81_FR_93005 81 FR 92761 - Fisheries of the Northeastern United States; Amendment 18 to the Northeast Multispecies Fishery Management Plan

81 FR 92761 - Fisheries of the Northeastern United States; Amendment 18 to the Northeast Multispecies Fishery Management Plan

DEPARTMENT OF COMMERCE
National Oceanic and Atmospheric Administration

Federal Register Volume 81, Issue 244 (December 20, 2016)

Page Range92761-92769
FR Document2016-30356

We are proposing regulations to implement Amendment 18 to the Northeast Multispecies Fishery Management Plan. Amendment 18 was developed by the New England Fishery Management Council to promote fleet diversity in the groundfish fishery and enhance sector management. This action proposes to limit the number of permits and annual groundfish allocation that an entity could hold. This action also removes several effort restrictions to increase operational flexibility for limited access handgear vessels.

Federal Register, Volume 81 Issue 244 (Tuesday, December 20, 2016)
[Federal Register Volume 81, Number 244 (Tuesday, December 20, 2016)]
[Proposed Rules]
[Pages 92761-92769]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-30356]


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DEPARTMENT OF COMMERCE

National Oceanic and Atmospheric Administration

50 CFR Part 648

[Docket No. 150630567-6999-01]
RIN 0648-BF26


Fisheries of the Northeastern United States; Amendment 18 to the 
Northeast Multispecies Fishery Management Plan

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

ACTION: Proposed rule; request for comments.

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SUMMARY: We are proposing regulations to implement Amendment 18 to the 
Northeast Multispecies Fishery Management Plan. Amendment 18 was 
developed by the New England Fishery Management Council to promote 
fleet diversity in the groundfish fishery and enhance sector 
management. This action proposes to limit the number of permits and 
annual groundfish allocation that an entity could hold. This action 
also removes several effort restrictions to increase operational 
flexibility for limited access handgear vessels.

DATES: Comments must be received on or before February 3, 2017.

ADDRESSES: You may submit comments on this document, identified by 
NOAA-NMFS-2015-0143, by any of the following methods:
     Electronic Submission: Submit all electronic public 
comments via the Federal e-Rulemaking Portal. Go to 
www.regulations.gov/#!docketDetail;D=NOAA-NMFS-2015-0143, click the 
``Comment Now!'' icon, complete the required fields, and enter or 
attach your comments.
     Mail: Submit written comments to John K. Bullard, Regional 
Administrator, NMFS, Greater Atlantic Regional Fisheries Office, 55 
Great Republic Drive, Gloucester, MA 01930. Mark the outside of the 
envelope: ``Comments on Northeast Multispecies Amendment 18.''
    Instructions: Comments sent by any other method, to any other 
address or individual, or received after the end of the comment period, 
may not be considered by NMFS. All comments received are a part of the 
public record and will generally be posted for public viewing on 
www.regulations.gov without change. All personal identifying 
information (e.g., name, address, etc.), confidential business 
information, or otherwise sensitive information submitted voluntarily 
by the commenter may be publicly accessible. NMFS will accept anonymous 
comments (enter ``N/A'' in the required fields if you wish to remain 
anonymous). Attachments to electronic comments will be accepted in 
Microsoft Word, Excel, or Adobe PDF file formats only.
    Written comments regarding the burden-hour estimates or other 
aspects of the collection-of-information requirements contained in this 
proposed rule may be submitted to the Greater Atlantic Regional 
Fisheries Office and by email to [email protected] or fax to 
(202) 395-7285.
    Copies of Amendment 18, including its environmental impact 
statement, preliminary Regulatory Impact Review, and Initial Regulatory 
Flexibility Analysis (EIS/RIR/IRFA), are available from the New England 
Fishery Management Council, 50 Water Street, Newburyport, MA 01950. The 
EIS/RIR/IRFA is also accessible via the Internet at: 
www.greateratlantic.fisheries.noaa .gov.

FOR FURTHER INFORMATION CONTACT: William Whitmore, Fishery Policy 
Analyst, 978-281-9182.

SUPPLEMENTARY INFORMATION: 

Background

    Since the approval of Amendment 16 to the Northeast Multispecies 
Fishery Management Plan (FMP) and the expanded use of catch shares in 
the groundfish fishery, many industry members and stakeholders have 
become increasingly concerned about excessive

[[Page 92762]]

fleet consolidation and lack of diversity with regards to the 
composition of the fishing fleet. Amendment 18 was developed to address 
these concerns, primarily by limiting both the number of permits and 
allocation an individual or entity could hold (referred to as an entity 
from here on).
    Development of Amendment 18 began in 2011, with initial public 
scoping taking place between December 2011 and March 2012. 
Subsequently, the stock status for many groundfish stocks declined and 
the associated annual catch limits were significantly reduced. As a 
result, some groundfish fishermen were concerned that implementing an 
accumulation limit could be problematic if it reduced flexibility and 
prevented them from obtaining additional quota necessary to maintain 
viable fishing operations.
    However, many industry members and stakeholders remained concerned 
that excessive consolidation is a risk to the fishery. Several 
groundfish stocks, particularly Georges Bank haddock, redfish, and 
pollock, continue to grow and remain consistently under harvested. As 
other stocks rebuild and quotas increase, there may be further 
consolidation and decreased diversity if vessels are able to earn above 
market rates of return and have an opportunity to acquire more permits.
    Under the Magnuson-Stevens Fishery Conservation and Management Act 
(Magnuson-Stevens Act), we are required to publish proposed rules for 
comment after preliminarily determining whether they are consistent 
with applicable law. The Magnuson-Stevens Act permits us to approve, 
partially approve, or disapprove measures proposed by the Council based 
only on whether the measures are consistent with the fishery management 
plan, plan amendment, the Magnuson-Stevens Act and its National 
Standards, and other applicable law. Otherwise, we must defer to the 
Council's policy choices. We are seeking comment on the Council's 
proposed measures in Amendment 18 and whether they are consistent with 
the Northeast Multispecies FMP, the Magnuson-Stevens Act and its 
National Standards, and other applicable law.
    The primary purpose of this action is to limit the level of 
allocation that an entity may control to prevent excessive 
consolidation and retain fleet diversity.
    The Council identified four goals for Amendment 18:
    1. Promote a diverse groundfish fishery, including different gear 
types, vessel sizes, ownership patterns, geographic locations, and 
levels of participation through sectors and permit banks;
    2. Enhance sector management to effectively engage industry to 
achieve management goals and improve data quality;
    3. Promote resilience and stability of fishing businesses by 
encouraging diversification, quota utilization, and capital investment; 
and
    4. Prevent any individual(s), corporation(s), or other entity(ies) 
from acquiring or controlling excessive shares of the fishery access 
privileges.

Proposed Measures

    The goals and objectives of Amendment 18 are addressed through two 
mechanisms. First, this action proposes to establish accumulation 
limits on the number of groundfish permits and the amount of Potential 
Sector Contribution (PSC) that an entity may hold. PSC is the 
proportion of total landings of a particular stock associated with the 
landing history of a limited access permit. PSC also represents the 
share of allocation that an individual permit contributes to a sector. 
Second, this action proposes to remove several restrictions on limited 
access handgear vessels (Handgear A permitted vessels) to promote that 
small-boat fishery.

1. Accumulation Limits

Background
    The New England Fishery Management Council contracted Compass 
Lexecon, an economic consulting firm, to provide independent advice 
regarding the establishment of northeast multispecies permit 
accumulation limits. The Council tasked Compass Lexecon to determine 
whether any entity already holds an excessive share of permits, and if 
not, what an excessive share would be in the groundfish fishery. 
Compass Lexecon defined an excessive share as a share of quota that 
would allow a permit owner or sector to influence the prices of the 
fishery's output or the prices paid for leased quota to its advantage, 
which is called market power. Compass Lexecon's analyses did not find 
that market power is currently being exercised through the withholding 
of quota in any part of the groundfish fishery, or in the sales of fish 
or transfers of permits.
    Compass Lexecon recommended setting an excessive-share cap on the 
PSC conferred to a permit holder at 15.5 percent of the available PSC 
for any groundfish stock. Analyses suggested that this cap would 
prevent the accumulation of excessive shares, and that a lower limit 
was likely not necessary. The final report was completed in December 
2013, and was peer reviewed in June 2014 by three reviewers from the 
Center for Independent Experts and one independent reviewer. A 
variation of Compass Lexecon's recommendation is proposed in this 
action.
Accumulation Limit Guidelines
    Amendment 18 includes several general measures detailing how permit 
accumulation limits would be applied.
     Accumulation limits apply to individuals, permit banks, 
and other entities, including groundfish sectors, at the individual 
permit and PSC level.
     Accumulation limits do not apply to the amount of annual 
groundfish allocated to a sector, technically referred to as a sector's 
annual catch entitlement, or ACE.
     Accumulation limits may be modified in a future framework 
due to a Federal permit buyback or buyout.
     If an entity held permits or PSC on the control date 
(April 7, 2011) that exceeded the accumulation limits, it would be 
exempt from the accumulation limit, but would be restricted to holding 
no more permits or PSC than it held as of the control date. The 
grandfathered holdings may be fished or leased by the entity but are 
not transferrable. Current analyses suggest that no entity exceeds the 
control date accumulation limits.
     There is no calculation of partial ownership when 
considering accumulation limits. Any entity that is a partial owner is 
assumed to have full-ownership when calculating permit and PSC 
accumulation limits.
Limiting the Number of Permits
    This action proposes to limit an entity to holding no more than 5 
percent of all limited access groundfish permits. An entity would be 
prohibited from acquiring a permit that would result in it exceeding 
the 5-percent permit cap. There are approximately 1,373 limited access 
permits currently in the fishery; a 5-percent cap would limit an entity 
to approximately 69 permits. As of May 1, 2014, the most permits held 
by any entity is 55. Therefore, if approved, this alternative is 
unlikely to immediately restrict any entity.
    Using this permit cap alone could still allow for accumulation of 
PSC sufficient to exert market power in limited and unlikely 
circumstances. For example, if only a 5-percent permit cap was adopted, 
an entity could potentially hold 85 PSC of the Georges Bank winter 
flounder stock. To address this potential, the Council proposed an 
additional PSC limit proposed in this action.

[[Page 92763]]

Limiting the Potential Sector Contribution
    This action also proposes to limit the aggregated average of all 
allocated groundfish stocks PSC that may be held by an entity to no 
more than 15.5. With 15 groundfish stocks currently allocated to the 
fishery, the total PSC across all stocks used by an individual or an 
entity must be <=232.5 (an average of 15.5 per stock multiplied by 15 
stocks). This would allow an entity to hold PSC for a single stock in 
excess of 15.5, so long as the total holdings used do not exceed 232.5. 
If additional groundfish stocks are allocation (or unallocated) to 
sectors in the future, then this number would change by 15.5 per stock.
    This PSC limit was developed based on Compass Lexecon's 
recommendation to establish a stock-specific PSC limit of 15.5 (as 
explained above). However, to allow fishermen additional operational 
flexibility in light of current groundfish stock conditions, the 
Council elected to use an aggregate average as defined above. Compared 
to other PSC limit alternatives that the Council considered, this 
option is the least restrictive because there is no stock-specific 
limit. Further, an entity would be permitted to purchase a vessel 
permit during a fishing year that would result in exceeding the 
aggregate 232.5 PSC limit. In this case, the entity would have to 
render at least one permit unusable (or ``shelve'' the permit) so that 
the entity is not operating above the PSC limit the following fishing 
year. A shelved permit would be unusable for an entire fishing year; a 
shelved permit could not be enrolled in a sector, fished, or leased, 
but could be sold. An entity would be prohibited from purchasing any 
additional permit once it exceeds the PSC limit. This is intended to 
allow a permit holder to acquire a new permit and improve their 
operational flexibility, while still restricting them to the overall 
accumulation limit. A shelved permit that is rendered unusable can be 
sold.
    The aggregate limit provides flexibility for accumulating shares in 
single stocks. By itself, an aggregate PSC limit could result in an 
entity accumulating sufficient PSC in a single stock to exert market 
power, though exerting market power over multiple stocks appears highly 
unlikely. Recent analyses indicate that no one entity currently holds 
more than 140.4 PSC. Consequently, if approved, the 232.5 PSC limit is 
unlikely to immediately constrain any entity. Analyses within sections 
7.6 and 9.11 of the Amendment suggest that purchasing vessel permits 
with enough PSC to exceed the PSC limit of 232.5 would require 
substantial capital and logistically would likely be complex and time 
consuming. As a result, the increased flexibility for accumulating PSC 
in individual stocks is curbed by the combination of the PSC limit and 
the permit caps.
Effect of Combined Accumulation Limits
    The combination of PSC limits and the permit cap make it highly 
unlikely that market power could be exerted. Analyses show that the 
maximum allocation that an entity could acquire would be around 20 PSC 
for the majority of stocks, though PSC for certain stocks such as 
Georges Bank winter flounder could be acquired at higher levels than 
others. These analyses suggest that the proposed combination of an 
aggregate PSC limit of 232.5 and a 5-percent permit cap should be 
sufficient to prevent market power from being exerted. These analyses 
are discussed in more detail in sections 7.7.4.5 and 9.11 of the 
Amendment 18 EIS (see ADDRESSES).
Transfer of Permits by an Individual Entity That Has Exceeded the PSC 
Limit
    We have some concern that Amendment 18 does not include any permit 
transfer restrictions on an individual entity that has exceeded the 
permit accumulation limit. As proposed, an individual who has exceeded 
the permit accumulation limit could maintain an interest in the PSC by 
transferring a permit to a spouse, family member, or business partner 
at little to no cost. We see this as a potential loophole to the PSC 
limit restriction. Including a requirement that any permit transfer 
from an entity that has exceeded the permit accumulation limit be an 
``arms-length'' transaction would address this potential loophole. In 
this case, an arms-length transaction would be a permit transfer in the 
ordinary course of business between independent and unrelated entities, 
which would result in the owner who exceeded the limit maintaining no 
interest in the transferred permit and its PSC. We welcome comment on 
this topic.
Future Changes to Accumulation Limits
    Amendment 18 proposes to allow modifications to the accumulation 
limits through a future framework adjustment if a vessel/permit buyback 
or buyout were enacted in the groundfish fishery. However, any other 
changes to the accumulation limits would require an amendment to the 
FMP. Should certain factors change dramatically, such as a substantial 
reduction in the number of northeast multispecies limited access 
permits (due to permit holders relinquishing their permits), then NMFS 
would encourage the Council to revisit the accumulation limits proposed 
in this Amendment.
Ownership Interest
    In order for an accumulation limit to be developed and applied it 
is necessary to first define an ownership interest. A unique definition 
of ownership interest as applied to the groundfish fishery is proposed 
for section 50 CFR 648.2 of the regulations. To better identify 
ownership interest and account for accumulation limits in the 
groundfish fishery, a permit holder would be required to identify all 
persons who hold an ownership interest with a particular permit when 
submitting a groundfish permit application or renewal form.

