that another person                     fisheries.
                                                of this part.                                            (whose identity will remain                           DATES: Effective January 1, 2016.
                                                   (b) * * *                                             confidential, if so requested) has                    ADDRESSES: Written comments
                                                   (2) To establish a bona fide intent to                demonstrated a bona fide intent to                    regarding the burden-hour estimates or
                                                manufacture (including import) or                        manufacture (including import) or                     other aspects of the collection-of-
                                                process a microorganism, the person                      process the microorganism and                         information requirements contained in
                                                who proposes to manufacture (including                   therefore was told that the                           this final rule may be submitted to the
                                                import) or process the microorganism                     microorganism is on the Inventory, in                 Greater Atlantic Regional Fisheries
                                                must submit the request to EPA via                       § 725.239, or in subpart M of this part.              Office and by email to OIRA_
                                                CDX. Prior to submission to EPA via                                                                            Submission@omb.eop.gov, or fax to
                                                CDX, such bona fide intents to                              (g) A disclosure to a person with a
                                                                                                         bona fide intent to manufacture                       (202) 395–7285.
                                                manufacture (including import) or                                                                              FOR FURTHER INFORMATION CONTACT:
                                                process must be generated and                            (including import) or process a
                                                                                                         particular microorganism that the                     Douglas Potts, Fishery Policy Analyst,
                                                completed using e-PMN software. See                                                                            (978) 281–9341.
                                                40 CFR 720.40(a)(2)(ii) for information                  microorganism is on the Inventory, in
                                                                                                         § 725.239, or in subpart M of this part               SUPPLEMENTARY INFORMATION:
                                                on how to access the e-PMN software.
                                                A bona fide intent to manufacture                        will not be considered a public                       Background
                                                (including import) or process must                       disclosure of confidential business
                                                                                                                                                                 Section 402(a)(1) of the Magnuson-
                                                contain the following information:                       information under section 14 of the Act.              Stevens Fishery Conservation and
                                                *       *    *     *    *                                *       *     *    *    *                             Management Act (Magnuson-Stevens
                                                   (ii) A signed statement certifying that               [FR Doc. 2015–17737 Filed 7–17–15; 8:45 am]           Act) authorizes the Secretary of
                                                the submitter intends to manufacture                     BILLING CODE 6560–50–P                                Commerce to implement an information
                                                (including import) or process the                                                                              collection program if a fishery
                                                microorganism for commercial                                                                                   management council determines that
                                                purposes.                                                                                                      additional information would be
                                                   (iii) A description of research and                                                                         beneficial for developing,
                                                development activities conducted with                                                                          implementing, or revising a fishery
                                                the microorganism to date,                                                                                     management plan (FMP). The Mid-
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                                                demonstration of the submitter’s ability                                                                       Atlantic Fishery Management Council
                                                to produce or obtain the microorganism                                                                         formally requested that NMFS
                                                from a foreign manufacturer, and the                                                                           implement an information collection
                                                purpose for which the person will                                                                              program in the Atlantic surfclam and
                                                manufacture (including import) or                                                                              ocean quahog individual transferable
                                                process the microorganism.                                                                                     quota (ITQ) fisheries. The purpose of
                                                *       *    *     *    *                                                                                      this information collection is to better


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                                                42748               Federal Register / Vol. 80, No. 138 / Monday, July 20, 2015 / Rules and Regulations

                                                identify individuals who hold or control                 citizenship or corporate control by U.S.              permit holders ample time to complete
                                                ITQ allocation in these fisheries. The                   citizens.                                             and submit the forms in order to receive
                                                Council will use the information                                                                               their 2016 ITQ permits and 2016 cage
                                                                                                         2. New Surfclam/Ocean Quahog ITQ
                                                collected to inform the development of                                                                         tags before the start of the fishing year.
                                                                                                         Ownership Form
                                                a future management action intended to                                                                         Many ITQ shareholders choose to
                                                establish an excessive share cap as part                    This final rule implements a new ITQ               submit cage tags transfer requests in
                                                of the Council’s Surfclam/Ocean                          ownership form that must be submitted                 December, ahead of the new fishing
                                                Quahog FMP.                                              along with the ITQ permit application                 year, so they can be processed and ready
                                                   Currently, NMFS collects only basic                   form for a permit to be issued. This form             before January 1. We will continue to
                                                information about the individuals or                     is being implemented to capture                       work to accommodate these requests for
                                                businesses that hold surfclam and ocean                  detailed ownership information, such as               the industry.
