81_FR_66174 81 FR 65988 - Atlantic Highly Migratory Species; Individual Bluefin Quota Program; Inseason Transfers

81 FR 65988 - Atlantic Highly Migratory Species; Individual Bluefin Quota Program; Inseason Transfers

DEPARTMENT OF COMMERCE
National Oceanic and Atmospheric Administration

Federal Register Volume 81, Issue 186 (September 26, 2016)

Page Range65988-65994
FR Document2016-22902

NMFS proposes to modify the Atlantic highly migratory species (HMS) regulations to provide additional flexibility regarding the distribution of inseason Atlantic bluefin tuna (BFT) quota transfers to the Longline category. The proposed rule would provide NMFS the flexibility to distribute quota inseason either to all qualified Individual Bluefin Quota (IBQ) share recipients (i.e., share recipients who have associated their permit with a vessel) or only to permitted Atlantic Tunas Longline vessels with recent fishing activity, whether or not they are associated with IBQ shares.

Federal Register, Volume 81 Issue 186 (Monday, September 26, 2016)
[Federal Register Volume 81, Number 186 (Monday, September 26, 2016)]
[Proposed Rules]
[Pages 65988-65994]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-22902]


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DEPARTMENT OF COMMERCE

National Oceanic and Atmospheric Administration

50 CFR Part 635

[Docket No. 160527473-6473-01]
RIN 0648-BG09


Atlantic Highly Migratory Species; Individual Bluefin Quota 
Program; Inseason Transfers

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

ACTION: Proposed rule; request for comments; notice of public hearing.

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SUMMARY: NMFS proposes to modify the Atlantic highly migratory species 
(HMS) regulations to provide additional flexibility regarding the 
distribution of inseason Atlantic bluefin tuna (BFT) quota transfers to 
the Longline category. The proposed rule would provide NMFS the 
flexibility to distribute quota inseason either to all qualified 
Individual Bluefin Quota (IBQ) share recipients (i.e., share recipients 
who have associated their permit with a vessel) or only to permitted 
Atlantic Tunas Longline vessels with recent fishing activity, whether 
or not they are associated with IBQ shares.

DATES: Written comments must be received on or before October 26, 2016. 
NMFS will host an operator-assisted public hearing conference call and 
webinar on October 4, 2016, from 2 to 4 p.m. EDT, providing an 
opportunity for individuals from all geographic areas to participate. 
See SUPPLEMENTARY INFORMATION for further details.

ADDRESSES: You may submit comments on this document, identified by 
``NOAA-NMFS-2016-0067,'' by either 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-2016-0067, click the 
``Comment Now!'' icon, complete the required fields, and enter or 
attach your comments.
     Mail: Submit written comments to Thomas Warren, Highly 
Migratory Species (HMS) Management Division, Office of Sustainable 
Fisheries (F/SF1), NMFS, 55 Great Republic Drive, Gloucester, MA 01930.
    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 generally will 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).
    The public hearing conference call information is phone number 
(888) 455-5378; participant passcode 5816248. 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://noaaevents3.webex.com/noaaevents3/onstage/g.php?MTID=e20e9f661ee7184823fb28b56cbf7d16f; meeting number: 
993 144 732; password: NOAA. Participants who have not used WebEx 
before will be prompted to download and run a plug-in program that will 
enable them to view the webinar.
    Supporting documents, including the Regulatory Impact Review and 
Initial Regulatory Flexibility Analysis, may be downloaded from the HMS 
Web site at www.nmfs.noaa.gov/sfa/hms/. These documents also are 
available by contacting Thomas Warren at the mailing address specified 
above.

FOR FURTHER INFORMATION CONTACT: Thomas Warren or Sarah McLaughlin, 
978-281-9260; Carrie Soltanoff, 301-427-8503.

SUPPLEMENTARY INFORMATION: Regulations implemented under the authority 
of the Atlantic Tunas Convention Act (ATCA; 16 U.S.C. 971 et seq.) and 
the Magnuson-Stevens Fishery Conservation and Management Act (Magnuson-
Stevens Act; 16 U.S.C. 1801 et seq.) governing the harvest of BFT by 
persons and vessels subject to U.S. jurisdiction are found at 50 CFR 
part 635. Section 635.27 subdivides the U.S. BFT quota recommended by 
the International Commission for the Conservation of Atlantic Tunas 
(ICCAT) among the various domestic fishing categories, per the 
allocations established in the 2006 Consolidated Atlantic Highly 
Migratory Species Fishery Management Plan (2006 Consolidated HMS FMP) 
(71 FR 58058, October 2, 2006), as amended by Amendment 7 to the 2006 
Consolidated HMS FMP (Amendment 7) (79 FR 71510, December 2, 2014), and 
in accordance with implementing regulations. The current baseline U.S. 
BFT quota and subquotas were established and analyzed in the BFT quota 
final rule (80 FR 52198, August 28, 2015). NMFS is required under ATCA 
and the Magnuson-Stevens Act to provide U.S. fishing vessels with a 
reasonable opportunity to harvest the ICCAT-recommended quota.

Background

    BFT fishing is managed domestically through a quota system (on a 
calendar-year basis), in conjunction with other management measures 
including gear restrictions, minimum fish sizes, closed areas, trip 
limits, and catch shares. NMFS implements the ICCAT U.S. quota 
recommendation, and divides the quota among U.S. fishing categories 
(i.e., the General, Angling, Harpoon, Purse Seine, Longline, and Trap 
categories) and the Reserve category. Quotas are distributed on an 
annual basis, but NMFS also has the regulatory authority to make 
inseason adjustments to BFT quotas after the initial annual 
allocations, if the U.S. baseline quota increases as a result of an 
ICCAT recommendation or as a result of a transfer of quota from the 
Reserve category in accordance with specific regulatory determination 
criteria.
    Vessels fishing with pelagic longline gear, which catch BFT 
incidentally while fishing for target species (primarily swordfish and 
yellowfin tuna), hold limited access Atlantic Tunas Longline permits 
and utilize Longline category quota. Through Amendment 7, NMFS 
established the IBQ Program, a catch share program that identified 136 
permit holders as IBQ share recipients based on specified criteria, 
including historical target species landings and the bluefin catch-

[[Page 65989]]

to-target species ratios from 2006 through 2012. Consistent with 50 CFR 
635.15(b)(2), recipients received one of three shareholder percentages 
(low, medium, or high) based on their score related to these criteria.
    The specific objectives of the IBQ Program were to:

    1. Limit the amount of BFT landings and dead discards in the 
pelagic longline fishery;
    2. Provide strong incentives for the vessel owner and operator 
to avoid BFT interactions, and thus reduce bluefin dead discards;
    3. Provide flexibility in the quota system to enable pelagic 
longline vessels to obtain BFT quota from other vessels with 
available individual quota in order to enable full accounting for 
BFT landings and dead discards, and minimize constraints on fishing 
for target species;
    4. Balance the objective of limiting bluefin landings and dead 
discards with the objective of optimizing fishing opportunities and 
maintaining profitability; and
    5. Balance the above objectives with potential impacts on the 
directed permit categories that target BFT, and the broader 
objectives of the 2006 Consolidated HMS FMP and the Magnuson-Stevens 
Fishery Conservation and Management Act (Magnuson-Stevens Act).

    IBQ share recipients receive an annual allocation of the Longline 
category quota based on the percentage share they received through 
Amendment 7 but only if their permit is associated with a vessel in the 
subject year (i.e., only ``qualified IBQ share recipients'' receive 
annual allocations). Permit holders that were not selected to receive 
IBQ shares through Amendment 7 may still fish, but they are required to 
lease quota. Leasing occurs through the IBQ electronic system. Every 
vessel must have a minimum amount of quota allocation to fish 
(described below), whether obtained through their shares or by leasing, 
and every vessel must individually account for its BFT landings and 
dead discards through the IBQ electronic system.
    Delayed effective dates for some of the regulations implemented 
through Amendment 7 assisted in the transition to measures adopted in 
Amendment 7, which substantially increased individual vessel 
accountability for BFT bycatch (landings and dead discards) in the 
Longline fishery. During 2015, the first year of implementation of the 
IBQ Program, a pelagic longline vessel that had insufficient IBQ to 
account for its landings and dead discards (i.e., went into ``quota 
debt'') was allowed to continue to fish, however any additional 
landings and dead discards continued to accrue, and the cumulative 
quota debt needed to be accounted for no later than December 31, 2015. 
In contrast, as of January 1, 2016, a vessel fishing with pelagic 
longline gear must have a minimum IBQ allocation to fish and may not 
fish if it has quota debt. A minimum allocation required to fish is 
0.25 mt (551 lb) whole weight (ww) for a trip in the Gulf of Mexico and 
0.125 mt ww (276 lb ww) for a trip in the Atlantic. Pelagic longline 
vessels may lease IBQ allocation from other such vessels or from Purse 
Seine fishery participants in the IBQ Program to obtain sufficient 
allocation for their trips or to account for quota debt.
    In July 2015 and January 2016, NMFS transferred quota inseason from 
the Reserve category to the Longline category (80 FR 45098, July 29, 
2015; 81 FR 19, January 4, 2016). In transferring quota inseason, NMFS 
considered the relevant regulatory determination criteria for inseason 
or annual adjustments under 50 CFR 635.27(a)(8) as required, and 
decided that allocation to the Longline category was warranted to 
increase the amount of quota available to the qualified IBQ share 
recipients and therefore help those permit holders account for BFT 
landings and dead discards, foster conditions in which permit holders 
became more willing to lease IBQ, allow continued fishing for available 
target species quota, and reduce uncertainty in the fishery as a whole. 
In these inseason actions, NMFS distributed the transferred quota in 
equal amounts to the 136 qualified IBQ share recipients, which included 
those with vessels actively fishing and those not actively fishing. 
NMFS distributed the quota transferred inseason equally in order to 
provide each qualified IBQ share recipient the minimum amount of IBQ 
allocation needed to fish. Given the small amount of quota being 
transferred to the category, distribution according to share holder 
percentages would have resulted in transfers below the minimum 
allocation needed to fish and would have made the transfer ineffective 
in easing the transition to the Amendment 7 measures as intended. 
During 2015, based on logbook data, 104 vessels fished with pelagic 
longline gear, 100 of which were vessels associated with IBQ shares and 
4 of which were not. A total of 59 vessels landed BFT, and 2 vessels 
accounted for dead discards but did not land BFT.
    Also during 2015, NMFS implemented a quota increase for the 
Longline category that resulted from an increase in the quota at ICCAT 
and the subsequent modification of the baseline annual U.S. BFT quota 
and subquotas (80 FR 52198, August 28, 2015). In adjusting the baseline 
annual quota upwards, NMFS also adjusted the annual quota distributions 
to the 136 qualified IBQ share recipients, based upon their shareholder 
percentages.
    During 2015, 36 of the 136 qualified IBQ share recipients had no 
pelagic longline fishing activity (i.e., they took no fishing trips 
with pelagic longline gear). Furthermore, 31 of the 36 qualified IBQ 
share recipients that did not fish also did not lease IBQ to others 
(i.e., 31 neither fished nor leased and 5 did not fish, but leased out 
their IBQ allocations). As a result, their IBQ allocations went unused 
for the year and expired at year's end.
    Since January 1, 2015, NMFS has received requests (among other 
suggestions about the IBQ Program and management of the pelagic 
longline fishery) to distribute quota inseason only to those vessels 
that are currently fishing (whether associated with IBQ shares or not) 
to optimize fishing opportunity and account for dead discards, rather 
than distributing it equally to all IBQ share recipients, some of whom 
end up neither using it nor making it available to other vessel owners. 
In advance of and at the March 2016 HMS Advisory Panel meeting, pelagic 
longline fishery participants expressed concerns about the availability 
of IBQ allocation as implemented under Amendment 7. Longline fishery 
participants have stated that, while they were able to obtain 
sufficient IBQ allocation by leasing it under the conditions that 
applied in 2015, those conditions were temporary. They are concerned 
that, as additional requirements now apply beginning in 2016, the IBQ 
Program could negatively impact vessel operations and finances given 
the pricing of IBQ, the distribution of quota among permit holders as 
implemented by Amendment 7, and the behavior of some permit holders 
who, for example, they say hold on to IBQ for the entire season without 
participating in the fishery or engaging in leasing. They also say that 
the expense of leasing IBQ allocation when needed can impact other 
operational costs such as crew pay. If availability is limited, or 
costs are prohibitive, the operational impacts increase. IBQ Program 
data analyzed in this action include the leases that were completed in 
2015, and generally reflect that, for leasing transactions that 
occurred, sales revenue received per pound approximated the cost per 
pound of leasing IBQ. However, IBQ Program participants (which include 
any permit holder or vessel that leases quota to facilitate pelagic 
longline operations) and potential lessees have communicated that there 
were instances where the cost at which lessors were

