81_FR_70562 81 FR 70365 - Fisheries of the Caribbean, Gulf of Mexico, and South Atlantic; Reef Fish Fishery of the Gulf of Mexico; Red Grouper Management Measures

81 FR 70365 - Fisheries of the Caribbean, Gulf of Mexico, and South Atlantic; Reef Fish Fishery of the Gulf of Mexico; Red Grouper Management Measures

DEPARTMENT OF COMMERCE
National Oceanic and Atmospheric Administration

Federal Register Volume 81, Issue 197 (October 12, 2016)

Page Range70365-70369
FR Document2016-24587

NMFS issues regulations to implement management measures described in a framework action to the Fishery Management Plan for the Reef Fish Resources of the Gulf of Mexico (FMP), as prepared by the Gulf of Mexico Fishery Management Council (Council). This final rule revises the commercial quota and annual catch limit (ACL) and the recreational annual catch target (ACT) and ACL for red grouper in the Gulf of Mexico (Gulf) exclusive economic zone (EEZ). The purpose of this final rule is to adjust the allowable red grouper harvest to achieve optimum yield (OY) based upon an updated Gulf red grouper stock assessment.

Federal Register, Volume 81 Issue 197 (Wednesday, October 12, 2016)
[Federal Register Volume 81, Number 197 (Wednesday, October 12, 2016)]
[Rules and Regulations]
[Pages 70365-70369]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-24587]



[[Page 70365]]

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DEPARTMENT OF COMMERCE

National Oceanic and Atmospheric Administration

50 CFR Part 622

[Docket No. 160613514-6908-02]
RIN 0648-BG12


Fisheries of the Caribbean, Gulf of Mexico, and South Atlantic; 
Reef Fish Fishery of the Gulf of Mexico; Red Grouper Management 
Measures

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

ACTION: Final rule.

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SUMMARY: NMFS issues regulations to implement management measures 
described in a framework action to the Fishery Management Plan for the 
Reef Fish Resources of the Gulf of Mexico (FMP), as prepared by the 
Gulf of Mexico Fishery Management Council (Council). This final rule 
revises the commercial quota and annual catch limit (ACL) and the 
recreational annual catch target (ACT) and ACL for red grouper in the 
Gulf of Mexico (Gulf) exclusive economic zone (EEZ). The purpose of 
this final rule is to adjust the allowable red grouper harvest to 
achieve optimum yield (OY) based upon an updated Gulf red grouper stock 
assessment.

DATES: This final rule is effective October 12, 2016.

ADDRESSES: Electronic copies of the framework action, which includes an 
environmental assessment, a regulatory impact review, and a Regulatory 
Flexibility Act (RFA) analysis may be obtained from the Southeast 
Regional Office Web site at http://sero.nmfs.noaa.gov/sustainable_fisheries/gulf_fisheries/reef_fish/2016/red_grouper_allowable_harvest/index.html.

FOR FURTHER INFORMATION CONTACT: Richard Malinowski, Southeast Regional 
Office, NMFS, telephone: 727-824-5305, email: [email protected].

SUPPLEMENTARY INFORMATION: The Gulf reef fish fishery, which includes 
red grouper, is managed under the FMP. The FMP was prepared by the 
Council and is implemented through regulations at 50 CFR part 622 under 
the authority of the Magnuson-Stevens Fishery Conservation and 
Management Act (Magnuson-Stevens Act).
    On July 26, 2016, NMFS published a proposed rule for the framework 
action and requested public comment (81 FR 48728). The proposed rule 
and the framework action outline the rationale for the actions 
contained in this final rule. A summary of the management measures 
described in the framework action and implemented by this final rule is 
provided below.

Management Measures Contained in This Final Rule

    This final rule revises the commercial quota (which is equivalent 
to the commercial ACT) and ACL, and the recreational ACT and ACL for 
Gulf red grouper. All weights described in this final rule are in 
gutted weight.

Commercial and Recreational Catch Limits

    The current red grouper commercial quota and ACL, and recreational 
ACT and ACL were implemented through a 2011 regulatory amendment (79 FR 
67618, November 2, 2011) and Amendment 32 to the FMP (77 FR 6988, 
February 10, 2012). The current commercial quota is 5,720,000 lb 
(2,590,000 kg) and the commercial ACL is 6,030,000 lb (2,735,000 kg). 
The current recreational ACT is 1,730,000 lb (785,000 kg) and the 
recreational ACL is 1,900,000 lb (862,000 kg).
    For Gulf red grouper, 76 percent of the stock ACL is allocated to 
the commercial sector and 24 percent of the ACL is allocated to the 
recreational sector. The commercial quota is set by applying a 5-
percent buffer to the commercial ACL to account for management 
uncertainty and the recreational ACT is set by applying an 8-percent 
buffer to the recreational ACL to account for management uncertainty.
    This final rule increases catch levels for both sectors. The 
commercial quota will be revised to 7,780,000 lb (3,528,949 kg) and the 
commercial ACL will be revised to 8,190,000 lb (3,714,922 kg). 
Additionally, the recreational ACT will be revised to 2,370,000 lb 
(1,075,014 kg) and the recreational ACL to 2,580,000 lb (1,170,268 kg).
    The revised commercial quota in this final rule will provide the 
commercial sector additional harvest opportunities as a result of the 
increased commercial quota that will be distributed upon the effective 
date of this final rule in the 2016 fishing year. NMFS notes that the 
increase to the red grouper commercial multi-use allocation, that is a 
function of the groupers and tilefish individual fish quota (IFQ) 
program, will not be distributed in the 2016 fishing year to ensure 
that the gag commercial ACL is not exceeded as a result of that 
increase. The increase to the red grouper commercial multi-use 
allocation will be distributed to the applicable IFQ participants on 
January 1, 2017, the start of the next fishing year. The increase in 
the recreational ACL is expected to allow the recreational sector to 
remain open for the entire fishing year by avoiding the implementation 
of an in-season accountability measure.

Comments and Responses

    A total of 28 comment submissions were received on the framework 
action and the proposed rule from commercial and recreational fishers, 
college students, and a sport-fishing club. Ten of the comments 
received were against increasing the red grouper allowable harvest 
while six were in favor of the increase. Five commenters stated that 
the recreational quota should be increased but that the commercial 
quota should not be increased. Seven additional comments were submitted 
that were not related to the proposed rule or the framework action; 
several of these questioned the rationale for the allocation between 
the commercial and recreational sectors. Specific comments related to 
the actions in the framework action and the proposed rule as well as 
NMFS' respective responses, are summarized below.
    Comment 1: There is no need to raise catch levels because setting a 
one-fish recreational bag limit would allow the recreational season to 
remain open all year.
    Response: The Council did not consider reducing the recreational 
bag limit to one fish in this framework action because the increase in 
the recreational ACL is expected to allow the recreational sector to 
remain open the entire fishing year. The Council determined and NMFS 
agrees that this increase in the recreational ACL is supported by the 
results of the most recent stock assessment.
    Comment 2: Only the recreational quota should be increased, not the 
commercial quota.
    Response: NMFS disagrees that only the recreational quota should be 
increased through this final rule. Red grouper are managed as an 
overall Gulf stock and any change to the total allowable catch is 
allocated to both sectors consistent with the allocations established 
in Amendment 30B to the FMP (72 FR 17603, April 16, 2009). The Council 
did not consider and this final rule does not alter current sector 
allocations. Therefore, both the commercial and recreational sectors 
will have their respective catch limits increased in this final rule.
    Comment 3: The combination of red grouper mortality from red tide 
events and the associated destruction of red

