82_FR_36259 82 FR 36111 - Fisheries of the Exclusive Economic Zone off Alaska; Bering Sea and Aleutian Islands Management Area; Bering Sea and Aleutian Islands Crab Rationalization Program

82 FR 36111 - Fisheries of the Exclusive Economic Zone off Alaska; Bering Sea and Aleutian Islands Management Area; Bering Sea and Aleutian Islands Crab Rationalization Program

DEPARTMENT OF COMMERCE
National Oceanic and Atmospheric Administration

Federal Register Volume 82, Issue 148 (August 3, 2017)

Page Range36111-36113
FR Document2017-16376

The North Pacific Fishery Management Council (Council) submitted Amendment 48 to the Fishery Management Plan for Bering Sea/ Aleutian Islands King and Tanner Crabs (Crab FMP) to NMFS for review. If approved, Amendment 48 would revise the Crab FMP to specify how NMFS determines the amount of limited access privileges held and used by groups in the Western Alaska Community Development Quota Program (CDQ Program) for the purposes of managing the excessive share limits under the Crab Rationalization (CR) Program. Amendment 48 is necessary to make the Crab FMP consistent with Magnuson-Stevens Fishery Conservation and Management Act (Magnuson-Stevens Act) requirements and NMFS' current method of managing excessive share limits for CDQ groups in the CR Program. This action is intended to promote the goals and objectives of the Magnuson-Stevens Act, the Crab FMP, and other applicable laws.

Federal Register, Volume 82 Issue 148 (Thursday, August 3, 2017)
[Federal Register Volume 82, Number 148 (Thursday, August 3, 2017)]
[Proposed Rules]
[Pages 36111-36113]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-16376]


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DEPARTMENT OF COMMERCE

National Oceanic and Atmospheric Administration

50 CFR Part 680

RIN 0648-BG84


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

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

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

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SUMMARY: The North Pacific Fishery Management Council (Council) 
submitted Amendment 48 to the Fishery Management Plan for Bering Sea/
Aleutian Islands King and Tanner Crabs (Crab FMP) to NMFS for review. 
If approved, Amendment 48 would revise the Crab FMP to specify how NMFS 
determines the amount of limited access privileges held and used by 
groups in the Western Alaska Community Development Quota Program (CDQ 
Program) for the purposes of managing the excessive share limits under 
the Crab Rationalization (CR) Program. Amendment 48 is necessary to 
make the Crab FMP consistent with Magnuson-Stevens Fishery Conservation 
and Management Act (Magnuson-Stevens

[[Page 36112]]

Act) requirements and NMFS' current method of managing excessive share 
limits for CDQ groups in the CR Program. This action is intended to 
promote the goals and objectives of the Magnuson-Stevens Act, the Crab 
FMP, and other applicable laws.

DATES: Submit comments on or before October 2, 2017.

ADDRESSES: Submit comments on this document, identified by NOAA-NMFS-
2017-0038, by any one of the following methods.
     Federal e-Rulemaking Portal: Go to www.regulations.gov/#!docketDetail;D=NOAA-NMFS-2017-0038, click the ``Comment Now!'' icon, 
complete the required fields, and enter or attach your comments.
     Mail: Submit written comments to Glenn Merrill, Assistant 
Regional Administrator, Sustainable Fisheries Division, Alaska Region 
NMFS, Attn: Ellen Sebastian. Mail comments to P.O. Box 21668, Juneau, 
AK 99802-1668.
    Instructions: Comments sent by any other method, to any other 
address or individual, or received after the end of the comment period 
may not be considered by NMFS. All comments received are a part of the 
public record and will be posted for public viewing on 
www.regulations.gov without change. All personal identifying 
information (e.g., name, address), confidential business information, 
or otherwise sensitive information submitted voluntarily by the sender 
will be publicly accessible. NMFS will accept anonymous comments (enter 
``N/A'' in the required fields if you wish to remain anonymous).
    Electronic copies of the Regulatory Impact Review (RIR) and the 
Categorical Exclusion prepared for Amendment 48 may be obtained from 
http://www.regulations.gov or from the NMFS Alaska Region Web site at 
http://alaskafisheries.noaa.gov.
    The Environmental Impact Statement (EIS), RIR, Final Regulatory 
Flexibility Analysis, and Social Impact Assessment prepared for the CR 
Program are available from the NMFS Alaska Region Web site at http://alaskafisheries.noaa.gov.