[[Page 65990]]

willing to lease their IBQ was prohibitive and leasing did not occur. 
Furthermore, expanded opportunities to fish with pelagic longline gear 
within the available swordfish and yellowfin tuna quotas are contingent 
on access to additional quota to account for BFT bycatch and discards. 
Longline fishery participants requested that NMFS take further steps to 
provide more access to quota for those vessels with recent fishing 
activity to reduce the dependence on qualified IBQ share recipients, 
some of whom are not participating in the fishery or engaging in 
leasing.
    After looking at the issues raised by the fishery participants and 
at trends in IBQ leasing and utilization for 2015, it is apparent that 
additional flexibility is needed regarding the distribution of inseason 
transfers of BFT quota within the Longline category to assist NMFS in 
providing reasonable opportunities to fish for target species under the 
limits imposed by the IBQ Program and to optimize distribution of BFT 
quota transferred inseason to the Longline category, while at the same 
time encouraging the appropriate functioning of the IBQ Program, 
including its leasing provisions. As discussed above, 36 of 136 (i.e., 
26 percent) qualified IBQ share recipients that also received 
additional quota from inseason transfers did not fish in 2015, and 31 
neither fished nor leased. Thus, under current conditions, the BFT 
quota from inseason transfers is not being distributed optimally and 
much of the Longline category BFT quota is going unused (136 mt in 
2015). In addition, as discussed above, there were instances where 
permitted Atlantic Tunas Longline vessels sought to lease IBQ, but 
leasing did not occur due to cost prohibitive prices set by lessors. 
This underutilization of IBQ is not consistent with the third and 
fourth objectives of the IBQ Program, because it places unnecessary 
constraints on opportunities for longline fishery participants to fish 
for target species.
    This proposed rule would modify the regulations to specify that 
distribution of quota transferred to the Longline category inseason 
(i.e., beyond the baseline Longline category quota that is distributed 
to qualified IBQ share recipients) may be either to the qualified IBQ 
share recipients or to permitted Atlantic Tunas Longline vessels with 
recent fishing activity whether they are associated with qualified IBQ 
share recipients or not. NMFS would determine recent fishing activity 
through logbook, vessel monitoring system (VMS), or electronic 
monitoring data indicating fishing activity in the subject and previous 
year. For example, for inseason transfers in 2016, NMFS would examine 
fishing activity data for 2015 and 2016 to determine if there was 
fishing activity during that period. Providing flexibility in the quota 
system and maintaining flexibility of the regulations to account for 
the highly variable nature of the BFT fishery was an objective of 
Amendment 7 (See, e.g., Amendment text at 79 FR 71510 and 71559).
    In deciding whether to transfer additional quota to the Longline 
category inseason from the Reserve category, NMFS would continue to 
consider the 14 regulatory determination criteria for inseason or 
annual adjustments at 50 CFR 635.27(a)(8), including the need to 
``optimize fishing opportunity.''
    Next, NMFS would decide whether to distribute that quota 
transferred inseason to all qualified IBQ share recipients or only to 
permitted Atlantic Tunas Longline vessels with recent fishing activity 
whether or not they are associated with IBQ shares. This decision would 
be based on factors for the subject year and previous year, including 
the number of BFT landings and dead discards, the number of IBQ lease 
transactions, the average amount of IBQ leased, the average amount of 
quota debt, the annual amount of IBQ allocation, any previous inseason 
allocations of IBQ, the amount of BFT quota in the Reserve category, 
the percentage of BFT quota harvested by the other quota categories, 
the remaining number of days in the year, the number of active vessels 
fishing not associated with IBQ share, and the number of vessels that 
have incurred quota debt or that have low levels of IBQ allocation. In 
deciding which approach will be used, NMFS will consider which approach 
will best meet the specific objectives of the IBQ Program as stated in 
Amendment 7, including the objective of providing ``flexibility in the 
quota system to enable pelagic longline vessels to obtain BFT quota 
from other vessels with available individual quota in order to enable 
full accounting for BFT landings and dead discards, and minimize 
constraints on fishing for target species.'' For example, in years 
where leasing by IBQ share recipients is not occurring as anticipated 
by Amendment 7 distribution to only active vessels, might be the 
appropriate approach to encourage leasing at levels that ensure 
appropriate functioning of the IBQ system in future years. In years 
where the leasing program is functioning well and leasing is occurring 
as needed, distribution may be to all of the qualified IBQ share 
recipients.
    If NMFS decides to distribute the inseason quota to all qualified 
IBQ share recipients, those qualified IBQ share recipients would 
receive equal amounts of the quota transferred.
    If NMFS decides to distribute inseason quota only to those vessels 
with recent fishing activity, vessels with ``recent fishing activity'' 
would be vessels determined by NMFS to have recent fishing activity in 
the pelagic longline fishery during the subject and previous year based 
upon available information such as logbook, VMS, or electronic 
monitoring data. The specific data and date range analyzed in a given 
inseason action would be those available at the time of year the 
inseason transfer occurs, and will depend on which complete data are 
available at that time. For example, logbook data for a particular year 
are typically not available for use until several months into the 
following year due to the process of data entry and quality control, as 
well as late reporting. Therefore, early in a year, NMFS may determine 
vessel activity for the previous and subject year using VMS data, 
whereas later in the year, it might use both logbook and VMS data.
    Whether NMFS decides to distribute quota to all qualified IBQ 
recipients or to only those permitted vessels with recent fishing 
activity, quota transferred inseason would be distributed equally to 
the vessel account associated with the relevant vessel via the 
electronic IBQ system. In either case, when a qualified IBQ share 
recipient receives inseason quota, the quota will be designated as 
either Gulf of Mexico (GOM) IBQ, Atlantic (ATL) IBQ, or both GOM and 
ATL IBQ, according to the share recipient's regional designations. For 
vessels with recent fishing activity that are not qualified IBQ share 
recipients, NMFS would assign the distributed quota a regional 
designation based on where the majority of their ``recent fishing 
activity'' occurred for the relevant period analyzed.
    The economic impacts of the proposed measures would differ only 
slightly from the impacts analyzed by Amendment 7. For example, if NMFS 
had opted in early 2016 to exercise the flexibility to distribute quota 
inseason to only those vessels with recent fishing activity, the number 
of vessels that would have received inseason quota would have been 
reduced from 136 to approximately 104, based on logbook data indicating 
the number of vessels with recent fishing activity in 2015, and each 
vessel would have received more quota. This increased allocation would 
help these active vessels to remain fishing longer under fewer quota

[[Page 65991]]

constraints and would reduce the transaction costs associated with 
finding additional quota through the leasing program in years where 
leased quota is not readily available. The general goal would be to 
mitigate the type of situation that occurred in 2015, where over 25 
percent of qualified IBQ share recipients were not actively fishing 
and, of them, 86 percent were not leasing IBQ allocation to other 
vessels through the IBQ Program. Distributing even more quota to 
vessels that are not fishing and not leasing the unused quota to other 
fishery participants mid-season does not minimize constraints on 
fishing for target species, nor does it help to meet objectives of the 
IBQ program, specifically to optimize fishing opportunities for those 
target species and to maintain profitability of the pelagic longline 
fleet.
    The inactive vessels (e.g., 36 qualified IBQ share recipients in 
2015) would not receive inseason quota under the above scenario. 
Inactive vessels would not be fishing at the time, and thus would not 
have an immediate need for the quota to support their directed fishing 
operations. If they chose to fish later in the season, they would still 
have quota available for their use from their initial IBQ allocation 
for the year. Thus, the cost to inactive vessels of the proposed 
inseason distribution alternative would mainly be limited to the 
forgone ability to lease out their allocation. This cost is analyzed in 
the Initial Regulatory Flexibility Analysis. Under Amendment 7, the 
purpose of quota leasing was to facilitate directed fishing for 
Atlantic swordfish, other tunas, and other pelagic species, and to 
provide strong incentives for the vessel owners and operators to avoid 
BFT interactions, while also providing a mechanism for vessels to 
obtain more quota, if needed, given the required minimum allocation to 
fish. If IBQ share recipients do not plan to fish, the possibility of 
inseason quota transfers being distributed to active fishery 
participants might encourage them to lease their allocations to those 
participants earlier in the season. This in turn would facilitate a 
more effective IBQ leasing program and minimize any loss of potential 
IBQ leasing revenue.
    In addition, providing quota inseason to permitted vessels with 
recent fishing activity would include some vessels with permits that 
did not qualify for IBQ share in Amendment 7. Such vessels may include 
new entrants to the fishery that have participated in the IBQ Program 
by leasing IBQ in order to fish initially. Notwithstanding the defined 
scope of qualified IBQ share recipients (136), the pelagic longline 
fishery participants change over time and include vessels with Atlantic 
Tunas Longline permits that did not qualify for IBQ shares and entry-
level participants. Therefore the proposed regulation would assist new 
entry to the fishery when there is an inseason transfer of quota to the 
Longline category, or would help facilitate leasing by inactive vessels 
earlier in the season to facilitate such entry.

Request for Comments

    NMFS solicits comments on this proposed rule through October 26, 
2016. See instructions in ADDRESSES section.

Public Hearing Conference Call

    NMFS will hold a public hearing conference call and webinar on 
October 4, 2016, from 2 p.m. to 4 p.m. EDT, to allow for an additional 
opportunity for interested members of the public from all geographic 
areas to submit verbal comments on the proposed quota rule.
    The public is reminded that NMFS expects participants at public 
hearings and on conference calls to conduct themselves appropriately. 
At the beginning of the conference call, a representative of NMFS will 
explain the ground rules (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; and attendees should not interrupt 
one another). The NMFS representative will attempt to 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 matter. If attendees do not respect the ground rules, they 
will be asked to leave the conference call.

