81_FR_63027 81 FR 62850 - Fisheries of the Exclusive Economic Zone Off Alaska; Bering Sea and Aleutian Islands Crab Rationalization Program

81 FR 62850 - Fisheries of the Exclusive Economic Zone Off Alaska; Bering Sea and Aleutian Islands Crab Rationalization Program

DEPARTMENT OF COMMERCE
National Oceanic and Atmospheric Administration

Federal Register Volume 81, Issue 177 (September 13, 2016)

Page Range62850-62853
FR Document2016-21824

The North Pacific Fishery Management Council submitted Amendment 47 to the Fishery Management Plan for Bering Sea/Aleutian Islands King and Tanner Crabs (Crab FMP) to NMFS for review. If approved, Amendment 47 would exempt eastern Chionoecetes bairdi Tanner (EBT) and western C. bairdi Tanner (WBT) crab that is custom processed at a facility through contractual arrangements with the processing facility owners from being applied against the individual processing quota (IPQ) use cap of the processing facility owners. Amendment 47 would modify the Crab FMP to allow all of the EBT and WBT Class A individual fishing quota crab to be processed at the facilities currently processing EBT and WBT crab and would have significant, positive economic effects on the fishermen, processors, and communities that participate in the EBT and WBT fisheries. This action is intended to promote the goals and objectives of the Magnuson-Stevens Fishery Conservation and Management Act, the Crab FMP, and other applicable laws.

Federal Register, Volume 81 Issue 177 (Tuesday, September 13, 2016)
[Federal Register Volume 81, Number 177 (Tuesday, September 13, 2016)]
[Proposed Rules]
[Pages 62850-62853]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-21824]


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DEPARTMENT OF COMMERCE

National Oceanic and Atmospheric Administration

50 CFR Part 680

RIN 0648-BG15


Fisheries of the Exclusive Economic Zone Off Alaska; Bering Sea 
and Aleutian Islands Crab Rationalization Program

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

ACTION: Notice of availability of fishery management plan amendment; 
request for comments.

-----------------------------------------------------------------------

SUMMARY: The North Pacific Fishery Management Council submitted 
Amendment 47 to the Fishery Management Plan for Bering Sea/Aleutian 
Islands King and Tanner Crabs (Crab FMP) to NMFS for review. If 
approved, Amendment 47 would exempt eastern Chionoecetes bairdi Tanner 
(EBT) and western C. bairdi

[[Page 62851]]

Tanner (WBT) crab that is custom processed at a facility through 
contractual arrangements with the processing facility owners from being 
applied against the individual processing quota (IPQ) use cap of the 
processing facility owners. Amendment 47 would modify the Crab FMP to 
allow all of the EBT and WBT Class A individual fishing quota crab to 
be processed at the facilities currently processing EBT and WBT crab 
and would have significant, positive economic effects on the fishermen, 
processors, and communities that participate in the EBT and WBT 
fisheries. This action is intended to promote the goals and objectives 
of the Magnuson-Stevens Fishery Conservation and Management Act, the 
Crab FMP, and other applicable laws.

DATES: Submit comments on or before November 14, 2016.

ADDRESSES: You may submit comments on this document, identified by 
NOAA-NMFS-2016-0081, by any one 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-2016-0081, click the 
``Comment Now!'' icon, complete the required fields, and enter or 
attach your comments.
     Mail: Submit written comments to Glenn Merrill, Assistant 
Regional Administrator, Sustainable Fisheries Division, Alaska Region 
NMFS, Attn: Ellen Sebastian. Mail comments to P.O. Box 21668, Juneau, 
AK 99802-1668.
    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), 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).
    Electronic copies of the Regulatory Impact Review/Initial 
Regulatory Flexibility Analysis (RIR/IRFA) (collectively referred to as 
the ``Analysis'') and the Categorical Exclusion prepared for Amendment 
47 may be obtained from http://www.regulations.gov or from the NMFS 
Alaska Region Web site at http://alaskafisheries.noaa.gov.
    The Environmental Impact Statement, RIR, Final Regulatory 
Flexibility Analysis, and Social Impact Assessment prepared for the 
Crab Rationalization Program are available from the NMFS Alaska Region 
Web site at http://alaskafisheries.noaa.gov.

FOR FURTHER INFORMATION CONTACT: Keeley Kent, 907-586-7228.