[[Page 70366]]

grouper habitat is detrimental to the species. When this mortality and 
habitat loss is considered in addition to the uncertainty of the actual 
recreational landings, the Council and NMFS should take a precautionary 
approach to any increase of the ACL.
    Response: NMFS and the Council considered natural mortality and any 
relevant landings data uncertainty when deciding what catch levels were 
appropriate. First, the Council's Integrated Ecosystem Assessment Group 
(IEA) considered the linkage of natural mortality and recruitment to 
ecosystem processes including predation, red tide events, and 
oceanographic conditions to produce estimates of natural mortality for 
different life stages of red grouper that were incorporated into SEDAR 
42. Based on the results of SEDAR 42, the Council's Science and 
Statistical Committee (SSC) provided two alternative overfishing limit 
(OFL) and acceptable biological catch (ABC) recommendations: As a 
declining yield stream and as a constant catch during this period. The 
Council chose the constant catch OFL and ABC, 14.16 million lb (6.42 
million kg), gutted weight, and 13.92 million lb (6.31 million kg), 
gutted weight, respectively, but chose a more conservative approach in 
setting the catch levels, basing them on the minimum ABC of 10.77 
million lb (4.89 million kg), gutted weight, from the declining yield 
stream. Second, the uncertainty in recreational landings was accounted 
for by the Council by applying the ACL/ACT control rule, which resulted 
in the recreational ACT being set 8 percent below the recreational 
sector ACL. For the commercial sector, the quota is set 5 percent below 
the ACL to account for the management uncertainty associated with the 
multi-use provisions in the IFQ program.
    Comment 4: The increase of the red grouper ABC and total ACL should 
not be approved by NMFS because the bag limit was recently reduced from 
four to two fish, which should allow the recreational fishing season 
the remain open throughout the fishing year.
    Response: NMFS disagrees that the two fish bag limit will allow the 
recreational season to remain open for the entire fishing year. 
Although the recreational bag limit reduction from four to two fish was 
implemented in the spring of 2015, recreational fishing for red grouper 
closed on October 8, 2015. Further, as explained in the framework 
action, both the two-fish bag limit and the increase in the 
recreational catch level resulting from the implementation of this 
final rule are necessary to allow the recreational season to remain 
open through the end of the 2016 fishing year.
    Comment 5: The commercial IFQ program for groupers and tilefish 
should land 95 percent of the red grouper commercial quota for a 
minimum of 3 to 5 years prior to any red grouper commercial quota 
increase.
    Response: NMFS disagrees. There are a variety of potential reasons 
why 100 percent of the red grouper commercial quota has not been 
harvested since the implementation of the IFQ program, including, but 
not limited to, the current 35 fathom longline closure that occurs 
annually from June through August, the moratorium on the issuance of 
new longline endorsements to the Federal reef fish permit, inactive IFQ 
accounts, and low catch and effort rates. Additionally, individual 
commercial vessels strive to maximize profits across a diverse range of 
reef fish and other Gulf species and their harvest strategies, both at 
the trip level and throughout the fishing year, may result in some red 
grouper commercial quota not being harvested during a fishing year. 
Based upon historical landings, NMFS does not expect negative effects 
on the red grouper stock from increased fishing pressure or ex-vessel 
market prices to change significantly as a result of this final rule. 
Additional information on the potential effects to commercial fishing 
vessels from this action may be found in the Classification Section of 
this final rule.

Other Measures Contained in the Framework Action Not in This Final Rule

    In addition to the measures contained in this final rule, this 
framework action also revises the Gulf red grouper OFL and ABC based 
upon the results of SEDAR 42.
    The stock OFL in this framework action is increased to 14,160,000 
lb (6,422,868 kg) from the current stock OFL of 8,100,000 lb (3,674,098 
kg). The ABC in this framework action is also increased from the 
current red grouper stock ABC of 7,930,000 lb (3,596,987 kg) to an ABC 
of 13,920,000 lb (6,314,006 kg).

Classification

    The Regional Administrator, Southeast Region, NMFS, has determined 
that this final rule is consistent with the framework action, the FMP, 
the Magnuson-Stevens Act, and other applicable laws.
    This final rule has been determined to be not significant for 
purposes of Executive Order 12866.
    The Magnuson-Stevens Act provides the statutory basis for this 
rule. The final rule and the preamble to this final rule provide a 
statement of the need for and objectives of this rule. No duplicative, 
overlapping, or conflicting Federal rules have been identified. In 
addition, no new reporting, record-keeping, or other compliance 
requirements are introduced by this final rule.
    In compliance with section 604 of the RFA, NMFS prepared a final 
regulatory flexibility analysis (FRFA) for this final rule. The FRFA 
follows.
    Public comments relating to socio-economic implications and 
potential impacts on small businesses are addressed in the response to 
Comment 5 in the Comments and Responses section of this final rule. No 
changes to this final rule were made in response to public comments. No 
comments were received from the Office of Advocacy for the Small 
Business Administration.
    NMFS agrees that the Council's choice of preferred alternatives 
will best achieve the Council's objectives for the framework action 
while minimizing, to the extent practicable, the adverse effects on 
fishers, support industries, and associated communities.
    NMFS expects this final rule to directly affect all commercial 
vessels that harvest red grouper under the FMP.
    Only recreational anglers, who may fish from shore, man-made 
structures, private, rental, or charter vessels, and headboats, are 
allowed a recreational bag or possession limit of reef fish species in 
the Gulf. Captains or crew members on federally-permitted charter 
vessels or headboats (for-hire vessels) cannot harvest or possess Gulf 
red grouper or other reef fish under the recreational bag limits. 
Therefore, only recreational anglers would be directly affected by the 
changes to the red grouper recreational ACL and ACT. Recreational 
anglers, however, are not considered to be small entities under the 
RFA, so the economic effects of this final rule on these anglers are 
outside the scope of the RFA.
    For-hire vessels are entities that sell fishing services to 
recreational anglers. The changes to the recreational red grouper ACL 
and ACT would not directly alter the services sold by these vessels. 
Any change in demand for these fishing services and associated economic 
effects as a result of this final rule would be a consequence of a 
behavioral change by anglers, secondary to any direct effect on anglers 
and, therefore, an indirect effect of this final rule. Because the only 
effects on for-hire vessels would be indirect, they fall outside the 
scope of the RFA.
    As of March 7, 2016, there were 852 valid or renewable Federal Gulf

[[Page 70367]]