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

SUPPLEMENTARY INFORMATION: The Magnuson-Stevens Act requires that each 
regional fishery management council submit any fishery management plan 
amendment it prepares to NMFS for review and approval, disapproval, or 
partial approval by the Secretary of Commerce. The Magnuson-Stevens Act 
also requires that NMFS, upon receiving a fishery management plan 
amendment, immediately publish a notice in the Federal Register 
announcing that the amendment is available for public review and 
comment. This notice announces that proposed Amendment 48 to the Crab 
FMP is available for public review and comment.
    NMFS manages the king and Tanner crab fisheries in the U.S. 
exclusive economic zone of the Bering Sea and Aleutian Islands (BSAI) 
under the Crab FMP. The Council prepared, and NMFS approved, the Crab 
FMP under the authority of the Magnuson-Stevens Act, 16 U.S.C. 1801 et 
seq. Regulations governing U.S. fisheries and implementing the Crab FMP 
appear at 50 CFR parts 600 and 680.
    The CR Program was implemented on April 1, 2005 (70 FR 10174). The 
CR Program established a limited access privilege program for nine crab 
fisheries in the BSAI and assigned quota share (QS) to persons based on 
their historic participation in one or more of those nine BSAI crab 
fisheries during a specific period. Each year, a person who holds QS 
may receive an exclusive harvest privilege for a portion of the annual 
total allowable catch. This annual exclusive harvest privilege is 
called individual fishing quota (IFQ).
    NMFS also issued processor quota share (PQS) under the CR Program. 
Each year PQS yields an exclusive privilege to process a portion of the 
IFQ in each of the nine BSAI crab fisheries. This annual exclusive 
processing privilege is called individual processor quota (IPQ). Only a 
portion of the QS issued yields IFQ that is required to be delivered to 
a processor with IPQ; this IFQ is called Class A IFQ. Each year there 
is a one-to-one match of the pounds of Class A IFQ with the total 
pounds of IPQ issued in each crab fishery.
    The CDQ Program was established by the Council and NMFS in 1992, 
and in 1996, authorization for the Program was incorporated into the 
Magnuson-Stevens Act. The purpose of the CDQ Program is (1) to provide 
eligible western Alaska villages with the opportunity to participate 
and invest in fisheries in the BSAI, (2) to support economic 
development in western Alaska, (3) to alleviate poverty and provide 
economic and social benefits for residents of western Alaska, and (4) 
to achieve sustainable and diversified local economies in western 
Alaska (16 U.S.C. 1855(i)(1)(A)).
    Section 305(i) of the Magnuson-Stevens Act describes the CDQ 
Program and identifies the villages eligible to participate in the CDQ 
Program through the six entities specified in Section 305(i)(1)(D) as 
the CDQ groups (16 U.S.C. 1855(i)). Regulations at 50 CFR 679.2 define 
the term ``CDQ group'' as an entity identified as eligible for the CDQ 
Program under 16 U.S.C. 1855(i)(1)(D). The CDQ Program receives annual 
apportionments of total allowable catches (TACs) for a variety of 
commercially valuable species in the BSAI groundfish, crab, and halibut 
fisheries, which are in turn allocated among the six different CDQ 
groups. In addition to their allocations under the CDQ Program, CDQ 
groups participate in the AFA and CR Program fisheries by purchasing QS 
and PQS or through ownership of vessels or processors that participate 
in the fisheries. The CDQ groups have purchased both QS and PQS under 
the CR Program.
    Section 303A(c)(5)(D) of the Magnuson-Stevens Act requires the 
Council and NMFS to establish excessive share limits for limited access 
privilege (LAP) programs to prevent excessive accumulation of 
privileges by participants in the LAP programs (16 U.S.C. 
1853a(c)(5)(D)). The intent of these limits is to prevent excessive 
consolidation in the harvesting and processing sectors in order to 
maintain an appropriate distribution of economic and social benefits 
for fishery participants and communities. Because determination of 
excessive shares must consider the specific circumstances of each 
fishery, the Council has implemented different excessive share limits 
in the LAP programs in Alaska's fisheries, including the CR Program.
    The excessive share limit regulations prohibit a person from 
holding and using more than a specific portion of the LAPs allocated 
under the CR Program. Under 50 CFR 679.2, ``person'' includes 
individuals, corporations, partnerships, associations, and other non-
individual entities. To monitor holdings and use of LAPs, NMFS 
determines what portion of a program's harvesting and processing 
privileges a person holds and uses to ensure that no person holds or 
uses more privileges than authorized by the excessive share limit 
established for each LAP.
    NMFS determines a person's holding and use of a LAP by summing (1) 
the amount directly held and used by that person, and (2) the amount 
held and used by that person indirectly through an ownership interest 
in or control of another entity that also holds and uses the LAP. 
Businesses that hold and use LAPs in the CR Program are often composed 
of multiple owners that have ownership interests in multiple fishing 
businesses. In cases where a LAP is held by a business entity with more 
than one owner, NMFS applies the excessive share limits (also called 
holding and use limits or caps) to each entity that has an