SUPPLEMENTARY INFORMATION: The Magnuson-Stevens Fishery Conservation 
and Management Act (Magnuson-Stevens Act) requires that each regional 
fishery management council submit any fishery management plan amendment 
it prepares to NMFS for review and approval, disapproval, or partial 
approval by the Secretary of Commerce. The Magnuson-Stevens Act also 
requires that NMFS, upon receiving a fishery management plan amendment, 
immediately publish a notice in the Federal Register announcing that 
the amendment is available for public review and comment. This notice 
announces that proposed Amendment 47 to the Crab FMP is available for 
public review and comment.
    NMFS manages the king and Tanner crab fisheries in the U.S. 
exclusive economic zone of the Bering Sea and Aleutian Islands (BSAI) 
under the Crab FMP. The North Pacific Fishery Management Council 
(Council) prepared, and NMFS approved, the Crab FMP under the authority 
of the Magnuson-Stevens Act, 16 U.S.C. 1801 et seq. Regulations 
governing U.S. fisheries and implementing the Crab FMP appear at 50 CFR 
parts 600 and 680.
    The Crab Rationalization Program (Program) was implemented on March 
2, 2005 (70 FR 10174). The Program established a limited access 
privilege program for nine crab fisheries in the BSAI, including the 
EBT and WBT crab fisheries, and assigned quota share (QS) to persons 
based on their historic participation in one or more of those nine BSAI 
crab fisheries during a specific period. Under the Program, NMFS issued 
four types of QS: Catcher vessel owner (CVO) QS was assigned to holders 
of License Limitation Program (LLP) licenses who delivered their catch 
to shoreside crab processors or to stationary floating crab processors; 
catcher/processor vessel owner QS was assigned to LLP license holders 
who harvested and processed their catch at sea; captains and crew on 
board catcher/processor vessels were issued catcher/processor crew QS; 
and captains and crew on board catcher vessels were issued catcher 
vessel crew QS. Each year, a person who holds QS may receive an 
exclusive harvest privilege for a portion of the annual total allowable 
catch, called individual fishing quota (IFQ).
    NMFS also issued processor quota share (PQS) under the Program. 
Each year PQS yields an exclusive privilege to process a portion of the 
IFQ in each of the nine BSAI crab fisheries. This annual exclusive 
processing privilege is called individual processor quota (IPQ). Only a 
portion of the QS issued yields IFQ that is required to be delivered to 
a processor with IPQ. QS derived from deliveries made by catcher vessel 
owners (i.e., CVO QS) is subject to designation as either Class A IFQ 
or Class B IFQ. Ninety percent of the IFQ derived from CVO QS is 
designated as Class A IFQ, and the remaining 10 percent is designated 
as Class B IFQ. Class A IFQ must be matched and delivered to a 
processor with IPQ. Class B IFQ is not required to be delivered to a 
specific processor with IPQ. Each year there is a one-to-one match of 
the total pounds of Class A IFQ with the total pounds of IPQ issued in 
each crab fishery.
    When the Council recommended the Program, it expressed concern 
about the potential for excessive consolidation of QS and PQS, in which 
too few persons control all of the QS or PQS and the resulting annual 
IFQ and IPQ. The Council determined that excessive consolidation could 
have adverse effects on crab markets, price setting negotiations 
between harvesters and processors, employment opportunities for 
harvesting and processing crew, tax revenue to communities in which 
crab are landed, and other factors considered and described in the 
Program EIS. To address these concerns, the Program limits the amount 
of QS that a person can hold (i.e., own), the amount of IFQ that a 
person can use, and the amount of IFQ that can be used on board a 
vessel. Similarly, the Program limits the amount of PQS that a person 
can hold, the amount of IPQ that a person can use, and the amount of 
IPQ that can be processed at a given facility. These limits are 
commonly referred to as use caps.
    In most of the nine BSAI crab fisheries under the Program, 
including the Tanner crab fisheries, a person is limited to holding no 
more than 30 percent of the PQS initially issued in the fishery, and to 
using no more than the amount of IPQ resulting from 30 percent of the 
initially issued PQS in a given fishery, with a limited exemption for 
persons receiving more than 30 percent of the initially issued PQS. No 
person in the EBT or WBT crab fisheries received in excess of 30 
percent of the initially issued PQS (see Section 2.5.2 of

[[Page 62852]]

