81_FR_48874 81 FR 48731 - Atlantic Highly Migratory Species; Removal of Vessel Upgrade Restrictions for Swordfish Directed Limited Access and Atlantic Tunas Longline Category Permits

81 FR 48731 - Atlantic Highly Migratory Species; Removal of Vessel Upgrade Restrictions for Swordfish Directed Limited Access and Atlantic Tunas Longline Category Permits

DEPARTMENT OF COMMERCE
National Oceanic and Atmospheric Administration

Federal Register Volume 81, Issue 143 (July 26, 2016)

Page Range48731-48735
FR Document2016-17646

This proposed rule would remove vessel upgrading restrictions for vessels issued swordfish directed and Atlantic tunas Longline category limited access permits (LAPs). Currently, regulations allow for upgrading vessels or transferring permits to another vessel only if the vessel upgrade or permit transfer results in an increase of no more than 35 percent in length overall, gross registered tonnage, and net tonnage, as measured relative to the baseline vessel specifications (i.e., the specifications of the vessel first issued an HMS LAP). The proposed rule eliminates these restrictions on upgrades and permit transfers. This action could affect vessel owners issued swordfish directed and Atlantic tunas Longline category LAPs and fishing in the Atlantic Ocean, including the Gulf of Mexico and Caribbean Sea. Swordfish handgear LAP upgrade restrictions are not being addressed in this proposed rule.

Federal Register, Volume 81 Issue 143 (Tuesday, July 26, 2016)
[Federal Register Volume 81, Number 143 (Tuesday, July 26, 2016)]
[Proposed Rules]
[Pages 48731-48735]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-17646]


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DEPARTMENT OF COMMERCE

National Oceanic and Atmospheric Administration

50 CFR Part 635

[Docket No. 160531477-6477-01]
RIN 0648-BG10


Atlantic Highly Migratory Species; Removal of Vessel Upgrade 
Restrictions for Swordfish Directed Limited Access and Atlantic Tunas 
Longline Category Permits

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

ACTION: Proposed rule; request for comments.

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SUMMARY: This proposed rule would remove vessel upgrading restrictions 
for vessels issued swordfish directed and Atlantic tunas Longline 
category limited access permits (LAPs). Currently, regulations allow 
for upgrading vessels or transferring permits to another vessel only if 
the vessel upgrade or permit transfer results in an increase of no more 
than 35 percent in length overall, gross registered tonnage, and net 
tonnage, as measured relative to the baseline vessel specifications 
(i.e., the specifications of the vessel first issued an HMS LAP). The 
proposed rule eliminates these restrictions on upgrades and permit 
transfers. This action could affect vessel owners issued swordfish 
directed and Atlantic tunas Longline category LAPs and fishing in the 
Atlantic Ocean, including the Gulf of Mexico and Caribbean Sea. 
Swordfish handgear LAP upgrade restrictions are not being addressed in 
this proposed rule.

DATES: Written comments must be received by September 26, 2016. An 
operator-assisted, public conference call and webinar will be held on 
August 23, 2016, from 2:30 p.m. to 4:30 p.m., EST.

ADDRESSES: The conference call information is phone number 888-843-
6165; participant passcode 6512640. Participants are strongly 
encouraged to log/dial in 15 minutes prior to the meeting. NMFS will 
show a brief presentation via webinar followed by public comment. To 
join the webinar go to: https://noaaevents2.webex.com/noaaevents2/onstage/g.php?MTID=e7bad02475e6061ff9227fb0842ccf332; meeting number: 
998 920 078; event password: NOAA. Participants that have not used 
WebEx before will be prompted to download and run a plug-in program 
that will enable them to view the webinar.
    You may submit comments on this document, identified by NOAA-NMFS-
2016-0087, by any of the following methods:
     Electronic Submission: Submit all electronic public 
comments via the Federal e-Rulemaking Portal. Go to 
www.regulations.gov/#!docketDetail;D=NOAA-NMFS-2016-0087, click the 
``Comment Now!'' icon, complete the required fields, and enter or 
attach your comments.
     Mail: Submit written comments to Margo Schulze-Haugen, 
NMFS/SF1, 1315 East-West Highway, SSMC3, Silver Spring, MD 20910.
    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).
    Presentation materials and copies of the supporting documents are 
available from the HMS Management Division Web site at http://www.nmfs.noaa.gov/sfa/hms/ or by contacting Steve Durkee by phone at 
202-670-6637 or Rick Pearson by phone at 727-824-5399.

FOR FURTHER INFORMATION CONTACT: Steve Durkee by phone at 202-670-6637 
or Rick Pearson by phone at 727-824-5399.

SUPPLEMENTARY INFORMATION: 

Background

    The U.S. Atlantic swordfish and tuna fisheries are managed under 
the 2006 Consolidated Highly Migratory Species (HMS) Fishery Management 
Plan (FMP) and its amendments. Implementing regulations at 50 CFR part 
635 are issued under the authority of the Magnuson-Stevens Fishery 
Conservation and Management Act (Magnuson-Stevens Act), 16 U.S.C. 1801 
et seq., and the Atlantic Tunas Convention Act (ATCA), 16 U.S.C. 971 et 
seq. ATCA authorizes the Secretary of

[[Page 48732]]