[[Page 36113]]

ownership interest in or control of the LAP to monitor whether those 
entities each exceed the established caps. Ownership attribution refers 
to the method NMFS uses to assess the relationships between different 
entities that participate in LAP programs.
    NMFS uses two ownership attribution methods to assess these 
relationships. The two methods for attribution are the ``individual and 
collective'' rule and the ``10-percent rule.'' Under the individual and 
collective rule, a person is attributed holding or use of LAPs 
proportionally to their ownership in or control of other entities that 
hold or use LAPs. For example, if Company A owns or controls 15 percent 
of Company B that holds LAPs, Company A would be attributed 15 percent 
of the holding or use of those LAPs. In contrast, under the 10-percent 
rule, a person is attributed 100 percent of an entity's LAPs if that 
person owns or otherwise controls ten percent or more of that entity. 
Thus, if Company A owns or controls 10 percent or more of Company B, 
then all of Company B's holdings of LAPs are attributed to Company A. 
The individual and collective rule is less restrictive than the 10-
percent rule because a person is only attributed holding or use in 
proportion to how much that person owns or controls of other entities, 
rather than attributing 100 percent of the other entity's LAP holdings 
once the 10-percent threshold is met.
    When the Council recommended the CR Program, it expressed concern 
about the potential for excessive consolidation of QS and PQS, in which 
too few persons control all of the QS or PQS and the resulting annual 
IFQ and IPQ. The Council determined that excessive consolidation could 
have adverse effects on crab markets, price setting negotiations 
between harvesters and processors, employment opportunities for 
harvesting and processing crew, tax revenue to communities in which 
crab are landed, and other factors considered and described in the CR 
Program EIS. To address this concern, the CR Program includes limits on 
the amount of QS and PQS that a person can hold and the amount of IFQ 
and IPQ that a person can use. To facilitate the monitoring of these 
limits, NMFS requires holders of QS and PQS that are non-individual 
entities to annually submit information on their ownership structure, 
down to the individual level, and on each owner's percentage holdings 
in the entity. Holding and use limits for QS and IFQ vary across CR 
Program fisheries because of different fleet characteristics and the 
differences in historic dependency of participants on the different 
crab fisheries. Under 50 CFR 680.42(a)(2), NMFS applies holding and use 
limits on QS and IFQ using the individual and collective rule for all 
participants, including CDQ groups, as was recommended by the Council 
for monitoring harvesting privileges.
    For processing privileges, the CR Program limits a person to 
holding no more than 30 percent of the PQS initially issued in the 
fishery, and to using no more than the amount of IPQ resulting from 30 
percent of the PQS initially issued in a given fishery, with a limited 
exemption for persons receiving more than 30 percent of the initially-
issued PQS (50 CFR 680.42(b)). The rationale for holding and use limits 
is described in the CR Program EIS and the final rule implementing the 
CR Program (70 FR 10174, 10175; March 2, 2005). Under 50 CFR 
680.42(b)(3), NMFS applies holding and use limits on PQS and IPQ using 
the 10-percent rule, as was recommended by the Council and as was 
addressed in the preamble to the proposed rule for the CR Program (69 
