81_FR_96153 81 FR 95903 - Atlantic Highly Migratory Species; Individual Bluefin Quota Program; Inseason Transfers

81 FR 95903 - Atlantic Highly Migratory Species; Individual Bluefin Quota Program; Inseason Transfers

DEPARTMENT OF COMMERCE
National Oceanic and Atmospheric Administration

Federal Register Volume 81, Issue 250 (December 29, 2016)

Page Range95903-95909
FR Document2016-31357

NMFS modifies the Atlantic highly migratory species (HMS) regulations regarding the distribution of inseason Atlantic bluefin tuna (BFT) quota transfers to the Longline category. This final rule provides NMFS the ability to distribute quota inseason either to all qualified Individual Bluefin Quota (IBQ) share recipients (i.e., share recipients who have associated their permit with a vessel) or only to permitted Atlantic Tunas Longline vessels with recent fishing activity, whether or not they are associated with IBQ shares. This action is necessary to optimize fishing opportunity in the directed pelagic longline fishery for target species such as tuna and swordfish and to improve the functioning of the IBQ Program and its leasing provisions consistent with the objectives of Amendment 7 to the 2006 Consolidated HMS Fishery Management Plan (FMP).

Federal Register, Volume 81 Issue 250 (Thursday, December 29, 2016)
[Federal Register Volume 81, Number 250 (Thursday, December 29, 2016)]
[Rules and Regulations]
[Pages 95903-95909]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-31357]


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DEPARTMENT OF COMMERCE

National Oceanic and Atmospheric Administration

50 CFR Part 635

[Docket No. 160527473-6999-02]
RIN 0648-BG09


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

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

ACTION: Final rule.

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SUMMARY: NMFS modifies the Atlantic highly migratory species (HMS) 
regulations regarding the distribution of inseason Atlantic bluefin 
tuna (BFT) quota transfers to the Longline category. This final rule 
provides NMFS the ability to distribute quota inseason either to all 
qualified Individual Bluefin Quota (IBQ) share recipients (i.e., share 
recipients who have associated their permit with a vessel) or only to 
permitted Atlantic Tunas Longline vessels with recent fishing activity, 
whether or not they are associated with IBQ shares. This action is 
necessary to optimize fishing opportunity in the directed pelagic 
longline fishery for target species such as tuna and swordfish and to 
improve the functioning of the IBQ Program and its leasing provisions 
consistent with the objectives of Amendment 7 to the 2006 Consolidated 
HMS Fishery Management Plan (FMP).

DATES: Effective on January 28, 2017.

ADDRESSES: Supporting documents, including the Regulatory Impact Review 
and Final Regulatory Flexibility Analysis, may be downloaded from the 
HMS Web site at www.nmfs.noaa.gov/sfa/hms/.

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

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

Background

    Background information about the need for additional flexibility 
within the IBQ Program for distribution of BFT quota transferred to the 
Longline category inseason was provided in the preamble to the proposed 
rule (81 FR 65988, September 26, 2016) and most of that information is 
not repeated here.
    Vessels fishing with pelagic longline gear, which may only catch 
BFT incidentally while fishing for target species (primarily swordfish 
and yellowfin tuna), hold limited access Atlantic Tunas Longline 
permits and utilize Longline category BFT quota. Through Amendment 7, 
NMFS established the IBQ Program, a catch share program that identified 
136 permit holders as IBQ share recipients based on specified criteria, 
including historical target species landings and the bluefin catch-to-
target species ratios from 2006 through 2012. NMFS currently 
distributes and manages the Longline category BFT quota via the IBQ 
Program.
    The specific objectives of the IBQ Program are to:
    1. Limit the amount of BFT landings and dead discards in the 
pelagic longline fishery;
    2. Provide strong incentives for the vessel owner and operator to 
avoid BFT interactions, and thus reduce bluefin dead discards;
    3. Provide flexibility in the quota system to enable pelagic 
longline vessels to obtain BFT quota from other vessels with available 
individual quota in order to enable full accounting for BFT landings 
and dead discards, and minimize constraints on fishing for target 
species;
    4. Balance the objective of limiting bluefin landings and dead 
discards with the objective of optimizing fishing opportunities and 
maintaining profitability; and
    5. Balance the above objectives with potential impacts on the 
directed permit categories that target BFT, and the broader objectives 
of the 2006 Consolidated HMS FMP and the Magnuson-Stevens Fishery 
Conservation and Management Act (Magnuson-Stevens Act).
    IBQ share recipients receive an annual allocation of the Longline 
category quota based on the percentage share they received through 
Amendment 7 but only if their permit is associated with a vessel in the 
subject year (i.e., only ``qualified IBQ share recipients'' receive 
annual allocations). Permit holders that were not selected to receive 
IBQ shares through Amendment 7 may still fish, but they are required to 
lease quota through the IBQ electronic system. Every vessel must have a 
minimum amount of quota allocation to fish (e.g., 0.25 metric tons (mt) 
whole weight (ww) (551 lb ww) for a trip in the Gulf of Mexico and 
0.125 mt ww (276 lb ww) for a trip in the Atlantic), whether obtained 
through shares or by leasing, and every vessel must individually 
account for its BFT landings and dead discards through the IBQ 
electronic system.
    In July 2015 and January 2016, NMFS transferred quota inseason from 
the Reserve category to the Longline category (80 FR 45098, July 29, 
2015; 81 FR 19, January 4, 2016). In these inseason actions, NMFS 
distributed the transferred quota in equal amounts to 136 qualified IBQ 
share recipients. During 2015, 36 of these 136 qualified IBQ share 
recipients had no pelagic longline fishing activity (i.e., they took no 
fishing trips with pelagic longline gear). Furthermore, 31 of the 36 
qualified IBQ share recipients that did not fish also did not lease IBQ 
to others (i.e., 31 neither fished nor leased and 5 did not fish but 
leased out their IBQ allocations). As a result, those 31 IBQ 
allocations went unused for the year and expired at year's end.
    NMFS received requests, among other suggestions about the IBQ 
Program and management of the pelagic longline fishery, that when quota 
is transferred inseason to the Longline category, NMFS distribute it 
only to those vessels that are currently fishing (whether

[[Page 95904]]

associated with IBQ shares or not) to optimize fishing opportunity and 
account for dead discards, rather than distributing it equally to all 
IBQ share recipients, some of whom currently neither fish with pelagic 
longline gear nor lease quota to other active Longline fishery 
participants. The proposed rule considered and analyzed that approach 
and invited public comment.
    This final rule modifies the regulations to specify that 
distribution of quota transferred to the Longline category inseason 
(i.e., quota beyond the baseline Longline category quota that is 
distributed to qualified IBQ share recipients according to the three 
shareholder percentages implemented through Amendment 7) may be either 
to all qualified IBQ share recipients or only to permitted Atlantic 
Tunas Longline vessels with recent fishing activity whether they are 
associated with IBQ shares or not. NMFS will review information from 
logbook, vessel monitoring system (VMS), or electronic monitoring data 
to determine whether any fishing activity has occurred over the course 
of the subject and previous year thus indicating that there is ``recent 
fishing activity,'' as discussed in more detail below. For example, for 
inseason transfers in 2017, NMFS will examine fishing activity data for 
2016 and 2017. Providing flexibility in the quota system and 
maintaining flexibility of the regulations to account for the highly 
variable nature of the BFT interactions in the pelagic longline fishery 
was an objective of Amendment 7 (See, e.g., Amendment text at 79 FR 
71510 and 71559), and this adjustment to the regulations will further 
that objective.
    In deciding whether to transfer additional quota to the Longline 
category inseason from the Reserve category, NMFS would first consider 
the existing 14 regulatory determination criteria for inseason or 
annual adjustments at 50 CFR 635.27(a)(8), including the need to 
``optimize fishing opportunity.''
    Next, if NMFS decides to transfer quota to the Longline category 
inseason, NMFS will then decide whether to distribute that quota to all 
qualified IBQ share recipients or only to permitted Atlantic Tunas 
Longline vessels with recent fishing activity whether or not the vessel 
is associated with IBQ shares. This decision will be based on 
information for the subject year and previous year, including the 
number of BFT landings and dead discards, the number of IBQ lease 
transactions, the average amount of IBQ leased, the average amount of 
quota debt, the annual amount of IBQ allocation, any previous inseason 
allocations of IBQ, the amount of BFT quota in the Reserve category, 
the percentage of BFT quota harvested by the other quota categories, 
the remaining number of days in the year, the number of active vessels 
fishing not associated with IBQ share, and the number of vessels that 
have incurred quota debt or that have low levels of IBQ allocation. 
NMFS will determine which approach will best meet the specific 
objectives of the IBQ Program as stated in Amendment 7, including the 
objective of providing ``flexibility in the quota system to enable 
pelagic longline vessels to obtain BFT quota from other vessels with 
available individual quota in order to enable full accounting for BFT 
landings and dead discards, and minimize constraints on fishing for 
target species.'' For example, in years where leasing by IBQ share 
recipients is not occurring as anticipated by Amendment 7, distribution 
to only active vessels might be appropriate to encourage leasing at 
levels that ensure appropriate functioning of the IBQ system in future 
years. In years where the leasing program is functioning well and 
leasing is occurring as needed and as anticipated by Amendment 7, 
distribution may be to all of the qualified IBQ share recipients.
    If NMFS distributes the inseason quota to all qualified IBQ share 
recipients, those qualified IBQ share recipients will receive equal 
amounts of the quota transferred.
    If NMFS distributes inseason quota only to those vessels with 
recent fishing activity, vessels with ``recent fishing activity'' in 
the pelagic longline fishery will be based upon available information 
such as logbook, VMS, dealer, or electronic monitoring data for the 
subject and previous year. Any vessel activity in the pelagic longline 
fishery during this date range will be sufficient to qualify as 
``recent fishing activity.'' The specific data analyzed for this date 
range in a given inseason action will be those available when the 
inseason transfer occurs, and will depend on which complete data are 
available at that time. For example, logbook data for a particular year 
are typically not available for use until several months into the 
following year due to the process of data entry and quality control, as 
well as late reporting. Therefore, early in a year, NMFS may determine 
vessel activity for the previous and subject year using VMS data, 
whereas later in the year, it might use both logbook and VMS data.
    Whether NMFS distributes quota to all qualified IBQ recipients or 
to only those permitted vessels with recent fishing activity, quota 
transferred inseason will be distributed equally to the vessel accounts 
associated with the relevant vessels via the electronic IBQ system. In 
either case, when a qualified IBQ share recipient receives inseason 
quota, the quota will be designated as either Gulf of Mexico (GOM) IBQ, 
Atlantic (ATL) IBQ, or both GOM and ATL IBQ, according to the share 
recipient's regional designations. For vessels with recent fishing 
activity that are not qualified IBQ share recipients, NMFS will assign 
the distributed quota a regional designation based on where the 
majority of the vessel's ``recent fishing activity'' occurred for the 
relevant period analyzed.