Classification

    The NMFS Assistant Administrator has determined that the proposed 
rule is consistent with the 2006 Consolidated HMS FMP and its 
amendments, the Magnuson-Stevens Act, ATCA, 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.
    This action has been preliminarily determined to be categorically 
excluded from the requirement to prepare an environmental assessment 
(EA) in accordance with the National Environmental Policy Act and NOAA 
administrative order NAO 216-6 (as preserved by NAO 216-6A), subject to 
further consideration after public comment. The proposed action may by 
categorically excluded since it is a change to a previously analyzed 
and approved fishery management plan, and the proposed change will have 
no substantive effect, individually or cumulatively on the human 
environment beyond that already analyzed in the Environmental Impact 
Statement for Amendment 7 to the 2006 Consolidated Atlantic Highly 
Migratory Species Fishery Management Plan (79 FR 71510, December 2, 
2014) and in the EA for the final rule that increased the U.S. BFT 
quota (for 2015 and until changed) based on the recommendation of the 
International Commission for the Conservation of Atlantic Tunas (80 FR 
52198, August 28, 2015). Inseason quota allocations to the pelagic 
longline category do not modify the annual U.S. BFT quota nor the 
fishing mortality associated with that quota. Minor modifications of 
allocations to vessels contribute to determining when and where fishing 
mortality occurs, but do not alter the overall allowable mortality 
under the U.S. BFT quota. This action would not directly affect fishing 
effort, quotas, fishing gear, authorized species, interactions with 
threatened or endangered species, or other relevant parameters. Thus, 
there is no environmental or ecological effect different than what was 
analyzed previously. A final determination will be made prior to 
publication of the final rule for this action.
    NMFS has prepared a Regulatory Impact Review (RIR), and an Initial 
Regulatory Flexibility Analysis (IRFA), which present and analyze 
anticipated social, and economic impacts of the alternatives contained 
in this proposed rule. The list of alternatives and their analyses are 
provided in the draft RIR and are not repeated here in their entirety. 
A copy of the draft RIR prepared for this proposed rule is available 
from NMFS (see ADDRESSES).
    An IRFA was prepared, as required by section 603 of the Regulatory 
Flexibility Act (RFA, 5 U.S.C. 603 et seq.), and is included below. The 
IRFA describes the economic impact this proposed rule, if adopted, 
would have on small entities. A description of the action, why it is 
being considered, and the legal basis for this action are contained in 
the SUMMARY section of the preamble.
    The goal of the RFA is to minimize the economic burden of federal 
regulations on small entities. To that end, the RFA directs federal 
agencies to assess whether the proposed regulation is likely to result 
in significant economic impacts to a substantial number of small 
entities, and identify and analyze any significant alternatives to the 
proposed rule that accomplish the

[[Page 65992]]

objectives of applicable statutes and minimizes any significant effects 
on small entities.

Description of the Reasons Why Action is Being Considered

    Section 603(b)(1) of the RFA requires an IRFA to contain a 
description of the reasons why the action is being considered. The 
purpose of this proposed rule is, consistent with the 2006 Consolidated 
HMS FMP objectives, the Magnuson-Stevens Act, and other applicable law, 
to provide NMFS the flexibility to distribute quota inseason to all 
qualified IBQ share recipients (those who have associated their share 
with a vessel) or to permitted Atlantic Tunas Longline vessels with 
recent fishing activity whether or not they are associated with IBQ 
shares.
    Since January 1, 2015, NMFS has received requests (among other 
suggestions about the IBQ Program and management of the pelagic 
longline fishery) to distribute quota inseason to those vessels that 
are currently fishing (whether associated with IBQ shares or not) to 
optimize fishing opportunity and account for dead discards, rather than 
distributing it equally to all IBQ share recipients, some of whom end 
up neither using it, nor making it available to other vessel owners. In 
advance of and at the March 2016 HMS Advisory Panel meeting, pelagic 
longline fishery participants expressed concerns about the availability 
of IBQ allocation as implemented under Amendment 7. Longline fishery 
participants have stated that, while they were able to obtain 
sufficient IBQ allocation by leasing it under the conditions that 
applied in 2015, those conditions were temporary. They are concerned 
that, as additional requirements now apply beginning in 2016, the IBQ 
Program could negatively impact vessel operations and finances given 
the pricing of IBQ, the distribution of quota among permit holders as 
implemented by Amendment 7, and the behavior of some permit holders 
who, for example, they say hold on to IBQ for the entire season without 
participating in the fishery or engaging in leasing. Longline fishery 
participants requested that NMFS take further steps to provide more 
access to quota for those vessels with recent fishing activity to 
reduce the dependence on qualified IBQ share recipients, some of whom 
are not participating in the fishery or engaging in leasing.
    After looking at the issues raised by the fishery participants and 
at trends in IBQ leasing and utilization for 2015, it is apparent that 
additional flexibility is needed regarding the distribution of inseason 
transfers of BFT quota within the Longline category to assist NMFS in 
providing reasonable opportunities to fish for target species under the 
limits imposed by the IBQ Program and to optimize distribution of BFT 
quota transferred inseason to the Longline category. To account for the 
highly variable nature of the BFT fishery and maintain flexibility in 
the regulations, NMFS is considering this action, which provides 
flexibility in the quota system.

Statement of the Objectives of, and Legal Basis for, the Proposed Rule

    Section 603(b)(2) of the RFA requires the IRFA to contain a 
statement of the objectives and legal basis for the proposed rule. The 
objective of this proposed rule is to provide additional flexibility 
regarding the distribution of inseason BFT quota transfers to the 
Longline category in order to facilitate the management of Atlantic HMS 
resources in a manner that maximizes resource sustainability and 
fishing opportunity, while minimizing, to the greatest extent possible, 
the socioeconomic impacts on affected fisheries.
    The legal basis for this proposed rule stems from the dual 
authority of the Magnuson-Stevens Act and ATCA. Under the Magnuson-
Stevens Act, NMFS must, consistent with ten National Standards, manage 
fisheries to maintain optimum yield (OY) by rebuilding overfished 
fisheries and preventing overfishing. Under ATCA, NMFS is authorized to 
promulgate regulations as may be necessary and appropriate to carry out 
binding recommendations of ICCAT. Additionally, any management measures 
must be consistent with other domestic laws including the National 
Environmental Policy Act (NEPA), the Endangered Species Act (ESA), the 
Marine Mammal Protection Act (MMPA), and the Coastal Zone Management 
Act (CZMA).

Description and Estimate of the Number of Small Entities to Which the 
Proposed Rule Would Apply

    Section 603(b)(3) of the RFA 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. SBA's regulations provide that an agency may develop its 
own industry-specific size standards after consultation with 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. To 
utilize this provision, NMFS must publish such size standards in the 
Federal Register. In a final rule effective on July 1, 2016 (80 FR 
81194, December 29, 2015), NMFS established a small business size 
standard of $11 million in annual gross receipts for all businesses in 
the commercial fishing industry (NAICS 11411) for RFA compliance 
purposes. NMFS considers all HMS Atlantic Tunas Longline permit holders 
(280 as of October 2015) to be small entities because these vessels 
have reported annual gross receipts of less than $11 million for 
commercial fishing. The average annual gross revenue per pelagic 
longline vessel was estimated to be $187,000 based on the 170 vessels 
that fished between 2006 and 2012, and that produced an estimated $31.8 
million in total revenue annually. The maximum annual revenue for any 
pelagic longline vessel between 2006 and 2015 was $1.9 million, well 
below the NMFS small business size threshold of $11 million in gross 
receipts for commercial fishing.
    NMFS has determined that this proposed rule would apply to the 
small businesses associated with the 136 Atlantic Tunas Longline 
permits with IBQ shares and the additional permitted Atlantic Tunas 
Longline vessels that fish with quota leased through the IBQ Program. 
The impacts on these small businesses are described below in the 
discussion of alternatives considered. NMFS has determined that this 
action would not likely directly affect any small organizations or 
small government jurisdictions defined under the RFA.

Description of the Projected Reporting, Record-Keeping, and Other 
Compliance Requirements of the Proposed Rule, Including an Estimate of 
the Classes of Small Entities Which Would Be Subject to the 
Requirements of the Report or Record

    Section 603(b)(4) of the RFA requires agencies to describe any new 
reporting, record-keeping and other compliance requirements. This 
proposed rule does not contain any new collection of information, 
reporting, or record-keeping requirements.

Identification of All Relevant Federal Rules Which May Duplicate, 
Overlap, or Conflict With the Proposed Rule

    Under section 603(b)(5) of the RFA, agencies must identify, to the 
extent practicable, relevant Federal rules

[[Page 65993]]

which duplicate, overlap, or conflict with the proposed action. 
Fishermen, dealers, and managers in these fisheries must comply with a 
number of international agreements, domestic laws, and other FMPs. 
These include, but are not limited to, the Magnuson-Stevens Act, ATCA, 
High Seas Fishing Compliance Act, MMPA, ESA, NEPA, Paperwork Reduction 
Act, and CZMA. This proposed action has been determined not to 
duplicate, overlap, or conflict with any of these statutes or Federal 
rules.

Description of Any Significant Alternatives to the Proposed Rule That 
Accomplish the Stated Objectives of the Applicable Statutes and That 
Minimize Any Significant Economic Impact of the Proposed Rule on Small 
Entities

    One of the requirements of an IRFA is to describe any alternatives 
to the proposed rule which accomplish the stated objectives and which 
minimize any significant economic impacts. These impacts are discussed 
below. Additionally, the RFA (5 U.S.C. 603(c)(1)-(4)) lists four 
general categories that would assist an agency in the development of 
significant alternatives. These categories of alternatives are: (1) 
Establishment of differing compliance or reporting requirements or 
timetables that take into account the resources available to small 
entities; (2) clarification, consolidation, or simplification of 
compliance and reporting requirements under the rule for such small 
entities; (3) use of performance rather than design standards; and (4) 
exemptions from coverage of the rule, or any part thereof, for small 
entities.
    In order to meet the objectives of this proposed rule, consistent 
with the Magnuson-Stevens Act and ATCA, NMFS cannot establish differing 
compliance requirements for small entities or exempt small entities 
from compliance requirements. Thus, there are no alternatives discussed 
that fall under the first and fourth categories described above. As the 
IBQ Program was designed to adhere to performance standards, 
modifications to the regulations implementing the IBQ Program simply 
make adjustments to the administration of those underlying performance 
standards. NMFS analyzed several different alternatives to this action. 
Following are the rationales that NMFS used to determine the preferred 
alternative for achieving the desired objectives.
    The first alternative is the ``no action'' (status quo) 
alternative. The second alternative, the preferred alternative, would 
provide NMFS the flexibility to allocate quota inseason to qualified 
IBQ share recipients (those who have associated their share with a 
vessel) or to permitted Atlantic Tunas Longline vessels with recent 
fishing activity, whether or not they are associated with IBQ shares. 
The third alternative would provide NMFS the flexibility to allocate 
quota inseason to qualified IBQ share recipients with recent fishing 
activity or IBQ leasing activity. The economic impacts of these three 
alternatives are detailed below.
    Under all three alternatives, NMFS would continue to consider the 
regulatory determination criteria for inseason or annual adjustments 
under 50 CFR 635.27(a)(8), and if NMFS decided that inseason allocation 
to the Longline category was warranted to increase the amount of quota 
available to pelagic longline vessels, NMFS would allocate additional 
quota. The difference among the alternatives is in the specific 
Atlantic Tunas Longline permit holders that would receive distribution 
of inseason BFT quota.
    Under the ``no action'' alternative, NMFS would distribute the 
transferred quota in equal amounts to all 136 qualified IBQ share 
recipients, which include vessels actively fishing and vessels not 
actively fishing. This is the manner in which NMFS conducted two past 
inseason transfers from the Reserve to the Longline category in July 
2015 and January 2016 (80 FR 45098, July 29, 2015; 81 FR 19, January 4, 
2016). For each of these 34 mt quota transfers, 0.25 mt (551 lb) of IBQ 
were distributed equally to each of the 136 qualified IBQ share 
recipients under Amendment 7. IBQ allocation was distributed via the 
electronic IBQ system to the vessel accounts with permits with IBQ 
shares associated with a vessel. For those permits with IBQ shares that 
were not associated with a vessel at the time of the quota transfer, 
the IBQ is not usable by the permit holder (i.e., may not be leased or 
used to account for BFT) until the permit is associated with a vessel. 
Based on the average 2015 IBQ lease price of $3.34 per pound, the 
economic value of such an inseason transfer of 551 lb per vessel would 
be approximately $1,840 per vessel owner under the ``no action'' 
alternative.
    Under the preferred alternative, NMFS would have the flexibility to 
allocate quota inseason either to each of the 136 qualified IBQ share 
recipients or to all permitted Atlantic Tunas Longline vessels with 
recent fishing activity. In 2015, there were 104 active pelagic 
longline vessels (based on logbook data). If NMFS assumes, for example, 
a future inseason transfer of 34 mt distributed equally among vessels 
with recent fishing activity, each of those 104 active vessels would 
receive 0.327 mt (721 lb) under the preferred alternative. Based on the 
average 2015 IBQ lease price of $3.34 per pound, the economic value of 
such an inseason transfer of 721 lb per vessel would be approximately 
$2,408 per vessel owner under the preferred alternative. Active vessel 
owners would receive $568 more in value (31 percent more quota) than 
under the ``no action'' (status quo) alternative.
    This increased allocation would help these active vessels to remain 
fishing longer under fewer quota constraints and reduce the transaction 
costs associated with finding the same amount of additional quota. The 
qualified IBQ share recipients with no fishing activity (36 in 2015) 
would not receive the 551 lb of IBQ worth approximately $1,840 per 
vessel that they could have received under the status quo alternative 
if they were to lease their quota to other permit holders. Thus, the 
cost of this alternative would mainly be limited to the forgone ability 
to lease out allocation that they otherwise would have received. Under 
Amendment 7, the purpose of leasing is to accommodate various levels of 
unintended catch of bluefin and to facilitate directed fishing for 
Atlantic swordfish, other tunas, and other pelagic species. The few 
Atlantic Tunas Longline vessels that fished that were not associated 
with IBQ shares but that leased allocation from qualified IBQ share 
recipients (4 in 2015) would receive quota under the preferred 
alternative worth approximately $2,408 per vessel. Such an inseason 
transfer would help facilitate participation by new entrants to the 
fishery by lowering their costs to obtain quota.
    Under the third alternative, NMFS would have the flexibility to 
distribute quota inseason to qualified IBQ share recipients with recent 
fishing activity or qualified IBQ share recipients that leased out 
quota to other Atlantic Tunas Longline permit holders. This differs 
from the preferred alternative in two key ways. First, under the third 
alternative, only Atlantic Tunas Longline permit holders with recent 
activity would receive an inseason transfer, while under the preferred 
alternative all permitted Atlantic Tunas Longline vessels with recent 
activity would receive an inseason transfer. Secondly, under the third 
alternative, relevant activity would include IBQ leasing activity in 
addition to the recent fishing activity required under the preferred 
alternative. In 2015, of the 104 pelagic longline vessels with recent 
fishing activity, 100 vessels were associated with IBQ shares that had 
recent fishing

