80 FR 46941 - Magnuson-Stevens Act Provisions; Refinance of the Pacific Coast Groundfish Fishing Capacity Reduction Loan; Pacific Coast Groundfish Federal Limited-Entry Trawl, Washington Coastal Dungeness Crab and California Pink Shrimp Fisheries; Refinanced Reduction Loan Terms and Industry Fee System

DEPARTMENT OF COMMERCE
National Oceanic and Atmospheric Administration

Federal Register Volume 80, Issue 151 (August 6, 2015)

Page Range		46941-46946
FR Document		2015-19261

NMFS is proposing regulations that would refinance the 30-year voluntary fishing capacity reduction loan implemented in 2004 into three separate loans, if approved through referenda, in the Pacific Coast Groundfish federal limited-entry trawl, Washington coastal Dungeness crab, and California pink shrimp fisheries (collectively known hereafter as the refinanced reduction fisheries). The refinanced loan, of up to $30 million, would establish a new industry fee system for future landings of the refinanced reduction fisheries. The 2015 National Defense Authorization Act authorized NMFS to refinance the loan and modify certain terms to extend the 30 year term to maturity to 45 years, change the interest rate to the current Treasury interest rate and, reduce the maximum repayment fee from five to three percent of ex-vessel value. If finalized, and with the receipt of an appropriation, NMFS proposes to refinance the single existing debt, which has been divided into seven loan subamounts, into three separate loans. NMFS would conduct three referenda as soon as practicable after publication of the final rule in each of the Pacific Coast Groundfish federal limited-entry trawl, Washington coastal Dungeness crab and California pink shrimp fisheries. If a referendum in one, two, or all three of the fisheries is successful, that fishery's current loan would be repaid in full and new loans in the amount of the principal and interest balance as of the date of funding would be issued per the terms in the 2015 National Defense Authorization Act. These terms include a new 45-year term to maturity, interest charged at a current Treasury interest rate, and a maximum repayment fee of 3 percent of ex- vessel value.

Federal Register, Volume 80 Issue 151 (Thursday, August 6, 2015)

[Federal Register Volume 80, Number 151 (Thursday, August 6, 2015)]
[Proposed Rules]
[Pages 46941-46946]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-19261]


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DEPARTMENT OF COMMERCE

National Oceanic and Atmospheric Administration

50 CFR Part 600

[Docket No. 150227192-5192-01]
RIN 0648-BE90


Magnuson-Stevens Act Provisions; Refinance of the Pacific Coast 
Groundfish Fishing Capacity Reduction Loan; Pacific Coast Groundfish 
Federal Limited-Entry Trawl, Washington Coastal Dungeness Crab and 
California Pink Shrimp Fisheries; Refinanced Reduction Loan Terms and 
Industry Fee System

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

[[Page 46942]]

Atmospheric Administration (NOAA), Commerce.

ACTION: Proposed rule; request for comments.

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SUMMARY: NMFS is proposing regulations that would refinance the 30-year 
voluntary fishing capacity reduction loan implemented in 2004 into 
three separate loans, if approved through referenda, in the Pacific 
Coast Groundfish federal limited-entry trawl, Washington coastal 
Dungeness crab, and California pink shrimp fisheries (collectively 
known hereafter as the refinanced reduction fisheries). The refinanced 
loan, of up to $30 million, would establish a new industry fee system 
for future landings of the refinanced reduction fisheries. The 2015 
National Defense Authorization Act authorized NMFS to refinance the 
loan and modify certain terms to extend the 30 year term to maturity to 
45 years, change the interest rate to the current Treasury interest 
rate and, reduce the maximum repayment fee from five to three percent 
of ex-vessel value. If finalized, and with the receipt of an 
appropriation, NMFS proposes to refinance the single existing debt, 
which has been divided into seven loan subamounts, into three separate 
loans. NMFS would conduct three referenda as soon as practicable after 
publication of the final rule in each of the Pacific Coast Groundfish 
federal limited-entry trawl, Washington coastal Dungeness crab and 
California pink shrimp fisheries. If a referendum in one, two, or all 
three of the fisheries is successful, that fishery's current loan would 
be repaid in full and new loans in the amount of the principal and 
interest balance as of the date of funding would be issued per the 
terms in the 2015 National Defense Authorization Act. These terms 
include a new 45-year term to maturity, interest charged at a current 
Treasury interest rate, and a maximum repayment fee of 3 percent of ex-
vessel value.

DATES: NMFS must receive comments by September 8, 2015.

ADDRESSES: You may submit comments on this document, identified by 
NOAA-NMFS-2015-0033, by either of the following methods:
    Electronic Submission: Submit all electronic public comments via 
the Federal e-Rulemaking Portal.
    1. Go to www.regulations.gov/#!docketDetail;D=NOAA-NMFS-2015-0033,
    2. Click the ``Comment Now!'' icon, complete the required fields
    3. Enter or attach your comments.

--OR--

    Mail: Submit written comments to Paul Marx, Chief, Financial 
Services Division, National Marine Fisheries Service, 1315 East-West 
Highway, Silver Spring, MD 20910-3282.
    Instructions: Comments sent by any other method, to any other 
address or individual, or received after the end of the comment period, 
may not be considered by NMFS. All comments received are a part of the 
public record and will generally be posted for public viewing on 
www.regulations.gov without change. All personal identifying 
information (e.g., name, address, etc.), confidential business 
information, or otherwise sensitive information submitted voluntarily 
by the sender will be publicly accessible. NMFS will accept anonymous 
comments (enter ``N/A'' in the required fields if you wish to remain 
anonymous). Copies of the Regulatory Impact Review and Initial 
Regulatory Flexibility Analysis (RIR/IFRA) prepared for this action are 
available from NMFS upon request (see FOR FURTHER INFORMATION CONTACT). 
NMFS has preliminarily determined that this action qualifies for a 
Categorical Exclusion from NEPA.

FOR FURTHER INFORMATION CONTACT: Paul Marx, Chief, Financial Services 
Division, National Marine Fisheries Service, (301) 427-8771.