the Analysis). Therefore, no person may use an amount of EBT or WBT IPQ 
greater than an amount resulting from 30 percent of the initially 
issued EBT or WBT PQS. The rationale for the IPQ use caps is described 
in the Program EIS and the final rule implementing the Program (70 FR 
10174, March 2, 2005).
    Under Sec.  680.7(a)(7), any IPQ crab that is ``custom processed'' 
at a facility an IPQ holder owns will be applied against the IPQ use 
cap of the facility owner, unless specifically exempted by Sec.  
680.42(b)(7). A custom processing arrangement exists when an IPQ holder 
has a contract with the owners of a processing facility to have his or 
her crab processed at that facility, and the IPQ holder does not have 
an ownership interest in that processing facility or is not otherwise 
affiliated with the owners of that processing facility. In custom 
processing arrangements, the IPQ holder contracts with a facility 
operator to have the IPQ crab processed according to that IPQ holder's 
specifications.
    Shortly after implementation of the Program, the Council submitted 
and NMFS approved Amendment 27 to the Crab FMP (74 FR 25449, May 28, 
2009). Amendment 27 was designed to improve operational efficiencies in 
crab fisheries with historically low total allowable catches or that 
occur in more remote regions by exempting certain IPQ crab processed 
under a custom processing arrangement from applying against the IPQ use 
cap of the owner of the facility at which IPQ crab are custom 
processed.
    Table 2-5 in Section 2.6.1 of the Analysis shows that during the 
2006/2007 crab fishing year, there were six processing facilities owned 
by five unaffiliated processors receiving EBT Class A IFQ crab and 
there were five processing facilities owned by four unaffiliated 
processors receiving WBT Class A IFQ crab. Since then, there has been 
consolidation in the BSAI crab processing sector, thus reducing the 
number of processing facilities that are unaffiliated with one another. 
This consolidation has occurred through the merger of two companies and 
the recent exit of a company from the fishery. Additionally, PQS has 
been purchased by entities that do not own or operate processing 
facilities. As Section 2.6 of the Analysis describes (see ADDRESSES), 
for the first year since the start of the Program, there were only 
three unique unaffiliated persons (processors) who received EBT and WBT 
IPQ crab at their facilities during the 2015/2016 crab fishing year. 
These three processors are the Maruha-Nichiro Corporation, which 
includes Alyeska Seafoods, Peter Pan Seafoods, and Westward Seafoods; 
Trident Seafoods; and Unisea Seafoods. Information in section 2.6 of 
the Analysis explains that these three processors also own and operate 
all of the facilities that processed EBT and WBT IPQ crab during the 
2015/2016 crab fishing year.
    The Council recognized that consolidation within the Tanner crab 
processing sector has constrained the ability of the processing sector 
to process all of the EBT and WBT Class A IFQ crab without exceeding 
the IPQ use caps. The Council recognized that without additional unique 
and unaffiliated processing facilities entering the Tanner crab 
processing sector for the 2016/2017 crab fishing year or beyond, there 
is a significant risk that the portion of the Tanner crab allocation in 
excess of the caps would not be processed. Without the ability to have 
all EBT and WBT Class A IFQ processed, that portion of the Tanner crab 
allocation in excess of the caps would likely go unharvested because 
sufficient processing facilities do not exist in the Bering Sea region.
    In June 2016, the Council recommended Amendment 47 to the FMP. This 
proposed action would add EBT and WBT IPQ crab to the list of BSAI crab 
fisheries receiving a custom processing arrangement exemption under 
Chapter 11 of the FMP in the Clarifications and Expressions of Council 
Intent section. If approved, Amendment 47 would exempt EBT and WBT IPQ 
crab that is custom processed at a facility through contractual 
arrangements with the facility owners from being applied against the 
IPQ use cap of the facility owners. This action would allow all EBT and 
WBT IPQ crab received under custom processing arrangements at the 
facilities owned by the three existing EBT and WBT processors (Maruha-
Nichiro Corporation, Trident Seafoods, or Unisea Seafoods) to not be 
counted against the IPQ use cap of the facility or the facility owners. 
The custom processing arrangement exemption would allow these 
processors to custom process crab for unaffiliated IPQ holders who have 
custom processing arrangements with the processors, thereby allowing 
harvesters to fully harvest and deliver their EBT and WBT Class A IFQ 
crab to IPQ holders with a custom processing arrangement at facilities 
operating in these fisheries.
    The anticipated effects of this proposed action include allowing 
the full processing of all EBT and WBT Class A IFQ crab and the 
associated economic and social benefits of that processing activity for 
harvesters, the existing Tanner crab processors, and the communities 
where processing facilities are located. These communities include 
Akutan, Dutch Harbor/Unalaska, King Cove, and Saint Paul. The proposed 
rule would allow all of the Tanner crab Class A IFQ to be harvested and 
processed by existing processors and thus avoid the adverse economic 
and social impacts created by the lack of adequate processing capacity 
that would otherwise result if the EBT and WBT crab fisheries could not 
be fully processed. Ten percent of the EBT and WBT Class A IFQ crab 
represents approximately $3.4 million in ex-vessel value and $ 4.95 
million in first wholesale value based on estimated ex-vessel and first 
wholesale values of EBT and WBT crab in the 2015/2016 crab fishing year 
(see Section 2.9 of the Analysis for additional detail).
    The Council and NMFS considered whether Amendment 47 could result 
in further consolidation of Tanner crab processing to fewer facilities 
than currently operating. Under Amendment 47, there would be no 
regulatory barriers for processing companies to further consolidate 
processing facilities for Tanner crab. Since EBT and WBT crab are not 
subject to regionalization or right of first refusal provisions, there 
would be no regulatory limitations preventing all of the EBT and WBT 
IPQ crab from being processed by one company at one facility. However, 
further consolidation is not anticipated as a result of this action 
because the existing processing companies also have substantial 
holdings of PQS in the EBT and WBT fisheries, and it would be more 
economical for them to process the PQS they hold to help maintain a 
consistent amount of crab available for processing at the facility 
rather than create custom processing arrangements with other companies.
    Public comments are solicited on proposed Amendment 47 to the Crab 
FMP through the end of the comment period (see DATES). NMFS intends to 
publish in the Federal Register and seek public comment on a proposed 
rule that would implement Amendment 47, following NMFS' evaluation of 
the proposed rule under the Magnuson-Stevens Act. Public comments on 
the proposed rule must be received by the end of the comment period on 
Amendment 47 to be considered in the approval/disapproval decision on 
Amendment 47. All comments received by the end of the comment period on 
Amendment 47, whether specifically directed to the amendment or the 
proposed rule will be considered in the amendment approval/disapproval 
decision. Comments received after that date will not be considered in 
the

[[Page 62853]]

approval/disapproval decision on the amendment. To be considered, 
comments must be received, not just postmarked or otherwise 
transmitted, by the last day of the comment period.