[[Page 65994]]

activity (four vessels were not associated with IBQ shares in 2015) and 
5 vessels were associated with IBQ shares that did not fish but did 
lease their allocation to other vessels. If NMFS assumes a future 
inseason transfer of 34 mt, each of those 105 vessels associated with 
IBQ shares (100 with recent fishing activity and 5 that leased IBQ 
allocation) would receive 0.324 mt (714 lb) under the third 
alternative. Based on the average 2015 IBQ lease price of $3.34 per 
pound, the economic value of such an inseason transfers of 714 lb per 
vessel would be approximately $2,385 per vessel owner. Vessels 
associated with IBQ shares with recent fishing activity or IBQ leasing 
activity would receive $545 more in value (30 percent more quota) than 
under the ``no action'' (status quo) alternative. This is $23 less per 
vessel than under the preferred alternative. In addition, under the 
third alternative, fewer vessels with recent fishing activity would 
receive quota and new entrants would not receive quota. For these 
reasons, NMFS does not prefer the third alternative.

List of Subjects in 50 CFR Part 635

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

    Dated: September 15, 2016.
Samuel D. Rauch III,
Deputy Assistant Administrator for Regulatory Programs, National Marine 
Fisheries Service.
    For the reasons set out in the preamble, 50 CFR part 635 is 
proposed to be amended 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.  635.15, revise paragraph (b) introductory text, and add 
paragraph (b)(9) to read as follows:


Sec.  635.15  Individual bluefin tuna quotas.

* * * * *
    (b) IBQ allocation and usage. An initial IBQ quota allocation is 
the amount of bluefin tuna (whole weight) in metric tons (mt) that a 
qualified IBQ share recipient (i.e., a share recipient who has 
associated their permit with a vessel) is allotted to account for 
incidental catch of bluefin tuna during a specified calendar year. 
Unless otherwise required under paragraph (b)(5) of this section, an 
Atlantic Tunas Longline permitted vessel's initial IBQ allocation for a 
particular year is derived by multiplying its IBQ share (percentage) by 
the initial Longline category quota for that year. NMFS may transfer 
additional quota to the Longline category inseason as authorized under 
Sec.  635.27(a), and in accordance with Sec.  635.27(a)(8) and (9), and 
may distribute the transferred quota within the Longline category in 
accordance with paragraph (b)(9) of this section.
* * * * *
    (9) Distribution of additional Longline category quota transferred 
inseason. NMFS may distribute the quota that is transferred inseason to 
the Longline category either to all IBQ share recipients as described 
under paragraph (k)(1) of this section or to permitted Atlantic Tunas 
Longline vessels that are determined by NMFS to have recent fishing 
activity based on participation in the pelagic longline fishery. In 
making this determination, NMFS will consider factors for the subject 
and previous year such as the number of BFT landings and dead discards, 
the number of IBQ lease transactions, the average amount of IBQ leased, 
the average amount of quota debt, the annual amount of IBQ allocation, 
any previous inseason allocations of IBQ, the amount of BFT quota in 
the Reserve category (at Sec.  635.27(a)(7)(i)), the percentage of BFT 
quota harvested by the other quota categories, the remaining number of 
days in the year, the number of active vessels fishing not associated 
with IBQ share, and the number of vessels that have incurred quota debt 
or that have low levels of IBQ allocation. NMFS will determine if a 
vessel has recent fishing activity based upon the best available 
information for the subject and previous year, such as logbook, vessel 
monitoring system, or electronic monitoring data. Any distribution of 
quota transferred inseason will be equal among selected recipients; 
when inseason distribution is only to Atlantic Tunas Longline permit 
holders with IBQ shares, it will therefore not be based on the initial 
IBQ share determination as specified in paragraph (k)(2) of this 
section.
    (i) Regional designations described in paragraph (b)(2) of this 
section will be applied to inseason quota distributed to IBQ share 
recipients.
    (ii) For permitted Atlantic Tunas Longline vessels with recent 
fishing activity that are not qualified IBQ share recipients, regional 
designations of Atlantic (ATL) or Gulf of Mexico (GOM) will be applied 
to the distributed quota based on best available information regarding 
geographic location of sets as reported to NMFS during the period of 
fishing activity analyzed above in this paragraph, with the designation 
based on where the majority of that activity occurred.
* * * * *
[FR Doc. 2016-22902 Filed 9-23-16; 8:45 am]
 BILLING CODE 3510-22-P



                                                    65988               Federal Register / Vol. 81, No. 186 / Monday, September 26, 2016 / Proposed Rules

                                                    ongoing, quantifiable costs relating                    to participate. See SUPPLEMENTARY                     authority of the Atlantic Tunas
                                                    solely to hazardous materials                           INFORMATION   for further details.                    Convention Act (ATCA; 16 U.S.C. 971 et
                                                    transportation. (ACC Comment 2.)                        ADDRESSES: You may submit comments                    seq.) and the Magnuson-Stevens Fishery
                                                       While the Board appreciates the input                on this document, identified by                       Conservation and Management Act
                                                    it received from the commenters in this                 ‘‘NOAA–NMFS–2016–0067,’’ by either                    (Magnuson-Stevens Act; 16 U.S.C. 1801
                                                    proceeding, it has decided to close this                of the following methods:                             et seq.) governing the harvest of BFT by
                                                    docket. Although the Board is not                          • Electronic Submission: Submit all                persons and vessels subject to U.S.
                                                    foreclosing the possibility of addressing               electronic public comments via the                    jurisdiction are found at 50 CFR part
                                                    this issue in the future, even if it were               Federal e-Rulemaking Portal. Go to                    635. Section 635.27 subdivides the U.S.
                                                    to do so, it would be initiated as a new                www.regulations.gov/#!docketDetail;D                  BFT quota recommended by the
                                                    proceeding. Thus, we will not move                      =NOAA-NMFS-2016-0067, click the                       International Commission for the
                                                    forward with this proceeding at this                    ‘‘Comment Now!’’ icon, complete the                   Conservation of Atlantic Tunas (ICCAT)
                                                    time and will discontinue this docket in                required fields, and enter or attach your             among the various domestic fishing
                                                    the interest of administrative efficiency.              comments.                                             categories, per the allocations
                                                      Decided: September 20, 2016.                             • Mail: Submit written comments to                 established in the 2006 Consolidated
                                                                                                            Thomas Warren, Highly Migratory                       Atlantic Highly Migratory Species
                                                      By the Board, Chairman Elliott, Vice
                                                                                                            Species (HMS) Management Division,                    Fishery Management Plan (2006
                                                    Chairman Miller, and Commissioner
                                                    Begeman.                                                Office of Sustainable Fisheries (F/SF1),              Consolidated HMS FMP) (71 FR 58058,
                                                                                                            NMFS, 55 Great Republic Drive,                        October 2, 2006), as amended by
                                                    Marline Simeon,
                                                                                                            Gloucester, MA 01930.                                 Amendment 7 to the 2006 Consolidated
                                                    Clearance Clerk.                                                                                              HMS FMP (Amendment 7) (79 FR
                                                                                                               Instructions: Comments sent by any
                                                    [FR Doc. 2016–23144 Filed 9–23–16; 8:45 am]                                                                   71510, December 2, 2014), and in
                                                                                                            other method, to any other address or
                                                    BILLING CODE 4915–01–P
                                                                                                            individual, or received after the end of              accordance with implementing
                                                                                                            the comment period, may not be                        regulations. The current baseline U.S.
                                                                                                            considered by NMFS. All comments                      BFT quota and subquotas were
                                                    DEPARTMENT OF COMMERCE                                  received are a part of the public record              established and analyzed in the BFT
                                                                                                            and generally will be posted for public               quota final rule (80 FR 52198, August
                                                    National Oceanic and Atmospheric                        viewing on www.regulations.gov                        28, 2015). NMFS is required under
                                                    Administration                                          without change. All personal identifying              ATCA and the Magnuson-Stevens Act to
                                                                                                            information (e.g., name, address, etc.),              provide U.S. fishing vessels with a
                                                    50 CFR Part 635                                         confidential business information, or                 reasonable opportunity to harvest the
                                                    [Docket No. 160527473–6473–01]                          otherwise sensitive information                       ICCAT-recommended quota.
                                                                                                            submitted voluntarily by the sender will              Background
                                                    RIN 0648–BG09                                           be publicly accessible. NMFS will
                                                                                                                                                                     BFT fishing is managed domestically
                                                                                                            accept anonymous comments (enter ‘‘N/
                                                    Atlantic Highly Migratory Species;                                                                            through a quota system (on a calendar-
                                                                                                            A’’ in the required fields if you wish to
                                                    Individual Bluefin Quota Program;                                                                             year basis), in conjunction with other
                                                                                                            remain anonymous).
                                                    Inseason Transfers                                                                                            management measures including gear
                                                                                                               The public hearing conference call
                                                                                                                                                                  restrictions, minimum fish sizes, closed
                                                    AGENCY:  National Marine Fisheries                      information is phone number (888) 455–
                                                                                                                                                                  areas, trip limits, and catch shares.
                                                    Service (NMFS), National Oceanic and                    5378; participant passcode 5816248.
                                                                                                                                                                  NMFS implements the ICCAT U.S.
                                                    Atmospheric Administration (NOAA),                      Participants are strongly encouraged to
                                                                                                                                                                  quota recommendation, and divides the
                                                    Commerce.                                               log/dial in 15 minutes prior to the
                                                                                                                                                                  quota among U.S. fishing categories (i.e.,
                                                    ACTION: Proposed rule; request for                      meeting. NMFS will show a brief
                                                                                                                                                                  the General, Angling, Harpoon, Purse
                                                    comments; notice of public hearing.                     presentation via webinar followed by                  Seine, Longline, and Trap categories)
                                                                                                            public comment. To join the webinar, go               and the Reserve category. Quotas are
                                                    SUMMARY:    NMFS proposes to modify the                 to: https://noaaevents3.webex.com/                    distributed on an annual basis, but
                                                    Atlantic highly migratory species (HMS)                 noaaevents3/onstage/                                  NMFS also has the regulatory authority
                                                    regulations to provide additional                       g.php?MTID=e20e9f661ee7184823fb28                     to make inseason adjustments to BFT
                                                    flexibility regarding the distribution of               b56cbf7d16f; meeting number: 993 144                  quotas after the initial annual
                                                    inseason Atlantic bluefin tuna (BFT)                    732; password: NOAA. Participants who                 allocations, if the U.S. baseline quota
                                                    quota transfers to the Longline category.               have not used WebEx before will be                    increases as a result of an ICCAT
                                                    The proposed rule would provide                         prompted to download and run a plug-                  recommendation or as a result of a
                                                    NMFS the flexibility to distribute quota                in program that will enable them to                   transfer of quota from the Reserve
                                                    inseason either to all qualified                        view the webinar.                                     category in accordance with specific
                                                    Individual Bluefin Quota (IBQ) share                       Supporting documents, including the                regulatory determination criteria.
                                                    recipients (i.e., share recipients who                  Regulatory Impact Review and Initial                     Vessels fishing with pelagic longline
                                                    have associated their permit with a                     Regulatory Flexibility Analysis, may be               gear, which catch BFT incidentally
                                                    vessel) or only to permitted Atlantic                   downloaded from the HMS Web site at                   while fishing for target species
                                                    Tunas Longline vessels with recent                      www.nmfs.noaa.gov/sfa/hms/. These                     (primarily swordfish and yellowfin
                                                    fishing activity, whether or not they are               documents also are available by                       tuna), hold limited access Atlantic
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                                                    associated with IBQ shares.                             contacting Thomas Warren at the                       Tunas Longline permits and utilize
                                                    DATES: Written comments must be                         mailing address specified above.                      Longline category quota. Through
                                                    received on or before October 26, 2016.                 FOR FURTHER INFORMATION CONTACT:                      Amendment 7, NMFS established the
                                                    NMFS will host an operator-assisted                     Thomas Warren or Sarah McLaughlin,                    IBQ Program, a catch share program that
                                                    public hearing conference call and                      978–281–9260; Carrie Soltanoff, 301–                  identified 136 permit holders as IBQ
                                                    webinar on October 4, 2016, from 2 to                   427–8503.                                             share recipients based on specified
                                                    4 p.m. EDT, providing an opportunity                    SUPPLEMENTARY INFORMATION:                            criteria, including historical target
                                                    for individuals from all geographic areas               Regulations implemented under the                     species landings and the bluefin catch-