Response to Comments

    NMFS received five written comments on the proposed rule during the 
comment period, three of which expressed support for the rule as 
proposed, particularly the flexibility in distribution of inseason BFT 
quota and efficient use of quota through inseason distribution to 
vessels with recent fishing activity, including newly-permitted 
vessels. Two written comments expressed qualified support for the 
proposed flexibility but suggested modified approaches to quota 
disbursement. All written comments can be found at http://www.regulations.gov/. The comments are summarized below by topic 
together with NMFS' responses.
    Comment 1: All comments supported the objective of, and rationale 
for, the proposed regulatory changes to the IBQ Program. Specifically, 
comments supported the objective of regulations that would allow NMFS 
to optimize the distributions of inseason Atlantic BFT quota transfers 
to the Longline category by distributing inseason BFT quota either to 
all qualified IBQ share recipients or only to those permitted Atlantic 
Tunas Longline vessels with recent fishing activity, whether or not 
they are associated with IBQ shares. Comments supported the underlying 
rationale of the proposed measure, which they expressed as providing 
reasonable fishing opportunities for pelagic longline vessels in the 
context of the constraints of the IBQ Program. Some commenters 
specifically supported the concept of distributing inseason quota only 
to active vessels in order to increase efficiency of quota use among 
vessels, allow the distribution of quota to new participants in the 
fishery, and enable the potential for larger amounts of quota for each 
permit holder. One comment noted that the proposed regulations 
contribute to balancing the objective of optimizing fishing opportunity 
and maintaining

[[Page 95905]]

profitability with the objective of limiting BFT landings and dead 
discards.
    Response: NMFS agrees that the regulatory change to the IBQ Program 
will facilitate accounting for BFT bycatch by permitted Atlantic Tunas 
Longline vessels actively participating in the HMS pelagic longline 
fishery and support optimizing the distribution of quota among vessels. 
When transferring quota from the Reserve category to the Longline 
category inseason, NMFS will consider specific factors in the fishery 
and determine whether distribution of inseason quota (in the Longline 
category) to all qualified IBQ share recipients or only to those 
permitted Atlantic Tunas Longline vessels with recent fishing activity 
will best support the objectives of the FMP. Distribution of inseason 
quota only to active vessels (if the total number of active vessels is 
a smaller number of vessels than all qualified vessels) may result in a 
larger amount of quota for each recipient vessel. A larger inseason 
distribution would help these active vessels to remain fishing longer 
under fewer quota constraints and would reduce the transaction costs 
associated with finding additional quota through the leasing program in 
years where leased quota is not readily available. NMFS agrees that the 
regulation will be consistent with the objectives of the IBQ Program, 
which include the objective: ``Balance the objective of limiting BFT 
landings and dead discards with the objective of optimizing fishing 
opportunities and maintaining profitability''.
    Comment 2: Three comments further supported the specifics of the 
proposed regulatory changes, including the data and timeframe that will 
be analyzed to determine whether ``recent fishing activity'' has 
occurred and equal distribution of inseason BFT quota among the 
recipients.
    One commenter was opposed to the aspect of the proposed rule that 
considers a vessel to be ``active'' at any level of activity, without 
any threshold amount of fishing activity specified. The commenter was 
concerned that a vessel might ``game the system'' and deploy a single 
longline set on a single trip, with the goal of establishing a minimal 
level of fishing activity that would subsequently enable the vessel to 
be a recipient of an inseason distribution of BFT quota. The commenter 
suggested a meaningful increase in the number of pelagic longline sets 
required, and suggested that the amount of quota distributed to each 
vessel should vary depending upon the amount of pelagic longline sets 
completed. For example, if the vessel completed 1 to 25 sets during the 
previous year, they would be distributed a 0.25 share of BFT quota, and 
if the vessel completed 26 to 65 sets during the previous year, they 
would be distributed a 0.50 share of BFT quota, and so on. The 
commenter also suggested that inactive IBQ share recipients that have 
leased the full amount of their allocation to other Atlantic Tunas 
Longline vessels should receive inseason quota.
    Response: NMFS proposed a simple method of defining what an active 
vessel is and distributing inseason quota equally among active vessels 
because inseason distributions of quota are likely to be relatively 
small amounts of quota compared to annual allocations of IBQ to share 
recipients. The use of formulas such as that proposed by the commenter 
to distribute quota may result in amounts distributed that are less 
than the minimum share amount required to fish. Distributing such small 
amounts of quota to vessels inseason might have little beneficial 
impact on fishing operations and could render the transfer largely 
meaningless for many vessels. With respect to setting a threshold 
number of pelagic longline sets as a criterion for receiving inseason 
allocation, all vessels fishing with pelagic longline gear must possess 
the minimum amount of IBQ (0.25 mt ww (551 lb ww) in the Gulf of Mexico 
and 0.125 mt ww (276 lb ww) in the Atlantic) before they can fish, and 
this requirement applies regardless of the level of fishing activity. 
Although it is possible that a vessel could conduct a single longline 
set with the intention of becoming eligible for a potential small 
future inseason quota distribution, it is likely that there would be 
few instances of such behavior because the potential costs and 
uncertainty of any benefit associated with such behavior should serve 
as adequate disincentive for ``gaming the system.'' Furthermore, the 
possibility that active vessels may directly receive quota from the 
Agency when the leasing system is not functioning effectively, may 
encourage otherwise-inactive vessel owners to more seriously consider 
leasing out their quota earlier in the season through the IBQ system, 
rather than waiting to see if leasing prices increase later in the 
season. Even if limited instances of such activity occurred, NMFS does 
not believe that such action would undercut the effectiveness of the 
regulatory change, which is largely aimed at limiting the amount of 
quota that could be distributed to vessels that have no fishing 
activity whatsoever.
    The commenter also suggests that the amount of quota distributed 
inseason should be based on the level of vessel activity, suggesting 
that the amount of quota distributed to each vessel should vary 
depending upon the amount of pelagic longline sets completed. At the 
beginning of the year, IBQ share recipients are allocated different 
amounts of annual IBQ, based upon one of the three defined share 
percentages associated with the Atlantic Tunas Longline permit, which 
was based on a formula that considered many factors through the 
Amendment 7 process, including indicators of vessel activity. NMFS 
determined that additional distributions of quota inseason should be in 
equal amounts largely for simplicity of administration and given the 
small amounts of quota involved. An inseason quota distribution that is 
based upon a formula would be more complex to implement than an equal 
distribution and could diminish the benefits if implementation of the 
quota transfer and distribution took a prolonged amount of time. 
Therefore, NMFS finalizes as proposed the provision that will 
distribute inseason quota equally among selected recipients.
    Finally, the commenter suggested that inactive IBQ share recipients 
that have leased the full amount of their allocation to other Atlantic 
Tunas Longline vessels should receive inseason quota distributions. 
Under the conditions at this time, the agency prefers its simpler 
proposed approach for distributing the small amounts of quota that 
typically are transferred inseason. By distributing the quota 
transferred inseason equally to active vessels inseason additional 
trips may be possible in years that leasing is not occurring as 
anticipated by Amendment 7. NMFS notes, however, that it will further 
consider this suggested approach as an incentive for those who fully 
participate in the leasing program. This could be included in the 
comprehensive three-year review of the IBQ Program that is required by 
the Magnuson-Stevens Act and the 2006 Consolidated HMS FMP and that 
NMFS plans to initiate in 2017.
    Comment 3: One commenter sought changes to other aspects of the IBQ 
Program regulations, such as modifying the IBQ rules to allow the 
carryover of unused quota from one year to the next, and asked that 
NMFS consider changes to annual allocation of IBQ (i.e., distribution 
of the baseline Longline category quota).
    Response: The suggested changes to the regulations were not among 
the specific management measures considered by the proposed rule and 
are beyond the scope of this rulemaking. The scope of this rulemaking 
addressed only inseason transfer criteria

[[Page 95906]]

regulations; provisions regarding carry-forward and annual allocation 
of IBQ were established in Amendment 7 and no changes to those 
provisions were considered in this action. NMFS may consider changes to 
these provisions and additional topics related to the management of the 
pelagic longline fishery in future rulemakings and in the comprehensive 
three-year review of the IBQ Program.
    Comment 4: One comment stated that the IBQ Program, as implemented 
under Amendment 7, is not consistent with several requirements of the 
Magnuson-Stevens Act including: The IBQ Program does not provide 
pelagic longline fishermen with a reasonable opportunity to harvest the 
Longline category BFT quota; the IBQ Program does not minimize 
disadvantages to U.S. fishermen; utilization of BFT quota under the IBQ 
Program could result in unfair and inequitable allocation of quota to 
pelagic longline fishermen; the IBQ Program does not provide fair and 
equitable distribution of access privileges; and the IBQ Program, as a 
limited access privilege program (LAPP), does not promote fishing 
safety, fishery conservation and management, or social and economic 
benefits.
    Response: This comment challenges the implementation of Amendment 7 
to the 2006 Consolidated HMS FMP, which was adopted through separate 
notice and comment rulemaking finalized in December 2014. The issues 
raised in this comment are beyond the scope of this rulemaking. NMFS 
notes that in litigation brought against the Secretary of Commerce 
following issuance of the final rule for Amendment 7, pelagic longline 
fishermen and dealers alleged that implementation of Amendment 7, 
including the IBQ Program, failed to comply with provisions of the 
Magnuson-Stevens Act, similar to the issues raised in this comment. The 
federal district court for the Eastern District of North Carolina 
rejected Plaintiffs' claims and upheld Amendment 7 as consistent with 
the Magnuson-Stevens Act and other applicable law (see Willie R. 
Etheridge Seafood Co. v. Pritzker, 2016 WL 1126014 (E.D.N.C., Mar. 21, 
2016)).

Classification

    The NMFS Assistant Administrator has determined that the final rule 
is consistent with the 2006 Consolidated HMS FMP and its amendments, 
the Magnuson-Stevens Act, ATCA, and other applicable law.
    This final rule has been determined to be not significant for 
purposes of Executive Order 12866.
    This action is categorically excluded from the requirement to 
prepare an environmental assessment (EA) in accordance with the 
National Environmental Policy Act and NOAA administrative order NAO 
216-6 (as preserved by NAO 216-6A). This action may be categorically 
excluded since it is a change to a previously analyzed and approved 
fishery management plan, and the change will have no substantive 
effect, individually or cumulatively, on the human environment beyond 
that already analyzed in the Environmental Impact Statement for 
Amendment 7 (79 FR 71510, December 2, 2014) and in the EA for the final 
rule that increased the U.S. BFT quota (for 2015 and until changed) 
based on the recommendation of the International Commission for the 
Conservation of Atlantic Tunas (80 FR 52198, August 28, 2015). Inseason 
quota allocations to the Longline category do not modify the annual 
U.S. BFT quota nor the fishing mortality associated with that quota. 
Minor modifications of allocations to vessels may contribute somewhat 
to determining when fishing mortality occurs but not in any meaningful 
way that would change the environmental impacts given the small amounts 
of quota at issue and the fact that such transfers do not alter the 
overall allowable mortality under the U.S. BFT quota. Furthermore, this 
action will not directly affect fishing effort, fishing gear, 
interactions with threatened or endangered species, or other relevant 
behaviors that could have additional environmental impacts. Thus, there 
is no environmental or ecological effect different than what was 
analyzed previously.
    NMFS has prepared a Regulatory Impact Review (RIR), and a Final 
Regulatory Flexibility Analysis (FRFA), which present and analyze 
anticipated social, and economic impacts of the alternatives contained 
in this rule. The list of alternatives and their analyses are provided 
in the RIR and are not repeated here in their entirety. A copy of the 
RIR prepared for this final rule is available from NMFS (see 
ADDRESSES).
    A FRFA was prepared, as required by section 604 of the Regulatory 
Flexibility Act (RFA, 5 U.S.C. 604 et seq.), and is included below. The 
FRFA describes the economic impact this final rule will have on small 
entities. A description of the action, why it is being implemented, and 
the legal basis for this action are contained in the SUMMARY section of 
the preamble.
    The goal of the RFA is to minimize the economic burden of federal 
regulations on small entities. To that end, the RFA directs federal 
agencies to assess whether the regulation is likely to result in 
significant economic impacts to a substantial number of small entities, 
and identify and analyze any significant alternatives to the rule that 
accomplish the objectives of applicable statutes and minimizes any 
significant effects on small entities.