                                                quahog ITQ allocations. This                             information on bank-held shares and
                                                information is collected at the time that                identification of corporate officers,                 Comments and Responses
                                                an entity first acquires ITQ allocation                  major shareholders, and partners as well                 We published a proposed rule in the
                                                and is not routinely verified or updated.                as any immediate family members who                   Federal Register on August 7, 2014, and
                                                The information collection program                       also hold ITQ permits. Corporations or                accepted public comments until
                                                implemented in this action is intended                   other business entities that hold an ITQ              September 8, 2014. After the comment
                                                to identify the specific individuals who                 permit will be required to identify their             period closed, the Council requested
                                                have an ownership interest in surfclam                   corporate officers and all shareholders               that we reopen the comment period to
                                                or ocean quahog ITQ allocation through                   who have a 10-percent or larger stake in              allow for additional public comment to
                                                a corporation, partnership, or other                     the company.                                          be submitted after the proposed action
                                                business entity, or control the use of                                                                         was discussed at a Council meeting. In
                                                                                                         3. ITQ Transfer Form Changes                          response, we published an
                                                ITQ allocation through the use of long-
                                                term contracts or other agreements. This                    This action modifies the existing ITQ              announcement in the Federal Register
                                                action also ensures that the ownership                   transfer form to collect more detailed                on October 2, 2014 (79 FR 59472),
                                                information on file remains up to date                   financial information about transactions              announcing that the comment period
                                                by modifying the procedures for                          in which ITQ is transferred. Information              was reopened until October 17, 2014.
                                                receiving and maintaining an ITQ                         about the allocation holder is removed,               Altogether, we received comments from
                                                permit.                                                  as that is now collected through the ITQ              23 individuals. Nearly all of the
                                                   This action also makes minor                          permit application and the ITQ                        comments received were from the
                                                corrections and clarifications to the                    ownership form. The ITQ transfer form                 surfclam and ocean quahog industry
                                                surfclam and ocean quahog regulations.                   now clarifies whether or not a                        including dealers, processors,
                                                                                                         permanent transfer of ITQ quota share                 harvesters, and surfclam and ocean
                                                Final Measures                                           includes all of the cage tags for the                 quahog consumer product producers
                                                   Full details and background on the                    current fishing year. This action also                and manufacturers. All of these
                                                measures in this rule are explained in                   adds additional questions to better                   comments generally opposed the
                                                the proposed rule published on August                    understand the nature of the transfer.                information collection program, and
                                                7, 2014 (79 FR 46233), and are not                       This includes a requirement to submit                 raised very similar issues. Related
                                                repeated here.                                           total price paid for the transfer,                    comments have been combined in our
                                                1. Surfclam/Ocean Quahog ITQ Permit                      including any fees; broker fees paid, if              summary of comments and responses
                                                                                                         applicable; whether the transfer is part              below. Two comments received
                                                Annual Renewal
                                                                                                         of a long-term (more than 1 year)                     generally supported the program, but
                                                   This final rule revises the regulations               contract; if so, the duration of the                  provided no supporting information.
                                                at § 648.74 to change the validity period                contract and whether the price is fixed               The Mid-Atlantic Fishery Management
                                                for ITQ Permits. ITQ permits will now                    or flexible; and any other conditions on              Council submitted a comment informing
                                                expire at the end of the year and need                   the transfer.                                         us of a motion that was made at the
                                                to be renewed annually. This annual                                                                            Council meeting on October 7, 2014,
                                                renewal requirement better ensures that                  4. Regulatory Corrections and                         regarding the information collected on
                                                ITQ-related information is kept current.                 Clarifications                                        the ITQ transfer form.
                                                Expired permits are eligible for renewal                    This final rule revises the regulations               Comment 1: Numerous comments
                                                until the last day of the year for which                 at § 648.74(a)(1)(i) to correct a cross               expressed concern that an excessive
                                                they are needed. Permits not renewed                     reference to 46 U.S.C. 12103(b), which                share cap is not necessary for these
                                                by the deadline are considered                           defines the persons or entities that are              fisheries, and, therefore, there is no
                                                voluntarily relinquished and will have                   eligible to own a documented vessel.                  reason to collect additional information
                                                their quota share and eligibility                        This rule also corrects several cross                 to help determine such caps.