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

    Dated: September 7, 2016.
Alan D. Risenhoover,
Director, Office of Sustainable Fisheries, National Marine Fisheries 
Service.
[FR Doc. 2016-21824 Filed 9-12-16; 8:45 am]
 BILLING CODE 3510-22-P



                                               62850                Federal Register / Vol. 81, No. 177 / Tuesday, September 13, 2016 / Proposed Rules

                                               measures required by Rule 433 will                      incorporate this rule into the federally              Technology Transfer and Advancement
                                               result in a substantial reduction of PM10               enforceable SIP.                                      Act of 1995 (15 U.S.C. 272 note) because
                                               emissions in the OVPA from the Owens                                                                          application of those requirements would
                                                                                                       III. Incorporation by Reference
                                               Lake bed.3                                                                                                    be inconsistent with the Clean Air Act;
                                                 Guidance and policy documents that                       In this rule, the EPA is proposing to              and
                                               we use to evaluate enforceability,                      include in a final EPA rule regulatory                   • does not provide EPA with the
                                               revision/relaxation and rule stringency                 text that includes incorporation by                   discretionary authority to address
                                               requirements for the applicable criteria                reference. In accordance with                         disproportionate human health or
                                               pollutants include the following:                       requirements of 1 CFR 51.5, the EPA is                environmental effects with practical,
                                                 1. ‘‘State Implementation Plans;                      proposing to incorporate by reference                 appropriate, and legally permissible
                                               General Preamble for the                                the GBUAPCD rule described in Table 1                 methods under Executive Order 12898
                                               Implementation of Title I of the Clean                  of this preamble. The EPA has made,                   (59 FR 7629, February 16, 1994).
                                               Air Act Amendments of 1990,’’ 57 FR                     and will continue to make, these                         In addition, the SIP is not approved
                                               13498 (April 16, 1992); 57 FR 18070                     materials available through                           to apply on any Indian reservation land
                                               (April 28, 1992).                                       www.regulations.gov and at the EPA                    or in any other area where the EPA or
                                                 2. ‘‘Issues Relating to VOC Regulation                Region IX Office (please contact the                  an Indian tribe has demonstrated that a
                                               Cutpoints, Deficiencies, and                            person identified in the FOR FURTHER                  tribe has jurisdiction. In those areas of
                                               Deviations,’’ EPA, May 25, 1988 (the                    INFORMATION CONTACT section of this                   Indian country, the rule does not have
                                               Bluebook, revised January 11, 1990).                    preamble for more information).                       tribal implications and will not impose
                                                 3. ‘‘Guidance Document for Correcting                                                                       substantial direct costs on tribal
                                                                                                       IV. Statutory and Executive Order
                                               Common VOC & Other Rule                                                                                       governments or preempt tribal law as
                                                                                                       Reviews
                                               Deficiencies,’’ EPA Region 9, August 21,                                                                      specified by Executive Order 13175 (65
                                                                                                          Under the Clean Air Act, the                       FR 67249, November 9, 2000).
                                               2001 (the Little Bluebook).
                                                                                                       Administrator is required to approve a
                                                 4. ‘‘State Implementation Plans for                                                                         List of Subjects in 40 CFR Part 52
                                                                                                       SIP submission that complies with the
                                               Serious PM10 Nonattainment Areas, and
                                                                                                       provisions of the Act and applicable                    Environmental protection, Air
                                               Attainment Date Waivers for PM10
                                                                                                       federal regulations. 42 U.S.C. 7410(k);               pollution control, Incorporation by
                                               Nonattainment Areas Generally;
                                                                                                       40 CFR 52.02(a). Thus, in reviewing SIP               reference, Intergovernmental relations,
                                               Addendum to the General Preamble for
                                                                                                       submissions, the EPA’s role is to                     Particulate matter, Reporting and
                                               the Implementation of Title I of the
                                                                                                       approve State choices, provided that                  recordkeeping requirements.
                                               Clean Air Act Amendments of 1990,’’ 59
                                                                                                       they meet the criteria of the Clean Air                 Authority: 42 U.S.C. 7401 et seq.
                                               FR 41998 (August 16, 1994).
                                                                                                       Act. Accordingly, this proposed action
                                                 5. ‘‘PM10 Guideline Document,’’ EPA                                                                           Dated: August 24, 2016.
                                                                                                       merely proposes to approve State law as
                                               452/R–93–008, April 1993.                                                                                     Alexis Strauss,
                                                                                                       meeting federal requirements and does
                                                 6. ‘‘Fugitive Dust Background                         not impose additional requirements                    Acting Regional Administrator, Region IX.
                                               Document and Technical Information                      beyond those imposed by State law. For                [FR Doc. 2016–21872 Filed 9–12–16; 8:45 am]
                                               Document for Best Available Control                     that reason, this proposed action:                    BILLING CODE 6560–50–P
                                               Measures,’’ EPA 450/2–92–004,                              • Is not a ‘‘significant regulatory
                                               September 1992.                                         action’’ subject to review by the Office
                                               B. Does the rule meet the evaluation                    of Management and Budget under                        DEPARTMENT OF COMMERCE
                                               criteria?                                               Executive Order 12866 (58 FR 51735,
                                                                                                       October 4, 1993);                                     National Oceanic and Atmospheric
                                                 The PM10 emission controls and other                     • does not impose an information                   Administration
                                               requirements in Rule 433 are clear and                  collection burden under the provisions
                                               adequately enforceable. The                             of the Paperwork Reduction Act (44                    50 CFR Part 680
                                               requirements clearly strengthen the SIP                 U.S.C. 3501 et seq.);
                                               and are consistent with CAA sections                                                                          RIN 0648–BG15
                                                                                                          • is certified as not having a
                                               110(l) and 193. We intend to address                    significant economic impact on a
                                               BACM for this area in the near future                                                                         Fisheries of the Exclusive Economic
                                                                                                       substantial number of small entities                  Zone Off Alaska; Bering Sea and
                                               when we act on the OVPA 2016 SIP.                       under the Regulatory Flexibility Act (5
                                               Therefore, we find that Rule 433 is                                                                           Aleutian Islands Crab Rationalization
                                                                                                       U.S.C. 601 et seq.);                                  Program
                                               consistent with the relevant policy and                    • does not contain any unfunded
                                               guidance regarding enforceability and                   mandate or significantly or uniquely                  AGENCY:  National Marine Fisheries
                                               does not result in a SIP relaxation. The                affect small governments, as described                Service (NMFS), National Oceanic and
                                               TSD has more information on our                         in the Unfunded Mandates Reform Act                   Atmospheric Administration (NOAA),
                                               evaluation.                                             of 1995 (Pub. L. 104–4);                              Commerce.
                                               C. Public Comment and Proposed                             • does not have Federalism                         ACTION: Notice of availability of fishery
                                               Action                                                  implications as specified in Executive                management plan amendment; request
                                                                                                       Order 13132 (64 FR 43255, August 10,                  for comments.
                                                  As authorized in section 110(k)(3) of                1999);
                                               the Act, the EPA proposes to fully                         • is not an economically significant               SUMMARY:  The North Pacific Fishery
                                               approve the submitted rule because it                                                                         Management Council submitted
Lhorne on DSK30JT082PROD with PROPOSALS