commercial reef fish permits. Each of these permits is associated with 
an individual vessel. To harvest red grouper, a vessel permit must be 
linked to an IFQ account and possess sufficient allocation (pounds of 
fish) for this species. IFQ accounts can be opened and valid Federal 
commercial reef fish permits can be linked to IFQ accounts at any time 
during the year. Allocation is distributed at the beginning of each 
fishing year based on the shares held by each IFQ participant. Eligible 
vessels can also purchase red grouper allocation or shares from other 
IFQ participants. On average (2010 through 2014), 397 commercial 
vessels landed red grouper each year. Their average annual vessel-level 
revenue for 2010 through 2014 was approximately $99,000 (2015 dollars), 
of which $41,000 was from red grouper.
    The maximum annual revenue reported by a single one of these 
vessels in 2014 was approximately $1.5 million (2015 dollars).
    On December 29, 2015, NMFS issued a final rule establishing a small 
business size standard of $11 million in annual gross receipts for all 
businesses primarily engaged in the commercial fishing industry (NAICS 
11411) for RFA compliance purposes only (80 FR 81194, December 29, 
2015). Under this rule, a business primarily engaged in commercial 
fishing (NAICS code 11411) is classified as a small business if it is 
independently owned and operated, is not dominant in its field of 
operation (including its affiliates), and has combined annual receipts 
not in excess of $11 million for all its affiliated operations 
worldwide. The $11 million standard became effective on July 1, 2016, 
and is to be used in place of the U.S. Small Business Administration's 
(SBA) current standards of $20.5 million, $5.5 million, and $7.5 
million for the finfish (NAICS 114111), shellfish (NAICS 114112), and 
other marine fishing (NAICS 114119) sectors of the U.S. commercial 
fishing industry in all NMFS rules subject to the RFA after July 1, 
2016. Id. at 81194.
    Pursuant to the RFA, and prior to July 1, 2016, an initial 
regulatory flexibility analysis was developed for this framework action 
using SBA's size standards. NMFS has reviewed the analyses prepared for 
this framework action with respect to the new size standard. All of the 
entities directly regulated by this framework action are commercial 
fishing businesses and were considered small under the SBA's size 
standards, and they all would continue to be considered small under the 
new NMFS standard. Thus, NMFS has determined that the new size standard 
does not affect analyses prepared for this framework action. No other 
small entities that would be directly affected by this final rule have 
been identified.
    Of the 852 commercial vessels eligible to fish for the species 
managed under the FMP, 397 are expected to be affected by this final 
rule (approximately 47 percent). Because all entities expected to be 
affected by this final rule are small entities, NMFS has determined 
that this final rule would affect a substantial number of small 
entities. Moreover, the issue of disproportionate effects on small 
versus large entities does not arise in the present case.
    Using the Council's preferred alternative, this final rule will set 
the commercial ACL for red grouper at a constant catch value of 
8,190,000 lb (3,714,922 kg). The commercial quota will be set at 95 
percent of the commercial ACL. This will represent a 2,060,000 lb 
(934,400 kg) (36 percent) increase in the commercial quota relative to 
the status quo. The increased quota is expected to result in an 
increase in commercial red grouper harvests, although this increase 
will be constrained by industry capacity, individual harvesters' profit 
maximization strategies, and current Federal management restrictions. 
Economic benefits may accrue to the commercial sector as a result of 
the increased landings and availability of red grouper allocation; 
however, these would be tempered by potential decreases in ex-vessel 
and IFQ allocation prices. It is not possible to quantify these 
economic effects with available data. For 2016, it is unlikely that the 
Gulf reef fish commercial fleet will be able to harvest all of the 
additional red grouper amounts made available by the ACL and ACT 
increases in this final rule because this framework action will likely 
not be effective until late October 2016. In subsequent fishing years, 
commercial fishermen may or may not be able to scale-up their 
operations to harvest the full commercial quota. Price effects in both 
the ex-vessel and allocation transfer markets will depend on the price 
elasticity of demand for red grouper and red grouper allocation, 
respectively. Assuming the price elasticity of demand (percentage 
change in quantity demanded divided by the percentage change in price) 
for red grouper in the ex-vessel market is greater than one (i.e., the 
percentage change in quantity demanded is greater than the percentage 
change in price), then an increase in landings will result in an 
increase in ex-vessel revenue and vice versa. Assuming the price 
elasticity of demand for red grouper allocation is greater than 1, IFQ 
shareholders will experience an overall increase in allocation transfer 
proceeds and vice versa. With respect to IFQ share value, if investors 
believe that the discounted future revenue stream associated with 
shares is greater under the new commercial quota than under the current 
quota, then IFQ share prices will likely increase, otherwise they will 
remain the same or decrease. IFQ account holders that routinely 
purchase red grouper allocation will likely benefit from the wider 
availability and cheaper price of allocation. Again, these cost savings 
may be offset by changes in ex-vessel prices. Additionally, those 
fishers that have already purchased annual allocation for use later in 
2016 will incur supplementary costs because they will have likely 
overpaid for the allocation. Finally, the increased commercial quota 
could result in increased congestion of fishing grounds, which in turn, 
could have a minor impact on harvesting costs.
    The following discussion describes the alternatives that were not 
selected as preferred by the Council.
    Four alternatives, including the preferred alternative discussed 
above, were considered for modifying the red grouper OFL, ABC, and 
commercial and recreational sector catch levels. The first alternative, 
the no action alternative, would not be expected to affect current 
commercial red grouper harvests. This alternative was not selected 
because the OFL and ABC would not be based on the best scientific 
information available and economic benefits derived from increased 
commercial and recreational harvests would be forgone, possibly 
preventing the achievement of OY.
    The second alternative would adopt the OFL and ABC schedule 
recommended by the SSC for 2016 through 2020. Using the current sector 
allocation, the commercial and recreational ACLs would be set at 76 
percent and 24 percent of the ABC, respectively. Under the second 
alternative, the commercial quota would be set at 95 percent of the 
commercial ACL and the recreational ACT would be set at 92 percent of 
the recreational ACL. This alternative would result in a 154 percent 
increase in the commercial quota in 2016, followed by successively 
lower quotas through 2020. In 2020 and subsequent fishing years, the 
red grouper commercial ACL and quota would be equivalent to the 
constant catch values specified in the preferred alternative. Economic 
effects to commercial vessels under this alternative would depend on 
the capacity of the fleet, individual harvesters' profit maximization 
strategies, current Federal management restrictions, and the effects of 
the quota

[[Page 70368]]

increase on ex-vessel, IFQ allocation, and IFQ share prices. Given the 
very substantial size of the quota increases under this alternative, 
the 35-fathom (64-m) bottom longline closure during June through August 
each year, and the lack of issuance of new eastern Gulf reef fish 
bottom longline endorsements, it is not likely that the commercial 
fleet would be able to harvest all of its quota each year. Therefore, 
although positive direct economic benefits may result from additional 
red grouper harvests, increased availability of allocation, and 
potential increases in IFQ share value, they would be constrained by 
the industry's capacity and tempered by negative price effects. It is 
possible that negative price effects from increased allocation and 
landings could actually result in a decrease in allocation transfer 
proceeds and ex-vessel revenues, respectively. As for IFQ share prices, 
NMFS expects they would fluctuate in the short-term as allocation and 
ex-vessel markets re-stabilize and investors speculate on future market 
and stock conditions, as well as future Federal management measures. 
Finally, the increased commercial quotas could result in increased 
congestion of fishing grounds, which in turn could have a minor impact 
on harvesting costs. This alternative was not selected because the 
Council preferred to take a more conservative approach to setting the 
OFL, ABC, and commercial and recreational catch levels in order to 
account for scientific uncertainty in the stock assessment, 
specifically the below average red grouper recruitment in the Gulf 
since 2005, and to reduce the chances of negative economic effects to 
commercial vessels from a large increase in the red grouper commercial 
quota.
    The third alternative would implement the constant catch OFL and 
ABC recommended by the SSC. Using the current sector allocation, the 
commercial and recreational ACLs would be set at 76 percent and 24 
percent of the ABC, respectively. The commercial quota would be set at 
95 percent of the commercial ACL and the recreational ACT would be set 
at 92 percent of the recreational ACL. This would represent a 76 
percent increase in the commercial quota from the current quota. This 
alternative would result in a greater commercial quota compared to the 
preferred alternative, but a lesser quota compared to the second 
alternative through 2017. After 2017, the constant catch commercial ACL 
and quota under this alternative would be greater than both the 
preferred alternative and the second alternative. Economic effects to 
commercial vessels under this alternative would depend on the capacity 
of the fleet, individual harvesters' profit maximization strategies, 
current Federal management restrictions, and the effects of the quota 
increase on ex-vessel and IFQ allocation and share prices. As with the 
second alternative, given the very substantial size of the quota 
increase under this alternative, the 35-fathom (64-m) bottom longline 
closure during June through August each year, and the lack of issuance 
of new eastern Gulf reef fish bottom longline endorsements, it is not 
likely that the commercial fleet would be able to harvest all of its 
quota each year. Therefore, although positive direct economic benefits 
may result from additional red grouper harvests, increased availability 
of allocation, and potential increases in IFQ share value, they would 
be constrained by the industry's capacity and tempered by negative 
price effects. As discussed earlier, these negative price effects could 
outweigh the economic benefits of increased allocation and landings. 
Additionally, IFQ share prices would likely fluctuate in the short-
term. There would also be an increased potential for fishing congestion 
and, in turn, increased harvesting costs. Because the commercial quota 
would be less than under the second alternative but greater than under 
the preferred alternative, it would be expected to fall in between 
those alternatives in terms of potential landings and likelihood of 
negative price effects for 2016 and 2017. In the long-term, this 
alternative would result in the greatest increase in the commercial 
quota and greatest potential landings. Because there is insufficient 
data to estimate the total expected change in landings and revenue, it 
is not possible to definitively state which alternative would be 
expected to result in the greatest economic benefits to the commercial 
sector. This alternative was not selected for the same reasons the 
Council did not select the second alternative.
    This final rule is exempt from the requirement to delay the 
effectiveness of a final rule by 30 days after publication in the 
Federal Register, under 5 U.S.C. 553(d)(1) because the measures 
implemented by this final rule relieve restrictions on the regulated 
community as a result of increased catch levels for the commercial and 
recreational sectors. Specifically, the revised commercial quota in 
this final rule will provide the commercial sector additional harvest 
opportunities as a result of the increased commercial quota that will 
be distributed upon the effective date of this final rule in the 2016 
fishing year. The increase in the recreational ACL is expected to allow 
the recreational sector to remain open for the entire 2016 fishing year 
by avoiding the implementation of an in-season accountability measure 
as a result of the recreational ACL being reached. For these same 
reasons, NMFS finds good cause under 5 U.S.C. 553(d)(3) to waive the 
delay in the effective date of this final rule. Delaying implementation 
of these measures for red grouper could result in a recreational 
fishing closure and will provide less time for commercial fishermen to 
harvest the catch level increase before the fishing year's end. 
Therefore, a delay in effectiveness would diminish the social and 
economic benefits for reef fish fishermen this final rule provides, 
which is part of the purpose of the rule itself. Finally, this final 
rule creates no new duties, obligations, or requirements for the 
regulated community that would necessitate delaying this rule's 
effectiveness to allow them to come into compliance with it. Thus, this 
final rule is effective upon publication.
    Section 212 of the Small Business Regulatory Enforcement Fairness 
Act of 1996 states that, for each rule or group of related rules for 
which an agency is required to prepare a FRFA, the agency shall publish 
one or more guides to assist small entities in complying with the rule, 
and shall designate such publications as `small entity compliance 
guides.' The agency shall explain the actions a small entity is 
required to take to comply with a rule or group of rules. As part of 
this rulemaking process, NMFS prepared a fishery bulletin, which also 
serves as a small entity compliance guide. The fishery bulletin will be 
sent to all interested parties.