                                                permanently revoked. This is commonly                    references in § 648.14(j) to other                       Response: Two sections of the
                                                referred to as a ‘‘renew or lose’’                       sections of the regulations in part 648               Magnuson-Stevens Act address the need
                                                provision. To renew a permit, an annual                  pertaining to surfclam and ocean                      to prevent an individual or corporation
                                                ITQ permit application must be                           quahogs. Finally, the regulations at                  from acquiring an excessive share of
                                                completed. The ITQ permit application                    § 648.74(b)(3) specifying when the                    fishing privileges: National Standard 4
                                                form requires information such as the                    Regional Administrator may deny a                     and section 303A(c)(5)(D). Amendment
                                                applicant’s name, address, telephone                     transfer of ITQ quota share or cage tags              8 to the Atlantic Surfclam and Ocean
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                                                number, and date of birth (or taxpayer                   have been made more detailed and                      Quahog FMP, which established the ITQ
                                                identification number for businesses).                   clear.                                                fishery in 1990, cited existing anti-trust
                                                ITQ permit holders are also required to                     The new permit requirements in this                laws as being sufficient to meet the
                                                verify that they are eligible to own a                   rule are effective with the start of the              requirements of National Standard 4,
                                                U.S. Coast Guard documented vessel, as                   next fishing year on January 1, 2016.                 ‘‘that no particular individual,
                                                defined under 46 U.S.C. 12103(b),                        However, the new forms will be                        corporation, or other entity acquires an
                                                which serves as a check of U.S.                          distributed in early fall to give ITQ                 excessive share of such privileges.’’


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                                                                    Federal Register / Vol. 80, No. 138 / Monday, July 20, 2015 / Rules and Regulations                                           42749

                                                Section 303A was added to the Act by                     Share Limits for ITQ Fisheries;                       permit which would result in unfair loss
                                                the Magnuson-Stevens Fishery                             www.nefsc.noaa.gov/publications/crd/                  of valuable ITQ quota share.
                                                Conservation and Management                              crd1122/). In a series of public meetings,               Response: NMFS understands that
                                                Reauthorization Act of 2006. This                        a special Council workgroup met and                   there are concerns with losing the
                                                section contains provisions and                          considered the recommendations of                     fishing rights associated with ITQ quota
                                                requirements for Limited Access                          these reports, reviewed how ownership                 share if a permit is not renewed.
                                                Privilege Programs (LAPPS), which                        information is collected in other                     However, based on the comments
                                                include ITQ programs. These added                        fisheries around the country, reviewed                received, there appears to be a
                                                provisions include section                               the information currently collected in                misunderstanding of how this provision
                                                303A(c)(5)(D)(i), which requires LAPPs                   this fishery, and then devised a suite of             would function. While a number of
                                                to ensure limited access privilege                       data elements that would provide the                  these comments seemed to be under the
                                                holders do not acquire an excessive                      information the Council would need                    impression the rights to a permit would
                                                share of the total limited access                        when developing an excessive shares                   be lost immediately following the
                                                privileges in the program, by                            cap. These recommendations were                       permit’s expiration date, this is not the
                                                ‘‘establishing a maximum share,                          detailed in a white paper that was                    case. To clarify, an ITQ permit and
                                                expressed as a percentage of the total                   considered and approved by the                        quota share are not lost the day the
                                                limited access privileges, that a limited                Council. Without the additional                       permit expires. Although the permit
                                                access privilege holder is permitted to                  information this action will collect, the             cannot be used to harvest fish after it
                                                hold, acquire, or use.’’ Because the FMP                 Council may not have the information                  has expired, the applicant is eligible to
                                                does not currently include an excessive                  necessary to make informed decisions                  renew the permit for the entire
                                                share cap expressed as a percentage of                   on excessive share caps. When the                     following year before the permit would
                                                the total allocated quota, it is out of                  Council ultimately establishes an                     be considered surrendered. For
                                                compliance with this provision of the                    excessive shares cap, it is possible that             example, if an ITQ permit expires on
                                                Magnuson-Stevens Act.                                    not all of these data elements will be                December 31, 2015, the applicant has
                                                   This information collection program                   necessary to effectively monitor the cap.             until December 31, 2016, to renew the
                                                is an important part of the Council’s                    At that time, this collection will be                 permit before it is considered
                                                efforts to establish a cap that meets this               reevaluated, and data elements may be                 surrendered. It would not be
                                                requirement. See the response to                         added, removed, or modified to address                surrendered when it expires on
                                                Comment 2 for additional rationale for                   the specific information needed to                    December 31, 2015.