2. Handgear A Measures

    To reduce effort controls and increase flexibility for small boat 
fishermen, this action proposes to remove or modify several management 
measures affecting limited access permitted vessels fishing with 
handgear (Handgear A vessels).
    First, this action would remove the March 1-20 spawning-block 
closure for all Handgear A vessels. Fishing effort by Handgear A 
vessels is restricted by a very small annual catch limit, and vessels 
are subject to other spawning closures. This measure would make the 
regulations for Handgear A vessels more consistent with vessels fishing 
in sectors, which are already exempted from the 20-day spawning block 
and is not anticipated to have any substantial biological consequences.
    Handgear A vessels would also no longer be required to carry a 
standard fish tote on board. This measure was initially implemented to 
aid in the sorting and weighing of fish by both fishermen and 
enforcement personnel. However, enforcement no longer uses totes for 
at-sea weight and volume estimates, so the requirement for vessels to 
carry a tote is no longer necessary.
    Lastly, this action would allow a sector to request an exemption 
from the requirement for Handgear A vessels to use a Vessel Monitoring 
System (VMS). Handgear A fishermen enrolled in a sector are currently 
required to utilize a VMS. Handgear A fishermen have commented that 
installing and utilizing a VMS system makes enrolling in a sector cost 
prohibitive. Any sector interested in utilizing this exemption would be 
required to submit an exemption request to us for approval. If a sector 
exemption is approved, a Handgear A vessel fishing within a sector 
utilizing the exemption would

[[Page 92764]]

declare its trips through the interactive voice response (IVR) call-in 
system instead of through a VMS. This measure is intended to encourage 
Handgear A vessels to enroll in a sector by reducing operating 
expenses. Sectors receive regulatory exemptions and larger allocations 
that could provide additional flexibility and fishing opportunities to 
Handgear A vessels.

Measures That Could Be Addressed in a Future Framework

    This action proposes to allow two measures analyzed in Amendment 18 
to be implemented through a future framework action. The Council 
explored establishing a separate allocation for the Handgear A fishery. 
Additionally, there was some interest in considering separate 
management measures for an inshore/offshore Gulf of Maine (GOM) 
boundary, including separate allocations for inshore and offshore GOM 
cod. However, because current catch limits for key groundfish stocks, 
including GOM cod, are so low, further sub-dividing allocations for the 
Handgear A, as well as inshore and offshore GOM cod, were controversial 
and would be difficult to develop and implement at this time. As a 
result, the Council elected to potentially consider these measures in a 
future framework.
    In addition, several regulatory clarifications are proposed at 
Sec.  648.90 to better delineate the responsibilities of the groundfish 
plan development team as well as which Council management measures 
could be modified in a future framework.
    Public comments on the NOA for the FMP/amendment are being 
solicited through February 6, 2017 (81 FR 87862; December 6, 2016). 
Public comments on the proposed rule must be received by the end of the 
comment period on the Amendment, as published in the NOA, to be 
considered in the approval/disapproval decision on the Amendment. All 
comments received by the end of the comment period on the Amendment, 
whether specifically directed to the Amendment, or the proposed rule, 
will be considered in the approval/disapproval decision. Comments 
received after that date will not be considered in the approval/
disapproval decision on Amendment 18. To be considered, comments must 
be received by close of business on the last day of the comment period; 
that does not mean postmarked or otherwise transmitted by that date.
    Pursuant to section 303(c) of the Magnuson-Stevens Act, the Council 
has deemed the proposed regulations to be necessary and appropriate for 
the purpose of implementing Amendment 18.

Classification

    Pursuant to section 304(b)(1)(A) of the Magnuson-Stevens Act, the 
NMFS Assistant Administrator has preliminarily determined that this 
proposed rule is consistent with Amendment 18, the FMP, other 
provisions of the Magnuson-Stevens Act, and other applicable law, 
subject to further consideration after public comment.
    This proposed rule has been determined to be not significant for 
purposes of Executive Order 12866.
    The Council prepared an environmental impact statement (EIS) for 
Amendment 18 that analyzes the impacts on the environment as a result 
of this action. A copy of the Amendment 18 EIS is available upon 
request from the Council and from our Web site (see ADDRESSES). A copy 
is also available from the Federal e-Rulemaking portal at 
www.regulations.gov. Type ``NOAA-NMFS-2015-0143'' in the Enter Keyword 
or ID field and click search.
    An initial regulatory flexibility analysis (IRFA) was prepared, as 
required by section 603 of the Regulatory Flexibility Act (RFA). The 
IRFA describes the economic impact that this proposed rule, if adopted, 
would have on small entities. A description of the action, why it is 
being considered, and the legal basis for this action are contained at 
the beginning of this section, in the preamble, and in the SUMMARY 
section of the preamble. A summary of the IRFA follows. A copy of this 
analysis is available from the Council (see ADDRESSES).
    The purpose of the Regulatory Flexibility Act (RFA) analysis is to 
establish a principle of regulatory issuance that agencies shall 
endeavor, consistent with the objectives of the rule and of applicable 
statutes, to fit regulatory and informational requirements to the scale 
of businesses, organizations, and governmental jurisdictions subject to 
regulation. To achieve this principle, agencies are required to solicit 
and consider flexible regulatory proposals and to explain the rationale 
for their actions to assure such proposals are given serious 
consideration. The RFA does not contain any decision criteria. Instead, 
the purpose of the RFA is to inform the agency, as well as the public, 
of the expected economic impacts of various alternatives contained in 
the FMP or Amendment (including framework management measures and other 
regulatory actions) and to ensure the agency considers alternatives 
that minimize the expected impacts while meeting the goals and 
objectives of the FMP and applicable statutes.
    With certain exceptions, the RFA requires agencies to conduct an 
Initial Regulatory IRFA for each proposed rule. The IRFA is designed to 
assess the impacts various regulatory alternatives would have on small 
entities, including small businesses, and to determine ways to minimize 
those impacts. An IRFA is primarily conducted to determine whether the 
proposed action would have a ``significant economic impact on a 
substantial number of small entities.'' In addition to analyses 
conducted for the RIR, the IRFA provides:
    1. A description of the reasons why action by the agency is being 
considered;
    2. A succinct statement of the objectives of, and legal basis for, 
the proposed rule;
    3. A description and, where feasible, an estimate of the number of 
small entities to which the proposed rule will apply;
    4. A description of the projected reporting, record-keeping, and 
other compliance requirements of the proposed rule, including an 
estimate of the classes of small entities which will be subject to the 
requirements of the report or record; and,
    5. Identification, to the extent practicable, of all relevant 
federal rules, which may duplicate, overlap, or conflict with the 
proposed rule.

Description of the Reasons Why Action by the Agency Is Being Considered

    The purpose and need of Amendment 18 are set forth in Section 3.2 
of the EIS (see page 30).

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

    The goals and objectives of Amendment 18 are set forth in Section 
3.3 of the EIS (see page 31-32). These were also summarized in the 
Background section of the preamble.

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

    Small entities include ``small businesses,'' ``small 
organizations,'' and ``small governmental jurisdictions.'' The Small 
Business Administration (SBA) has established size standards for all 
major industry sectors in the U.S. including commercial finfish 
harvesters (NAICS code 114111), commercial shellfish harvesters (NAICS 
code 114112), other commercial marine harvesters (NAICS code 114119), 
for-hire businesses (NAICS code 487210),

[[Page 92765]]

marinas (NAICS code 713930), seafood dealers/wholesalers (NAICS code 
424460), and seafood processors (NAICS code 311710). A business 
primarily involved in finfish harvesting 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 $20.5 million for all its affiliated 
operations worldwide. For commercial shellfish harvesters, the other 
qualifiers apply and the receipts threshold is $5.5 million. For other 
commercial marine harvesters, for-hire businesses, and marinas, the 
other qualifiers apply and the receipts threshold is $7.5 million.
    On December 29, 2015, the National Marine Fisheries Service (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 Regulatory 
Flexibility Act (RFA) compliance purposes only (80 FR 81194, December 
29, 2015). The $11 million standard became effective on July 1, 2016, 
and is to be used in place of the 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 IRFA was 
developed for this regulatory action using SBA's former size standards. 
NMFS has reviewed the analyses prepared for this regulatory action in 
light of the new size standard. Under the SBA's size standards, all of 
the commercial finfish and other marine fishing businesses were 
considered small, while 12 of the 237 shellfish businesses were 
determined not to be small (Tables 1 and 2). The new standard could 
result in a few more commercial shellfish businesses being considered 
small. Analyses in Tables 2 and 3 below reveal that no groundfish-
dependent entities exceeded $5.5 million in gross sales, with the mean 
gross sale per entity being less than $2 million. As a result, it is 
unlikely that any finfish, or more specifically, groundfish-dependent 
vessels, would be considered a large business under the new NMFS size 
standard.
    Amendment 18 regulates commercial fish harvesting entities engaged 
in the Northeast multispecies limited access fishery. A description of 
the specific entities that are likely to be impacted is included below 
for informational purposes, followed by a discussion of those regulated 
entities likely to be impacted by the proposed regulations. For the 
purposes of the RFA analysis, the ownership entities, not the 
individual vessels, are considered the regulated entities.

Ownership Entities in Regulated Commercial Harvesting Businesses

    Individually-permitted vessels may hold permits for several 
fisheries, harvesting species of fish that are regulated by several 
different FMPs, even beyond those impacted by Amendment 18. 
Furthermore, multiple permitted vessels and/or permits may be owned by 
entities affiliated by stock ownership, common management, identity of 
interest, contractual relationships, or economic dependency. For this 
analysis, ownership entities are defined by those entities with common 
ownership personnel as listed on permit application documentation. Only 
permits with identical ownership personnel are categorized as an 
ownership entity. For example, if five permits have the same seven 
personnel listed as co-owners on their application paperwork, those 
seven personnel form one ownership entity, covering those five permits. 
If one or several of the seven owners also own additional vessels, with 
sub-sets of the original seven personnel or with new co-owners, those 
ownership arrangements are deemed to be separate ownership entities for 
the purpose of this analysis.

Regulated Commercial Harvesting Entities

    Ownership entities are identified on June 1 of each year based on 
the list of all permit numbers for the most recent complete calendar 
year that have applied for any type of Northeast Federal fishing 
permit. The current ownership data set is based on calendar year 2014 
permits and contains gross sales associated with those permits for 
calendar years 2012 through 2014. As of June 1, 2015, there were 661 
commercial business entities potentially regulated by this action. 
Entities permitted to operate in the Northeast multispecies limited 
access fishery are described in Tables 1 and 2. As of June 1, 2015, 
there were 1,147 individual limited access permits. The 34 for-hire 
businesses included here are entities affiliated with limited access 
commercial groundfish permits, but derive greater than 50% of their 
gross sales from party/charter operations. All are small businesses 
(average gross revenues from 2012-14 are less than $7.5 million). The 
remaining 75 entities had no revenue and are classified as small.
    These totals may mask some diversity among the entities. Many, if 
not most, of these ownership entities maintain diversified harvest 
portfolios, obtaining gross sales from many fisheries and are not 
dependent on any one. However, not all are equally diversified. Those 
that depend most heavily on sales from harvesting species impacted 
directly by Amendment 18 are most likely to be affected. By defining 
dependence as deriving greater than 50% of gross sales from sales of 
regulated species associated with a specific fishery, those ownership 
groups most likely to be impacted by the proposed regulations can be 
identified. Using this threshold, 61 entities are groundfish-dependent; 
all of which are small under both the SBA and NMFS size standards 
(Table 3).

           Table 1--Entities Regulated by the Proposed Action
------------------------------------------------------------------------
                                                                 Number
                        Type                           Number     small
------------------------------------------------------------------------
Primarily finfish...................................       315       315
Primarily shellfish.................................       237       225
Primarily for-hire..................................        34        34
No Revenue..........................................        75        75
                                                     -------------------
    Total...........................................       661       649
------------------------------------------------------------------------


                                                Table 2--Description of Regulated Entities by Gross Sales
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                            Mean gross     Median gross    Mean permits     Max permits
                     Sales category                           Number       Number small        sales           sales        per entity      per entity
--------------------------------------------------------------------------------------------------------------------------------------------------------
<$50K...................................................             186             186         $10,597          $1,954             1.3              30
$50-100K................................................              71              71          76,466          78,736             1.3               3
$100-500K...............................................             225             225         244,672         219,731             1.3               4
$500K-1mil..............................................              91              91         734,423         720,668             1.7               7
$1-5.5mil...............................................              74              73       1,899,461       1,498,138             2.4              11
$5.5mil+................................................              14               3      11,900,790       7,383,522            12.4              28
--------------------------------------------------------------------------------------------------------------------------------------------------------


[[Page 92766]]


                             Table 3--Impacted Groundfish-Dependent Regulated Commercial Groundfish Entities by Gross Sales
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                  Average
                                                      Large       fishing      Maximum     Median gross     Mean gross        Median           Mean
                Sales                   Entities    businesses    permits      fishing       sales per       sales per      groundfish      groundfish
                                          (#)          (#)       owned per   permits per      entity          entity         sales per       sales per
                                                                 entity (#)   entity (#)                                      entity          entity
--------------------------------------------------------------------------------------------------------------------------------------------------------
<$50K...............................            6            0          1.0            1         $10,116         $20,316          $8,831         $16,476
$50-100K............................            7            0          1.1            2          72,052          67,390          56,221          49,341
$100-500K...........................           22            0          1.6            4         226,938         240,833         116,018         172,331
$500K-1mil..........................           13            0          1.2            2         698,226         718,231         398,548         491,838
$1-5.5mil...........................           13            0          2.2            4       1,553,597       1,854,052       1,292,445       1,403,896
                                     -------------------------------------------------------------------------------------------------------------------
    Total ownership entities........           61            0  ...........  ...........  ..............  ..............  ..............  ..............
--------------------------------------------------------------------------------------------------------------------------------------------------------

Description of Projected Reporting, Record Keeping, and Other 
Compliance Requirements of This Proposed Rule

    This action contains a change to an information collection 
requirement, which has been approved by the Office of Management and 
Budget (OMB) under OMB Control Number 0648-0202. This revision would 
require any entity that has exceeded the potential sector contribution 
(PSC) allocation limit to render one or more permits ``unusable'' so 
that the entity would be operating within the allocation limit. If an 
entity exceeds the PSC limit, the entity would be required to complete 
a ``Permit Shelving Form'' and render one or more permits unusable. If 
two entities had to complete a ``Permit Shelving Form'', the burden 
estimate would be 1 hr and cost $1.
    Currently, no entity exceeds the PSC allocation limit; the most PSC 
any entity holds is approximately 140 PSC, and the proposed limit would 
be 232.5. As a result, it is unlikely that any entity would reach this 
threshold, and that the proposed action would not affect fishing 
operations.
    Public comment is sought regarding whether this collection of 
information is necessary for the proper performance of the function of 
the agency, including whether the information shall have practical 
utility; the accuracy of the burden estimate; ways to enhance the 
quality, utility, and clarify of the information to be collected; and 
ways to minimize the burden of the collection of information, including 
through the use of automated collection techniques or other forms of 
information technology. Send comments on these or any other aspects of 
the collection of information to NMFS and to OMB (see ADDRESSES).
    Notwithstanding any other provision of the law, no person is 
required to respond to, and no person shall be subject to penalty for 
failure to comply with, a collection of information subject to the 
requirements of the Paperwork Reduction Act, unless that collection of 
information displays a currently valid OMB control number.