SUPPLEMENTARY INFORMATION:

I. Background

    On February 20, 2003, Section 212 of Division B, Title II, of 
Public Law 108-7 (section 212) authorized a fishing capacity reduction 
program (program) for permits endorsed in seven fisheries: the limited-
entry trawl fishery under the Pacific Coast Groundfish Fishery 
Management Plan, excluding those registered to whiting catcher-
processors, and corollary fisheries in California, Oregon, and 
Washington for coastal Dungeness crab and pink shrimp. On May 28, 2003, 
NMFS published a proposed notice outlining the terms and conditions of 
the buyback program. Bid offers totaling $46 million were accepted for 
91 vessels, encompassing 239 fishing permits and licenses. Ten million 
dollars was appropriated by Congress toward funding the buyback 
program, the balance was funded through a loan of $36 million. The 
combined amount was issued to tender payment to the accepted bidders. 
NMFS published a final notice on July 18, 2003. A successful referendum 
in October 2003 accepted the fee system. On November 16, 2004, NMFS 
published a proposed rule to implement the industry fee system to repay 
the loan portion of the buyback program. On April 8, 2005, NMFS 
published a revised proposed rule. NMFS collected comments and on July 
13, 2005, NMFS responded to the comments and published a final rule 
establishing the industry fee system rule. As a result, seven loan 
subamounts were created for each of the permitted fisheries. NMFS began 
collecting buyback fee payments to repay the debt obligation of $36 
million at an interest rate of 6.97 percent over a term of 30 years on 
September 8, 2005. Four of the seven fisheries have repaid their loan 
subamounts in full.
    Congress enacted Public Law 113-291 Section 3095 (2015 National 
Defense Authorization Act), which was signed into law on December 19, 
2014, to refinance the existing debt obligation funding the fishing 
capacity reduction program for the Pacific Coast Groundfish fishery 
implemented under Section 212.

II. Refinance Cost

    The amount paid to refinance the existing Pacific Coast Groundfish 
loan may not exceed $30 million and will not exceed the amount of the 
outstanding debt for the Pacific Coast Groundfish federal limited-entry 
trawl, Washington coastal Dungeness crab, and California pink shrimp 
fishery loan subamounts which are, as of March 30, 2015, $26M, $0.3M, 
and $0.1M, respectively. The Office of Management and Budget has 
determined that a $10 million appropriation will be necessary to fund 
the reduced income to the U.S. Treasury over the next 10 years due to 
the reduction in the annual loan repayment amount under the refinanced 
terms. A $300,000 appropriation will also be necessary to provide the 
subsidy amount for the new loan, pursuant to the Federal Credit Reform 
Act. NMFS will not implement the refinance unless these necessary funds 
are appropriated. A final rule would not be effective until 
appropriations are approved.

III. Program Overview

    NMFS is implementing this refinancing process pursuant to 2015 
National Defense Authorization Act. A refinancing would reduce the 
maximum buyback fee payment amount from 5 percent of ex-vessel value to 
3 percent of ex-vessel value. The current loan term of 30 years is 10 
years into repayment. Under the refinancing terms, a new loan with a 
45-year term would be initiated, effectively providing the original 
reduction program a 55-year repayment term for permit holders in these 
fisheries. The interest rate on the refinanced loan will be the rate 
that the Secretary pays to the Treasury to borrow

[[Page 46943]]

the funds, which may be lower than the current interest rate of 6.97 
percent on the original loan.

IV. Referendum

    As part of the refinancing process, NMFS will conduct referenda to 
approve or reject the refinancing of the current capacity reduction 
loan as soon as practicable after publication of the final rule. The 
original loan authorizing legislation required that NMFS conduct a 
referendum to approve repaying the loan. The 2015 National Defense 
Authorization Act authorized refinancing of that reduction loan. NMFS 
has determined that to implement the 2015 Act properly, a referendum 
will also be conducted to ensure that a majority of permit holders 
consent to the new terms. The referendum process will take 30 days and 
will not significantly increase the time to complete the refinancing 
process. Even if another method to determine permit holder support for 
the refinancing were permitted by statute, the time to develop that 
method would likely take longer than conducting a referendum.
    NMFS will conduct three separate referenda to allow participants in 
each fishery to indicate their interest in refinancing the loan 
subamount for their particular fishery. This is to ensure that if one 
fishery does not approve a refinancing, it does not prevent 
participants in other fisheries from approving a refinancing in their 
own fishery.
    Permit holders will have 30 days from the date of notice to cast 
their vote. A successful referendum means permit holders in that 
particular fishery authorize the fee required to repay the refinanced 
reduction loan.
    NMFS will mail referendum information, voting instructions, and a 
referendum ballot to the permit owner of each groundfish permit in the 
Pacific Coast Groundfish Federal limited-entry trawl fishery and to the 
person who is the holder of record of each state-issued California pink 
shrimp or Washington coastal Dungeness crab permit (collectively, 
eligible voters). NMFS will include the following information about the 
refinancing:
     The program's cost,
     The three reduction loan subamounts,
     Current terms and conditions of the capacity reduction 
loan, and
     The changes that will occur should the referendum be 
successful.
    NMFS will mail eligible voters a separate referendum ballot for 
each groundfish permit he/she owns and each California pink shrimp or 
Washington coastal Dungeness crab permit he/she holds. In other words, 
eligible voters will have one ballot for every such permit they hold. 
Permit holders will only vote for the refinancing of the loan 
subamount(s) for fisheries in which they hold permits.
    Immediately after the deadline for NMFS' receipt of ballots, NMFS 
will tally votes for each fishery separately.
    For a referendum to be successful, a majority of the total eligible 
permit holders in that fishery must vote in favor of the refinancing. 
NMFS will mail each eligible voter a notice about his/her respective 
referendum's outcome.
    If a referendum is unsuccessful, the refinancing fee for that 
fishery will not be approved and the fee system rule at Sec.  600.1102 
will remain in effect for that fishery.
    If a referendum for a fishery loan is successful, NMFS will repay 
the original fishery's loan subamount in full and issue a new loan per 
the terms in this rule. NMFS will rescind the loan repayment terms at 
Sec.  600.1102 and those terms will be superseded with the fee system 
in this rule reflecting the new loan's refinanced terms for that 
fishery.