                                                why this information collection is                       monitor the cap.                                         All limited access vessel permits in
                                                necessary.                                                                                                     the Greater Atlantic Region have been
                                                                                                            We agree that some business                        subject to these renew-or-lose
                                                   Comment 2: Several comments
                                                expressed concern that we are generally                  transactions are confidential. Pursuant               provisions since they were implemented
                                                collecting too much information and                      to section 402(b) of the Magnuson-                    in the mid-1990s. The Golden Tilefish
                                                that it is not necessary or applicable in                Stevens Act, information submitted in                 Individual Fishing Quota program has
                                                helping determine excessive shares.                      compliance with the Act is confidential,              operated under renew-or-lose provisions
                                                These comments expressed concern that                    and would not be distributed or made                  for tilefish quota share since the
                                                we should not collect this information                   publicly available. These confidentiality             program’s inception in 2010. If a permit
                                                because it involves business                             requirements of the Magnuson-Stevens                  is not renewed, NMFS makes multiple
                                                transactions that should be confidential.                Act apply to information collected as a               attempts to notify the permit holder of
                                                   Response: We understand that this                     result of this action. Therefore, the                 the need to renew the permit well before
                                                information collection includes more                     collected information may be used to                  the deadline. Permanent loss of fishing
                                                specific detail than is collected in other               conduct analysis by NMFS, or Council                  rights has occurred for these other
                                                fisheries in the region. However, prior                  staff who are subject to confidentiality              fisheries. However, loss of the right to
                                                reports and analyses for these fisheries                 agreements. Results of this analysis                  a permit is rarely due to a clerical error
                                                suggest this information is necessary                    could only be presented in an aggregate               such as simply forgetting to renew a
                                                and appropriate to determine current                     form, which protects any confidential                 permit. We believe such instances are
                                                ownership and control of allocations in                  information.                                          infrequent given the system that
                                                these fisheries. In the surfclam and                        Comment 3: Nearly all of the                       provides a year to renew after permit
                                                ocean quahog fisheries, there is a series                comments received against this action                 expiration and multiple reminders prior
                                                of complex corporate and business                        were opposed to the provision that ITQ                to loss of fishing rights.
                                                relationships involving control of quota                 quota share could be considered                          Further, the ITQ permit must be
                                                shares. A 2002 GAO report on this ITQ                    permanently relinquished if the                       current and valid in order for ITQ to be
                                                program suggested that NMFS did not                      shareholder’s ITQ permit is not renewed               traded or for fishing activity to occur
                                                gather sufficient ownership information                  before the end of the fishing year. These             using ITQ. In 2014, there were 41 ocean
                                                to appropriately characterize the                        comments explain that banks and other                 quahog ITQ permits with quota share
                                                amount of consolidation in the fishery.                  lending institutions hold much of the                 and 70 surfclam ITQ permits with quota
                                                In 2011, NMFS and the MAFMC                              ITQ quota share in the surfclam and                   share. Of these 111 ITQ permits, all but
                                                contracted an economic consulting firm                   ocean quahog fisheries. Commenters                    15 transferred allocation, used cage tags
                                                to examine and report on potential                       expressed concern that lenders could                  to land clams, or otherwise participated
                                                excessive share caps in this fishery                     view the potential loss of quota share as             in the fishery in a manner that will now
                                                (Mitchell, Peterson and Willig.                          an unacceptable investment risk.                      require a current valid permit. The
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                                                Recommendations for Excessive Share                      Commenters stated this could result in                majority of those permits not used in
                                                Limits in the SCOQ Fisheries. May 3,                     the banks leaving the industry and                    2014, were used in the preceding two
                                                2011), and subsequently convened a                       discontinuing investment in the                       years. Therefore, it is likely that most if
                                                panel of independent reviewers to                        Atlantic surfclam and ocean quahog                    not all permits will be renewed each
                                                evaluate the report (Summary of                          fisheries. These commenters further                   year in order for ITQ shareholders to
                                                Findings by the Center for Independent                   asserted that it is too easy to make an               continue participating in the fishery as
                                                Experts Regarding Setting Excessive                      administrative error of not renewing a                they have in previous years. As a result,


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                                                42750               Federal Register / Vol. 80, No. 138 / Monday, July 20, 2015 / Rules and Regulations

                                                there would be little to no threat of an                 text in the proposed rule did not fully               Submission@omb.eop.gov, or fax to
                                                ITQ shareholder permanently losing                       reflect these requirements. These                     202–395–7285.
                                                his/her quota share.                                     requirements have been added at                         Notwithstanding any other provision
                                                   Certainly, lenders will continue to                   § 648.74(a)(1)(ii)(C) and (b)(3) in this              of the law, no person is required to
                                                evaluate investment risk as it relates to                final rule to reflect these provisions as             respond to, and no person shall be
                                                these fisheries. We believe it unlikely                  they were described in the preamble of                subject to penalty for failure to comply
                                                that investors will find the ‘‘renew or                  the proposed rule.                                    with, a collection of information subject
                                                lose’’ provision to be an additional risk                                                                      to the requirements of the PRA, unless
                                                that would preclude investment.                          Classification                                        that collection of information displays a
                                                   Comment 4: The Council submitted a                      The Administrator, Greater Atlantic                 currently valid OMB control number.
                                                comment informing us of a motion                         Region, NMFS, determined that this
                                                approved at the October 2014 Council                     action is necessary for the conservation              List of Subjects in 50 CFR Part 648
                                                meeting to request we remove much of                     and management of the Atlantic                          Fisheries, Fishing, Reporting and
                                                the information to be collected on the                   surfclam and ocean quahog fishery and                 recordkeeping requirements.