List of Subjects in 50 CFR Part 622

    Annual catch limits, Annual catch targets, Fisheries, Fishing, 
Gulf, Recreational, Red grouper, Reef fish, Quotas.

    Dated: October 5, 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 622 is amended 
as follows:

PART 622--FISHERIES OF THE CARIBBEAN, GULF OF MEXICO, AND SOUTH 
ATLANTIC

0
1. The authority citation for part 622 continues to read as follows:

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


[[Page 70369]]



0
2. In Sec.  622.39, revise paragraph (a)(1)(iii)(C) to read as follows:


Sec.  622.39  Quotas.

* * * * *
    (a) * * *
    (1) * * *
    (iii) * * *
    (C) Red grouper--7,780,000 lb (3,528,949 kg).
* * * * *

0
3. In Sec.  622.41, revise the last sentence of paragraph (e)(1) and 
paragraph (e)(2)(iv) to read as follows:


Sec.  622.41  Annual catch limits (ACLs), annual catch targets (ACTs), 
and accountability measures (AMs).

* * * * *
    (e) * * *
    (1) * * * The applicable commercial ACL for red grouper, in gutted 
weight, is 8,190,000 lb (3,714,922 kg).
    (2) * * *
    (iv) The recreational ACL for red grouper, in gutted weight, is 
2,580,000 lb (1,170,268 kg). The recreational ACT for red grouper, in 
gutted weight, is 2,370,000 lb (1,075,014 kg).
* * * * *
[FR Doc. 2016-24587 Filed 10-11-16; 8:45 am]
 BILLING CODE 3510-22-P



                                                                 Federal Register / Vol. 81, No. 197 / Wednesday, October 12, 2016 / Rules and Regulations                                       70365

                                                DEPARTMENT OF COMMERCE                                   48728). The proposed rule and the                     distributed to the applicable IFQ
                                                                                                         framework action outline the rationale                participants on January 1, 2017, the start
                                                National Oceanic and Atmospheric                         for the actions contained in this final               of the next fishing year. The increase in
                                                Administration                                           rule. A summary of the management                     the recreational ACL is expected to
                                                                                                         measures described in the framework                   allow the recreational sector to remain
                                                50 CFR Part 622                                          action and implemented by this final                  open for the entire fishing year by
                                                [Docket No. 160613514–6908–02]
                                                                                                         rule is provided below.                               avoiding the implementation of an in-
                                                                                                                                                               season accountability measure.
                                                RIN 0648–BG12                                            Management Measures Contained in
                                                                                                         This Final Rule                                       Comments and Responses
                                                Fisheries of the Caribbean, Gulf of                         This final rule revises the commercial                A total of 28 comment submissions
                                                Mexico, and South Atlantic; Reef Fish                    quota (which is equivalent to the                     were received on the framework action
                                                Fishery of the Gulf of Mexico; Red                       commercial ACT) and ACL, and the                      and the proposed rule from commercial
                                                Grouper Management Measures                              recreational ACT and ACL for Gulf red                 and recreational fishers, college
                                                                                                         grouper. All weights described in this                students, and a sport-fishing club. Ten
                                                AGENCY:  National Marine Fisheries
                                                                                                         final rule are in gutted weight.                      of the comments received were against
                                                Service (NMFS), National Oceanic and
                                                                                                                                                               increasing the red grouper allowable
                                                Atmospheric Administration (NOAA),                       Commercial and Recreational Catch
                                                                                                                                                               harvest while six were in favor of the
                                                Commerce.                                                Limits
                                                                                                                                                               increase. Five commenters stated that
                                                ACTION: Final rule.                                         The current red grouper commercial                 the recreational quota should be
                                                                                                         quota and ACL, and recreational ACT                   increased but that the commercial quota
                                                SUMMARY:   NMFS issues regulations to                    and ACL were implemented through a
                                                implement management measures                                                                                  should not be increased. Seven
                                                                                                         2011 regulatory amendment (79 FR                      additional comments were submitted
                                                described in a framework action to the                   67618, November 2, 2011) and                          that were not related to the proposed
                                                Fishery Management Plan for the Reef                     Amendment 32 to the FMP (77 FR 6988,                  rule or the framework action; several of
                                                Fish Resources of the Gulf of Mexico                     February 10, 2012). The current                       these questioned the rationale for the
                                                (FMP), as prepared by the Gulf of                        commercial quota is 5,720,000 lb                      allocation between the commercial and
                                                Mexico Fishery Management Council                        (2,590,000 kg) and the commercial ACL                 recreational sectors. Specific comments
                                                (Council). This final rule revises the                   is 6,030,000 lb (2,735,000 kg). The                   related to the actions in the framework
                                                commercial quota and annual catch                        current recreational ACT is 1,730,000 lb              action and the proposed rule as well as
                                                limit (ACL) and the recreational annual                  (785,000 kg) and the recreational ACL is              NMFS’ respective responses, are
                                                catch target (ACT) and ACL for red                       1,900,000 lb (862,000 kg).                            summarized below.
                                                grouper in the Gulf of Mexico (Gulf)                        For Gulf red grouper, 76 percent of                   Comment 1: There is no need to raise
                                                exclusive economic zone (EEZ). The                       the stock ACL is allocated to the                     catch levels because setting a one-fish
                                                purpose of this final rule is to adjust the              commercial sector and 24 percent of the               recreational bag limit would allow the
                                                allowable red grouper harvest to achieve                 ACL is allocated to the recreational                  recreational season to remain open all
                                                optimum yield (OY) based upon an                         sector. The commercial quota is set by                year.
                                                updated Gulf red grouper stock                           applying a 5-percent buffer to the                       Response: The Council did not
                                                assessment.                                              commercial ACL to account for                         consider reducing the recreational bag
                                                DATES:  This final rule is effective                     management uncertainty and the                        limit to one fish in this framework
                                                October 12, 2016.                                        recreational ACT is set by applying an                action because the increase in the
                                                ADDRESSES: Electronic copies of the                      8-percent buffer to the recreational ACL              recreational ACL is expected to allow
                                                framework action, which includes an                      to account for management uncertainty.                the recreational sector to remain open
                                                environmental assessment, a regulatory                      This final rule increases catch levels             the entire fishing year. The Council
                                                impact review, and a Regulatory                          for both sectors. The commercial quota                determined and NMFS agrees that this
                                                Flexibility Act (RFA) analysis may be                    will be revised to 7,780,000 lb                       increase in the recreational ACL is
                                                obtained from the Southeast Regional                     (3,528,949 kg) and the commercial ACL                 supported by the results of the most
                                                Office Web site at http://                               will be revised to 8,190,000 lb                       recent stock assessment.
                                                sero.nmfs.noaa.gov/sustainable_                          (3,714,922 kg). Additionally, the                        Comment 2: Only the recreational
                                                fisheries/gulf_fisheries/reef_fish/2016/                 recreational ACT will be revised to                   quota should be increased, not the
                                                red_grouper_allowable_harvest/                           2,370,000 lb (1,075,014 kg) and the                   commercial quota.
                                                index.html.                                              recreational ACL to 2,580,000 lb                         Response: NMFS disagrees that only
                                                                                                         (1,170,268 kg).                                       the recreational quota should be
                                                FOR FURTHER INFORMATION CONTACT:                            The revised commercial quota in this               increased through this final rule. Red
                                                Richard Malinowski, Southeast Regional                   final rule will provide the commercial                grouper are managed as an overall Gulf
                                                Office, NMFS, telephone: 727–824–                        sector additional harvest opportunities               stock and any change to the total
                                                5305, email: rich.malinowski@noaa.gov.                   as a result of the increased commercial               allowable catch is allocated to both
                                                SUPPLEMENTARY INFORMATION: The Gulf                      quota that will be distributed upon the               sectors consistent with the allocations
                                                reef fish fishery, which includes red                    effective date of this final rule in the              established in Amendment 30B to the
                                                grouper, is managed under the FMP.                       2016 fishing year. NMFS notes that the                FMP (72 FR 17603, April 16, 2009). The
                                                The FMP was prepared by the Council                      increase to the red grouper commercial                Council did not consider and this final
                                                and is implemented through regulations                   multi-use allocation, that is a function              rule does not alter current sector
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                                                at 50 CFR part 622 under the authority                   of the groupers and tilefish individual               allocations. Therefore, both the
                                                of the Magnuson-Stevens Fishery                          fish quota (IFQ) program, will not be                 commercial and recreational sectors will
                                                Conservation and Management Act                          distributed in the 2016 fishing year to               have their respective catch limits
                                                (Magnuson-Stevens Act).                                  ensure that the gag commercial ACL is                 increased in this final rule.
                                                   On July 26, 2016, NMFS published a                    not exceeded as a result of that increase.               Comment 3: The combination of red
                                                proposed rule for the framework action                   The increase to the red grouper                       grouper mortality from red tide events
                                                and requested public comment (81 FR                      commercial multi-use allocation will be               and the associated destruction of red


