81_FR_42420 81 FR 42295 - Magnuson-Stevens Act Provisions; Fisheries Off West Coast States; Pacific Coast Groundfish Fishery; Widow Rockfish Reallocation in the Individual Fishing Quota Fishery

81 FR 42295 - Magnuson-Stevens Act Provisions; Fisheries Off West Coast States; Pacific Coast Groundfish Fishery; Widow Rockfish Reallocation in the Individual Fishing Quota Fishery

DEPARTMENT OF COMMERCE
National Oceanic and Atmospheric Administration

Federal Register Volume 81, Issue 125 (June 29, 2016)

Page Range42295-42307
FR Document2016-15217

In January 2011, NMFS implemented the trawl rationalization program, a type of catch share program, for the Pacific coast groundfish fishery's limited entry trawl fleet, which includes an individual fishing quota program for limited entry trawl participants. At the time of implementation, the widow rockfish stock was overfished and quota shares were allocated to quota share permit owners in the individual fishing quota program using an overfished species formula. Now that the widow rockfish stock has been rebuilt, NMFS proposes to reallocate quota shares to initial recipients based on a target species formula that will more closely represent the fishing history of permit owners when widow rockfish was a targeted species. Through this rule, NMFS also proposes to allow the trading of widow rockfish quota shares, set a deadline for divestiture in case the reallocation of widow rockfish puts any QS permit owner over an accumulation limit, and remove the daily vessel limit for widow rockfish since it is no longer an overfished species.

Federal Register, Volume 81 Issue 125 (Wednesday, June 29, 2016)
[Federal Register Volume 81, Number 125 (Wednesday, June 29, 2016)]
[Proposed Rules]
[Pages 42295-42307]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-15217]


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DEPARTMENT OF COMMERCE

National Oceanic and Atmospheric Administration

50 CFR Part 660

[Docket No. 150902809-6536-01]
RIN 0648-BF12


Magnuson-Stevens Act Provisions; Fisheries Off West Coast States; 
Pacific Coast Groundfish Fishery; Widow Rockfish Reallocation in the 
Individual Fishing Quota Fishery

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

ACTION: Proposed rule; request for comments.

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SUMMARY: In January 2011, NMFS implemented the trawl rationalization 
program, a type of catch share program, for the Pacific coast 
groundfish fishery's limited entry trawl fleet, which includes an 
individual fishing quota program for limited entry trawl participants. 
At the time of implementation, the widow rockfish stock was overfished 
and quota shares were allocated to quota share permit owners in the 
individual fishing quota program using an overfished species formula. 
Now that the widow rockfish stock has been rebuilt, NMFS proposes to 
reallocate quota shares to initial recipients based on a target species 
formula that will more closely represent the fishing history of permit 
owners when widow rockfish was a targeted species. Through this rule, 
NMFS also proposes to allow the trading of widow rockfish quota shares, 
set a deadline for divestiture in case the reallocation of widow 
rockfish puts any QS permit owner over an accumulation limit, and 
remove the daily vessel limit for widow rockfish since it is no longer 
an overfished species.

DATES: Comments on this proposed rule must be received on or before 
July 29, 2016.

ADDRESSES: You may submit comments on this document, identified by 
NOAA-NMFS-2016-0037, by any of the following methods:
     Electronic Submission: Submit all electronic public 
comments via the Federal e-Rulemaking Portal. Go to

[[Page 42296]]

www.regulations.gov/#!docketDetail;D=NOAA-NMFS-2016-0037, click the 
``Comment Now!'' icon, complete the required fields, and enter or 
attach your comments.
     Mail: Submit written comments to William W. Stelle, Jr., 
Regional Administrator, West Coast Region, NMFS, 7600 Sand Point Way 
NE., Seattle, WA 98115-0070; Attn: Sarah Towne.
    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).

FOR FURTHER INFORMATION CONTACT: Sarah Towne, 206-526-4140, 
[email protected].

SUPPLEMENTARY INFORMATION: 

Background

    In January 2011, NMFS implemented a trawl rationalization program, 
which is a catch share program, for the Pacific coast groundfish 
limited entry trawl fishery. The program was implemented through 
Amendments 20 and 21 to the Pacific Coast Groundfish Fishery Management 
Plan and the corresponding implementing regulations at 50 CFR part 660. 
Amendment 20 established the trawl rationalization program that 
consists of: an individual fishing quota (IFQ) program for the 
shorebased trawl fleet (including whiting and nonwhiting sectors), and 
cooperative programs for the at-sea mothership and catcher/processor 
trawl fleets (whiting only). Amendment 21 set long-term allocations for 
the limited entry trawl sectors of certain groundfish species.
    In the IFQ fishery, NMFS initially allocated quota shares (QS) 
based on allocation formulas developed through the Pacific Fishery 
Management Council (Council). Target species QS was allocated using 
limited entry trawl permit catch history. Overfished species QS was 
allocated based on QS of 11 target species, area of catch based on 
logbook data, and average bycatch ratios from observer data. The widow 
rockfish stock was overfished at the time of initial allocation, so 
widow rockfish QS was allocated to QS permit owners using the 
overfished species formula.
    Amendment 20 states that when an overfished species is rebuilt, 
there may be a reallocation of QS to facilitate the reestablishment of 
historic fishing opportunities. In its May 2012 Status of the Stocks 
Report, NMFS officially declared widow rockfish rebuilt. Based on the 
2011 stock assessment results, which indicated that widow was rebuilt, 
the Council decided that it would consider a reallocation of widow 
rockfish QS. In June 2012 QS for all species was not yet transferrable, 
but the Council placed a moratorium on the future transfer of widow 
rockfish QS until the reallocation could be considered, to protect 
permit owners from trading an asset that the Council might 
redistribute. In November 2014 the Council adopted a range of 
alternatives for widow rockfish QS reallocation, and in April 2015 made 
a final recommendation to NMFS to reallocate widow rockfish using a 
modified target species formula.
    Accumulation limits in the IFQ program cap the amount of QS or 
individual bycatch quota (IBQ) that a person, individually or 
collectively, may own or control (QS and IBQ control limits), and set 
limits on the amount of quota pounds (QP) that a vessel may catch or 
hold in its vessel account during the year (annual vessel limits). 
Overfished species such as widow rockfish also have QP vessel limits 
(also called daily limits) that restrict the amount of available 
overfished species QP that a vessel account can hold on any given day.

Proposed Action

    NMFS proposes this rule to: (1) Reallocate widow rockfish QS in the 
shorebased IFQ fishery to more closely reflect historic target fishing 
opportunities; (2) remove the moratorium on widow QS trading once 
reallocation and any appeals are completed; (3) set a divestiture 
deadline in case the reallocation puts any QS permit owner over the 
widow rockfish QS control limit or the aggregate nonwhiting control 
limit; and (4) remove the overfished species daily vessel limit for 
widow rockfish that restricts the amount of available QP that any 
vessel owner can hold on a given day. Each of these proposed actions is 
described in further detail below.

Widow Rockfish Reallocation

    In 2011, NMFS initially allocated QS for 29 different species to 
limited entry trawl permit owners in the form of a new QS permit and 
associated online account (lingcod was later subdivided into two areas, 
so there are currently 30 IFQ species). Each year NMFS allocates QPs to 
QS permit owners in their online accounts, based on the amount of QS 
each permit owner holds and the current sector allocation. QS permit 
owners must transfer these pounds to a vessel account in order for them 
to be fished, and when a vessel goes out fishing in the IFQ program, 
the landings and discards are debited against their vessel account much 
like a check being debited against a checking account. In addition to 
transferring annual pounds to vessel accounts, QS permit owners can 
also permanently transfer shares between QS accounts (for all species 
except widow rockfish, pending the widow rockfish reallocation). When a 
QS permit owner transfers QS, they are permanently transferring their 
ability to access and use that percentage of the annual sector 
allocation. For example, if QS permit owner A sold all of their 
sablefish South of 36[deg] N to permit owner B, permit owner A would no 
longer be allocated any sablefish South of 36[deg] N. QPs in future 
years.
    The QS and IBQ that was initially allocated in 2011 was calculated 
in four different groups, with four different allocation formulas: 21 
target species in ``Group 1;'' 6 incidentally caught overfished 
species, including widow rockfish, in ``Group 2;'' canary rockfish--an 
incidentally-caught overfished species calculated using a different 
formula than Group 2 species--in ``Group 3;'' and Pacific halibut IBQ 
in ``Group 4.''
    The widow rockfish stock was overfished at the time of initial 
allocation, and therefore widow QS was calculated using a Group 2 
formula. Because the Group 2 formula was based on the amount of target 
species (Group 1 species) QS the permit owner received, the Group 2 QS 
allocations purposely did not reflect the historical fishing efforts of 
fishermen who may have targeted those Group 2 species before they 
became overfished; instead the goal was to address the QS recipient's 
need to cover incidental catch of those overfished species based on 
their allocations of target species.
    Consistent with Amendment 20, and at the urging of some fishermen 
who were interested in a redistribution of widow rockfish QS to reflect 
target history instead of bycatch needs, the Council adopted a range of 
widow reallocation alternatives for consideration in November 2014, 
including: Alternative 1--status quo (no reallocation); Alternative 2--
a reallocation based on the Group 1 species formula used at the time of 
initial allocation, with two suboptions

[[Page 42297]]

to determine the split of widow rockfish QS between whiting and 
nonwhiting trips; Alternative 3--a reallocation based on nonwhiting 
groundfish revenue as a basis for recent participation; and Alternative 
4--a reallocation that was a mix between Alternatives 1 and 2, where a 
portion of widow QS would not be reallocated, and a portion would be 
reallocated using the formula from Alternative 2. In April 2015, the 
Council selected the midpoint between the two Alternative 2 suboptions 
to establish a final alternative, Alternative 5.
    In coming to its final preferred alternative, Alternative 5, the 
Council took into account the expected impacts of each alternative on 
harvesters, processors, workers, investments, and communities, using 
the most recent data available, as reflected in the environmental 
assessment. The Council considered the geographic distribution of 
impacts among the communities in Washington, Oregon, and California. 
The Council chose to blend the Alternative 2 suboptions, which set 
proportions for reallocating widow rockfish based on whiting and 
nonwhiting trips, to balance impacts to the whiting and nonwhiting 
fisheries. Of all the alternatives, the Council's final preferred 
alternative moves the most directly toward reestablishing the targeted 
widow rockfish fishery and is therefore expected to better achieve 
optimum yield and more immediately benefit struggling communities.
    The proposed action would reallocate widow rockfish QS to 
individual QS permit owners in the IFQ program using the formula the 
Council selected in its final preferred alternative. This formula is 
very similar to the Group 1 species calculation that was initially used 
to allocate target species QS in 2011. Specifically, NMFS would 
reallocate widow rockfish in two parts: One portion based on the 
history of permits retired in the 2003 buyback program, divided equally 
among qualified limited entry trawl permits, and the other portion 
based on widow rockfish landings history. NMFS would continue to hold 
10 percent of the total widow QS aside for the adaptive management 
program (AMP).
    For the portion of the reallocation resulting from the buyback, 
this rule proposes to use landings history from Federal limited entry 
groundfish permits that were retired through the 2003 Federal buyback 
program. NMFS would calculate the total buyback permit history as a 
percent of the total fleet history from 1994-2003, separately for 
whiting and nonwhiting trips. The whiting and nonwhiting QS pools 
associated with the buyback permits would be divided equally among all 
qualifying limited entry permits.
    For the portion of the reallocation resulting from widow rockfish 
landings history, this rule proposes to allocate one pool of QS based 
on the amount of Pacific whiting QS allocated for each permit, and the 
other pool based on the amount of widow rockfish caught on nonwhiting 
trips between 1994 and 2002, dropping the three lowest years. The 
Council's final preferred alternative excluded 2003 from nonwhiting 
trip history since widow rockfish was managed for rebuilding from late 
2002-2012, and the 2003 regulations aimed to eliminate widow targeting. 
Because only a few nonwhiting vessels made widow landings in 2003 and 
because the proposed reallocation formula calculates history based on a 
limited entry trawl permit's share of the fleet total for each year, a 
relatively small amount of widow landed by a single permit in 2003 
would constitute a large portion of the fleet total for that year and 
have a disproportionate effect on the widow QS reallocation. The 
Council decided that this disproportionate allocation would be unfair, 
and that fishermen who harvested widow in the nonwhiting fishery when 
it was overfished should not be rewarded with additional QS from those 
trips. The Council therefore excluded 2003 from the nonwhiting landings 
history portion of the allocation formula.
    The Council's final preferred alternative reallocates widow 
rockfish based on the Group 1 species calculation that was initially 
used to allocate target species QS in 2011. For the portion of the 
reallocation resulting from the buyback, the 1994-2003 period reflects 
the years used for Group 1 species at the time of initial allocation. 
For the portion of the reallocation resulting from widow rockfish 
landings history, 2003 was dropped from the nonwhiting pool for the 
reasons described above. 2003 landings would have a minimal impact on 
the amount of buyback QS allocated equally because all landings would 
be summed across all years and the buyback portion would be a subset of 
that total. Therefore no adjustment was made to the years used for the 
buyback portion (1994-2003). In contrast, 2003 landings would have a 
disproportionate impact on the portion of widow QS reallocated based on 
nonwhiting landings history because each permit's portion of landings 
is determined for each year. Instead of being spread equally (like 
buyback QS), including 2003 would allocate a disproportionate amount of 
widow QS directly to fishermen who targeted widow rockfish in the 
nonwhiting fishery when widow rockfish was overfished, as described 
above. For these reasons, 2003 history is included in all parts of the 
formula except the nonwhiting pool of the landings history portion.
    To determine how much of the total QS for each limited entry 
permit's widow rockfish landings history would be based on whiting 
trips versus nonwhiting trips, NMFS proposes to weigh each pool 
according to the initial issuance allocation formula specified in 
Amendment 21 and current regulations at Sec.  660.140(d)(8)(iv)(A)(10) 
(which anticipated widow rockfish rebuilding). The formula states that 
10 percent or 500 metric tons (mt), whichever is greater, will be 
allocated to the whiting sectors (shorebased and at-sea whiting), and 
the remaining amount will be allocated to the nonwhiting shorebased 
sector.
    By blending the two suboptions for Alternative 2, the Council 
established a one-time annual catch limit (ACL) value for widow of 
2,569 metric tons (mt) to use for the initial issuance allocation 
formula. This ACL value is needed to determine the harvest guideline 
amount, limited entry trawl allocation, and whiting and nonwhiting 
sector allocations. The whiting sector allocation is then subdivided 
into shorebased and at-sea sector allocations. The shorebased whiting 
and non-whiting allocations can then be compared in order to set the 
percentages NMFS would use to weigh whiting and nonwhiting history in 
the reallocation formula. Figure 1 below walks through the entire 
calculation from the ACL value to the shorebased whiting and nonwhiting 
percentages that NMFS proposes to use for widow reallocation, and a 
full description of the calculation follows.

[[Page 42298]]

[GRAPHIC] [TIFF OMITTED] TP29JN16.000

    NMFS proposes to use an ACL value of 2,569 mt, the midpoint of the 
two Alternative 2 suboptions as given in the Council's final preferred 
alternative, in order to determine how much of the total QS for each 
limited entry permit's widow rockfish landings history would be based 
on whiting trips versus nonwhiting trips. NMFS proposes to use a set-
aside amount of 120 mt, the same value used for the widow rockfish set-
aside in 2016 (in Table 2a to 50 CFR part 660, subpart C), to determine 
the harvest guidelines amount. NMFS would subtract the set-aside amount 
(120 mt) from the ACL (2,569 mt) in order to determine the harvest 
guideline amount (2,449 mt).
    Next, NMFS proposes to use a limited entry trawl/non-limited entry 
trawl split of 91 percent and 9 percent, respectively, the same split 
percentages used in the 2015-2016 harvest specifications (in Tables 1b 
and 2b to 50 CFR part 660, subpart C), to determine the limited entry 
trawl and non-limited entry trawl allocations. NMFS would multiply the 
harvest guidelines (2,449 mt) by 91 percent in order to determine the 
limited entry trawl allocation (2,228.59 mt), and by 9 percent in order 
to determine the non-limited entry trawl allocation (220.41 mt).
    As described above, NMFS proposes to use the initial issuance 
allocation formula specified in Amendment 21 and current regulations at 
Sec.  660.140(d)(8)(iv)(A)(10) to determine how much of the limited 
entry trawl allocation (2,228.59 mt) would be allocated to the whiting 
and nonwhiting sectors. The formula states that 10 percent or 500 mt, 
whichever is greater, will be allocated to the whiting sectors 
(shorebased and at-sea whiting), and the remaining amount will be 
allocated to the shorebased nonwhiting sector. 500 mt is greater than 
10 percent of the limited entry trawl allocation (222.859 mt), so NMFS 
would allocate 500 mt to the whiting sectors. The remaining amount of 
the limited entry trawl allocation, 1,728.59 mt, would be allocated to 
the shorebased nonwhiting sector.
    NMFS proposes to further divide the whiting allocation into 
shorebased and at-sea whiting sector allocations using a split of 42 
percent and 58 percent, respectively, as specified in Amendment 21 and 
current regulations at Sec.  660.55(f)(2). NMFS would allocate 42 
percent of 500 mt (210 mt) to the shorebased whiting sector, and 58 
percent of 500 mt (290 mt) to the at-sea whiting sectors.
    Next, NMFS proposes to combine the shorebased whiting and 
nonwhiting allocations to determine the total shorebased sector 
allocation. Based on the proposed calculation above, the 210 mt 
shorebased whiting sector allocation would be added to the 1,728.59 mt 
shorebased nonwhiting sector allocation, for a total shorebased sector 
allocation of 1,938.59 mt. The shorebased whiting sector allocation is 
10.833 percent of the total shorebased sector allocation (210 mt 
divided by 1,938.59 mt). The shorebased nonwhiting sector allocation is 
89.167 percent of the total shorebased sector allocation (1,728.59 mt 
divided by 1,938.59 mt). NMFS proposes to use these percentages to 
determine how much of the total QS for each limited entry permit's 
widow rockfish landings history would be based on whiting trips versus 
nonwhiting trips.
    Different ACLs cause different QS amounts to be allocated based on 
whiting and nonwhiting trips. The Alternative 2 suboptions, suboptions 
a and b, set two different ACL levels (2,000 mt and 3,790 mt, 
respectively), and the Council chose the midpoint of those suboptions 
(2,569 mt) in order to balance the impacts of widow rockfish 
reallocation to the shorebased whiting and nonwhiting fisheries. The 
midpoint ACL was chosen such that each limited entry trawl permit would 
receive QS based on whiting and nonwhiting landing trip history in an 
amount that is the midpoint of what their QS would have been under 
suboptions a and b (2,569 mt), rather than the midpoint between 2,000 
mt and 3,790 mt (2,895 mt). Table 1 below shows the whiting/nonwhiting 
split outcomes of each of the Alternative 2 suboptions, and the 
Council's final preferred alternative whiting/nonwhiting split, which 
is the midpoint of suboptions a and b.