                                                                                                       regulatory action based on health or
                                               fulfills all relevant requirements. We                  safety risks subject to Executive Order               Amendment 47 to the Fishery
                                               will accept comments from the public                    13045 (62 FR 19885, April 23, 1997);                  Management Plan for Bering Sea/
                                               on this proposal until October 13, 2016.                   • is not a significant regulatory action           Aleutian Islands King and Tanner Crabs
                                               If we take final action to approve the                  subject to Executive Order 13211 (66 FR               (Crab FMP) to NMFS for review. If
                                               submitted rule, our final action will                   28355, May 22, 2001);                                 approved, Amendment 47 would
                                                                                                          • is not subject to requirements of                exempt eastern Chionoecetes bairdi
                                                 3 OVPA   2016 SIP at p. 87 and Figure 10–1.           Section 12(d) of the National                         Tanner (EBT) and western C. bairdi


                                          VerDate Sep<11>2014   15:25 Sep 12, 2016   Jkt 238001   PO 00000   Frm 00016   Fmt 4702   Sfmt 4702   E:\FR\FM\13SEP1.SGM   13SEP1


                                                                   Federal Register / Vol. 81, No. 177 / Tuesday, September 13, 2016 / Proposed Rules                                          62851

                                               Tanner (WBT) crab that is custom                           The Environmental Impact Statement,                for a portion of the annual total
                                               processed at a facility through                         RIR, Final Regulatory Flexibility                     allowable catch, called individual
                                               contractual arrangements with the                       Analysis, and Social Impact Assessment                fishing quota (IFQ).
                                               processing facility owners from being                   prepared for the Crab Rationalization                    NMFS also issued processor quota
                                               applied against the individual                          Program are available from the NMFS                   share (PQS) under the Program. Each
                                               processing quota (IPQ) use cap of the                   Alaska Region Web site at http://                     year PQS yields an exclusive privilege
                                               processing facility owners. Amendment                   alaskafisheries.noaa.gov.                             to process a portion of the IFQ in each
                                               47 would modify the Crab FMP to allow                   FOR FURTHER INFORMATION CONTACT:
                                                                                                                                                             of the nine BSAI crab fisheries. This
                                               all of the EBT and WBT Class A                          Keeley Kent, 907–586–7228.                            annual exclusive processing privilege is
                                               individual fishing quota crab to be                                                                           called individual processor quota (IPQ).
                                                                                                       SUPPLEMENTARY INFORMATION: The
                                               processed at the facilities currently                                                                         Only a portion of the QS issued yields
                                                                                                       Magnuson-Stevens Fishery
                                               processing EBT and WBT crab and                                                                               IFQ that is required to be delivered to
                                                                                                       Conservation and Management Act                       a processor with IPQ. QS derived from
                                               would have significant, positive                        (Magnuson-Stevens Act) requires that
                                               economic effects on the fishermen,                                                                            deliveries made by catcher vessel
                                                                                                       each regional fishery management                      owners (i.e., CVO QS) is subject to
                                               processors, and communities that                        council submit any fishery management
                                               participate in the EBT and WBT                                                                                designation as either Class A IFQ or
                                                                                                       plan amendment it prepares to NMFS                    Class B IFQ. Ninety percent of the IFQ
                                               fisheries. This action is intended to                   for review and approval, disapproval, or
                                               promote the goals and objectives of the                                                                       derived from CVO QS is designated as
                                                                                                       partial approval by the Secretary of                  Class A IFQ, and the remaining 10
                                               Magnuson-Stevens Fishery                                Commerce. The Magnuson-Stevens Act
                                               Conservation and Management Act, the                                                                          percent is designated as Class B IFQ.
                                                                                                       also requires that NMFS, upon receiving               Class A IFQ must be matched and
                                               Crab FMP, and other applicable laws.                    a fishery management plan amendment,
                                               DATES: Submit comments on or before
                                                                                                                                                             delivered to a processor with IPQ. Class
                                                                                                       immediately publish a notice in the                   B IFQ is not required to be delivered to
                                               November 14, 2016.                                      Federal Register announcing that the                  a specific processor with IPQ. Each year
                                               ADDRESSES: You may submit comments                      amendment is available for public                     there is a one-to-one match of the total
                                               on this document, identified by NOAA–                   review and comment. This notice                       pounds of Class A IFQ with the total
                                               NMFS–2016–0081, by any one of the                       announces that proposed Amendment                     pounds of IPQ issued in each crab