                                               VerDate Sep<11>2014   20:13 Sep 23, 2016   Jkt 238001   PO 00000   Frm 00009   Fmt 4702   Sfmt 4702   E:\FR\FM\26SEP1.SGM   26SEP1


                                                                        Federal Register / Vol. 81, No. 186 / Monday, September 26, 2016 / Proposed Rules                                           65989

                                                    to-target species ratios from 2006                      January 1, 2016, a vessel fishing with                annual quota distributions to the 136
                                                    through 2012. Consistent with 50 CFR                    pelagic longline gear must have a                     qualified IBQ share recipients, based
                                                    635.15(b)(2), recipients received one of                minimum IBQ allocation to fish and                    upon their shareholder percentages.
                                                    three shareholder percentages (low,                     may not fish if it has quota debt. A                     During 2015, 36 of the 136 qualified
                                                    medium, or high) based on their score                   minimum allocation required to fish is                IBQ share recipients had no pelagic
                                                    related to these criteria.                              0.25 mt (551 lb) whole weight (ww) for                longline fishing activity (i.e., they took
                                                      The specific objectives of the IBQ                    a trip in the Gulf of Mexico and 0.125                no fishing trips with pelagic longline
                                                    Program were to:                                        mt ww (276 lb ww) for a trip in the                   gear). Furthermore, 31 of the 36
                                                      1. Limit the amount of BFT landings and               Atlantic. Pelagic longline vessels may                qualified IBQ share recipients that did
                                                    dead discards in the pelagic longline fishery;          lease IBQ allocation from other such                  not fish also did not lease IBQ to others
                                                      2. Provide strong incentives for the vessel           vessels or from Purse Seine fishery                   (i.e., 31 neither fished nor leased and 5
                                                    owner and operator to avoid BFT                         participants in the IBQ Program to                    did not fish, but leased out their IBQ
                                                    interactions, and thus reduce bluefin dead              obtain sufficient allocation for their                allocations). As a result, their IBQ
                                                    discards;                                               trips or to account for quota debt.                   allocations went unused for the year
                                                      3. Provide flexibility in the quota system to            In July 2015 and January 2016, NMFS                and expired at year’s end.
                                                    enable pelagic longline vessels to obtain BFT           transferred quota inseason from the                      Since January 1, 2015, NMFS has
                                                    quota from other vessels with available                 Reserve category to the Longline                      received requests (among other
                                                    individual quota in order to enable full                                                                      suggestions about the IBQ Program and
                                                                                                            category (80 FR 45098, July 29, 2015; 81
                                                    accounting for BFT landings and dead
                                                                                                            FR 19, January 4, 2016). In transferring              management of the pelagic longline
                                                    discards, and minimize constraints on fishing
                                                    for target species;                                     quota inseason, NMFS considered the                   fishery) to distribute quota inseason
                                                      4. Balance the objective of limiting bluefin          relevant regulatory determination                     only to those vessels that are currently
                                                    landings and dead discards with the                     criteria for inseason or annual                       fishing (whether associated with IBQ
                                                    objective of optimizing fishing opportunities           adjustments under 50 CFR 635.27(a)(8)                 shares or not) to optimize fishing
                                                    and maintaining profitability; and                      as required, and decided that allocation              opportunity and account for dead
                                                      5. Balance the above objectives with                  to the Longline category was warranted                discards, rather than distributing it
                                                    potential impacts on the directed permit                to increase the amount of quota                       equally to all IBQ share recipients, some
                                                    categories that target BFT, and the broader             available to the qualified IBQ share                  of whom end up neither using it nor
                                                    objectives of the 2006 Consolidated HMS                                                                       making it available to other vessel
                                                                                                            recipients and therefore help those
                                                    FMP and the Magnuson-Stevens Fishery
                                                                                                            permit holders account for BFT landings               owners. In advance of and at the March
                                                    Conservation and Management Act
                                                    (Magnuson-Stevens Act).                                 and dead discards, foster conditions in               2016 HMS Advisory Panel meeting,
                                                                                                            which permit holders became more                      pelagic longline fishery participants
                                                       IBQ share recipients receive an                      willing to lease IBQ, allow continued                 expressed concerns about the
                                                    annual allocation of the Longline                       fishing for available target species quota,           availability of IBQ allocation as
                                                    category quota based on the percentage                  and reduce uncertainty in the fishery as              implemented under Amendment 7.
                                                    share they received through                             a whole. In these inseason actions,                   Longline fishery participants have
                                                    Amendment 7 but only if their permit                    NMFS distributed the transferred quota                stated that, while they were able to
                                                    is associated with a vessel in the subject              in equal amounts to the 136 qualified                 obtain sufficient IBQ allocation by
                                                    year (i.e., only ‘‘qualified IBQ share                  IBQ share recipients, which included                  leasing it under the conditions that
                                                    recipients’’ receive annual allocations).               those with vessels actively fishing and               applied in 2015, those conditions were
                                                    Permit holders that were not selected to                those not actively fishing. NMFS                      temporary. They are concerned that, as
                                                    receive IBQ shares through Amendment                    distributed the quota transferred                     additional requirements now apply
                                                    7 may still fish, but they are required to              inseason equally in order to provide                  beginning in 2016, the IBQ Program
                                                    lease quota. Leasing occurs through the                 each qualified IBQ share recipient the                could negatively impact vessel
                                                    IBQ electronic system. Every vessel                     minimum amount of IBQ allocation                      operations and finances given the
                                                    must have a minimum amount of quota                     needed to fish. Given the small amount                pricing of IBQ, the distribution of quota
                                                    allocation to fish (described below),                   of quota being transferred to the                     among permit holders as implemented
                                                    whether obtained through their shares                   category, distribution according to share             by Amendment 7, and the behavior of
                                                    or by leasing, and every vessel must                    holder percentages would have resulted                some permit holders who, for example,
                                                    individually account for its BFT                        in transfers below the minimum                        they say hold on to IBQ for the entire
                                                    landings and dead discards through the                  allocation needed to fish and would                   season without participating in the
                                                    IBQ electronic system.                                  have made the transfer ineffective in                 fishery or engaging in leasing. They also
                                                       Delayed effective dates for some of the              easing the transition to the Amendment                say that the expense of leasing IBQ
                                                    regulations implemented through                         7 measures as intended. During 2015,                  allocation when needed can impact
                                                    Amendment 7 assisted in the transition                  based on logbook data, 104 vessels                    other operational costs such as crew
                                                    to measures adopted in Amendment 7,                     fished with pelagic longline gear, 100 of             pay. If availability is limited, or costs
                                                    which substantially increased                           which were vessels associated with IBQ                are prohibitive, the operational impacts
                                                    individual vessel accountability for BFT                shares and 4 of which were not. A total               increase. IBQ Program data analyzed in
                                                    bycatch (landings and dead discards) in                 of 59 vessels landed BFT, and 2 vessels               this action include the leases that were
                                                    the Longline fishery. During 2015, the                  accounted for dead discards but did not               completed in 2015, and generally reflect
                                                    first year of implementation of the IBQ                 land BFT.                                             that, for leasing transactions that
                                                    Program, a pelagic longline vessel that                    Also during 2015, NMFS                             occurred, sales revenue received per
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                                                    had insufficient IBQ to account for its                 implemented a quota increase for the                  pound approximated the cost per pound
                                                    landings and dead discards (i.e., went                  Longline category that resulted from an               of leasing IBQ. However, IBQ Program
                                                    into ‘‘quota debt’’) was allowed to                     increase in the quota at ICCAT and the                participants (which include any permit
                                                    continue to fish, however any additional                subsequent modification of the baseline               holder or vessel that leases quota to
                                                    landings and dead discards continued to                 annual U.S. BFT quota and subquotas                   facilitate pelagic longline operations)
                                                    accrue, and the cumulative quota debt                   (80 FR 52198, August 28, 2015). In                    and potential lessees have
                                                    needed to be accounted for no later than                adjusting the baseline annual quota                   communicated that there were instances
                                                    December 31, 2015. In contrast, as of                   upwards, NMFS also adjusted the                       where the cost at which lessors were


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                                                    65990               Federal Register / Vol. 81, No. 186 / Monday, September 26, 2016 / Proposed Rules