[[Page 42299]]



                  Table 1--Whiting/Nonwhiting Split Suboptions and Final Preferred Alternative
                                            [Midpoint of suboptions]
----------------------------------------------------------------------------------------------------------------
                                                                                                       Final
                                                                      Alt 2--         Alt 2--        preferred
                                                                    suboption a     suboption b    alternative--
                                                                       (mt)            (mt)        midpoint (mt)
----------------------------------------------------------------------------------------------------------------
ACL.............................................................           2,000           3,790           2,569
Set Asides......................................................             120             120             120
Harvest Guidelines (= ACL - set asides).........................           1,880           3,670           2,449
Limited Entry Trawl (= 91% of harvest guidelines)...............         1,710.8         3,339.7        2,228.59
Non-Limited Entry Trawl (= 9% of harvest guidelines)............           169.2           330.3          220.41
Whiting Sectors (= 10% of limited entry trawl allocation, or 500             500             500             500
 mt, whichever is greater)......................................
Shorebased Nonwhiting (remaining LE trawl)......................         1,210.8         2,839.7        1,728.59
At-Sea Whiting (= 58% of whiting sector allocation).............             290             290             290
Shorebased Whiting (= 42% of whiting sector allocation).........             210             210             210
Total Shorebased Allocation (= shorebased nonwhiting +                   1,420.8         3,049.7        1,938.59
 shorebased whiting)............................................
Whiting trip percentage for widow rockfish QS landings history..         14.780%          6.886%         10.833%
Nonwhiting trip percentage for widow rockfish QS landings                85.220%         93.114%         89.167%
 history........................................................
----------------------------------------------------------------------------------------------------------------

Eligibility

    QS permit owners are only eligible for a reallocation of widow 
rockfish if they are one of the 128 original QS permit owners who 
initially received a QS permit in 2011 based on limited entry trawl 
permit ownership. The 10 shorebased whiting processors who received 
initial QS permits with an allocation of Pacific whiting only are not 
eligible to receive reallocated widow rockfish QS. Those QS permit 
owners who have obtained a QS permit since 2014 when NMFS accepted new 
QS permit applications are not eligible to receive reallocated widow 
rockfish QS. However, since 2011, NMFS has received several U.S. court 
orders directing NMFS to transfer assets of a deceased person to a 
beneficiary. For those new QS permits to which NMFS administratively 
transferred widow rockfish QS based on a U.S. court order, NMFS will 
reallocate widow rockfish QS directly to these new QS permits because 
the shares were transferred through a legal process to a beneficiary. 
Limited entry trawl permit owners who did not apply for and receive a 
QS permit in 2011 are not eligible for reallocated widow rockfish QS; 
instead any history accruing to their permit will be redistributed 
among all other QS permit owners in proportion to their reallocated 
widow rockfish QS. If any QS permit owner submits a complete widow 
rockfish QS reallocation application but does not renew their QS permit 
and account for 2017, NMFS would still reallocate widow rockfish QS to 
the permit owner but, as stated currently in regulation, would not 
allocate QP for any species to a non-renewed permit. The permit owner 
could renew for the following year, which would enable him or her to 
receive and transfer QP.
    Past landings history associated with each limited entry trawl 
permit will accrue to the current QS permit owner who received initial 
QS for that limited entry permit, even if the limited entry trawl 
permit ownership has changed since 2011. For example, if the fictitious 
company XYZ Fishing owned two limited entry trawl permits in 2010: 
Permit A and Permit B, they would have received a QS permit (QS Permit 
#1) in 2011 with an initial issuance of QS that was based on the 
history of limited entry trawl Permits A and B. For the purposes of 
widow rockfish reallocation, the linkage between limited entry trawl 
Permits A and B and QS Permit #1 will remain in place, so that QS 
Permit #1 will be reallocated widow rockfish QS based on the history 
from limited entry trawl Permits A and B, regardless of who owns those 
limited entry trawl permits now. If XYZ Fishing sold both limited entry 
trawl permits in 2013, and therefore no longer owns them at the time 
widow rockfish is reallocated, the company would still receive the 
reallocated widow rockfish QS from limited entry Permits A and B to QS 
Permit #1.
    Based on the Council's action, NMFS proposes to reallocate widow 
rockfish based on the limited entry permit and QS permit relationship 
described above because the limited entry permit ownership was severed 
from the QS permit ownership at the time QS permits became effective in 
2011. After that time, limited entry trawl permits could be sold 
without any effect on the QS holdings, and QS percentages could be 
transferred without any effect on the limited entry permit. It is 
likely that QS permit owners would not have sold their limited entry 
trawl permits if they thought they would not receive the reallocated 
widow rockfish QS, and similarly, it is likely that any persons who 
purchased a limited entry trawl permit did not believe that they would 
receive any future QS as part of the purchase.
    For purposes of the widow rockfish reallocation calculation, NMFS 
intends to use landings data from the Pacific States Marine Fisheries 
Commission's PacFIN database. Although QS permit owners had the 
opportunity to review and revise their data in 2009, they may not have 
reviewed their widow rockfish history closely at that time, since widow 
rockfish was overfished and the QS allocation used a Group 2 formula 
that was not based on widow landings. NMFS wants to provide an 
opportunity for this review before we ``freeze'' the database for 
purposes of reallocation. ``Freezing'' the database means that NMFS 
intends to extract a dataset of the PacFIN database as of July 27, 
2016, and will use that dataset for the reallocation of widow rockfish. 
QS permit owners have been on notice since 2012 that widow rockfish 
might be reallocated, and have been able to review their fish ticket 
data since that time. NMFS also specified at the April 2016 Council 
meeting that we intended to use landings data from the PacFIN database 
to calculate the reallocated widow rockfish QS, and that we planned to 
provide permit owners the opportunity to review their widow catch data 
before we take a snapshot of the database for the purpose of 
reallocation.
    If QS permit owners in the shorebased trawl IFQ program have 
concerns over the accuracy of their widow rockfish data in the PacFIN 
database, they should contact the state in which they landed those fish 
to correct any errors. Any revisions to an entity's fish tickets would 
have to be approved by the state in order to be accepted, and must be

[[Page 42300]]

completed as of the date we freeze the database in order for the 
updated information to be used for the widow rockfish reallocation 
formula. State contacts are as follows: (1) Washington--Marjorie 
Morningstar (360-902-2854, [email protected]); (2) 
Oregon--Nadine Hurtado (503-947-6247, [email protected]); and 
(3) California--Marine Fisheries Statistical Unit (562-342-7130).

Application Process

    After NMFS freezes the database for the purpose of reallocation, 
and assuming the final rule publishes, we will mail prefilled 
applications and widow rockfish reallocation QS amounts to each 
eligible QS permit owner (calculated using the formula in the final 
rule). On the application, the applicant (the QS permit owner) must: 
(1) Indicate whether or not they accept NMFS' calculation of the 
reallocated widow rockfish QS for each limited entry trawl permit, (2) 
provide a written description of what part of the reallocation formula 
requires correction and credible information to support the request for 
correction if they do not accept the calculation, and (3) sign, date 
and declare that the information in the application is true, correct 
and complete. NMFS proposes that complete, certified applications would 
be due to NMFS West Coast Region on or before September 15, 2016, that 
mailed applications would be postmarked no later than September 15, 
2016, and that hand-delivered applications would be received no later 
than 5 p.m. on September 15, 2016. NMFS would not accept or review any 
applications postmarked or received in person after the application 
deadline, and any QS permit owner who does not submit an application 
would not be eligible to receive reallocated widow rockfish QS. NMFS 
would not accept applications by email. NMFS would redistribute the 
shares from any incomplete or non-submitted applications to all other 
QS permit owners who are eligible for a reallocation of widow rockfish 
QS in proportion to their reallocated widow QS amount.
    Assuming the rule will be final, for all complete, certified 
applications that were received by the application deadline date, NMFS 
would issue an initial administrative determination (IAD) on or before 
October 1, 2016. In the IAD, NMFS would inform the applicant whether or 
not their application for reallocated widow rockfish QS was approved. 
Applicants would have 60 calendar days from the date of the IAD to 
appeal the decision. If any appeals were received, NMFS would 
reallocate widow QS amounts in 2017 consistent with all of the IADs and 
await any action resulting from an appeal until 2018. More information 
is provided below about how the appeals process would affect the widow 
rockfish QS trading start date and the divestiture deadline.
    If an application is approved, the QS permit owner would receive a 
2017 QS permit showing the new widow rockfish QS amount in December 
2016, and the new QS percentage would show in the associated QS account 
on or about January 1, 2017. The 2017 IFQ sector allocation for widow 
rockfish would be allocated to QS accounts on or about January 1, 2017, 
based on the reallocated widow rockfish QS amount.

Widow Rockfish QS Trading

    Widow rockfish QS has not been transferrable at any time since the 
start of the IFQ program in 2011. The Council and NMFS initially placed 
a two-year moratorium on QS trading for all IFQ species in order to 
create stability during the transition to a new management system. In 
2012, the Council decided to reconsider the initial widow rockfish QS 
allocations, and halted future trading of widow rockfish QS until the 
reconsideration could be completed. In August 2012, NMFS delayed QS 
trading for all species for an additional year in response to unrelated 
litigation that required the Council and NMFS to reconsider the initial 
allocation of Pacific whiting. In 2013 NMFS put into regulation a 
moratorium for the transfer of widow rockfish QS until the reallocation 
could be considered and implemented, but QS trading for all other IFQ 
species began on January 1, 2014. Since that time, QS permit owners 
have been able to transfer QS for all species except widow rockfish.
    NMFS proposes to lift the moratorium on the transfer of widow 
rockfish QS once the reallocation is completed and any resulting 
appeals have been processed; successful appeals could affect all 
reallocation amounts. Under the proposed rule, once QS permit owners 
have their reallocated QS percentages, and can be sure those 
percentages would not change as the result of an appeal, permit owners 
could begin trading. If NMFS does not receive any appeals by the 
appeals deadline, we propose to lift the moratorium on widow rockfish 
QS trading for January 1, 2017. If NMFS receives any appeals by the 
deadline, we propose to lift the moratorium on widow rockfish QS 
trading for January 1, 2018, because that is the date when any appeal 
outcome that might cause a change in widow allocations would be 
finalized. NMFS proposes to announce the official start date of widow 
rockfish QS trading through a public notice in December 2016, once we 
are able to determine whether appeals have been submitted.

Deadline for Divestiture

    Control limits in the IFQ program cap the amount of QS or IBQ that 
a person, individually or collectively, may own or control. Amendment 
20 and implementing regulations set individual control limits for each 
of the 30 IFQ species, as well as an aggregate limit of 2.7 percent 
across nonwhiting species. The individual control limit for widow 
rockfish is 5.1 percent. Consistent with the trawl rationalization 
program, some QS permit owners were initially allocated an amount of QS 
and IBQ that exceeded one or more of the control limits, based on their 
catch history during the qualifying years. The regulations provided 
these QS permit owners an adjustment period to hold the excess shares, 
but required divestiture of excess QS by November 30, 2015, for all 
species except widow rockfish, because widow rockfish QS was being 
considered for reallocation and could not be traded.
    When NMFS reallocates widow rockfish, we propose to allocate the 
full amount the applicant qualifies for, even if it pushes the permit 
owner over the 5.1 percent control limit for widow, or the 2.7 percent 
nonwhiting aggregate limit. NMFS would allow the QS permit owner an 
adjustment period to hold the excess shares and divest, consistent with 
the process that was used during initial allocation in 2011. Should the 
reallocation of widow rockfish put any QS permit owner over a QS 
control limit, NMFS, based on the Council's recommendation, proposes to 
set a divestiture deadline of November 30 in the year widow rockfish QS 
becomes transferrable. If NMFS does not receive any appeals on the 
reallocation, widow QS would become transferrable on or about January 
1, 2017, and any QS permit owner who exceeded the control limit as the 
result of the reallocation would have until November 30, 2017, to 
divest of their excess holdings. If NMFS does receive one or more 
appeals, widow QS would become transferrable on or about January 1, 
2018, and any QS permit owner who exceeded the control limit as the 
result of the reallocation would have until November 30, 2018, to 
divest of their excess holdings. QS trading occurs between January 1 
through November 30 each year, but trading is halted in the month of

[[Page 42301]]

December so that NMFS can set QP allocations based on the static year-
end amount of QS and mail QS permits that are effective January 1 of 
the following year. This 11-month adjustment period would allow the 
permit owner to benefit from one year of holding excess QS, and from 
the sale or gifting of such an excess, but they would be required to 
divest of their excess in a timely manner, consistent with existing 
regulatory procedures.

Widow Rockfish Daily Vessel Limit

    Vessel limits in vessel accounts restrict the amount of QPs that 
any vessel can catch or hold. Annual QP vessel limits are a set 
percentage of the IFQ sector allocation, and NMFS calculates and 
publishes a table annually showing the quota pound equivalents. For 
example, the annual QP vessel limit for widow rockfish is 8.5 percent 
of the current year's sector allocation. In 2016, the IFQ sector 
allocation for widow rockfish is 3,131,931 pounds, so the maximum 
amount any vessel owner can catch or bring into their vessel account in 
2016 is 8.5 percent of the sector allocation, or 266,214 pounds. Unused 
QP vessel limits, also called ``daily vessel limits,'' only apply to 
overfished species and cap the amount of overfished species QPs any 
vessel account can have sitting available in their account on a given 
day. For example, the daily QP vessel limit for widow rockfish is 5.1 
percent, or 159,728 pounds in 2016, which is lower than the annual QP 
vessel limit. So if a vessel account owner held the full daily vessel 
limit amount (159,728 pounds) available in their account and then 
caught 20,000 pounds, they would have 139,728 available QPs and could 
bring in 20,000 more, up to the daily and annual vessel limit.
    The Council and NMFS established daily vessel limits to prevent 
hoarding of available overfished species QPs in any one vessel account, 
since the IFQ sector allocations of some overfished species are so low. 
Now that widow rockfish is rebuilt, and the ACL has increased, NMFS 
proposes to remove the daily vessel limit since daily vessel limits 
only apply to overfished species. NMFS would remove the daily vessel 
limit for widow rockfish only, and would not change widow's annual 
vessel limit or the vessel limit of any other species. This change 
would better reflect the status of widow rockfish as rebuilt, and allow 
fishermen to hold the full annual vessel limit at any time if they 
chose to do so, in line with every other non-overfished IFQ species.

Classification

    Pursuant to sections 304(b)(1)(A) and 305(d) of the Magnuson-
Stevens Act (MSA), the NMFS Assistant Administrator has determined that 
this proposed rule is consistent with the Pacific Coast Groundfish 
Fishery Management Plan, other provisions of the MSA, and other 
applicable law, subject to further consideration after public comment.
    The Council prepared an environmental assessment (EA) for this 
action. The draft EA is available on the Council's Web site at http://www.pcouncil.org/ or on NMFS' Web site at http://www.westcoast.fisheries.noaa.gov/fisheries/groundfish_catch_shares/rules_regulations/trawl_regulations_compliance_guides.html.
    NMFS is amending the supporting statement for the Pacific Coast 
groundfish trawl rationalization program permit and license information 
collection Office of Management and Business (OMB) Paperwork Reduction 
Act (PRA) requirements (OMB Control No. 0648-0620) to include an 
application form for widow rockfish reallocation. NMFS estimates the 
public reporting burden for this collection of information to average 
one hour per form, including the time for reviewing instructions, 
reviewing data and calculations for reallocated widow rockfish QS, and 
completing the form. NMFS requests any comments on the addition of the 
widow rockfish reallocation application form to the PRA package, 
including whether the paperwork would unnecessarily burden any QS 
permit owners.
    Pursuant to the procedures established to implement section 6 of 
Executive Order 12866, the Office of Management and Budget has 
determined that this proposed rule is not significant.
    This proposed rule was developed after meaningful collaboration, 
through the Council process, with the tribal representative on the 
Council. The proposed regulations have no direct effect on the tribes.
    NMFS prepared an initial regulatory flexibility analysis (IRFA) for 
this rule, as required by section 603 of the Regulatory Flexibility Act 
(RFA). The IRFA describes the economic impact that this proposed rule, 
if adopted, would have on small entities. A description of the action, 
why it is being considered, and the legal basis for this action are 
contained in the preamble and in the SUMMARY section of the preamble. A 
Regulatory Impact Review (RIR) was also prepared on the action and is 
included as part of the IRFA. A copy of the IRFA is available from NMFS 
(see ADDRESSES) and per the requirements of 5 U.S.C. 604(a), a summary 
of the IRFA follows:
    When an agency proposes regulations, the RFA requires the agency to 
prepare and make available for public comment an IRFA that describes 
the impact on small businesses, non-profit enterprises, local 
governments, and other small entities. The IRFA aids the agency in 
considering all reasonable regulatory alternatives that would minimize 
the economic impact on affected small entities.
    The Small Business Administration defines a ``small'' harvesting 
business as one with combined annual receipts of $11 million or less 
for all affiliated operations worldwide. For related fish-processing 
businesses, a small business is one that employs 750 or fewer persons 
for all affiliated operations worldwide.
    This rule affects 128 QS permit owners who have received widow 
quota shares. When renewing their QS permits, permit owners are asked 
if they considered themselves small businesses based on the SBA 
definitions of small businesses provided above. Based on their 
responses, NMFS estimates that there are 110 small businesses affected 
by this rule.
    In January 2011, NMFS implemented the trawl rationalization program 
(a catch share program) for the Pacific coast groundfish limited entry 
trawl fishery, which includes an individual fishing quota program for 
limited entry trawl participants. At the time of implementation, the 
widow rockfish stock was overfished and quota shares were allocated to 
quota share permit owners in the individual fishing quota program using 
an overfished species formula. Now that widow rockfish has been 
rebuilt, NMFS proposes to reallocate quota shares to initial recipients 
based on a target species formula that will more closely represent the 
fishing history of permit owners when widow rockfish was a targeted 
species. Through this rule NMFS also proposes to allow the trading of 
widow rockfish quota shares, set a deadline for divestiture in case the 
reallocation of widow rockfish puts any QS permit owner over an 
accumulation limit, and remove the daily vessel limit for widow 
rockfish since it is no longer an overfished species. The reallocation 
of widow rockfish and lifting of the moratorium are the major measures 
analyzed below. Setting the divestiture deadline is administrative in 
nature, while elimination of the daily limit is