Commerce (Secretary) to promulgate regulations, as may be necessary and 
appropriate, to implement recommendations of the International 
Commission for the Conservation of Atlantic Tunas (ICCAT).
    In 1999, the National Marine Fisheries Service (NMFS) issued 
initial LAPs in the Atlantic swordfish and shark fisheries (64 FR 
29090, March 28, 1999). To be eligible to fish with pelagic longline 
gear, a vessel had to be issued a swordfish directed or incidental LAP, 
a shark directed or incidental LAP, and an Atlantic tunas Longline 
category permit. After initial issuance of these permits, no new 
permits were issued by NMFS, but permits could be transferred to other 
vessels. Swordfish and shark directed LAPs included restrictions on 
vessel upgrading and permit transfers. Vessel upgrades and permit 
transfers were allowed only if the upgrade or permit transfer to 
another vessel did not result in an increase in horsepower of more than 
20 percent or an increase of more than 10 percent in length overall, 
gross registered tonnage, or net tonnage relative to the respective 
specifications of the first vessel issued the initial LAP (the baseline 
vessel). Additionally, vessels could only be upgraded one time. These 
vessel upgrading restrictions were put into place to limit capacity in 
the swordfish fishery and to be consistent with the New England and 
Mid-Atlantic Fishery Management Council's permit policies at the time. 
Incidental LAPs for these species did not have vessel upgrading 
restrictions. Upgrading restrictions for Atlantic tunas Longline 
category LAPs were not explicitly implemented in the 1999 rule. As a 
practical effect, Atlantic tunas Longline category LAPs were limited by 
the same upgrading restrictions as the swordfish and shark directed 
permits due to the requirement to hold all three permits when fishing 
with pelagic longline gear.
    On June 7, 2007 (72 FR 31688), NMFS issued a final rule amending 
the highly migratory species (HMS) fishery regulations to provide 
additional opportunities for U.S. vessels to more fully utilize the 
North Atlantic swordfish quota, recognizing the improved status of the 
species. The ICCAT Standing Committee on Research and Statistics (SCRS) 
had completed a stock assessment for North Atlantic swordfish in 
October 2006 indicating that the North Atlantic swordfish biomass had 
improved, possibly due to strong recruitment in the late 1990s combined 
with reductions in reported catch since then. The SCRS estimated that 
the stock biomass at the beginning of 2006 (B2006) was at 99 
percent of the biomass necessary to produce maximum sustainable yield 
(Bmsy), and the 2005 fishing mortality rate (F2005) was 
estimated to be 0.86 times the fishing mortality rate at maximum 
sustainable yield (Fmsy). The 2007 action modified limited access 
vessel upgrading and permit transfer restrictions for vessels that were 
concurrently issued, or were eligible to renew, directed or incidental 
swordfish, directed or incidental shark, and Atlantic tunas Longline 
category LAPs (i.e., vessels that were eligible to fish with pelagic 
longline gear). The rule also clarified that Atlantic tunas Longline 
category LAPs were subject to the same vessel upgrade restrictions as 
swordfish and shark directed LAPs. These measures allowed eligible 
vessel owners to upgrade their vessels by 35 percent in size (length 
overall, gross registered tonnage, and net tonnage) relative to the 
specifications of the baseline vessel, and removed upgrade limits on 
horsepower. Additionally, these permits could be upgraded more than 
once, provided that the new maximum upgrade limits were not exceeded.
    NMFS now is considering removing these vessel upgrading 
restrictions for vessels issued swordfish directed and Atlantic tunas 
Longline category LAPs. Under the current regulatory framework and 
given the now rebuilt status of the North Atlantic swordfish stock, 
these restrictions have the effect of reducing flexibility in the 
pelagic longline fishery for persons interested in entering the 
fishery, purchasing a new vessel, or upgrading their existing vessel. 
Currently, a new entrant to the fishery must obtain an available permit 
with an associated maximum upgrade limit that accommodates his vessel 
size. This can limit and complicate the permit transfer as the owner 
searches for a permit suitable to the vessel. For a vessel owner who is 
already issued a swordfish directed and/or Atlantic tunas Longline 
category LAP that wants to purchase a new vessel or enlarge an existing 
vessel, the new or upgraded vessel may not exceed the permit's maximum 
vessel upgrading limit. This can limit and complicate the permit 
holder's purchasing options. Because there are usually only a small 
number of swordfish directed and Atlantic tunas Longline permits 
available, it is often difficult to find a permit that accommodates the 
target vessel size. NMFS also has heard from swordfish and tuna LAP 
permit holders that the vessel upgrading restrictions restrict their 
ability to transfer permits to newer vessels, which could have greater 
capacity, and address safety issues that exist with older vessels. For 
these reasons, and those discussed below, NMFS is proposing to remove 
vessel upgrading restrictions for swordfish directed and Atlantic tunas 
Longline LAPs.
    Since implementing the vessel upgrade requirements in 1999 and 
modifying them in 2007, several important things have changed in the 
Atlantic HMS pelagic longline fishery. First, there are fewer swordfish 
permit holders. From the mid-to-late 1990s, more than 2,000 commercial 
open access swordfish permits were issued annually, and the pelagic 
longline fleet had become overcapitalized. The directed swordfish 
fishery was closed temporarily in 1995, and again in 1997, due to quota 
overages, and the swordfish stock was overfished (B/Bmsy = 0.715) with 
overfishing occurring (F/Fmsy = 1.169). Also in 1999, ICCAT adopted an 
international rebuilding plan for North Atlantic swordfish (ICCAT 
Recommendation 99-02) and passed a resolution to examine time/area 
closures and gear modification measures to reduce catches of undersized 
swordfish (Res. 99-04). Thus, in 1999, NMFS was particularly concerned 
about ensuring that pelagic longline fishing effort and fleet capacity 
were commensurate with the available swordfish quota, and the vessel 
upgrading restrictions were part of NMFS' management strategy to reduce 
capacity. That situation does not exist today. Fleet capacity has been 
reduced through the successful application of the initial LAP 
qualification criteria and attrition over time. In 1998, prior to the 
implementation of upgrade restrictions, 233 pelagic longline vessels 
among the 2,000 permit holders landed swordfish and thus were 
considered ``active.'' The number of such vessels dropped to a low of 
102 in 2006 and has remained between 109 and 122 vessels since then. 
Similarly, as of December 30, 1999, approximately 451 directed and 
incidental swordfish LAPs had been issued. By 2015, permit numbers had 
been reduced to 260 directed and incidental swordfish LAPs. Permit 
numbers are expected to remain at approximately these levels because no 
new LAPs are being issued.
    Second, other requirements implemented since 1999, such as those 
designed to reduce bycatch in the pelagic longline fishery (e.g., 
closed areas, bait requirements, individual bluefin tuna quotas, and 
gear restrictions), have also limited fishing effort. The directed 
North Atlantic swordfish quota has not been exceeded in almost 20 years 
and, in fact, has been underharvested for a number of years.

[[Page 48733]]

    Third, during this same time period, the stock status of north 
Atlantic swordfish has significantly improved. In 2009, ICCAT declared 
that the stock has been fully rebuilt. Using domestic stock status 
thresholds, NMFS has also declared that the north Atlantic swordfish 
stock is not overfished and that overfishing is not occurring.
    In addition to limiting capacity in the HMS pelagic longline 
fishery, a secondary goal for implementing the specific swordfish 
directed and Atlantic tunas Longline vessel upgrade limits adopted in 
1999 was to be consistent with similar regulations previously 
established by the New England and Mid-Atlantic Fishery Management 
Councils (Councils). In August 2015, the Councils removed gross 
registered and net tonnage limits (80 FR 51754) so that only length and 
horsepower limits remain in effect. Because this HMS action would 
remove all upgrade restrictions for vessels issued swordfish directed 
and Atlantic tunas Longline category LAPs, only the Council regulations 
would limit vessel upgrading for vessels issued LAPs for both Council-
managed species and HMS. Thus, there would be no conflict between 
Council and HMS vessel upgrade restrictions. This action would simplify 
compliance for dually permitted vessels and provide greater flexibility 
for HMS permitted vessels.
    The overall reduction in pelagic longline fleet capacity, in 
combination with the totality of effort controls implemented since 
1999, sufficiently limits the fishery's capacity. Vessel upgrading and 
related permit transfer restrictions are no longer necessary or 
relevant for the Atlantic HMS pelagic longline fishery at this time. 
Thus, this proposed rule would remove all upgrading restrictions for 
vessels issued swordfish directed and Atlantic tunas Longline category 
LAPs. Although limited in scope, this action would ease a barrier to 
entry in the pelagic longline fishery, facilitate limited access permit 
transfers, provide increased business flexibility, and help vessel 
owners address safety issues.
    The proposed action would provide more flexibility for current 
permit holders by eliminating the upgrading restrictions for swordfish 
directed and Atlantic tunas Longline category LAP permit holders. 
Eliminating vessel upgrading restrictions would have short- and long-
term minor beneficial socioeconomic impacts, since it would allow 
fishermen to buy, sell, or transfer swordfish directed and Atlantic 
tunas Longline category LAPs without concerns about exceeding the 
maximum upgrade limit for the permits.
    Removing the upgrading restrictions is not expected to affect the 
number of swordfish and tunas being landed by vessels, as these amounts 
are determined by established quotas and effort controls (including, 
for example, individual vessel quotas for bluefin tuna) not the size of 
the vessel. Thus, this action is expected to have no ecological impacts 
and would not result in additional interactions with protected 
resources, given the other restrictions on the Atlantic HMS pelagic 
longline fishery.