V. Refinanced Loan

    Any refinanced loan will mature 45 years from the date of the 
issuance of the new loan. The principal amount will be the current 
balance of principal and interest on the fishery's loan subamount as of 
the date of funding of the new refinanced loan. Fishery finance program 
loans, including buyback loans, have historically been issued at the 
Treasury interest rate plus two percentage points. The refinancing 
terms in the 2015 National Defense Authorization Act did not include 
additional percentage points above the Treasury interest rate. On the 
date of issuance of any new loan, NMFS will determine the reduction 
loan's interest rate in accordance with the 2015 National Defense 
Authorization Act, Sec. 3095, and the framework regulations at Sec.  
600.1012 to the extent they do not conflict with Section 3095.

VI. Fee Payment Rate

    NMFS will establish the fee rates necessary to repay refinanced 
loan amounts applicable to each fishery for which there is a successful 
referendum. The amount of the fee will be calculated by NMFS on an 
annual basis as the principal and interest payment amount necessary to 
amortize the loan over a 45-year term, not to exceed 3 percent of ex-
vessel value. The fee shall be expressed as a percentage of the ex-
vessel value of all fish harvested and landed in the respective 
fisheries. In the event that payments are insufficient to repay the 
refinanced loan within the 45-year term, NMFS will extend the term of 
the repayment until the refinanced loan is paid in full.
    To verify that the fees collected do not exceed three percent of 
the fishery revenues, NMFS will compare the annual total of principal 
and interest due with the latest available annual revenues in the 
fisheries. In the event that any of the components necessary to 
calculate the next year's fee are not available, or postponed, the fee 
will remain at the previous year's amount until such time as new 
calculations are made and communicated to the post-refinancing fishery 
participants.
    If a refinanced fishery does not open during a year, interest will 
continue to accrue on the principal balance even though no fee revenue 
will be generated. If this happens, when the fishery opens, NMFS shall 
increase the fee to the maximum three percent, apply all subsequent fee 
revenue first to the payment of accrued interest, and continue the 
maximum fee rates until the principal and interest payments become 
current. Once all principal and interest payments are current, NMFS 
will make a determination about adjusting the fee rate.

VII. Fee Payment and Collection

    Fish sellers will pay the fees and fish buyers will collect, 
deposit, disburse, record, and report on the fees in accordance with 
the applicable portions of the framework regulations (Sec.  600.1014), 
the 2015 National Defense Authorization Act, Section 3095, Sec.  
600.1102, and this final rule. This process would not change from the 
current fishing capacity reduction loan program.
    NMFS entered into agreements with California, Oregon, and 
Washington to provide necessary information on fish tickets, buyers, 
and harvesters to collect the fees that repay the current reduction 
loan, and these agreements will not change as a result of any 
refinancing. The three states will be notified of this proposed rule, a 
final rule and, if there is a successful referendum, that a refinancing 
has occurred.

VIII. Enforcement/Prohibitions and Penalties

    All requirements and penalties set forth in the provisions of Sec.  
600.1013 (Fee payment and collection), Sec.  600.1014 (Fee collection 
deposits, disbursements, records, and reports), Sec.  600.1015 (Late 
charges), and Sec.  600.1017 (Prohibitions and penalties) shall apply 
to any dealer who purchases fish in the refinanced reduction

[[Page 46944]]

fisheries, and to any fee collection under this section, to the extent 
they do not conflict with this section or with subpart M of this part.
    The provisions and requirements of Sec.  600.1016 (Enforcement) 
shall also apply to fish sellers and fish buyers subject to this 
fishery.
    Additionally, fish buyers are prohibited from buying fish from 
reduction fishery participants who do not pay the required landing fee 
and prohibits reduction fishery participants from selling fish to 
buyers who do not collect the fees.

Classification

    The Assistant Administrator for Fisheries, NMFS, determined that 
this action is consistent with Public Law 113-291, Public Law 107-206, 
Public Law 108-7, the Magnuson-Stevens Fishery Conservation and 
Management Act, and other applicable laws. NMFS has preliminarily 
determined that the proposed action would qualify as a Categorical 
Exclusion under the National Environmental Policy Act. The Office of 
Management and Budget has determined that this proposed rule is not 
significant under Executive Order 12866.

RIR/IRFA

    NMFS has prepared a Regulatory Impact Review (RIR) and an Initial 
Regulatory Flexibility Analysis (IRFA) for this action (see ADDRESSES). 
NMFS believes any Federalism implications arising from this notice are 
highly unlikely. Consultations with the States of Washington, Oregon, 
and California were previously conducted regarding the Pacific Coast 
Groundfish Fishing Capacity Reduction Program and those states will 
have additional opportunity to comment on this proposed rule. In 2014, 
NMFS implemented the cost recovery program to recover the associated 
costs with management, data collection and enforcement of the Pacific 
Coast Groundfish trawl rationalization program, which added another 
cost to harvesters in this fishery of up to 3 percent of value of fish 
sold. This additional fee has reduced their income so the request to 
refinance is in part to obtain fee relief for harvesters in that 
fishery.

Impact to Small Businesses

    The Small Business Administration (SBA) has defined small entities 
as all fish harvesting businesses that are independently owned and 
operated, not dominant in their field of operation, and with annual 
receipts of less than $20.5 million for finfish harvesters or $7.5 
million for shellfish harvesters. In addition, processors with 500 or 
fewer employees for related industries involved in canned and cured 
fish and seafood, or preparing fresh fish and seafood, are also 
considered small entities. According to the SBA's definition of a small 
entity, most of the vessels would be considered small entities. 
However, there are no disproportionate impacts between large and small 
entities. This proposed action would not result in changes to 
allocation percentages and would not change the number of vessels 
participating in the fishery. As such, net effects on small businesses 
of this action are expected to be minimal relative to the status quo.