Federal Rules Which May Duplicate, Overlap, or Conflict With This 
Proposed Rule

    No relevant Federal rules have been identified that would duplicate 
or overlap with Amendment 18.

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

    This IRFA summary is intended to analyze how small entities would 
be impacted by the proposed management measures. These measures are 
expected to have minimal, if any, impact on small entities regulated by 
this action. The vast majority (649 out of 661) of potentially 
regulated entities are classified as small businesses by SBA and NMFS 
business size standards.
    In general, the small entities regulated by this action would be 
unaffected. The majority of limited access groundfish permit holders 
possess permits and PSC in far smaller quantities than the proposed 
accumulation limits. However, as proposed, individuals who comprise a 
part of, or the entirety of, these small entities could be restricted 
in the number of permits or the amount of PSC shares they wish to 
accumulate in the future, which could impact revenue. Based on the 
Compass Lexecon report, scalability would not be affected by the 
reduced accumulation potential, although a definitive statement cannot 
be made at this time. Further, the PSC limit alternative would allow 
substantial flexibility so that vessel permit holders could continue to 
accumulate permits in a manner that allows them to maximize fishing 
opportunities within their portfolio.
    There were several other PSC limit alternatives considered in the 
Amendment that were not selected because the Council determined the 
alternatives would have been too restrictive. For example, limiting an 
ownership entity to an accumulation limit equivalent to the PSC held as 
of the control date could have forced divestiture in the fishery and 
would have prevented ownership entities from growing. Similarly, 
establishing a specific accumulation limit for a specific groundfish 
stock would have reduced opportunities for entities to expand and 
restricted operational flexibility. Additional information on these 
alternatives is available in section 4.1 of the Amendment.
    Handgear A permit holders would be largely unaffected by the 
limited access handgear measures. Minimal fishing activity by these 
vessels occurs during the winter and early spring, and the removal of 
the March 1-20 closure would not change this behavior. The removal of 
the standard fish tote requirement would be inconsequential, as this 
rule is not currently enforced and it is a minor operational change. 
The sector exemption for VMS requirement would likely also not affect 
Handgear A permit holders. Joining a sector would remain a challenge 
for these permit holders, given the small PSC associated with Handgear 
A permits. However, if they were to join a sector, this provision would 
reduce the cost burden for those vessels.
    Several management measures and alternatives were considered but 
not selected by the Council. Other alternatives may be considered in a 
future framework, as explained in the preamble above. Additional 
information on these alternatives and justifications for the Council's 
decision are explained in section 4 of the Amendment.

Impacts to Groundfish-Dependent Small Entities

    The impacts of the proposed accumulation limits on groundfish-
dependent small entities would be minimal. No entity would be 
immediately impacted by the proposed accumulation limits, and few would 
be potentially impacted in the long term. For those that are 
potentially impacted,

[[Page 92767]]

it is not possible to state whether scalability would be lessened. The 
proposed PSC and permit caps would limit the ability of any individual 
from monopolizing the fishery.
    It is not clear how many Handgear A permit holders are groundfish-
dependent, but the number is likely very small. There were 28 Handgear 
A permit holders that took at least one groundfish trip during fishing 
year 2013; any of these 28 would be minimally impacted by Amendment 18. 
There may be a few trips taken during the removed March 1-20 closure 
block. However, groundfish trips taken by Handgear A permit holders 
have generally been more profitable during the warmer months in recent 
years. The management measures proposed in this rule would provide 
greater operational flexibility to Handgear A vessels, therefore 
benefiting small businesses.

List of Subjects in 50 CFR Part 648

    Fisheries, Fishing, Reporting and recordkeeping requirements.

    Dated: December 13, 2016.
Samuel D. Rauch III,
Deputy Assistant Administrator for Regulatory Programs, National Marine 
Fisheries Service.

    For the reasons stated in the preamble, 50 CFR part 648 is proposed 
to be amended as follows:

PART 648--FISHERIES OF THE NORTHEASTERN UNITED STATES

0
1. The authority citation for part 648 continues to read as follows:

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

0
2. In Sec.  648.2, add a definition for ``Ownership interest'' in 
alphabetical order to read as follows:
* * * * *
    Ownership interest, in the NE multispecies fishery, includes, but 
is not limited to holding share(s) or stock in any corporation, any 
partnership interest, or membership in a limited liability company, or 
personal ownership, in whole or in part, of a vessel issued a limited 
access NE multispecies permit or confirmation of permit history (CPH), 
including any ownership interest in any entity or its subsidiaries or 
partners, no matter how far removed.
* * * * *
0
3. In Sec.  648.4, add paragraph (a)(1)(i)(N) and revise paragraph 
(c)(2)(i) to read as follows:


Sec.  648.4  Vessel permits.

    (a) * * *
    (1) * * *
    (i) * * *
    (N) Accumulation Limits. (1) 5-percent Permit/CPH Restriction. Any 
person with an ownership interest in the NE multispecies fishery is not 
eligible to be issued a limited access NE multispecies permit or CPH 
for a vessel after April 7, 2011, if the issuance results in the person 
having an ownership interest in excess of 5 percent of all limited 
access NE multispecies permits and CPH that are issued as of the date 
the permit/CPH application is received by the NMFS.
    (2) PSC Limit. Any person with an ownership interest in the NE 
multispecies fishery is not eligible to be issued a limited access NE 
multispecies permit or CPH for a vessel after April 7, 2011, that 
results in that person's average potential sector contribution (PSC) 
exceeding a share of 15.5 for all the allocated stocks in aggregate, 
except as provided in paragraph (a)(1)(i)(N)(4) of this section.
    (3) Grandfather Provision. Any person initially issued a limited 
access NE multispecies permit or CPH prior to April 7, 2011, is 
eligible to renew such permits(s) and/or CPH, regardless of whether the 
renewal of the permits or CPH results in the person exceeding the 5-
percent ownership restriction or an average PSC share of 15.5 for all 
the allocated stocks in aggregate. Any additional permitted vessels 
that a person acquires after April 7, 2011, are subject to the 
accumulation limits specified within this section.
    (4) Any person can be issued one limited access NE multispecies 
permit or CPH that results in that person's total PSC exceeding the PSC 
limit as described in this section. That person must identify to NMFS 
on or before March 31 of each year, vessel permits or CPH that will be 
rendered unusable the upcoming fishing year so that the person's total 
PSC for the upcoming fishing year is an amount equal to or below the 
PSC limit. Beginning on May 1, the permits or CPH rendered unusable may 
not be fished, leased, or enrolled in a sector by that person for the 
remainder of the fishing year. A permit rendered unusable may be 
transferred.
* * * * *
    (c) * * *
    (2) Vessel permit information requirements. (i) An application for 
a permit issued under this section, in addition to the information 
specified in paragraph (c)(1) of this section, also must contain at 
least the following information, and any other information required by 
the Regional Administrator: Vessel name, owner name or name of the 
owner's authorized representative, mailing address, and telephone 
number; USCG documentation number and a copy of the vessel's current 
USCG documentation or, for a vessel not required to be documented under 
title 46 U.S.C., the vessel's state registration number and a copy of 
the current state registration; a copy of the vessel's current party/
charter boat license (if applicable); home port and principal port of 
landing, length overall, GRT, NT, engine horsepower, year the vessel 
was built, type of construction, type of propulsion, approximate fish 
hold capacity, type of fishing gear used by the vessel, number of crew, 
number of party or charter passengers licensed to be carried (if 
applicable), permit category; if the owner is a corporation, a copy of 
the current Certificate of Incorporation or other corporate papers 
showing the date of incorporation and the names of the current officers 
of the corporation, and the names and addresses of all persons holding 
any ownership interest in a NE multispecies permit or CPH or 
shareholders owning 25 percent or more of the corporation's shares for 
other fishery permits; if the owner is a partnership, a copy of the 
current Partnership Agreement and the names and addresses of all 
partners; permit number of any current or, if expired, previous Federal 
fishery permit issued to the vessel.
* * * * *
0
4. In Sec.  648.14,
0
a. Add paragraphs (k)(2)(v) and (vi);
0
b. Revise paragraph (k)(9)(i); and
0
c. Add paragraph (k)(9)(ii)(N) to read as follows:


Sec.  648.14  Prohibitions.

* * * * *
    (k) * * *
    (2) * * *
    (v) Fish for, possess, land fish, enroll in a sector, or lease a 
permit or confirmation of permit history (CPH) as a lessor or lessee, 
with a permit that has been rendered unusable as specified in Sec.  
648.4(a)(1)(i)(N).
    (vi) Acquire a limited access NE multispecies permit that would 
result in a permit holder exceeding any of the ownership accumulation 
limits specified in Sec.  648.4(a)(1)(i)(N), unless authorized under 
Sec.  648.4(a)(1)(i)(N).
* * * * *
    (9) * * *
    (i) If operating under the provisions of a limited access NE 
multispecies Handgear A permit south of the GOM Regulated Mesh Area, as 
defined at Sec.  648.80(a)(1), fail to declare the vessel operator's 
intent to fish in this area via VMS or fail to obtain or retain on 
board a letter of authorization from the

[[Page 92768]]

Regional Administrator, as required by Sec.  648.82(b)(6)(iii).
* * * * *
    (ii) * * *
    (N) Act as a lessor or lessee of NE multispecies DAS to or from a 
limited access permit that has been rendered unusable as specified in 
Sec.  648.4(a)(1)(i)(N).
* * * * *
0
5. In Sec.  648.82, revise paragraphs (b)(6) and (g) to read as 
follows:


Sec.  648.82   Effort-control program for NE multispecies limited 
access vessels.

* * * * *
    (b) * * *
    (6) Handgear A category. A vessel qualified and electing to fish 
under the Handgear A category, as described in Sec.  648.4(a)(1)(i)(A), 
may retain, per trip, up to 300 lb (135 kg) of cod, one Atlantic 
halibut, and the daily possession limit for other regulated species and 
ocean pout, as specified under Sec.  648.86. If either the GOM or GB 
cod trip limit applicable to a vessel fishing under a NE multispecies 
DAS permit, as specified in Sec.  648.86(b)(1) and (2), respectively, 
is reduced below 300 lb (135 kg) per DAS by NMFS, the cod trip limit 
specified in this paragraph (b)(6) shall be adjusted to be the same as 
the applicable cod trip limit specified for NE multispecies DAS 
permits. For example, if the GOM cod trip limit for NE multispecies DAS 
vessels was reduced to 250 lb (113.4 kg) per DAS, then the cod trip 
limit for a vessel issued a Handgear A category permit that is fishing 
in the GOM Regulated Mesh Area would also be reduced to 250 lb (113.4 
kg). Qualified vessels electing to fish under the Handgear A category 
are subject to the following restrictions:
    (i) The vessel must not use or possess on board gear other than 
handgear while in possession of, fishing for, or landing NE 
multispecies;
    (ii) Tub-trawls must be hand-hauled only, with a maximum of 250 
hooks; and
    (iii) Declaration. For any such vessel that is not required to use 
VMS pursuant to Sec.  648.10(b)(4), to fish for GB cod south of the GOM 
Regulated Mesh Area, as defined at Sec.  648.80(a)(1), a vessel owner 
or operator must obtain, and retain on board, a letter of authorization 
from the Regional Administrator stating an intent to fish south of the 
GOM Regulated Mesh Area and may not fish in any other area for a 
minimum of 7 consecutive days from the effective date of the letter of 
authorization. For any such vessel that is required, or elects, to use 
VMS pursuant to Sec.  648.10(b)(4), to fish for GB cod south of the GOM 
Regulated Mesh Area, as defined at Sec.  648.80(a)(1), a vessel owner 
or operator must declare an intent to fish south of the GOM Regulated 
Mesh Area on each trip through the VMS prior to leaving port, in 
accordance with instructions provided by the Regional Administrator. 
Such vessels may transit the GOM Regulated Mesh Area, as defined at 
Sec.  648.80(a)(1), provided that their gear is stowed and not 
available for immediate use as defined in Sec.  648.2.
* * * * *
    (g) Spawning season restrictions. A vessel issued a valid Small 
Vessel category permit specified in paragraph (b)(5) of this section, 
or a vessel issued an open access Handgear B permit, as specified in 
Sec.  648.88(a), may not fish for, possess, or land regulated species 
or ocean pout from March 1 through March 20 of each year. A common pool 
vessel must declare out and be out of the NE multispecies DAS program, 
and a sector must declare that the vessel will not fish with gear 
capable of catching NE multispecies (i.e., gear that is not defined as 
exempted gear under this part), for a 20-day period between March 1 and 
May 31 of each calendar year, using the notification requirements 
specified in Sec.  648.10. A vessel fishing under a Day gillnet 
category designation is prohibited from fishing with gillnet gear 
capable of catching NE multispecies during its declared 20-day spawning 
block, unless the vessel is fishing in an exempted fishery, as 
described in Sec.  648.80. If a vessel owner has not declared and been 
out of the fishery for a 20-day period between March 1 and May 31 of 
each calendar year on or before May 12 of each year, the vessel is 
prohibited from fishing for, possessing or landing any regulated 
species, ocean pout, or non-exempt species during the period from May 
12 through May 31.
* * * * *
0
6. In Sec.  648.87, revise paragraph (c)(2)(i) introductory text to 
read as follows:


Sec.  648.87   Sector allocation.