                                                ITQ transfer form.                                       that it is consistent with the Magnuson-                Dated: July 14, 2015.
                                                   Response: While the motion was                        Stevens Fishery Conservation and                      Samuel D. Rauch III,
                                                supported by a majority of the Council                   Management Act and other applicable                   Deputy Assistant Administrator for
                                                members present, the vote was not                        laws.                                                 Regulatory Programs, National Marine
                                                unanimous and there were members                           This final rule has been determined to              Fisheries Service.
                                                who expressed a strong interest in                       be not significant for purposes of
                                                having this information available when                   Executive Order 12866.                                  For the reasons set out in the
                                                they consider an excessive shares cap.                     The Chief Counsel for Regulation of                 preamble, 50 CFR part 648 is amended
                                                Removing these fields from the ITQ                       the Department of Commerce certified                  as follows:
                                                transfer form would be contrary to the                   to the Chief Counsel for Advocacy of the
                                                                                                                                                               PART 648—FISHERIES OF THE
                                                recommendations in the white paper                       Small Business Administration during
                                                                                                                                                               NORTHEASTERN UNITED STATES
                                                prepared by the Council’s special                        the proposed rule stage that this action
                                                workgroup and the 2011 report                            would not have a significant economic                 ■ 1. The authority citation for part 648
                                                Economic Guidelines for Excessive                        impact on a substantial number of small               continues to read as follows:
                                                Share Limits in the Surfclam and Ocean                   entities. The factual basis for this
                                                                                                                                                                   Authority: 16 U.S.C. 1801 et seq.
                                                Quahog Fisheries. Currently, no                          certification was published in the
                                                information is collected on the financial                proposed rule and is not repeated here.               ■  2. In § 648.14, revise paragraphs
                                                aspects of allocation transfers in the                   No comments were received regarding                   (j)(1)(ii), (j)(2)(i), (j)(3)(v), (j)(3)(vi),
                                                surfclam and ocean quahog ITQ fishery.                   this certification. As a result, a                    (j)(5)(ii), (j)(5)(iv), (j)(5)(v), (j)(6)(ii), and
                                                Similar programs around the country                      regulatory flexibility analysis was not               (j)(6)(iii) to read as follows:
                                                routinely collect information about the                  required and none was prepared.
                                                                                                           This final rule contains a change to a              § 648.14    Prohibitions.
                                                price paid for allocation. This
                                                information can provide valuable                         collection-of-information requirement                 *       *    *    *    *
                                                insight into the market for quota or long-               subject to the Paperwork Reduction Act                   (j) * * *
                                                term contracts and agreements that                       (PRA) and which has been approved by                     (1) * * *
                                                                                                         the Office of Management and Budget                      (ii) Shuck surfclams or ocean quahogs
                                                would not otherwise be apparent. These
                                                                                                         (OMB) under OMB Control Number                        harvested in or from the EEZ at sea,
                                                additional details about transfers can
                                                                                                         0648–0240: Northeast Region Surfclam                  unless permitted by the Regional
                                                illuminate situations where individuals
                                                                                                         and Ocean Quahog Individual                           Administrator under the terms of
                                                or companies exert effective control
                                                                                                         Transferable Quota (ITQ)                              § 648.75.
                                                over ITQ allocation, even if they do not
                                                directly hold the quota share.                           Administration. The public reporting                  *       *    *    *    *
                                                   As mentioned above in the response                    burden is estimated to average 5                         (2) Transfer and purchase. (i) Receive
                                                to Comment 2, we anticipate that the                     minutes per response for the application              for a commercial purpose other than
                                                specific data elements will be                           for surfclam/ocean quahog ITQ permit;                 solely for transport on land, surfclams
                                                reevaluated and revised when an                          60 minutes per response for new                       or ocean quahogs harvested in or from
                                                excessive share cap is implemented. For                  entrants completing the surfclam/ocean                the EEZ, whether or not they are landed
                                                these reasons, we continue to support                    quahog ITQ ownership form and to                      under an allocation under § 648.74,
                                                the inclusion of all of the proposed                     average 5 minutes per response when                   unless issued a dealer/processor permit
                                                elements of this information collection                  the form is pre-filled for renewing                   under this part.