Statement of the Need for and Objectives of the Rule

    Section 604(a)(1) of the RFA requires a FRFA to contain a statement 
of the need for and objectives of the rule. The purpose of this 
rulemaking, consistent with the 2006 Consolidated HMS FMP objectives, 
the Magnuson-Stevens Act, and other applicable law, is to provide NMFS 
additional flexibility when distributing quota inseason to the Longline 
category. Through this final rule, NMFS may distribute quota inseason 
either to all qualified IBQ share recipients (those who have associated 
their share with a vessel) or to permitted Atlantic Tunas Longline 
vessels with recent fishing activity whether or not they are associated 
with IBQ shares.
    Since January 1, 2015, NMFS has received requests (among other 
suggestions about the IBQ Program and management of the pelagic 
longline fishery) to distribute quota inseason to those vessels that 
have recent fishing activity (whether associated with IBQ shares or 
not) to optimize fishing opportunity and account for dead discards, 
rather than distributing it equally to all IBQ share recipients, some 
of whom end up neither using it, nor making it available to other 
vessel owners through the IBQ leasing program. In advance of and at the 
March 2016 HMS Advisory Panel meeting, pelagic longline fishery 
participants expressed concerns about the availability of IBQ 
allocation as implemented under Amendment 7. Longline fishery 
participants have stated that, while they were able to obtain 
sufficient IBQ allocation by leasing it under the conditions that 
applied in 2015, those conditions were temporary. They are concerned, 
however, that as additional requirements began to apply in 2016, the 
IBQ Program could negatively impact vessel operations and finances 
given the pricing of IBQ, the distribution of quota among permit 
holders as implemented by Amendment 7, and the behavior of some permit 
holders who, for example, they say hold on to IBQ for the entire season 
without participating in the fishery or engaging in leasing. Longline 
fishery participants requested that NMFS take further steps to provide 
more access to quota for those vessels with recent fishing activity

[[Page 95907]]

to reduce the dependence on qualified IBQ share recipients, some of 
whom are not participating in the fishery or engaging in leasing.
    After looking at the issues raised by the fishery participants and 
at trends in IBQ leasing and utilization for 2015, it became apparent 
that additional options are needed regarding the distribution of 
inseason transfers of BFT quota within the Longline category to assist 
NMFS in providing reasonable opportunities to fish for target species 
under the limits imposed by the IBQ Program, to optimize distribution 
of BFT quota transferred inseason to the Longline category, and to 
encourage proper functioning of the IBQ leasing program as anticipated 
under Amendment 7. To account for the highly variable nature of the BFT 
caught in the pelagic longline fishery and maintain flexibility in the 
regulations, this action provides NMFS with an additional option when 
distributing quota inseason to the Longline category.
    The objective of this rule is to provide additional flexibility 
regarding the distribution of inseason Atlantic BFT quota transfers to 
the Longline category in order to facilitate the management of Atlantic 
HMS resources in a manner that maximizes resource sustainability and 
fishing opportunity, while minimizing, to the greatest extent possible, 
the socioeconomic impacts on affected fisheries.

Summary of the Issues Raised by the Public Comments in Response to the 
Initial Regulatory Flexibility Analysis (IRFA), a Summary of the 
Assessment of the Agency of Such Issues, and a Statement of Any Changes 
Made in the Rule as a Result of Such Comments

    Section 604(a)(2) of the RFA requires a summary of the significant 
issues raised by the public comments in response to the IRFA, a summary 
of the Agency's assessment of such issues, and a statement of any 
changes made in the rule as a result of such comments. NMFS received 
five written comments on the proposed rule during the comment period, 
three of which expressed support for the proposed flexibility in 
distribution of inseason BFT quota and for efficient use of quota 
through inseason distribution to vessels with recent fishing activity, 
including new vessels. Two written comments expressed qualified support 
for the proposed measures but suggested modified approaches to quota 
disbursement (i.e., a tiered approach based on previous year activity 
that would not disburse inseason quota equally among recipients but 
disburse varying amounts based on levels of fishing activity). None of 
the comments addressed the economic impacts of the proposed measure. No 
changes were made to the rule as a result of the public comments.
    Section 604(a)(3) of the RFA requires the Agency to respond to any 
comments filed by the Chief Counsel for Advocacy of the Small Business 
Administration (SBA) in response to the proposed rule, and a detailed 
statement of any change made in the rule as a result of such comments. 
NMFS did not receive any comments from the Chief Counsel for Advocacy 
of the SBA in response to the proposed rule.

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

    Section 604(a)(4) of the RFA requires agencies to provide an 
estimate of the number of small entities to which the rule would apply. 
The SBA has established size criteria for all major industry sectors in 
the United States, including fish harvesters. SBA's regulations provide 
that an agency may develop its own industry-specific size standards 
after consultation with Advocacy and an opportunity for public comment 
(see 13 CFR 121.903(c)). Under this provision, NMFS may establish size 
standards that differ from those established by the SBA Office of Size 
Standards, but only for use by NMFS and only for the purpose of 
conducting an analysis of economic effects in fulfillment of the 
agency's obligations under the RFA. To utilize this provision, NMFS 
must publish such size standards in the Federal Register. In a final 
rule that became effective on July 1, 2016 (80 FR 81194, December 29, 
2015), NMFS established a small business size standard of $11 million 
or less in annual gross receipts for all businesses in the commercial 
fishing industry (NAICS 11411) for RFA compliance purposes. NMFS 
considers all HMS Atlantic Tunas Longline permit holders (280 as of 
October 2015) to be small entities because these vessels have reported 
annual gross receipts of less than $11 million for commercial fishing. 
The average annual gross revenue per active pelagic longline vessel was 
estimated to be $187,000 based on the 170 active vessels between 2006 
and 2012, and that produced an estimated $31.8 million in total revenue 
annually. The maximum annual revenue for any pelagic longline vessel 
between 2006 and 2015 was $1.9 million, well below the NMFS small 
business size threshold of $11 million in gross receipts for commercial 
fishing.
    NMFS has determined that this rule will apply to the small 
businesses associated with the 136 Atlantic Tunas Longline permits with 
IBQ shares and the additional permitted Atlantic Tunas Longline vessels 
that fish with quota leased through the IBQ Program. The impacts on 
these small businesses are described below in the discussion of 
alternatives considered. NMFS has determined that this action will not 
likely directly affect any small organizations or small government 
jurisdictions defined under the RFA.

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

    Section 604(a)(5) of the RFA requires Agencies to describe any new 
reporting, record-keeping and other compliance requirements. This rule 
does not contain any new collection of information, reporting, or 
record-keeping requirements.

Description of the Steps the Agency Has Taken To Minimize the 
Significant Economic Impact on Small Entities Consistent With the 
Stated Objectives of Applicable Statutes, Including a Statement of the 
Factual, Policy, and Legal Reasons for Selecting the Alternative 
Adopted in the Final Rule and the Reason That Each One of the Other 
Significant Alternatives to the Rule Considered by the Agency Which 
Affect Small Entities Was Rejected

    One of the requirements of a FRFA is to describe any alternatives 
which accomplish the stated objectives and which minimize any 
significant economic impacts. These impacts are discussed below. 
Additionally, the RFA (5 U.S.C. 603(c)(1)-(4)) lists four general 
categories of ``significant'' alternatives that would assist an agency 
in the development of significant alternatives. These categories of 
alternatives are: (1) Establishment of differing compliance or 
reporting requirements or timetables that take into account the 
resources available to small entities; (2) clarification, 
consolidation, or simplification of compliance and reporting 
requirements under the rule for such small entities; (3) use of 
performance rather than design standards; and (4) exemptions from 
coverage of the rule, or any part thereof, for small entities.
    In order to meet the objectives of this final rule, consistent with 
the Magnuson-Stevens Act and ATCA, NMFS cannot establish differing 
compliance requirements for small entities or exempt small entities 
from compliance requirements. Thus, there

[[Page 95908]]

are no alternatives discussed that fall under the first and fourth 
categories described above. As for the second category, the objective 
of this rule is to provide additional flexibility regarding the 
distribution of inseason Atlantic BFT quota transfers to the Longline 
category, and therefore does not impact or change compliance and 
reporting requirements for small entities. The IBQ Program was designed 
to adhere to performance standards, the third category above; 
modifications to the regulations implementing the IBQ Program simply 
make adjustments to the administration of those underlying performance 
standards. NMFS analyzed several different alternatives in this action 
and the rationale that NMFS used to determine the alternative for 
achieving the desired objectives is described below.
    The first alternative is the ``no action'' (status quo) 
alternative. The second alternative, the selected alternative, will 
provide NMFS the flexibility to allocate quota inseason to qualified 
IBQ share recipients (those who have associated their share with a 
vessel) or to permitted Atlantic Tunas Longline vessels with any recent 
fishing activity, whether or not they are associated with IBQ shares. 
The third alternative would provide NMFS the flexibility to allocate 
quota inseason to qualified IBQ share recipients with recent fishing 
activity or IBQ leasing activity. The economic impacts of these three 
alternatives are detailed below.
    Under all three alternatives, NMFS would continue to consider the 
regulatory determination criteria for inseason or annual adjustments 
under 50 CFR 635.27(a)(8), and if NMFS decided that inseason allocation 
to the Longline category was warranted to increase the amount of quota 
available to pelagic longline vessels, NMFS would allocate additional 
quota. The difference among the alternatives is the specific Atlantic 
Tunas Longline permit holders that would receive distribution of 
inseason BFT quota.
    Under the ``no action'' alternative, NMFS would distribute the 
transferred quota in equal amounts to all 136 qualified IBQ share 
recipients, which include vessels actively fishing and vessels not 
actively fishing. This is the manner in which NMFS conducted inseason 
transfers from the Reserve to the Longline category in July 2015 and 
January 2016 (80 FR 45098, July 29, 2015; 81 FR 19, January 4, 2016). 
For each of these 34 mt quota transfers, 0.25 mt (551 lb) of IBQ were 
distributed equally to each of the 136 qualified IBQ share recipients 
under Amendment 7. IBQ allocation was distributed via the electronic 
IBQ system to the vessel accounts with permits with IBQ shares 
associated with a vessel. For those permits with IBQ shares that were 
not associated with a vessel at the time of the quota transfer, the IBQ 
is not usable by the permit holder (i.e., may not be leased or used to 
account for BFT) until the permit is associated with a vessel. Based on 
the average 2015 IBQ lease price of $3.34 per pound, the economic value 
of such an inseason transfer of 551 lb per vessel would be 
approximately $1,840 per vessel owner under the ``no action'' 
alternative.
    Under the selected alternative, NMFS may allocate quota inseason 
either to each of the 136 qualified IBQ share recipients or to all 
permitted Atlantic Tunas Longline vessels with recent fishing activity. 
In 2015, there were 104 active pelagic longline vessels (based on 
logbook data). If NMFS assumes, for example, a future inseason transfer 
of 34 mt distributed equally among vessels with recent fishing 
activity, each of those 104 active vessels would receive 0.327 mt (721 
lb) under the selected alternative. Based on the average 2015 IBQ lease 
price of $3.34 per pound, the economic value of such an inseason 
transfers of 721 lb per vessel would be approximately $2,408 per vessel 
owner under the selected alternative. Active vessel owners would 
receive $568 more in value (31 percent more quota) than under the ``no 
action'' (status quo) alternative.
    This increased allocation will help these active vessels to remain 
fishing longer under fewer quota constraints and reduce the transaction 
costs associated with finding the same amount of additional quota. The 
qualified IBQ share recipients with no fishing activity (36 in 2015) 
would not receive the 551 lb of IBQ worth approximately $1,840 per 
vessel that they could have received under the status quo alternative 
if they were to lease their quota to other permit holders. Thus, the 
cost of this alternative will mainly be limited to the forgone ability 
to lease out allocation that they otherwise would have received. Under 
Amendment 7, the purpose of leasing is to accommodate various levels of 
unintended catch of BFT and to facilitate directed fishing for Atlantic 
swordfish, other tunas, and other pelagic species. The few Atlantic 
Tunas Longline vessels that fished that were not associated with IBQ 
shares but that leased allocation from qualified IBQ share recipients 
(four in 2015) will receive quota under the selected alternative worth 
approximately $2,408 per vessel. Such an inseason transfer will help 
facilitate participation by new entrants to the fishery by lowering 
their costs to obtain quota.
    Under the third alternative, NMFS would have the flexibility to 
distribute quota inseason to qualified IBQ share recipients with any 
recent fishing activity or qualified IBQ share recipients that leased 
out quota to other Atlantic Tunas Longline permit holders. This differs 
from the selected alternative in two key ways. First, under the third 
alternative, only qualified IBQ share recipients with recent activity 
would receive an inseason transfer, while under the selected 
alternative all permitted Atlantic Tunas Longline vessels with recent 
activity would receive an inseason transfer. Secondly, under the third 
alternative, relevant activity would include IBQ leasing activity in 
addition to the recent fishing activity required under the selected 
alternative. In 2015, of the 104 pelagic longline vessels with recent 
fishing activity, 100 vessels were associated with IBQ shares (four 
vessels were not associated with IBQ shares in 2015). In addition, 5 
vessels were associated with IBQ shares that did not fish but did lease 
their allocation to other vessels. If NMFS assumes a future inseason 
transfer of 34 mt, each of those 105 vessels associated with IBQ shares 
(100 with recent fishing activity and 5 that leased IBQ allocation) 
would receive 0.324 mt (714 lb) under the third alternative. Based on 
the average 2015 IBQ lease price of $3.34 per pound, the economic value 
of such an inseason transfer of 714 lb per vessel would be 
approximately $2,385 per vessel owner. Vessels associated with IBQ 
shares with recent fishing activity or IBQ leasing activity would 
receive $545 more in value (30 percent more quota) than under the ``no 
action'' (status quo) alternative. This is $23 less per vessel than 
under the selected alternative. In addition, under the third 
alternative, fewer vessels with recent fishing activity would receive 
quota and new entrants would not receive quota. For these reasons, NMFS 
did not prefer the third alternative.