* * * * *
    (c) * * *
    (2) * * *
    (i) Regulations that may not be exempted for sector participants. 
The Regional Administrator may not exempt participants in a sector from 
the following Federal fishing regulations: Specific times and areas 
within the NE multispecies year-round closure areas; permitting 
restrictions (e.g., vessel upgrades, etc.); gear restrictions designed 
to minimize habitat impacts (e.g., roller gear restrictions, etc.); 
reporting requirements; and AMs specified in Sec.  648.90(a)(5)(i)(D). 
For the purposes of this paragraph (c)(2)(i), the DAS reporting 
requirements specified in Sec.  648.82, the SAP-specific reporting 
requirements specified in Sec.  648.85, VMS requirements for Handgear A 
category permitted vessels as specified in Sec.  648.10, and the 
reporting requirements associated with a dockside monitoring program 
are not considered reporting requirements, and the Regional 
Administrator may exempt sector participants from these requirements as 
part of the approval of yearly operations plans. For the purpose of 
this paragraph (c)(2)(i), the Regional Administrator may not grant 
sector participants exemptions from the NE multispecies year-round 
closures areas defined as Essential Fish Habitat Closure Areas as 
defined in Sec.  648.81(h); the Fippennies Ledge Area as defined in 
paragraph (c)(2)(i)(A) of this section; Closed Area I and Closed Area 
II, as defined in Sec.  648.81(a) and (b), respectively, during the 
period February 16 through April 30; and the Western GOM Closure Area, 
as defined at Sec.  648.81(e), where it overlaps with GOM Cod 
Protection Closures I through III, as defined in Sec.  648.81(f)(4). 
This list may be modified through a framework adjustment, as specified 
in Sec.  648.90.
* * * * *
0
7. In Sec.  648.90, revise paragraphs (a)(2)(i) through (iii) to read 
as follows:


Sec.  648.90  NE multispecies assessment, framework procedures and 
specifications, and flexible area action system.

* * * * *
    (a) * * *
    (2) Biennial review. (i) At a minimum, the NE multispecies PDT 
shall meet on or before September 30 every other year to perform a 
review of the fishery, using the most current scientific information 
available provided primarily from the NEFSC. Data provided by states, 
ASMFC, the USCG, and other sources may also be considered by the PDT. 
The PDT shall review available data pertaining to: Catch and landings, 
discards, DAS allocations, DAS use, sector operations, and other 
measures of fishing effort; survey results; stock status; current 
estimates of fishing mortality and overfishing levels; social and 
economic impacts; enforcement issues; and any other relevant 
information. The PDT may also review the performance of different user 
groups or fleet sectors.
    (ii) Based on this review, the PDT shall recommend ACLs for the 
upcoming fishing year(s), as described in paragraph (a)(4) of this 
section, and develop options for consideration by the

[[Page 92769]]

Council, if necessary, on any changes, adjustments, or additions to DAS 
allocations, closed areas, or other measures necessary to rebuild 
overfished stocks and achieve the FMP goals and objectives, which may 
include a preferred option. The range of options developed by the PDT 
may include any of the management measures in the FMP, including, but 
not limited to: ACLs, which must be based on the projected fishing 
mortality levels required to meet the goals and objectives outlined in 
the FMP for the 12 regulated species and ocean pout if able to be 
determined; identifying and distributing ACLs and other sub-components 
of the ACLs among various segments of the fishery; AMs; DAS changes; 
possession limits; gear restrictions; closed areas; permitting 
restrictions; minimum fish sizes; recreational fishing measures; 
describing and identifying EFH; fishing gear management measures to 
protect EFH; designating habitat areas of particular concern within 
EFH; and changes to the SBRM, including the CV-based performance 
standard, the means by which discard data are collected/obtained, 
fishery stratification, the process for prioritizing observer sea-day 
allocations, reports, and/or industry-funded observers or observer set 
aside programs. The PDT must demonstrate through analyses and 
documentation that the options it develops are expected to meet the FMP 
goals and objectives.
    (iii) In addition, the PDT may develop ranges of options for any of 
the management measures in the FMP and the following conditions that 
may be adjusted through a framework adjustment to achieve FMP goals and 
objectives including, but not limited to: Revisions to DAS measures, 
including DAS allocations (such as the distribution of DAS among the 
four categories of DAS), future uses for Category C DAS, and DAS 
baselines, adjustments for steaming time, etc.; accumulation limits due 
to a permit buyout or buyback; modifications to capacity measures, such 
as changes to the DAS transfer or DAS leasing measures; calculation of 
area-specific ACLs (including sub-ACLs for specific stocks and areas 
(e.g., Gulf of Maine cod)), area management boundaries, and adoption of 
area-specific management measures including the delineation of inshore/
offshore fishing practices, gear restrictions, declaration time 
periods; sector allocation requirements and specifications, including 
the establishment of a new sector, the disapproval of an existing 
sector, the allowable percent of ACL available to a sector through a 
sector allocation, an optional sub-ACL specific to Handgear A permitted 
vessels, and the calculation of PSCs; sector administration provisions, 
including at-sea and dockside monitoring measures; sector reporting 
requirements; state-operated permit bank administrative provisions; 
measures to implement the U.S./Canada Resource Sharing Understanding, 
including any specified TACs (hard or target); changes to 
administrative measures; additional uses for Regular B DAS; reporting 
requirements; declaration requirements pertaining to when and what time 
period a vessel must declare into or out of a fishery management area; 
the GOM Inshore Conservation and Management Stewardship Plan; 
adjustments to the Handgear A or B permits; gear requirements to 
improve selectivity, reduce bycatch, and/or reduce impacts of the 
fishery on EFH; SAP modifications; revisions to the ABC control rule 
and status determination criteria, including, but not limited to, 
changes in the target fishing mortality rates, minimum biomass 
thresholds, numerical estimates of parameter values, and the use of a 
proxy for biomass may be made either through a biennial adjustment or 
framework adjustment; changes to the SBRM, including the CV-based 
performance standard, the means by which discard data are collected/
obtained, fishery stratification, the process for prioritizing observer 
sea-day allocations, reports, and/or industry-funded observers or 
observer set aside programs; and any other measures currently included 
in the FMP.
* * * * *

[FR Doc. 2016-30356 Filed 12-19-16; 8:45 am]
 BILLING CODE 3510-22-P



                                                                         Federal Register / Vol. 81, No. 244 / Tuesday, December 20, 2016 / Proposed Rules                                          92761

                                                    corrects an error regarding the January                 comment period would close on January                    • Electronic Submission: Submit all
                                                    30, 2017, scheduled close date of the                   30, 2017. This date does not allow for                electronic public comments via the
                                                    public comment period and identifies                    a 60-day public comment period.                       Federal e-Rulemaking Portal. Go to
                                                    that comments must be received by                       Therefore, we are correcting the date                 www.regulations.gov/
                                                    February 6, 2017. This document also                    and inserting the date of February 6,                 #!docketDetail;D=NOAA-NMFS-2015-
                                                    corrects the reference number used to                   2017, allowing for a 60-day public                    0143, click the ‘‘Comment Now!’’ icon,
                                                    identify public comments submitted                      comment period. We are also correcting                complete the required fields, and enter
                                                    electronically through the Federal                      the Federal Docket Management System                  or attach your comments.
                                                    eRulemaking portal.                                     reference number associated with this                    • Mail: Submit written comments to
                                                    DATES: Comments on the proposed rule                    proposed rule so that public comments                 John K. Bullard, Regional
                                                    published in the Federal Register on                    submitted electronically through                      Administrator, NMFS, Greater Atlantic
                                                    December 8, 2016 (81 FR 88639), must                    www.regulations.gov will be associated                Regional Fisheries Office, 55 Great
                                                    be received by February 6, 2017.                        correctly with this proposed rule.                    Republic Drive, Gloucester, MA 01930.
                                                    ADDRESSES: You may submit comments,                       In the proposed rule (81 FR 88639)                  Mark the outside of the envelope:
                                                    information, or data on this document,                  published on December 8, 2016, the                    ‘‘Comments on Northeast Multispecies
                                                    identified by the code NOAA–NMFS–                       DATES and ADDRESSES sections are                      Amendment 18.’’
                                                    2014–0157 by any of the following                       corrected as set above in this document.                 Instructions: Comments sent by any
                                                    methods:                                                  Dated: December 15, 2016.
                                                                                                                                                                  other method, to any other address or
                                                       • Electronic Submissions: Submit all                                                                       individual, or received after the end of
                                                                                                            Samuel D. Rauch, III,
                                                    electronic comments via the Federal                                                                           the comment period, may not be
                                                                                                            Deputy Assistant Administrator for                    considered by NMFS. All comments
                                                    eRulemaking Portal. Go to                               Regulatory Programs, National Marine
                                                    www.regulations.gov/                                    Fisheries Service.
                                                                                                                                                                  received are a part of the public record
                                                    #!docketDetail;D=NOAA-NMFS-2014-                                                                              and will generally be posted for public
                                                                                                            [FR Doc. 2016–30659 Filed 12–19–16; 8:45 am]
                                                    0157, click the ‘‘Comment Now!’’ icon,                                                                        viewing on www.regulations.gov
                                                                                                            BILLING CODE 3510–22–P
                                                    complete the required fields, and enter                                                                       without change. All personal identifying
                                                    or attach your comments;                                                                                      information (e.g., name, address, etc.),
                                                       • Mail: NMFS, Southeast Regional                     DEPARTMENT OF COMMERCE                                confidential business information, or
                                                    Office, 263 13th Avenue South, St.                                                                            otherwise sensitive information
                                                    Petersburg, FL 33701;                                   National Oceanic and Atmospheric                      submitted voluntarily by the commenter
                                                       • Hand delivery: You may hand                        Administration                                        may be publicly accessible. NMFS will
                                                    deliver written information to our office                                                                     accept anonymous comments (enter
                                                    during normal business hours at the                     50 CFR Part 648                                       ‘‘N/A’’ in the required fields if you wish
                                                    street address given above.                                                                                   to remain anonymous). Attachments to
                                                       Instructions: Comments must be                       [Docket No. 150630567–6999–01]                        electronic comments will be accepted in
                                                    submitted by one of the above methods                                                                         Microsoft Word, Excel, or Adobe PDF
                                                                                                            RIN 0648–BF26
                                                    to ensure that the comments are                                                                               file formats only.
                                                    received, documented, and considered                    Fisheries of the Northeastern United                     Written comments regarding the
                                                    by NMFS. Comments sent by any other                     States; Amendment 18 to the                           burden-hour estimates or other aspects
                                                    method, to any other address or                         Northeast Multispecies Fishery                        of the collection-of-information
                                                    individual, or received after the end of                Management Plan                                       requirements contained in this proposed
                                                    the comment period, may not be                                                                                rule may be submitted to the Greater
                                                    considered. All comments received are                   AGENCY:  National Marine Fisheries                    Atlantic Regional Fisheries Office and
                                                    a part of the public record and will                    Service (NMFS), National Oceanic and                  by email to OIRA_Submission@
                                                    generally be posted for public viewing                  Atmospheric Administration (NOAA),                    omb.eop.gov or fax to (202) 395–7285.
                                                    on www.regulations.gov without change.                  Commerce.                                                Copies of Amendment 18, including
                                                    All personal identifying information                    ACTION: Proposed rule; request for                    its environmental impact statement,
                                                    (e.g., name, address, etc.) submitted                   comments.                                             preliminary Regulatory Impact Review,
                                                    voluntarily by the sender will be                                                                             and Initial Regulatory Flexibility
                                                    publicly accessible. Do not submit                      SUMMARY:   We are proposing regulations               Analysis (EIS/RIR/IRFA), are available
                                                    confidential business information, or                   to implement Amendment 18 to the                      from the New England Fishery
                                                    otherwise sensitive or protected                        Northeast Multispecies Fishery                        Management Council, 50 Water Street,
                                                    information. NMFS will accept                           Management Plan. Amendment 18 was                     Newburyport, MA 01950. The EIS/RIR/
                                                    anonymous comments (enter ‘‘N/A’’ in                    developed by the New England Fishery                  IRFA is also accessible via the Internet
                                                    the required fields if you wish to remain               Management Council to promote fleet                   at: www.greateratlantic.fisheries.noaa
                                                    anonymous).                                             diversity in the groundfish fishery and               .gov.
                                                                                                            enhance sector management. This action                FOR FURTHER INFORMATION CONTACT:
                                                    FOR FURTHER INFORMATION CONTACT:
                                                                                                            proposes to limit the number of permits               William Whitmore, Fishery Policy
                                                    Laura Engleby or Calusa Horn, NMFS,
                                                                                                            and annual groundfish allocation that                 Analyst, 978–281–9182.
                                                    Southeast Regional Office (727) 824–
                                                                                                            an entity could hold. This action also
                                                    5312 or Marta Nammack, NMFS, Office                                                                           SUPPLEMENTARY INFORMATION:
                                                                                                            removes several effort restrictions to
                                                    of Protected Resources (301) 427–8469.
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                                                                                                            increase operational flexibility for                  Background
                                                    Correction                                              limited access handgear vessels.                        Since the approval of Amendment 16
                                                      The proposed rule that published in                   DATES: Comments must be received on                   to the Northeast Multispecies Fishery
                                                    the Federal Register on December 8,                     or before February 3, 2017.                           Management Plan (FMP) and the
                                                    2016 (81 FR 88639) contained the wrong                  ADDRESSES: You may submit comments                    expanded use of catch shares in the
                                                    closure date for the public comment                     on this document, identified by NOAA–                 groundfish fishery, many industry
                                                    period. The original language                           NMFS–2015–0143, by any of the                         members and stakeholders have become
                                                    incorrectly stated that the public                      following methods:                                    increasingly concerned about excessive