                                                    willing to lease their IBQ was                          for inseason transfers in 2016, NMFS                     If NMFS decides to distribute the
                                                    prohibitive and leasing did not occur.                  would examine fishing activity data for               inseason quota to all qualified IBQ share
                                                    Furthermore, expanded opportunities to                  2015 and 2016 to determine if there was               recipients, those qualified IBQ share
                                                    fish with pelagic longline gear within                  fishing activity during that period.                  recipients would receive equal amounts
                                                    the available swordfish and yellowfin                   Providing flexibility in the quota system             of the quota transferred.
                                                    tuna quotas are contingent on access to                 and maintaining flexibility of the                       If NMFS decides to distribute
                                                    additional quota to account for BFT                     regulations to account for the highly                 inseason quota only to those vessels
                                                    bycatch and discards. Longline fishery                  variable nature of the BFT fishery was                with recent fishing activity, vessels with
                                                    participants requested that NMFS take                   an objective of Amendment 7 (See, e.g.,               ‘‘recent fishing activity’’ would be
                                                    further steps to provide more access to                 Amendment text at 79 FR 71510 and                     vessels determined by NMFS to have
                                                    quota for those vessels with recent                     71559).                                               recent fishing activity in the pelagic
                                                    fishing activity to reduce the                             In deciding whether to transfer                    longline fishery during the subject and
                                                    dependence on qualified IBQ share                       additional quota to the Longline                      previous year based upon available
                                                    recipients, some of whom are not                        category inseason from the Reserve                    information such as logbook, VMS, or
                                                    participating in the fishery or engaging                category, NMFS would continue to                      electronic monitoring data. The specific
                                                    in leasing.                                             consider the 14 regulatory                            data and date range analyzed in a given
                                                       After looking at the issues raised by                determination criteria for inseason or                inseason action would be those
                                                    the fishery participants and at trends in               annual adjustments at 50 CFR                          available at the time of year the inseason
                                                    IBQ leasing and utilization for 2015, it                635.27(a)(8), including the need to                   transfer occurs, and will depend on
                                                    is apparent that additional flexibility is              ‘‘optimize fishing opportunity.’’                     which complete data are available at
                                                    needed regarding the distribution of                       Next, NMFS would decide whether to                 that time. For example, logbook data for
                                                    inseason transfers of BFT quota within                  distribute that quota transferred                     a particular year are typically not
                                                    the Longline category to assist NMFS in                 inseason to all qualified IBQ share                   available for use until several months
                                                    providing reasonable opportunities to                   recipients or only to permitted Atlantic              into the following year due to the
                                                    fish for target species under the limits                Tunas Longline vessels with recent                    process of data entry and quality
                                                    imposed by the IBQ Program and to                       fishing activity whether or not they are              control, as well as late reporting.
                                                    optimize distribution of BFT quota                      associated with IBQ shares. This                      Therefore, early in a year, NMFS may
                                                    transferred inseason to the Longline                    decision would be based on factors for                determine vessel activity for the
                                                    category, while at the same time                        the subject year and previous year,                   previous and subject year using VMS
                                                    encouraging the appropriate functioning                 including the number of BFT landings                  data, whereas later in the year, it might
                                                    of the IBQ Program, including its leasing               and dead discards, the number of IBQ                  use both logbook and VMS data.
                                                    provisions. As discussed above, 36 of                   lease transactions, the average amount                   Whether NMFS decides to distribute
                                                    136 (i.e., 26 percent) qualified IBQ share              of IBQ leased, the average amount of                  quota to all qualified IBQ recipients or
                                                    recipients that also received additional                quota debt, the annual amount of IBQ                  to only those permitted vessels with
                                                    quota from inseason transfers did not                   allocation, any previous inseason                     recent fishing activity, quota transferred
                                                    fish in 2015, and 31 neither fished nor                 allocations of IBQ, the amount of BFT                 inseason would be distributed equally
                                                    leased. Thus, under current conditions,                 quota in the Reserve category, the                    to the vessel account associated with the
                                                    the BFT quota from inseason transfers is                percentage of BFT quota harvested by                  relevant vessel via the electronic IBQ
                                                    not being distributed optimally and                     the other quota categories, the                       system. In either case, when a qualified
                                                    much of the Longline category BFT                       remaining number of days in the year,                 IBQ share recipient receives inseason
                                                    quota is going unused (136 mt in 2015).                 the number of active vessels fishing not              quota, the quota will be designated as
                                                    In addition, as discussed above, there                  associated with IBQ share, and the                    either Gulf of Mexico (GOM) IBQ,
                                                    were instances where permitted Atlantic                 number of vessels that have incurred                  Atlantic (ATL) IBQ, or both GOM and
                                                    Tunas Longline vessels sought to lease                  quota debt or that have low levels of                 ATL IBQ, according to the share
                                                    IBQ, but leasing did not occur due to                   IBQ allocation. In deciding which                     recipient’s regional designations. For
                                                    cost prohibitive prices set by lessors.                 approach will be used, NMFS will                      vessels with recent fishing activity that
                                                    This underutilization of IBQ is not                     consider which approach will best meet                are not qualified IBQ share recipients,
                                                    consistent with the third and fourth                    the specific objectives of the IBQ                    NMFS would assign the distributed
                                                    objectives of the IBQ Program, because                  Program as stated in Amendment 7,                     quota a regional designation based on
                                                    it places unnecessary constraints on                    including the objective of providing                  where the majority of their ‘‘recent
                                                    opportunities for longline fishery                      ‘‘flexibility in the quota system to                  fishing activity’’ occurred for the
                                                    participants to fish for target species.                enable pelagic longline vessels to obtain             relevant period analyzed.
                                                       This proposed rule would modify the                  BFT quota from other vessels with                        The economic impacts of the
                                                    regulations to specify that distribution                available individual quota in order to                proposed measures would differ only
                                                    of quota transferred to the Longline                    enable full accounting for BFT landings               slightly from the impacts analyzed by
                                                    category inseason (i.e., beyond the                     and dead discards, and minimize                       Amendment 7. For example, if NMFS
                                                    baseline Longline category quota that is                constraints on fishing for target                     had opted in early 2016 to exercise the
                                                    distributed to qualified IBQ share                      species.’’ For example, in years where                flexibility to distribute quota inseason to
                                                    recipients) may be either to the qualified              leasing by IBQ share recipients is not                only those vessels with recent fishing
                                                    IBQ share recipients or to permitted                    occurring as anticipated by Amendment                 activity, the number of vessels that
                                                    Atlantic Tunas Longline vessels with                    7 distribution to only active vessels,                would have received inseason quota
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                                                    recent fishing activity whether they are                might be the appropriate approach to                  would have been reduced from 136 to
                                                    associated with qualified IBQ share                     encourage leasing at levels that ensure               approximately 104, based on logbook
                                                    recipients or not. NMFS would                           appropriate functioning of the IBQ                    data indicating the number of vessels
                                                    determine recent fishing activity                       system in future years. In years where                with recent fishing activity in 2015, and
                                                    through logbook, vessel monitoring                      the leasing program is functioning well               each vessel would have received more
                                                    system (VMS), or electronic monitoring                  and leasing is occurring as needed,                   quota. This increased allocation would
                                                    data indicating fishing activity in the                 distribution may be to all of the                     help these active vessels to remain
                                                    subject and previous year. For example,                 qualified IBQ share recipients.                       fishing longer under fewer quota


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                                                                        Federal Register / Vol. 81, No. 186 / Monday, September 26, 2016 / Proposed Rules                                          65991

                                                    constraints and would reduce the                        participants change over time and                     categorically excluded since it is a
                                                    transaction costs associated with finding               include vessels with Atlantic Tunas                   change to a previously analyzed and
                                                    additional quota through the leasing                    Longline permits that did not qualify for             approved fishery management plan, and
                                                    program in years where leased quota is                  IBQ shares and entry-level participants.              the proposed change will have no
                                                    not readily available. The general goal                 Therefore the proposed regulation                     substantive effect, individually or
                                                    would be to mitigate the type of                        would assist new entry to the fishery                 cumulatively on the human
                                                    situation that occurred in 2015, where                  when there is an inseason transfer of                 environment beyond that already
                                                    over 25 percent of qualified IBQ share                  quota to the Longline category, or would              analyzed in the Environmental Impact
                                                    recipients were not actively fishing and,               help facilitate leasing by inactive vessels           Statement for Amendment 7 to the 2006
                                                    of them, 86 percent were not leasing                    earlier in the season to facilitate such              Consolidated Atlantic Highly Migratory
                                                    IBQ allocation to other vessels through                 entry.                                                Species Fishery Management Plan (79
                                                    the IBQ Program. Distributing even                                                                            FR 71510, December 2, 2014) and in the
                                                    more quota to vessels that are not                      Request for Comments                                  EA for the final rule that increased the
                                                    fishing and not leasing the unused quota                  NMFS solicits comments on this                      U.S. BFT quota (for 2015 and until
                                                    to other fishery participants mid-season                proposed rule through October 26, 2016.               changed) based on the recommendation
                                                    does not minimize constraints on                        See instructions in ADDRESSES section.                of the International Commission for the
                                                    fishing for target species, nor does it                                                                       Conservation of Atlantic Tunas (80 FR
                                                                                                            Public Hearing Conference Call
                                                    help to meet objectives of the IBQ                                                                            52198, August 28, 2015). Inseason quota
                                                    program, specifically to optimize fishing                  NMFS will hold a public hearing                    allocations to the pelagic longline
                                                    opportunities for those target species                  conference call and webinar on October                category do not modify the annual U.S.
                                                    and to maintain profitability of the                    4, 2016, from 2 p.m. to 4 p.m. EDT, to                BFT quota nor the fishing mortality
                                                    pelagic longline fleet.                                 allow for an additional opportunity for               associated with that quota. Minor
                                                       The inactive vessels (e.g., 36 qualified             interested members of the public from                 modifications of allocations to vessels
                                                    IBQ share recipients in 2015) would not                 all geographic areas to submit verbal                 contribute to determining when and
                                                    receive inseason quota under the above                  comments on the proposed quota rule.                  where fishing mortality occurs, but do
                                                    scenario. Inactive vessels would not be                    The public is reminded that NMFS                   not alter the overall allowable mortality
                                                    fishing at the time, and thus would not                 expects participants at public hearings               under the U.S. BFT quota. This action
                                                    have an immediate need for the quota to                 and on conference calls to conduct                    would not directly affect fishing effort,
                                                    support their directed fishing                          themselves appropriately. At the                      quotas, fishing gear, authorized species,
                                                    operations. If they chose to fish later in              beginning of the conference call, a                   interactions with threatened or
                                                    the season, they would still have quota                 representative of NMFS will explain the               endangered species, or other relevant
                                                    available for their use from their initial              ground rules (all comments are to be                  parameters. Thus, there is no
                                                    IBQ allocation for the year. Thus, the                  directed to the agency on the proposed                environmental or ecological effect
                                                    cost to inactive vessels of the proposed                action; attendees will be called to give              different than what was analyzed
                                                    inseason distribution alternative would                 their comments in the order in which                  previously. A final determination will
                                                    mainly be limited to the forgone ability                they registered to speak; each attendee               be made prior to publication of the final
                                                    to lease out their allocation. This cost is             will have an equal amount of time to                  rule for this action.
                                                    analyzed in the Initial Regulatory                      speak; and attendees should not                          NMFS has prepared a Regulatory
                                                    Flexibility Analysis. Under Amendment                   interrupt one another). The NMFS                      Impact Review (RIR), and an Initial
                                                    7, the purpose of quota leasing was to                  representative will attempt to structure              Regulatory Flexibility Analysis (IRFA),
                                                    facilitate directed fishing for Atlantic                the meeting so that all attending                     which present and analyze anticipated
                                                    swordfish, other tunas, and other                       members of the public will be able to                 social, and economic impacts of the
                                                    pelagic species, and to provide strong                  comment, if they so choose, regardless                alternatives contained in this proposed
                                                    incentives for the vessel owners and                    of the controversial nature of the subject            rule. The list of alternatives and their
                                                    operators to avoid BFT interactions,                    matter. If attendees do not respect the               analyses are provided in the draft RIR
                                                    while also providing a mechanism for                    ground rules, they will be asked to leave             and are not repeated here in their
                                                    vessels to obtain more quota, if needed,                the conference call.                                  entirety. A copy of the draft RIR
                                                    given the required minimum allocation                                                                         prepared for this proposed rule is
                                                    to fish. If IBQ share recipients do not                 Classification                                        available from NMFS (see ADDRESSES).
                                                    plan to fish, the possibility of inseason                  The NMFS Assistant Administrator                      An IRFA was prepared, as required by
                                                    quota transfers being distributed to                    has determined that the proposed rule is              section 603 of the Regulatory Flexibility
                                                    active fishery participants might                       consistent with the 2006 Consolidated                 Act (RFA, 5 U.S.C. 603 et seq.), and is
                                                    encourage them to lease their                           HMS FMP and its amendments, the                       included below. The IRFA describes the
                                                    allocations to those participants earlier               Magnuson-Stevens Act, ATCA, and                       economic impact this proposed rule, if
                                                    in the season. This in turn would                       other applicable law, subject to further              adopted, would have on small entities.
                                                    facilitate a more effective IBQ leasing                 consideration after public comment.                   A description of the action, why it is
                                                    program and minimize any loss of                           This proposed rule has been                        being considered, and the legal basis for
                                                    potential IBQ leasing revenue.                          determined to be not significant for                  this action are contained in the SUMMARY
                                                       In addition, providing quota inseason                purposes of Executive Order 12866.                    section of the preamble.
                                                    to permitted vessels with recent fishing                   This action has been preliminarily                    The goal of the RFA is to minimize
                                                    activity would include some vessels                     determined to be categorically excluded               the economic burden of federal
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                                                    with permits that did not qualify for IBQ               from the requirement to prepare an                    regulations on small entities. To that
                                                    share in Amendment 7. Such vessels                      environmental assessment (EA) in                      end, the RFA directs federal agencies to
                                                    may include new entrants to the fishery                 accordance with the National                          assess whether the proposed regulation
                                                    that have participated in the IBQ                       Environmental Policy Act and NOAA                     is likely to result in significant
                                                    Program by leasing IBQ in order to fish                 administrative order NAO 216–6 (as                    economic impacts to a substantial
                                                    initially. Notwithstanding the defined                  preserved by NAO 216–6A), subject to                  number of small entities, and identify
                                                    scope of qualified IBQ share recipients                 further consideration after public                    and analyze any significant alternatives
                                                    (136), the pelagic longline fishery                     comment. The proposed action may by                   to the proposed rule that accomplish the