                                                program, at least for the short term.                    entities; and the application to transfer             *       *    *    *    *
                                                Therefore, this action implements the                    surfclam/ocean quahog ITQ are                            (3) * * *
                                                ITQ transfer form as described in the                    estimated to average 5 minutes per                       (v) Possess an empty cage to which a
                                                proposed rule.                                           response, including the time for                      cage tag required by § 648.77 is affixed,
                                                                                                         reviewing instructions, searching                     or possess any cage that does not
                                                Changes From Proposed Rule                               existing data sources, gathering and                  contain surfclams or ocean quahogs and
                                                  There are no substantive changes from                  maintaining the data needed, and                      to which a cage tag required by § 648.77
                                                the measures described in the proposed                   completing and reviewing the collection               is affixed.
                                                rule. The preamble to the proposed rule                  of information. The costs burden                         (vi) Land or possess, after offloading,
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                                                explained that banks holding quota                       associated for all of the requirements is             any cage holding surfclams or ocean
                                                share as collateral on a loan would not                  $.49 per submission for postage. Send                 quahogs without a cage tag or tags
                                                need to provide as much detail about                     comments regarding these burden                       required by § 648.77, unless the person
                                                ownership if the borrower maintains a                    estimates or any other aspect of this data            can demonstrate the inapplicability of
                                                valid ITQ permit and the bank could                      collection, including suggestions for                 the presumptions set forth in
                                                only transfer quota share or cage tags to                reducing the burden, to NMFS (see                     § 648.77(h).
                                                the borrower. However, the regulatory                    ADDRESSES) and by email to OIRA_                      *       *    *    *    *


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                                                                    Federal Register / Vol. 80, No. 138 / Monday, July 20, 2015 / Rules and Regulations                                           42751

                                                   (5) * * *                                             ■    3. Revise § 648.74 to read as follows:            not be approved, and a new permit may
                                                   (ii) Land unshucked surfclams and                                                                            not be issued before the start of the next
                                                ocean quahogs harvested in or from the                   § 648.74 Individual Transferable Quota                 fishing year. An ITQ permit holder must
                                                                                                         (ITQ) Program.
                                                EEZ within the Maine mahogany                                                                                   renew his/her ITQ permit(s) on an
                                                quahog zone in containers other than                       (a) Annual individual allocations.                   annual basis by submitting an
                                                cages from vessels capable of carrying                   Each fishing year, the Regional                        application and an ownership form for
                                                cages unless, with respect to ocean                      Administrator shall determine the                      such permit prior to the end of the
                                                quahogs, the vessel has been issued a                    initial annual allocation of surfclams                 fishing year for which the permit is
                                                Maine mahogany quahog permit under                       and ocean quahogs for the next fishing                 required. Failure to renew a surfclam or
                                                this part and is not fishing for an                      year for each ITQ permit holder holding                ocean quahog ITQ permit in any fishing
                                                individual allocation of quahogs under                   ITQ quota share pursuant to the                        year will result in any surfclam or ocean
                                                § 648.74.                                                requirements of this section. For each                 quahog ITQ quota share held by that
                                                                                                         species, the initial allocation for the                ITQ permit holder to be considered
                                                *       *    *    *     *                                next fishing year is calculated by
                                                   (iv) Offload unshucked ocean quahogs                                                                         abandoned and relinquished as
                                                                                                         multiplying the quota share percentage                 specified in paragraph (a)(1)(ix) of this
                                                harvested in or from the EEZ within the                  held by each ITQ permit holder as of the
                                                Maine mahogany quahog zone from                                                                                 section.
                                                                                                         last day of the previous fishing year in                  (C) Lenders Holding ITQ Quota Share
                                                vessels not capable of carrying cages,                   which quota shareholders are permitted
                                                other than directly into cages, unless the                                                                      as Collateral. A bank or other lender
                                                                                                         to permanently transfer quota share                    that holds ITQ quota share as collateral
                                                vessel has been issued a Maine                           percentage pursuant to paragraph (b) of
                                                mahogany quahog permit under this                                                                               on a loan may be allowed to provide
                                                                                                         this section (i.e., October 15 of every                less detailed information on the ITQ
                                                part and is not fishing for an individual                year), by the quota specified by the
                                                allocation of quahogs under § 648.74.                                                                           ownership form under the following
                                                                                                         Regional Administrator pursuant to                     conditions.
                                                   (v) Land or possess ocean quahogs                     § 648.72. The total number of bushels of
                                                harvested in or from the EEZ within the                                                                            (1) The lender certifies that the ITQ
                                                                                                         annual allocation shall be divided by 32               quota share is held solely as collateral
                                                Maine mahogany quahog zone after the                     to determine the appropriate number of
                                                effective date published in the Federal                                                                         on a loan and the lender does not exert
                                                                                                         cage tags to be issued or acquired under               any control over the use of the annual
                                                Register notifying participants that                     § 648.77. Amounts of annual allocation
                                                Maine mahogany quahog quota is no                                                                               allocation of cage tags.