List of Subjects in 50 CFR Part 635

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

    Dated: December 22, 2016.
Samuel D. Rauch III,
Deputy Assistant Administrator for Regulatory Programs, National Marine 
Fisheries Service.
    For the reasons set out in the preamble, 50 CFR part 635 is amended 
as follows:

[[Page 95909]]

PART 635--ATLANTIC HIGHLY MIGRATORY SPECIES

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

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


0
2. In Sec.  635.15, revise paragraph (b) introductory text and add 
paragraph (b)(9) to read as follows:


Sec.  635.15  Individual bluefin tuna quotas.

* * * * *
    (b) IBQ allocation and usage. An initial IBQ quota allocation is 
the amount of bluefin tuna (whole weight) in metric tons (mt) that a 
qualified IBQ share recipient (i.e., a share recipient who has 
associated their permit with a vessel) is allotted to account for 
incidental catch of bluefin tuna during a specified calendar year. 
Unless otherwise required under paragraph (b)(5) of this section, an 
Atlantic Tunas Longline permitted vessel's initial IBQ allocation for a 
particular year is derived by multiplying its IBQ share (percentage) by 
the initial Longline category quota for that year. NMFS may transfer 
additional quota to the Longline category inseason as authorized under 
Sec.  635.27(a), and in accordance with Sec.  635.27(a)(8) and (9), and 
may distribute the transferred quota within the Longline category in 
accordance with paragraph (b)(9) of this section.
* * * * *
    (9) Distribution of additional Longline category quota transferred 
inseason. NMFS may distribute the quota that is transferred inseason to 
the Longline category either to all IBQ share recipients as described 
under paragraph (k)(1) of this section or to permitted Atlantic Tunas 
Longline vessels that are determined by NMFS to have any recent fishing 
activity based on participation in the pelagic longline fishery. In 
making this determination, NMFS will consider factors for the subject 
and previous year such as the number of BFT landings and dead discards, 
the number of IBQ lease transactions, the average amount of IBQ leased, 
the average amount of quota debt, the annual amount of IBQ allocation, 
any previous inseason allocations of IBQ, the amount of BFT quota in 
the Reserve category (at Sec.  635.27(a)(7)(i)), the percentage of BFT 
quota harvested by the other quota categories, the remaining number of 
days in the year, the number of active vessels fishing not associated 
with IBQ share, and the number of vessels that have incurred quota debt 
or that have low levels of IBQ allocation. NMFS will determine if a 
vessel has any recent fishing activity based upon the best available 
information for the subject and previous year, such as logbook, vessel 
monitoring system, or electronic monitoring data. Any distribution of 
quota transferred inseason will be equal among selected recipients; 
when inseason distribution is only to Atlantic Tunas Longline permit 
holders with IBQ shares, it will therefore not be based on the initial 
IBQ share determination as specified in paragraph (k)(2) of this 
section.
    (i) Regional designations described in paragraph (b)(2) of this 
section will be applied to inseason quota distributed to IBQ share 
recipients.
    (ii) For permitted Atlantic Tunas Longline vessels with recent 
fishing activity that are not qualified IBQ share recipients, regional 
designations of Atlantic (ATL) or Gulf of Mexico (GOM) will be applied 
to the distributed quota based on best available information regarding 
geographic location of sets as reported to NMFS during the period of 
fishing activity analyzed above in this paragraph, with the designation 
based on where the majority of that activity occurred.
* * * * *
[FR Doc. 2016-31357 Filed 12-28-16; 8:45 am]
BILLING CODE 3510-22-P



                                                              Federal Register / Vol. 81, No. 250 / Thursday, December 29, 2016 / Rules and Regulations                                       95903

                                             cm) color mark. In marking or affixing                   seq.) and the Magnuson-Stevens Fishery                vessels to obtain BFT quota from other
                                             the purple band, the line may be dyed,                   Conservation and Management Act                       vessels with available individual quota
                                             painted, or marked with thin colored                     (Magnuson-Stevens Act; 16 U.S.C. 1801                 in order to enable full accounting for
                                             whipping line, thin colored plastic, or                  et seq.) governing the harvest of BFT by              BFT landings and dead discards, and
                                             heat-shrink tubing, or other material.                   persons and vessels subject to U.S.                   minimize constraints on fishing for
                                             [FR Doc. 2016–31363 Filed 12–28–16; 8:45 am]             jurisdiction are found at 50 CFR part                 target species;
                                             BILLING CODE 3510–22–P
                                                                                                      635. Section 635.27 subdivides the U.S.                  4. Balance the objective of limiting
                                                                                                      BFT quota recommended by the                          bluefin landings and dead discards with
                                                                                                      International Commission for the                      the objective of optimizing fishing
                                             DEPARTMENT OF COMMERCE                                   Conservation of Atlantic Tunas (ICCAT)                opportunities and maintaining
                                                                                                      and implemented by NMFS among the                     profitability; and
                                             National Oceanic and Atmospheric                         various domestic fishing categories per                  5. Balance the above objectives with
                                             Administration                                           the allocations established in the 2006               potential impacts on the directed permit
                                                                                                      Consolidated Atlantic Highly Migratory                categories that target BFT, and the
                                             50 CFR Part 635                                          Species Fishery Management Plan (2006                 broader objectives of the 2006
                                                                                                      Consolidated HMS FMP) (71 FR 58058,                   Consolidated HMS FMP and the
                                             [Docket No. 160527473–6999–02]                           October 2, 2006), as amended by                       Magnuson-Stevens Fishery
                                             RIN 0648–BG09                                            Amendment 7 to the 2006 Consolidated                  Conservation and Management Act
                                                                                                      HMS FMP (Amendment 7) (79 FR                          (Magnuson-Stevens Act).
                                             Atlantic Highly Migratory Species;                       71510, December 2, 2014), and in                         IBQ share recipients receive an
                                             Individual Bluefin Quota Program;                        accordance with implementing                          annual allocation of the Longline
                                             Inseason Transfers                                       regulations. The current baseline U.S.                category quota based on the percentage
                                                                                                      BFT quota and subquotas were                          share they received through
                                             AGENCY:  National Marine Fisheries                       established and analyzed in the BFT                   Amendment 7 but only if their permit
                                             Service (NMFS), National Oceanic and                     quota final rule (80 FR 52198, August                 is associated with a vessel in the subject
                                             Atmospheric Administration (NOAA),                       28, 2015). NMFS is required under                     year (i.e., only ‘‘qualified IBQ share
                                             Commerce.                                                ATCA and the Magnuson-Stevens Act to                  recipients’’ receive annual allocations).
                                             ACTION: Final rule.                                      provide U.S. fishing vessels with a                   Permit holders that were not selected to
                                                                                                      reasonable opportunity to harvest the                 receive IBQ shares through Amendment
                                             SUMMARY:    NMFS modifies the Atlantic                   ICCAT-recommended quota.                              7 may still fish, but they are required to
                                             highly migratory species (HMS)                                                                                 lease quota through the IBQ electronic
                                             regulations regarding the distribution of                Background                                            system. Every vessel must have a
                                             inseason Atlantic bluefin tuna (BFT)                       Background information about the                    minimum amount of quota allocation to
                                             quota transfers to the Longline category.                need for additional flexibility within the            fish (e.g., 0.25 metric tons (mt) whole
                                             This final rule provides NMFS the                        IBQ Program for distribution of BFT                   weight (ww) (551 lb ww) for a trip in the
                                             ability to distribute quota inseason                     quota transferred to the Longline                     Gulf of Mexico and 0.125 mt ww (276
                                             either to all qualified Individual Bluefin               category inseason was provided in the                 lb ww) for a trip in the Atlantic),
                                             Quota (IBQ) share recipients (i.e., share                preamble to the proposed rule (81 FR                  whether obtained through shares or by
                                             recipients who have associated their                     65988, September 26, 2016) and most of                leasing, and every vessel must
                                             permit with a vessel) or only to                         that information is not repeated here.                individually account for its BFT
                                             permitted Atlantic Tunas Longline                          Vessels fishing with pelagic longline               landings and dead discards through the
                                             vessels with recent fishing activity,                    gear, which may only catch BFT                        IBQ electronic system.
                                             whether or not they are associated with                  incidentally while fishing for target                    In July 2015 and January 2016, NMFS
                                             IBQ shares. This action is necessary to                  species (primarily swordfish and                      transferred quota inseason from the
                                             optimize fishing opportunity in the                      yellowfin tuna), hold limited access                  Reserve category to the Longline
                                             directed pelagic longline fishery for                    Atlantic Tunas Longline permits and                   category (80 FR 45098, July 29, 2015; 81
                                             target species such as tuna and                          utilize Longline category BFT quota.                  FR 19, January 4, 2016). In these
                                             swordfish and to improve the                             Through Amendment 7, NMFS                             inseason actions, NMFS distributed the
                                             functioning of the IBQ Program and its                   established the IBQ Program, a catch                  transferred quota in equal amounts to
                                             leasing provisions consistent with the                   share program that identified 136 permit              136 qualified IBQ share recipients.
                                             objectives of Amendment 7 to the 2006                    holders as IBQ share recipients based on              During 2015, 36 of these 136 qualified
                                             Consolidated HMS Fishery Management                      specified criteria, including historical              IBQ share recipients had no pelagic
                                             Plan (FMP).                                              target species landings and the bluefin               longline fishing activity (i.e., they took
                                             DATES: Effective on January 28, 2017.                    catch-to-target species ratios from 2006              no fishing trips with pelagic longline
                                                                                                      through 2012. NMFS currently                          gear). Furthermore, 31 of the 36
                                             ADDRESSES: Supporting documents,
                                                                                                      distributes and manages the Longline                  qualified IBQ share recipients that did
                                             including the Regulatory Impact Review
                                                                                                      category BFT quota via the IBQ                        not fish also did not lease IBQ to others
                                             and Final Regulatory Flexibility
                                                                                                      Program.                                              (i.e., 31 neither fished nor leased and 5
                                             Analysis, may be downloaded from the
                                                                                                        The specific objectives of the IBQ                  did not fish but leased out their IBQ
                                             HMS Web site at www.nmfs.noaa.gov/
                                                                                                      Program are to:                                       allocations). As a result, those 31 IBQ
                                             sfa/hms/.
                                                                                                        1. Limit the amount of BFT landings                 allocations went unused for the year
                                             FOR FURTHER INFORMATION CONTACT:                         and dead discards in the pelagic                      and expired at year’s end.
                                             Thomas Warren or Sarah McLaughlin,                                                                                NMFS received requests, among other
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                                                                                                      longline fishery;
                                             978–281–9260; Carrie Soltanoff, 301–                       2. Provide strong incentives for the                suggestions about the IBQ Program and
                                             427–8503.                                                vessel owner and operator to avoid BFT                management of the pelagic longline
                                             SUPPLEMENTARY INFORMATION:                               interactions, and thus reduce bluefin                 fishery, that when quota is transferred
                                             Regulations implemented under the                        dead discards;                                        inseason to the Longline category,
                                             authority of the Atlantic Tunas                            3. Provide flexibility in the quota                 NMFS distribute it only to those vessels
                                             Convention Act (ATCA; 16 U.S.C. 971 et                   system to enable pelagic longline                     that are currently fishing (whether