                                               following methods.                                      47 to the Crab FMP is available for                   fishery.
                                                  • Electronic Submission: Submit all                  public review and comment.                               When the Council recommended the
                                               electronic public comments via the                         NMFS manages the king and Tanner                   Program, it expressed concern about the
                                               Federal e-Rulemaking Portal. Go to                      crab fisheries in the U.S. exclusive                  potential for excessive consolidation of
                                               www.regulations.gov/                                    economic zone of the Bering Sea and                   QS and PQS, in which too few persons
                                               #!docketDetail;D=NOAA-NMFS-2016-                        Aleutian Islands (BSAI) under the Crab                control all of the QS or PQS and the
                                               0081, click the ‘‘Comment Now!’’ icon,                  FMP. The North Pacific Fishery                        resulting annual IFQ and IPQ. The
                                               complete the required fields, and enter                 Management Council (Council)                          Council determined that excessive
                                               or attach your comments.                                prepared, and NMFS approved, the Crab                 consolidation could have adverse effects
                                                  • Mail: Submit written comments to                   FMP under the authority of the                        on crab markets, price setting
                                               Glenn Merrill, Assistant Regional                       Magnuson-Stevens Act, 16 U.S.C. 1801                  negotiations between harvesters and
                                               Administrator, Sustainable Fisheries                    et seq. Regulations governing U.S.                    processors, employment opportunities
                                               Division, Alaska Region NMFS, Attn:                     fisheries and implementing the Crab                   for harvesting and processing crew, tax
                                               Ellen Sebastian. Mail comments to P.O.                  FMP appear at 50 CFR parts 600 and                    revenue to communities in which crab
                                               Box 21668, Juneau, AK 99802–1668.                       680.                                                  are landed, and other factors considered
                                                  Instructions: Comments sent by any                      The Crab Rationalization Program                   and described in the Program EIS. To
                                               other method, to any other address or                   (Program) was implemented on March                    address these concerns, the Program
                                               individual, or received after the end of                2, 2005 (70 FR 10174). The Program                    limits the amount of QS that a person
                                               the comment period, may not be                          established a limited access privilege                can hold (i.e., own), the amount of IFQ
                                               considered by NMFS. All comments                        program for nine crab fisheries in the                that a person can use, and the amount
                                               received are a part of the public record                BSAI, including the EBT and WBT crab                  of IFQ that can be used on board a
                                               and will generally be posted for public                 fisheries, and assigned quota share (QS)              vessel. Similarly, the Program limits the
                                               viewing on www.regulations.gov                          to persons based on their historic                    amount of PQS that a person can hold,
                                               without change. All personal identifying                participation in one or more of those                 the amount of IPQ that a person can use,
                                               information (e.g., name, address),                      nine BSAI crab fisheries during a                     and the amount of IPQ that can be
                                               confidential business information, or                   specific period. Under the Program,                   processed at a given facility. These
                                               otherwise sensitive information                         NMFS issued four types of QS: Catcher                 limits are commonly referred to as use
                                               submitted voluntarily by the sender will                vessel owner (CVO) QS was assigned to                 caps.
                                               be publicly accessible. NMFS will                       holders of License Limitation Program                    In most of the nine BSAI crab
                                               accept anonymous comments (enter ‘‘N/                   (LLP) licenses who delivered their catch              fisheries under the Program, including
                                               A’’ in the required fields if you wish to               to shoreside crab processors or to                    the Tanner crab fisheries, a person is
                                               remain anonymous).                                      stationary floating crab processors;                  limited to holding no more than 30
                                                  Electronic copies of the Regulatory                  catcher/processor vessel owner QS was                 percent of the PQS initially issued in
                                               Impact Review/Initial Regulatory                        assigned to LLP license holders who                   the fishery, and to using no more than
                                               Flexibility Analysis (RIR/IRFA)                         harvested and processed their catch at                the amount of IPQ resulting from 30
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                                               (collectively referred to as the                        sea; captains and crew on board catcher/              percent of the initially issued PQS in a
                                               ‘‘Analysis’’) and the Categorical                       processor vessels were issued catcher/                given fishery, with a limited exemption
                                               Exclusion prepared for Amendment 47                     processor crew QS; and captains and                   for persons receiving more than 30
                                               may be obtained from http://                            crew on board catcher vessels were                    percent of the initially issued PQS. No
                                               www.regulations.gov or from the NMFS                    issued catcher vessel crew QS. Each                   person in the EBT or WBT crab fisheries
                                               Alaska Region Web site at http://                       year, a person who holds QS may                       received in excess of 30 percent of the
                                               alaskafisheries.noaa.gov.                               receive an exclusive harvest privilege                initially issued PQS (see Section 2.5.2 of