FR 63200, 63219 & 63226; October 29, 2004).
    When the CR Program was implemented, NMFS used the 10-percent rule 
to monitor PQS and IPQ holding and use limits in the CR Program for all 
program participants, including CDQ groups. In 2006, the Coast Guard 
and Maritime Transportation Act of 2006 (Public Law 109-241; the Coast 
Guard Act) revised the Magnuson-Stevens Act to specify that CDQ groups 
would be subject to excessive share ownership, harvesting, or 
processing limitations only to the extent of their proportional 
ownership (16 U.S.C. 1855(i)(1)(F)(i)). Since the 2006 amendment to the 
Magnuson-Stevens Act, NMFS has used the individual and collective rule 
for CDQ groups to monitor excessive share limits for CDQ groups in the 
CR Program. The individual and collective rule allows CDQ groups to 
hold and use more PQS and IPQ than non-CDQ persons because non-CDQ 
persons will remain subject to the more restrictive ownership 
attribution method (the 10-percent rule).
    Amendment 48 would revise the Crab FMP to make it consistent with 
NMFS' ownership attribution process for calculating holding and use of 
PQS and IPQ to monitor excessive share limits for CDQ groups in the CR 
Program. Amendment 48 would revise Section 2.7.1 under Chapter 11 of 
the FMP in the Processing Sector Elements section of the Crab FMP to 
specify that PQS and IPQ holding and use caps for CDQ groups are 
applied using the individual and collective rule, without continuing to 
use the 10-percent rule for determining whether an entity is included 
in calculating a CDQ group's holding and use caps. For example, if a 
CDQ group holds 15 percent of a company that holds or uses PQS or IPQ, 
Amendment 48 to the Crab FMP would clarify that the CDQ group would be 
attributed 15 percent of the holding or use of that PQS or IPQ. 
Amendment 48 would not revise the Crab FMP for the QS and IFQ holding 
and use limits under the CR Program because NMFS uses the individual 
and collective rule to monitor QS and IFQ holding and use limits for 
all program participants, including CDQ groups. NMFS has used the 
individual and collective rule to determine holding and use of PQS and 
IPQ by CDQ groups since enactment of the Coast Guard Act; however, NMFS 
has not revised the Crab FMP to reflect this statutory change or NMFS' 
current process.
    Amendment 48 would benefit CDQ groups and the public by revising 
the Crab FMP for consistency with the Magnuson-Stevens Act. Amendment 
48 would also update the Crab FMP to specify the method NMFS currently 
uses to determine holding and use of processing privileges by CDQ 
groups for purposes of monitoring excessive share limits for the CR 
Program.
    Public comments are solicited on proposed Amendment 48 to the Crab 
FMP through the end of the comment period (see DATES). NMFS intends to 
publish in the Federal Register and seek public comment on a proposed 
rule that would implement Amendment 48, following NMFS' evaluation of 
the proposed rule under the Magnuson-Stevens Act. Public comments on 
the proposed rule must be received by the end of the comment period on 
Amendment 48 to be considered in the approval/disapproval decision on 
Amendment 48. All comments received by the end of the comment period on 
Amendment 48, whether specifically directed to the amendment or the 
proposed rule will be considered in the amendment approval/disapproval 
decision. Comments received after that date will not be considered in 
the approval/disapproval decision on the amendment. To be 
considered,comments must be received, not just postmarked or otherwise 
transmitted, by the last day of the comment period.