Paperwork Reduction Act (PRA)

    This document contains collection of information requirements 
subject to the Paperwork Reduction Act (PRA). The Office of Management 
and Budget (OMB) has approved these information collections under OMB 
control number 0648-0376. NMFS estimates that the public reporting 
burden for these requirements will average 4 hours for voting in a 
referendum. Persons affected by this action would also be subject to 
other collection-of-information requirements referred to in this action 
and also approved under 0648-0376. These requirements and their 
associated response times are 10 minutes for completing and filing a 
fish ticket, 2 hours for submitting a monthly fish buyer report, and 4 
hours for making a fish seller/buyer report when one party fails to 
either pay or collect the fee. These response estimates include the 
time for reviewing instructions, searching existing data sources, 
gathering and maintaining the data needed, and completing and reviewing 
the information collection. Send comments regarding this burden 
estimate, or any other aspect of this data collection, including 
suggestions for reducing the burden, to NMFS (see ADDRESSES). 
Notwithstanding any other provision of law, no person is required to 
respond to, and no person is subject to a penalty for failure to comply 
with, an information collection subject to the requirements of the PRA 
unless that information collection displays a currently valid OMB 
control number.

List of Subjects in 50 CFR Part 600

    Fisheries, Fishing capacity reduction, Fishing permits, Fishing 
vessels, Intergovernmental relations, Loan programs-business, Reporting 
and recordkeeping requirements.

    Dated: July 31, 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 600, subpart 
M, is proposed to be amended as follows:

PART 600--MAGNUSON-STEVENS ACT PROVISIONS

Subpart M--Specific Fishery or Program Fishing Capacity Reduction 
Regulations

0
1. The authority citation for 50 CFR part 600, subpart M, is revised to 
read as follows:

    Authority:  5 U.S.C. 561, 16 U.S.C. 1801 et seq., 16 U.S.C. 
1861a(b) through (e), section 212 of Pub. L. 107-206, section 501 of 
Pub. L. 108-7, section 3095 Pub. L. 113-291, and 46 U.S.C. 53701 et 
seq.

0
2. Section 600.1109 is added to subpart M to read as follows:


Sec.  600.1109  Refinance of the Pacific Coast Groundfish Fishing 
Capacity Reduction Program, including fee payment and collection 
system.

    (a) Purpose. Upon successful referenda, this section implements the 
refinancing of three of the fishing capacity reduction loan subamounts 
for the Pacific Coast Groundfish Fishing Capacity Reduction Program 
enacted by Section 212 of Public Law 107-206 and Section 501 of Public 
Law 108-7, as amended by Section 3095 of Public Law 113-291 (the Act). 
The intent of the program is to refinance, through an industry-financed 
loan, the current debt obligation for the reduction of permits 
previously purchased in the Pacific Coast Groundfish Buyback Program. 
Fishery participants will finance this program through federal loans 
that will be repaid over 45 years through a fee collection system. The 
intent of the fee collection system is to establish the permit holders' 
obligation to repay the Refinanced Loans' principal and accrued 
interest over the repayment term, and to ensure repayment of the new 
loans.
    (b) Definitions. Unless otherwise defined in this section, the 
terms defined in Sec. Sec.  600.1000 and 600.1102 expressly apply to 
this section. The following terms have the following meanings for the 
purpose of this section:
    Refinanced loans means the loans used to refinance the original 
reduction loan under Section 3095 of Public Law 113-291.
    Refinancing plan means the implementation of the changes in terms 
and conditions authorized by Section 3095 of Public Law 113-291.

[[Page 46945]]