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                                                    92762                Federal Register / Vol. 81, No. 244 / Tuesday, December 20, 2016 / Proposed Rules

                                                    fleet consolidation and lack of diversity               participation through sectors and permit              necessary. The final report was
                                                    with regards to the composition of the                  banks;                                                completed in December 2013, and was
                                                    fishing fleet. Amendment 18 was                            2. Enhance sector management to                    peer reviewed in June 2014 by three
                                                    developed to address these concerns,                    effectively engage industry to achieve                reviewers from the Center for
                                                    primarily by limiting both the number                   management goals and improve data                     Independent Experts and one
                                                    of permits and allocation an individual                 quality;                                              independent reviewer. A variation of
                                                    or entity could hold (referred to as an                    3. Promote resilience and stability of             Compass Lexecon’s recommendation is
                                                    entity from here on).                                   fishing businesses by encouraging                     proposed in this action.
                                                       Development of Amendment 18 began                    diversification, quota utilization, and
                                                                                                                                                                  Accumulation Limit Guidelines
                                                    in 2011, with initial public scoping                    capital investment; and
                                                    taking place between December 2011                         4. Prevent any individual(s),                         Amendment 18 includes several
                                                    and March 2012. Subsequently, the                       corporation(s), or other entity(ies) from             general measures detailing how permit
                                                    stock status for many groundfish stocks                 acquiring or controlling excessive shares             accumulation limits would be applied.
                                                    declined and the associated annual                      of the fishery access privileges.                        • Accumulation limits apply to
                                                    catch limits were significantly reduced.                                                                      individuals, permit banks, and other
                                                                                                            Proposed Measures                                     entities, including groundfish sectors, at
                                                    As a result, some groundfish fishermen
                                                    were concerned that implementing an                       The goals and objectives of                         the individual permit and PSC level.
                                                    accumulation limit could be                             Amendment 18 are addressed through                       • Accumulation limits do not apply
                                                    problematic if it reduced flexibility and               two mechanisms. First, this action                    to the amount of annual groundfish
                                                    prevented them from obtaining                           proposes to establish accumulation                    allocated to a sector, technically referred
                                                    additional quota necessary to maintain                  limits on the number of groundfish                    to as a sector’s annual catch entitlement,
                                                    viable fishing operations.                              permits and the amount of Potential                   or ACE.
                                                                                                            Sector Contribution (PSC) that an entity                 • Accumulation limits may be
                                                       However, many industry members
                                                                                                            may hold. PSC is the proportion of total              modified in a future framework due to
                                                    and stakeholders remained concerned
                                                                                                            landings of a particular stock associated             a Federal permit buyback or buyout.
                                                    that excessive consolidation is a risk to                                                                        • If an entity held permits or PSC on
                                                    the fishery. Several groundfish stocks,                 with the landing history of a limited
                                                                                                            access permit. PSC also represents the                the control date (April 7, 2011) that
                                                    particularly Georges Bank haddock,                                                                            exceeded the accumulation limits, it
                                                    redfish, and pollock, continue to grow                  share of allocation that an individual
                                                                                                            permit contributes to a sector. Second,               would be exempt from the accumulation
                                                    and remain consistently                                                                                       limit, but would be restricted to holding
                                                    underharvested. As other stocks rebuild                 this action proposes to remove several
                                                                                                            restrictions on limited access handgear               no more permits or PSC than it held as
                                                    and quotas increase, there may be                                                                             of the control date. The grandfathered
                                                    further consolidation and decreased                     vessels (Handgear A permitted vessels)
                                                                                                            to promote that small-boat fishery.                   holdings may be fished or leased by the
                                                    diversity if vessels are able to earn                                                                         entity but are not transferrable. Current
                                                    above market rates of return and have an                1. Accumulation Limits                                analyses suggest that no entity exceeds
                                                    opportunity to acquire more permits.                                                                          the control date accumulation limits.
                                                       Under the Magnuson-Stevens Fishery                   Background
                                                                                                                                                                     • There is no calculation of partial
                                                    Conservation and Management Act                            The New England Fishery                            ownership when considering
                                                    (Magnuson-Stevens Act), we are                          Management Council contracted                         accumulation limits. Any entity that is
                                                    required to publish proposed rules for                  Compass Lexecon, an economic                          a partial owner is assumed to have full-
                                                    comment after preliminarily                             consulting firm, to provide independent               ownership when calculating permit and
                                                    determining whether they are consistent                 advice regarding the establishment of                 PSC accumulation limits.
                                                    with applicable law. The Magnuson-                      northeast multispecies permit
                                                    Stevens Act permits us to approve,                      accumulation limits. The Council tasked               Limiting the Number of Permits
                                                    partially approve, or disapprove                        Compass Lexecon to determine whether                     This action proposes to limit an entity
                                                    measures proposed by the Council                        any entity already holds an excessive                 to holding no more than 5 percent of all
                                                    based only on whether the measures are                  share of permits, and if not, what an                 limited access groundfish permits. An
                                                    consistent with the fishery management                  excessive share would be in the                       entity would be prohibited from
                                                    plan, plan amendment, the Magnuson-                     groundfish fishery. Compass Lexecon                   acquiring a permit that would result in
                                                    Stevens Act and its National Standards,                 defined an excessive share as a share of              it exceeding the 5-percent permit cap.
                                                    and other applicable law. Otherwise, we                 quota that would allow a permit owner                 There are approximately 1,373 limited
                                                    must defer to the Council’s policy                      or sector to influence the prices of the              access permits currently in the fishery;
                                                    choices. We are seeking comment on the                  fishery’s output or the prices paid for               a 5-percent cap would limit an entity to
                                                    Council’s proposed measures in                          leased quota to its advantage, which is               approximately 69 permits. As of May 1,
                                                    Amendment 18 and whether they are                       called market power. Compass                          2014, the most permits held by any
                                                    consistent with the Northeast                           Lexecon’s analyses did not find that                  entity is 55. Therefore, if approved, this
                                                    Multispecies FMP, the Magnuson-                         market power is currently being                       alternative is unlikely to immediately
                                                    Stevens Act and its National Standards,                 exercised through the withholding of                  restrict any entity.
                                                    and other applicable law.                               quota in any part of the groundfish                      Using this permit cap alone could still
                                                       The primary purpose of this action is                fishery, or in the sales of fish or                   allow for accumulation of PSC sufficient
                                                    to limit the level of allocation that an                transfers of permits.                                 to exert market power in limited and
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                                                    entity may control to prevent excessive                    Compass Lexecon recommended                        unlikely circumstances. For example, if
                                                    consolidation and retain fleet diversity.               setting an excessive-share cap on the                 only a 5-percent permit cap was
                                                       The Council identified four goals for                PSC conferred to a permit holder at 15.5              adopted, an entity could potentially
                                                    Amendment 18:                                           percent of the available PSC for any                  hold 85 PSC of the Georges Bank winter
                                                       1. Promote a diverse groundfish                      groundfish stock. Analyses suggested                  flounder stock. To address this
                                                    fishery, including different gear types,                that this cap would prevent the                       potential, the Council proposed an
                                                    vessel sizes, ownership patterns,                       accumulation of excessive shares, and                 additional PSC limit proposed in this
                                                    geographic locations, and levels of                     that a lower limit was likely not                     action.


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                                                                         Federal Register / Vol. 81, No. 244 / Tuesday, December 20, 2016 / Proposed Rules                                          92763

                                                    Limiting the Potential Sector                           limit of 232.5 would require substantial              limited access permits (due to permit
                                                    Contribution                                            capital and logistically would likely be              holders relinquishing their permits),
                                                       This action also proposes to limit the               complex and time consuming. As a                      then NMFS would encourage the
                                                    aggregated average of all allocated                     result, the increased flexibility for                 Council to revisit the accumulation
                                                    groundfish stocks PSC that may be held                  accumulating PSC in individual stocks                 limits proposed in this Amendment.
                                                    by an entity to no more than 15.5. With                 is curbed by the combination of the PSC
                                                                                                                                                                  Ownership Interest
                                                    15 groundfish stocks currently allocated                limit and the permit caps.
                                                                                                                                                                     In order for an accumulation limit to
                                                    to the fishery, the total PSC across all                Effect of Combined Accumulation                       be developed and applied it is necessary
                                                    stocks used by an individual or an                      Limits                                                to first define an ownership interest. A
                                                    entity must be ≤232.5 (an average of                       The combination of PSC limits and                  unique definition of ownership interest
                                                    15.5 per stock multiplied by 15 stocks).                the permit cap make it highly unlikely                as applied to the groundfish fishery is
                                                    This would allow an entity to hold PSC                  that market power could be exerted.                   proposed for section 50 CFR 648.2 of the
                                                    for a single stock in excess of 15.5, so                Analyses show that the maximum                        regulations. To better identify
                                                    long as the total holdings used do not                  allocation that an entity could acquire               ownership interest and account for
                                                    exceed 232.5. If additional groundfish                  would be around 20 PSC for the                        accumulation limits in the groundfish
                                                    stocks are allocation (or unallocated) to               majority of stocks, though PSC for                    fishery, a permit holder would be
                                                    sectors in the future, then this number                 certain stocks such as Georges Bank                   required to identify all persons who
                                                    would change by 15.5 per stock.                         winter flounder could be acquired at                  hold an ownership interest with a
                                                       This PSC limit was developed based                   higher levels than others. These                      particular permit when submitting a
                                                    on Compass Lexecon’s recommendation                     analyses suggest that the proposed                    groundfish permit application or
                                                    to establish a stock-specific PSC limit of              combination of an aggregate PSC limit of              renewal form.
                                                    15.5 (as explained above). However, to                  232.5 and a 5-percent permit cap should
                                                    allow fishermen additional operational                                                                        2. Handgear A Measures
                                                                                                            be sufficient to prevent market power
                                                    flexibility in light of current groundfish              from being exerted. These analyses are                   To reduce effort controls and increase
                                                    stock conditions, the Council elected to                discussed in more detail in sections                  flexibility for small boat fishermen, this
                                                    use an aggregate average as defined                     7.7.4.5 and 9.11 of the Amendment 18                  action proposes to remove or modify
                                                    above. Compared to other PSC limit                      EIS (see ADDRESSES).                                  several management measures affecting
                                                    alternatives that the Council considered,                                                                     limited access permitted vessels fishing
                                                    this option is the least restrictive                    Transfer of Permits by an Individual                  with handgear (Handgear A vessels).
                                                    because there is no stock-specific limit.               Entity That Has Exceeded the PSC Limit                   First, this action would remove the
                                                    Further, an entity would be permitted to                   We have some concern that                          March 1–20 spawning-block closure for
                                                    purchase a vessel permit during a                       Amendment 18 does not include any                     all Handgear A vessels. Fishing effort by
                                                    fishing year that would result in                       permit transfer restrictions on an                    Handgear A vessels is restricted by a
                                                    exceeding the aggregate 232.5 PSC limit.                individual entity that has exceeded the               very small annual catch limit, and
                                                    In this case, the entity would have to                  permit accumulation limit. As                         vessels are subject to other spawning
                                                    render at least one permit unusable (or                 proposed, an individual who has                       closures. This measure would make the
                                                    ‘‘shelve’’ the permit) so that the entity               exceeded the permit accumulation limit                regulations for Handgear A vessels more
                                                    is not operating above the PSC limit the                could maintain an interest in the PSC by              consistent with vessels fishing in
                                                    following fishing year. A shelved permit                transferring a permit to a spouse, family             sectors, which are already exempted
                                                    would be unusable for an entire fishing                 member, or business partner at little to              from the 20-day spawning block and is
                                                    year; a shelved permit could not be                     no cost. We see this as a potential                   not anticipated to have any substantial
                                                    enrolled in a sector, fished, or leased,                loophole to the PSC limit restriction.                biological consequences.
                                                    but could be sold. An entity would be                   Including a requirement that any permit                  Handgear A vessels would also no
                                                    prohibited from purchasing any                          transfer from an entity that has                      longer be required to carry a standard
                                                    additional permit once it exceeds the                   exceeded the permit accumulation limit                fish tote on board. This measure was
                                                    PSC limit. This is intended to allow a                  be an ‘‘arms-length’’ transaction would               initially implemented to aid in the
                                                    permit holder to acquire a new permit                   address this potential loophole. In this              sorting and weighing of fish by both
                                                    and improve their operational                           case, an arms-length transaction would                fishermen and enforcement personnel.
                                                    flexibility, while still restricting them to            be a permit transfer in the ordinary                  However, enforcement no longer uses
                                                    the overall accumulation limit. A                       course of business between independent                totes for at-sea weight and volume
                                                    shelved permit that is rendered                         and unrelated entities, which would                   estimates, so the requirement for vessels
                                                    unusable can be sold.                                   result in the owner who exceeded the                  to carry a tote is no longer necessary.
                                                       The aggregate limit provides                         limit maintaining no interest in the                     Lastly, this action would allow a
                                                    flexibility for accumulating shares in                  transferred permit and its PSC. We                    sector to request an exemption from the
                                                    single stocks. By itself, an aggregate PSC              welcome comment on this topic.                        requirement for Handgear A vessels to
                                                    limit could result in an entity                                                                               use a Vessel Monitoring System (VMS).
                                                    accumulating sufficient PSC in a single                 Future Changes to Accumulation Limits                 Handgear A fishermen enrolled in a
                                                    stock to exert market power, though                        Amendment 18 proposes to allow                     sector are currently required to utilize a
                                                    exerting market power over multiple                     modifications to the accumulation                     VMS. Handgear A fishermen have
                                                    stocks appears highly unlikely. Recent                  limits through a future framework                     commented that installing and utilizing
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                                                    analyses indicate that no one entity                    adjustment if a vessel/permit buyback or              a VMS system makes enrolling in a
                                                    currently holds more than 140.4 PSC.                    buyout were enacted in the groundfish                 sector cost prohibitive. Any sector
                                                    Consequently, if approved, the 232.5                    fishery. However, any other changes to                interested in utilizing this exemption
                                                    PSC limit is unlikely to immediately                    the accumulation limits would require                 would be required to submit an
                                                    constrain any entity. Analyses within                   an amendment to the FMP. Should                       exemption request to us for approval. If
                                                    sections 7.6 and 9.11 of the Amendment                  certain factors change dramatically,                  a sector exemption is approved, a
                                                    suggest that purchasing vessel permits                  such as a substantial reduction in the                Handgear A vessel fishing within a
                                                    with enough PSC to exceed the PSC                       number of northeast multispecies                      sector utilizing the exemption would