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                                             95904            Federal Register / Vol. 81, No. 250 / Thursday, December 29, 2016 / Rules and Regulations

                                             associated with IBQ shares or not) to                    the amount of BFT quota in the Reserve                inseason will be distributed equally to
                                             optimize fishing opportunity and                         category, the percentage of BFT quota                 the vessel accounts associated with the
                                             account for dead discards, rather than                   harvested by the other quota categories,              relevant vessels via the electronic IBQ
                                             distributing it equally to all IBQ share                 the remaining number of days in the                   system. In either case, when a qualified
                                             recipients, some of whom currently                       year, the number of active vessels                    IBQ share recipient receives inseason
                                             neither fish with pelagic longline gear                  fishing not associated with IBQ share,                quota, the quota will be designated as
                                             nor lease quota to other active Longline                 and the number of vessels that have                   either Gulf of Mexico (GOM) IBQ,
                                             fishery participants. The proposed rule                  incurred quota debt or that have low                  Atlantic (ATL) IBQ, or both GOM and
                                             considered and analyzed that approach                    levels of IBQ allocation. NMFS will                   ATL IBQ, according to the share
                                             and invited public comment.                              determine which approach will best                    recipient’s regional designations. For
                                                This final rule modifies the                          meet the specific objectives of the IBQ               vessels with recent fishing activity that
                                             regulations to specify that distribution                 Program as stated in Amendment 7,                     are not qualified IBQ share recipients,
                                             of quota transferred to the Longline                     including the objective of providing                  NMFS will assign the distributed quota
                                             category inseason (i.e., quota beyond the                ‘‘flexibility in the quota system to                  a regional designation based on where
                                             baseline Longline category quota that is                 enable pelagic longline vessels to obtain             the majority of the vessel’s ‘‘recent
                                             distributed to qualified IBQ share                       BFT quota from other vessels with                     fishing activity’’ occurred for the
                                             recipients according to the three                        available individual quota in order to                relevant period analyzed.
                                             shareholder percentages implemented                      enable full accounting for BFT landings
                                             through Amendment 7) may be either to                                                                          Response to Comments
                                                                                                      and dead discards, and minimize
                                             all qualified IBQ share recipients or                    constraints on fishing for target                        NMFS received five written
                                             only to permitted Atlantic Tunas                         species.’’ For example, in years where                comments on the proposed rule during
                                             Longline vessels with recent fishing                     leasing by IBQ share recipients is not                the comment period, three of which
                                             activity whether they are associated                     occurring as anticipated by Amendment                 expressed support for the rule as
                                             with IBQ shares or not. NMFS will                        7, distribution to only active vessels                proposed, particularly the flexibility in
                                             review information from logbook, vessel                  might be appropriate to encourage                     distribution of inseason BFT quota and
                                             monitoring system (VMS), or electronic                   leasing at levels that ensure appropriate             efficient use of quota through inseason
                                             monitoring data to determine whether                     functioning of the IBQ system in future               distribution to vessels with recent
                                             any fishing activity has occurred over                   years. In years where the leasing                     fishing activity, including newly-
                                             the course of the subject and previous                   program is functioning well and leasing               permitted vessels. Two written
                                             year thus indicating that there is ‘‘recent              is occurring as needed and as                         comments expressed qualified support
                                             fishing activity,’’ as discussed in more                 anticipated by Amendment 7,                           for the proposed flexibility but
                                             detail below. For example, for inseason                  distribution may be to all of the                     suggested modified approaches to quota
                                             transfers in 2017, NMFS will examine                     qualified IBQ share recipients.                       disbursement. All written comments
                                             fishing activity data for 2016 and 2017.                    If NMFS distributes the inseason                   can be found at http://
                                             Providing flexibility in the quota system                quota to all qualified IBQ share                      www.regulations.gov/. The comments
                                             and maintaining flexibility of the                       recipients, those qualified IBQ share                 are summarized below by topic together
                                             regulations to account for the highly                    recipients will receive equal amounts of              with NMFS’ responses.
                                             variable nature of the BFT interactions                  the quota transferred.                                   Comment 1: All comments supported
                                             in the pelagic longline fishery was an                      If NMFS distributes inseason quota                 the objective of, and rationale for, the
                                             objective of Amendment 7 (See, e.g.,                     only to those vessels with recent fishing             proposed regulatory changes to the IBQ
                                             Amendment text at 79 FR 71510 and                        activity, vessels with ‘‘recent fishing               Program. Specifically, comments
                                             71559), and this adjustment to the                       activity’’ in the pelagic longline fishery            supported the objective of regulations
                                             regulations will further that objective.                 will be based upon available                          that would allow NMFS to optimize the
                                                In deciding whether to transfer                       information such as logbook, VMS,                     distributions of inseason Atlantic BFT
                                             additional quota to the Longline                         dealer, or electronic monitoring data for             quota transfers to the Longline category
                                             category inseason from the Reserve                       the subject and previous year. Any                    by distributing inseason BFT quota
                                             category, NMFS would first consider the                  vessel activity in the pelagic longline               either to all qualified IBQ share
                                             existing 14 regulatory determination                     fishery during this date range will be                recipients or only to those permitted
                                             criteria for inseason or annual                          sufficient to qualify as ‘‘recent fishing             Atlantic Tunas Longline vessels with
                                             adjustments at 50 CFR 635.27(a)(8),                      activity.’’ The specific data analyzed for            recent fishing activity, whether or not
                                             including the need to ‘‘optimize fishing                 this date range in a given inseason                   they are associated with IBQ shares.
                                             opportunity.’’                                           action will be those available when the               Comments supported the underlying
                                                Next, if NMFS decides to transfer                     inseason transfer occurs, and will                    rationale of the proposed measure,
                                             quota to the Longline category inseason,                 depend on which complete data are                     which they expressed as providing
                                             NMFS will then decide whether to                         available at that time. For example,                  reasonable fishing opportunities for
                                             distribute that quota to all qualified IBQ               logbook data for a particular year are                pelagic longline vessels in the context of
                                             share recipients or only to permitted                    typically not available for use until                 the constraints of the IBQ Program.
                                             Atlantic Tunas Longline vessels with                     several months into the following year                Some commenters specifically
                                             recent fishing activity whether or not                   due to the process of data entry and                  supported the concept of distributing
                                             the vessel is associated with IBQ shares.                quality control, as well as late reporting.           inseason quota only to active vessels in
                                             This decision will be based on                           Therefore, early in a year, NMFS may                  order to increase efficiency of quota use
                                             information for the subject year and                     determine vessel activity for the                     among vessels, allow the distribution of
                                             previous year, including the number of                                                                         quota to new participants in the fishery,
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                                                                                                      previous and subject year using VMS
                                             BFT landings and dead discards, the                      data, whereas later in the year, it might             and enable the potential for larger
                                             number of IBQ lease transactions, the                    use both logbook and VMS data.                        amounts of quota for each permit
                                             average amount of IBQ leased, the                           Whether NMFS distributes quota to                  holder. One comment noted that the
                                             average amount of quota debt, the                        all qualified IBQ recipients or to only               proposed regulations contribute to
                                             annual amount of IBQ allocation, any                     those permitted vessels with recent                   balancing the objective of optimizing
                                             previous inseason allocations of IBQ,                    fishing activity, quota transferred                   fishing opportunity and maintaining


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                                                              Federal Register / Vol. 81, No. 250 / Thursday, December 29, 2016 / Rules and Regulations                                     95905