[[Page 42302]]

already required because widow is no longer an overfished species.
    The Council adopted a range of widow rockfish reallocation 
alternatives for consideration in November 2014 including: Alternative 
1--status quo (no reallocation), Alternative 2--reallocate widow using 
same formula (Group I species formula) that was used for other target 
species at the at the time of initial allocation, Alternative 3--
reallocate widow based on nonwhiting groundfish revenue as a basis for 
recent participation, and Alternative 4--reallocate widow by blending 
Alternatives 1 and 2, where a portion of widow QS would not be 
reallocated, and a portion would be reallocated using the formula from 
Alternative 2. In April 2015, the Council selected Alternative 2 as its 
final preferred alternative, and blended two suboptions for the 
alternative into a final suboption-Alternative 5.
    In assessing these alternatives, the Council took into account 
expected impacts of each alternative on harvesters, processors, 
workers, investments, and communities, using the most recent data 
available, as reflected in the environmental assessment. The Council 
recognized its final decision as drawing a balance between impacts to 
the whiting and nonwhiting fishery, not allocating too much away from 
any one sector, re-establishing historic fisheries, and the geographic 
distribution of impacts among the communities in Washington, Oregon, 
and California. This action is part of an overall program designed to 
ensure that conservation objectives are met and is focused on 
mitigating some of the distributional effects of those conservation 
measures. As compared to Alternatives 3 or 4, Alternative 2 and the 
Council's final preferred alternative, Alternative 5, move most 
directly toward reestablishing the targeted widow rockfish fishery and 
is therefore expected to better achieve the OY and more immediately 
benefit struggling communities.
    The economic dimensions of the fishery are as follows. Annual widow 
rockfish ex-vessel revenues in the shorebased trawl sector ranged from 
$5 million to $6 million (inflation adjusted) in the mid-1990s. Annual 
ex-vessel revenues in the pre-trawl rationalization rebuilding era 
(2002-2010) averaged about $0.1 million. Since the start of trawl 
rationalization (2011-2014), annual ex-vessel values averaged $0.3 
million. (Widow rockfish was determined to be rebuilt in 2011 and was 
no longer managed under a rebuilding plan beginning in the 2013-2014 
biennial harvest specifications). Estimated widow catch has increased 
every year: in 2013, approximately 400 mt were caught; in 2014, 
approximately 650 mt were caught; and in 2015, about 840 mt were 
caught. With an ex-vessel price of $0.41 per pound, the total revenues 
earned in the 2015 fishery are about $760,000. The 2016 sector 
allocation for widow is similar to 2015, and recognizing past growth of 
the fishery, landings may reach 1,000 mt.
    Widow rockfish is just one of many species landed on the West 
Coast. During 2015, landings of groundfish, crab, salmon, and other 
species, generated $335 million in ex-vessel revenues. 2015 groundfish 
ex-vessel revenues were about $64 million with IFQ revenues estimated 
at $42 million. Widow rockfish ex-vessel revenues were about $760,000, 
constituting a very small percentage of total groundfish ex-vessel 
revenues.
    If the Council increases the 2017 ACL from 2,000 mt (No Action) to 
13,508 mt (Alternative 1), revenues could grow to $9.0 million if 
prices do not change, the number of non-whiting mid-water trawlers 
rapidly increases, and if processors could process the increased widow 
rockfish landings and find the proper markets. These changes would 
yield an increase of $23.1 million in total West Coast income impacts, 
and an increase of an estimated 320 jobs.
    This rulemaking proposes to reallocate widow rockfish QS and allow 
those shares to be traded. With trading, QS will flow to those QS 
holders that most efficiently can use the QS--by using the associated 
QP to support their own vessels, selling or leasing the QP to other 
vessels, or by selling the QS to others. At the fishery level, in the 
long run, the alternatives reviewed here will not have a major effect 
on the overall amount of fish landed and processed across all the 
groundfish fishing communities.
    At the individual quota share holder level, this rule affects the 
starting point by which QS is traded and the amounts that can be traded 
by individual QS holders. Depending on the alternative, the total 
amount of QS that is to be reallocated in the IFQ fishery ranges from 
0% (Alternative 1, Status Quo, Bycatch) to 28.2% (Alternative 5, 
Alternative 2 Midpoint). Based on ex-vessel price of $0.41 per pound, 
and projected sector allocations of 12,000 mt based on 2017 ACL of 
13,500 mt, and projected attainment rate of 80%, the annual value of 
the quota pounds associated with a potential transfer of 28.2% of the 
quota shares is about $2.5 million. Depending on the alternative, the 
potential transfer of QS among communities ranges from 0 to 18%. The 
annual value of quota pounds associated with QS being transferred is 
about $1.5 million based on the 2017 ACL.
    The proposed 2017-18 ACLs of 13,500 mt and 13,800 mt are six times 
higher than 2015-2016 ACLs. From a fishery-wide perspective, there 
should not be any negative impacts on communities, QS holders, or 
processors because of the increase in ACLs. This huge increase in the 
ACLs provides increased opportunities for all of these participants.
    However, with any reallocation scheme there are some that are 
negatively impacted. The maximum reduction for a QS holder under either 
Alternative 2 or 5 is about 1.9%. Based on 2015 revenues of $760,000, 
the QP associated with this reduction would have a value of $15,000. 
Under the 2017 ACL, estimated revenues are $9.0 million, and a loss of 
1.9% would be worth about $175,000. At an individual level, these two 
values represent maximum 2015 losses ($15,000) versus maximum potential 
future losses should the high ACL be implemented, prices stay constant, 
and 80 percent of the sector allocation be harvested ($175,000). Others 
will be positively impacted. The maximum increase for a QS holder under 
any alternative is about 2%.
    NMFS does not believe that small businesses as a class of QS 
holders will be negatively impacted by the proposed reallocation of 
widow rockfish QS. The reallocation options in large part decrease 
widow QS holdings for some small businesses while increasing QS 
holdings for other small businesses, based on historical reliance on 
widow rockfish as a target species. Trading of widow QS should also be 
beneficial to all small businesses as it gives these businesses the 
option to buy, sell, or lease their widow QS. Setting the divesture 
deadline gives any affected entities time to sell off their excess QS. 
Eliminating the no-longer-needed daily vessel limit for widow rockfish 
provides more flexibility to small businesses.

List of Subjects in 50 CFR Part 660

    Fisheries, Fishing, Indian fisheries.

    Dated: June 23, 2016.
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 660 is 
proposed to be amended as follows:

[[Page 42303]]

PART 660--FISHERIES OFF WEST COAST STATES

0
1. The authority citation for part 660 continues to read as follows:

    Authority:  16 U.S.C. 1801 et seq., 16 U.S.C. 773 et seq., and 
16 U.S.C. 7001 et seq.

0
2. In Sec.  660.140:
0
a. Revise paragraphs (d)(3)(ii)(B)(2) and (d)(4)(v);
0
b. Add paragraph (d)(9); and
0
c. Revise paragraph (e)(4)(i) to read as follows:


Sec.  660.140  Shorebased IFQ Program.

* * * * *
    (d) * * *
    (3) * * *
    (ii) * * *
    (B) * * *
    (2) Transfer of QS or IBQ between QS accounts. Beginning January 1, 
2014, QS permit owners may transfer QS (except for widow rockfish QS) 
or IBQ to another owner of a QS permit, subject to accumulation limits 
and approval by NMFS. Beginning January 1, 2017 (if there are no 
appeals to the reallocation of widow rockfish), or January 1, 2018 (if 
there are appeals to the reallocation of widow rockfish), QS permit 
owners may transfer widow rockfish QS to another owner of a QS permit, 
subject to accumulation limits and approval by NMFS. NMFS will announce 
the QS transfer date for widow rockfish prior to January 1, 2017. QS or 
IBQ cannot be transferred to a vessel account. Owners of non-renewed QS 
permits may not transfer QS. QP in QS accounts cannot be transferred 
between QS accounts. NMFS will allocate QP based on the QS percentages 
as listed on a QS permit that was renewed during the previous October 1 
through November 30 renewal period. QS transfers will be recorded in 
the QS account but will not become effective for purposes of allocating 
QPs until the following year. QS or IBQ may not be transferred between 
December 1 through December 31 each year. Any QS transaction that is 
pending as of December 1 will be administratively retracted. NMFS will 
allocate QP for the following year based on the QS percentages as of 
December 1 of each year.
* * * * *
    (4) * * *
    (v) Divestiture. Accumulation limits will be calculated by first 
calculating the aggregate non-whiting QS limit and then the individual 
species QS or IBQ control limits. For QS permit owners (including any 
person who has ownership interest in the owner named on the permit) 
that are found to exceed the accumulation limits during the 
reallocation of widow rockfish QS, an adjustment period will be 
provided during which they will have to completely divest their QS or 
IBQ in excess of the accumulation limits. If NMFS identifies that a QS 
permit owner exceeds the accumulation limits in 2016 or beyond, the QS 
permit owner must divest of the QS or IBQ in excess of the accumulation 
limits according to the procedure provided under paragraph (d)(4)(v)(A) 
or (B) of this section. Owners of QS or IBQ in excess of the control 
limits may receive and use the QP or IBQ pounds associated with that 
excess, up to the time their divestiture is completed.
    (A) Divestiture and redistribution process in 2016 and beyond. Any 
person owning or controlling QS or IBQ must comply with the 
accumulation limits, even if that control is not reflected in the 
ownership records available to NMFS as specified under paragraphs 
(d)(4)(i) and (iii) of this section. If NMFS identifies that a QS 
permit owner exceeds an accumulation limit in 2016 or beyond for a 
reason other than the reallocation of widow rockfish, NMFS will notify 
the QS permit owner that he or she has 90 days to divest of the excess 
QS or IBQ. In the case that a QS permit owner exceeds the control limit 
for aggregate nonwhiting QS holdings, the QS permit owner may abandon 
QS to NMFS within 60 days of the notification by NMFS, using the 
procedure provided under paragraph (d)(4)(v)(C) of this section. After 
the 90-day divestiture period, NMFS will revoke all QS or IBQ held by a 
person (including any person who has ownership interest in the owner 
names on the permit) in excess of the accumulation limits following the 
procedures specified under paragraphs (d)(4)(v)(D) through (G) of this 
section. All abandoned or revoked shares will be redistributed to all 
other QS permit owners in proportion to their QS or IBQ holdings on or 
about January 1 of the following calendar year, based on current 
ownership records, except that no person will be allocated an amount of 
QS or IBQ that would put that person over an accumulation limit.
    (B) Divestiture and redistribution process for the reallocation of 
widow rockfish. Any person owning or controlling QS or IBQ must comply 
with the accumulation limits, even if that control is not reflected in 
the ownership records available to NMFS as specified under paragraphs 
(d)(4)(i) and (iii) of this section. If the reallocation of widow 
rockfish puts any QS permit owner over an accumulation limit, the QS 
permit owner will have until widow rockfish becomes transferrable to 
divest of their excess widow rockfish QS. In the case that a QS permit 
owner exceeds the control limit for aggregate nonwhiting QS holdings as 
the result of the reallocation of widow rockfish, the permit owner may 
abandon QS to NMFS by November 15 of the year widow rockfish becomes 
transferrable, using the procedure provided under paragraph 
(d)(4)(v)(C) of this section. After the widow rockfish reallocation 
divestiture period, NMFS will revoke all QS and IBQ held by a person 
(including any person who has ownership interest in the owner names on 
the permit) in excess of the accumulation limits following the 
procedures specified under paragraphs (d)(4)(v)(D) through (G) of this 
section. All abandoned or revoked shares will be redistributed to all 
other QS permit owners in proportion to their QS or IBQ holdings on or 
about January 1 of the following calendar year, based on current 
ownership records, except that no person will be allocated an amount of 
QS or IBQ that would put that person over an accumulation limit.
    (C) Abandonment of QS. QS permit owners that are over the control 
limit for aggregate nonwhiting QS holdings may voluntarily abandon QS 
if they notify NMFS in writing by the applicable deadline specified 
under paragraph (d)(4)(v)(A) or (B) of this section. The written 
abandonment request must include the following information: QS permit 
number, IFQ species, and the QS percentage to be abandoned. Either the 
QS permit owner or an authorized representative of the QS permit owner 
must sign the request. QS permit owners choosing to utilize the 
abandonment option will permanently relinquish to NMFS any right to the 
abandoned QS, and the QS will be redistributed as described under 
paragraph (d)(4)(v)(A) or (B) of this section. No compensation will be 
due for any abandoned shares.
    (D) Revocation. NMFS will revoke QS from any QS permit owner who 
exceeds an accumulation limit after the divestiture deadline specified 
under paragraph (d)(4)(v)(A) or (B) of this section. NMFS will follow 
the revocation approach summarized in the following table and explained 
under paragraphs (d)(4)(v)(E) through (G) of this section:

[[Page 42304]]



------------------------------------------------------------------------
 If, after the divestiture deadline, a
     QS permit owner exceeds . . .                  Then . . .
------------------------------------------------------------------------
An individual species control limit in   NMFS will revoke excess QS at
 one QS permit.                           the species level.
An individual species control limit      NMFS will revoke QS at the
 across multiple QS permits.              species level in proportion to
                                          the amount the QS percentage
                                          from each permit contributes
                                          to the total QS percentage
                                          owned.
The control limit for aggregate          NMFS will revoke QS at the
 nonwhiting QS holdings.                  species level in proportion to
                                          the amount of the aggregate
                                          overage divided by the
                                          aggregate total owned.
------------------------------------------------------------------------

    (E) Revocation of excess QS or IBQ from one QS permit. In cases 
where a person has not divested to the control limits for individual 
species in one QS permit by the deadline specified under paragraph 
(d)(4)(v)(A) or (B) of this section, NMFS will revoke excess QS at the 
species level in order to get that person to the limits. NMFS will 
redistribute the revoked QS following the process specified in 
paragraph (d)(4)(v)(A) or (B) of this section. No compensation will be 
due for any revoked shares.
    (F) Revocation of excess QS or IBQ from multiple QS permits. In 
cases where a person has not divested to the control limits for 
individual species across QS permits by the deadline specified under 
paragraph (d)(4)(v)(A) or (B) of this section, NMFS will revoke QS at 
the species level in proportion to the amount the QS percentage from 
each permit contributes to the total QS percentage owned. NMFS will 
redistribute the revoked QS following the process specified in 
paragraph (d)(4)(v)(A) or (B) of this section. No compensation will be 
due for any revoked shares.
    (G) Revocation of QS in excess of the control limit for aggregate 
nonwhiting QS holdings. In cases where a QS permit owner has not 
divested to the control limit for aggregate nonwhiting QS holdings by 
the deadline specified under paragraph (d)(4)(v)(A) or (B) of this 
section, NMFS will revoke QS at the species level in proportion to the 
amount of the aggregate overage divided by the aggregate total owned. 
NMFS will redistribute the revoked QS following the process in 
paragraph (d)(4)(v)(A) or (B) of this section. No compensation will be 
due for any revoked shares.
* * * * *
    (9) Reallocation of widow rockfish QS. (i) Additional definitions. 
The following definitions are applicable to paragraph (d)(9) of this 
section and apply to terms used for the purposes of reallocation of 
widow rockfish QS:
    (A) Nonwhiting trip means a fishing trip where less than 50 percent 
by weight of all fish reported on the state landing receipt is whiting.
    (B) PacFIN means the Pacific Fisheries Information Network of the 
Pacific States Marine Fisheries Commission.
    (C) Relative history means the landings history of a permit for a 
species, year, and area subdivision, divided by the total fleet history 
of the sector for that species, year, and area subdivision, as 
appropriate.
    (D) Whiting trip means a fishing trip where greater than or equal 
to 50 percent by weight of all fish reported on the state landing 
receipt is whiting.
    (ii) Eligibility criteria for receiving reallocated widow rockfish 
QS. Only the owner of an original QS permit (non-shoreside processor) 
to which QS was initially allocated in 2011 is eligible to receive 
reallocated widow rockfish QS based on the history of the limited entry 
trawl permit(s) that accrued to that QS permit, regardless of current 
limited entry permit ownership. For those new QS permits to which widow 
rockfish was administratively transferred by NMFS under U.S. court 
order, NMFS will reallocate widow rockfish QS directly to the new QS 
permit. Any limited entry trawl permit owners who did not submit an 
initial application for a QS permit will not be eligible to receive 
reallocated widow rockfish QS.
    (iii) Steps for widow rockfish QS reallocation formula. The widow 
rockfish QS reallocation formula is applied in the following steps:
    (A) First, for each limited entry trawl permit, NMFS will determine 
a preliminary QS allocation for non-whiting trips.
    (B) Second, for each limited entry trawl permit, NMFS will 
determine a preliminary QS allocation for whiting trips.
    (C) Third, for each limited entry trawl permit, NMFS will combine 
the amounts resulting from paragraphs (d)(9)(iii)(A) and (B) of this 
section.
    (D) Fourth, NMFS will reduce the total widow QS reallocated to QS 
permit owners by 10 percent as a set aside for AMP.
    (iv) Reallocation formula for specific widow rockfish QS amounts.
    (A) Reallocation formula rules. The following rules will be applied 
to data for the purpose of calculating the initial reallocation of 
widow rockfish QS:
    (1) Limited entry trawl permits will be assigned catch history or 
relative history based on the landing history of the vessel(s) 
associated with the permit at the time the landings were made.
    (2) The relevant PacFIN dataset includes species compositions based 
on port sampled data and applied to data at the vessel level.
    (3) Only landings of widow rockfish which were caught in the 
exclusive economic zone or adjacent state waters off Washington, Oregon 
and California will be used for calculating the reallocation of widow 
rockfish QS.
    (4) History from limited entry trawl permits that have been 
combined with a permit that qualified for a C/P endorsement and which 
has shorebased permit history will not be included in the preliminary 
QS and IBQ allocation formula, other than in the determination of fleet 
history used in the calculation of relative history for permits that do 
not have a C/P endorsement.
    (5) History of illegal landings and landings made under non-whiting 
EFPs that are in excess of the cumulative limits in place for the non-
EFP fishery will not count toward the allocation of QS.
    (6) The limited entry trawl permit's landings history includes the 
landings history of permits that have been previously combined with 
that permit.
    (7) If two or more limited entry trawl permits have been 
simultaneously registered to the same vessel, NMFS will split the 
landing history evenly between all such limited entry trawl permits 
during the time they were simultaneously registered to the vessel.
    (8) Unless otherwise noted, the calculation for the reallocation of 
widow rockfish QS under paragraph (d)(9) will be based on state landing 
receipts (fish tickets) as recorded in the relevant PacFIN dataset on 
July 27, 2016.
    (9) For limited entry trawl permits, landings under provisional 
``A'' permits that did not become ``A'' permits and ``B'' permits will 
not count toward the reallocation of widow QS, other than in the 
determination of fleet history used in the calculation of relative 
history for permits that do not have a C/P endorsement.
    (10) For limited entry trawl permits, NMFS will calculate the 
reallocation of widow rockfish QS separately based on