Request for Comments

    NMFS is requesting comments on any of the measures or analyses 
described in this proposed rule. NMFS is specifically requesting 
comments on its decision to certify that the proposed rule would not 
have a significant economic impact on a substantial number of small 
entities and on the analysis below that supports that decision and on 
our assessment that relieving the restrictions would have no ecological 
impacts. During the comment period, NMFS will hold one conference call 
and webinar for this proposed rule. The conference call and webinar 
will be held on August 23, 2016, from 2:30-4:30 p.m. EST. Please see 
the DATES and ADDRESSES headings for more information.
    The public is reminded that NMFS expects participants on phone 
conferences to conduct themselves appropriately. At the beginning of 
the conference call, a representative of NMFS will explain the ground 
rules (e.g., all comments are to be directed to the agency on the 
proposed action; attendees will be called to give their comments in the 
order in which they registered to speak; each attendee will have an 
equal amount of time to speak; attendees may not interrupt one another; 
etc.). NMFS representative(s) will structure the meeting so that all 
attending members of the public will be able to comment, if they so 
choose, regardless of the controversial nature of the subject(s). 
Attendees are expected to respect the ground rules, and those that do 
not may be removed from the conference call.

Classification

    Pursuant to the Magnuson-Stevens Act, the NMFS Assistant 
Administrator has determined that this proposed rule is consistent with 
the 2006 Consolidated HMS FMP and its amendments, other provisions of 
the Magnuson-Stevens Act, the Atlantic Tuna Convention Act, and other 
applicable law, subject to further consideration after public comment.
    This proposed rule has been determined to be not significant for 
purposes of Executive Order 12866.
    NMFS has made a preliminary determination that this action 
qualifies to be categorically excluded from the requirement to prepare 
an environmental assessment in accordance with NMFS' Environmental 
Review Procedures for Implementing the National Environmental Policy 
Act (NOAA Administrative Order 216-6), subject to further consideration 
after public comment. This action falls within the scope of effects 
already analyzed in the Final Environmental Impact Statement (EIS) 
prepared for the 2006 Consolidated Atlantic HMS FMP, the 2012 
Environmental Assessment prepared for the rulemaking on North and South 
Atlantic Swordfish Quotas and Management Measures (77 FR 45273, July 
31, 2012), and the Final EIS for Amendment 7 to the 2006 Consolidated 
HMS FMP. Section 6.03a.3.(b)(2) of NOAA Administrative Order 216-6 
specifies that certain actions may be categorically excluded from 
further NEPA analysis including minor changes to a management plan when 
those effects have already been analyzed and additional effects are not 
expected. This action will have no additional effects that were not 
already analyzed, and the action is not precedent-setting or 
controversial. It would not affect the number of swordfish and tunas 
being landed by vessels and would not result in additional interactions 
with protected resources, as these amounts are determined by the 
established quotas and effort controls, not the size of the vessel, and 
the effects of those established quotas and effort controls have 
already been analyzed.
    NMFS has determined that this proposed rule will have no effects on 
any coastal use or resource, and a negative determination pursuant to 
15 CFR 930.35 is not required. Therefore, pursuant to 15 CFR 
930.33(a)(2), coordination with appropriate state agencies under 
section 307 of the Coastal Zone Management Act (CZMA) is not required. 
No changes to the human environment are anticipated because removing 
the vessel upgrading restrictions would not affect the number of 
swordfish and tunas being landed by vessels, as these amounts are 
determined by the established quotas and effort controls, not the size 
of the vessel.
    The Chief Counsel for Regulation of the Department of Commerce 
certified to the Chief Counsel for Advocacy of the Small Business 
Administration that this proposed rule, if adopted, would not

[[Page 48734]]

have a significant economic impact on a substantial number of small 
entities under section 605(b) of the Regulatory Flexibility Act (RFA).
    The U.S. Atlantic swordfish and tuna fisheries are managed under 
the 2006 Consolidated Highly Migratory Species Fishery Management Plan 
(2006 Consolidated HMS FMP) and its amendments. Implementing 
regulations at 50 CFR part 635 are issued under the authority of the 
Magnuson-Stevens Act, 16 U.S.C. 1801 et seq., and ATCA, 16 U.S.C. 971 
et seq. ATCA authorizes the Secretary of Commerce (Secretary) to 
promulgate regulations, as may be necessary and appropriate, to 
implement ICCAT recommendations. As discussed above, the purpose of 
this proposed rule is to remove vessel upgrading restrictions for 
vessels issued swordfish directed and Atlantic tunas Longline category 
LAPs to ease a barrier to entry in the pelagic longline fishery, 
facilitate limited access permit transfers, provide increased business 
flexibility, and help vessel owners address safety issues.
    Section 603(b)(3) of the Regulatory Flexibility Act requires 
Agencies to provide an estimate of the number of small entities to 
which the rule would apply. The Small Business Administration (SBA) has 
established size criteria for all major industry sectors in the United 
States, including fish harvesters. Under SBA's regulations, an agency 
may develop its own industry-specific size standards after consultation 
with the SBA Office of Advocacy and an opportunity for public comment 
(see 13 CFR 121.903(c)). Under this provision, NMFS may establish size 
standards that differ from those established by the SBA Office of Size 
Standards, but only for use by NMFS and only for the purpose of 
conducting an analysis of economic effects in fulfillment of the 
agency's obligations under the RFA. On December 29, 2015, NMFS issued a 
final rule establishing a small business size standard of $11 million 
in annual gross receipts for all businesses primarily engaged in the 
commercial fishing industry (NAICS 11411) for RFA compliance purposes 
only (80 FR 81194, December 29, 2015). The $11 million standard became 
effective on July 1, 2016, and is to be used in place of the SBA's 
current standards of $20.5 million, $5.5 million, and $7.5 million for 
the finfish (NAICS 114111), shellfish (NAICS 114112), and other marine 
fishing (NAICS 114119) sectors of the U.S. commercial fishing industry 
in all NMFS rules subject to the RFA after July 1, 2016. Id. at 81194.
    NMFS considers all HMS pelagic longline permit holders to be small 
entities because these vessels have reported annual gross receipts of 
less than $11 million for commercial fishing. NMFS has determined that 
this proposed rule would apply to the 280 permit holders that were 
issued Atlantic tunas Longline category LAPs in 2015, since these 
permit holders also already possess the required swordfish directed or 
incidental permits to fish with pelagic longline gear.
    The economic effects of this proposed rule to remove vessel 
upgrading restrictions for vessels issued swordfish directed and 
Atlantic tunas Longline category LAPs would likely not result in any 
significant adverse impacts on the 280 permit holders. The removal of 
vessel upgrading restrictions would reduce a regulatory burden that 
prevents fishermen from upgrading their vessels beyond established 
limits due to an outdated restriction. It would not result in any 
short-term costs to these small entities. This proposed rule would 
allow these permit holders to freely upgrade their vessels without 
being constrained by the length overall, gross registered tonnage, and 
net tonnage limits currently specified on their permits. In the short-
term, it is likely that only a few permit holders will opt to invest in 
new vessels or vessel upgrades based on past experience with these 
kinds of requests. Those who invest in new vessels or upgrades in the 
short-term would potentially face lower transaction costs, since they 
would not have to potentially search for and acquire permits with 
higher upgrade capabilities. In addition, new entrants in the fishery 
would have more options in acquiring permits, since they would not be 
limited by vessel size. Current permit holders with permits with high 
length overall, gross registered tonnage, and net tonnage baselines 
might face slightly lower demand for their permits, and thus reduced 
value of their permits under this proposed rule because these permits 
can currently be transferred to more, and larger, vessels than permits 
with lower baseline specifications. However, since the implementation 
of Individual Bluefin Quota (IBQ) program under Amendment 7 to the 2006 
Consolidated HMS FMP, much of the economic value of the swordfish 
directed and Atlantic tunas Longline category permit value has shifted 
from these permits to the actual IBQ shares bundled with those permits, 
because IBQ allocation is now required to fish with pelagic longline 
gear. Therefore, the likely economic impact on permit values of this 
proposed rule to remove vessel upgrade restrictions is likely very 
limited. In the long-term, removing the upgrading restrictions would 
allow greater flexibility for permit holders to upgrade their vessels 
and address safety issues. The removal of upgrading restrictions is not 
expected to result in disproportionate adverse effects on pelagic 
longline fishing operations of different sizes, and is actually likely 
to help smaller vessel owners slightly more than owners of larger 
vessels because they are more likely to have lower vessel upgrade 
limits associated with their permits. Overall, this proposed rule would 
likely only result in some minor positive impacts on small entity 
profitability.
    This action is not expected to result in a significant economic 
impact on the small entities currently subject to the vessel upgrading 
restrictions. Although limited in scope, this action would ease a 
barrier to entry in the pelagic longline fishery, facilitate limited 
access permit transfers, provide increased business flexibility, and 
help vessel owners address safety issues. Therefore, removing vessel 
upgrading restrictions for vessels issued swordfish directed and 
Atlantic tunas Longline category LAPs will not have a significant 
impact on a substantial number of small entities. As a result, no 
initial regulatory flexibility analysis is required, and none has been 
prepared.