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                                                    92764                Federal Register / Vol. 81, No. 244 / Tuesday, December 20, 2016 / Proposed Rules

                                                    declare its trips through the interactive               purpose of implementing Amendment                     agency considers alternatives that
                                                    voice response (IVR) call-in system                     18.                                                   minimize the expected impacts while
                                                    instead of through a VMS. This measure                                                                        meeting the goals and objectives of the
                                                                                                            Classification
                                                    is intended to encourage Handgear A                                                                           FMP and applicable statutes.
                                                    vessels to enroll in a sector by reducing                  Pursuant to section 304(b)(1)(A) of the               With certain exceptions, the RFA
                                                    operating expenses. Sectors receive                     Magnuson-Stevens Act, the NMFS                        requires agencies to conduct an Initial
                                                    regulatory exemptions and larger                        Assistant Administrator has                           Regulatory IRFA for each proposed rule.
                                                    allocations that could provide                          preliminarily determined that this                    The IRFA is designed to assess the
                                                    additional flexibility and fishing                      proposed rule is consistent with                      impacts various regulatory alternatives
                                                    opportunities to Handgear A vessels.                    Amendment 18, the FMP, other                          would have on small entities, including
                                                                                                            provisions of the Magnuson-Stevens                    small businesses, and to determine ways
                                                    Measures That Could Be Addressed in                     Act, and other applicable law, subject to             to minimize those impacts. An IRFA is
                                                    a Future Framework                                      further consideration after public                    primarily conducted to determine
                                                       This action proposes to allow two                    comment.                                              whether the proposed action would
                                                    measures analyzed in Amendment 18 to                       This proposed rule has been                        have a ‘‘significant economic impact on
                                                    be implemented through a future                         determined to be not significant for                  a substantial number of small entities.’’
                                                    framework action. The Council explored                  purposes of Executive Order 12866.                    In addition to analyses conducted for
                                                                                                               The Council prepared an                            the RIR, the IRFA provides:
                                                    establishing a separate allocation for the
                                                                                                            environmental impact statement (EIS)                     1. A description of the reasons why
                                                    Handgear A fishery. Additionally, there
                                                                                                            for Amendment 18 that analyzes the                    action by the agency is being
                                                    was some interest in considering
                                                                                                            impacts on the environment as a result                considered;
                                                    separate management measures for an
                                                                                                            of this action. A copy of the                            2. A succinct statement of the
                                                    inshore/offshore Gulf of Maine (GOM)
                                                                                                            Amendment 18 EIS is available upon                    objectives of, and legal basis for, the
                                                    boundary, including separate
                                                                                                            request from the Council and from our                 proposed rule;
                                                    allocations for inshore and offshore
                                                                                                            Web site (see ADDRESSES). A copy is also                 3. A description and, where feasible,
                                                    GOM cod. However, because current
                                                                                                            available from the Federal e-Rulemaking               an estimate of the number of small
                                                    catch limits for key groundfish stocks,
                                                                                                            portal at www.regulations.gov. Type                   entities to which the proposed rule will
                                                    including GOM cod, are so low, further                  ‘‘NOAA–NMFS–2015–0143’’ in the
                                                    sub-dividing allocations for the                                                                              apply;
                                                                                                            Enter Keyword or ID field and click                      4. A description of the projected
                                                    Handgear A, as well as inshore and                      search.
                                                    offshore GOM cod, were controversial                                                                          reporting, record-keeping, and other
                                                                                                               An initial regulatory flexibility                  compliance requirements of the
                                                    and would be difficult to develop and                   analysis (IRFA) was prepared, as
                                                    implement at this time. As a result, the                                                                      proposed rule, including an estimate of
                                                                                                            required by section 603 of the                        the classes of small entities which will
                                                    Council elected to potentially consider                 Regulatory Flexibility Act (RFA). The
                                                    these measures in a future framework.                                                                         be subject to the requirements of the
                                                                                                            IRFA describes the economic impact                    report or record; and,
                                                       In addition, several regulatory                      that this proposed rule, if adopted,
                                                    clarifications are proposed at § 648.90 to                                                                       5. Identification, to the extent
                                                                                                            would have on small entities. A                       practicable, of all relevant federal rules,
                                                    better delineate the responsibilities of                description of the action, why it is being
                                                    the groundfish plan development team                                                                          which may duplicate, overlap, or
                                                                                                            considered, and the legal basis for this              conflict with the proposed rule.
                                                    as well as which Council management                     action are contained at the beginning of
                                                    measures could be modified in a future                  this section, in the preamble, and in the             Description of the Reasons Why Action
                                                    framework.                                              SUMMARY section of the preamble. A                    by the Agency Is Being Considered
                                                       Public comments on the NOA for the                   summary of the IRFA follows. A copy of                  The purpose and need of Amendment
                                                    FMP/amendment are being solicited                       this analysis is available from the                   18 are set forth in Section 3.2 of the EIS
                                                    through February 6, 2017 (81 FR 87862;                  Council (see ADDRESSES).                              (see page 30).
                                                    December 6, 2016). Public comments on                      The purpose of the Regulatory
                                                    the proposed rule must be received by                   Flexibility Act (RFA) analysis is to                  Statement of the Objectives of, and
                                                    the end of the comment period on the                    establish a principle of regulatory                   Legal Basis for, This Proposed Rule
                                                    Amendment, as published in the NOA,                     issuance that agencies shall endeavor,                  The goals and objectives of
                                                    to be considered in the approval/                       consistent with the objectives of the rule            Amendment 18 are set forth in Section
                                                    disapproval decision on the                             and of applicable statutes, to fit                    3.3 of the EIS (see page 31–32). These
                                                    Amendment. All comments received by                     regulatory and informational                          were also summarized in the
                                                    the end of the comment period on the                    requirements to the scale of businesses,              Background section of the preamble.
                                                    Amendment, whether specifically                         organizations, and governmental
                                                    directed to the Amendment, or the                       jurisdictions subject to regulation. To               Description and Estimate of the Number
                                                    proposed rule, will be considered in the                achieve this principle, agencies are                  of Small Entities To Which This
                                                    approval/disapproval decision.                          required to solicit and consider flexible             Proposed Rule Would Apply
                                                    Comments received after that date will                  regulatory proposals and to explain the                  Small entities include ‘‘small
                                                    not be considered in the approval/                      rationale for their actions to assure such            businesses,’’ ‘‘small organizations,’’ and
                                                    disapproval decision on Amendment                       proposals are given serious                           ‘‘small governmental jurisdictions.’’ The
                                                    18. To be considered, comments must                     consideration. The RFA does not                       Small Business Administration (SBA)
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                                                    be received by close of business on the                 contain any decision criteria. Instead,               has established size standards for all
                                                    last day of the comment period; that                    the purpose of the RFA is to inform the               major industry sectors in the U.S.
                                                    does not mean postmarked or otherwise                   agency, as well as the public, of the                 including commercial finfish harvesters
                                                    transmitted by that date.                               expected economic impacts of various                  (NAICS code 114111), commercial
                                                       Pursuant to section 303(c) of the                    alternatives contained in the FMP or                  shellfish harvesters (NAICS code
                                                    Magnuson-Stevens Act, the Council has                   Amendment (including framework                        114112), other commercial marine
                                                    deemed the proposed regulations to be                   management measures and other                         harvesters (NAICS code 114119), for-
                                                    necessary and appropriate for the                       regulatory actions) and to ensure the                 hire businesses (NAICS code 487210),


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                                                                                Federal Register / Vol. 81, No. 244 / Tuesday, December 20, 2016 / Proposed Rules                                                                 92765

                                                    marinas (NAICS code 713930), seafood                                 gross sale per entity being less than $2               complete calendar year that have
                                                    dealers/wholesalers (NAICS code                                      million. As a result, it is unlikely that              applied for any type of Northeast
                                                    424460), and seafood processors (NAICS                               any finfish, or more specifically,                     Federal fishing permit. The current
                                                    code 311710). A business primarily                                   groundfish-dependent vessels, would be                 ownership data set is based on calendar
                                                    involved in finfish harvesting is                                    considered a large business under the                  year 2014 permits and contains gross
                                                    classified as a small business if it is                              new NMFS size standard.                                sales associated with those permits for
                                                    independently owned and operated, is                                    Amendment 18 regulates commercial                   calendar years 2012 through 2014. As of
                                                    not dominant in its field of operation                               fish harvesting entities engaged in the                June 1, 2015, there were 661 commercial
                                                    (including its affiliates), and has                                  Northeast multispecies limited access                  business entities potentially regulated
                                                    combined annual receipts not in excess                               fishery. A description of the specific                 by this action. Entities permitted to
                                                    of $20.5 million for all its affiliated                              entities that are likely to be impacted is             operate in the Northeast multispecies
                                                    operations worldwide. For commercial                                 included below for informational                       limited access fishery are described in
                                                    shellfish harvesters, the other qualifiers                           purposes, followed by a discussion of                  Tables 1 and 2. As of June 1, 2015, there
                                                    apply and the receipts threshold is $5.5                             those regulated entities likely to be                  were 1,147 individual limited access
                                                    million. For other commercial marine                                 impacted by the proposed regulations.                  permits. The 34 for-hire businesses
                                                    harvesters, for-hire businesses, and                                 For the purposes of the RFA analysis,                  included here are entities affiliated with
                                                    marinas, the other qualifiers apply and                              the ownership entities, not the                        limited access commercial groundfish
                                                    the receipts threshold is $7.5 million.                              individual vessels, are considered the                 permits, but derive greater than 50% of
                                                       On December 29, 2015, the National                                regulated entities.                                    their gross sales from party/charter
                                                    Marine Fisheries Service (NMFS) issued                                                                                      operations. All are small businesses
                                                    a final rule establishing a small business                           Ownership Entities in Regulated
                                                                                                                         Commercial Harvesting Businesses                       (average gross revenues from 2012–14
                                                    size standard of $11 million in annual                                                                                      are less than $7.5 million). The
                                                    gross receipts for all businesses                                       Individually-permitted vessels may                  remaining 75 entities had no revenue
                                                    primarily engaged in the commercial                                  hold permits for several fisheries,                    and are classified as small.
                                                    fishing industry (NAICS 11411) for                                   harvesting species of fish that are                       These totals may mask some diversity
                                                    Regulatory Flexibility Act (RFA)                                     regulated by several different FMPs,                   among the entities. Many, if not most,
                                                    compliance purposes only (80 FR                                      even beyond those impacted by                          of these ownership entities maintain
                                                    81194, December 29, 2015). The $11                                   Amendment 18. Furthermore, multiple                    diversified harvest portfolios, obtaining
                                                    million standard became effective on                                 permitted vessels and/or permits may be                gross sales from many fisheries and are
                                                    July 1, 2016, and is to be used in place                             owned by entities affiliated by stock                  not dependent on any one. However,
                                                    of the U.S. Small Business                                           ownership, common management,                          not all are equally diversified. Those
                                                    Administration’s (SBA) current                                       identity of interest, contractual                      that depend most heavily on sales from
                                                    standards of $20.5 million, $5.5 million,                            relationships, or economic dependency.                 harvesting species impacted directly by
                                                    and $7.5 million for the finfish (NAICS                              For this analysis, ownership entities are              Amendment 18 are most likely to be
                                                    114111), shellfish (NAICS 114112), and                               defined by those entities with common                  affected. By defining dependence as
                                                    other marine fishing (NAICS 114119)                                  ownership personnel as listed on permit                deriving greater than 50% of gross sales
                                                    sectors of the U.S. commercial fishing                               application documentation. Only                        from sales of regulated species
                                                    industry in all NMFS rules subject to                                permits with identical ownership                       associated with a specific fishery, those
                                                    the RFA after July 1, 2016. Id. at 81194.                            personnel are categorized as an                        ownership groups most likely to be
                                                       Pursuant to the RFA, and prior to July                            ownership entity. For example, if five                 impacted by the proposed regulations
                                                    1, 2016, an IRFA was developed for this                              permits have the same seven personnel                  can be identified. Using this threshold,
                                                    regulatory action using SBA’s former                                 listed as co-owners on their application               61 entities are groundfish-dependent; all
                                                    size standards. NMFS has reviewed the                                paperwork, those seven personnel form                  of which are small under both the SBA
                                                    analyses prepared for this regulatory                                one ownership entity, covering those                   and NMFS size standards (Table 3).
                                                    action in light of the new size standard.                            five permits. If one or several of the
                                                    Under the SBA’s size standards, all of                               seven owners also own additional                         TABLE 1—ENTITIES REGULATED BY
                                                    the commercial finfish and other marine                              vessels, with sub-sets of the original                        THE PROPOSED ACTION
                                                    fishing businesses were considered                                   seven personnel or with new co-owners,
                                                    small, while 12 of the 237 shellfish                                 those ownership arrangements are                                                                         Number
                                                    businesses were determined not to be                                 deemed to be separate ownership                                    Type                      Number       small
                                                    small (Tables 1 and 2). The new                                      entities for the purpose of this analysis.
                                                    standard could result in a few more                                                                                         Primarily finfish .............             315      315
                                                    commercial shellfish businesses being                                Regulated Commercial Harvesting                        Primarily shellfish ..........              237      225
                                                    considered small. Analyses in Tables 2                               Entities                                               Primarily for-hire ...........               34       34
                                                    and 3 below reveal that no groundfish-                                  Ownership entities are identified on                No Revenue ..................                75       75
                                                    dependent entities exceeded $5.5                                     June 1 of each year based on the list of                    Total .......................          661      649
                                                    million in gross sales, with the mean                                all permit numbers for the most recent

                                                                                                   TABLE 2—DESCRIPTION OF REGULATED ENTITIES BY GROSS SALES
                                                                             Sales                                                         Number               Mean             Median             Mean permits            Max permits
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                                                                                                                       Number
                                                                            category                                                        small            gross sales       gross sales           per entity              per entity