[[Page 42305]]

whiting trips and nonwhiting trips, and will weigh each calculation 
according to a split between whiting trips and nonwhiting trips of 
10.833 percent for whiting trips and 89.167 percent for nonwhiting 
trips, which is a one-time proportion necessary for the reallocation 
formula.
    (B) Preliminary widow rockfish QS reallocation for nonwhiting 
trips. The preliminary reallocation process in paragraph (d)(9)(iii)(A) 
of this section follows a two-step process, one to allocate a pool of 
QS equally among all eligible limited entry permits and the other to 
allocate the remainder of the preliminary QS based on permit history. 
Through these two processes, preliminary QS totaling 100 percent will 
be allocated. In later steps, this will be adjusted and reduced as 
indicated in paragraph (d)(9)(iii)(C) and (D) to determine the QS 
allocation.
    (1) QS to be allocated equally. The pool of QS for equal allocation 
will be determined using the nonwhiting trip landings history from 
Federal limited entry groundfish permits that were retired through the 
Federal buyback program (i.e., buyback program) (68 FR 42613, July 18, 
2003). The nonwhiting trip QS pool associated with the buyback permits 
will be the buyback permit history as a percent of the total fleet 
history for the 1994 to 2003 nonwhiting trip reallocation period. The 
calculation will be based on total absolute pounds with no dropped 
years and no other adjustments. The QS pool associated with the buyback 
permits will be divided equally among all qualifying limited entry 
permits.
    (2) QS to be allocated based on each permit's history. The pool of 
QS for allocation based on limited entry trawl permit nonwhiting trip 
history will be the QS remaining after subtracting out the QS allocated 
equally. This pool will be allocated to each qualifying limited entry 
trawl permit based on the permit's relative nonwhiting trip history 
from 1994 through 2002, dropping the three lowest years. For each 
limited entry trawl permit, NMFS will calculate relative history using 
the following methodology. First, NMFS will sum the permit's widow 
rockfish landings on nonwhiting trips for each year in the reallocation 
period. Second, NMFS will divide each permit's annual sum by the 
shoreside limited entry trawl fleet's annual sum. NMFS will then 
calculate a total relative history for each permit by adding all 
relative histories for the permit together and subtracting the three 
years with the lowest relative history for the permit. The result for 
each permit will be divided by the aggregate sum of all total relative 
histories of all qualifying limited entry trawl permits. NMFS will then 
multiply the result from this calculation by the amount of QS in the 
pool to be allocated based on each permit's history.
    (C) Preliminary widow rockfish QS reallocation for whiting trips. 
The preliminary reallocation process in paragraph (d)(9)(iii)(B) of 
this section follows a two-step process, one to allocate a pool of QS 
equally among all eligible limited entry permits and the other to 
allocate the remainder of the preliminary QS based on permit history. 
Through these two processes, preliminary QS totaling 100 percent will 
be allocated. In later steps, this will be adjusted and reduced as 
indicated in paragraph (d)(9)(iii)(C) and (D) to determine the QS 
allocation.
    (1) QS to be allocated equally. The pool of QS for equal allocation 
will be determined using whiting trip landings history from Federal 
limited entry groundfish permits that were retired through the Federal 
buyback program (i.e., buyback program) (68 FR 42613, July 18, 2003). 
The whiting trip QS pool associated with the buyback permits will be 
the buyback permit history as a percent of the total fleet history for 
the 1994 to 2003 whiting trip reallocation period. The calculation will 
be based on total absolute pounds with no dropped years and no other 
adjustments. The QS pool associated with the buyback permits will be 
divided equally among all qualifying limited entry permits.
    (2) QS to be allocated based on each permit's history. The pool of 
QS for allocation based on each limited entry trawl permit's whiting 
trip history will be the QS remaining after subtracting out the QS 
allocated equally. Widow rockfish QS for this pool will be allocated 
pro-rata based on each limited entry trawl permit's whiting QS from 
whiting trips that was established in 2010 and used to allocate the 
whiting trip portion of whiting QS at the time of initial 
implementation in 2011. Pro-rata means a percent that is equal to the 
percent of whiting QS from whiting trips.
    (D) QS from limited entry permits calculated separately for non-
whiting trips and whiting trips. NMFS will calculate the portion of 
widow QS a limited entry trawl permit receives based on non-whiting 
trips and whiting trips separately, and will weight each preliminary QS 
in proportion to the one-time reallocation percentage between whiting 
trips and non-whiting trips of 10.833 percent and 89.167 percent, 
respectively.
    (1) Nonwhiting trips. To determine the amount of widow QS for non-
whiting trips for each limited entry trawl permit, NMFS will multiply 
the preliminary QS for the permit from paragraph (d)(9)(iii)(A) of this 
section by the one-time reallocation percentage of 89.167 percent for 
non-whiting trips.
    (2) Whiting trips. To determine the amount of widow QS for whiting 
trips for each limited entry trawl permit, NMFS will multiply the 
preliminary QS for the permit from paragraph (d)(9)(iii)(B) of this 
section by the one-time reallocation percentage of 10.833 percent for 
whiting trips.
    (E) QS for each limited entry trawl permit. For each limited entry 
trawl permit, NMFS will add the results for the permit from paragraphs 
(d)(9)(iv)(D)(1) and (D)(2) of this section in order to determine the 
total QS widow for that permit.
    (F) Adjustment for AMP set-aside. NMFS will reduce the widow QS 
reallocated to each permit owner by a proportional amount that is 
equivalent to a reduction of 10 percent across all widow reallocation 
recipients' holdings as a set aside for AMP.
    (v) Widow rockfish QS reallocation application. Persons may apply 
for issuance of reallocated widow rockfish QS by completing and 
submitting a prequalified application. A ``prequalified application'' 
is a partially pre-filled application where NMFS has preliminarily 
determined the landings history for each limited entry trawl permit 
that qualifies the applicant for a reallocation of widow QS. The 
application package will include a prequalified application (with 
landings history). The completed application must be either postmarked 
or hand-delivered to NMFS within normal business hours no later than 
September 15, 2016. If an applicant fails to submit a completed 
application by the deadline date, they forgo the opportunity to receive 
reallocated widow rockfish QS and their percentage will be 
redistributed to other QS permit owners in proportion to their 
reallocated widow QS amount.
    (vi) Corrections to the application. If an applicant does not 
accept NMFS' calculation in the prequalified application either in part 
or whole, the applicant must identify in writing to NMFS which parts 
the applicant believes to be inaccurate, and must provide specific 
credible information to substantiate any requested corrections. The 
completed application and specific credible information must be 
provided to NMFS in writing by the application deadline. Written 
communication must either be post-marked or hand-delivered to NMFS 
within normal business hours no later than September 15, 2016.

[[Page 42306]]

Requests for corrections may only be granted for the following reasons:
    (A) Errors in NMFS' use or application of data, including:
    (1) Errors in NMFS' use or application of landings data from 
PacFIN;
    (2) Errors in NMFS' application of the reallocation formula;
    (3) Errors in identification of the QS permit owner, permit 
combinations, or vessel registration as listed in NMFS permit database;
    (vii) Submission of the application and application deadline.
    (A) Submission of the application. Submission of the complete, 
certified application includes, but is not limited to, the following:
    (1) The applicant is required to sign and date the application and 
declare that the contents are true, correct and complete.
    (2) The applicant must certify that they qualify to own reallocated 
widow rockfish QS.
    (3) The applicant must indicate they accept NMFS' calculation of 
reallocated widow rockfish QS provided in the prequalified application, 
or provide a written statement and credible information if they do not 
accept NMFS' calculation.
    (4) NMFS may request additional information of the applicant as 
necessary to make an IAD on reallocated widow rockfish QS.
    (B) Application deadline. A complete, certified application must be 
either postmarked or hand-delivered within normal business hours to 
NMFS, West Coast Region, Permits Office, Bldg. 1, 7600 Sand Point Way 
NE., Seattle, WA 98115, no later than September 15, 2016. NMFS will not 
accept or review any applications received or postmarked after the 
application deadline. There are no hardship exemptions for this 
deadline.
    (viii) Initial Administrative Determination (IAD). NMFS will issue 
an IAD for all complete, certified applications received by the 
application deadline date. If NMFS approves an application for 
reallocated widow rockfish QS, the IAD will say so, and the applicant 
will receive a 2017 QS permit specifying the reallocated amount of 
widow rockfish QS the applicant has qualified for in December 2016. If 
NMFS disapproves or partially disapproves an application, the IAD will 
provide the reasons. As part of the IAD, NMFS will indicate to the best 
of its knowledge whether the QS permit owner qualifies for QS or IBQ in 
amounts that exceed the accumulation limits and are subject to 
divestiture provisions given at paragraph (d)(4)(v) of this section. If 
the applicant does not appeal the IAD within 60 calendar days of the 
date on the IAD, the IAD becomes the final decision of the Regional 
Administrator acting on behalf of the Secretary of Commerce.
    (ix) Appeals. For reallocated widow rockfish QS issued under this 
section, the appeals process and timelines are specified at Sec.  
660.25(g), subpart C. For the reallocation of widow rockfish QS, the 
bases for appeal are described in paragraph (d)(9)(vi) of this section. 
Items not subject to appeal include, but are not limited to, the 
accuracy of permit landings data in the relevant PacFIN dataset on July 
27, 2016.
    (e) * * *
    (4) * * *
    (i) Vessel limits. For each IFQ species or species group specified 
in this paragraph, vessel accounts may not have QP or IBQ pounds in 
excess of the QP vessel limit (annual limit) in any year, and, for 
species covered by unused QP vessel limits (daily limit), may not have 
QP or IBQ pounds in excess of the unused QP vessel limit at any time. 
The QP vessel limit (annual limit) is calculated as all QPs transferred 
in minus all QPs transferred out of the vessel account. The unused QP 
vessel limits (daily limit) is calculated as unused available QPs plus 
any pending outgoing transfer of QPs.

------------------------------------------------------------------------
                                             QP Vessel       Unused QP
                                          limit  (annual   Vessel limit
            Species category                limit)  (in    (daily limit)
                                             percent)      (in percent)
------------------------------------------------------------------------
Arrowtooth flounder.....................              20  ..............
Bocaccio S. of 40[deg]10' N. lat........            15.4            13.2
Canary rockfish.........................              10             4.4
Chilipepper S. of 40[deg]10' N. lat.....              15  ..............
Cowcod S. of 40[deg]10' N. lat..........            17.7            17.7
Darkblotched rockfish...................             6.8             4.5
Dover sole..............................             3.9  ..............
English sole............................             7.5  ..............
Lingcod:
    N. of 40[deg]10' N. lat.............             5.3  ..............
    S. of 40[deg]10' N. lat.............            13.3  ..............
Longspine thornyhead:
    N. of 34[deg]27' N. lat.............               9  ..............
Minor rockfish complex N. of 40[deg]10'
 N. lat.:
    Shelf species.......................             7.5  ..............
    Slope species.......................             7.5  ..............
Minor rockfish complex S. of 40[deg]10'
 N. lat.:
    Shelf species.......................            13.5  ..............
    Slope species.......................               9  ..............
Other flatfish complex..................              15  ..............
Pacific cod.............................              20  ..............
Pacific halibut (IBQ) N. of 40[deg]10'              14.4             5.4
 N. lat.................................
Pacific ocean perch N. of 40[deg]10' N.                6               4
 lat....................................
Pacific whiting (shoreside).............              15  ..............
Petrale sole............................             4.5  ..............
Sablefish:
    N. of 36[deg] N. lat. (Monterey                  4.5  ..............
     north).............................
    S. of 36[deg] N. lat. (Conception                 15  ..............
     area)..............................
Shortspine thornyhead:
    N. of 34[deg]27' N. lat.............               9  ..............
    S. of 34[deg]27' N. lat.............               9  ..............
Splitnose rockfish S. of 40[deg]10' N.                15  ..............
 lat....................................

[[Page 42307]]

 
Starry flounder.........................              20  ..............
Widow rockfish..........................             8.5  ..............
Yelloweye rockfish......................            11.4             5.7
Yellowtail rockfish N. of 40[deg]10' N.              7.5  ..............
 lat....................................
Non-whiting groundfish species..........             3.2  ..............
------------------------------------------------------------------------

* * * * *
[FR Doc. 2016-15217 Filed 6-28-16; 8:45 am]
BILLING CODE 3510-22-P



                                                                           Federal Register / Vol. 81, No. 125 / Wednesday, June 29, 2016 / Proposed Rules                                                 42295

                                                    official comment and should include                     Each of CSAPR’s Federal trading                          Dated: June 16, 2016.
                                                    discussion of all points you wish to                    programs includes default provisions                   Mark Hague,
                                                    make. The EPA will generally not                        governing the allocation among                         Regional Administrator, Region 7.
                                                    consider comments or comment                            participating units of emission                        [FR Doc. 2016–15039 Filed 6–28–16; 8:45 am]
                                                    contents located outside of the primary                 allowances used for compliance under                   BILLING CODE 6560–50–P
                                                    submission (i.e. on the web, cloud, or                  that program. CSAPR also provides a
                                                    other file sharing system). For                         process for the submission and approval
                                                    additional submission methods, the full                 of SIP revisions to replace EPA’s default              DEPARTMENT OF COMMERCE
                                                    EPA public comment policy,                              allocations with state-determined
                                                    information about CBI or multimedia                     allocations.                                           National Oceanic and Atmospheric
                                                    submissions, and general guidance on                                                                           Administration
                                                    making effective comments, please visit                    The SIP revision approved in the
                                                    http://www2.epa.gov/dockets/                            direct final rule incorporates into
                                                                                                            Kansas’s SIP state regulations                         50 CFR Part 660
                                                    commenting-epa-dockets.
                                                    FOR FURTHER INFORMATION CONTACT: Mr.                    establishing state-determined allowance                [Docket No. 150902809–6536–01]
                                                    Larry Gonzalez, Air Planning and                        allocations to replace EPA’s default
                                                                                                                                                                   RIN 0648–BF12
                                                    Development Branch, Air and Waste                       allocations to Kansas units of CSAPR
                                                    Management Division, EPA Region 7,                      NOX Annual allowances issued for the                   Magnuson-Stevens Act Provisions;
                                                    11201 Renner Boulevard, Lenexa, KS                      control periods in 2017 through 2019.                  Fisheries Off West Coast States;
                                                    66219; telephone number: (913) 551–                     EPA is approving the SIP revision                      Pacific Coast Groundfish Fishery;
                                                    7041; email address: gonzalez.larry@                    because it meets the requirements of the               Widow Rockfish Reallocation in the
                                                    epa.gov                                                 CAA and EPA’s regulations for approval                 Individual Fishing Quota Fishery
                                                    SUPPLEMENTARY INFORMATION: This                         of an abbreviated SIP revision replacing
                                                                                                            EPA’s default allocations of CSAPR                     AGENCY:  National Marine Fisheries
                                                    document proposes to take action on a                                                                          Service (NMFS), National Oceanic and
                                                    revision to the SIP for Kansas                          emission allowances with state-
                                                                                                            determined allocations. Approval of the                Atmospheric Administration (NOAA),
                                                    concerning allocations of allowances                                                                           Commerce.
                                                    used in the Cross-State Air Pollution                   SIP revision does not alter any provision
                                                    Rule (CSAPR) 1 Federal trading program                  of the CSAPR NOX Annual Trading                        ACTION: Proposed rule; request for
                                                    for annual emissions of nitrogen oxides                 Program as applied to Kansas units                     comments.
                                                    (NOX). We have published a direct final                 other than the allowance allocation                    SUMMARY:    In January 2011, NMFS
                                                    rule approving the State’s SIP revision                 provisions, and the FIP requiring the                  implemented the trawl rationalization
                                                    (s) in the Rules and Regulations section                units to participate in that program (as               program, a type of catch share program,
                                                    of this Federal Register, because we                    modified by the SIP revision) remains in               for the Pacific coast groundfish fishery’s
                                                    view this as a noncontroversial action                  place. Because the SIP revision                        limited entry trawl fleet, which includes
                                                    and anticipate no relevant adverse                      addresses only the control periods in                  an individual fishing quota program for
                                                    comment. We have explained our                          2017 through 2019, absent submission                   limited entry trawl participants. At the
                                                    reasons for this action in the preamble                 and approval of a further SIP revision,                time of implementation, the widow
                                                    to the direct final rule. If we receive no              allocations of CSAPR NOX Annual                        rockfish stock was overfished and quota
                                                    adverse comment, we will not take                       allowances for control periods in 2020                 shares were allocated to quota share
                                                    further action on this proposed rule. If                and later years will be made pursuant to               permit owners in the individual fishing
                                                    we receive adverse comment, we will                     the default allocation provisions.                     quota program using an overfished
                                                    withdraw the direct final rule and it will                                                                     species formula. Now that the widow
                                                    not take effect. We would address all                      Large electricity generating units in
                                                                                                            Kansas are also subject to an additional               rockfish stock has been rebuilt, NMFS
                                                    public comments in any subsequent                                                                              proposes to reallocate quota shares to
                                                    final rule based on this proposed rule.                 CSAPR FIP requiring them to participate
                                                                                                                                                                   initial recipients based on a target
                                                    We do not intend to institute a second                  in the Federal CSAPR SO2 Group 2
                                                                                                                                                                   species formula that will more closely
                                                    comment period on this action. Any                      Trading Program. Kansas’ SIP submittal
                                                                                                                                                                   represent the fishing history of permit
                                                    parties interested in commenting must                   does not seek to replace the default                   owners when widow rockfish was a
                                                    do so at this time. For further                         allocations of CSAPR SO2 Group 2                       targeted species. Through this rule,
                                                    information, please see the information                 allowances to Kansas units. Approval of                NMFS also proposes to allow the
                                                    provided in the ADDRESSES section of                    this SIP revision concerning another                   trading of widow rockfish quota shares,
                                                    this document.                                          CSAPR trading program has no effect on                 set a deadline for divestiture in case the
                                                       Large electricity generating units in                the CSAPR SO2 Group 2 Trading                          reallocation of widow rockfish puts any
                                                    Kansas are subject to a CSAPR Federal                   Program as applied to Kansas units, and                QS permit owner over an accumulation
                                                    Implementation Plan (FIP) that requires                 the FIP requiring the units to participate             limit, and remove the daily vessel limit
                                                    the units to participate in the Federal                 in that program remains in place.                      for widow rockfish since it is no longer
                                                    CSAPR NOX Annual Trading Program.2                                                                             an overfished species.
                                                                                                            List of Subjects in 40 CFR Part 52
                                                      1 Federal Implementation Plans; Interstate                                                                   DATES: Comments on this proposed rule
                                                    Transport of Fine Particulate Matter and Ozone and        Environmental protection, Air                        must be received on or before July 29,
mstockstill on DSK3G9T082PROD with PROPOSALS




                                                    Correction of SIP Approvals, 76 FR 48208 (August        pollution control, Carbon monoxide,                    2016.
                                                    8, 2011), (codified as amended at 40 CFR 52.38 and
                                                    52.39 and subparts AAAAA through DDDDD of 40
                                                                                                            Incorporation by reference,                            ADDRESSES: You may submit comments
                                                    CFR part 97).                                           Intergovernmental relations, Lead,                     on this document, identified by NOAA–
                                                       2 EPA has proposed to replace the terms              Nitrogen dioxide, Ozone, Particulate                   NMFS–2016–0037, by any of the
                                                    ‘‘Transport Rule’’ and ‘‘TR’’ in the text of the Code   matter, Reporting and recordkeeping                    following methods:
                                                    of Federal Regulations with the updated terms
                                                    ‘‘Cross-State Air Pollution Rule’’ and ‘‘CSAPR.’’ 80
                                                                                                            requirements, Sulfur oxides, Volatile                     • Electronic Submission: Submit all
                                                    FR 75706, 75759 (December 3, 2015). EPA uses the        organic compounds.                                     electronic public comments via the
                                                    updated terms here.                                                                                            Federal e-Rulemaking Portal. Go to


                                               VerDate Sep<11>2014   16:48 Jun 28, 2016   Jkt 238001   PO 00000   Frm 00003   Fmt 4702   Sfmt 4702   E:\FR\FM\29JNP1.SGM   29JNP1