List of Subjects in 50 CFR Part 635

    Fisheries, Fishing, Fishing vessels, Foreign relations, Imports, 
Penalties, Reporting and recordkeeping requirements, Treaties.

    Dated: July 21, 2016.
Samuel D. Rauch III,
Deputy Assistant Administrator for Regulatory Programs, National Marine 
Fisheries Service.

    For reasons set out in the preamble, NMFS proposes to amend 50 CFR 
part 635 as follows:

PART 635--ATLANTIC HIGHLY MIGRATORY SPECIES

0
1. The authority citation for part 635 continues to read as follows:

    Authority: 16 U.S.C. 971 et seq.; 16 U.S.C. 1801 et seq.

0
2. In Sec.  635.4, revise paragraphs (l)(2)(i), (l)(2)(ii) introductory 
text, (l)(2)(ii)(B), and (l)(2)(ii)(C) to read as follows:


Sec.  635.4  Permits and fees.

* * * * *
    (l) * * *
    (2) * * *

[[Page 48735]]

    (i) Subject to the restrictions on upgrading the harvesting 
capacity of permitted vessels in paragraph (l)(2)(ii) of this section, 
as applicable, and to the limitations on ownership of permitted vessels 
in paragraph (l)(2)(iii) of this section, an owner may transfer a shark 
or swordfish LAP or an Atlantic Tunas Longline category permit to 
another vessel that he or she owns or to another person. Directed 
handgear LAPs for swordfish may be transferred to another vessel or to 
another person but only for use with handgear and subject to the 
upgrading restrictions in paragraph (l)(2)(ii) of this section and the 
limitations on ownership of permitted vessels in paragraph (l)(2)(iii) 
of this section. Shark directed and incidental LAPs, swordfish directed 
and incidental LAPs, and Atlantic Tunas Longline category permits are 
not subject to the upgrading requirements specified in paragraph 
(l)(2)(ii) of this section. Shark and swordfish incidental LAPs are not 
subject to the ownership requirements specified in paragraph 
(l)(2)(iii) of this section.
    (ii) An owner may upgrade a vessel with a swordfish handgear LAP, 
or transfer such permit to another vessel or to another person, and be 
eligible to retain or renew such permit only if the upgrade or transfer 
does not result in an increase in horsepower of more than 20 percent or 
an increase of more than 10 percent in length overall, gross registered 
tonnage, or net tonnage from the vessel baseline specifications.
* * * * *
    (B) Subsequent to the issuance of a swordfish handgear limited 
access permit, the vessel's horsepower may be increased, relative to 
the baseline specifications of the vessel initially issued the LAP, 
through refitting, replacement, or transfer. Such an increase may not 
exceed 20 percent of the baseline specifications of the vessel 
initially issued the LAP.
    (C) Subsequent to the issuance of a swordfish handgear limited 
access permit, the vessel's length overall, gross registered tonnage, 
and net tonnage may be increased, relative to the baseline 
specifications of the vessel initially issued the LAP, through 
refitting, replacement, or transfer. An increase in any of these three 
specifications of vessel size may not exceed 10 percent of the baseline 
specifications of the vessel initially issued the LAP. This type of 
upgrade may be done separately from an engine horsepower upgrade.
* * * * *
[FR Doc. 2016-17646 Filed 7-25-16; 8:45 am]
 BILLING CODE 3510-22-P



                                                                          Federal Register / Vol. 81, No. 143 / Tuesday, July 26, 2016 / Proposed Rules                                           48731