    Refinanced reduction fisheries means the Pacific Coast Groundfish 
federal limited-entry trawl fishery (excluding those permits which are 
endorsed for catch-processors), Washington coastal Dungeness crab and 
California pink shrimp fisheries.
    (c) Refinanced fishing capacity reduction loan. In the event of 
successful referenda, the fishing capacity reduction loan implemented 
in 2004 in the Pacific Coast Groundfish federal limited-entry trawl, 
Washington coastal Dungeness crab, or California pink shrimp fisheries 
would be refinanced into one, two, or three loans modifying certain 
terms to extend the 30 year term to maturity to 45 years, change the 
interest rate to the current Treasury interest rate, and reduce the 
maximum repayment fee from five to three percent of ex-vessel value.
    (1) Referenda. Subsequent to the publication of a final rule 
resulting from this proposed rule, NMFS will conduct three separate 
referenda to allow each participant in each fishery to vote his/her 
interest in his/her particular fishery. This is to ensure that if one 
fishery does not approve the refinancing of its loan subamount, it does 
not prevent participants in the other fisheries from approving the 
refinancing in their respective fisheries. NMFS shall publish a notice 
in the Federal Register requesting votes by permit holders on whether 
to accept or reject the refinancing plan. The notice shall state the 
starting and ending dates and times of the voting period. The end date 
shall be thirty (30) days from the start date.
    (i) Such notice shall state the name and address of record of each 
eligible voter, as well as the basis for having determined the 
eligibility of those voters. This shall constitute notice and 
opportunity to respond about adding eligible voters, deleting 
ineligible voters, and/or correcting any voter's name and address of 
record. If, in NMFS' discretion, the comments received in response to 
such notice warrants it, or for other good cause, NMFS may modify such 
list by publishing another notice in the Federal Register. NMFS shall 
issue ballots to eligible voters, tally votes, and notify voters 
whether the referendum was successful or unsuccessful in approving the 
Refinancing Plan consistent with the provisions of Sec.  600.1010.
    (ii) A successful referendum by a majority of the permit holders in 
their respective fishery shall bind all parties and complete the 
refinancing. NMFS shall publish a notice in the Federal Register 
advising the public that the referendum was successful. Thereafter the 
Refinancing Plan shall be implemented.
    (iii) The provisions of Sec. Sec.  600.1010 and 600.1017(a)(1)-(4) 
shall apply to any referendum of a Refinancing Loan conducted under 
this section to the extent that they are not inconsistent with and do 
not conflict with this section or with subpart M of this part.
    (2) Refinanced loan repayment. Permit holders operating in the 
refinanced reduction fishery shall be obligated to pay the fee in 
accordance with this section. In the event that payments made are 
insufficient to pay a Refinanced Loan within the 45-year term, NMFS 
shall extend the term of the repayment until the Refinanced Loan is 
paid in full.
    (i) Refinanced loan amount. The amount paid to refinance the 
existing Pacific Coast Groundfish loan may not exceed $30 million and 
will not exceed the amount of the outstanding debt for the Pacific 
Coast Groundfish federal limited-entry trawl, Washington coastal 
Dungeness crab, and California pink shrimp fishery loan subamounts.
    (ii) Repayment term. As authorized by the Act, a Refinanced Loan 
shall be amortized over a forty-five (45) year term. A final Refinanced 
Loan periodic payment amount will be determined by NMFS' analysis of 
the ability of the post-reduction fishery to service debt, up to a 
maximum of 3 percent of ex-vessel value. The provisions of Sec. Sec.  
600.1012-600.1017 shall apply to any reduction loan, fee payment and 
collection under this section to the extent they do not conflict with 
this section or with subpart M of this part.
    (iii) Interest. NMFS will determine a Reduction Loan's initial 
interest rate when NMFS borrows from the U.S. Treasury the funds with 
which to refinance the reduction loan. Interest will begin accruing on 
a Refinanced Loan from the date on which NMFS refinances the reduction 
loan. The initial interest rate will change to a final interest rate at 
the end of the Federal fiscal year in which NMFS borrows the funds from 
the U.S. Treasury. The final interest rate will be a weighted average, 
throughout that fiscal year, of the U.S. Treasury's cost of borrowing 
equivalent maturity funds. The final interest rate will be fixed and 
will not vary over the remainder of the refinanced reduction loan's 45-
year term. Refinanced Loans will be subject to a level debt 
amortization. There is no prepayment penalty.
    (iv) Fees. Fees will be collected, deposited, disbursed, and 
recorded in accordance with Sec.  600.1109(d).
    (d) Fee system. Post-refinancing permit holders operating in the 
fishery shall be obligated to pay the fee in accordance with the 
following: The amount of such fee will be calculated by NMFS on an 
annual basis as the principal and interest payment amount necessary to 
amortize a loan over a 45-year term, not to exceed 3 percent of ex-
vessel value. The fee shall be expressed as a percentage of the ex-
vessel value of all fee fish harvested and landed in the respective 
fisheries. In the event that payments made under the Refinanced 
Reduction Plan are insufficient to repay a Refinanced Loan within the 
45-year term, NMFS shall extend the term of the repayment until the 
Refinanced Loan is paid in full.
    (1) Collection. The buyer who first purchases the fee fish landed 
in a fishery shall be responsible for collecting and submitting the 
repayment fees to NMFS monthly. The fees shall be submitted to NMFS no 
later than fourteen (14) calendar days following the end of each 
calendar month. Fees must be assessed and collected on all fee fish 
harvested in the fisheries.
    (2) Fee amount. Although the fee could be up to three percent of 
the ex-vessel price of all post-refinancing landings, the fee will be 
less than three percent if NMFS projects that a lesser rate can 
amortize the Refinanced Loan over the 45-year term. To verify that the 
fees collected do not exceed 3 percent of the fishery revenues, NMFS 
will compare the annual total of principal and interest due with the 
latest available annual revenues in the fisheries to ensure that it is 
equal to or less than three percent of the total ex-vessel production 
revenues. In the event that any of the components necessary to 
calculate the next year's fee are not available, or postponed, the fee 
will remain at the previous year's amount until such time as new 
calculations are made and communicated to the post-refinancing fishery 
participants.
    (i) If a refinanced fishery does not open during a year, interest 
will continue to accrue on the principal balance even though no fee 
revenue will be generated. If this happens, when the fishery opens, 
NMFS shall increase the fee to the maximum three percent, apply all 
subsequent fee revenue first to the payment of accrued interest, and 
continue the maximum fee rates until the principal and interest 
payments become current. Once all principal and interest payments are 
current, NMFS will make a determination about adjusting the fee rate.
    (ii) [Reserved]
    (3) Recordkeeping and reporting. The dealer who first purchases the 
fee fish landed in the fishery shall be responsible for compliance with 
the

[[Page 46946]]

applicable recordkeeping and reporting requirements.
    (4) All requirements and penalties set forth in the provisions of 
Sec.  600.1013 (Fee payment and collection), Sec.  600.1014 (Fee 
collection deposits, disbursements, records, and reports), Sec.  
600.1015 (Late charges), and Sec.  600.1017 (Prohibitions and 
penalties) shall apply to any dealer who purchases fish in the 
refinanced reduction fisheries, and to any fee collection under this 
section, to the extent they do not conflict with this section or with 
subpart M of this part.
    (e) Enforcement for failure to pay fees. The provisions and 
requirements of Sec.  600.1016 (Enforcement) shall also apply to fish 
sellers and fish buyers subject to this fishery.
    (f) Prohibitions and penalties. The provisions and requirements of 
Sec.  600.1017 shall also apply to fish sellers and fish buyers subject 
to this fishery. In addition, fish buyers are prohibited from 
purchasing fish from fish sellers who do not pay the required landing 
fees. Fish sellers are prohibited from selling to fish buyers who do 
not pay the required landing fees.
    (g) The provisions of Sec.  600.1102 shall apply to any fee 
collection as implemented by the Refinancing Plan to the extent that 
they do not conflict with this section or with subpart M of this part.

[FR Doc. 2015-19261 Filed 8-5-15; 8:45 am]
 BILLING CODE 3510-22-P

Federal Register / Vol. 80, No. 151 / Thursday, August 6, 2015 / Proposed Rules 46941

3. On page 39595, in Table 20, add a
new entry for the northern bottlenose
whale to read as follows:

TABLE 20—SUMMARY INFORMATION RELATED TO PROPOSED ANNUAL TAKE AUTHORIZATION IN THE ATLANTIC COAST
REGION, 2015–2020
Estimated
Proposed total Proposed total
Percent of maximum
annual Level B M/SI + Level A % Stock
Species 1 estimated annual PBR 3 PBR 4 trend 5
harassment authorization,
population M/SI +
authorization 2015–2020 Level A 2

* * * * * * *
Harbor seal ........................................... 7 1,678; 20,000 2.48 15 3.6 1,662 0.22 ?

* * * * * * *
Northern bottlenose whale .................... 10 n/a 0 0 n/a ................ ?