                                                    42296                 Federal Register / Vol. 81, No. 125 / Wednesday, June 29, 2016 / Proposed Rules

                                                    www.regulations.gov/                                    was allocated to QS permit owners                      into two areas, so there are currently 30
                                                    #!docketDetail;D=NOAA-NMFS-2016-                        using the overfished species formula.                  IFQ species). Each year NMFS allocates
                                                    0037, click the ‘‘Comment Now!’’ icon,                     Amendment 20 states that when an                    QPs to QS permit owners in their online
                                                    complete the required fields, and enter                 overfished species is rebuilt, there may               accounts, based on the amount of QS
                                                    or attach your comments.                                be a reallocation of QS to facilitate the              each permit owner holds and the
                                                       • Mail: Submit written comments to                   reestablishment of historic fishing                    current sector allocation. QS permit
                                                    William W. Stelle, Jr., Regional                        opportunities. In its May 2012 Status of               owners must transfer these pounds to a
                                                    Administrator, West Coast Region,                       the Stocks Report, NMFS officially                     vessel account in order for them to be
                                                    NMFS, 7600 Sand Point Way NE.,                          declared widow rockfish rebuilt. Based                 fished, and when a vessel goes out
                                                    Seattle, WA 98115–0070; Attn: Sarah                     on the 2011 stock assessment results,                  fishing in the IFQ program, the landings
                                                    Towne.                                                  which indicated that widow was rebuilt,                and discards are debited against their
                                                       Instructions: Comments sent by any                   the Council decided that it would                      vessel account much like a check being
                                                    other method, to any other address or                   consider a reallocation of widow                       debited against a checking account. In
                                                    individual, or received after the end of                rockfish QS. In June 2012 QS for all                   addition to transferring annual pounds
                                                    the comment period, may not be                          species was not yet transferrable, but the             to vessel accounts, QS permit owners
                                                    considered by NMFS. All comments                        Council placed a moratorium on the                     can also permanently transfer shares
                                                    received are a part of the public record                future transfer of widow rockfish QS                   between QS accounts (for all species
                                                    and will generally be posted for public                 until the reallocation could be                        except widow rockfish, pending the
                                                    viewing on www.regulations.gov                          considered, to protect permit owners                   widow rockfish reallocation). When a
                                                    without change. All personal identifying                from trading an asset that the Council                 QS permit owner transfers QS, they are
                                                    information (e.g., name, address, etc.),                might redistribute. In November 2014                   permanently transferring their ability to
                                                    confidential business information, or                   the Council adopted a range of                         access and use that percentage of the
                                                    otherwise sensitive information                         alternatives for widow rockfish QS                     annual sector allocation. For example, if
                                                    submitted voluntarily by the sender will                reallocation, and in April 2015 made a                 QS permit owner A sold all of their
                                                    be publicly accessible. NMFS will                       final recommendation to NMFS to                        sablefish South of 36° N to permit
                                                    accept anonymous comments (enter                        reallocate widow rockfish using a                      owner B, permit owner A would no
                                                    ‘‘N/A’’ in the required fields if you wish              modified target species formula.                       longer be allocated any sablefish South
                                                    to remain anonymous).                                      Accumulation limits in the IFQ                      of 36° N. QPs in future years.
                                                                                                            program cap the amount of QS or                           The QS and IBQ that was initially
                                                    FOR FURTHER INFORMATION CONTACT:
                                                                                                            individual bycatch quota (IBQ) that a                  allocated in 2011 was calculated in four
                                                    Sarah Towne, 206–526–4140,
                                                                                                            person, individually or collectively,                  different groups, with four different
                                                    sarah.towne@noaa.gov.
                                                                                                            may own or control (QS and IBQ control                 allocation formulas: 21 target species in
                                                    SUPPLEMENTARY INFORMATION:                              limits), and set limits on the amount of               ‘‘Group 1;’’ 6 incidentally caught
                                                    Background                                              quota pounds (QP) that a vessel may                    overfished species, including widow
                                                                                                            catch or hold in its vessel account                    rockfish, in ‘‘Group 2;’’ canary
                                                       In January 2011, NMFS implemented                    during the year (annual vessel limits).                rockfish—an incidentally-caught
                                                    a trawl rationalization program, which                  Overfished species such as widow                       overfished species calculated using a
                                                    is a catch share program, for the Pacific               rockfish also have QP vessel limits (also              different formula than Group 2
                                                    coast groundfish limited entry trawl                    called daily limits) that restrict the                 species—in ‘‘Group 3;’’ and Pacific
                                                    fishery. The program was implemented                    amount of available overfished species                 halibut IBQ in ‘‘Group 4.’’
                                                    through Amendments 20 and 21 to the                     QP that a vessel account can hold on                      The widow rockfish stock was
                                                    Pacific Coast Groundfish Fishery                        any given day.                                         overfished at the time of initial
                                                    Management Plan and the                                                                                        allocation, and therefore widow QS was
                                                    corresponding implementing                              Proposed Action                                        calculated using a Group 2 formula.
                                                    regulations at 50 CFR part 660.                           NMFS proposes this rule to: (1)                      Because the Group 2 formula was based
                                                    Amendment 20 established the trawl                      Reallocate widow rockfish QS in the                    on the amount of target species (Group
                                                    rationalization program that consists of:               shorebased IFQ fishery to more closely                 1 species) QS the permit owner
                                                    an individual fishing quota (IFQ)                       reflect historic target fishing                        received, the Group 2 QS allocations
                                                    program for the shorebased trawl fleet                  opportunities; (2) remove the                          purposely did not reflect the historical
                                                    (including whiting and nonwhiting                       moratorium on widow QS trading once                    fishing efforts of fishermen who may
                                                    sectors), and cooperative programs for                  reallocation and any appeals are                       have targeted those Group 2 species
                                                    the at-sea mothership and catcher/                      completed; (3) set a divestiture deadline              before they became overfished; instead
                                                    processor trawl fleets (whiting only).                  in case the reallocation puts any QS                   the goal was to address the QS
                                                    Amendment 21 set long-term allocations                  permit owner over the widow rockfish                   recipient’s need to cover incidental
                                                    for the limited entry trawl sectors of                  QS control limit or the aggregate                      catch of those overfished species based
                                                    certain groundfish species.                             nonwhiting control limit; and (4)                      on their allocations of target species.
                                                       In the IFQ fishery, NMFS initially                   remove the overfished species daily                       Consistent with Amendment 20, and
                                                    allocated quota shares (QS) based on                    vessel limit for widow rockfish that                   at the urging of some fishermen who
                                                    allocation formulas developed through                   restricts the amount of available QP that              were interested in a redistribution of
                                                    the Pacific Fishery Management Council                  any vessel owner can hold on a given                   widow rockfish QS to reflect target
                                                    (Council). Target species QS was                        day. Each of these proposed actions is                 history instead of bycatch needs, the
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                                                    allocated using limited entry trawl                     described in further detail below.                     Council adopted a range of widow
                                                    permit catch history. Overfished species                                                                       reallocation alternatives for
                                                    QS was allocated based on QS of 11                      Widow Rockfish Reallocation                            consideration in November 2014,
                                                    target species, area of catch based on                     In 2011, NMFS initially allocated QS                including: Alternative 1—status quo (no
                                                    logbook data, and average bycatch ratios                for 29 different species to limited entry              reallocation); Alternative 2—a
                                                    from observer data. The widow rockfish                  trawl permit owners in the form of a                   reallocation based on the Group 1
                                                    stock was overfished at the time of                     new QS permit and associated online                    species formula used at the time of
                                                    initial allocation, so widow rockfish QS                account (lingcod was later subdivided                  initial allocation, with two suboptions


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                                                                          Federal Register / Vol. 81, No. 125 / Wednesday, June 29, 2016 / Proposed Rules                                           42297

                                                    to determine the split of widow rockfish                permits that were retired through the                  all years and the buyback portion would
                                                    QS between whiting and nonwhiting                       2003 Federal buyback program. NMFS                     be a subset of that total. Therefore no
                                                    trips; Alternative 3—a reallocation                     would calculate the total buyback                      adjustment was made to the years used
                                                    based on nonwhiting groundfish                          permit history as a percent of the total               for the buyback portion (1994–2003). In
                                                    revenue as a basis for recent                           fleet history from 1994–2003, separately               contrast, 2003 landings would have a
                                                    participation; and Alternative 4—a                      for whiting and nonwhiting trips. The                  disproportionate impact on the portion
                                                    reallocation that was a mix between                     whiting and nonwhiting QS pools                        of widow QS reallocated based on
                                                    Alternatives 1 and 2, where a portion of                associated with the buyback permits                    nonwhiting landings history because
                                                    widow QS would not be reallocated,                      would be divided equally among all                     each permit’s portion of landings is
                                                    and a portion would be reallocated                      qualifying limited entry permits.                      determined for each year. Instead of
                                                    using the formula from Alternative 2. In                   For the portion of the reallocation                 being spread equally (like buyback QS),
                                                    April 2015, the Council selected the                    resulting from widow rockfish landings                 including 2003 would allocate a
                                                    midpoint between the two Alternative 2                  history, this rule proposes to allocate                disproportionate amount of widow QS
                                                    suboptions to establish a final                         one pool of QS based on the amount of                  directly to fishermen who targeted
                                                    alternative, Alternative 5.                             Pacific whiting QS allocated for each                  widow rockfish in the nonwhiting
                                                       In coming to its final preferred                     permit, and the other pool based on the                fishery when widow rockfish was
                                                    alternative, Alternative 5, the Council                 amount of widow rockfish caught on                     overfished, as described above. For
                                                    took into account the expected impacts                  nonwhiting trips between 1994 and                      these reasons, 2003 history is included
                                                    of each alternative on harvesters,                      2002, dropping the three lowest years.                 in all parts of the formula except the
                                                    processors, workers, investments, and                   The Council’s final preferred alternative              nonwhiting pool of the landings history
                                                    communities, using the most recent data                 excluded 2003 from nonwhiting trip                     portion.
                                                    available, as reflected in the                          history since widow rockfish was                          To determine how much of the total
                                                    environmental assessment. The Council                   managed for rebuilding from late 2002–                 QS for each limited entry permit’s
                                                    considered the geographic distribution                  2012, and the 2003 regulations aimed to                widow rockfish landings history would
                                                    of impacts among the communities in                     eliminate widow targeting. Because only                be based on whiting trips versus
                                                    Washington, Oregon, and California.                     a few nonwhiting vessels made widow                    nonwhiting trips, NMFS proposes to
                                                    The Council chose to blend the                          landings in 2003 and because the                       weigh each pool according to the initial
                                                    Alternative 2 suboptions, which set                     proposed reallocation formula                          issuance allocation formula specified in
                                                    proportions for reallocating widow                      calculates history based on a limited                  Amendment 21 and current regulations
                                                    rockfish based on whiting and                           entry trawl permit’s share of the fleet                at § 660.140(d)(8)(iv)(A)(10) (which
                                                    nonwhiting trips, to balance impacts to                 total for each year, a relatively small                anticipated widow rockfish rebuilding).
                                                    the whiting and nonwhiting fisheries.                   amount of widow landed by a single                     The formula states that 10 percent or
                                                    Of all the alternatives, the Council’s                  permit in 2003 would constitute a large                500 metric tons (mt), whichever is
                                                    final preferred alternative moves the                   portion of the fleet total for that year               greater, will be allocated to the whiting
                                                    most directly toward reestablishing the                 and have a disproportionate effect on                  sectors (shorebased and at-sea whiting),
                                                    targeted widow rockfish fishery and is                  the widow QS reallocation. The Council                 and the remaining amount will be
                                                    therefore expected to better achieve                    decided that this disproportionate                     allocated to the nonwhiting shorebased
                                                    optimum yield and more immediately                      allocation would be unfair, and that                   sector.
                                                    benefit struggling communities.                         fishermen who harvested widow in the                      By blending the two suboptions for
                                                       The proposed action would reallocate                 nonwhiting fishery when it was                         Alternative 2, the Council established a
                                                    widow rockfish QS to individual QS                      overfished should not be rewarded with                 one-time annual catch limit (ACL) value
                                                    permit owners in the IFQ program using                  additional QS from those trips. The                    for widow of 2,569 metric tons (mt) to
                                                    the formula the Council selected in its                 Council therefore excluded 2003 from                   use for the initial issuance allocation
                                                    final preferred alternative. This formula               the nonwhiting landings history portion                formula. This ACL value is needed to
                                                    is very similar to the Group 1 species                  of the allocation formula.                             determine the harvest guideline amount,
                                                    calculation that was initially used to                     The Council’s final preferred                       limited entry trawl allocation, and
                                                    allocate target species QS in 2011.                     alternative reallocates widow rockfish                 whiting and nonwhiting sector
                                                    Specifically, NMFS would reallocate                     based on the Group 1 species                           allocations. The whiting sector
                                                    widow rockfish in two parts: One                        calculation that was initially used to                 allocation is then subdivided into
                                                    portion based on the history of permits                 allocate target species QS in 2011. For                shorebased and at-sea sector allocations.
                                                    retired in the 2003 buyback program,                    the portion of the reallocation resulting              The shorebased whiting and non-
                                                    divided equally among qualified limited                 from the buyback, the 1994–2003 period                 whiting allocations can then be
                                                    entry trawl permits, and the other                      reflects the years used for Group 1                    compared in order to set the percentages
                                                    portion based on widow rockfish                         species at the time of initial allocation.             NMFS would use to weigh whiting and
                                                    landings history. NMFS would continue                   For the portion of the reallocation                    nonwhiting history in the reallocation
                                                    to hold 10 percent of the total widow                   resulting from widow rockfish landings                 formula. Figure 1 below walks through
                                                    QS aside for the adaptive management                    history, 2003 was dropped from the                     the entire calculation from the ACL
                                                    program (AMP).                                          nonwhiting pool for the reasons                        value to the shorebased whiting and
                                                       For the portion of the reallocation                  described above. 2003 landings would                   nonwhiting percentages that NMFS
                                                    resulting from the buyback, this rule                   have a minimal impact on the amount                    proposes to use for widow reallocation,
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                                                    proposes to use landings history from                   of buyback QS allocated equally because                and a full description of the calculation
                                                    Federal limited entry groundfish                        all landings would be summed across                    follows.




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                                                    42298                 Federal Register / Vol. 81, No. 125 / Wednesday, June 29, 2016 / Proposed Rules




                                                       NMFS proposes to use an ACL value                    how much of the limited entry trawl                    shorebased whiting sector allocation is
                                                    of 2,569 mt, the midpoint of the two                    allocation (2,228.59 mt) would be                      10.833 percent of the total shorebased
                                                    Alternative 2 suboptions as given in the                allocated to the whiting and nonwhiting                sector allocation (210 mt divided by
                                                    Council’s final preferred alternative, in               sectors. The formula states that 10                    1,938.59 mt). The shorebased
                                                    order to determine how much of the                      percent or 500 mt, whichever is greater,               nonwhiting sector allocation is 89.167
                                                    total QS for each limited entry permit’s                will be allocated to the whiting sectors               percent of the total shorebased sector
                                                    widow rockfish landings history would                   (shorebased and at-sea whiting), and the               allocation (1,728.59 mt divided by
                                                    be based on whiting trips versus                        remaining amount will be allocated to                  1,938.59 mt). NMFS proposes to use
                                                    nonwhiting trips. NMFS proposes to use                  the shorebased nonwhiting sector. 500                  these percentages to determine how
                                                    a set-aside amount of 120 mt, the same                  mt is greater than 10 percent of the                   much of the total QS for each limited
                                                    value used for the widow rockfish set-                  limited entry trawl allocation (222.859                entry permit’s widow rockfish landings
                                                    aside in 2016 (in Table 2a to 50 CFR                    mt), so NMFS would allocate 500 mt to                  history would be based on whiting trips
                                                    part 660, subpart C), to determine the                  the whiting sectors. The remaining                     versus nonwhiting trips.
                                                    harvest guidelines amount. NMFS                         amount of the limited entry trawl                         Different ACLs cause different QS
                                                    would subtract the set-aside amount                     allocation, 1,728.59 mt, would be                      amounts to be allocated based on
                                                    (120 mt) from the ACL (2,569 mt) in                     allocated to the shorebased nonwhiting                 whiting and nonwhiting trips. The
                                                    order to determine the harvest guideline                sector.                                                Alternative 2 suboptions, suboptions a
                                                    amount (2,449 mt).                                         NMFS proposes to further divide the                 and b, set two different ACL levels
                                                       Next, NMFS proposes to use a limited                 whiting allocation into shorebased and                 (2,000 mt and 3,790 mt, respectively),
                                                    entry trawl/non-limited entry trawl split               at-sea whiting sector allocations using a              and the Council chose the midpoint of
                                                    of 91 percent and 9 percent,                            split of 42 percent and 58 percent,                    those suboptions (2,569 mt) in order to
                                                    respectively, the same split percentages                respectively, as specified in                          balance the impacts of widow rockfish
                                                    used in the 2015–2016 harvest                           Amendment 21 and current regulations                   reallocation to the shorebased whiting
                                                    specifications (in Tables 1b and 2b to 50               at § 660.55(f)(2). NMFS would allocate                 and nonwhiting fisheries. The midpoint
                                                    CFR part 660, subpart C), to determine                  42 percent of 500 mt (210 mt) to the                   ACL was chosen such that each limited
                                                    the limited entry trawl and non-limited                 shorebased whiting sector, and 58                      entry trawl permit would receive QS
                                                    entry trawl allocations. NMFS would                     percent of 500 mt (290 mt) to the at-sea               based on whiting and nonwhiting
                                                    multiply the harvest guidelines (2,449                  whiting sectors.                                       landing trip history in an amount that
                                                    mt) by 91 percent in order to determine                    Next, NMFS proposes to combine the                  is the midpoint of what their QS would
                                                    the limited entry trawl allocation                      shorebased whiting and nonwhiting                      have been under suboptions a and b
                                                    (2,228.59 mt), and by 9 percent in order                allocations to determine the total                     (2,569 mt), rather than the midpoint
                                                    to determine the non-limited entry trawl                shorebased sector allocation. Based on                 between 2,000 mt and 3,790 mt (2,895
                                                    allocation (220.41 mt).                                 the proposed calculation above, the 210                mt). Table 1 below shows the whiting/
                                                       As described above, NMFS proposes                    mt shorebased whiting sector allocation                nonwhiting split outcomes of each of
                                                    to use the initial issuance allocation                  would be added to the 1,728.59 mt                      the Alternative 2 suboptions, and the
                                                    formula specified in Amendment 21 and                   shorebased nonwhiting sector                           Council’s final preferred alternative
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                                                    current regulations at                                  allocation, for a total shorebased sector              whiting/nonwhiting split, which is the
                                                    § 660.140(d)(8)(iv)(A)(10) to determine                 allocation of 1,938.59 mt. The                         midpoint of suboptions a and b.
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                                                                                   Federal Register / Vol. 81, No. 125 / Wednesday, June 29, 2016 / Proposed Rules                                                                           42299

                                                                                  TABLE 1—WHITING/NONWHITING SPLIT SUBOPTIONS AND FINAL PREFERRED ALTERNATIVE
                                                                                                                                                  [Midpoint of suboptions]

                                                                                                                                                                                                                                            Final
                                                                                                                                                                                                           Alt 2—          Alt 2—         preferred
                                                                                                                                                                                                         suboption a     suboption b    alternative—
                                                                                                                                                                                                            (mt)            (mt)           midpoint
                                                                                                                                                                                                                                             (mt)

                                                    ACL ..............................................................................................................................................          2,000           3,790          2,569
                                                    Set Asides ....................................................................................................................................               120             120            120
                                                    Harvest Guidelines (= ACL ¥ set asides) ..................................................................................                                  1,880           3,670          2,449
                                                    Limited Entry Trawl (= 91% of harvest guidelines) .....................................................................                                   1,710.8         3,339.7       2,228.59
                                                    Non-Limited Entry Trawl (= 9% of harvest guidelines) ...............................................................                                        169.2           330.3         220.41
                                                    Whiting Sectors (= 10% of limited entry trawl allocation, or 500 mt, whichever is greater) .......                                                            500             500            500
                                                    Shorebased Nonwhiting (remaining LE trawl) .............................................................................                                  1,210.8         2,839.7       1,728.59
                                                    At-Sea Whiting (= 58% of whiting sector allocation) ...................................................................                                       290             290            290
                                                    Shorebased Whiting (= 42% of whiting sector allocation) ..........................................................                                            210             210            210
                                                    Total Shorebased Allocation (= shorebased nonwhiting + shorebased whiting) ........................                                                       1,420.8         3,049.7       1,938.59
                                                    Whiting trip percentage for widow rockfish QS landings history .................................................                                         14.780%          6.886%        10.833%
                                                    Nonwhiting trip percentage for widow rockfish QS landings history ...........................................                                            85.220%         93.114%        89.167%