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

    Dated: July 31, 2017.
Emily H. Menashes,
Acting Director, Office of Sustainable Fisheries, National Marine 
Fisheries Service.
[FR Doc. 2017-16376 Filed 8-2-17; 8:45 am]
 BILLING CODE 3510-22-P



                                                                        Federal Register / Vol. 82, No. 148 / Thursday, August 3, 2017 / Proposed Rules                                                36111

                                                 A. Executive Order 12866: Regulatory                    F. Executive Order 13175: Consultation                not assign liability to any party. Also,
                                                 Planning and Review and Executive                       and Coordination With Indian Tribal                   placing a site on the NPL does not mean
                                                 Order 13563: Improving Regulation and                   Governments                                           that any remedial or removal action
                                                 Regulatory Review                                         This action does not have tribal                    necessarily need be taken.
                                                   This action is not a significant                      implications as specified in Executive                List of Subjects in 40 CFR Part 300
                                                 regulatory action and was therefore not                 Order 13175. Listing a site on the NPL
                                                                                                         does not impose any costs on a tribe or                 Environmental protection, Air
                                                 submitted to the Office of Management                                                                         pollution control, Chemicals, Hazardous
                                                 and Budget (OMB) for review.                            require a tribe to take remedial action.
                                                                                                         Thus, Executive Order 13175 does not                  substances, Hazardous waste,
                                                 B. Paperwork Reduction Act (PRA)                        apply to this action.                                 Intergovernmental relations, Natural
                                                                                                                                                               resources, Oil pollution, Penalties,
                                                   This action does not impose an                        G. Executive Order 13045: Protection of               Reporting and recordkeeping
                                                 information collection burden under the                 Children From Environmental Health                    requirements, Superfund, Water
                                                 PRA. This rule does not contain any                     and Safety Risks                                      pollution control, Water supply.
                                                 information collection requirements that                   The EPA interprets Executive Order                   Authority: 33 U.S.C. 1321(d); 42 U.S.C.
                                                 require approval of the OMB.                            13045 as applying only to those                       9601–9657; E.O. 13626, 77 FR 56749, 3CFR,
                                                 C. Regulatory Flexibility Act (RFA)                     regulatory actions that concern                       2013 Comp., p. 306; E.O. 12777, 56 FR 54757,
                                                                                                         environmental health or safety risks that             3 CFR, 1991 Comp., p.351; E.O. 12580, 52 FR
                                                    I certify that this action will not have             the EPA has reason to believe may                     2923, 3 CFR, 1987 Comp., p.193.
                                                 a significant economic impact on a                      disproportionately affect children, per                 Dated: July 27, 2017.
                                                 substantial number of small entities                    the definition of ‘‘covered regulatory                Barry N. Breen,
                                                 under the RFA. This action will not                     action’’ in section 2–202 of the                      Acting Assistant Administrator, Office of
                                                 impose any requirements on small                        Executive Order. This action is not                   Land and Emergency Management.
                                                 entities. This rule listing sites on the                subject to Executive Order 13045                      [FR Doc. 2017–16171 Filed 8–2–17; 8:45 am]
                                                 NPL does not impose any obligations on                  because this action itself is procedural
                                                                                                                                                               BILLING CODE 6560–50–P
                                                 any group, including small entities. This               in nature (adds sites to a list) and does
                                                 rule also does not establish standards or               not, in and of itself, provide protection
                                                 requirements that any small entity must                 from environmental health and safety
                                                 meet, and imposes no direct costs on                    risks. Separate future regulatory actions             DEPARTMENT OF COMMERCE
                                                 any small entity. Whether an entity,                    are required for mitigation of
                                                                                                                                                               National Oceanic and Atmospheric
                                                 small or otherwise, is liable for response              environmental health and safety risks.
                                                                                                                                                               Administration
                                                 costs for a release of hazardous                        H. Executive Order 13211: Actions That
                                                 substances depends on whether that                      Significantly Affect Energy Supply,                   50 CFR Part 680
                                                 entity is liable under CERCLA 107(a).                   Distribution, or Use