                                             profitability with the objective of                      the previous year, they would be                      activity, suggesting that the amount of
                                             limiting BFT landings and dead                           distributed a 0.25 share of BFT quota,                quota distributed to each vessel should
                                             discards.                                                and if the vessel completed 26 to 65 sets             vary depending upon the amount of
                                                Response: NMFS agrees that the                        during the previous year, they would be               pelagic longline sets completed. At the
                                             regulatory change to the IBQ Program                     distributed a 0.50 share of BFT quota,                beginning of the year, IBQ share
                                             will facilitate accounting for BFT                       and so on. The commenter also                         recipients are allocated different
                                             bycatch by permitted Atlantic Tunas                      suggested that inactive IBQ share                     amounts of annual IBQ, based upon one
                                             Longline vessels actively participating                  recipients that have leased the full                  of the three defined share percentages
                                             in the HMS pelagic longline fishery and                  amount of their allocation to other                   associated with the Atlantic Tunas
                                             support optimizing the distribution of                   Atlantic Tunas Longline vessels should                Longline permit, which was based on a
                                             quota among vessels. When transferring                   receive inseason quota.                               formula that considered many factors
                                             quota from the Reserve category to the                      Response: NMFS proposed a simple                   through the Amendment 7 process,
                                             Longline category inseason, NMFS will                    method of defining what an active                     including indicators of vessel activity.
                                             consider specific factors in the fishery                 vessel is and distributing inseason quota             NMFS determined that additional
                                             and determine whether distribution of                    equally among active vessels because                  distributions of quota inseason should
                                             inseason quota (in the Longline                          inseason distributions of quota are                   be in equal amounts largely for
                                             category) to all qualified IBQ share                     likely to be relatively small amounts of              simplicity of administration and given
                                             recipients or only to those permitted                    quota compared to annual allocations of               the small amounts of quota involved.
                                             Atlantic Tunas Longline vessels with                     IBQ to share recipients. The use of                   An inseason quota distribution that is
                                             recent fishing activity will best support                formulas such as that proposed by the                 based upon a formula would be more
                                             the objectives of the FMP. Distribution                  commenter to distribute quota may                     complex to implement than an equal
                                             of inseason quota only to active vessels                 result in amounts distributed that are                distribution and could diminish the
                                             (if the total number of active vessels is                less than the minimum share amount                    benefits if implementation of the quota
                                             a smaller number of vessels than all                     required to fish. Distributing such small             transfer and distribution took a
                                             qualified vessels) may result in a larger                amounts of quota to vessels inseason                  prolonged amount of time. Therefore,
                                             amount of quota for each recipient                       might have little beneficial impact on                NMFS finalizes as proposed the
                                             vessel. A larger inseason distribution                   fishing operations and could render the               provision that will distribute inseason
                                             would help these active vessels to                       transfer largely meaningless for many                 quota equally among selected recipients.
                                             remain fishing longer under fewer quota                  vessels. With respect to setting a                       Finally, the commenter suggested that
                                             constraints and would reduce the                         threshold number of pelagic longline                  inactive IBQ share recipients that have
                                             transaction costs associated with finding                sets as a criterion for receiving inseason            leased the full amount of their
                                             additional quota through the leasing                     allocation, all vessels fishing with                  allocation to other Atlantic Tunas
                                             program in years where leased quota is                   pelagic longline gear must possess the                Longline vessels should receive
                                             not readily available. NMFS agrees that                  minimum amount of IBQ (0.25 mt ww                     inseason quota distributions. Under the
                                             the regulation will be consistent with                   (551 lb ww) in the Gulf of Mexico and                 conditions at this time, the agency
                                             the objectives of the IBQ Program,                       0.125 mt ww (276 lb ww) in the                        prefers its simpler proposed approach
                                             which include the objective: ‘‘Balance                   Atlantic) before they can fish, and this              for distributing the small amounts of
                                             the objective of limiting BFT landings                   requirement applies regardless of the                 quota that typically are transferred
                                             and dead discards with the objective of                  level of fishing activity. Although it is             inseason. By distributing the quota
                                             optimizing fishing opportunities and                     possible that a vessel could conduct a                transferred inseason equally to active
                                             maintaining profitability’’.                             single longline set with the intention of             vessels inseason additional trips may be
                                                Comment 2: Three comments further                     becoming eligible for a potential small               possible in years that leasing is not
                                             supported the specifics of the proposed                  future inseason quota distribution, it is             occurring as anticipated by Amendment
                                             regulatory changes, including the data                   likely that there would be few instances              7. NMFS notes, however, that it will
                                             and timeframe that will be analyzed to                   of such behavior because the potential                further consider this suggested approach
                                             determine whether ‘‘recent fishing                       costs and uncertainty of any benefit                  as an incentive for those who fully
                                             activity’’ has occurred and equal                        associated with such behavior should                  participate in the leasing program. This
                                             distribution of inseason BFT quota                       serve as adequate disincentive for                    could be included in the comprehensive
                                             among the recipients.                                    ‘‘gaming the system.’’ Furthermore, the               three-year review of the IBQ Program
                                                One commenter was opposed to the                      possibility that active vessels may                   that is required by the Magnuson-
                                             aspect of the proposed rule that                         directly receive quota from the Agency                Stevens Act and the 2006 Consolidated
                                             considers a vessel to be ‘‘active’’ at any               when the leasing system is not                        HMS FMP and that NMFS plans to
                                             level of activity, without any threshold                 functioning effectively, may encourage                initiate in 2017.
                                             amount of fishing activity specified. The                otherwise-inactive vessel owners to                      Comment 3: One commenter sought
                                             commenter was concerned that a vessel                    more seriously consider leasing out                   changes to other aspects of the IBQ
                                             might ‘‘game the system’’ and deploy a                   their quota earlier in the season through             Program regulations, such as modifying
                                             single longline set on a single trip, with               the IBQ system, rather than waiting to                the IBQ rules to allow the carryover of
                                             the goal of establishing a minimal level                 see if leasing prices increase later in the           unused quota from one year to the next,
                                             of fishing activity that would                           season. Even if limited instances of such             and asked that NMFS consider changes
                                             subsequently enable the vessel to be a                   activity occurred, NMFS does not                      to annual allocation of IBQ (i.e.,
                                             recipient of an inseason distribution of                 believe that such action would undercut               distribution of the baseline Longline
                                             BFT quota. The commenter suggested a                     the effectiveness of the regulatory                   category quota).
                                             meaningful increase in the number of                                                                              Response: The suggested changes to
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                                                                                                      change, which is largely aimed at
                                             pelagic longline sets required, and                      limiting the amount of quota that could               the regulations were not among the
                                             suggested that the amount of quota                       be distributed to vessels that have no                specific management measures
                                             distributed to each vessel should vary                   fishing activity whatsoever.                          considered by the proposed rule and are
                                             depending upon the amount of pelagic                        The commenter also suggests that the               beyond the scope of this rulemaking.
                                             longline sets completed. For example, if                 amount of quota distributed inseason                  The scope of this rulemaking addressed
                                             the vessel completed 1 to 25 sets during                 should be based on the level of vessel                only inseason transfer criteria


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                                             95906            Federal Register / Vol. 81, No. 250 / Thursday, December 29, 2016 / Rules and Regulations

                                             regulations; provisions regarding carry-                    This action is categorically excluded              result in significant economic impacts
                                             forward and annual allocation of IBQ                     from the requirement to prepare an                    to a substantial number of small entities,
                                             were established in Amendment 7 and                      environmental assessment (EA) in                      and identify and analyze any significant
                                             no changes to those provisions were                      accordance with the National                          alternatives to the rule that accomplish
                                             considered in this action. NMFS may                      Environmental Policy Act and NOAA                     the objectives of applicable statutes and
                                             consider changes to these provisions                     administrative order NAO 216–6 (as                    minimizes any significant effects on
                                             and additional topics related to the                     preserved by NAO 216–6A). This action                 small entities.
                                             management of the pelagic longline                       may be categorically excluded since it is
                                                                                                                                                            Statement of the Need for and
                                             fishery in future rulemakings and in the                 a change to a previously analyzed and
                                                                                                                                                            Objectives of the Rule
                                             comprehensive three-year review of the                   approved fishery management plan, and
                                             IBQ Program.                                             the change will have no substantive                      Section 604(a)(1) of the RFA requires
                                                Comment 4: One comment stated that                    effect, individually or cumulatively, on              a FRFA to contain a statement of the
                                             the IBQ Program, as implemented under                    the human environment beyond that                     need for and objectives of the rule. The
                                             Amendment 7, is not consistent with                      already analyzed in the Environmental                 purpose of this rulemaking, consistent
                                             several requirements of the Magnuson-                    Impact Statement for Amendment 7 (79                  with the 2006 Consolidated HMS FMP
                                             Stevens Act including: The IBQ Program                   FR 71510, December 2, 2014) and in the                objectives, the Magnuson-Stevens Act,
                                             does not provide pelagic longline                        EA for the final rule that increased the              and other applicable law, is to provide
                                             fishermen with a reasonable                              U.S. BFT quota (for 2015 and until                    NMFS additional flexibility when
                                             opportunity to harvest the Longline                      changed) based on the recommendation                  distributing quota inseason to the
                                             category BFT quota; the IBQ Program                      of the International Commission for the               Longline category. Through this final
                                             does not minimize disadvantages to U.S.                  Conservation of Atlantic Tunas (80 FR                 rule, NMFS may distribute quota
                                             fishermen; utilization of BFT quota                      52198, August 28, 2015). Inseason quota               inseason either to all qualified IBQ
                                             under the IBQ Program could result in                    allocations to the Longline category do               share recipients (those who have
                                             unfair and inequitable allocation of                     not modify the annual U.S. BFT quota                  associated their share with a vessel) or
                                             quota to pelagic longline fishermen; the                 nor the fishing mortality associated with             to permitted Atlantic Tunas Longline
                                             IBQ Program does not provide fair and                    that quota. Minor modifications of                    vessels with recent fishing activity
                                             equitable distribution of access                         allocations to vessels may contribute                 whether or not they are associated with
                                             privileges; and the IBQ Program, as a                    somewhat to determining when fishing                  IBQ shares.
                                             limited access privilege program                         mortality occurs but not in any                          Since January 1, 2015, NMFS has
                                             (LAPP), does not promote fishing safety,                 meaningful way that would change the                  received requests (among other
                                             fishery conservation and management,                     environmental impacts given the small                 suggestions about the IBQ Program and
                                             or social and economic benefits.                         amounts of quota at issue and the fact                management of the pelagic longline
                                                Response: This comment challenges                     that such transfers do not alter the                  fishery) to distribute quota inseason to
                                             the implementation of Amendment 7 to                     overall allowable mortality under the                 those vessels that have recent fishing
                                             the 2006 Consolidated HMS FMP,                           U.S. BFT quota. Furthermore, this                     activity (whether associated with IBQ
                                             which was adopted through separate                       action will not directly affect fishing               shares or not) to optimize fishing
                                             notice and comment rulemaking                            effort, fishing gear, interactions with               opportunity and account for dead
                                             finalized in December 2014. The issues                   threatened or endangered species, or                  discards, rather than distributing it
                                             raised in this comment are beyond the                    other relevant behaviors that could have              equally to all IBQ share recipients, some
                                             scope of this rulemaking. NMFS notes                     additional environmental impacts.                     of whom end up neither using it, nor
                                             that in litigation brought against the                   Thus, there is no environmental or                    making it available to other vessel
                                             Secretary of Commerce following                          ecological effect different than what was             owners through the IBQ leasing
                                             issuance of the final rule for                           analyzed previously.                                  program. In advance of and at the March
                                             Amendment 7, pelagic longline                               NMFS has prepared a Regulatory                     2016 HMS Advisory Panel meeting,
                                             fishermen and dealers alleged that                       Impact Review (RIR), and a Final                      pelagic longline fishery participants
                                             implementation of Amendment 7,                           Regulatory Flexibility Analysis (FRFA),               expressed concerns about the
                                             including the IBQ Program, failed to                     which present and analyze anticipated                 availability of IBQ allocation as
                                             comply with provisions of the                            social, and economic impacts of the                   implemented under Amendment 7.
                                             Magnuson-Stevens Act, similar to the                     alternatives contained in this rule. The              Longline fishery participants have
                                             issues raised in this comment. The                       list of alternatives and their analyses are           stated that, while they were able to
                                             federal district court for the Eastern                   provided in the RIR and are not                       obtain sufficient IBQ allocation by
                                             District of North Carolina rejected                      repeated here in their entirety. A copy               leasing it under the conditions that
                                             Plaintiffs’ claims and upheld                            of the RIR prepared for this final rule is            applied in 2015, those conditions were
                                             Amendment 7 as consistent with the                       available from NMFS (see ADDRESSES).                  temporary. They are concerned,
                                             Magnuson-Stevens Act and other                              A FRFA was prepared, as required by                however, that as additional
                                             applicable law (see Willie R. Etheridge                  section 604 of the Regulatory Flexibility             requirements began to apply in 2016,
                                             Seafood Co. v. Pritzker, 2016 WL                         Act (RFA, 5 U.S.C. 604 et seq.), and is               the IBQ Program could negatively
                                             1126014 (E.D.N.C., Mar. 21, 2016)).                      included below. The FRFA describes                    impact vessel operations and finances
                                                                                                      the economic impact this final rule will              given the pricing of IBQ, the
                                             Classification                                           have on small entities. A description of              distribution of quota among permit
                                               The NMFS Assistant Administrator                       the action, why it is being implemented,              holders as implemented by Amendment
                                             has determined that the final rule is                    and the legal basis for this action are               7, and the behavior of some permit
                                                                                                                                                            holders who, for example, they say hold
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                                             consistent with the 2006 Consolidated                    contained in the SUMMARY section of the
                                             HMS FMP and its amendments, the                          preamble.                                             on to IBQ for the entire season without
                                             Magnuson-Stevens Act, ATCA, and                             The goal of the RFA is to minimize                 participating in the fishery or engaging
                                             other applicable law.                                    the economic burden of federal                        in leasing. Longline fishery participants
                                               This final rule has been determined to                 regulations on small entities. To that                requested that NMFS take further steps
                                             be not significant for purposes of                       end, the RFA directs federal agencies to              to provide more access to quota for
                                             Executive Order 12866.                                   assess whether the regulation is likely to            those vessels with recent fishing activity


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                                                              Federal Register / Vol. 81, No. 250 / Thursday, December 29, 2016 / Rules and Regulations                                        95907