                                                    Eligibility                                                                    Past landings history associated with                                  similarly, it is likely that any persons
                                                       QS permit owners are only eligible for                                   each limited entry trawl permit will                                      who purchased a limited entry trawl
                                                    a reallocation of widow rockfish if they                                    accrue to the current QS permit owner                                     permit did not believe that they would
                                                    are one of the 128 original QS permit                                       who received initial QS for that limited                                  receive any future QS as part of the
                                                    owners who initially received a QS                                          entry permit, even if the limited entry                                   purchase.
                                                    permit in 2011 based on limited entry                                       trawl permit ownership has changed                                           For purposes of the widow rockfish
                                                    trawl permit ownership. The 10                                              since 2011. For example, if the fictitious                                reallocation calculation, NMFS intends
                                                    shorebased whiting processors who                                           company XYZ Fishing owned two                                             to use landings data from the Pacific
                                                    received initial QS permits with an                                         limited entry trawl permits in 2010:                                      States Marine Fisheries Commission’s
                                                    allocation of Pacific whiting only are                                      Permit A and Permit B, they would have                                    PacFIN database. Although QS permit
                                                    not eligible to receive reallocated widow                                   received a QS permit (QS Permit #1) in                                    owners had the opportunity to review
                                                    rockfish QS. Those QS permit owners                                         2011 with an initial issuance of QS that                                  and revise their data in 2009, they may
                                                    who have obtained a QS permit since                                         was based on the history of limited                                       not have reviewed their widow rockfish
                                                    2014 when NMFS accepted new QS                                              entry trawl Permits A and B. For the                                      history closely at that time, since widow
                                                    permit applications are not eligible to                                     purposes of widow rockfish                                                rockfish was overfished and the QS
                                                    receive reallocated widow rockfish QS.                                      reallocation, the linkage between                                         allocation used a Group 2 formula that
                                                    However, since 2011, NMFS has                                               limited entry trawl Permits A and B and                                   was not based on widow landings.
                                                    received several U.S. court orders                                          QS Permit #1 will remain in place, so                                     NMFS wants to provide an opportunity
                                                    directing NMFS to transfer assets of a                                      that QS Permit #1 will be reallocated                                     for this review before we ‘‘freeze’’ the
                                                    deceased person to a beneficiary. For                                       widow rockfish QS based on the history                                    database for purposes of reallocation.
                                                    those new QS permits to which NMFS                                          from limited entry trawl Permits A and                                    ‘‘Freezing’’ the database means that
                                                    administratively transferred widow                                          B, regardless of who owns those limited                                   NMFS intends to extract a dataset of the
                                                    rockfish QS based on a U.S. court order,                                    entry trawl permits now. If XYZ Fishing                                   PacFIN database as of July 27, 2016, and
                                                    NMFS will reallocate widow rockfish                                         sold both limited entry trawl permits in                                  will use that dataset for the reallocation
                                                    QS directly to these new QS permits                                         2013, and therefore no longer owns                                        of widow rockfish. QS permit owners
                                                    because the shares were transferred                                         them at the time widow rockfish is                                        have been on notice since 2012 that
                                                    through a legal process to a beneficiary.                                   reallocated, the company would still                                      widow rockfish might be reallocated,
                                                    Limited entry trawl permit owners who                                       receive the reallocated widow rockfish                                    and have been able to review their fish
                                                    did not apply for and receive a QS                                          QS from limited entry Permits A and B                                     ticket data since that time. NMFS also
                                                    permit in 2011 are not eligible for                                         to QS Permit #1.                                                          specified at the April 2016 Council
                                                    reallocated widow rockfish QS; instead                                         Based on the Council’s action, NMFS                                    meeting that we intended to use
                                                    any history accruing to their permit will                                   proposes to reallocate widow rockfish                                     landings data from the PacFIN database
                                                    be redistributed among all other QS                                         based on the limited entry permit and                                     to calculate the reallocated widow
                                                    permit owners in proportion to their                                        QS permit relationship described above                                    rockfish QS, and that we planned to
                                                    reallocated widow rockfish QS. If any                                       because the limited entry permit                                          provide permit owners the opportunity
                                                    QS permit owner submits a complete                                          ownership was severed from the QS                                         to review their widow catch data before
                                                    widow rockfish QS reallocation                                              permit ownership at the time QS                                           we take a snapshot of the database for
                                                    application but does not renew their QS                                     permits became effective in 2011. After                                   the purpose of reallocation.
                                                    permit and account for 2017, NMFS                                           that time, limited entry trawl permits                                       If QS permit owners in the shorebased
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                                                    would still reallocate widow rockfish                                       could be sold without any effect on the                                   trawl IFQ program have concerns over
                                                    QS to the permit owner but, as stated                                       QS holdings, and QS percentages could                                     the accuracy of their widow rockfish
                                                    currently in regulation, would not                                          be transferred without any effect on the                                  data in the PacFIN database, they
                                                    allocate QP for any species to a non-                                       limited entry permit. It is likely that QS                                should contact the state in which they
                                                    renewed permit. The permit owner                                            permit owners would not have sold                                         landed those fish to correct any errors.
                                                    could renew for the following year,                                         their limited entry trawl permits if they                                 Any revisions to an entity’s fish tickets
                                                    which would enable him or her to                                            thought they would not receive the                                        would have to be approved by the state
                                                    receive and transfer QP.                                                    reallocated widow rockfish QS, and                                        in order to be accepted, and must be


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                                                    42300                 Federal Register / Vol. 81, No. 125 / Wednesday, June 29, 2016 / Proposed Rules

                                                    completed as of the date we freeze the                  date of the IAD to appeal the decision.                is the date when any appeal outcome
                                                    database in order for the updated                       If any appeals were received, NMFS                     that might cause a change in widow
                                                    information to be used for the widow                    would reallocate widow QS amounts in                   allocations would be finalized. NMFS
                                                    rockfish reallocation formula. State                    2017 consistent with all of the IADs and               proposes to announce the official start
                                                    contacts are as follows: (1)                            await any action resulting from an                     date of widow rockfish QS trading
                                                    Washington—Marjorie Morningstar                         appeal until 2018. More information is                 through a public notice in December
                                                    (360–902–2854, marjorie.morningstar@                    provided below about how the appeals                   2016, once we are able to determine
                                                    dfw.wa.gov); (2) Oregon—Nadine                          process would affect the widow rockfish                whether appeals have been submitted.
                                                    Hurtado (503–947–6247,                                  QS trading start date and the divestiture
                                                                                                                                                                   Deadline for Divestiture
                                                    nadine.hurtado@state.or.us); and (3)                    deadline.
                                                    California—Marine Fisheries Statistical                    If an application is approved, the QS                  Control limits in the IFQ program cap
                                                    Unit (562–342–7130).                                    permit owner would receive a 2017 QS                   the amount of QS or IBQ that a person,
                                                                                                            permit showing the new widow rockfish                  individually or collectively, may own or
                                                    Application Process                                     QS amount in December 2016, and the                    control. Amendment 20 and
                                                       After NMFS freezes the database for                  new QS percentage would show in the                    implementing regulations set individual
                                                    the purpose of reallocation, and                        associated QS account on or about                      control limits for each of the 30 IFQ
                                                    assuming the final rule publishes, we                   January 1, 2017. The 2017 IFQ sector                   species, as well as an aggregate limit of
                                                    will mail prefilled applications and                    allocation for widow rockfish would be                 2.7 percent across nonwhiting species.
                                                    widow rockfish reallocation QS                          allocated to QS accounts on or about                   The individual control limit for widow
                                                    amounts to each eligible QS permit                      January 1, 2017, based on the                          rockfish is 5.1 percent. Consistent with
                                                    owner (calculated using the formula in                  reallocated widow rockfish QS amount.                  the trawl rationalization program, some
                                                    the final rule). On the application, the                                                                       QS permit owners were initially
                                                    applicant (the QS permit owner) must:                   Widow Rockfish QS Trading                              allocated an amount of QS and IBQ that
                                                    (1) Indicate whether or not they accept                    Widow rockfish QS has not been                      exceeded one or more of the control
                                                    NMFS’ calculation of the reallocated                    transferrable at any time since the start              limits, based on their catch history
                                                    widow rockfish QS for each limited                      of the IFQ program in 2011. The Council                during the qualifying years. The
                                                    entry trawl permit, (2) provide a written               and NMFS initially placed a two-year                   regulations provided these QS permit
                                                    description of what part of the                         moratorium on QS trading for all IFQ                   owners an adjustment period to hold the
                                                    reallocation formula requires correction                species in order to create stability                   excess shares, but required divestiture
                                                    and credible information to support the                 during the transition to a new                         of excess QS by November 30, 2015, for
                                                    request for correction if they do not                   management system. In 2012, the                        all species except widow rockfish,
                                                    accept the calculation, and (3) sign, date              Council decided to reconsider the initial              because widow rockfish QS was being
                                                    and declare that the information in the                 widow rockfish QS allocations, and                     considered for reallocation and could
                                                    application is true, correct and                        halted future trading of widow rockfish                not be traded.
                                                    complete. NMFS proposes that                            QS until the reconsideration could be                     When NMFS reallocates widow
                                                    complete, certified applications would                  completed. In August 2012, NMFS                        rockfish, we propose to allocate the full
                                                    be due to NMFS West Coast Region on                     delayed QS trading for all species for an              amount the applicant qualifies for, even
                                                    or before September 15, 2016, that                      additional year in response to unrelated               if it pushes the permit owner over the
                                                    mailed applications would be                            litigation that required the Council and               5.1 percent control limit for widow, or
                                                    postmarked no later than September 15,                  NMFS to reconsider the initial                         the 2.7 percent nonwhiting aggregate
                                                    2016, and that hand-delivered                           allocation of Pacific whiting. In 2013                 limit. NMFS would allow the QS permit
                                                    applications would be received no later                 NMFS put into regulation a moratorium                  owner an adjustment period to hold the
                                                    than 5 p.m. on September 15, 2016.                      for the transfer of widow rockfish QS                  excess shares and divest, consistent
                                                    NMFS would not accept or review any                     until the reallocation could be                        with the process that was used during
                                                    applications postmarked or received in                  considered and implemented, but QS                     initial allocation in 2011. Should the
                                                    person after the application deadline,                  trading for all other IFQ species began                reallocation of widow rockfish put any
                                                    and any QS permit owner who does not                    on January 1, 2014. Since that time, QS                QS permit owner over a QS control
                                                    submit an application would not be                      permit owners have been able to transfer               limit, NMFS, based on the Council’s
                                                    eligible to receive reallocated widow                   QS for all species except widow                        recommendation, proposes to set a
                                                    rockfish QS. NMFS would not accept                      rockfish.                                              divestiture deadline of November 30 in
                                                    applications by email. NMFS would                          NMFS proposes to lift the moratorium                the year widow rockfish QS becomes
                                                    redistribute the shares from any                        on the transfer of widow rockfish QS                   transferrable. If NMFS does not receive
                                                    incomplete or non-submitted                             once the reallocation is completed and                 any appeals on the reallocation, widow
                                                    applications to all other QS permit                     any resulting appeals have been                        QS would become transferrable on or
                                                    owners who are eligible for a                           processed; successful appeals could                    about January 1, 2017, and any QS
                                                    reallocation of widow rockfish QS in                    affect all reallocation amounts. Under                 permit owner who exceeded the control
                                                    proportion to their reallocated widow                   the proposed rule, once QS permit                      limit as the result of the reallocation
                                                    QS amount.                                              owners have their reallocated QS                       would have until November 30, 2017, to
                                                       Assuming the rule will be final, for all             percentages, and can be sure those                     divest of their excess holdings. If NMFS
                                                    complete, certified applications that                   percentages would not change as the                    does receive one or more appeals,
                                                    were received by the application                        result of an appeal, permit owners could               widow QS would become transferrable
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                                                    deadline date, NMFS would issue an                      begin trading. If NMFS does not receive                on or about January 1, 2018, and any QS
                                                    initial administrative determination                    any appeals by the appeals deadline, we                permit owner who exceeded the control
                                                    (IAD) on or before October 1, 2016. In                  propose to lift the moratorium on                      limit as the result of the reallocation
                                                    the IAD, NMFS would inform the                          widow rockfish QS trading for January                  would have until November 30, 2018, to
                                                    applicant whether or not their                          1, 2017. If NMFS receives any appeals                  divest of their excess holdings. QS
                                                    application for reallocated widow                       by the deadline, we propose to lift the                trading occurs between January 1
                                                    rockfish QS was approved. Applicants                    moratorium on widow rockfish QS                        through November 30 each year, but
                                                    would have 60 calendar days from the                    trading for January 1, 2018, because that              trading is halted in the month of


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                                                                          Federal Register / Vol. 81, No. 125 / Wednesday, June 29, 2016 / Proposed Rules                                            42301

                                                    December so that NMFS can set QP                        Classification                                         and is included as part of the IRFA. A
                                                    allocations based on the static year-end                   Pursuant to sections 304(b)(1)(A) and               copy of the IRFA is available from
                                                    amount of QS and mail QS permits that                   305(d) of the Magnuson-Stevens Act                     NMFS (see ADDRESSES) and per the
                                                    are effective January 1 of the following                (MSA), the NMFS Assistant                              requirements of 5 U.S.C. 604(a), a
                                                    year. This 11-month adjustment period                   Administrator has determined that this                 summary of the IRFA follows:
                                                    would allow the permit owner to benefit                 proposed rule is consistent with the                      When an agency proposes regulations,
                                                    from one year of holding excess QS, and                 Pacific Coast Groundfish Fishery                       the RFA requires the agency to prepare
                                                    from the sale or gifting of such an                     Management Plan, other provisions of                   and make available for public comment
                                                    excess, but they would be required to                   the MSA, and other applicable law,                     an IRFA that describes the impact on
                                                    divest of their excess in a timely                      subject to further consideration after                 small businesses, non-profit enterprises,
                                                    manner, consistent with existing                        public comment.                                        local governments, and other small
                                                    regulatory procedures.                                     The Council prepared an                             entities. The IRFA aids the agency in
                                                                                                            environmental assessment (EA) for this                 considering all reasonable regulatory
                                                    Widow Rockfish Daily Vessel Limit                                                                              alternatives that would minimize the
                                                                                                            action. The draft EA is available on the
                                                       Vessel limits in vessel accounts                     Council’s Web site at http://                          economic impact on affected small
                                                    restrict the amount of QPs that any                     www.pcouncil.org/ or on NMFS’ Web                      entities.
                                                    vessel can catch or hold. Annual QP                     site at http://                                           The Small Business Administration
                                                    vessel limits are a set percentage of the               www.westcoast.fisheries.noaa.gov/                      defines a ‘‘small’’ harvesting business as
                                                    IFQ sector allocation, and NMFS                         fisheries/groundfish_catch_shares/                     one with combined annual receipts of
                                                    calculates and publishes a table                        rules_regulations/trawl_regulations_                   $11 million or less for all affiliated
                                                    annually showing the quota pound                        compliance_guides.html.                                operations worldwide. For related fish-
                                                    equivalents. For example, the annual QP                    NMFS is amending the supporting                     processing businesses, a small business
                                                    vessel limit for widow rockfish is 8.5                  statement for the Pacific Coast                        is one that employs 750 or fewer
                                                    percent of the current year’s sector                    groundfish trawl rationalization                       persons for all affiliated operations
                                                    allocation. In 2016, the IFQ sector                     program permit and license information                 worldwide.
                                                    allocation for widow rockfish is                        collection Office of Management and                       This rule affects 128 QS permit
                                                    3,131,931 pounds, so the maximum                        Business (OMB) Paperwork Reduction                     owners who have received widow quota
                                                    amount any vessel owner can catch or                    Act (PRA) requirements (OMB Control                    shares. When renewing their QS
                                                    bring into their vessel account in 2016                 No. 0648–0620) to include an                           permits, permit owners are asked if they
                                                    is 8.5 percent of the sector allocation, or             application form for widow rockfish                    considered themselves small businesses
                                                    266,214 pounds. Unused QP vessel                        reallocation. NMFS estimates the public                based on the SBA definitions of small
                                                    limits, also called ‘‘daily vessel limits,’’            reporting burden for this collection of                businesses provided above. Based on
                                                    only apply to overfished species and                    information to average one hour per                    their responses, NMFS estimates that
                                                    cap the amount of overfished species                    form, including the time for reviewing                 there are 110 small businesses affected
                                                                                                            instructions, reviewing data and                       by this rule.
                                                    QPs any vessel account can have sitting
                                                    available in their account on a given                   calculations for reallocated widow                        In January 2011, NMFS implemented
                                                    day. For example, the daily QP vessel                   rockfish QS, and completing the form.                  the trawl rationalization program (a
                                                    limit for widow rockfish is 5.1 percent,                NMFS requests any comments on the                      catch share program) for the Pacific
                                                    or 159,728 pounds in 2016, which is                     addition of the widow rockfish                         coast groundfish limited entry trawl
                                                                                                            reallocation application form to the PRA               fishery, which includes an individual
                                                    lower than the annual QP vessel limit.
                                                                                                            package, including whether the                         fishing quota program for limited entry
                                                    So if a vessel account owner held the
                                                                                                            paperwork would unnecessarily burden                   trawl participants. At the time of
                                                    full daily vessel limit amount (159,728
                                                                                                            any QS permit owners.                                  implementation, the widow rockfish
                                                    pounds) available in their account and
                                                                                                               Pursuant to the procedures                          stock was overfished and quota shares
                                                    then caught 20,000 pounds, they would
                                                                                                            established to implement section 6 of                  were allocated to quota share permit
                                                    have 139,728 available QPs and could
                                                                                                            Executive Order 12866, the Office of                   owners in the individual fishing quota
                                                    bring in 20,000 more, up to the daily
                                                                                                            Management and Budget has                              program using an overfished species
                                                    and annual vessel limit.
                                                                                                            determined that this proposed rule is                  formula. Now that widow rockfish has
                                                       The Council and NMFS established                     not significant.                                       been rebuilt, NMFS proposes to
                                                    daily vessel limits to prevent hoarding                    This proposed rule was developed                    reallocate quota shares to initial
                                                    of available overfished species QPs in                  after meaningful collaboration, through                recipients based on a target species
                                                    any one vessel account, since the IFQ                   the Council process, with the tribal                   formula that will more closely represent
                                                    sector allocations of some overfished                   representative on the Council. The                     the fishing history of permit owners
                                                    species are so low. Now that widow                      proposed regulations have no direct                    when widow rockfish was a targeted
                                                    rockfish is rebuilt, and the ACL has                    effect on the tribes.                                  species. Through this rule NMFS also
                                                    increased, NMFS proposes to remove                         NMFS prepared an initial regulatory                 proposes to allow the trading of widow
                                                    the daily vessel limit since daily vessel               flexibility analysis (IRFA) for this rule,             rockfish quota shares, set a deadline for
                                                    limits only apply to overfished species.                as required by section 603 of the                      divestiture in case the reallocation of
                                                    NMFS would remove the daily vessel                      Regulatory Flexibility Act (RFA). The                  widow rockfish puts any QS permit
                                                    limit for widow rockfish only, and                      IRFA describes the economic impact                     owner over an accumulation limit, and
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                                                    would not change widow’s annual                         that this proposed rule, if adopted,                   remove the daily vessel limit for widow
                                                    vessel limit or the vessel limit of any                 would have on small entities. A                        rockfish since it is no longer an
                                                    other species. This change would better                 description of the action, why it is being             overfished species. The reallocation of
                                                    reflect the status of widow rockfish as                 considered, and the legal basis for this               widow rockfish and lifting of the
                                                    rebuilt, and allow fishermen to hold the                action are contained in the preamble                   moratorium are the major measures
                                                    full annual vessel limit at any time if                 and in the SUMMARY section of the                      analyzed below. Setting the divestiture
                                                    they chose to do so, in line with every                 preamble. A Regulatory Impact Review                   deadline is administrative in nature,
                                                    other non-overfished IFQ species.                       (RIR) was also prepared on the action                  while elimination of the daily limit is