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                                                70366            Federal Register / Vol. 81, No. 197 / Wednesday, October 12, 2016 / Rules and Regulations

                                                grouper habitat is detrimental to the                    the recreational season to remain open                final rule and the preamble to this final
                                                species. When this mortality and habitat                 through the end of the 2016 fishing year.             rule provide a statement of the need for
                                                loss is considered in addition to the                       Comment 5: The commercial IFQ                      and objectives of this rule. No
                                                uncertainty of the actual recreational                   program for groupers and tilefish should              duplicative, overlapping, or conflicting
                                                landings, the Council and NMFS should                    land 95 percent of the red grouper                    Federal rules have been identified. In
                                                take a precautionary approach to any                     commercial quota for a minimum of 3                   addition, no new reporting, record-
                                                increase of the ACL.                                     to 5 years prior to any red grouper                   keeping, or other compliance
                                                   Response: NMFS and the Council                        commercial quota increase.                            requirements are introduced by this
                                                considered natural mortality and any                        Response: NMFS disagrees. There are                final rule.
                                                relevant landings data uncertainty when                  a variety of potential reasons why 100                   In compliance with section 604 of the
                                                deciding what catch levels were                          percent of the red grouper commercial                 RFA, NMFS prepared a final regulatory
                                                appropriate. First, the Council’s                        quota has not been harvested since the                flexibility analysis (FRFA) for this final
                                                Integrated Ecosystem Assessment Group                    implementation of the IFQ program,                    rule. The FRFA follows.
                                                (IEA) considered the linkage of natural                  including, but not limited to, the current               Public comments relating to socio-
                                                mortality and recruitment to ecosystem                   35 fathom longline closure that occurs                economic implications and potential
                                                processes including predation, red tide                  annually from June through August, the                impacts on small businesses are
                                                events, and oceanographic conditions to                  moratorium on the issuance of new                     addressed in the response to Comment
                                                produce estimates of natural mortality                   longline endorsements to the Federal                  5 in the Comments and Responses
                                                for different life stages of red grouper                 reef fish permit, inactive IFQ accounts,              section of this final rule. No changes to
                                                that were incorporated into SEDAR 42.                    and low catch and effort rates.                       this final rule were made in response to
                                                Based on the results of SEDAR 42, the                    Additionally, individual commercial                   public comments. No comments were
                                                Council’s Science and Statistical                        vessels strive to maximize profits across             received from the Office of Advocacy for
                                                Committee (SSC) provided two                             a diverse range of reef fish and other                the Small Business Administration.
                                                                                                         Gulf species and their harvest strategies,               NMFS agrees that the Council’s
                                                alternative overfishing limit (OFL) and
                                                                                                         both at the trip level and throughout the             choice of preferred alternatives will best
                                                acceptable biological catch (ABC)
                                                                                                         fishing year, may result in some red                  achieve the Council’s objectives for the
                                                recommendations: As a declining yield                                                                          framework action while minimizing, to
                                                stream and as a constant catch during                    grouper commercial quota not being
                                                                                                         harvested during a fishing year. Based                the extent practicable, the adverse
                                                this period. The Council chose the                                                                             effects on fishers, support industries,
                                                constant catch OFL and ABC, 14.16                        upon historical landings, NMFS does
                                                                                                         not expect negative effects on the red                and associated communities.
                                                million lb (6.42 million kg), gutted                                                                              NMFS expects this final rule to
                                                weight, and 13.92 million lb (6.31                       grouper stock from increased fishing
                                                                                                         pressure or ex-vessel market prices to                directly affect all commercial vessels
                                                million kg), gutted weight, respectively,                                                                      that harvest red grouper under the FMP.
                                                but chose a more conservative approach                   change significantly as a result of this
                                                                                                                                                                  Only recreational anglers, who may
                                                in setting the catch levels, basing them                 final rule. Additional information on the
                                                                                                                                                               fish from shore, man-made structures,
                                                on the minimum ABC of 10.77 million                      potential effects to commercial fishing
                                                                                                                                                               private, rental, or charter vessels, and
                                                lb (4.89 million kg), gutted weight, from                vessels from this action may be found in
                                                                                                                                                               headboats, are allowed a recreational
                                                the declining yield stream. Second, the                  the Classification Section of this final
                                                                                                                                                               bag or possession limit of reef fish
                                                uncertainty in recreational landings was                 rule.
                                                                                                                                                               species in the Gulf. Captains or crew
                                                accounted for by the Council by                          Other Measures Contained in the                       members on federally-permitted charter
                                                applying the ACL/ACT control rule,                       Framework Action Not in This Final                    vessels or headboats (for-hire vessels)
                                                which resulted in the recreational ACT                   Rule                                                  cannot harvest or possess Gulf red
                                                being set 8 percent below the                                                                                  grouper or other reef fish under the
                                                recreational sector ACL. For the                           In addition to the measures contained
                                                                                                         in this final rule, this framework action             recreational bag limits. Therefore, only
                                                commercial sector, the quota is set 5                                                                          recreational anglers would be directly
                                                percent below the ACL to account for                     also revises the Gulf red grouper OFL
                                                                                                         and ABC based upon the results of                     affected by the changes to the red
                                                the management uncertainty associated                                                                          grouper recreational ACL and ACT.
                                                with the multi-use provisions in the IFQ                 SEDAR 42.
                                                                                                           The stock OFL in this framework                     Recreational anglers, however, are not
                                                program.                                                                                                       considered to be small entities under
                                                                                                         action is increased to 14,160,000 lb
                                                   Comment 4: The increase of the red                    (6,422,868 kg) from the current stock                 the RFA, so the economic effects of this
                                                grouper ABC and total ACL should not                     OFL of 8,100,000 lb (3,674,098 kg). The               final rule on these anglers are outside
                                                be approved by NMFS because the bag                      ABC in this framework action is also                  the scope of the RFA.
                                                limit was recently reduced from four to                  increased from the current red grouper                   For-hire vessels are entities that sell
                                                two fish, which should allow the                         stock ABC of 7,930,000 lb (3,596,987 kg)              fishing services to recreational anglers.
                                                recreational fishing season the remain                   to an ABC of 13,920,000 lb (6,314,006                 The changes to the recreational red
                                                open throughout the fishing year.                        kg).                                                  grouper ACL and ACT would not
                                                   Response: NMFS disagrees that the                                                                           directly alter the services sold by these
                                                two fish bag limit will allow the                        Classification                                        vessels. Any change in demand for these
                                                recreational season to remain open for                     The Regional Administrator,                         fishing services and associated
                                                the entire fishing year. Although the                    Southeast Region, NMFS, has                           economic effects as a result of this final
                                                recreational bag limit reduction from                    determined that this final rule is                    rule would be a consequence of a
                                                four to two fish was implemented in the                  consistent with the framework action,                 behavioral change by anglers, secondary
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                                                spring of 2015, recreational fishing for                 the FMP, the Magnuson-Stevens Act,                    to any direct effect on anglers and,
                                                red grouper closed on October 8, 2015.                   and other applicable laws.                            therefore, an indirect effect of this final
                                                Further, as explained in the framework                     This final rule has been determined to              rule. Because the only effects on for-hire
                                                action, both the two-fish bag limit and                  be not significant for purposes of                    vessels would be indirect, they fall
                                                the increase in the recreational catch                   Executive Order 12866.                                outside the scope of the RFA.
                                                level resulting from the implementation                    The Magnuson-Stevens Act provides                      As of March 7, 2016, there were 852
                                                of this final rule are necessary to allow                the statutory basis for this rule. The                valid or renewable Federal Gulf