* * * * * * *
Unidentified delphinids.

* * * * * * *
* * * * * * *
1 Forspecies with multiple stocks in the Atlantic coast regions or for species groups (Kogia spp. and Mesoplodont beaked whales), indicated
level of take could occur to individuals from any stock or species (not including coastal and estuarine stocks of bottlenose dolphins).
2 This column represents the total number of incidents of M/SI + Level A that could potentially accrue to the specified species or stock and is
the number carried forward for evaluation in the negligible impact analysis (later in this document). To reach this total, we add one to the total for
each pinniped or delphinid that may be captured in longline or gillnet gear, one to the total for each delphinid that may be captured in trawl gear,
and one pinniped that may be captured in fyke net gear. This represents the potential that the take of an unidentified pinniped or delphinid could
accrue to any given stock captured in that gear. The proposed take authorization is formulated as a five-year total; the annual average is used
only for purposes of negligible impact analysis. We recognize that portions of an animal may not be taken in a given year.
3 See Table 3 and following discussion for more detail regarding PBR.
4 Estimated maximum annual M/SI + Level A expressed as a percentage of PBR.
5 See relevant SARs for more information regarding stock status and trends. Interannual increases may not be interpreted as evidence of a
trend.
* * * * * * *
7 The first number represents estimated annual Level B take by acoustic sources. The second number represents estimated annual Level B
take by the physical disturbance during surveys in Penobscot Bay.

List of Subjects in 50 CFR Part 219 § 219.33 Permissible methods of taking. Dated: July 29, 2015.
Exports, Fish, Imports, Indians, * * * * * Samuel D. Rauch III,
Labeling, Marine mammals, Penalties, (b) * * * Deputy Assistant Administrator for
Reporting and recordkeeping (1) * * * Regulatory Programs, National Marine
(i) * * * Fisheries Service.
requirements, Seafood, Transportation.
(H) Pygmy or dwarf sperm whale [FR Doc. 2015–19310 Filed 8–5–15; 8:45 am]
Accordingly, 50 CFR part 219 is
(Kogia spp.)—24; BILLING CODE 3510–22–P
corrected as follows:
* * * * *
PART 219—REGULATIONS (K) Bottlenose dolphin (Tursiops
GOVERNING THE TAKING AND truncatus)—1,294; DEPARTMENT OF COMMERCE
IMPORTING OF MARINE MAMMALS * * * * * National Oceanic and Atmospheric
(Z) Northern bottlenose whale Administration
Subpart D—Taking Marine Mammals (Hyperoodon ampullatus)—10;
Incidental to Northeast Fisheries
* * * * * 50 CFR Part 600
Science Center Fisheries Research in (ii) * * *
the Atlantic Coast Region (A) Gray seal (Halichoerus grypus)— [Docket No. 150227192–5192–01]
■ 1. The authority citation for part 219 8,010;
continues to read as follows: * * * * * RIN 0648–BE90
(C) Harbor seal (Phoca vitulina)—
Authority: 16 U.S.C. 1361 et seq.
21,678. Magnuson-Stevens Act Provisions;
■ 2. In § 219.33: * * * * * Refinance of the Pacific Coast
■ A. Revise paragraph (b)(1)(i)(H). (2) * * * Groundfish Fishing Capacity
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■ B. Revise paragraph (b)(1)(i)(K). (ii) * * * Reduction Loan; Pacific Coast
■ C. Add paragraph (b)(1)(i)(Z). Groundfish Federal Limited-Entry
(A) Gray seal—5;
■ D. Revise paragraph (b)(1)(ii)(A). Trawl, Washington Coastal Dungeness
(B) Harbor seal—5;
■ E. Revise paragraph (b)(1)(ii)(C). Crab and California Pink Shrimp
■ F. Revise paragraphs (b)(2)(ii)(A) and * * * * *
(4) * * * Fisheries; Refinanced Reduction Loan
(b)(2)(ii)(B). Terms and Industry Fee System
■ G. Revise paragraph (b)(4)(ii)(A). (ii) * * *
The revisions and addition are set out (A) Gray seal—5; AGENCY: National Marine Fisheries
below: * * * * * Service (NMFS), National Oceanic and

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Federal Register / Vol. 80, No. 151 / Thursday, August 6, 2015 / Proposed Rules 46943