                                                 commercial quota would be less than                      for red grouper, in gutted weight, is                 noaaevents2/onstage/g.php?
                                                 under the second alternative but greater                 2,370,000 lb (1,075,014 kg).                          MTID=e7bad02475e6061ff9227fb
                                                 than under the preferred alternative, it                 *     *    *      *    *                              0842ccf332; meeting number: 998 920
                                                 would be expected to fall somewhere in                   [FR Doc. 2016–17518 Filed 7–25–16; 8:45 am]           078; event password: NOAA.
                                                 between those alternatives in terms of                   BILLING CODE 3510–22–P                                Participants that have not used WebEx
                                                 potential landings and likelihood of                                                                           before will be prompted to download
                                                 negative price effects for 2016 and 2017.                                                                      and run a plug-in program that will
                                                 In the long-term, this alternative would                 DEPARTMENT OF COMMERCE                                enable them to view the webinar.
                                                 result in the greatest commercial quota                                                                           You may submit comments on this
                                                 and greatest potential landings. Because                 National Oceanic and Atmospheric                      document, identified by NOAA–NMFS–
                                                 there is insufficient data to estimate the               Administration                                        2016–0087, by any of the following
                                                 total expected change in landings and                                                                          methods:
                                                 revenue, it is not possible to definitively              50 CFR Part 635                                          • Electronic Submission: Submit all
                                                 state which alternative would be                         [Docket No. 160531477–6477–01]                        electronic public comments via the
                                                 expected to result in the greatest                                                                             Federal e-Rulemaking Portal. Go to
                                                 economic benefits to the commercial                      RIN 0648–BG10                                         www.regulations.gov/#!docket
                                                 sector. This alternative was not selected                                                                      Detail;D=NOAA-NMFS-2016-0087, click
                                                                                                          Atlantic Highly Migratory Species;
                                                 for the same reasons the Council did not                                                                       the ‘‘Comment Now!’’ icon, complete
                                                                                                          Removal of Vessel Upgrade
                                                 select the second alternative.                                                                                 the required fields, and enter or attach
                                                                                                          Restrictions for Swordfish Directed
                                                                                                                                                                your comments.
                                                 List of Subjects in 50 CFR Part 622                      Limited Access and Atlantic Tunas
                                                                                                                                                                   • Mail: Submit written comments to
                                                   Annual catch limits, Annual catch                      Longline Category Permits
                                                                                                                                                                Margo Schulze-Haugen, NMFS/SF1,
                                                 targets, Fisheries, Fishing, Gulf,                       AGENCY:  National Marine Fisheries                    1315 East–West Highway, SSMC3,
                                                 Recreational, Red grouper, Reef fish,                    Service (NMFS), National Oceanic and                  Silver Spring, MD 20910.
                                                 Quotas.                                                  Atmospheric Administration (NOAA),                       Instructions: Comments sent by any
                                                   Dated: July 15, 2016.                                  Commerce.                                             other method, to any other address or
                                                 Samuel D. Rauch III,                                     ACTION: Proposed rule; request for                    individual, or received after the end of
                                                 Deputy Assistant Administrator for                       comments.                                             the comment period, may not be
                                                 Regulatory Programs, National Marine                                                                           considered by NMFS. All comments
                                                 Fisheries Service.
                                                                                                          SUMMARY:    This proposed rule would                  received are a part of the public record
                                                                                                          remove vessel upgrading restrictions for              and will generally be posted for public
                                                   For the reasons set out in the                         vessels issued swordfish directed and                 viewing on www.regulations.gov
                                                 preamble, 50 CFR part 622 is proposed                    Atlantic tunas Longline category limited              without change. All personal identifying
                                                 to be amended as follows:                                access permits (LAPs). Currently,                     information (e.g., name, address, etc.),
                                                                                                          regulations allow for upgrading vessels               confidential business information, or
                                                 PART 622—FISHERIES OF THE
                                                                                                          or transferring permits to another vessel             otherwise sensitive information
                                                 CARIBBEAN, GULF OF MEXICO, AND
                                                                                                          only if the vessel upgrade or permit                  submitted voluntarily by the sender will
                                                 SOUTH ATLANTIC
                                                                                                          transfer results in an increase of no                 be publicly accessible. NMFS will
                                                 ■ 1. The authority citation for part 622                 more than 35 percent in length overall,               accept anonymous comments (enter
                                                 continues to read as follows:                            gross registered tonnage, and net                     ‘‘N/A’’ in the required fields if you wish
                                                                                                          tonnage, as measured relative to the                  to remain anonymous).
                                                     Authority: 16 U.S.C. 1801 et seq.
                                                                                                          baseline vessel specifications (i.e., the                Presentation materials and copies of
                                                 ■ 2. In § 622.39, revise paragraph                       specifications of the vessel first issued             the supporting documents are available
                                                 (a)(1)(iii)(C) to read as follows:                       an HMS LAP). The proposed rule                        from the HMS Management Division
                                                                                                          eliminates these restrictions on                      Web site at http://www.nmfs.noaa.gov/
                                                 § 622.39    Quotas.
                                                                                                          upgrades and permit transfers. This                   sfa/hms/ or by contacting Steve Durkee
                                                 *       *    *     *     *                               action could affect vessel owners issued              by phone at 202–670–6637 or Rick
                                                    (a) * * *                                             swordfish directed and Atlantic tunas                 Pearson by phone at 727–824–5399.
                                                    (1) * * *                                             Longline category LAPs and fishing in
                                                    (iii) * * *                                                                                                 FOR FURTHER INFORMATION CONTACT:
                                                                                                          the Atlantic Ocean, including the Gulf                Steve Durkee by phone at 202–670–6637
                                                    (C) Red grouper—7,780,000 lb                          of Mexico and Caribbean Sea. Swordfish
                                                 (3,528,949 kg).                                                                                                or Rick Pearson by phone at 727–824–
                                                                                                          handgear LAP upgrade restrictions are                 5399.
                                                 *       *    *     *     *                               not being addressed in this proposed
                                                 ■ 3. In § 622.41, revise the last sentence                                                                     SUPPLEMENTARY INFORMATION:
                                                                                                          rule.
                                                 of paragraph (e)(1) and paragraph                        DATES: Written comments must be                       Background
                                                 (e)(2)(iv) to read as follows:                           received by September 26, 2016. An                       The U.S. Atlantic swordfish and tuna
                                                 § 622.41 Annual catch limits (ACLs),                     operator-assisted, public conference call             fisheries are managed under the 2006
                                                 annual catch targets (ACTs), and                         and webinar will be held on August 23,                Consolidated Highly Migratory Species
                                                 accountability measures (AMs).                           2016, from 2:30 p.m. to 4:30 p.m., EST.               (HMS) Fishery Management Plan (FMP)
                                                 *      *    *     *    *                                 ADDRESSES: The conference call                        and its amendments. Implementing
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                                                    (e) * * *                                             information is phone number 888–843–                  regulations at 50 CFR part 635 are
                                                    (1) * * * The applicable commercial                   6165; participant passcode 6512640.                   issued under the authority of the
                                                 ACL for red grouper, in gutted weight,                   Participants are strongly encouraged to               Magnuson-Stevens Fishery
                                                 is 8,190,000 lb (3,714,922 kg).                          log/dial in 15 minutes prior to the                   Conservation and Management Act
                                                    (2) * * *                                             meeting. NMFS will show a brief                       (Magnuson-Stevens Act), 16 U.S.C. 1801
                                                    (iv) The recreational ACL for red                     presentation via webinar followed by                  et seq., and the Atlantic Tunas
                                                 grouper, in gutted weight, is 2,580,000                  public comment. To join the webinar go                Convention Act (ATCA), 16 U.S.C. 971
                                                 lb (1,170,268 kg). The recreational ACT                  to: https://noaaevents2.webex.com/                    et seq. ATCA authorizes the Secretary of


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                                                 48732                    Federal Register / Vol. 81, No. 143 / Tuesday, July 26, 2016 / Proposed Rules