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                                               62852               Federal Register / Vol. 81, No. 177 / Tuesday, September 13, 2016 / Proposed Rules

                                               the Analysis). Therefore, no person may                 Trident Seafoods; and Unisea Seafoods.                communities where processing facilities
                                               use an amount of EBT or WBT IPQ                         Information in section 2.6 of the                     are located. These communities include
                                               greater than an amount resulting from                   Analysis explains that these three                    Akutan, Dutch Harbor/Unalaska, King
                                               30 percent of the initially issued EBT or               processors also own and operate all of                Cove, and Saint Paul. The proposed rule
                                               WBT PQS. The rationale for the IPQ use                  the facilities that processed EBT and                 would allow all of the Tanner crab Class
                                               caps is described in the Program EIS                    WBT IPQ crab during the 2015/2016                     A IFQ to be harvested and processed by
                                               and the final rule implementing the                     crab fishing year.                                    existing processors and thus avoid the
                                               Program (70 FR 10174, March 2, 2005).                      The Council recognized that                        adverse economic and social impacts
                                                  Under § 680.7(a)(7), any IPQ crab that               consolidation within the Tanner crab                  created by the lack of adequate
                                               is ‘‘custom processed’’ at a facility an                processing sector has constrained the                 processing capacity that would
                                               IPQ holder owns will be applied against                 ability of the processing sector to                   otherwise result if the EBT and WBT
                                               the IPQ use cap of the facility owner,                  process all of the EBT and WBT Class                  crab fisheries could not be fully
                                               unless specifically exempted by                         A IFQ crab without exceeding the IPQ                  processed. Ten percent of the EBT and
                                               § 680.42(b)(7). A custom processing                     use caps. The Council recognized that                 WBT Class A IFQ crab represents
                                               arrangement exists when an IPQ holder                   without additional unique and                         approximately $3.4 million in ex-vessel
                                               has a contract with the owners of a                     unaffiliated processing facilities                    value and $ 4.95 million in first
                                               processing facility to have his or her                  entering the Tanner crab processing                   wholesale value based on estimated ex-
                                               crab processed at that facility, and the                sector for the 2016/2017 crab fishing                 vessel and first wholesale values of EBT
                                               IPQ holder does not have an ownership                   year or beyond, there is a significant risk           and WBT crab in the 2015/2016 crab
                                               interest in that processing facility or is              that the portion of the Tanner crab                   fishing year (see Section 2.9 of the
                                               not otherwise affiliated with the owners                allocation in excess of the caps would                Analysis for additional detail).
                                               of that processing facility. In custom                  not be processed. Without the ability to                 The Council and NMFS considered
                                               processing arrangements, the IPQ holder                 have all EBT and WBT Class A IFQ                      whether Amendment 47 could result in
                                               contracts with a facility operator to have              processed, that portion of the Tanner                 further consolidation of Tanner crab
                                               the IPQ crab processed according to that                crab allocation in excess of the caps                 processing to fewer facilities than
                                               IPQ holder’s specifications.                            would likely go unharvested because                   currently operating. Under Amendment
                                                  Shortly after implementation of the                  sufficient processing facilities do not               47, there would be no regulatory
                                               Program, the Council submitted and                      exist in the Bering Sea region.                       barriers for processing companies to
                                               NMFS approved Amendment 27 to the                          In June 2016, the Council                          further consolidate processing facilities
                                               Crab FMP (74 FR 25449, May 28, 2009).                   recommended Amendment 47 to the                       for Tanner crab. Since EBT and WBT
                                               Amendment 27 was designed to                            FMP. This proposed action would add                   crab are not subject to regionalization or
                                               improve operational efficiencies in crab                EBT and WBT IPQ crab to the list of                   right of first refusal provisions, there
                                               fisheries with historically low total                   BSAI crab fisheries receiving a custom                would be no regulatory limitations
                                               allowable catches or that occur in more                 processing arrangement exemption                      preventing all of the EBT and WBT IPQ
                                               remote regions by exempting certain                     under Chapter 11 of the FMP in the                    crab from being processed by one
                                               IPQ crab processed under a custom                       Clarifications and Expressions of                     company at one facility. However,
                                               processing arrangement from applying                    Council Intent section. If approved,                  further consolidation is not anticipated
                                               against the IPQ use cap of the owner of                 Amendment 47 would exempt EBT and                     as a result of this action because the
                                               the facility at which IPQ crab are                      WBT IPQ crab that is custom processed                 existing processing companies also have