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                                                    42302                 Federal Register / Vol. 81, No. 125 / Wednesday, June 29, 2016 / Proposed Rules

                                                    already required because widow is no                    Estimated widow catch has increased                    annual value of quota pounds associated
                                                    longer an overfished species.                           every year: in 2013, approximately 400                 with QS being transferred is about $1.5
                                                       The Council adopted a range of                       mt were caught; in 2014, approximately                 million based on the 2017 ACL.
                                                    widow rockfish reallocation alternatives                650 mt were caught; and in 2015, about                    The proposed 2017–18 ACLs of
                                                    for consideration in November 2014                      840 mt were caught. With an ex-vessel
                                                    including: Alternative 1—status quo (no                                                                        13,500 mt and 13,800 mt are six times
                                                                                                            price of $0.41 per pound, the total
                                                    reallocation), Alternative 2—reallocate                                                                        higher than 2015–2016 ACLs. From a
                                                                                                            revenues earned in the 2015 fishery are
                                                    widow using same formula (Group I                       about $760,000. The 2016 sector                        fishery-wide perspective, there should
                                                    species formula) that was used for other                allocation for widow is similar to 2015,               not be any negative impacts on
                                                    target species at the at the time of initial            and recognizing past growth of the                     communities, QS holders, or processors
                                                    allocation, Alternative 3—reallocate                    fishery, landings may reach 1,000 mt.                  because of the increase in ACLs. This
                                                    widow based on nonwhiting groundfish                       Widow rockfish is just one of many                  huge increase in the ACLs provides
                                                    revenue as a basis for recent                           species landed on the West Coast.                      increased opportunities for all of these
                                                    participation, and Alternative 4—                       During 2015, landings of groundfish,                   participants.
                                                    reallocate widow by blending                            crab, salmon, and other species,                          However, with any reallocation
                                                    Alternatives 1 and 2, where a portion of                generated $335 million in ex-vessel                    scheme there are some that are
                                                    widow QS would not be reallocated,                      revenues. 2015 groundfish ex-vessel                    negatively impacted. The maximum
                                                    and a portion would be reallocated                      revenues were about $64 million with                   reduction for a QS holder under either
                                                    using the formula from Alternative 2. In                IFQ revenues estimated at $42 million.                 Alternative 2 or 5 is about 1.9%. Based
                                                    April 2015, the Council selected                        Widow rockfish ex-vessel revenues were
                                                                                                                                                                   on 2015 revenues of $760,000, the QP
                                                    Alternative 2 as its final preferred                    about $760,000, constituting a very
                                                                                                                                                                   associated with this reduction would
                                                    alternative, and blended two suboptions                 small percentage of total groundfish ex-
                                                    for the alternative into a final suboption-             vessel revenues.                                       have a value of $15,000. Under the 2017
                                                    Alternative 5.                                             If the Council increases the 2017 ACL               ACL, estimated revenues are $9.0
                                                       In assessing these alternatives, the                 from 2,000 mt (No Action) to 13,508 mt                 million, and a loss of 1.9% would be
                                                    Council took into account expected                      (Alternative 1), revenues could grow to                worth about $175,000. At an individual
                                                    impacts of each alternative on                          $9.0 million if prices do not change, the              level, these two values represent
                                                    harvesters, processors, workers,                        number of non-whiting mid-water                        maximum 2015 losses ($15,000) versus
                                                    investments, and communities, using                     trawlers rapidly increases, and if                     maximum potential future losses should
                                                    the most recent data available, as                      processors could process the increased                 the high ACL be implemented, prices
                                                    reflected in the environmental                          widow rockfish landings and find the                   stay constant, and 80 percent of the
                                                    assessment. The Council recognized its                  proper markets. These changes would                    sector allocation be harvested
                                                    final decision as drawing a balance                     yield an increase of $23.1 million in                  ($175,000). Others will be positively
                                                    between impacts to the whiting and                      total West Coast income impacts, and an                impacted. The maximum increase for a
                                                    nonwhiting fishery, not allocating too                  increase of an estimated 320 jobs.                     QS holder under any alternative is about
                                                    much away from any one sector, re-                         This rulemaking proposes to                         2%.
                                                    establishing historic fisheries, and the                reallocate widow rockfish QS and allow
                                                                                                            those shares to be traded. With trading,                  NMFS does not believe that small
                                                    geographic distribution of impacts
                                                                                                            QS will flow to those QS holders that                  businesses as a class of QS holders will
                                                    among the communities in Washington,
                                                    Oregon, and California. This action is                  most efficiently can use the QS—by                     be negatively impacted by the proposed
                                                    part of an overall program designed to                  using the associated QP to support their               reallocation of widow rockfish QS. The
                                                    ensure that conservation objectives are                 own vessels, selling or leasing the QP to              reallocation options in large part
                                                    met and is focused on mitigating some                   other vessels, or by selling the QS to                 decrease widow QS holdings for some
                                                    of the distributional effects of those                  others. At the fishery level, in the long              small businesses while increasing QS
                                                    conservation measures. As compared to                   run, the alternatives reviewed here will               holdings for other small businesses,
                                                    Alternatives 3 or 4, Alternative 2 and                  not have a major effect on the overall                 based on historical reliance on widow
                                                    the Council’s final preferred alternative,              amount of fish landed and processed                    rockfish as a target species. Trading of
                                                    Alternative 5, move most directly                       across all the groundfish fishing                      widow QS should also be beneficial to
                                                    toward reestablishing the targeted                      communities.                                           all small businesses as it gives these
                                                    widow rockfish fishery and is therefore                    At the individual quota share holder                businesses the option to buy, sell, or
                                                    expected to better achieve the OY and                   level, this rule affects the starting point            lease their widow QS. Setting the
                                                    more immediately benefit struggling                     by which QS is traded and the amounts                  divesture deadline gives any affected
                                                    communities.                                            that can be traded by individual QS                    entities time to sell off their excess QS.
                                                       The economic dimensions of the                       holders. Depending on the alternative,                 Eliminating the no-longer-needed daily
                                                    fishery are as follows. Annual widow                    the total amount of QS that is to be                   vessel limit for widow rockfish provides
                                                    rockfish ex-vessel revenues in the                      reallocated in the IFQ fishery ranges                  more flexibility to small businesses.
                                                    shorebased trawl sector ranged from $5                  from 0% (Alternative 1, Status Quo,
                                                    million to $6 million (inflation adjusted)              Bycatch) to 28.2% (Alternative 5,                      List of Subjects in 50 CFR Part 660
                                                    in the mid-1990s. Annual ex-vessel                      Alternative 2 Midpoint). Based on ex-
                                                    revenues in the pre-trawl rationalization               vessel price of $0.41 per pound, and                     Fisheries, Fishing, Indian fisheries.
                                                    rebuilding era (2002–2010) averaged                     projected sector allocations of 12,000 mt                Dated: June 23, 2016.
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                                                    about $0.1 million. Since the start of                  based on 2017 ACL of 13,500 mt, and                    Samuel D. Rauch III,
                                                    trawl rationalization (2011–2014),                      projected attainment rate of 80%, the                  Deputy Assistant Administrator for
                                                    annual ex-vessel values averaged $0.3                   annual value of the quota pounds                       Regulatory Programs, National Marine
                                                    million. (Widow rockfish was                            associated with a potential transfer of                Fisheries Service.
                                                    determined to be rebuilt in 2011 and                    28.2% of the quota shares is about $2.5
                                                    was no longer managed under a                           million. Depending on the alternative,                   For the reasons set out in the
                                                    rebuilding plan beginning in the 2013–                  the potential transfer of QS among                     preamble, 50 CFR part 660 is proposed
                                                    2014 biennial harvest specifications).                  communities ranges from 0 to 18%. The                  to be amended as follows:


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                                                                          Federal Register / Vol. 81, No. 125 / Wednesday, June 29, 2016 / Proposed Rules                                            42303

                                                    PART 660—FISHERIES OFF WEST                             ownership interest in the owner named                  under paragraphs (d)(4)(i) and (iii) of
                                                    COAST STATES                                            on the permit) that are found to exceed                this section. If the reallocation of widow
                                                                                                            the accumulation limits during the                     rockfish puts any QS permit owner over
                                                    ■ 1. The authority citation for part 660                reallocation of widow rockfish QS, an                  an accumulation limit, the QS permit
                                                    continues to read as follows:                           adjustment period will be provided                     owner will have until widow rockfish
                                                      Authority: 16 U.S.C. 1801 et seq., 16                 during which they will have to                         becomes transferrable to divest of their
                                                    U.S.C. 773 et seq., and 16 U.S.C. 7001 et seq.          completely divest their QS or IBQ in                   excess widow rockfish QS. In the case
                                                                                                            excess of the accumulation limits. If                  that a QS permit owner exceeds the
                                                    ■ 2. In § 660.140:                                      NMFS identifies that a QS permit owner                 control limit for aggregate nonwhiting
                                                    ■ a. Revise paragraphs (d)(3)(ii)(B)(2)                 exceeds the accumulation limits in 2016                QS holdings as the result of the
                                                    and (d)(4)(v);                                          or beyond, the QS permit owner must                    reallocation of widow rockfish, the
                                                    ■ b. Add paragraph (d)(9); and
                                                                                                            divest of the QS or IBQ in excess of the               permit owner may abandon QS to
                                                    ■ c. Revise paragraph (e)(4)(i) to read as
                                                                                                            accumulation limits according to the                   NMFS by November 15 of the year
                                                    follows:                                                procedure provided under paragraph                     widow rockfish becomes transferrable,
                                                    § 660.140   Shorebased IFQ Program.                     (d)(4)(v)(A) or (B) of this section.                   using the procedure provided under
                                                                                                            Owners of QS or IBQ in excess of the                   paragraph (d)(4)(v)(C) of this section.
                                                    *       *    *    *     *
                                                                                                            control limits may receive and use the                 After the widow rockfish reallocation
                                                       (d) * * *
                                                                                                            QP or IBQ pounds associated with that                  divestiture period, NMFS will revoke all
                                                       (3) * * *
                                                                                                            excess, up to the time their divestiture               QS and IBQ held by a person (including
                                                       (ii) * * *
                                                                                                            is completed.                                          any person who has ownership interest
                                                       (B) * * *                                               (A) Divestiture and redistribution
                                                       (2) Transfer of QS or IBQ between QS                                                                        in the owner names on the permit) in
                                                                                                            process in 2016 and beyond. Any                        excess of the accumulation limits
                                                    accounts. Beginning January 1, 2014, QS                 person owning or controlling QS or IBQ
                                                    permit owners may transfer QS (except                                                                          following the procedures specified
                                                                                                            must comply with the accumulation                      under paragraphs (d)(4)(v)(D) through
                                                    for widow rockfish QS) or IBQ to                        limits, even if that control is not
                                                    another owner of a QS permit, subject                                                                          (G) of this section. All abandoned or
                                                                                                            reflected in the ownership records                     revoked shares will be redistributed to
                                                    to accumulation limits and approval by                  available to NMFS as specified under
                                                    NMFS. Beginning January 1, 2017 (if                                                                            all other QS permit owners in
                                                                                                            paragraphs (d)(4)(i) and (iii) of this                 proportion to their QS or IBQ holdings
                                                    there are no appeals to the reallocation                section. If NMFS identifies that a QS
                                                    of widow rockfish), or January 1, 2018                                                                         on or about January 1 of the following
                                                                                                            permit owner exceeds an accumulation                   calendar year, based on current
                                                    (if there are appeals to the reallocation               limit in 2016 or beyond for a reason
                                                    of widow rockfish), QS permit owners                                                                           ownership records, except that no
                                                                                                            other than the reallocation of widow                   person will be allocated an amount of
                                                    may transfer widow rockfish QS to                       rockfish, NMFS will notify the QS
                                                    another owner of a QS permit, subject                                                                          QS or IBQ that would put that person
                                                                                                            permit owner that he or she has 90 days                over an accumulation limit.
                                                    to accumulation limits and approval by                  to divest of the excess QS or IBQ. In the
                                                    NMFS. NMFS will announce the QS                         case that a QS permit owner exceeds the                   (C) Abandonment of QS. QS permit
                                                    transfer date for widow rockfish prior to               control limit for aggregate nonwhiting                 owners that are over the control limit for
                                                    January 1, 2017. QS or IBQ cannot be                    QS holdings, the QS permit owner may                   aggregate nonwhiting QS holdings may
                                                    transferred to a vessel account. Owners                 abandon QS to NMFS within 60 days of                   voluntarily abandon QS if they notify
                                                    of non-renewed QS permits may not                       the notification by NMFS, using the                    NMFS in writing by the applicable
                                                    transfer QS. QP in QS accounts cannot                   procedure provided under paragraph                     deadline specified under paragraph
                                                    be transferred between QS accounts.                     (d)(4)(v)(C) of this section. After the 90-            (d)(4)(v)(A) or (B) of this section. The
                                                    NMFS will allocate QP based on the QS                   day divestiture period, NMFS will                      written abandonment request must
                                                    percentages as listed on a QS permit                    revoke all QS or IBQ held by a person                  include the following information: QS
                                                    that was renewed during the previous                    (including any person who has                          permit number, IFQ species, and the QS
                                                    October 1 through November 30 renewal                   ownership interest in the owner names                  percentage to be abandoned. Either the
                                                    period. QS transfers will be recorded in                on the permit) in excess of the                        QS permit owner or an authorized
                                                    the QS account but will not become                      accumulation limits following the                      representative of the QS permit owner
                                                    effective for purposes of allocating QPs                procedures specified under paragraphs                  must sign the request. QS permit owners
                                                    until the following year. QS or IBQ may                 (d)(4)(v)(D) through (G) of this section.              choosing to utilize the abandonment
                                                    not be transferred between December 1                   All abandoned or revoked shares will be                option will permanently relinquish to
                                                    through December 31 each year. Any QS                   redistributed to all other QS permit                   NMFS any right to the abandoned QS,
                                                    transaction that is pending as of                       owners in proportion to their QS or IBQ                and the QS will be redistributed as
                                                    December 1 will be administratively                     holdings on or about January 1 of the                  described under paragraph (d)(4)(v)(A)
                                                    retracted. NMFS will allocate QP for the                following calendar year, based on                      or (B) of this section. No compensation
                                                    following year based on the QS                          current ownership records, except that                 will be due for any abandoned shares.
                                                    percentages as of December 1 of each                    no person will be allocated an amount                     (D) Revocation. NMFS will revoke QS
                                                    year.                                                   of QS or IBQ that would put that person                from any QS permit owner who exceeds
                                                    *       *    *    *     *                               over an accumulation limit.                            an accumulation limit after the
                                                       (4) * * *                                               (B) Divestiture and redistribution                  divestiture deadline specified under
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                                                       (v) Divestiture. Accumulation limits                 process for the reallocation of widow                  paragraph (d)(4)(v)(A) or (B) of this
                                                    will be calculated by first calculating                 rockfish. Any person owning or                         section. NMFS will follow the
                                                    the aggregate non-whiting QS limit and                  controlling QS or IBQ must comply with                 revocation approach summarized in the
                                                    then the individual species QS or IBQ                   the accumulation limits, even if that                  following table and explained under
                                                    control limits. For QS permit owners                    control is not reflected in the ownership              paragraphs (d)(4)(v)(E) through (G) of
                                                    (including any person who has                           records available to NMFS as specified                 this section:




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                                                    42304                   Federal Register / Vol. 81, No. 125 / Wednesday, June 29, 2016 / Proposed Rules

                                                    If, after the divestiture deadline, a QS permit owner exceeds . . .                    Then . . .

                                                    An individual species control limit in one QS permit ...............................   NMFS will revoke excess QS at the species level.
                                                    An individual species control limit across multiple QS permits ...............         NMFS will revoke QS at the species level in proportion to the amount
                                                                                                                                            the QS percentage from each permit contributes to the total QS per-
                                                                                                                                            centage owned.
                                                    The control limit for aggregate nonwhiting QS holdings ..........................      NMFS will revoke QS at the species level in proportion to the amount
                                                                                                                                            of the aggregate overage divided by the aggregate total owned.