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                                                    65992               Federal Register / Vol. 81, No. 186 / Monday, September 26, 2016 / Proposed Rules

                                                    objectives of applicable statutes and                   inseason transfers of BFT quota within                differ from those established by the SBA
                                                    minimizes any significant effects on                    the Longline category to assist NMFS in               Office of Size Standards, but only for
                                                    small entities.                                         providing reasonable opportunities to                 use by NMFS and only for the purpose
                                                                                                            fish for target species under the limits              of conducting an analysis of economic
                                                    Description of the Reasons Why Action
                                                                                                            imposed by the IBQ Program and to                     effects in fulfillment of the agency’s
                                                    is Being Considered
                                                                                                            optimize distribution of BFT quota                    obligations under the RFA. To utilize
                                                       Section 603(b)(1) of the RFA requires                transferred inseason to the Longline                  this provision, NMFS must publish such
                                                    an IRFA to contain a description of the                 category. To account for the highly                   size standards in the Federal Register.
                                                    reasons why the action is being                         variable nature of the BFT fishery and                In a final rule effective on July 1, 2016
                                                    considered. The purpose of this                         maintain flexibility in the regulations,              (80 FR 81194, December 29, 2015),
                                                    proposed rule is, consistent with the                   NMFS is considering this action, which                NMFS established a small business size
                                                    2006 Consolidated HMS FMP                               provides flexibility in the quota system.             standard of $11 million in annual gross
                                                    objectives, the Magnuson-Stevens Act,                                                                         receipts for all businesses in the
                                                    and other applicable law, to provide                    Statement of the Objectives of, and
                                                                                                                                                                  commercial fishing industry (NAICS
                                                    NMFS the flexibility to distribute quota                Legal Basis for, the Proposed Rule
                                                                                                                                                                  11411) for RFA compliance purposes.
                                                    inseason to all qualified IBQ share                        Section 603(b)(2) of the RFA requires              NMFS considers all HMS Atlantic
                                                    recipients (those who have associated                   the IRFA to contain a statement of the                Tunas Longline permit holders (280 as
                                                    their share with a vessel) or to permitted              objectives and legal basis for the                    of October 2015) to be small entities
                                                    Atlantic Tunas Longline vessels with                    proposed rule. The objective of this                  because these vessels have reported
                                                    recent fishing activity whether or not                  proposed rule is to provide additional                annual gross receipts of less than $11
                                                    they are associated with IBQ shares.                    flexibility regarding the distribution of             million for commercial fishing. The
                                                       Since January 1, 2015, NMFS has                      inseason BFT quota transfers to the                   average annual gross revenue per
                                                    received requests (among other                          Longline category in order to facilitate              pelagic longline vessel was estimated to
                                                    suggestions about the IBQ Program and                   the management of Atlantic HMS                        be $187,000 based on the 170 vessels
                                                    management of the pelagic longline                      resources in a manner that maximizes                  that fished between 2006 and 2012, and
                                                    fishery) to distribute quota inseason to                resource sustainability and fishing                   that produced an estimated $31.8
                                                    those vessels that are currently fishing                opportunity, while minimizing, to the                 million in total revenue annually. The
                                                    (whether associated with IBQ shares or                  greatest extent possible, the                         maximum annual revenue for any
                                                    not) to optimize fishing opportunity and                socioeconomic impacts on affected                     pelagic longline vessel between 2006
                                                    account for dead discards, rather than                  fisheries.                                            and 2015 was $1.9 million, well below
                                                    distributing it equally to all IBQ share                   The legal basis for this proposed rule             the NMFS small business size threshold
                                                    recipients, some of whom end up                         stems from the dual authority of the                  of $11 million in gross receipts for
                                                    neither using it, nor making it available               Magnuson-Stevens Act and ATCA.                        commercial fishing.
                                                    to other vessel owners. In advance of                   Under the Magnuson-Stevens Act,                          NMFS has determined that this
                                                    and at the March 2016 HMS Advisory                      NMFS must, consistent with ten                        proposed rule would apply to the small
                                                    Panel meeting, pelagic longline fishery                 National Standards, manage fisheries to               businesses associated with the 136
                                                    participants expressed concerns about                   maintain optimum yield (OY) by                        Atlantic Tunas Longline permits with
                                                    the availability of IBQ allocation as                   rebuilding overfished fisheries and                   IBQ shares and the additional permitted
                                                    implemented under Amendment 7.                          preventing overfishing. Under ATCA,                   Atlantic Tunas Longline vessels that
                                                    Longline fishery participants have                      NMFS is authorized to promulgate                      fish with quota leased through the IBQ
                                                    stated that, while they were able to                    regulations as may be necessary and                   Program. The impacts on these small
                                                    obtain sufficient IBQ allocation by                     appropriate to carry out binding                      businesses are described below in the
                                                    leasing it under the conditions that                    recommendations of ICCAT.                             discussion of alternatives considered.
                                                    applied in 2015, those conditions were                  Additionally, any management                          NMFS has determined that this action
                                                    temporary. They are concerned that, as                  measures must be consistent with other                would not likely directly affect any
                                                    additional requirements now apply                       domestic laws including the National                  small organizations or small government
                                                    beginning in 2016, the IBQ Program                      Environmental Policy Act (NEPA), the                  jurisdictions defined under the RFA.
                                                    could negatively impact vessel                          Endangered Species Act (ESA), the
                                                    operations and finances given the                       Marine Mammal Protection Act                          Description of the Projected Reporting,
                                                    pricing of IBQ, the distribution of quota               (MMPA), and the Coastal Zone                          Record-Keeping, and Other Compliance
                                                    among permit holders as implemented                     Management Act (CZMA).                                Requirements of the Proposed Rule,
                                                    by Amendment 7, and the behavior of                                                                           Including an Estimate of the Classes of
                                                    some permit holders who, for example,                   Description and Estimate of the Number                Small Entities Which Would Be Subject
                                                    they say hold on to IBQ for the entire                  of Small Entities to Which the Proposed               to the Requirements of the Report or
                                                    season without participating in the                     Rule Would Apply                                      Record
                                                    fishery or engaging in leasing. Longline                   Section 603(b)(3) of the RFA requires                Section 603(b)(4) of the RFA requires
                                                    fishery participants requested that                     agencies to provide an estimate of the                agencies to describe any new reporting,
                                                    NMFS take further steps to provide                      number of small entities to which the                 record-keeping and other compliance
                                                    more access to quota for those vessels                  rule would apply. The Small Business                  requirements. This proposed rule does
                                                    with recent fishing activity to reduce the              Administration (SBA) has established                  not contain any new collection of
                                                    dependence on qualified IBQ share                       size criteria for all major industry                  information, reporting, or record-
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                                                    recipients, some of whom are not                        sectors in the United States, including               keeping requirements.
                                                    participating in the fishery or engaging                fish harvesters. SBA’s regulations
                                                    in leasing.                                             provide that an agency may develop its                Identification of All Relevant Federal
                                                       After looking at the issues raised by                own industry-specific size standards                  Rules Which May Duplicate, Overlap, or
                                                    the fishery participants and at trends in               after consultation with Advocacy and an               Conflict With the Proposed Rule
                                                    IBQ leasing and utilization for 2015, it                opportunity for public comment (see 13                  Under section 603(b)(5) of the RFA,
                                                    is apparent that additional flexibility is              CFR 121.903(c)). Under this provision,                agencies must identify, to the extent
                                                    needed regarding the distribution of                    NMFS may establish size standards that                practicable, relevant Federal rules


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                                                                        Federal Register / Vol. 81, No. 186 / Monday, September 26, 2016 / Proposed Rules                                           65993