                                                 Commerce (Secretary) to promulgate                       biomass necessary to produce maximum                  exist with older vessels. For these
                                                 regulations, as may be necessary and                     sustainable yield (Bmsy), and the 2005                reasons, and those discussed below,
                                                 appropriate, to implement                                fishing mortality rate (F2005) was                    NMFS is proposing to remove vessel
                                                 recommendations of the International                     estimated to be 0.86 times the fishing                upgrading restrictions for swordfish
                                                 Commission for the Conservation of                       mortality rate at maximum sustainable                 directed and Atlantic tunas Longline
                                                 Atlantic Tunas (ICCAT).                                  yield (Fmsy). The 2007 action modified                LAPs.
                                                    In 1999, the National Marine Fisheries                limited access vessel upgrading and                      Since implementing the vessel
                                                 Service (NMFS) issued initial LAPs in                    permit transfer restrictions for vessels              upgrade requirements in 1999 and
                                                 the Atlantic swordfish and shark                         that were concurrently issued, or were                modifying them in 2007, several
                                                 fisheries (64 FR 29090, March 28, 1999).                 eligible to renew, directed or incidental             important things have changed in the
                                                 To be eligible to fish with pelagic                      swordfish, directed or incidental shark,              Atlantic HMS pelagic longline fishery.
                                                 longline gear, a vessel had to be issued                 and Atlantic tunas Longline category                  First, there are fewer swordfish permit
                                                 a swordfish directed or incidental LAP,                  LAPs (i.e., vessels that were eligible to             holders. From the mid-to-late 1990s,
                                                 a shark directed or incidental LAP, and                  fish with pelagic longline gear). The rule            more than 2,000 commercial open
                                                 an Atlantic tunas Longline category                      also clarified that Atlantic tunas                    access swordfish permits were issued
                                                 permit. After initial issuance of these                  Longline category LAPs were subject to                annually, and the pelagic longline fleet
                                                 permits, no new permits were issued by                   the same vessel upgrade restrictions as               had become overcapitalized. The
                                                 NMFS, but permits could be transferred                   swordfish and shark directed LAPs.                    directed swordfish fishery was closed
                                                 to other vessels. Swordfish and shark                    These measures allowed eligible vessel                temporarily in 1995, and again in 1997,
                                                 directed LAPs included restrictions on                   owners to upgrade their vessels by 35                 due to quota overages, and the
                                                 vessel upgrading and permit transfers.                   percent in size (length overall, gross                swordfish stock was overfished (B/Bmsy
                                                 Vessel upgrades and permit transfers                     registered tonnage, and net tonnage)                  = 0.715) with overfishing occurring (F/
                                                 were allowed only if the upgrade or                      relative to the specifications of the                 Fmsy = 1.169). Also in 1999, ICCAT
                                                 permit transfer to another vessel did not                baseline vessel, and removed upgrade                  adopted an international rebuilding
                                                 result in an increase in horsepower of                   limits on horsepower. Additionally,                   plan for North Atlantic swordfish
                                                 more than 20 percent or an increase of                   these permits could be upgraded more                  (ICCAT Recommendation 99–02) and
                                                 more than 10 percent in length overall,                  than once, provided that the new                      passed a resolution to examine time/
                                                 gross registered tonnage, or net tonnage                 maximum upgrade limits were not                       area closures and gear modification
                                                 relative to the respective specifications                exceeded.                                             measures to reduce catches of
                                                 of the first vessel issued the initial LAP                                                                     undersized swordfish (Res. 99–04).
                                                 (the baseline vessel). Additionally,                        NMFS now is considering removing                   Thus, in 1999, NMFS was particularly
                                                 vessels could only be upgraded one                       these vessel upgrading restrictions for               concerned about ensuring that pelagic
                                                 time. These vessel upgrading                             vessels issued swordfish directed and                 longline fishing effort and fleet capacity
                                                 restrictions were put into place to limit                Atlantic tunas Longline category LAPs.                were commensurate with the available
                                                 capacity in the swordfish fishery and to                 Under the current regulatory framework                swordfish quota, and the vessel
                                                 be consistent with the New England and                   and given the now rebuilt status of the               upgrading restrictions were part of
                                                 Mid-Atlantic Fishery Management                          North Atlantic swordfish stock, these                 NMFS’ management strategy to reduce
                                                 Council’s permit policies at the time.                   restrictions have the effect of reducing              capacity. That situation does not exist
                                                 Incidental LAPs for these species did                    flexibility in the pelagic longline fishery           today. Fleet capacity has been reduced
                                                 not have vessel upgrading restrictions.                  for persons interested in entering the                through the successful application of
                                                 Upgrading restrictions for Atlantic tunas                fishery, purchasing a new vessel, or                  the initial LAP qualification criteria and
                                                 Longline category LAPs were not                          upgrading their existing vessel.                      attrition over time. In 1998, prior to the
                                                 explicitly implemented in the 1999 rule.                 Currently, a new entrant to the fishery               implementation of upgrade restrictions,
                                                 As a practical effect, Atlantic tunas                    must obtain an available permit with an               233 pelagic longline vessels among the
                                                 Longline category LAPs were limited by                   associated maximum upgrade limit that                 2,000 permit holders landed swordfish
                                                 the same upgrading restrictions as the                   accommodates his vessel size. This can                and thus were considered ‘‘active.’’ The
                                                 swordfish and shark directed permits                     limit and complicate the permit transfer              number of such vessels dropped to a
                                                 due to the requirement to hold all three                 as the owner searches for a permit                    low of 102 in 2006 and has remained
                                                 permits when fishing with pelagic                        suitable to the vessel. For a vessel owner            between 109 and 122 vessels since then.
                                                 longline gear.                                           who is already issued a swordfish                     Similarly, as of December 30, 1999,
                                                    On June 7, 2007 (72 FR 31688), NMFS                   directed and/or Atlantic tunas Longline               approximately 451 directed and
                                                 issued a final rule amending the highly                  category LAP that wants to purchase a                 incidental swordfish LAPs had been
                                                 migratory species (HMS) fishery                          new vessel or enlarge an existing vessel,             issued. By 2015, permit numbers had
                                                 regulations to provide additional                        the new or upgraded vessel may not                    been reduced to 260 directed and
                                                 opportunities for U.S. vessels to more                   exceed the permit’s maximum vessel                    incidental swordfish LAPs. Permit
                                                 fully utilize the North Atlantic                         upgrading limit. This can limit and                   numbers are expected to remain at
                                                 swordfish quota, recognizing the                         complicate the permit holder’s                        approximately these levels because no
                                                 improved status of the species. The                      purchasing options. Because there are                 new LAPs are being issued.
                                                 ICCAT Standing Committee on Research                     usually only a small number of                           Second, other requirements
                                                 and Statistics (SCRS) had completed a                    swordfish directed and Atlantic tunas                 implemented since 1999, such as those
                                                 stock assessment for North Atlantic                      Longline permits available, it is often               designed to reduce bycatch in the
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                                                 swordfish in October 2006 indicating                     difficult to find a permit that                       pelagic longline fishery (e.g., closed
                                                 that the North Atlantic swordfish                        accommodates the target vessel size.                  areas, bait requirements, individual
                                                 biomass had improved, possibly due to                    NMFS also has heard from swordfish                    bluefin tuna quotas, and gear
                                                 strong recruitment in the late 1990s                     and tuna LAP permit holders that the                  restrictions), have also limited fishing
                                                 combined with reductions in reported                     vessel upgrading restrictions restrict                effort. The directed North Atlantic
                                                 catch since then. The SCRS estimated                     their ability to transfer permits to newer            swordfish quota has not been exceeded
                                                 that the stock biomass at the beginning                  vessels, which could have greater                     in almost 20 years and, in fact, has been
                                                 of 2006 (B2006) was at 99 percent of the                 capacity, and address safety issues that              underharvested for a number of years.


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                                                                          Federal Register / Vol. 81, No. 143 / Tuesday, July 26, 2016 / Proposed Rules                                         48733