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                                                                 Federal Register / Vol. 81, No. 197 / Wednesday, October 12, 2016 / Rules and Regulations                                        70367

                                                commercial reef fish permits. Each of                    this framework action. No other small                 overall increase in allocation transfer
                                                these permits is associated with an                      entities that would be directly affected              proceeds and vice versa. With respect to
                                                individual vessel. To harvest red                        by this final rule have been identified.              IFQ share value, if investors believe that
                                                grouper, a vessel permit must be linked                     Of the 852 commercial vessels eligible             the discounted future revenue stream
                                                to an IFQ account and possess sufficient                 to fish for the species managed under                 associated with shares is greater under
                                                allocation (pounds of fish) for this                     the FMP, 397 are expected to be affected              the new commercial quota than under
                                                species. IFQ accounts can be opened                      by this final rule (approximately 47                  the current quota, then IFQ share prices
                                                and valid Federal commercial reef fish                   percent). Because all entities expected               will likely increase, otherwise they will
                                                permits can be linked to IFQ accounts                    to be affected by this final rule are small           remain the same or decrease. IFQ
                                                at any time during the year. Allocation                  entities, NMFS has determined that this               account holders that routinely purchase
                                                is distributed at the beginning of each                  final rule would affect a substantial                 red grouper allocation will likely benefit
                                                fishing year based on the shares held by                 number of small entities. Moreover, the               from the wider availability and cheaper
                                                each IFQ participant. Eligible vessels                   issue of disproportionate effects on                  price of allocation. Again, these cost
                                                can also purchase red grouper allocation                 small versus large entities does not arise            savings may be offset by changes in ex-
                                                or shares from other IFQ participants.                   in the present case.                                  vessel prices. Additionally, those fishers
                                                On average (2010 through 2014), 397                         Using the Council’s preferred                      that have already purchased annual
                                                commercial vessels landed red grouper                    alternative, this final rule will set the             allocation for use later in 2016 will
                                                each year. Their average annual vessel-                  commercial ACL for red grouper at a                   incur supplementary costs because they
                                                level revenue for 2010 through 2014 was                  constant catch value of 8,190,000 lb                  will have likely overpaid for the
                                                approximately $99,000 (2015 dollars), of                 (3,714,922 kg). The commercial quota                  allocation. Finally, the increased
                                                which $41,000 was from red grouper.                      will be set at 95 percent of the                      commercial quota could result in
                                                   The maximum annual revenue                            commercial ACL. This will represent a                 increased congestion of fishing grounds,
                                                reported by a single one of these vessels                2,060,000 lb (934,400 kg) (36 percent)                which in turn, could have a minor
                                                in 2014 was approximately $1.5 million                   increase in the commercial quota                      impact on harvesting costs.
                                                (2015 dollars).                                          relative to the status quo. The increased                The following discussion describes
                                                   On December 29, 2015, NMFS issued                     quota is expected to result in an                     the alternatives that were not selected as
                                                a final rule establishing a small business               increase in commercial red grouper                    preferred by the Council.
                                                size standard of $11 million in annual                   harvests, although this increase will be                 Four alternatives, including the
                                                gross receipts for all businesses                        constrained by industry capacity,                     preferred alternative discussed above,
                                                primarily engaged in the commercial                      individual harvesters’ profit                         were considered for modifying the red
                                                fishing industry (NAICS 11411) for RFA                   maximization strategies, and current                  grouper OFL, ABC, and commercial and
                                                compliance purposes only (80 FR                          Federal management restrictions.                      recreational sector catch levels. The first
                                                81194, December 29, 2015). Under this                    Economic benefits may accrue to the                   alternative, the no action alternative,
                                                rule, a business primarily engaged in                    commercial sector as a result of the                  would not be expected to affect current
                                                commercial fishing (NAICS code 11411)                    increased landings and availability of                commercial red grouper harvests. This
                                                is classified as a small business if it is               red grouper allocation; however, these                alternative was not selected because the
                                                independently owned and operated, is                     would be tempered by potential                        OFL and ABC would not be based on
                                                not dominant in its field of operation                   decreases in ex-vessel and IFQ                        the best scientific information available
                                                (including its affiliates), and has                      allocation prices. It is not possible to              and economic benefits derived from
                                                combined annual receipts not in excess                   quantify these economic effects with                  increased commercial and recreational
                                                of $11 million for all its affiliated                    available data. For 2016, it is unlikely              harvests would be forgone, possibly
                                                operations worldwide. The $11 million                    that the Gulf reef fish commercial fleet              preventing the achievement of OY.
                                                standard became effective on July 1,                     will be able to harvest all of the                       The second alternative would adopt
                                                2016, and is to be used in place of the                  additional red grouper amounts made                   the OFL and ABC schedule
                                                U.S. Small Business Administration’s                     available by the ACL and ACT increases                recommended by the SSC for 2016
                                                (SBA) current standards of $20.5                         in this final rule because this framework             through 2020. Using the current sector
                                                million, $5.5 million, and $7.5 million                  action will likely not be effective until             allocation, the commercial and
                                                for the finfish (NAICS 114111), shellfish                late October 2016. In subsequent fishing              recreational ACLs would be set at 76
                                                (NAICS 114112), and other marine                         years, commercial fishermen may or                    percent and 24 percent of the ABC,
                                                fishing (NAICS 114119) sectors of the                    may not be able to scale-up their                     respectively. Under the second
                                                U.S. commercial fishing industry in all                  operations to harvest the full                        alternative, the commercial quota would
                                                NMFS rules subject to the RFA after July                 commercial quota. Price effects in both               be set at 95 percent of the commercial
                                                1, 2016. Id. at 81194.                                   the ex-vessel and allocation transfer                 ACL and the recreational ACT would be
                                                   Pursuant to the RFA, and prior to July                markets will depend on the price                      set at 92 percent of the recreational
                                                1, 2016, an initial regulatory flexibility               elasticity of demand for red grouper and              ACL. This alternative would result in a
                                                analysis was developed for this                          red grouper allocation, respectively.                 154 percent increase in the commercial
                                                framework action using SBA’s size                        Assuming the price elasticity of demand               quota in 2016, followed by successively
                                                standards. NMFS has reviewed the                         (percentage change in quantity                        lower quotas through 2020. In 2020 and
                                                analyses prepared for this framework                     demanded divided by the percentage                    subsequent fishing years, the red
                                                action with respect to the new size                      change in price) for red grouper in the               grouper commercial ACL and quota
                                                standard. All of the entities directly                   ex-vessel market is greater than one (i.e.,           would be equivalent to the constant
                                                regulated by this framework action are                   the percentage change in quantity                     catch values specified in the preferred
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                                                commercial fishing businesses and were                   demanded is greater than the percentage               alternative. Economic effects to
                                                considered small under the SBA’s size                    change in price), then an increase in                 commercial vessels under this
                                                standards, and they all would continue                   landings will result in an increase in ex-            alternative would depend on the
                                                to be considered small under the new                     vessel revenue and vice versa.                        capacity of the fleet, individual
                                                NMFS standard. Thus, NMFS has                            Assuming the price elasticity of demand               harvesters’ profit maximization
                                                determined that the new size standard                    for red grouper allocation is greater than            strategies, current Federal management
                                                does not affect analyses prepared for                    1, IFQ shareholders will experience an                restrictions, and the effects of the quota