the funds, which may be lower than the Washington coastal Dungeness crab payments are insufficient to repay the
current interest rate of 6.97 percent on permit he/she holds. In other words, refinanced loan within the 45-year term,
the original loan. eligible voters will have one ballot for NMFS will extend the term of the
every such permit they hold. Permit repayment until the refinanced loan is
IV. Referendum paid in full.
holders will only vote for the
As part of the refinancing process, refinancing of the loan subamount(s) for To verify that the fees collected do not
NMFS will conduct referenda to fisheries in which they hold permits. exceed three percent of the fishery
approve or reject the refinancing of the Immediately after the deadline for revenues, NMFS will compare the
current capacity reduction loan as soon NMFS’ receipt of ballots, NMFS will annual total of principal and interest
as practicable after publication of the tally votes for each fishery separately. due with the latest available annual
final rule. The original loan authorizing For a referendum to be successful, a revenues in the fisheries. In the event
legislation required that NMFS conduct majority of the total eligible permit that any of the components necessary to
a referendum to approve repaying the holders in that fishery must vote in calculate the next year’s fee are not
loan. The 2015 National Defense favor of the refinancing. NMFS will mail available, or postponed, the fee will
Authorization Act authorized each eligible voter a notice about his/her remain at the previous year’s amount
refinancing of that reduction loan. respective referendum’s outcome. until such time as new calculations are
NMFS has determined that to If a referendum is unsuccessful, the made and communicated to the post-
implement the 2015 Act properly, a refinancing fee for that fishery will not refinancing fishery participants.
referendum will also be conducted to be approved and the fee system rule at If a refinanced fishery does not open
ensure that a majority of permit holders § 600.1102 will remain in effect for that during a year, interest will continue to
consent to the new terms. The fishery. accrue on the principal balance even
referendum process will take 30 days If a referendum for a fishery loan is though no fee revenue will be generated.
and will not significantly increase the successful, NMFS will repay the If this happens, when the fishery opens,
time to complete the refinancing original fishery’s loan subamount in full NMFS shall increase the fee to the
process. Even if another method to and issue a new loan per the terms in maximum three percent, apply all
determine permit holder support for the this rule. NMFS will rescind the loan subsequent fee revenue first to the
refinancing were permitted by statute, repayment terms at § 600.1102 and payment of accrued interest, and
the time to develop that method would those terms will be superseded with the continue the maximum fee rates until
likely take longer than conducting a fee system in this rule reflecting the new the principal and interest payments
referendum. loan’s refinanced terms for that fishery. become current. Once all principal and
NMFS will conduct three separate V. Refinanced Loan interest payments are current, NMFS
referenda to allow participants in each will make a determination about
fishery to indicate their interest in Any refinanced loan will mature 45 adjusting the fee rate.
refinancing the loan subamount for their years from the date of the issuance of
the new loan. The principal amount will VII. Fee Payment and Collection
particular fishery. This is to ensure that
if one fishery does not approve a be the current balance of principal and Fish sellers will pay the fees and fish
refinancing, it does not prevent interest on the fishery’s loan subamount buyers will collect, deposit, disburse,
participants in other fisheries from as of the date of funding of the new record, and report on the fees in
approving a refinancing in their own refinanced loan. Fishery finance accordance with the applicable portions
fishery. program loans, including buyback loans, of the framework regulations
Permit holders will have 30 days from have historically been issued at the (§ 600.1014), the 2015 National Defense
the date of notice to cast their vote. A Treasury interest rate plus two Authorization Act, Section 3095,
successful referendum means permit percentage points. The refinancing § 600.1102, and this final rule. This
holders in that particular fishery terms in the 2015 National Defense process would not change from the
authorize the fee required to repay the Authorization Act did not include current fishing capacity reduction loan
refinanced reduction loan. additional percentage points above the program.
NMFS will mail referendum Treasury interest rate. On the date of NMFS entered into agreements with
information, voting instructions, and a issuance of any new loan, NMFS will California, Oregon, and Washington to
referendum ballot to the permit owner determine the reduction loan’s interest provide necessary information on fish
of each groundfish permit in the Pacific rate in accordance with the 2015 tickets, buyers, and harvesters to collect
Coast Groundfish Federal limited-entry National Defense Authorization Act, the fees that repay the current reduction
trawl fishery and to the person who is Sec. 3095, and the framework loan, and these agreements will not
the holder of record of each state-issued regulations at § 600.1012 to the extent change as a result of any refinancing.
California pink shrimp or Washington they do not conflict with Section 3095. The three states will be notified of this
coastal Dungeness crab permit proposed rule, a final rule and, if there
VI. Fee Payment Rate
(collectively, eligible voters). NMFS will is a successful referendum, that a
include the following information about NMFS will establish the fee rates refinancing has occurred.
the refinancing: necessary to repay refinanced loan
amounts applicable to each fishery for VIII. Enforcement/Prohibitions and
• The program’s cost, Penalties
• The three reduction loan which there is a successful referendum.
The amount of the fee will be calculated All requirements and penalties set
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subamounts,
• Current terms and conditions of the by NMFS on an annual basis as the forth in the provisions of § 600.1013
capacity reduction loan, and principal and interest payment amount (Fee payment and collection),
• The changes that will occur should necessary to amortize the loan over a 45- § 600.1014 (Fee collection deposits,
the referendum be successful. year term, not to exceed 3 percent of ex- disbursements, records, and reports),
NMFS will mail eligible voters a vessel value. The fee shall be expressed § 600.1015 (Late charges), and
separate referendum ballot for each as a percentage of the ex-vessel value of § 600.1017 (Prohibitions and penalties)
groundfish permit he/she owns and all fish harvested and landed in the shall apply to any dealer who purchases
each California pink shrimp or respective fisheries. In the event that fish in the refinanced reduction

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46944 Federal Register / Vol. 80, No. 151 / Thursday, August 6, 2015 / Proposed Rules