                                               custom processed.                                       at a facility through contractual                     substantial holdings of PQS in the EBT
                                                  Table 2–5 in Section 2.6.1 of the                    arrangements with the facility owners                 and WBT fisheries, and it would be
                                               Analysis shows that during the 2006/                    from being applied against the IPQ use                more economical for them to process the
                                               2007 crab fishing year, there were six                  cap of the facility owners. This action               PQS they hold to help maintain a
                                               processing facilities owned by five                     would allow all EBT and WBT IPQ crab                  consistent amount of crab available for
                                               unaffiliated processors receiving EBT                   received under custom processing                      processing at the facility rather than
                                               Class A IFQ crab and there were five                    arrangements at the facilities owned by               create custom processing arrangements
                                               processing facilities owned by four                     the three existing EBT and WBT                        with other companies.
                                               unaffiliated processors receiving WBT                   processors (Maruha-Nichiro                               Public comments are solicited on
                                               Class A IFQ crab. Since then, there has                 Corporation, Trident Seafoods, or                     proposed Amendment 47 to the Crab
                                               been consolidation in the BSAI crab                     Unisea Seafoods) to not be counted                    FMP through the end of the comment
                                               processing sector, thus reducing the                    against the IPQ use cap of the facility or            period (see DATES). NMFS intends to
                                               number of processing facilities that are                the facility owners. The custom                       publish in the Federal Register and seek
                                               unaffiliated with one another. This                     processing arrangement exemption                      public comment on a proposed rule that
                                               consolidation has occurred through the                  would allow these processors to custom                would implement Amendment 47,
                                               merger of two companies and the recent                  process crab for unaffiliated IPQ holders             following NMFS’ evaluation of the
                                               exit of a company from the fishery.                     who have custom processing                            proposed rule under the Magnuson-
                                               Additionally, PQS has been purchased                    arrangements with the processors,                     Stevens Act. Public comments on the
                                               by entities that do not own or operate                  thereby allowing harvesters to fully                  proposed rule must be received by the
                                               processing facilities. As Section 2.6 of                harvest and deliver their EBT and WBT                 end of the comment period on
                                               the Analysis describes (see ADDRESSES),                 Class A IFQ crab to IPQ holders with a                Amendment 47 to be considered in the
                                               for the first year since the start of the               custom processing arrangement at                      approval/disapproval decision on
                                               Program, there were only three unique                   facilities operating in these fisheries.              Amendment 47. All comments received
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                                               unaffiliated persons (processors) who                      The anticipated effects of this                    by the end of the comment period on
                                               received EBT and WBT IPQ crab at their                  proposed action include allowing the                  Amendment 47, whether specifically
                                               facilities during the 2015/2016 crab                    full processing of all EBT and WBT                    directed to the amendment or the
                                               fishing year. These three processors are                Class A IFQ crab and the associated                   proposed rule will be considered in the
                                               the Maruha-Nichiro Corporation, which                   economic and social benefits of that                  amendment approval/disapproval
                                               includes Alyeska Seafoods, Peter Pan                    processing activity for harvesters, the               decision. Comments received after that
                                               Seafoods, and Westward Seafoods;                        existing Tanner crab processors, and the              date will not be considered in the


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                                                                   Federal Register / Vol. 81, No. 177 / Tuesday, September 13, 2016 / Proposed Rules                                                62853

                                               approval/disapproval decision on the                    postmarked or otherwise transmitted, by                 Dated: September 7, 2016.
                                               amendment. To be considered,                            the last day of the comment period.                   Alan D. Risenhoover,
                                               comments must be received, not just                       Authority: 16 U.S.C. 1801 et seq.                   Director, Office of Sustainable Fisheries,
                                                                                                                                                             National Marine Fisheries Service.
                                                                                                                                                             [FR Doc. 2016–21824 Filed 9–12–16; 8:45 am]
                                                                                                                                                             BILLING CODE 3510–22–P
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Document Created: 2018-02-09 13:16:40
Document Modified: 2018-02-09 13:16:40
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
ActionNotice of availability of fishery management plan amendment; request for comments.
DatesSubmit comments on or before November 14, 2016.
ContactKeeley Kent, 907-586-7228.
FR Citation81 FR 62850 
RIN Number0648-BG15

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