                                                                                                         of 0.5 cages or smaller created by this                   (2) The lender identifies the borrower,
                                                longer available for the respective                      division shall be rounded downward to
                                                fishing year, unless the vessel is fishing                                                                      and the borrower maintains a valid ITQ
                                                                                                         the nearest whole number, and amounts                  permit including all required ownership
                                                for an individual allocation of ocean                    of annual allocation greater than 0.5
                                                quahogs under § 648.74.                                                                                         information.
                                                                                                         cages created by this division shall be                   (3) The lender may only transfer quota
                                                   (6) * * *
                                                                                                         rounded upward to the nearest whole                    share or cage tags to the identified
                                                   (ii) Surfclams or ocean quahogs
                                                                                                         number, so that annual allocations are                 borrower. The borrower could then
                                                landed from a trip for which notification
                                                                                                         specified in whole cages.                              transfer the quota share or cage tags to
                                                was provided under § 648.15(b) or                          (1) Surfclam and ocean quahog ITQ
                                                § 648.74(b) are deemed to have been                                                                             another party, if desired.
                                                                                                         permits. Surfclam and ocean quahog                        (iii) Issuance. Except as provided in
                                                harvested in the EEZ and count against                   ITQ allocations shall be issued in the                 subpart D of 15 CFR part 904, and
                                                the individual’s annual allocation,                      form of annual ITQ permits. The ITQ                    provided an application for such permit
                                                unless the vessel has a valid Maine                      permit shall specify the quota share                   is submitted by November 1, as
                                                mahogany quahog permit issued                            percentage held by the ITQ permit                      specified in paragraph (a)(1)(ii)(B) of
                                                pursuant to § 648.4(a)(4)(i) and is not                  holder and the annual allocation in                    this section, NMFS shall issue annual
                                                fishing for an individual allocation                     cages and cage tags for each species.                  ITQ permits on or before December 15,
                                                under § 648.74.                                            (i) Eligibility. In order to be eligible to          to allow allocation owners to purchase
                                                   (iii) Surfclams or ocean quahogs                      hold a surfclam or ocean quahog ITQ                    cage tags from a vendor specified by the
                                                found in cages without a valid state tag                 permit, an individual must be eligible to              Regional Administrator pursuant to
                                                are deemed to have been harvested in                     own a documented vessel under the                      § 648.77(b).
                                                the EEZ and are deemed to be part of an                  terms of 46 U.S.C. 12103(b).                              (iv) Duration. An ITQ permit is valid
                                                individual’s allocation, unless the vessel                  (ii) Application—(A) General.                       through December 31 of each fishing
                                                has a valid Maine mahogany quahog                        Applicants for a surfclam or ocean                     year unless it is suspended, modified, or
                                                permit issued pursuant to                                quahog ITQ permit under this section                   revoked pursuant to 15 CFR part 904, or
                                                § 648.4(a)(4)(i) and is not fishing for an               must submit a completed ITQ permit                     revised due to a transfer of all or part
                                                individual allocation under § 648.74; or,                application and a completed ITQ                        of the ITQ quota share or cage tag
                                                unless the preponderance of available                    ownership form on the appropriate                      allocation under paragraph (b) of this
                                                evidence demonstrates that he/she has                    forms obtained from NMFS. The ITQ                      section.
                                                surrendered his/her surfclam and ocean                   permit application and ITQ ownership                      (v) Alteration. An ITQ permit that is
                                                quahog permit issued under § 648.4 and                   form must be filled out completely and                 altered, erased, or mutilated is invalid.
                                                he/she conducted fishing operations                      signed by the applicant. The Regional                     (vi) Replacement. The Regional
                                                exclusively within waters under the                      Administrator will notify the applicant                Administrator may issue a replacement
                                                jurisdiction of any state. Surfclams and                 of any deficiency in the application.                  permit upon written application of the
                                                ocean quahogs in cages with a Federal                       (B) Renewal applications.                           annual ITQ permit holder.
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                                                tag or tags, issued and still valid                      Applications to renew a surfclam or                       (vii) Transfer. The annual ITQ permit
                                                pursuant to this part, affixed thereto are               ocean quahog ITQ permit must be                        is valid only for the person to whom it
                                                deemed to have been harvested by the                     received by November 1 to be processed                 is issued. All or part of the ITQ quota
                                                individual allocation holder to whom                     in time for permits to be issued by                    share or the cage tag allocation specified
                                                the tags were issued or transferred                      December 15, as specified in paragraph                 in the ITQ permit may be transferred in
                                                under § 648.74 or § 648.77(b).                           (a)(1)(iii) of this section. Renewal                   accordance with paragraph (b) of this
                                                *       *    *    *     *                                applications received after this date may              section.