                                                    <$50K .......................................................               186                   186         $10,597            $1,954                           1.3             30
                                                    $50–100K .................................................                   71                    71          76,466            78,736                           1.3              3
                                                    $100–500K ...............................................                   225                   225         244,672           219,731                           1.3              4
                                                    $500K–1mil ..............................................                    91                    91         734,423           720,668                           1.7              7
                                                    $1–5.5mil ..................................................                 74                    73       1,899,461         1,498,138                           2.4             11
                                                    $5.5mil+ ...................................................                 14                     3      11,900,790         7,383,522                          12.4             28



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                                                    92766                          Federal Register / Vol. 81, No. 244 / Tuesday, December 20, 2016 / Proposed Rules

                                                           TABLE 3—IMPACTED GROUNDFISH-DEPENDENT REGULATED COMMERCIAL GROUNDFISH ENTITIES BY GROSS SALES
                                                                                                                                                Average                Maximum
                                                                                                                                                 fishing                                                                                               Median                      Mean
                                                                                                                                   Large                                fishing              Median gross                Mean gross
                                                                                                                 Entities                       permits                                                                                              groundfish                 groundfish
                                                                          Sales                                                  businesses                             permits               sales per                   sales per
                                                                                                                   (#)                         owned per                                                                                              sales per                  sales per
                                                                                                                                     (#)                               per entity               entity                      entity
                                                                                                                                                  entity                                                                                                entity                     entity
                                                                                                                                                                           (#)
                                                                                                                                                    (#)

                                                    <$50K ................................................                   6            0                 1.0                       1              $10,116                    $20,316                     $8,831                    $16,476
                                                    $50–100K ..........................................                      7            0                 1.1                       2               72,052                     67,390                     56,221                     49,341
                                                    $100–500K ........................................                      22            0                 1.6                       4              226,938                    240,833                    116,018                    172,331
                                                    $500K–1mil .......................................                      13            0                 1.2                       2              698,226                    718,231                    398,548                    491,838
                                                    $1–5.5mil ...........................................                   13            0                 2.2                       4            1,553,597                  1,854,052                  1,292,445                  1,403,896

                                                          Total ownership entities .............                            61            0   ....................   ....................   ........................   ........................   ........................   ........................



                                                    Description of Projected Reporting,                                           information displays a currently valid                                         restrictive. For example, limiting an
                                                    Record Keeping, and Other Compliance                                          OMB control number.                                                            ownership entity to an accumulation
                                                    Requirements of This Proposed Rule                                                                                                                           limit equivalent to the PSC held as of
                                                                                                                                  Federal Rules Which May Duplicate,
                                                                                                                                                                                                                 the control date could have forced
                                                       This action contains a change to an                                        Overlap, or Conflict With This Proposed
                                                                                                                                                                                                                 divestiture in the fishery and would
                                                    information collection requirement,                                           Rule
                                                                                                                                                                                                                 have prevented ownership entities from
                                                    which has been approved by the Office                                           No relevant Federal rules have been                                          growing. Similarly, establishing a
                                                    of Management and Budget (OMB)                                                identified that would duplicate or                                             specific accumulation limit for a
                                                    under OMB Control Number 0648–0202.                                           overlap with Amendment 18.                                                     specific groundfish stock would have
                                                    This revision would require any entity                                                                                                                       reduced opportunities for entities to
                                                    that has exceeded the potential sector                                        Description of Significant Alternatives
                                                                                                                                  to the Proposed Action Which                                                   expand and restricted operational
                                                    contribution (PSC) allocation limit to                                                                                                                       flexibility. Additional information on
                                                    render one or more permits ‘‘unusable’’                                       Accomplish the Stated Objectives of
                                                                                                                                  Applicable Statutes and Which                                                  these alternatives is available in section
                                                    so that the entity would be operating                                                                                                                        4.1 of the Amendment.
                                                    within the allocation limit. If an entity                                     Minimize Any Significant Economic
                                                                                                                                                                                                                    Handgear A permit holders would be
                                                    exceeds the PSC limit, the entity would                                       Impact on Small Entities
                                                                                                                                                                                                                 largely unaffected by the limited access
                                                    be required to complete a ‘‘Permit                                               This IRFA summary is intended to                                            handgear measures. Minimal fishing
                                                    Shelving Form’’ and render one or more                                        analyze how small entities would be                                            activity by these vessels occurs during
                                                    permits unusable. If two entities had to                                      impacted by the proposed management                                            the winter and early spring, and the
                                                    complete a ‘‘Permit Shelving Form’’, the                                      measures. These measures are expected                                          removal of the March 1–20 closure
                                                    burden estimate would be 1 hr and cost                                        to have minimal, if any, impact on small                                       would not change this behavior. The
                                                    $1.                                                                           entities regulated by this action. The                                         removal of the standard fish tote
                                                       Currently, no entity exceeds the PSC                                       vast majority (649 out of 661) of                                              requirement would be inconsequential,
                                                    allocation limit; the most PSC any entity                                     potentially regulated entities are                                             as this rule is not currently enforced and
                                                    holds is approximately 140 PSC, and the                                       classified as small businesses by SBA                                          it is a minor operational change. The
                                                    proposed limit would be 232.5. As a                                           and NMFS business size standards.                                              sector exemption for VMS requirement
                                                    result, it is unlikely that any entity                                           In general, the small entities regulated                                    would likely also not affect Handgear A
                                                    would reach this threshold, and that the                                      by this action would be unaffected. The                                        permit holders. Joining a sector would
                                                    proposed action would not affect fishing                                      majority of limited access groundfish                                          remain a challenge for these permit
                                                    operations.                                                                   permit holders possess permits and PSC                                         holders, given the small PSC associated
                                                                                                                                  in far smaller quantities than the                                             with Handgear A permits. However, if
                                                       Public comment is sought regarding                                         proposed accumulation limits.                                                  they were to join a sector, this provision
                                                    whether this collection of information is                                     However, as proposed, individuals who                                          would reduce the cost burden for those
                                                    necessary for the proper performance of                                       comprise a part of, or the entirety of,                                        vessels.
                                                    the function of the agency, including                                         these small entities could be restricted                                          Several management measures and
                                                    whether the information shall have                                            in the number of permits or the amount                                         alternatives were considered but not
                                                    practical utility; the accuracy of the                                        of PSC shares they wish to accumulate                                          selected by the Council. Other
                                                    burden estimate; ways to enhance the                                          in the future, which could impact                                              alternatives may be considered in a
                                                    quality, utility, and clarify of the                                          revenue. Based on the Compass Lexecon                                          future framework, as explained in the
                                                    information to be collected; and ways to                                      report, scalability would not be affected                                      preamble above. Additional information
                                                    minimize the burden of the collection of                                      by the reduced accumulation potential,                                         on these alternatives and justifications
                                                    information, including through the use                                        although a definitive statement cannot                                         for the Council’s decision are explained
                                                    of automated collection techniques or                                         be made at this time. Further, the PSC                                         in section 4 of the Amendment.
                                                    other forms of information technology.                                        limit alternative would allow
                                                    Send comments on these or any other                                           substantial flexibility so that vessel                                         Impacts to Groundfish-Dependent Small
                                                    aspects of the collection of information                                      permit holders could continue to                                               Entities
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                                                    to NMFS and to OMB (see ADDRESSES).                                           accumulate permits in a manner that                                              The impacts of the proposed
                                                       Notwithstanding any other provision                                        allows them to maximize fishing                                                accumulation limits on groundfish-
                                                    of the law, no person is required to                                          opportunities within their portfolio.                                          dependent small entities would be
                                                    respond to, and no person shall be                                               There were several other PSC limit                                          minimal. No entity would be
                                                    subject to penalty for failure to comply                                      alternatives considered in the                                                 immediately impacted by the proposed
                                                    with, a collection of information subject                                     Amendment that were not selected                                               accumulation limits, and few would be
                                                    to the requirements of the Paperwork                                          because the Council determined the                                             potentially impacted in the long term.
                                                    Reduction Act, unless that collection of                                      alternatives would have been too                                               For those that are potentially impacted,


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                                                                         Federal Register / Vol. 81, No. 244 / Tuesday, December 20, 2016 / Proposed Rules                                           92767

                                                    it is not possible to state whether                        (N) Accumulation Limits. (1) 5-                    mailing address, and telephone number;
                                                    scalability would be lessened. The                      percent Permit/CPH Restriction. Any                   USCG documentation number and a
                                                    proposed PSC and permit caps would                      person with an ownership interest in                  copy of the vessel’s current USCG
                                                    limit the ability of any individual from                the NE multispecies fishery is not                    documentation or, for a vessel not
                                                    monopolizing the fishery.                               eligible to be issued a limited access NE             required to be documented under title
                                                       It is not clear how many Handgear A                  multispecies permit or CPH for a vessel               46 U.S.C., the vessel’s state registration
                                                    permit holders are groundfish-                          after April 7, 2011, if the issuance                  number and a copy of the current state
                                                    dependent, but the number is likely                     results in the person having an                       registration; a copy of the vessel’s
                                                    very small. There were 28 Handgear A                    ownership interest in excess of 5                     current party/charter boat license (if
                                                    permit holders that took at least one                   percent of all limited access NE                      applicable); home port and principal
                                                    groundfish trip during fishing year                     multispecies permits and CPH that are                 port of landing, length overall, GRT, NT,
                                                    2013; any of these 28 would be                          issued as of the date the permit/CPH                  engine horsepower, year the vessel was
                                                    minimally impacted by Amendment 18.                     application is received by the NMFS.                  built, type of construction, type of
                                                    There may be a few trips taken during                      (2) PSC Limit. Any person with an                  propulsion, approximate fish hold
                                                    the removed March 1–20 closure block.                   ownership interest in the NE                          capacity, type of fishing gear used by
                                                    However, groundfish trips taken by                      multispecies fishery is not eligible to be            the vessel, number of crew, number of
                                                    Handgear A permit holders have                          issued a limited access NE multispecies               party or charter passengers licensed to
                                                    generally been more profitable during                   permit or CPH for a vessel after April 7,             be carried (if applicable), permit
                                                    the warmer months in recent years. The                  2011, that results in that person’s                   category; if the owner is a corporation,
                                                    management measures proposed in this                    average potential sector contribution                 a copy of the current Certificate of
                                                    rule would provide greater operational                  (PSC) exceeding a share of 15.5 for all               Incorporation or other corporate papers
                                                    flexibility to Handgear A vessels,                      the allocated stocks in aggregate, except             showing the date of incorporation and
                                                    therefore benefiting small businesses.                  as provided in paragraph (a)(1)(i)(N)(4)              the names of the current officers of the
                                                    List of Subjects in 50 CFR Part 648                     of this section.                                      corporation, and the names and
                                                                                                               (3) Grandfather Provision. Any person              addresses of all persons holding any
                                                      Fisheries, Fishing, Reporting and                     initially issued a limited access NE                  ownership interest in a NE multispecies
                                                    recordkeeping requirements.                             multispecies permit or CPH prior to                   permit or CPH or shareholders owning
                                                      Dated: December 13, 2016.                             April 7, 2011, is eligible to renew such              25 percent or more of the corporation’s
                                                    Samuel D. Rauch III,                                    permits(s) and/or CPH, regardless of                  shares for other fishery permits; if the
                                                    Deputy Assistant Administrator for                      whether the renewal of the permits or                 owner is a partnership, a copy of the
                                                    Regulatory Programs, National Marine                    CPH results in the person exceeding the               current Partnership Agreement and the
                                                    Fisheries Service.                                      5-percent ownership restriction or an                 names and addresses of all partners;
                                                      For the reasons stated in the                         average PSC share of 15.5 for all the                 permit number of any current or, if
                                                    preamble, 50 CFR part 648 is proposed                   allocated stocks in aggregate. Any                    expired, previous Federal fishery permit
                                                    to be amended as follows:                               additional permitted vessels that a                   issued to the vessel.
                                                                                                            person acquires after April 7, 2011, are              *     *     *     *     *
                                                    PART 648—FISHERIES OF THE                               subject to the accumulation limits                    ■ 4. In § 648.14,
                                                    NORTHEASTERN UNITED STATES                              specified within this section.                        ■ a. Add paragraphs (k)(2)(v) and (vi);
                                                                                                               (4) Any person can be issued one                   ■ b. Revise paragraph (k)(9)(i); and
                                                    ■ 1. The authority citation for part 648                limited access NE multispecies permit                 ■ c. Add paragraph (k)(9)(ii)(N) to read
                                                    continues to read as follows:                           or CPH that results in that person’s total            as follows:
                                                        Authority: 16 U.S.C. 1801 et seq.                   PSC exceeding the PSC limit as
                                                                                                            described in this section. That person                § 648.14   Prohibitions.
                                                    ■  2. In § 648.2, add a definition for
                                                    ‘‘Ownership interest’’ in alphabetical                  must identify to NMFS on or before                    *       *    *     *     *
                                                    order to read as follows:                               March 31 of each year, vessel permits or                 (k) * * *
                                                                                                            CPH that will be rendered unusable the                   (2) * * *
                                                    *      *     *     *     *                              upcoming fishing year so that the                        (v) Fish for, possess, land fish, enroll
                                                       Ownership interest, in the NE
                                                                                                            person’s total PSC for the upcoming                   in a sector, or lease a permit or
                                                    multispecies fishery, includes, but is not
                                                                                                            fishing year is an amount equal to or                 confirmation of permit history (CPH) as
                                                    limited to holding share(s) or stock in
                                                                                                            below the PSC limit. Beginning on May                 a lessor or lessee, with a permit that has
                                                    any corporation, any partnership
                                                                                                            1, the permits or CPH rendered                        been rendered unusable as specified in
                                                    interest, or membership in a limited
                                                                                                            unusable may not be fished, leased, or                § 648.4(a)(1)(i)(N).
                                                    liability company, or personal
                                                                                                            enrolled in a sector by that person for                  (vi) Acquire a limited access NE
                                                    ownership, in whole or in part, of a
                                                                                                            the remainder of the fishing year. A                  multispecies permit that would result in
                                                    vessel issued a limited access NE
                                                                                                            permit rendered unusable may be                       a permit holder exceeding any of the
                                                    multispecies permit or confirmation of
                                                                                                            transferred.                                          ownership accumulation limits
                                                    permit history (CPH), including any
                                                                                                            *      *     *    *      *                            specified in § 648.4(a)(1)(i)(N), unless
                                                    ownership interest in any entity or its
                                                                                                               (c) * * *                                          authorized under § 648.4(a)(1)(i)(N).
                                                    subsidiaries or partners, no matter how
                                                    far removed.                                               (2) Vessel permit information                      *       *    *     *     *
                                                                                                            requirements. (i) An application for a                   (9) * * *
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                                                    *      *     *     *     *
                                                    ■ 3. In § 648.4, add paragraph
                                                                                                            permit issued under this section, in                     (i) If operating under the provisions of
                                                    (a)(1)(i)(N) and revise paragraph (c)(2)(i)             addition to the information specified in              a limited access NE multispecies
                                                    to read as follows:                                     paragraph (c)(1) of this section, also                Handgear A permit south of the GOM
                                                                                                            must contain at least the following                   Regulated Mesh Area, as defined at
                                                    § 648.4    Vessel permits.                              information, and any other information                § 648.80(a)(1), fail to declare the vessel
                                                        (a) * * *                                           required by the Regional Administrator:               operator’s intent to fish in this area via
                                                        (1) * * *                                           Vessel name, owner name or name of                    VMS or fail to obtain or retain on board
                                                        (i) * * *                                           the owner’s authorized representative,                a letter of authorization from the