                                                       (E) Revocation of excess QS or IBQ                    Pacific States Marine Fisheries                          based on the landing history of the
                                                    from one QS permit. In cases where a                     Commission.                                              vessel(s) associated with the permit at
                                                    person has not divested to the control                      (C) Relative history means the                        the time the landings were made.
                                                    limits for individual species in one QS                  landings history of a permit for a                          (2) The relevant PacFIN dataset
                                                    permit by the deadline specified under                   species, year, and area subdivision,                     includes species compositions based on
                                                    paragraph (d)(4)(v)(A) or (B) of this                    divided by the total fleet history of the                port sampled data and applied to data
                                                    section, NMFS will revoke excess QS at                   sector for that species, year, and area                  at the vessel level.
                                                    the species level in order to get that                   subdivision, as appropriate.                                (3) Only landings of widow rockfish
                                                    person to the limits. NMFS will                             (D) Whiting trip means a fishing trip                 which were caught in the exclusive
                                                    redistribute the revoked QS following                    where greater than or equal to 50                        economic zone or adjacent state waters
                                                    the process specified in paragraph                       percent by weight of all fish reported on                off Washington, Oregon and California
                                                    (d)(4)(v)(A) or (B) of this section. No                  the state landing receipt is whiting.                    will be used for calculating the
                                                    compensation will be due for any                            (ii) Eligibility criteria for receiving               reallocation of widow rockfish QS.
                                                    revoked shares.                                          reallocated widow rockfish QS. Only the                     (4) History from limited entry trawl
                                                       (F) Revocation of excess QS or IBQ                    owner of an original QS permit (non-                     permits that have been combined with
                                                    from multiple QS permits. In cases                       shoreside processor) to which QS was                     a permit that qualified for a C/P
                                                    where a person has not divested to the                   initially allocated in 2011 is eligible to               endorsement and which has shorebased
                                                    control limits for individual species                    receive reallocated widow rockfish QS                    permit history will not be included in
                                                    across QS permits by the deadline                        based on the history of the limited entry                the preliminary QS and IBQ allocation
                                                    specified under paragraph (d)(4)(v)(A)                   trawl permit(s) that accrued to that QS                  formula, other than in the determination
                                                    or (B) of this section, NMFS will revoke                 permit, regardless of current limited                    of fleet history used in the calculation
                                                    QS at the species level in proportion to                 entry permit ownership. For those new                    of relative history for permits that do
                                                    the amount the QS percentage from each                   QS permits to which widow rockfish                       not have a C/P endorsement.
                                                    permit contributes to the total QS                       was administratively transferred by                         (5) History of illegal landings and
                                                    percentage owned. NMFS will                              NMFS under U.S. court order, NMFS                        landings made under non-whiting EFPs
                                                    redistribute the revoked QS following                    will reallocate widow rockfish QS                        that are in excess of the cumulative
                                                    the process specified in paragraph                       directly to the new QS permit. Any                       limits in place for the non-EFP fishery
                                                    (d)(4)(v)(A) or (B) of this section. No                  limited entry trawl permit owners who                    will not count toward the allocation of
                                                    compensation will be due for any                         did not submit an initial application for                QS.
                                                    revoked shares.                                          a QS permit will not be eligible to                         (6) The limited entry trawl permit’s
                                                       (G) Revocation of QS in excess of the                 receive reallocated widow rockfish QS.                   landings history includes the landings
                                                    control limit for aggregate nonwhiting                      (iii) Steps for widow rockfish QS                     history of permits that have been
                                                    QS holdings. In cases where a QS permit                  reallocation formula. The widow                          previously combined with that permit.
                                                                                                             rockfish QS reallocation formula is                         (7) If two or more limited entry trawl
                                                    owner has not divested to the control
                                                                                                             applied in the following steps:                          permits have been simultaneously
                                                    limit for aggregate nonwhiting QS
                                                                                                                (A) First, for each limited entry trawl               registered to the same vessel, NMFS will
                                                    holdings by the deadline specified
                                                                                                             permit, NMFS will determine a                            split the landing history evenly between
                                                    under paragraph (d)(4)(v)(A) or (B) of
                                                                                                             preliminary QS allocation for non-                       all such limited entry trawl permits
                                                    this section, NMFS will revoke QS at
                                                                                                             whiting trips.                                           during the time they were
                                                    the species level in proportion to the
                                                                                                                (B) Second, for each limited entry                    simultaneously registered to the vessel.
                                                    amount of the aggregate overage divided
                                                                                                             trawl permit, NMFS will determine a                         (8) Unless otherwise noted, the
                                                    by the aggregate total owned. NMFS will
                                                                                                             preliminary QS allocation for whiting                    calculation for the reallocation of
                                                    redistribute the revoked QS following
                                                                                                             trips.                                                   widow rockfish QS under paragraph
                                                    the process in paragraph (d)(4)(v)(A) or
                                                                                                                (C) Third, for each limited entry trawl               (d)(9) will be based on state landing
                                                    (B) of this section. No compensation
                                                                                                             permit, NMFS will combine the                            receipts (fish tickets) as recorded in the
                                                    will be due for any revoked shares.
                                                                                                             amounts resulting from paragraphs                        relevant PacFIN dataset on July 27,
                                                    *      *     *     *     *                               (d)(9)(iii)(A) and (B) of this section.                  2016.
                                                       (9) Reallocation of widow rockfish QS.                   (D) Fourth, NMFS will reduce the                         (9) For limited entry trawl permits,
                                                    (i) Additional definitions. The following                total widow QS reallocated to QS permit                  landings under provisional ‘‘A’’ permits
                                                    definitions are applicable to paragraph                  owners by 10 percent as a set aside for                  that did not become ‘‘A’’ permits and
                                                    (d)(9) of this section and apply to terms                AMP.                                                     ‘‘B’’ permits will not count toward the
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                                                    used for the purposes of reallocation of                    (iv) Reallocation formula for specific                reallocation of widow QS, other than in
                                                    widow rockfish QS:                                       widow rockfish QS amounts.                               the determination of fleet history used
                                                       (A) Nonwhiting trip means a fishing                      (A) Reallocation formula rules. The                   in the calculation of relative history for
                                                    trip where less than 50 percent by                       following rules will be applied to data                  permits that do not have a C/P
                                                    weight of all fish reported on the state                 for the purpose of calculating the initial               endorsement.
                                                    landing receipt is whiting.                              reallocation of widow rockfish QS:                          (10) For limited entry trawl permits,
                                                       (B) PacFIN means the Pacific                             (1) Limited entry trawl permits will be               NMFS will calculate the reallocation of
                                                    Fisheries Information Network of the                     assigned catch history or relative history               widow rockfish QS separately based on


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                                                                          Federal Register / Vol. 81, No. 125 / Wednesday, June 29, 2016 / Proposed Rules                                             42305

                                                    whiting trips and nonwhiting trips, and                 histories of all qualifying limited entry              trawl permit, NMFS will multiply the
                                                    will weigh each calculation according to                trawl permits. NMFS will then multiply                 preliminary QS for the permit from
                                                    a split between whiting trips and                       the result from this calculation by the                paragraph (d)(9)(iii)(A) of this section by
                                                    nonwhiting trips of 10.833 percent for                  amount of QS in the pool to be allocated               the one-time reallocation percentage of
                                                    whiting trips and 89.167 percent for                    based on each permit’s history.                        89.167 percent for non-whiting trips.
                                                    nonwhiting trips, which is a one-time                      (C) Preliminary widow rockfish QS                      (2) Whiting trips. To determine the
                                                    proportion necessary for the reallocation               reallocation for whiting trips. The                    amount of widow QS for whiting trips
                                                    formula.                                                preliminary reallocation process in                    for each limited entry trawl permit,
                                                       (B) Preliminary widow rockfish QS                    paragraph (d)(9)(iii)(B) of this section               NMFS will multiply the preliminary QS
                                                    reallocation for nonwhiting trips. The                  follows a two-step process, one to                     for the permit from paragraph
                                                    preliminary reallocation process in                     allocate a pool of QS equally among all                (d)(9)(iii)(B) of this section by the one-
                                                    paragraph (d)(9)(iii)(A) of this section                eligible limited entry permits and the                 time reallocation percentage of 10.833
                                                    follows a two-step process, one to                      other to allocate the remainder of the                 percent for whiting trips.
                                                    allocate a pool of QS equally among all                 preliminary QS based on permit history.                   (E) QS for each limited entry trawl
                                                    eligible limited entry permits and the                  Through these two processes,                           permit. For each limited entry trawl
                                                    other to allocate the remainder of the                  preliminary QS totaling 100 percent will               permit, NMFS will add the results for
                                                    preliminary QS based on permit history.                 be allocated. In later steps, this will be             the permit from paragraphs
                                                    Through these two processes,                            adjusted and reduced as indicated in                   (d)(9)(iv)(D)(1) and (D)(2) of this section
                                                    preliminary QS totaling 100 percent will                paragraph (d)(9)(iii)(C) and (D) to                    in order to determine the total QS
                                                    be allocated. In later steps, this will be              determine the QS allocation.                           widow for that permit.
                                                    adjusted and reduced as indicated in                       (1) QS to be allocated equally. The
                                                                                                                                                                      (F) Adjustment for AMP set-aside.
                                                    paragraph (d)(9)(iii)(C) and (D) to                     pool of QS for equal allocation will be
                                                                                                                                                                   NMFS will reduce the widow QS
                                                    determine the QS allocation.                            determined using whiting trip landings
                                                                                                                                                                   reallocated to each permit owner by a
                                                       (1) QS to be allocated equally. The                  history from Federal limited entry
                                                                                                                                                                   proportional amount that is equivalent
                                                    pool of QS for equal allocation will be                 groundfish permits that were retired
                                                                                                                                                                   to a reduction of 10 percent across all
                                                    determined using the nonwhiting trip                    through the Federal buyback program
                                                                                                                                                                   widow reallocation recipients’ holdings
                                                    landings history from Federal limited                   (i.e., buyback program) (68 FR 42613,
                                                                                                                                                                   as a set aside for AMP.
                                                    entry groundfish permits that were                      July 18, 2003). The whiting trip QS pool
                                                    retired through the Federal buyback                     associated with the buyback permits                       (v) Widow rockfish QS reallocation
                                                    program (i.e., buyback program) (68 FR                  will be the buyback permit history as a                application. Persons may apply for
                                                    42613, July 18, 2003). The nonwhiting                   percent of the total fleet history for the             issuance of reallocated widow rockfish
                                                    trip QS pool associated with the                        1994 to 2003 whiting trip reallocation                 QS by completing and submitting a
                                                    buyback permits will be the buyback                     period. The calculation will be based on               prequalified application. A
                                                    permit history as a percent of the total                total absolute pounds with no dropped                  ‘‘prequalified application’’ is a partially
                                                    fleet history for the 1994 to 2003                      years and no other adjustments. The QS                 pre-filled application where NMFS has
                                                    nonwhiting trip reallocation period. The                pool associated with the buyback                       preliminarily determined the landings
                                                    calculation will be based on total                      permits will be divided equally among                  history for each limited entry trawl
                                                    absolute pounds with no dropped years                   all qualifying limited entry permits.                  permit that qualifies the applicant for a
                                                    and no other adjustments. The QS pool                      (2) QS to be allocated based on each                reallocation of widow QS. The
                                                    associated with the buyback permits                     permit’s history. The pool of QS for                   application package will include a
                                                    will be divided equally among all                       allocation based on each limited entry                 prequalified application (with landings
                                                    qualifying limited entry permits.                       trawl permit’s whiting trip history will               history). The completed application
                                                       (2) QS to be allocated based on each                 be the QS remaining after subtracting                  must be either postmarked or hand-
                                                    permit’s history. The pool of QS for                    out the QS allocated equally. Widow                    delivered to NMFS within normal
                                                    allocation based on limited entry trawl                 rockfish QS for this pool will be                      business hours no later than September
                                                    permit nonwhiting trip history will be                  allocated pro-rata based on each limited               15, 2016. If an applicant fails to submit
                                                    the QS remaining after subtracting out                  entry trawl permit’s whiting QS from                   a completed application by the deadline
                                                    the QS allocated equally. This pool will                whiting trips that was established in                  date, they forgo the opportunity to
                                                    be allocated to each qualifying limited                 2010 and used to allocate the whiting                  receive reallocated widow rockfish QS
                                                    entry trawl permit based on the permit’s                trip portion of whiting QS at the time of              and their percentage will be
                                                    relative nonwhiting trip history from                   initial implementation in 2011. Pro-rata               redistributed to other QS permit owners
                                                    1994 through 2002, dropping the three                   means a percent that is equal to the                   in proportion to their reallocated widow
                                                    lowest years. For each limited entry                    percent of whiting QS from whiting                     QS amount.
                                                    trawl permit, NMFS will calculate                       trips.                                                    (vi) Corrections to the application. If
                                                    relative history using the following                       (D) QS from limited entry permits                   an applicant does not accept NMFS’
                                                    methodology. First, NMFS will sum the                   calculated separately for non-whiting                  calculation in the prequalified
                                                    permit’s widow rockfish landings on                     trips and whiting trips. NMFS will                     application either in part or whole, the
                                                    nonwhiting trips for each year in the                   calculate the portion of widow QS a                    applicant must identify in writing to
                                                    reallocation period. Second, NMFS will                  limited entry trawl permit receives                    NMFS which parts the applicant
                                                    divide each permit’s annual sum by the                  based on non-whiting trips and whiting                 believes to be inaccurate, and must
                                                    shoreside limited entry trawl fleet’s                   trips separately, and will weight each                 provide specific credible information to
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                                                    annual sum. NMFS will then calculate                    preliminary QS in proportion to the                    substantiate any requested corrections.
                                                    a total relative history for each permit                one-time reallocation percentage                       The completed application and specific
                                                    by adding all relative histories for the                between whiting trips and non-whiting                  credible information must be provided
                                                    permit together and subtracting the                     trips of 10.833 percent and 89.167                     to NMFS in writing by the application
                                                    three years with the lowest relative                    percent, respectively.                                 deadline. Written communication must
                                                    history for the permit. The result for                     (1) Nonwhiting trips. To determine                  either be post-marked or hand-delivered
                                                    each permit will be divided by the                      the amount of widow QS for non-                        to NMFS within normal business hours
                                                    aggregate sum of all total relative                     whiting trips for each limited entry                   no later than September 15, 2016.


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                                                    42306                          Federal Register / Vol. 81, No. 125 / Wednesday, June 29, 2016 / Proposed Rules

                                                    Requests for corrections may only be                                        necessary to make an IAD on reallocated                                     within 60 calendar days of the date on
                                                    granted for the following reasons:                                          widow rockfish QS.                                                          the IAD, the IAD becomes the final
                                                      (A) Errors in NMFS’ use or                                                   (B) Application deadline. A complete,                                    decision of the Regional Administrator
                                                    application of data, including:                                             certified application must be either                                        acting on behalf of the Secretary of
                                                      (1) Errors in NMFS’ use or application                                    postmarked or hand-delivered within                                         Commerce.
                                                    of landings data from PacFIN;                                               normal business hours to NMFS, West                                            (ix) Appeals. For reallocated widow
                                                      (2) Errors in NMFS’ application of the                                    Coast Region, Permits Office, Bldg. 1,                                      rockfish QS issued under this section,
                                                    reallocation formula;                                                       7600 Sand Point Way NE., Seattle, WA                                        the appeals process and timelines are
                                                      (3) Errors in identification of the QS                                    98115, no later than September 15,                                          specified at § 660.25(g), subpart C. For
                                                    permit owner, permit combinations, or                                       2016. NMFS will not accept or review                                        the reallocation of widow rockfish QS,
                                                    vessel registration as listed in NMFS                                       any applications received or postmarked                                     the bases for appeal are described in
                                                    permit database;                                                            after the application deadline. There are                                   paragraph (d)(9)(vi) of this section.
                                                                                                                                no hardship exemptions for this                                             Items not subject to appeal include, but
                                                      (vii) Submission of the application
                                                                                                                                deadline.                                                                   are not limited to, the accuracy of
                                                    and application deadline.                                                      (viii) Initial Administrative
                                                      (A) Submission of the application.                                                                                                                    permit landings data in the relevant
                                                                                                                                Determination (IAD). NMFS will issue                                        PacFIN dataset on July 27, 2016.
                                                    Submission of the complete, certified                                       an IAD for all complete, certified
                                                    application includes, but is not limited                                    applications received by the application                                       (e) * * *
                                                    to, the following:                                                          deadline date. If NMFS approves an                                             (4) * * *
                                                      (1) The applicant is required to sign                                     application for reallocated widow                                              (i) Vessel limits. For each IFQ species
                                                    and date the application and declare                                        rockfish QS, the IAD will say so, and the                                   or species group specified in this
                                                    that the contents are true, correct and                                     applicant will receive a 2017 QS permit                                     paragraph, vessel accounts may not
                                                    complete.                                                                   specifying the reallocated amount of                                        have QP or IBQ pounds in excess of the
                                                      (2) The applicant must certify that                                       widow rockfish QS the applicant has                                         QP vessel limit (annual limit) in any
                                                    they qualify to own reallocated widow                                       qualified for in December 2016. If NMFS                                     year, and, for species covered by unused
                                                    rockfish QS.                                                                disapproves or partially disapproves an                                     QP vessel limits (daily limit), may not
                                                      (3) The applicant must indicate they                                      application, the IAD will provide the                                       have QP or IBQ pounds in excess of the
                                                    accept NMFS’ calculation of reallocated                                     reasons. As part of the IAD, NMFS will                                      unused QP vessel limit at any time. The
                                                    widow rockfish QS provided in the                                           indicate to the best of its knowledge                                       QP vessel limit (annual limit) is
                                                    prequalified application, or provide a                                      whether the QS permit owner qualifies                                       calculated as all QPs transferred in
                                                    written statement and credible                                              for QS or IBQ in amounts that exceed                                        minus all QPs transferred out of the
                                                    information if they do not accept NMFS’                                     the accumulation limits and are subject                                     vessel account. The unused QP vessel
                                                    calculation.                                                                to divestiture provisions given at                                          limits (daily limit) is calculated as
                                                      (4) NMFS may request additional                                           paragraph (d)(4)(v) of this section. If the                                 unused available QPs plus any pending
                                                    information of the applicant as                                             applicant does not appeal the IAD                                           outgoing transfer of QPs.

                                                                                                                                                                                                                                    QP Vessel        Unused QP
                                                                                                                                                                                                                                       limit         Vessel limit
                                                                                                                            Species category                                                                                      (annual limit)     (daily limit)
                                                                                                                                                                                                                                   (in percent)      (in percent)

                                                    Arrowtooth flounder .................................................................................................................................................                    20    ........................
                                                    Bocaccio S. of 40°10′ N. lat. ...................................................................................................................................                       15.4                    13.2
                                                    Canary rockfish ........................................................................................................................................................                 10                       4.4
                                                    Chilipepper S. of 40°10′ N. lat. ................................................................................................................................                         15   ........................
                                                    Cowcod S. of 40°10′ N. lat. .....................................................................................................................................                       17.7                    17.7
                                                    Darkblotched rockfish ..............................................................................................................................................                     6.8                      4.5
                                                    Dover sole ................................................................................................................................................................              3.9   ........................
                                                    English sole .............................................................................................................................................................               7.5   ........................
                                                    Lingcod:
                                                         N. of 40°10′ N. lat. ............................................................................................................................................                   5.3   ........................
                                                         S. of 40°10′ N. lat. ............................................................................................................................................                  13.3   ........................
                                                    Longspine thornyhead:
                                                         N. of 34°27′ N. lat. ............................................................................................................................................                     9   ........................
                                                    Minor rockfish complex N. of 40°10′ N. lat.:
                                                         Shelf species ....................................................................................................................................................                  7.5   ........................
                                                         Slope species ...................................................................................................................................................                   7.5   ........................
                                                    Minor rockfish complex S. of 40°10′ N. lat.:
                                                         Shelf species ....................................................................................................................................................                 13.5   ........................
                                                         Slope species ...................................................................................................................................................                     9   ........................
                                                    Other flatfish complex ..............................................................................................................................................                     15   ........................
                                                    Pacific cod ...............................................................................................................................................................               20   ........................
                                                    Pacific halibut (IBQ) N. of 40°10′ N. lat. .................................................................................................................                            14.4                      5.4
                                                    Pacific ocean perch N. of 40°10′ N. lat. ..................................................................................................................                                6                         4
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                                                    Pacific whiting (shoreside) .......................................................................................................................................                      15    ........................
                                                    Petrale sole ..............................................................................................................................................................              4.5   ........................
                                                    Sablefish:
                                                         N. of 36° N. lat. (Monterey north) .....................................................................................................................                            4.5   ........................
                                                         S. of 36° N. lat. (Conception area) ...................................................................................................................                             15    ........................
                                                    Shortspine thornyhead:
                                                         N. of 34°27′ N. lat. ............................................................................................................................................                     9   ........................
                                                         S. of 34°27′ N. lat. ............................................................................................................................................                     9   ........................
                                                    Splitnose rockfish S. of 40°10′ N. lat. .....................................................................................................................                             15   ........................



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                                                                                    Federal Register / Vol. 81, No. 125 / Wednesday, June 29, 2016 / Proposed Rules                                                                                        42307

                                                                                                                                                                                                                                  QP Vessel        Unused QP
                                                                                                                                                                                                                                     limit         Vessel limit
                                                                                                                           Species category                                                                                     (annual limit)     (daily limit)
                                                                                                                                                                                                                                 (in percent)      (in percent)

                                                    Starry flounder .........................................................................................................................................................              20    ........................
                                                    Widow rockfish .........................................................................................................................................................               8.5   ........................
                                                    Yelloweye rockfish ...................................................................................................................................................                11.4                      5.7
                                                    Yellowtail rockfish N. of 40°10′ N. lat. .....................................................................................................................                         7.5   ........................
                                                    Non-whiting groundfish species ...............................................................................................................................                         3.2   ........................



                                                    *        *         *        *         *
                                                    [FR Doc. 2016–15217 Filed 6–28–16; 8:45 am]
                                                    BILLING CODE 3510–22–P
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Document Created: 2018-02-08 07:43:00
Document Modified: 2018-02-08 07:43:00
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionProposed Rules
ActionProposed rule; request for comments.
DatesComments on this proposed rule must be received on or before July 29, 2016.
ContactSarah Towne, 206-526-4140, [email protected]
FR Citation81 FR 42295 
RIN Number0648-BF12
CFR AssociatedFisheries; Fishing and Indian Fisheries

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