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                                                70368            Federal Register / Vol. 81, No. 197 / Wednesday, October 12, 2016 / Rules and Regulations

                                                increase on ex-vessel, IFQ allocation,                   under this alternative would depend on                The increase in the recreational ACL is
                                                and IFQ share prices. Given the very                     the capacity of the fleet, individual                 expected to allow the recreational sector
                                                substantial size of the quota increases                  harvesters’ profit maximization                       to remain open for the entire 2016
                                                under this alternative, the 35-fathom                    strategies, current Federal management                fishing year by avoiding the
                                                (64-m) bottom longline closure during                    restrictions, and the effects of the quota            implementation of an in-season
                                                June through August each year, and the                   increase on ex-vessel and IFQ allocation              accountability measure as a result of the
                                                lack of issuance of new eastern Gulf reef                and share prices. As with the second                  recreational ACL being reached. For
                                                fish bottom longline endorsements, it is                 alternative, given the very substantial               these same reasons, NMFS finds good
                                                not likely that the commercial fleet                     size of the quota increase under this                 cause under 5 U.S.C. 553(d)(3) to waive
                                                would be able to harvest all of its quota                alternative, the 35-fathom (64-m) bottom              the delay in the effective date of this
                                                each year. Therefore, although positive                  longline closure during June through                  final rule. Delaying implementation of
                                                direct economic benefits may result                      August each year, and the lack of                     these measures for red grouper could
                                                from additional red grouper harvests,                    issuance of new eastern Gulf reef fish                result in a recreational fishing closure
                                                increased availability of allocation, and                bottom longline endorsements, it is not               and will provide less time for
                                                potential increases in IFQ share value,                  likely that the commercial fleet would                commercial fishermen to harvest the
                                                they would be constrained by the                         be able to harvest all of its quota each              catch level increase before the fishing
                                                industry’s capacity and tempered by                      year. Therefore, although positive direct             year’s end. Therefore, a delay in
                                                negative price effects. It is possible that              economic benefits may result from                     effectiveness would diminish the social
                                                negative price effects from increased                    additional red grouper harvests,                      and economic benefits for reef fish
                                                allocation and landings could actually                   increased availability of allocation, and             fishermen this final rule provides,
                                                result in a decrease in allocation transfer              potential increases in IFQ share value,               which is part of the purpose of the rule
                                                proceeds and ex-vessel revenues,                         they would be constrained by the                      itself. Finally, this final rule creates no
                                                respectively. As for IFQ share prices,                   industry’s capacity and tempered by                   new duties, obligations, or requirements
                                                NMFS expects they would fluctuate in                     negative price effects. As discussed                  for the regulated community that would
                                                the short-term as allocation and ex-                     earlier, these negative price effects                 necessitate delaying this rule’s
                                                vessel markets re-stabilize and investors                could outweigh the economic benefits of               effectiveness to allow them to come into
                                                speculate on future market and stock                     increased allocation and landings.                    compliance with it. Thus, this final rule
                                                conditions, as well as future Federal                    Additionally, IFQ share prices would                  is effective upon publication.
                                                management measures. Finally, the                        likely fluctuate in the short-term. There                Section 212 of the Small Business
                                                increased commercial quotas could                        would also be an increased potential for              Regulatory Enforcement Fairness Act of
                                                result in increased congestion of fishing                fishing congestion and, in turn,                      1996 states that, for each rule or group
                                                grounds, which in turn could have a                      increased harvesting costs. Because the               of related rules for which an agency is
                                                minor impact on harvesting costs. This                   commercial quota would be less than                   required to prepare a FRFA, the agency
                                                alternative was not selected because the                 under the second alternative but greater              shall publish one or more guides to
                                                Council preferred to take a more                         than under the preferred alternative, it              assist small entities in complying with
                                                conservative approach to setting the                     would be expected to fall in between                  the rule, and shall designate such
                                                OFL, ABC, and commercial and                             those alternatives in terms of potential              publications as ‘small entity compliance
                                                recreational catch levels in order to                    landings and likelihood of negative                   guides.’ The agency shall explain the
                                                account for scientific uncertainty in the                price effects for 2016 and 2017. In the               actions a small entity is required to take
                                                stock assessment, specifically the below                 long-term, this alternative would result              to comply with a rule or group of rules.
                                                average red grouper recruitment in the                   in the greatest increase in the                       As part of this rulemaking process,
                                                Gulf since 2005, and to reduce the                       commercial quota and greatest potential               NMFS prepared a fishery bulletin,
                                                chances of negative economic effects to                  landings. Because there is insufficient               which also serves as a small entity
                                                commercial vessels from a large increase                 data to estimate the total expected                   compliance guide. The fishery bulletin
                                                in the red grouper commercial quota.                     change in landings and revenue, it is not             will be sent to all interested parties.
                                                   The third alternative would                           possible to definitively state which
                                                                                                         alternative would be expected to result               List of Subjects in 50 CFR Part 622
                                                implement the constant catch OFL and
                                                ABC recommended by the SSC. Using                        in the greatest economic benefits to the                Annual catch limits, Annual catch
                                                the current sector allocation, the                       commercial sector. This alternative was               targets, Fisheries, Fishing, Gulf,
                                                commercial and recreational ACLs                         not selected for the same reasons the                 Recreational, Red grouper, Reef fish,
                                                would be set at 76 percent and 24                        Council did not select the second                     Quotas.
                                                percent of the ABC, respectively. The                    alternative.
                                                                                                                                                                 Dated: October 5, 2016.
                                                commercial quota would be set at 95                         This final rule is exempt from the
                                                                                                                                                               Samuel D. Rauch III,
                                                percent of the commercial ACL and the                    requirement to delay the effectiveness of
                                                                                                                                                               Deputy Assistant Administrator for
                                                recreational ACT would be set at 92                      a final rule by 30 days after publication
                                                                                                                                                               Regulatory Programs, National Marine
                                                percent of the recreational ACL. This                    in the Federal Register, under 5 U.S.C.               Fisheries Service.
                                                would represent a 76 percent increase in                 553(d)(1) because the measures
                                                the commercial quota from the current                    implemented by this final rule relieve                  For the reasons set out in the
                                                quota. This alternative would result in                  restrictions on the regulated community               preamble, 50 CFR part 622 is amended
                                                a greater commercial quota compared to                   as a result of increased catch levels for             as follows:
                                                the preferred alternative, but a lesser                  the commercial and recreational sectors.
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                                                quota compared to the second                             Specifically, the revised commercial                  PART 622—FISHERIES OF THE
                                                alternative through 2017. After 2017, the                quota in this final rule will provide the             CARIBBEAN, GULF OF MEXICO, AND
                                                constant catch commercial ACL and                        commercial sector additional harvest                  SOUTH ATLANTIC
                                                quota under this alternative would be                    opportunities as a result of the increased
                                                greater than both the preferred                          commercial quota that will be                         ■ 1. The authority citation for part 622
                                                alternative and the second alternative.                  distributed upon the effective date of                continues to read as follows:
                                                Economic effects to commercial vessels                   this final rule in the 2016 fishing year.                 Authority: 16 U.S.C. 1801 et seq.