                                                    Third, during this same time period,                     Removing the upgrading restrictions                   This proposed rule has been
                                                 the stock status of north Atlantic                       is not expected to affect the number of               determined to be not significant for
                                                 swordfish has significantly improved. In                 swordfish and tunas being landed by                   purposes of Executive Order 12866.
                                                 2009, ICCAT declared that the stock has                  vessels, as these amounts are                            NMFS has made a preliminary
                                                 been fully rebuilt. Using domestic stock                 determined by established quotas and                  determination that this action qualifies
                                                 status thresholds, NMFS has also                         effort controls (including, for example,              to be categorically excluded from the
                                                 declared that the north Atlantic                         individual vessel quotas for bluefin                  requirement to prepare an
                                                 swordfish stock is not overfished and                    tuna) not the size of the vessel. Thus,               environmental assessment in
                                                 that overfishing is not occurring.                       this action is expected to have no                    accordance with NMFS’ Environmental
                                                    In addition to limiting capacity in the               ecological impacts and would not result               Review Procedures for Implementing
                                                 HMS pelagic longline fishery, a                          in additional interactions with protected             the National Environmental Policy Act
                                                 secondary goal for implementing the                      resources, given the other restrictions on            (NOAA Administrative Order 216–6),
                                                 specific swordfish directed and Atlantic                 the Atlantic HMS pelagic longline                     subject to further consideration after
                                                 tunas Longline vessel upgrade limits                     fishery.                                              public comment. This action falls
                                                 adopted in 1999 was to be consistent                                                                           within the scope of effects already
                                                 with similar regulations previously                      Request for Comments                                  analyzed in the Final Environmental
                                                 established by the New England and                          NMFS is requesting comments on any                 Impact Statement (EIS) prepared for the
                                                 Mid-Atlantic Fishery Management                          of the measures or analyses described in              2006 Consolidated Atlantic HMS FMP,
                                                 Councils (Councils). In August 2015, the                 this proposed rule. NMFS is specifically              the 2012 Environmental Assessment
                                                 Councils removed gross registered and                    requesting comments on its decision to                prepared for the rulemaking on North
                                                 net tonnage limits (80 FR 51754) so that                 certify that the proposed rule would not              and South Atlantic Swordfish Quotas
                                                 only length and horsepower limits                        have a significant economic impact on                 and Management Measures (77 FR
                                                 remain in effect. Because this HMS                       a substantial number of small entities                45273, July 31, 2012), and the Final EIS
                                                 action would remove all upgrade                          and on the analysis below that supports               for Amendment 7 to the 2006
                                                 restrictions for vessels issued swordfish                that decision and on our assessment that              Consolidated HMS FMP. Section
                                                 directed and Atlantic tunas Longline                     relieving the restrictions would have no              6.03a.3.(b)(2) of NOAA Administrative
                                                 category LAPs, only the Council                          ecological impacts. During the comment                Order 216–6 specifies that certain
                                                 regulations would limit vessel                           period, NMFS will hold one conference                 actions may be categorically excluded
                                                 upgrading for vessels issued LAPs for                    call and webinar for this proposed rule.              from further NEPA analysis including
                                                 both Council-managed species and                         The conference call and webinar will be               minor changes to a management plan
                                                 HMS. Thus, there would be no conflict                    held on August 23, 2016, from 2:30–4:30               when those effects have already been
                                                 between Council and HMS vessel                           p.m. EST. Please see the DATES and                    analyzed and additional effects are not
                                                 upgrade restrictions. This action would                  ADDRESSES headings for more
                                                                                                                                                                expected. This action will have no
                                                 simplify compliance for dually                           information.                                          additional effects that were not already
                                                 permitted vessels and provide greater                                                                          analyzed, and the action is not
                                                 flexibility for HMS permitted vessels.                      The public is reminded that NMFS                   precedent-setting or controversial. It
                                                    The overall reduction in pelagic                      expects participants on phone                         would not affect the number of
                                                 longline fleet capacity, in combination                  conferences to conduct themselves                     swordfish and tunas being landed by
                                                 with the totality of effort controls                     appropriately. At the beginning of the                vessels and would not result in
                                                 implemented since 1999, sufficiently                     conference call, a representative of                  additional interactions with protected
                                                 limits the fishery’s capacity. Vessel                    NMFS will explain the ground rules                    resources, as these amounts are
                                                 upgrading and related permit transfer                    (e.g., all comments are to be directed to             determined by the established quotas
                                                 restrictions are no longer necessary or                  the agency on the proposed action;                    and effort controls, not the size of the
                                                 relevant for the Atlantic HMS pelagic                    attendees will be called to give their                vessel, and the effects of those
                                                 longline fishery at this time. Thus, this                comments in the order in which they                   established quotas and effort controls
                                                 proposed rule would remove all                           registered to speak; each attendee will               have already been analyzed.
                                                 upgrading restrictions for vessels issued                have an equal amount of time to speak;                   NMFS has determined that this
                                                 swordfish directed and Atlantic tunas                    attendees may not interrupt one                       proposed rule will have no effects on
                                                 Longline category LAPs. Although                         another; etc.). NMFS representative(s)                any coastal use or resource, and a
                                                 limited in scope, this action would ease                 will structure the meeting so that all                negative determination pursuant to 15
                                                 a barrier to entry in the pelagic longline               attending members of the public will be               CFR 930.35 is not required. Therefore,
                                                 fishery, facilitate limited access permit                able to comment, if they so choose,                   pursuant to 15 CFR 930.33(a)(2),
                                                 transfers, provide increased business                    regardless of the controversial nature of             coordination with appropriate state
                                                 flexibility, and help vessel owners                      the subject(s). Attendees are expected to             agencies under section 307 of the
                                                 address safety issues.                                   respect the ground rules, and those that              Coastal Zone Management Act (CZMA)
                                                    The proposed action would provide                     do not may be removed from the                        is not required. No changes to the
                                                 more flexibility for current permit                      conference call.                                      human environment are anticipated
                                                 holders by eliminating the upgrading                     Classification                                        because removing the vessel upgrading
                                                 restrictions for swordfish directed and                                                                        restrictions would not affect the number
                                                 Atlantic tunas Longline category LAP                        Pursuant to the Magnuson-Stevens                   of swordfish and tunas being landed by
                                                 permit holders. Eliminating vessel                       Act, the NMFS Assistant Administrator                 vessels, as these amounts are
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                                                 upgrading restrictions would have                        has determined that this proposed rule                determined by the established quotas
                                                 short- and long-term minor beneficial                    is consistent with the 2006 Consolidated              and effort controls, not the size of the
                                                 socioeconomic impacts, since it would                    HMS FMP and its amendments, other                     vessel.
                                                 allow fishermen to buy, sell, or transfer                provisions of the Magnuson-Stevens                       The Chief Counsel for Regulation of
                                                 swordfish directed and Atlantic tunas                    Act, the Atlantic Tuna Convention Act,                the Department of Commerce certified
                                                 Longline category LAPs without                           and other applicable law, subject to                  to the Chief Counsel for Advocacy of the
                                                 concerns about exceeding the maximum                     further consideration after public                    Small Business Administration that this
                                                 upgrade limit for the permits.                           comment.                                              proposed rule, if adopted, would not


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                                                 48734                    Federal Register / Vol. 81, No. 143 / Tuesday, July 26, 2016 / Proposed Rules