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                                                42752               Federal Register / Vol. 80, No. 138 / Monday, July 20, 2015 / Rules and Regulations

                                                   (viii) Fee. The Regional Administrator                permit application or renewal process,                specified in paragraph (b)(1) of this
                                                may, after publication of a fee                          and be issued a valid ITQ permit before               section; provided that application for
                                                notification in the Federal Register,                    the end of such a grace period would                  such cage tag transfers may be made at
                                                charge a permit fee before issuance of                   result in the ITQ permit and any                      any time before December 10 of each
                                                the permit to recover administrative                     associated ITQ quota share being                      year. The transfer is effective upon the
                                                expenses. Failure to pay the fee will                    permanently forfeit.                                  receipt by the transferee of written
                                                preclude issuance of the permit.                            (2) [Reserved]                                     authorization from the Regional
                                                   (ix) Abandonment or voluntary                            (b) Transfers—(1) Quota share                      Administrator.
                                                relinquishment. Any ITQ permit that is                   percentage. Subject to the approval of
                                                                                                                                                                  (3) Denial of ITQ transfer application.
                                                voluntarily relinquished to the Regional                 the Regional Administrator, part or all
                                                                                                                                                               The Regional Administrator may reject
                                                Administrator, or deemed to have been                    of a quota share percentage may be
                                                                                                                                                               an application to transfer surfclam or
                                                voluntarily relinquished for failure to                  transferred in the year in which the
                                                                                                         transfer is made, to any person or entity             ocean quahog ITQ quota share or cage
                                                renew in accordance with paragraph
                                                                                                         with a valid ITQ permit under                         tags for the following reasons: The
                                                (a)(1)(ii) of this section, shall not be
                                                                                                         paragraph (a) of this section. Approval               application is incomplete; the transferor
                                                reissued or renewed in a subsequent
                                                                                                         of a transfer by the Regional                         or transferee does not possess a valid
                                                year, except as specified in paragraph
                                                                                                         Administrator and for a new ITQ permit                surfclam or ocean quahog ITQ permit
                                                (a)(1)(x) of this section.
                                                   (x) Transitional grace period. A                      reflecting that transfer may be requested             for the appropriate species; the transfer
                                                surfclam or ocean quahog quota share                     by submitting a written application for               is not allowed under paragraph
                                                holder who does not submit a complete                    approval of the transfer and for issuance             (a)(1)(ii)(C)(3) of this section; the
                                                application for an ITQ permit before the                 of a new ITQ permit to the Regional                   transferor’s or transferee’s surfclam or
                                                end of the 2016 fishing year, may be                     Administrator at least 10 days before the             ocean quahog ITQ permit has been
                                                granted a grace period of up to one year                 date on which the applicant desires the               sanctioned pursuant to an enforcement
                                                to complete the initial application                      transfer to be effective, in the form of a            proceeding under 15 CFR part 904; or
                                                process, and be issued an ITQ permit,                    completed transfer form supplied by the               any other failure to meet the
                                                before the quota share is considered                     Regional Administrator. The transfer is               requirements of this subpart. Upon
                                                permanently relinquished. If an                          not effective until the new holder                    denial of an application to transfer ITQ
                                                individual is issued a 2016 ITQ permit,                  receives a new or revised ITQ permit                  allocation, the Regional Administrator
                                                but fails to renew that ITQ permit before                from the Regional Administrator                       shall send a letter to the applicant
                                                the end of the 2017 fishing year, the                    reflecting the new quota share                        describing the reason(s) for the denial.
                                                Regional Administrator may allow a                       percentage. An application for transfer               The decision by the Regional
                                                grace period until no later than July 1,                 may not be made between October 15                    Administrator is the final decision of
                                                2018, to complete the renewal process                    and December 31 of each year.                         the Department of Commerce; there is
                                                and retain the permit. A permit holder                      (2) Cage tags. Cage tags issued                    no opportunity for an administrative
                                                may not be issued cage tags or transfer                  pursuant to § 648.77 may be transferred               appeal.
                                                quota share until a valid ITQ permit is                  at any time, and in any amount subject                [FR Doc. 2015–17678 Filed 7–17–15; 8:45 am]
                                                issued. Failure to complete the ITQ                      to the restrictions and procedure                     BILLING CODE 3510–22–P
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Document Created: 2015-12-15 12:58:03
Document Modified: 2015-12-15 12:58:03
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionRules and Regulations
ActionFinal rule.
DatesEffective January 1, 2016.
ContactDouglas Potts, Fishery Policy Analyst, (978) 281-9341.
FR Citation80 FR 42747 
RIN Number0648-BD64
CFR AssociatedFisheries; Fishing and Reporting and Recordkeeping Requirements

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