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                                                                 Federal Register / Vol. 81, No. 197 / Wednesday, October 12, 2016 / Rules and Regulations                                       70369

                                                ■ 2. In § 622.39, revise paragraph                       determination criteria regarding                      14, 2015, NMFS published an inseason
                                                (a)(1)(iii)(C) to read as follows:                       inseason adjustments and applies to                   action transferring 24.3 mt of BFT quota
                                                                                                         Atlantic tunas General category                       from the December 2016 subquota to the
                                                § 622.39   Quotas.                                       (commercial) permitted vessels and                    January 2016 subquota period (80 FR
                                                *       *    *     *     *                               Highly Migratory Species (HMS)                        77264). To date this year, NMFS has
                                                   (a) * * *                                             Charter/Headboat category permitted                   published two actions that have
                                                   (1) * * *                                             vessels when fishing commercially for                 adjusted and/or distributed available
                                                   (iii) * * *                                           BFT.                                                  2016 Reserve category quota to other
                                                   (C) Red grouper—7,780,000 lb                                                                                quota categories (81 FR 19, January 4,
                                                (3,528,949 kg).                                          DATES: The quota transfer is effective
                                                                                                         October 6, 2016 through December 31,                  2016; and 81 FR 60286, September 1,
                                                *       *    *     *     *                                                                                     2016). The Reserve category balance
                                                                                                         2016. The general category retention
                                                ■ 3. In § 622.41, revise the last sentence               limit adjustment is effective October 9,              currently is 200.58 mt.
                                                of paragraph (e)(1) and paragraph                        2016 through December 31, 2016.                          The 2016 General category fishery
                                                (e)(2)(iv) to read as follows:                                                                                 was open January 1, 2016, through
                                                                                                         FOR FURTHER INFORMATION CONTACT:
                                                                                                                                                               March 31, 2016, reopened June 1, 2016,
                                                § 622.41 Annual catch limits (ACLs),                     Sarah McLaughlin or Brad McHale,
                                                                                                                                                               and remains open until December 31,
                                                annual catch targets (ACTs), and                         978–281–9260.
                                                                                                                                                               2016, or until the General category
                                                accountability measures (AMs).                           SUPPLEMENTARY INFORMATION:                            quota is reached, whichever comes first.
                                                *      *    *     *    *                                 Regulations implemented under the
                                                   (e) * * *                                             authority of the Atlantic Tunas                       Quota Transfer
                                                   (1) * * * The applicable commercial                   Convention Act (ATCA; 16 U.S.C. 971 et                   Under § 635.27(a)(9), NMFS has the
                                                ACL for red grouper, in gutted weight,                   seq.) and the Magnuson-Stevens Fishery                authority to transfer quota among
                                                is 8,190,000 lb (3,714,922 kg).                          Conservation and Management Act                       fishing categories or subcategories, after
                                                   (2) * * *                                             (Magnuson-Stevens Act; 16 U.S.C. 1801                 considering 14 determination criteria
                                                   (iv) The recreational ACL for red                     et seq.) governing the harvest of BFT by              provided under § 635.27(a)(8), including
                                                grouper, in gutted weight, is 2,580,000                  persons and vessels subject to U.S.                   five new criteria added in Amendment
                                                lb (1,170,268 kg). The recreational ACT                  jurisdiction are found at 50 CFR part                 7.
                                                for red grouper, in gutted weight, is                    635. Section 635.27 subdivides the U.S.                  NMFS has considered all of the
                                                2,370,000 lb (1,075,014 kg).                             BFT quota recommended by the                          relevant determination criteria and their
                                                *      *    *     *    *                                 International Commission for the                      applicability to this inseason quota
                                                [FR Doc. 2016–24587 Filed 10–11–16; 8:45 am]             Conservation of Atlantic Tunas (ICCAT)                transfer and change in retention limit in
                                                BILLING CODE 3510–22–P                                   among the various domestic fishing                    the General category fishery. The
                                                                                                         categories, per the allocations                       criteria and their application are
                                                                                                         established in the 2006 Consolidated                  discussed below.
                                                DEPARTMENT OF COMMERCE                                   Highly Migratory Species Fishery
                                                                                                         Management Plan (2006 Consolidated                    Transfer of 125 mt From the Reserve
                                                National Oceanic and Atmospheric                         HMS FMP) (71 FR 58058, October 2,                     Category to the General Category
                                                Administration                                           2006), as amended by Amendment 7 to                      For the inseason quota transfer, NMFS
                                                                                                         the 2006 Consolidated HMS FMP                         considered the usefulness of
                                                50 CFR Part 635                                          (Amendment 7) (79 FR 71510, December                  information obtained from catches in
                                                [Docket No. 150121066–5717–02]                           2, 2014). NMFS is required under ATCA                 the particular category for biological
                                                                                                         and the Magnuson-Stevens Act to                       sampling and monitoring of the status of
                                                RIN 0648–XE930                                           provide U.S. fishing vessels with a                   the stock (§ 635.27(a)(8)(i)), biological
                                                                                                         reasonable opportunity to harvest the                 samples collected from BFT landed by
                                                Atlantic Highly Migratory Species;
                                                                                                         ICCAT-recommended quota.                              General category fishermen and
                                                Atlantic Bluefin Tuna Fisheries                             The base quota for the General                     provided by tuna dealers provide NMFS
                                                AGENCY:   National Marine Fisheries                      category is 466.7 mt. See § 635.27(a).                with valuable parts and data for ongoing
                                                Service (NMFS), National Oceanic and                     Each of the General category time                     scientific studies of BFT age and
                                                Atmospheric Administration (NOAA),                       periods (January, June through August,                growth, migration, and reproductive
                                                Commerce.                                                September, October through November,                  status. Additional opportunity to land
                                                ACTION: Temporary rule; inseason                         and December) is allocated a portion of               BFT in the General Category would
                                                General category bluefin tuna quota                      the annual General category quota.                    support the continued collection of a
                                                transfer and retention limit adjustment.                 Although it is called the ‘‘January’’                 broad range of data for these studies and
                                                                                                         subquota, the regulations allow the                   for stock monitoring purposes.
                                                SUMMARY:   NMFS is transferring 125                      General category fishery under this                      NMFS also considered the catches of
                                                metric tons (mt) of Atlantic bluefin tuna                quota to continue until the subquota is               the General category quota to date and
                                                (BFT) quota from the Reserve category                    reached or March 31, whichever comes                  the likelihood of closure of that segment
                                                to the General category for the                          first. Based on the General category base             of the fishery if no adjustment is made
                                                remainder of the 2016 fishing year. This                 quota of 466.7 mt, the subquotas for                  (§ 635.27(a)(8)(ii)). As of October 5,
                                                transfer results in an adjusted 2016                     each time period are as follows: 24.7 mt              2016, the General category has landed
                                                General category quota of 591.7 mt.                      for January; 233.3 mt for June through                all 466.7 mt of its 2016 quota. Without
                                                NMFS also is adjusting the Atlantic                      August; 123.7 mt for September; 60.7 mt               a quota transfer, NMFS would have to
mstockstill on DSK3G9T082PROD with RULES




                                                tunas General category BFT daily                         for October through November; and 24.3                close the 2016 General category fishery
                                                retention limit from five large medium                   mt for December. Any unused General                   for the remainder of the year. Regarding
                                                or giant BFT per vessel per day/trip to                  category quota rolls forward within the               the projected ability of the vessels
                                                four large medium or giant BFT per                       fishing year, which coincides with the                fishing under the particular category
                                                vessel per day/trip for the remainder of                 calendar year, from one time period to                quota (here, the General category) to
                                                the 2016 fishing year. This action is                    the next, and is available for use in                 harvest the additional amount of BFT
                                                based on consideration of the regulatory                 subsequent time periods. On December                  before the end of the fishing year


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Document Created: 2016-10-12 00:55:51
Document Modified: 2016-10-12 00:55:51
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionRules and Regulations
ActionFinal rule.
DatesThis final rule is effective October 12, 2016.
ContactRichard Malinowski, Southeast Regional Office, NMFS, telephone: 727-824-5305, email: [email protected]
FR Citation81 FR 70365 
RIN Number0648-BG12
CFR AssociatedAnnual Catch Limits; Annual Catch Targets; Fisheries; Fishing; Gulf; Recreational; Red Grouper; Reef Fish and Quotas

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