fisheries, and to any fee collection addition, processors with 500 or fewer Dated: July 31, 2015
under this section, to the extent they do employees for related industries Samuel D. Rauch III,
not conflict with this section or with involved in canned and cured fish and Deputy Assistant Administrator for
subpart M of this part. seafood, or preparing fresh fish and Regulatory Programs, National Marine
The provisions and requirements of seafood, are also considered small Fisheries Service.
§ 600.1016 (Enforcement) shall also entities. According to the SBA’s For the reasons set out in the
apply to fish sellers and fish buyers definition of a small entity, most of the preamble, 50 CFR part 600, subpart M,
subject to this fishery. vessels would be considered small is proposed to be amended as follows:
Additionally, fish buyers are entities. However, there are no
prohibited from buying fish from PART 600—MAGNUSON-STEVENS
disproportionate impacts between large
reduction fishery participants who do ACT PROVISIONS
and small entities. This proposed action
not pay the required landing fee and
would not result in changes to Subpart M—Specific Fishery or
prohibits reduction fishery participants
from selling fish to buyers who do not allocation percentages and would not Program Fishing Capacity Reduction
collect the fees. change the number of vessels Regulations
participating in the fishery. As such, net
Classification effects on small businesses of this action ■ 1. The authority citation for 50 CFR
The Assistant Administrator for are expected to be minimal relative to part 600, subpart M, is revised to read
Fisheries, NMFS, determined that this the status quo. as follows:
action is consistent with Public Law Authority: 5 U.S.C. 561, 16 U.S.C. 1801 et
Paperwork Reduction Act (PRA) seq., 16 U.S.C. 1861a(b) through (e), section
113–291, Public Law 107–206, Public
Law 108–7, the Magnuson-Stevens 212 of Pub. L. 107–206, section 501 of Pub.
This document contains collection of L. 108–7, section 3095 Pub. L. 113–291, and
Fishery Conservation and Management information requirements subject to the 46 U.S.C. 53701 et seq.
Act, and other applicable laws. NMFS Paperwork Reduction Act (PRA). The
has preliminarily determined that the ■ 2. Section 600.1109 is added to
Office of Management and Budget
proposed action would qualify as a subpart M to read as follows:
(OMB) has approved these information
Categorical Exclusion under the collections under OMB control number § 600.1109 Refinance of the Pacific Coast
National Environmental Policy Act. The 0648–0376. NMFS estimates that the Groundfish Fishing Capacity Reduction
Office of Management and Budget has public reporting burden for these Program, including fee payment and
determined that this proposed rule is requirements will average 4 hours for collection system.
not significant under Executive Order (a) Purpose. Upon successful
voting in a referendum. Persons affected
12866. referenda, this section implements the
by this action would also be subject to
RIR/IRFA other collection-of-information refinancing of three of the fishing
requirements referred to in this action capacity reduction loan subamounts for
NMFS has prepared a Regulatory the Pacific Coast Groundfish Fishing
Impact Review (RIR) and an Initial and also approved under 0648–0376.
Capacity Reduction Program enacted by
Regulatory Flexibility Analysis (IRFA) These requirements and their associated
Section 212 of Public Law 107–206 and
for this action (see ADDRESSES). NMFS response times are 10 minutes for Section 501 of Public Law 108–7, as
believes any Federalism implications completing and filing a fish ticket, 2 amended by Section 3095 of Public Law
arising from this notice are highly hours for submitting a monthly fish 113–291 (the Act). The intent of the
unlikely. Consultations with the States buyer report, and 4 hours for making a program is to refinance, through an
of Washington, Oregon, and California fish seller/buyer report when one party industry-financed loan, the current debt
were previously conducted regarding fails to either pay or collect the fee. obligation for the reduction of permits
the Pacific Coast Groundfish Fishing These response estimates include the previously purchased in the Pacific
Capacity Reduction Program and those time for reviewing instructions, Coast Groundfish Buyback Program.
states will have additional opportunity searching existing data sources, Fishery participants will finance this
to comment on this proposed rule. In gathering and maintaining the data program through federal loans that will
2014, NMFS implemented the cost needed, and completing and reviewing be repaid over 45 years through a fee
recovery program to recover the the information collection. Send collection system. The intent of the fee
associated costs with management, data comments regarding this burden collection system is to establish the
collection and enforcement of the estimate, or any other aspect of this data permit holders’ obligation to repay the
Pacific Coast Groundfish trawl collection, including suggestions for Refinanced Loans’ principal and
rationalization program, which added reducing the burden, to NMFS (see accrued interest over the repayment
another cost to harvesters in this fishery ADDRESSES). Notwithstanding any other term, and to ensure repayment of the
of up to 3 percent of value of fish sold. provision of law, no person is required new loans.
This additional fee has reduced their to respond to, and no person is subject (b) Definitions. Unless otherwise
income so the request to refinance is in to a penalty for failure to comply with, defined in this section, the terms
part to obtain fee relief for harvesters in an information collection subject to the defined in §§ 600.1000 and 600.1102
that fishery. requirements of the PRA unless that expressly apply to this section. The
information collection displays a following terms have the following
Impact to Small Businesses
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currently valid OMB control number. meanings for the purpose of this section:
The Small Business Administration Refinanced loans means the loans
(SBA) has defined small entities as all List of Subjects in 50 CFR Part 600 used to refinance the original reduction
fish harvesting businesses that are loan under Section 3095 of Public Law
independently owned and operated, not Fisheries, Fishing capacity reduction, 113–291.
dominant in their field of operation, and Fishing permits, Fishing vessels, Refinancing plan means the
with annual receipts of less than $20.5 Intergovernmental relations, Loan implementation of the changes in terms
million for finfish harvesters or $7.5 programs-business, Reporting and and conditions authorized by Section
million for shellfish harvesters. In recordkeeping requirements. 3095 of Public Law 113–291.

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$46946 Federal Register / Vol. 80, No. 151 / Thursday, August 6, 2015 / Proposed Rules applicable recordkeeping and reporting not conflict with this section or with fish sellers who do not pay the required requirements. subpart M of this part. landing fees. Fish sellers are prohibited (4) All requirements and penalties set (e) Enforcement for failure to pay fees. from selling to fish buyers who do not forth in the provisions of § 600.1013 The provisions and requirements of pay the required landing fees. (Fee payment and collection), § 600.1016 (Enforcement) shall also (g) The provisions of § 600.1102 shall § 600.1014 (Fee collection deposits, apply to fish sellers and fish buyers apply to any fee collection as disbursements, records, and reports), subject to this fishery. § 600.1015 (Late charges), and (f) Prohibitions and penalties. The implemented by the Refinancing Plan to § 600.1017 (Prohibitions and penalties) provisions and requirements of the extent that they do not conflict with shall apply to any dealer who purchases § 600.1017 shall also apply to fish this section or with subpart M of this fish in the refinanced reduction sellers and fish buyers subject to this part. fisheries, and to any fee collection fishery. In addition, fish buyers are [FR Doc. 2015–19261 Filed 8–5–15; 8:45 am] under this section, to the extent they do prohibited from purchasing fish from BILLING CODE 3510–22–P mstockstill on DSK4VPTVN1PROD with PROPOSALS VerDate Sep<11>2014 16:37 Aug 05, 2015 Jkt 235001 PO 00000 Frm 00094 Fmt 4702 Sfmt 9990 E:\FR\FM\06AUP1.SGM 06AUP1$

Document Created: 2018-02-23 10:55:57
Document Modified: 2018-02-23 10:55:57

Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Proposed Rules
Action		Proposed rule; request for comments.
Dates		NMFS must receive comments by September 8, 2015.
Contact		Paul Marx, Chief, Financial Services Division, National Marine Fisheries Service, (301) 427-8771.
FR Citation		80 FR 46941
RIN Number		0648-BE90
CFR Associated		Fisheries; Fishing Capacity Reduction; Fishing Permits; Fishing Vessels; Intergovernmental Relations; Loan Programs-Business and Reporting and Recordkeeping Requirements

DEPARTMENT OF COMMERCENational Oceanic and Atmospheric Administration

Federal Register Volume 80, Issue 151 (August 6, 2015)

DEPARTMENT OF COMMERCE
National Oceanic and Atmospheric Administration