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                                                    92768                Federal Register / Vol. 81, No. 244 / Tuesday, December 20, 2016 / Proposed Rules

                                                    Regional Administrator, as required by                  cod south of the GOM Regulated Mesh                   (e.g., roller gear restrictions, etc.);
                                                    § 648.82(b)(6)(iii).                                    Area, as defined at § 648.80(a)(1), a                 reporting requirements; and AMs
                                                    *      *    *      *    *                               vessel owner or operator must declare                 specified in § 648.90(a)(5)(i)(D). For the
                                                      (ii) * * *                                            an intent to fish south of the GOM                    purposes of this paragraph (c)(2)(i), the
                                                      (N) Act as a lessor or lessee of NE                   Regulated Mesh Area on each trip                      DAS reporting requirements specified in
                                                    multispecies DAS to or from a limited                   through the VMS prior to leaving port,                § 648.82, the SAP-specific reporting
                                                    access permit that has been rendered                    in accordance with instructions                       requirements specified in § 648.85, VMS
                                                    unusable as specified in                                provided by the Regional Administrator.               requirements for Handgear A category
                                                    § 648.4(a)(1)(i)(N).                                    Such vessels may transit the GOM                      permitted vessels as specified in
                                                    *      *    *      *    *                               Regulated Mesh Area, as defined at                    § 648.10, and the reporting requirements
                                                    ■ 5. In § 648.82, revise paragraphs (b)(6)              § 648.80(a)(1), provided that their gear is           associated with a dockside monitoring
                                                    and (g) to read as follows:                             stowed and not available for immediate                program are not considered reporting
                                                                                                            use as defined in § 648.2.                            requirements, and the Regional
                                                    § 648.82 Effort-control program for NE                                                                        Administrator may exempt sector
                                                    multispecies limited access vessels.                    *      *     *     *     *
                                                                                                               (g) Spawning season restrictions. A                participants from these requirements as
                                                    *       *    *     *     *                                                                                    part of the approval of yearly operations
                                                       (b) * * *                                            vessel issued a valid Small Vessel
                                                                                                            category permit specified in paragraph                plans. For the purpose of this paragraph
                                                       (6) Handgear A category. A vessel                                                                          (c)(2)(i), the Regional Administrator may
                                                    qualified and electing to fish under the                (b)(5) of this section, or a vessel issued
                                                                                                            an open access Handgear B permit, as                  not grant sector participants exemptions
                                                    Handgear A category, as described in                                                                          from the NE multispecies year-round
                                                    § 648.4(a)(1)(i)(A), may retain, per trip,              specified in § 648.88(a), may not fish
                                                                                                            for, possess, or land regulated species or            closures areas defined as Essential Fish
                                                    up to 300 lb (135 kg) of cod, one                                                                             Habitat Closure Areas as defined in
                                                    Atlantic halibut, and the daily                         ocean pout from March 1 through March
                                                                                                            20 of each year. A common pool vessel                 § 648.81(h); the Fippennies Ledge Area
                                                    possession limit for other regulated                                                                          as defined in paragraph (c)(2)(i)(A) of
                                                    species and ocean pout, as specified                    must declare out and be out of the NE
                                                                                                            multispecies DAS program, and a sector                this section; Closed Area I and Closed
                                                    under § 648.86. If either the GOM or GB                                                                       Area II, as defined in § 648.81(a) and (b),
                                                    cod trip limit applicable to a vessel                   must declare that the vessel will not fish
                                                                                                            with gear capable of catching NE                      respectively, during the period February
                                                    fishing under a NE multispecies DAS                                                                           16 through April 30; and the Western
                                                    permit, as specified in § 648.86(b)(1)                  multispecies (i.e., gear that is not
                                                                                                            defined as exempted gear under this                   GOM Closure Area, as defined at
                                                    and (2), respectively, is reduced below                                                                       § 648.81(e), where it overlaps with GOM
                                                    300 lb (135 kg) per DAS by NMFS, the                    part), for a 20-day period between
                                                                                                            March 1 and May 31 of each calendar                   Cod Protection Closures I through III, as
                                                    cod trip limit specified in this paragraph                                                                    defined in § 648.81(f)(4). This list may
                                                    (b)(6) shall be adjusted to be the same                 year, using the notification requirements
                                                                                                            specified in § 648.10. A vessel fishing               be modified through a framework
                                                    as the applicable cod trip limit specified                                                                    adjustment, as specified in § 648.90.
                                                    for NE multispecies DAS permits. For                    under a Day gillnet category designation
                                                                                                            is prohibited from fishing with gillnet               *      *     *      *     *
                                                    example, if the GOM cod trip limit for                                                                        ■ 7. In § 648.90, revise paragraphs
                                                    NE multispecies DAS vessels was                         gear capable of catching NE
                                                                                                            multispecies during its declared 20-day               (a)(2)(i) through (iii) to read as follows:
                                                    reduced to 250 lb (113.4 kg) per DAS,
                                                    then the cod trip limit for a vessel                    spawning block, unless the vessel is                  § 648.90 NE multispecies assessment,
                                                    issued a Handgear A category permit                     fishing in an exempted fishery, as                    framework procedures and specifications,
                                                    that is fishing in the GOM Regulated                    described in § 648.80. If a vessel owner              and flexible area action system.
                                                    Mesh Area would also be reduced to                      has not declared and been out of the                  *       *    *    *     *
                                                    250 lb (113.4 kg). Qualified vessels                    fishery for a 20-day period between                      (a) * * *
                                                    electing to fish under the Handgear A                   March 1 and May 31 of each calendar                      (2) Biennial review. (i) At a minimum,
                                                    category are subject to the following                   year on or before May 12 of each year,                the NE multispecies PDT shall meet on
                                                    restrictions:                                           the vessel is prohibited from fishing for,            or before September 30 every other year
                                                       (i) The vessel must not use or possess               possessing or landing any regulated                   to perform a review of the fishery, using
                                                    on board gear other than handgear while                 species, ocean pout, or non-exempt                    the most current scientific information
                                                    in possession of, fishing for, or landing               species during the period from May 12                 available provided primarily from the
                                                    NE multispecies;                                        through May 31.                                       NEFSC. Data provided by states,
                                                       (ii) Tub-trawls must be hand-hauled                  *      *     *     *     *                            ASMFC, the USCG, and other sources
                                                    only, with a maximum of 250 hooks;                      ■ 6. In § 648.87, revise paragraph                    may also be considered by the PDT. The
                                                    and                                                     (c)(2)(i) introductory text to read as                PDT shall review available data
                                                       (iii) Declaration. For any such vessel               follows:                                              pertaining to: Catch and landings,
                                                    that is not required to use VMS                                                                               discards, DAS allocations, DAS use,
                                                    pursuant to § 648.10(b)(4), to fish for GB              § 648.87    Sector allocation.                        sector operations, and other measures of
                                                    cod south of the GOM Regulated Mesh                     *     *    *      *     *                             fishing effort; survey results; stock
                                                    Area, as defined at § 648.80(a)(1), a                     (c) * * *                                           status; current estimates of fishing
                                                    vessel owner or operator must obtain,                     (2) * * *                                           mortality and overfishing levels; social
                                                    and retain on board, a letter of                          (i) Regulations that may not be                     and economic impacts; enforcement
                                                    authorization from the Regional                         exempted for sector participants. The                 issues; and any other relevant
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                                                    Administrator stating an intent to fish                 Regional Administrator may not exempt                 information. The PDT may also review
                                                    south of the GOM Regulated Mesh Area                    participants in a sector from the                     the performance of different user groups
                                                    and may not fish in any other area for                  following Federal fishing regulations:                or fleet sectors.
                                                    a minimum of 7 consecutive days from                    Specific times and areas within the NE                   (ii) Based on this review, the PDT
                                                    the effective date of the letter of                     multispecies year-round closure areas;                shall recommend ACLs for the
                                                    authorization. For any such vessel that                 permitting restrictions (e.g., vessel                 upcoming fishing year(s), as described
                                                    is required, or elects, to use VMS                      upgrades, etc.); gear restrictions                    in paragraph (a)(4) of this section, and
                                                    pursuant to § 648.10(b)(4), to fish for GB              designed to minimize habitat impacts                  develop options for consideration by the


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                                                                         Federal Register / Vol. 81, No. 244 / Tuesday, December 20, 2016 / Proposed Rules                                               92769

                                                    Council, if necessary, on any changes,                     (iii) In addition, the PDT may develop             measures to implement the U.S./Canada
                                                    adjustments, or additions to DAS                        ranges of options for any of the                      Resource Sharing Understanding,
                                                    allocations, closed areas, or other                     management measures in the FMP and                    including any specified TACs (hard or
                                                    measures necessary to rebuild                           the following conditions that may be                  target); changes to administrative
                                                    overfished stocks and achieve the FMP                   adjusted through a framework                          measures; additional uses for Regular B
                                                    goals and objectives, which may include                 adjustment to achieve FMP goals and                   DAS; reporting requirements;
                                                    a preferred option. The range of options                objectives including, but not limited to:             declaration requirements pertaining to
                                                    developed by the PDT may include any                    Revisions to DAS measures, including                  when and what time period a vessel
                                                    of the management measures in the                       DAS allocations (such as the                          must declare into or out of a fishery
                                                    FMP, including, but not limited to:                     distribution of DAS among the four                    management area; the GOM Inshore
                                                    ACLs, which must be based on the                        categories of DAS), future uses for                   Conservation and Management
                                                    projected fishing mortality levels                      Category C DAS, and DAS baselines,                    Stewardship Plan; adjustments to the
                                                    required to meet the goals and                          adjustments for steaming time, etc.;                  Handgear A or B permits; gear
                                                    objectives outlined in the FMP for the                  accumulation limits due to a permit                   requirements to improve selectivity,
                                                    12 regulated species and ocean pout if                  buyout or buyback; modifications to                   reduce bycatch, and/or reduce impacts
                                                    able to be determined; identifying and                  capacity measures, such as changes to                 of the fishery on EFH; SAP
                                                    distributing ACLs and other sub-                        the DAS transfer or DAS leasing                       modifications; revisions to the ABC
                                                    components of the ACLs among various                    measures; calculation of area-specific                control rule and status determination
                                                    segments of the fishery; AMs; DAS                       ACLs (including sub-ACLs for specific                 criteria, including, but not limited to,
                                                    changes; possession limits; gear                        stocks and areas (e.g., Gulf of Maine                 changes in the target fishing mortality
                                                    restrictions; closed areas; permitting                  cod)), area management boundaries, and                rates, minimum biomass thresholds,
                                                    restrictions; minimum fish sizes;                       adoption of area-specific management                  numerical estimates of parameter
                                                    recreational fishing measures;                          measures including the delineation of                 values, and the use of a proxy for
                                                    describing and identifying EFH; fishing                 inshore/offshore fishing practices, gear              biomass may be made either through a
                                                    gear management measures to protect                     restrictions, declaration time periods;               biennial adjustment or framework
                                                    EFH; designating habitat areas of                       sector allocation requirements and                    adjustment; changes to the SBRM,
                                                    particular concern within EFH; and                      specifications, including the                         including the CV-based performance
                                                    changes to the SBRM, including the CV-                  establishment of a new sector, the                    standard, the means by which discard
                                                    based performance standard, the means                   disapproval of an existing sector, the                data are collected/obtained, fishery
                                                    by which discard data are collected/                    allowable percent of ACL available to a               stratification, the process for prioritizing
                                                    obtained, fishery stratification, the                   sector through a sector allocation, an                observer sea-day allocations, reports,
                                                                                                            optional sub-ACL specific to Handgear                 and/or industry-funded observers or
                                                    process for prioritizing observer sea-day
                                                                                                                                                                  observer set aside programs; and any
                                                    allocations, reports, and/or industry-                  A permitted vessels, and the calculation
                                                                                                                                                                  other measures currently included in
                                                    funded observers or observer set aside                  of PSCs; sector administration
                                                                                                                                                                  the FMP.
                                                    programs. The PDT must demonstrate                      provisions, including at-sea and
                                                    through analyses and documentation                      dockside monitoring measures; sector                  *      *     *     *    *
                                                    that the options it develops are expected               reporting requirements; state-operated                [FR Doc. 2016–30356 Filed 12–19–16; 8:45 am]
                                                    to meet the FMP goals and objectives.                   permit bank administrative provisions;                BILLING CODE 3510–22–P
mstockstill on DSK3G9T082PROD with PROPOSALS




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Document Created: 2018-02-14 09:10:17
Document Modified: 2018-02-14 09:10:17
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionProposed Rules
ActionProposed rule; request for comments.
DatesComments must be received on or before February 3, 2017.
ContactWilliam Whitmore, Fishery Policy Analyst, 978-281-9182.
FR Citation81 FR 92761 
RIN Number0648-BF26
CFR AssociatedFisheries; Fishing and Reporting and Recordkeeping Requirements

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