                                                 have a significant economic impact on                       NMFS considers all HMS pelagic                     vessel upgrade restrictions is likely very
                                                 a substantial number of small entities                   longline permit holders to be small                   limited. In the long-term, removing the
                                                 under section 605(b) of the Regulatory                   entities because these vessels have                   upgrading restrictions would allow
                                                 Flexibility Act (RFA).                                   reported annual gross receipts of less                greater flexibility for permit holders to
                                                    The U.S. Atlantic swordfish and tuna                  than $11 million for commercial fishing.              upgrade their vessels and address safety
                                                 fisheries are managed under the 2006                     NMFS has determined that this                         issues. The removal of upgrading
                                                 Consolidated Highly Migratory Species                    proposed rule would apply to the 280                  restrictions is not expected to result in
                                                 Fishery Management Plan (2006                            permit holders that were issued Atlantic              disproportionate adverse effects on
                                                 Consolidated HMS FMP) and its                            tunas Longline category LAPs in 2015,                 pelagic longline fishing operations of
                                                 amendments. Implementing regulations                     since these permit holders also already               different sizes, and is actually likely to
                                                 at 50 CFR part 635 are issued under the                  possess the required swordfish directed               help smaller vessel owners slightly
                                                 authority of the Magnuson-Stevens Act,                   or incidental permits to fish with                    more than owners of larger vessels
                                                 16 U.S.C. 1801 et seq., and ATCA, 16                     pelagic longline gear.                                because they are more likely to have
                                                 U.S.C. 971 et seq. ATCA authorizes the                      The economic effects of this proposed              lower vessel upgrade limits associated
                                                 Secretary of Commerce (Secretary) to                     rule to remove vessel upgrading                       with their permits. Overall, this
                                                 promulgate regulations, as may be                        restrictions for vessels issued swordfish             proposed rule would likely only result
                                                 necessary and appropriate, to                            directed and Atlantic tunas Longline                  in some minor positive impacts on
                                                 implement ICCAT recommendations. As                      category LAPs would likely not result in              small entity profitability.
                                                 discussed above, the purpose of this                     any significant adverse impacts on the                   This action is not expected to result
                                                 proposed rule is to remove vessel                        280 permit holders. The removal of                    in a significant economic impact on the
                                                 upgrading restrictions for vessels issued                vessel upgrading restrictions would                   small entities currently subject to the
                                                 swordfish directed and Atlantic tunas                    reduce a regulatory burden that prevents              vessel upgrading restrictions. Although
                                                 Longline category LAPs to ease a barrier                 fishermen from upgrading their vessels                limited in scope, this action would ease
                                                 to entry in the pelagic longline fishery,                beyond established limits due to an                   a barrier to entry in the pelagic longline
                                                 facilitate limited access permit transfers,              outdated restriction. It would not result             fishery, facilitate limited access permit
                                                 provide increased business flexibility,                  in any short-term costs to these small                transfers, provide increased business
                                                 and help vessel owners address safety                    entities. This proposed rule would                    flexibility, and help vessel owners
                                                 issues.                                                  allow these permit holders to freely                  address safety issues. Therefore,
                                                    Section 603(b)(3) of the Regulatory                   upgrade their vessels without being                   removing vessel upgrading restrictions
                                                 Flexibility Act requires Agencies to                     constrained by the length overall, gross              for vessels issued swordfish directed
                                                 provide an estimate of the number of                     registered tonnage, and net tonnage                   and Atlantic tunas Longline category
                                                 small entities to which the rule would                   limits currently specified on their                   LAPs will not have a significant impact
                                                 apply. The Small Business                                permits. In the short-term, it is likely              on a substantial number of small
                                                 Administration (SBA) has established                     that only a few permit holders will opt               entities. As a result, no initial regulatory
                                                 size criteria for all major industry                     to invest in new vessels or vessel                    flexibility analysis is required, and none
                                                 sectors in the United States, including                  upgrades based on past experience with                has been prepared.
                                                 fish harvesters. Under SBA’s                             these kinds of requests. Those who                    List of Subjects in 50 CFR Part 635
                                                 regulations, an agency may develop its                   invest in new vessels or upgrades in the
                                                 own industry-specific size standards                     short-term would potentially face lower                 Fisheries, Fishing, Fishing vessels,
                                                 after consultation with the SBA Office                   transaction costs, since they would not               Foreign relations, Imports, Penalties,
                                                 of Advocacy and an opportunity for                       have to potentially search for and                    Reporting and recordkeeping
                                                 public comment (see 13 CFR                               acquire permits with higher upgrade                   requirements, Treaties.
                                                 121.903(c)). Under this provision,                       capabilities. In addition, new entrants in              Dated: July 21, 2016.
                                                 NMFS may establish size standards that                   the fishery would have more options in                Samuel D. Rauch III,
                                                 differ from those established by the SBA                 acquiring permits, since they would not               Deputy Assistant Administrator for
                                                 Office of Size Standards, but only for                   be limited by vessel size. Current permit             Regulatory Programs, National Marine
                                                 use by NMFS and only for the purpose                     holders with permits with high length                 Fisheries Service.
                                                 of conducting an analysis of economic                    overall, gross registered tonnage, and
                                                 effects in fulfillment of the agency’s                   net tonnage baselines might face slightly               For reasons set out in the preamble,
                                                 obligations under the RFA. On                            lower demand for their permits, and                   NMFS proposes to amend 50 CFR part
                                                 December 29, 2015, NMFS issued a final                   thus reduced value of their permits                   635 as follows:
                                                 rule establishing a small business size                  under this proposed rule because these                PART 635—ATLANTIC HIGHLY
                                                 standard of $11 million in annual gross                  permits can currently be transferred to               MIGRATORY SPECIES
                                                 receipts for all businesses primarily                    more, and larger, vessels than permits
                                                 engaged in the commercial fishing                        with lower baseline specifications.                   ■ 1. The authority citation for part 635
                                                 industry (NAICS 11411) for RFA                           However, since the implementation of                  continues to read as follows:
                                                 compliance purposes only (80 FR                          Individual Bluefin Quota (IBQ) program
                                                 81194, December 29, 2015). The $11                       under Amendment 7 to the 2006                           Authority: 16 U.S.C. 971 et seq.; 16 U.S.C.
                                                                                                                                                                1801 et seq.
                                                 million standard became effective on                     Consolidated HMS FMP, much of the
                                                 July 1, 2016, and is to be used in place                 economic value of the swordfish                       ■  2. In § 635.4, revise paragraphs
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                                                 of the SBA’s current standards of $20.5                  directed and Atlantic tunas Longline                  (l)(2)(i), (l)(2)(ii) introductory text,
                                                 million, $5.5 million, and $7.5 million                  category permit value has shifted from                (l)(2)(ii)(B), and (l)(2)(ii)(C) to read as
                                                 for the finfish (NAICS 114111), shellfish                these permits to the actual IBQ shares                follows:
                                                 (NAICS 114112), and other marine                         bundled with those permits, because
                                                 fishing (NAICS 114119) sectors of the                    IBQ allocation is now required to fish                § 635.4    Permits and fees.
                                                 U.S. commercial fishing industry in all                  with pelagic longline gear. Therefore,                *       *     *    *     *
                                                 NMFS rules subject to the RFA after July                 the likely economic impact on permit                      (l) * * *
                                                 1, 2016. Id. at 81194.                                   values of this proposed rule to remove                    (2) * * *


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                                                                          Federal Register / Vol. 81, No. 143 / Tuesday, July 26, 2016 / Proposed Rules                                                 48735

                                                    (i) Subject to the restrictions on                    paragraph (l)(2)(ii) of this section. Shark           replacement, or transfer. Such an
                                                 upgrading the harvesting capacity of                     and swordfish incidental LAPs are not                 increase may not exceed 20 percent of
                                                 permitted vessels in paragraph (l)(2)(ii)                subject to the ownership requirements                 the baseline specifications of the vessel
                                                 of this section, as applicable, and to the               specified in paragraph (l)(2)(iii) of this            initially issued the LAP.
                                                 limitations on ownership of permitted                    section.
                                                                                                             (ii) An owner may upgrade a vessel                    (C) Subsequent to the issuance of a
                                                 vessels in paragraph (l)(2)(iii) of this
                                                                                                          with a swordfish handgear LAP, or                     swordfish handgear limited access
                                                 section, an owner may transfer a shark
                                                 or swordfish LAP or an Atlantic Tunas                    transfer such permit to another vessel or             permit, the vessel’s length overall, gross
                                                 Longline category permit to another                      to another person, and be eligible to                 registered tonnage, and net tonnage may
                                                 vessel that he or she owns or to another                 retain or renew such permit only if the               be increased, relative to the baseline
                                                 person. Directed handgear LAPs for                       upgrade or transfer does not result in an             specifications of the vessel initially
                                                 swordfish may be transferred to another                  increase in horsepower of more than 20                issued the LAP, through refitting,
                                                 vessel or to another person but only for                 percent or an increase of more than 10                replacement, or transfer. An increase in
                                                 use with handgear and subject to the                     percent in length overall, gross                      any of these three specifications of
                                                 upgrading restrictions in paragraph                      registered tonnage, or net tonnage from               vessel size may not exceed 10 percent
                                                 (l)(2)(ii) of this section and the                       the vessel baseline specifications.                   of the baseline specifications of the
                                                 limitations on ownership of permitted                    *       *   *     *      *                            vessel initially issued the LAP. This
                                                 vessels in paragraph (l)(2)(iii) of this                    (B) Subsequent to the issuance of a                type of upgrade may be done separately
                                                 section. Shark directed and incidental                   swordfish handgear limited access                     from an engine horsepower upgrade.
                                                 LAPs, swordfish directed and incidental                  permit, the vessel’s horsepower may be                *      *     *     *    *
                                                 LAPs, and Atlantic Tunas Longline                        increased, relative to the baseline                   [FR Doc. 2016–17646 Filed 7–25–16; 8:45 am]
                                                 category permits are not subject to the                  specifications of the vessel initially
                                                                                                                                                                BILLING CODE 3510–22–P
                                                 upgrading requirements specified in                      issued the LAP, through refitting,
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Document Created: 2018-02-08 08:01:01
Document Modified: 2018-02-08 08:01:01
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.
DatesWritten comments must be received by September 26, 2016. An operator-assisted, public conference call and webinar will be held on August 23, 2016, from 2:30 p.m. to 4:30 p.m., EST.
ContactSteve Durkee by phone at 202-670-6637 or Rick Pearson by phone at 727-824-5399.
FR Citation81 FR 48731 
RIN Number0648-BG10
CFR AssociatedFisheries; Fishing; Fishing Vessels; Foreign Relations; Imports; Penalties; Reporting and Recordkeeping Requirements and Treaties

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