                                             to reduce the dependence on qualified                    fishing activity). None of the comments               associated with the 136 Atlantic Tunas
                                             IBQ share recipients, some of whom are                   addressed the economic impacts of the                 Longline permits with IBQ shares and
                                             not participating in the fishery or                      proposed measure. No changes were                     the additional permitted Atlantic Tunas
                                             engaging in leasing.                                     made to the rule as a result of the public            Longline vessels that fish with quota
                                                After looking at the issues raised by                 comments.                                             leased through the IBQ Program. The
                                             the fishery participants and at trends in                   Section 604(a)(3) of the RFA requires              impacts on these small businesses are
                                             IBQ leasing and utilization for 2015, it                 the Agency to respond to any comments                 described below in the discussion of
                                             became apparent that additional options                  filed by the Chief Counsel for Advocacy               alternatives considered. NMFS has
                                             are needed regarding the distribution of                 of the Small Business Administration                  determined that this action will not
                                             inseason transfers of BFT quota within                   (SBA) in response to the proposed rule,               likely directly affect any small
                                             the Longline category to assist NMFS in                  and a detailed statement of any change                organizations or small government
                                             providing reasonable opportunities to                    made in the rule as a result of such                  jurisdictions defined under the RFA.
                                             fish for target species under the limits                 comments. NMFS did not receive any
                                             imposed by the IBQ Program, to                           comments from the Chief Counsel for                   Description of the Projected Reporting,
                                             optimize distribution of BFT quota                       Advocacy of the SBA in response to the                Record-Keeping, and Other Compliance
                                             transferred inseason to the Longline                     proposed rule.                                        Requirements of the Rule, Including an
                                             category, and to encourage proper                                                                              Estimate of the Classes of Small Entities
                                                                                                      Description and Estimate of the Number                Which Will Be Subject to the
                                             functioning of the IBQ leasing program
                                                                                                      of Small Entities to Which the Rule Will              Requirements of the Report or Record
                                             as anticipated under Amendment 7. To
                                                                                                      Apply                                                   Section 604(a)(5) of the RFA requires
                                             account for the highly variable nature of
                                             the BFT caught in the pelagic longline                      Section 604(a)(4) of the RFA requires              Agencies to describe any new reporting,
                                             fishery and maintain flexibility in the                  agencies to provide an estimate of the                record-keeping and other compliance
                                             regulations, this action provides NMFS                   number of small entities to which the                 requirements. This rule does not contain
                                             with an additional option when                           rule would apply. The SBA has                         any new collection of information,
                                             distributing quota inseason to the                       established size criteria for all major               reporting, or record-keeping
                                             Longline category.                                       industry sectors in the United States,                requirements.
                                                The objective of this rule is to provide              including fish harvesters. SBA’s
                                                                                                      regulations provide that an agency may                Description of the Steps the Agency Has
                                             additional flexibility regarding the
                                                                                                      develop its own industry-specific size                Taken To Minimize the Significant
                                             distribution of inseason Atlantic BFT
                                                                                                      standards after consultation with                     Economic Impact on Small Entities
                                             quota transfers to the Longline category
                                                                                                      Advocacy and an opportunity for public                Consistent With the Stated Objectives of
                                             in order to facilitate the management of
                                                                                                      comment (see 13 CFR 121.903(c)).                      Applicable Statutes, Including a
                                             Atlantic HMS resources in a manner
                                                                                                      Under this provision, NMFS may                        Statement of the Factual, Policy, and
                                             that maximizes resource sustainability
                                                                                                      establish size standards that differ from             Legal Reasons for Selecting the
                                             and fishing opportunity, while
                                                                                                      those established by the SBA Office of                Alternative Adopted in the Final Rule
                                             minimizing, to the greatest extent
                                                                                                      Size Standards, but only for use by                   and the Reason That Each One of the
                                             possible, the socioeconomic impacts on
                                                                                                      NMFS and only for the purpose of                      Other Significant Alternatives to the
                                             affected fisheries.
                                                                                                      conducting an analysis of economic                    Rule Considered by the Agency Which
                                             Summary of the Issues Raised by the                      effects in fulfillment of the agency’s                Affect Small Entities Was Rejected
                                             Public Comments in Response to the                       obligations under the RFA. To utilize                    One of the requirements of a FRFA is
                                             Initial Regulatory Flexibility Analysis                  this provision, NMFS must publish such                to describe any alternatives which
                                             (IRFA), a Summary of the Assessment of                   size standards in the Federal Register.               accomplish the stated objectives and
                                             the Agency of Such Issues, and a                         In a final rule that became effective on              which minimize any significant
                                             Statement of Any Changes Made in the                     July 1, 2016 (80 FR 81194, December 29,               economic impacts. These impacts are
                                             Rule as a Result of Such Comments                        2015), NMFS established a small                       discussed below. Additionally, the RFA
                                                Section 604(a)(2) of the RFA requires                 business size standard of $11 million or              (5 U.S.C. 603(c)(1)–(4)) lists four general
                                             a summary of the significant issues                      less in annual gross receipts for all                 categories of ‘‘significant’’ alternatives
                                             raised by the public comments in                         businesses in the commercial fishing                  that would assist an agency in the
                                             response to the IRFA, a summary of the                   industry (NAICS 11411) for RFA                        development of significant alternatives.
                                             Agency’s assessment of such issues, and                  compliance purposes. NMFS considers                   These categories of alternatives are: (1)
                                             a statement of any changes made in the                   all HMS Atlantic Tunas Longline permit                Establishment of differing compliance
                                             rule as a result of such comments.                       holders (280 as of October 2015) to be                or reporting requirements or timetables
                                             NMFS received five written comments                      small entities because these vessels have             that take into account the resources
                                             on the proposed rule during the                          reported annual gross receipts of less                available to small entities; (2)
                                             comment period, three of which                           than $11 million for commercial fishing.              clarification, consolidation, or
                                             expressed support for the proposed                       The average annual gross revenue per                  simplification of compliance and
                                             flexibility in distribution of inseason                  active pelagic longline vessel was                    reporting requirements under the rule
                                             BFT quota and for efficient use of quota                 estimated to be $187,000 based on the                 for such small entities; (3) use of
                                             through inseason distribution to vessels                 170 active vessels between 2006 and                   performance rather than design
                                             with recent fishing activity, including                  2012, and that produced an estimated                  standards; and (4) exemptions from
                                             new vessels. Two written comments                        $31.8 million in total revenue annually.              coverage of the rule, or any part thereof,
                                             expressed qualified support for the                      The maximum annual revenue for any                    for small entities.
                                             proposed measures but suggested                                                                                   In order to meet the objectives of this
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                                                                                                      pelagic longline vessel between 2006
                                             modified approaches to quota                             and 2015 was $1.9 million, well below                 final rule, consistent with the
                                             disbursement (i.e., a tiered approach                    the NMFS small business size threshold                Magnuson-Stevens Act and ATCA,
                                             based on previous year activity that                     of $11 million in gross receipts for                  NMFS cannot establish differing
                                             would not disburse inseason quota                        commercial fishing.                                   compliance requirements for small
                                             equally among recipients but disburse                       NMFS has determined that this rule                 entities or exempt small entities from
                                             varying amounts based on levels of                       will apply to the small businesses                    compliance requirements. Thus, there


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                                             95908            Federal Register / Vol. 81, No. 250 / Thursday, December 29, 2016 / Rules and Regulations

                                             are no alternatives discussed that fall                  electronic IBQ system to the vessel                   entrants to the fishery by lowering their
                                             under the first and fourth categories                    accounts with permits with IBQ shares                 costs to obtain quota.
                                             described above. As for the second                       associated with a vessel. For those                      Under the third alternative, NMFS
                                             category, the objective of this rule is to               permits with IBQ shares that were not                 would have the flexibility to distribute
                                             provide additional flexibility regarding                 associated with a vessel at the time of               quota inseason to qualified IBQ share
                                             the distribution of inseason Atlantic                    the quota transfer, the IBQ is not usable             recipients with any recent fishing
                                             BFT quota transfers to the Longline                      by the permit holder (i.e., may not be                activity or qualified IBQ share recipients
                                             category, and therefore does not impact                  leased or used to account for BFT) until              that leased out quota to other Atlantic
                                             or change compliance and reporting                       the permit is associated with a vessel.               Tunas Longline permit holders. This
                                             requirements for small entities. The IBQ                 Based on the average 2015 IBQ lease                   differs from the selected alternative in
                                             Program was designed to adhere to                        price of $3.34 per pound, the economic                two key ways. First, under the third
                                             performance standards, the third                         value of such an inseason transfer of 551             alternative, only qualified IBQ share
                                             category above; modifications to the                     lb per vessel would be approximately                  recipients with recent activity would
                                             regulations implementing the IBQ                         $1,840 per vessel owner under the ‘‘no                receive an inseason transfer, while
                                             Program simply make adjustments to                       action’’ alternative.                                 under the selected alternative all
                                             the administration of those underlying                      Under the selected alternative, NMFS               permitted Atlantic Tunas Longline
                                             performance standards. NMFS analyzed                     may allocate quota inseason either to                 vessels with recent activity would
                                             several different alternatives in this                   each of the 136 qualified IBQ share                   receive an inseason transfer. Secondly,
                                             action and the rationale that NMFS used                  recipients or to all permitted Atlantic               under the third alternative, relevant
                                             to determine the alternative for                         Tunas Longline vessels with recent                    activity would include IBQ leasing
                                             achieving the desired objectives is                      fishing activity. In 2015, there were 104             activity in addition to the recent fishing
                                             described below.                                         active pelagic longline vessels (based on             activity required under the selected
                                                The first alternative is the ‘‘no action’’            logbook data). If NMFS assumes, for                   alternative. In 2015, of the 104 pelagic
                                             (status quo) alternative. The second                     example, a future inseason transfer of 34             longline vessels with recent fishing
                                             alternative, the selected alternative, will              mt distributed equally among vessels                  activity, 100 vessels were associated
                                             provide NMFS the flexibility to allocate                 with recent fishing activity, each of                 with IBQ shares (four vessels were not
                                             quota inseason to qualified IBQ share                    those 104 active vessels would receive                associated with IBQ shares in 2015). In
                                             recipients (those who have associated                    0.327 mt (721 lb) under the selected                  addition, 5 vessels were associated with
                                             their share with a vessel) or to permitted               alternative. Based on the average 2015                IBQ shares that did not fish but did
                                             Atlantic Tunas Longline vessels with                     IBQ lease price of $3.34 per pound, the               lease their allocation to other vessels. If
                                             any recent fishing activity, whether or                  economic value of such an inseason                    NMFS assumes a future inseason
                                             not they are associated with IBQ shares.                 transfers of 721 lb per vessel would be               transfer of 34 mt, each of those 105
                                             The third alternative would provide                      approximately $2,408 per vessel owner                 vessels associated with IBQ shares (100
                                             NMFS the flexibility to allocate quota                   under the selected alternative. Active                with recent fishing activity and 5 that
                                             inseason to qualified IBQ share                          vessel owners would receive $568 more                 leased IBQ allocation) would receive
                                             recipients with recent fishing activity or               in value (31 percent more quota) than                 0.324 mt (714 lb) under the third
                                             IBQ leasing activity. The economic                       under the ‘‘no action’’ (status quo)                  alternative. Based on the average 2015
                                             impacts of these three alternatives are                  alternative.                                          IBQ lease price of $3.34 per pound, the
                                             detailed below.                                             This increased allocation will help
                                                                                                                                                            economic value of such an inseason
                                                Under all three alternatives, NMFS                    these active vessels to remain fishing
                                                                                                                                                            transfer of 714 lb per vessel would be
                                             would continue to consider the                           longer under fewer quota constraints
                                                                                                                                                            approximately $2,385 per vessel owner.
                                             regulatory determination criteria for                    and reduce the transaction costs
                                                                                                                                                            Vessels associated with IBQ shares with
                                             inseason or annual adjustments under                     associated with finding the same
                                                                                                                                                            recent fishing activity or IBQ leasing
                                             50 CFR 635.27(a)(8), and if NMFS                         amount of additional quota. The
                                                                                                                                                            activity would receive $545 more in
                                             decided that inseason allocation to the                  qualified IBQ share recipients with no
                                                                                                                                                            value (30 percent more quota) than
                                             Longline category was warranted to                       fishing activity (36 in 2015) would not
                                             increase the amount of quota available                   receive the 551 lb of IBQ worth                       under the ‘‘no action’’ (status quo)
                                             to pelagic longline vessels, NMFS                        approximately $1,840 per vessel that                  alternative. This is $23 less per vessel
                                             would allocate additional quota. The                     they could have received under the                    than under the selected alternative. In
                                             difference among the alternatives is the                 status quo alternative if they were to                addition, under the third alternative,
                                             specific Atlantic Tunas Longline permit                  lease their quota to other permit                     fewer vessels with recent fishing
                                             holders that would receive distribution                  holders. Thus, the cost of this                       activity would receive quota and new
                                             of inseason BFT quota.                                   alternative will mainly be limited to the             entrants would not receive quota. For
                                                Under the ‘‘no action’’ alternative,                  forgone ability to lease out allocation               these reasons, NMFS did not prefer the
                                             NMFS would distribute the transferred                    that they otherwise would have                        third alternative.
                                             quota in equal amounts to all 136                        received. Under Amendment 7, the                      List of Subjects in 50 CFR Part 635
                                             qualified IBQ share recipients, which                    purpose of leasing is to accommodate
                                             include vessels actively fishing and                                                                             Fisheries, Fishing, Fishing vessels,
                                                                                                      various levels of unintended catch of
                                             vessels not actively fishing. This is the                                                                      Foreign relations, Imports, Penalties,
                                                                                                      BFT and to facilitate directed fishing for
                                             manner in which NMFS conducted                           Atlantic swordfish, other tunas, and                  Reporting and recordkeeping
                                             inseason transfers from the Reserve to                   other pelagic species. The few Atlantic               requirements, Treaties.
                                             the Longline category in July 2015 and                   Tunas Longline vessels that fished that                 Dated: December 22, 2016.
                                             January 2016 (80 FR 45098, July 29,
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                                                                                                      were not associated with IBQ shares but               Samuel D. Rauch III,
                                             2015; 81 FR 19, January 4, 2016). For                    that leased allocation from qualified IBQ             Deputy Assistant Administrator for
                                             each of these 34 mt quota transfers, 0.25                share recipients (four in 2015) will                  Regulatory Programs, National Marine
                                             mt (551 lb) of IBQ were distributed                      receive quota under the selected                      Fisheries Service.
                                             equally to each of the 136 qualified IBQ                 alternative worth approximately $2,408                  For the reasons set out in the
                                             share recipients under Amendment 7.                      per vessel. Such an inseason transfer                 preamble, 50 CFR part 635 is amended
                                             IBQ allocation was distributed via the                   will help facilitate participation by new             as follows:


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                                                              Federal Register / Vol. 81, No. 250 / Thursday, December 29, 2016 / Rules and Regulations                                     95909

                                             PART 635—ATLANTIC HIGHLY                                 available information for the subject and             FOR FURTHER INFORMATION CONTACT:
                                             MIGRATORY SPECIES                                        previous year, such as logbook, vessel                Daniel Luers, Fishery Management
                                                                                                      monitoring system, or electronic                      Specialist, 978–282–8457, Fax 978–281–
                                             ■ 1. The authority citation for part 635                 monitoring data. Any distribution of                  9135.
                                             continues to read as follows:                            quota transferred inseason will be equal              SUPPLEMENTARY INFORMATION:
                                               Authority: 16 U.S.C. 971 et seq.; 16 U.S.C.            among selected recipients; when                       Regulations governing the Atlantic
                                             1801 et seq.                                             inseason distribution is only to Atlantic             herring fishery are found at 50 CFR part
                                                                                                      Tunas Longline permit holders with IBQ                648. The regulations require annual
                                             ■ 2. In § 635.15, revise paragraph (b)                   shares, it will therefore not be based on
                                             introductory text and add paragraph                                                                            specification of the overfishing limit,
                                                                                                      the initial IBQ share determination as                acceptable biological catch (ABC),
                                             (b)(9) to read as follows:                               specified in paragraph (k)(2) of this                 annual catch limit (ACL), optimum
                                             § 635.15   Individual bluefin tuna quotas.               section.                                              yield (OY), domestic harvest and
                                             *      *     *     *     *                                  (i) Regional designations described in             processing, U.S. at-sea processing,
                                                (b) IBQ allocation and usage. An                      paragraph (b)(2) of this section will be              border transfer, and sub-ACLs for each
                                             initial IBQ quota allocation is the                      applied to inseason quota distributed to              management area. The 2016 Domestic
                                             amount of bluefin tuna (whole weight)                    IBQ share recipients.                                 Annual Harvest was set as 104,800
                                             in metric tons (mt) that a qualified IBQ                    (ii) For permitted Atlantic Tunas
                                                                                                                                                            metric tons; an additional 4,704 mt was
                                             share recipient (i.e., a share recipient                 Longline vessels with recent fishing
                                                                                                                                                            added to this total due to an
                                             who has associated their permit with a                   activity that are not qualified IBQ share
                                                                                                                                                            underharvest during the 2014 fishing
                                             vessel) is allotted to account for                       recipients, regional designations of
                                                                                                                                                            year, and 3 percent of herring catch was
                                             incidental catch of bluefin tuna during                  Atlantic (ATL) or Gulf of Mexico (GOM)
                                                                                                      will be applied to the distributed quota              set aside for research in the 2016–2018
                                             a specified calendar year. Unless                                                                              specifications (81 FR 75731, November
                                                                                                      based on best available information
                                             otherwise required under paragraph                                                                             1, 2016). After these adjustments, the
                                                                                                      regarding geographic location of sets as
                                             (b)(5) of this section, an Atlantic Tunas                                                                      resulting ACL for the 2016 fishing year
                                                                                                      reported to NMFS during the period of
                                             Longline permitted vessel’s initial IBQ                                                                        was 106,360 mt, and the ACL allocated
                                                                                                      fishing activity analyzed above in this
                                             allocation for a particular year is                                                                            to Area 1A (sub-ACL) was 29,524 mt.
                                                                                                      paragraph, with the designation based
                                             derived by multiplying its IBQ share                                                                              The Area 1A sub-ACL has 295 mt set
                                                                                                      on where the majority of that activity
                                             (percentage) by the initial Longline                                                                           aside for fixed gear fisheries west of
                                                                                                      occurred.
                                             category quota for that year. NMFS may                                                                         Cutler, ME, until November 1, 2016.
                                             transfer additional quota to the Longline                *       *    *    *     *                             Due to the variability of Canadian catch
                                                                                                      [FR Doc. 2016–31357 Filed 12–28–16; 8:45 am]
                                             category inseason as authorized under                                                                          in the New Brunswick weir fishery, a
                                                                                                      BILLING CODE 3510–22–P
                                             § 635.27(a), and in accordance with                                                                            1,000-mt portion of the 4,000-mt buffer
                                             § 635.27(a)(8) and (9), and may                                                                                between ABC and OY (the buffer to
                                             distribute the transferred quota within                                                                        account for Canadian catch) is allocated
                                                                                                      DEPARTMENT OF COMMERCE
                                             the Longline category in accordance                                                                            to Area 1A, provided New Brunswick
                                             with paragraph (b)(9) of this section.                   National Oceanic and Atmospheric                      weir landings are lower than the amount
                                             *      *     *     *     *                               Administration                                        specified in the buffer.
                                                (9) Distribution of additional Longline                                                                        The NMFS Regional Administrator is
                                             category quota transferred inseason.                     50 CFR Part 648                                       required to monitor the fishery landings
                                             NMFS may distribute the quota that is                                                                          in the New Brunswick weir fishery each
                                                                                                      [Docket No: 151215999–6960–02]
                                             transferred inseason to the Longline                                                                           year. If New Brunswick weir fishery
                                             category either to all IBQ share                         RIN 0648–XF071                                        herring catch through October 1 is less
                                             recipients as described under paragraph                                                                        than 4,000 mt, then 1,000 mt will be
                                             (k)(1) of this section or to permitted                   Fisheries of the Northeastern United                  subtracted from the management
                                             Atlantic Tunas Longline vessels that are                 States; Atlantic Herring Fishery;                     uncertainty buffer and allocated to the
                                             determined by NMFS to have any recent                    Adjustment to the Atlantic Herring                    ACL and Area 1A Sub-ACL as soon as
                                             fishing activity based on participation in               Management Area 1A Annual Catch                       possible. When such a determination is
                                             the pelagic longline fishery. In making                  Limit                                                 made, NMFS is required to publish a
                                             this determination, NMFS will consider                   AGENCY:  National Marine Fisheries                    notification in the Federal Register to
                                             factors for the subject and previous year                Service (NMFS), National Oceanic and                  adjust the Area 1A sub-ACL upward for
                                             such as the number of BFT landings and                   Atmospheric Administration (NOAA),                    the remainder of the fishing year.
                                             dead discards, the number of IBQ lease                   Commerce.                                                The Regional Administrator has
                                             transactions, the average amount of IBQ                  ACTION: Temporary rule; inseason                      determined, based on the best available
                                             leased, the average amount of quota                      adjustment.                                           information, that the New Brunswick
                                             debt, the annual amount of IBQ                                                                                 weir fishery catch for fishing year 2016
                                             allocation, any previous inseason                        SUMMARY:   NMFS adjusts the 2016                      through October 1, 2016, was 3,478 mt.
                                             allocations of IBQ, the amount of BFT                    fishing year annual catch limit for                   Therefore, effective December 29, 2016,
                                             quota in the Reserve category (at                        Atlantic Herring Management Area 1A                   1,000 mt will be allocated to the Area
                                             § 635.27(a)(7)(i)), the percentage of BFT                due to an underharvest in the New                     1A sub-ACL, thereby increasing the
                                             quota harvested by the other quota                       Brunswick weir fishery. This action is                fishing year 2016 Area 1A sub-ACL from
                                             categories, the remaining number of                      necessary to comply with the 2016–                    29,524 mt to 30,524 mt. Because any
                                             days in the year, the number of active                   2018 specifications and management                    increase to a sub-ACL also increases the
rmajette on DSK2TPTVN1PROD with RULES




                                             vessels fishing not associated with IBQ                  measures for the Atlantic Herring                     stock-wide ACL, this allocation
                                             share, and the number of vessels that                    Fishery Management Plan and to ensure                 increases the 2016 stock-wide ACL from
                                             have incurred quota debt or that have                    that accounting of the annual catch limit             106,360 mt to 107,360 mt.
                                             low levels of IBQ allocation. NMFS will                  is accurate for fishing year 2016.                       The allocation of 1,000 mt will be
                                             determine if a vessel has any recent                     DATES: Effective December 29, 2016,                   applied to the quota of Area 1A, which
                                             fishing activity based upon the best                     through December 31, 2016.                            closed on October 18, 2016, before


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Document Created: 2016-12-29 01:59:10
Document Modified: 2016-12-29 01:59:10
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionRules and Regulations
ActionFinal rule.
DatesEffective on January 28, 2017.
ContactThomas Warren or Sarah McLaughlin, 978-281-9260; Carrie Soltanoff, 301-427-8503.
FR Citation81 FR 95903 
RIN Number0648-BG09
CFR AssociatedFisheries; Fishing; Fishing Vessels; Foreign Relations; Imports; Penalties; Reporting and Recordkeeping Requirements and Treaties

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