                                                    which duplicate, overlap, or conflict                   allocate quota inseason to qualified IBQ              fishing activity, each of those 104 active
                                                    with the proposed action. Fishermen,                    share recipients (those who have                      vessels would receive 0.327 mt (721 lb)
                                                    dealers, and managers in these fisheries                associated their share with a vessel) or              under the preferred alternative. Based
                                                    must comply with a number of                            to permitted Atlantic Tunas Longline                  on the average 2015 IBQ lease price of
                                                    international agreements, domestic                      vessels with recent fishing activity,                 $3.34 per pound, the economic value of
                                                    laws, and other FMPs. These include,                    whether or not they are associated with               such an inseason transfer of 721 lb per
                                                    but are not limited to, the Magnuson-                   IBQ shares. The third alternative would               vessel would be approximately $2,408
                                                    Stevens Act, ATCA, High Seas Fishing                    provide NMFS the flexibility to allocate              per vessel owner under the preferred
                                                    Compliance Act, MMPA, ESA, NEPA,                        quota inseason to qualified IBQ share                 alternative. Active vessel owners would
                                                    Paperwork Reduction Act, and CZMA.                      recipients with recent fishing activity or            receive $568 more in value (31 percent
                                                    This proposed action has been                           IBQ leasing activity. The economic                    more quota) than under the ‘‘no action’’
                                                    determined not to duplicate, overlap, or                impacts of these three alternatives are               (status quo) alternative.
                                                    conflict with any of these statutes or                  detailed below.                                          This increased allocation would help
                                                    Federal rules.                                             Under all three alternatives, NMFS                 these active vessels to remain fishing
                                                                                                            would continue to consider the                        longer under fewer quota constraints
                                                    Description of Any Significant                          regulatory determination criteria for                 and reduce the transaction costs
                                                    Alternatives to the Proposed Rule That                  inseason or annual adjustments under                  associated with finding the same
                                                    Accomplish the Stated Objectives of the                 50 CFR 635.27(a)(8), and if NMFS                      amount of additional quota. The
                                                    Applicable Statutes and That Minimize                   decided that inseason allocation to the               qualified IBQ share recipients with no
                                                    Any Significant Economic Impact of the                  Longline category was warranted to                    fishing activity (36 in 2015) would not
                                                    Proposed Rule on Small Entities                         increase the amount of quota available                receive the 551 lb of IBQ worth
                                                       One of the requirements of an IRFA is                to pelagic longline vessels, NMFS                     approximately $1,840 per vessel that
                                                    to describe any alternatives to the                     would allocate additional quota. The                  they could have received under the
                                                    proposed rule which accomplish the                      difference among the alternatives is in               status quo alternative if they were to
                                                    stated objectives and which minimize                    the specific Atlantic Tunas Longline                  lease their quota to other permit
                                                    any significant economic impacts. These                 permit holders that would receive                     holders. Thus, the cost of this
                                                    impacts are discussed below.                            distribution of inseason BFT quota.                   alternative would mainly be limited to
                                                    Additionally, the RFA (5 U.S.C.                            Under the ‘‘no action’’ alternative,               the forgone ability to lease out
                                                    603(c)(1)–(4)) lists four general                       NMFS would distribute the transferred                 allocation that they otherwise would
                                                    categories that would assist an agency in               quota in equal amounts to all 136                     have received. Under Amendment 7, the
                                                    the development of significant                          qualified IBQ share recipients, which                 purpose of leasing is to accommodate
                                                    alternatives. These categories of                       include vessels actively fishing and                  various levels of unintended catch of
                                                    alternatives are: (1) Establishment of                  vessels not actively fishing. This is the             bluefin and to facilitate directed fishing
                                                    differing compliance or reporting                       manner in which NMFS conducted two                    for Atlantic swordfish, other tunas, and
                                                    requirements or timetables that take into               past inseason transfers from the Reserve              other pelagic species. The few Atlantic
                                                    account the resources available to small                to the Longline category in July 2015                 Tunas Longline vessels that fished that
                                                    entities; (2) clarification, consolidation,             and January 2016 (80 FR 45098, July 29,               were not associated with IBQ shares but
                                                    or simplification of compliance and                     2015; 81 FR 19, January 4, 2016). For                 that leased allocation from qualified IBQ
                                                    reporting requirements under the rule                   each of these 34 mt quota transfers, 0.25             share recipients (4 in 2015) would
                                                    for such small entities; (3) use of                     mt (551 lb) of IBQ were distributed                   receive quota under the preferred
                                                    performance rather than design                          equally to each of the 136 qualified IBQ              alternative worth approximately $2,408
                                                    standards; and (4) exemptions from                      share recipients under Amendment 7.                   per vessel. Such an inseason transfer
                                                    coverage of the rule, or any part thereof,              IBQ allocation was distributed via the                would help facilitate participation by
                                                    for small entities.                                     electronic IBQ system to the vessel                   new entrants to the fishery by lowering
                                                       In order to meet the objectives of this              accounts with permits with IBQ shares                 their costs to obtain quota.
                                                    proposed rule, consistent with the                      associated with a vessel. For those                      Under the third alternative, NMFS
                                                    Magnuson-Stevens Act and ATCA,                          permits with IBQ shares that were not                 would have the flexibility to distribute
                                                    NMFS cannot establish differing                         associated with a vessel at the time of               quota inseason to qualified IBQ share
                                                    compliance requirements for small                       the quota transfer, the IBQ is not usable             recipients with recent fishing activity or
                                                    entities or exempt small entities from                  by the permit holder (i.e., may not be                qualified IBQ share recipients that
                                                    compliance requirements. Thus, there                    leased or used to account for BFT) until              leased out quota to other Atlantic Tunas
                                                    are no alternatives discussed that fall                 the permit is associated with a vessel.               Longline permit holders. This differs
                                                    under the first and fourth categories                   Based on the average 2015 IBQ lease                   from the preferred alternative in two key
                                                    described above. As the IBQ Program                     price of $3.34 per pound, the economic                ways. First, under the third alternative,
                                                    was designed to adhere to performance                   value of such an inseason transfer of 551             only Atlantic Tunas Longline permit
                                                    standards, modifications to the                         lb per vessel would be approximately                  holders with recent activity would
                                                    regulations implementing the IBQ                        $1,840 per vessel owner under the ‘‘no                receive an inseason transfer, while
                                                    Program simply make adjustments to                      action’’ alternative.                                 under the preferred alternative all
                                                    the administration of those underlying                     Under the preferred alternative,                   permitted Atlantic Tunas Longline
                                                    performance standards. NMFS analyzed                    NMFS would have the flexibility to                    vessels with recent activity would
                                                    several different alternatives to this                  allocate quota inseason either to each of             receive an inseason transfer. Secondly,
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                                                    action. Following are the rationales that               the 136 qualified IBQ share recipients or             under the third alternative, relevant
                                                    NMFS used to determine the preferred                    to all permitted Atlantic Tunas Longline              activity would include IBQ leasing
                                                    alternative for achieving the desired                   vessels with recent fishing activity. In              activity in addition to the recent fishing
                                                    objectives.                                             2015, there were 104 active pelagic                   activity required under the preferred
                                                       The first alternative is the ‘‘no action’’           longline vessels (based on logbook data).             alternative. In 2015, of the 104 pelagic
                                                    (status quo) alternative. The second                    If NMFS assumes, for example, a future                longline vessels with recent fishing
                                                    alternative, the preferred alternative,                 inseason transfer of 34 mt distributed                activity, 100 vessels were associated
                                                    would provide NMFS the flexibility to                   equally among vessels with recent                     with IBQ shares that had recent fishing


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                                                    65994               Federal Register / Vol. 81, No. 186 / Monday, September 26, 2016 / Proposed Rules

                                                    activity (four vessels were not                           Authority: 16 U.S.C. 971 et seq.; 16 U.S.C.         debt, the annual amount of IBQ
                                                    associated with IBQ shares in 2015) and                 1801 et seq.                                          allocation, any previous inseason
                                                    5 vessels were associated with IBQ                      ■ 2. In § 635.15, revise paragraph (b)                allocations of IBQ, the amount of BFT
                                                    shares that did not fish but did lease                  introductory text, and add paragraph                  quota in the Reserve category (at
                                                    their allocation to other vessels. If                   (b)(9) to read as follows:                            § 635.27(a)(7)(i)), the percentage of BFT
                                                    NMFS assumes a future inseason                                                                                quota harvested by the other quota
                                                                                                            § 635.15    Individual bluefin tuna quotas.
                                                    transfer of 34 mt, each of those 105                                                                          categories, the remaining number of
                                                    vessels associated with IBQ shares (100                 *      *     *     *     *
                                                                                                               (b) IBQ allocation and usage. An                   days in the year, the number of active
                                                    with recent fishing activity and 5 that                                                                       vessels fishing not associated with IBQ
                                                    leased IBQ allocation) would receive                    initial IBQ quota allocation is the
                                                                                                            amount of bluefin tuna (whole weight)                 share, and the number of vessels that
                                                    0.324 mt (714 lb) under the third
                                                                                                            in metric tons (mt) that a qualified IBQ              have incurred quota debt or that have
                                                    alternative. Based on the average 2015
                                                    IBQ lease price of $3.34 per pound, the                 share recipient (i.e., a share recipient              low levels of IBQ allocation. NMFS will
                                                    economic value of such an inseason                      who has associated their permit with a                determine if a vessel has recent fishing
                                                    transfers of 714 lb per vessel would be                 vessel) is allotted to account for                    activity based upon the best available
                                                    approximately $2,385 per vessel owner.                  incidental catch of bluefin tuna during               information for the subject and previous
                                                    Vessels associated with IBQ shares with                 a specified calendar year. Unless                     year, such as logbook, vessel monitoring
                                                    recent fishing activity or IBQ leasing                  otherwise required under paragraph                    system, or electronic monitoring data.
                                                    activity would receive $545 more in                     (b)(5) of this section, an Atlantic Tunas             Any distribution of quota transferred
                                                    value (30 percent more quota) than                      Longline permitted vessel’s initial IBQ               inseason will be equal among selected
                                                    under the ‘‘no action’’ (status quo)                    allocation for a particular year is                   recipients; when inseason distribution
                                                    alternative. This is $23 less per vessel                derived by multiplying its IBQ share                  is only to Atlantic Tunas Longline
                                                    than under the preferred alternative. In                (percentage) by the initial Longline                  permit holders with IBQ shares, it will
                                                    addition, under the third alternative,                  category quota for that year. NMFS may
                                                                                                                                                                  therefore not be based on the initial IBQ
                                                    fewer vessels with recent fishing                       transfer additional quota to the Longline
                                                                                                                                                                  share determination as specified in
                                                    activity would receive quota and new                    category inseason as authorized under
                                                                                                            § 635.27(a), and in accordance with                   paragraph (k)(2) of this section.
                                                    entrants would not receive quota. For
                                                    these reasons, NMFS does not prefer the                 § 635.27(a)(8) and (9), and may                          (i) Regional designations described in
                                                    third alternative.                                      distribute the transferred quota within               paragraph (b)(2) of this section will be
                                                                                                            the Longline category in accordance                   applied to inseason quota distributed to
                                                    List of Subjects in 50 CFR Part 635                     with paragraph (b)(9) of this section.                IBQ share recipients.
                                                      Fisheries, Fishing, Fishing vessels,                  *      *     *     *     *                               (ii) For permitted Atlantic Tunas
                                                    Foreign relations, Imports, Penalties,                     (9) Distribution of additional Longline            Longline vessels with recent fishing
                                                    Reporting and recordkeeping                             category quota transferred inseason.                  activity that are not qualified IBQ share
                                                    requirements, Treaties.                                 NMFS may distribute the quota that is                 recipients, regional designations of
                                                      Dated: September 15, 2016.                            transferred inseason to the Longline
                                                                                                                                                                  Atlantic (ATL) or Gulf of Mexico (GOM)
                                                                                                            category either to all IBQ share
                                                    Samuel D. Rauch III,                                                                                          will be applied to the distributed quota
                                                                                                            recipients as described under paragraph
                                                    Deputy Assistant Administrator for
                                                                                                            (k)(1) of this section or to permitted                based on best available information
                                                    Regulatory Programs, National Marine                                                                          regarding geographic location of sets as
                                                    Fisheries Service.                                      Atlantic Tunas Longline vessels that are
                                                                                                            determined by NMFS to have recent                     reported to NMFS during the period of
                                                      For the reasons set out in the                                                                              fishing activity analyzed above in this
                                                    preamble, 50 CFR part 635 is proposed                   fishing activity based on participation in
                                                                                                            the pelagic longline fishery. In making               paragraph, with the designation based
                                                    to be amended as follows:                                                                                     on where the majority of that activity
                                                                                                            this determination, NMFS will consider
                                                    PART 635—ATLANTIC HIGHLY                                factors for the subject and previous year             occurred.
                                                    MIGRATORY SPECIES                                       such as the number of BFT landings and                *       *    *    *      *
                                                                                                            dead discards, the number of IBQ lease                [FR Doc. 2016–22902 Filed 9–23–16; 8:45 am]
                                                    ■ 1. The authority citation for part 635                transactions, the average amount of IBQ               BILLING CODE 3510–22–P
                                                    continues to read as follows:                           leased, the average amount of quota
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Document Created: 2018-02-09 13:23:16
Document Modified: 2018-02-09 13:23:16
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; notice of public hearing.
DatesWritten comments must be received on or before October 26, 2016. NMFS will host an operator-assisted public hearing conference call and webinar on October 4, 2016, from 2 to 4 p.m. EDT, providing an opportunity for individuals from all geographic areas to participate. See SUPPLEMENTARY INFORMATION for further details.
ContactThomas Warren or Sarah McLaughlin, 978-281-9260; Carrie Soltanoff, 301-427-8503.
FR Citation81 FR 65988 
RIN Number0648-BG09
CFR AssociatedFisheries; Fishing; Fishing Vessels; Foreign Relations; Imports; Penalties; Reporting and Recordkeeping Requirements and Treaties

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