                                                 Any such liability exists regardless of                                                                       RIN 0648–BG84
                                                 whether the site is listed on the NPL                     This action is not subject to Executive
                                                 through this rulemaking.                                Order 13211, because it is not a                      Fisheries of the Exclusive Economic
                                                                                                         significant regulatory action under                   Zone off Alaska; Bering Sea and
                                                 D. Unfunded Mandates Reform Act                         Executive Order 12866.                                Aleutian Islands Management Area;
                                                 (UMRA)                                                                                                        Bering Sea and Aleutian Islands Crab
                                                                                                         I. National Technology Transfer and
                                                    This action does not contain any                     Advancement Act (NTTAA)                               Rationalization Program
                                                 unfunded mandate as described in                           This rulemaking does not involve                   AGENCY:  National Marine Fisheries
                                                 UMRA, 2 U.S.C. 1531–1538, and does                      technical standards.                                  Service (NMFS), National Oceanic and
                                                 not significantly or uniquely affect small                                                                    Atmospheric Administration (NOAA),
                                                 governments. This action imposes no                     J. Executive Order 12898: Federal                     Commerce.
                                                 enforceable duty on any state, local or                 Actions To Address Environmental
                                                                                                                                                               ACTION: Notice of availability of fishery
                                                 tribal governments or the private sector.               Justice in Minority Populations and
                                                                                                         Low-Income Populations                                management plan amendment; request
                                                 Listing a site on the NPL does not itself                                                                     for comments.
                                                 impose any costs. Listing does not mean                    The EPA believes the human health or
                                                 that the EPA necessarily will undertake                 environmental risk addressed by this                  SUMMARY:   The North Pacific Fishery
                                                 remedial action. Nor does listing require               action will not have potential                        Management Council (Council)
                                                 any action by a private party, state, local             disproportionately high and adverse                   submitted Amendment 48 to the Fishery
                                                 or tribal governments or determine                      human health or environmental effects                 Management Plan for Bering Sea/
                                                 liability for response costs. Costs that                on minority, low-income or indigenous                 Aleutian Islands King and Tanner Crabs
                                                 arise out of site responses result from                 populations because it does not affect                (Crab FMP) to NMFS for review. If
                                                 future site-specific decisions regarding                the level of protection provided to                   approved, Amendment 48 would revise
                                                 what actions to take, not directly from                 human health or the environment. As                   the Crab FMP to specify how NMFS
                                                 the act of placing a site on the NPL.                   discussed in Section I.C. of the                      determines the amount of limited access
                                                 E. Executive Order 13132: Federalism                    preamble to this action, the NPL is a list            privileges held and used by groups in
                                                                                                         of national priorities. The NPL is                    the Western Alaska Community
pmangrum on DSK3GDR082PROD with PROPOSALS




                                                   This rule does not have federalism                    intended primarily to guide the EPA in                Development Quota Program (CDQ
                                                 implications. It will not have substantial              determining which sites warrant further               Program) for the purposes of managing
                                                 direct effects on the states, on the                    investigation to assess the nature and                the excessive share limits under the
                                                 relationship between the national                       extent of public health and                           Crab Rationalization (CR) Program.
                                                 government and the states, or on the                    environmental risks associated with a                 Amendment 48 is necessary to make the
                                                 distribution of power and                               release of hazardous substances,                      Crab FMP consistent with Magnuson-
                                                 responsibilities among the various                      pollutants or contaminants. The NPL is                Stevens Fishery Conservation and
                                                 levels of government.                                   of only limited significance as it does               Management Act (Magnuson-Stevens


                                            VerDate Sep<11>2014   14:22 Aug 02, 2017   Jkt 241001   PO 00000   Frm 00009   Fmt 4702   Sfmt 4702   E:\FR\FM\03AUP1.SGM   03AUP1


                                                 36112                  Federal Register / Vol. 82, No. 148 / Thursday, August 3, 2017 / Proposed Rules

                                                 Act) requirements and NMFS’ current                     immediately publish a notice in the                   679.2 define the term ‘‘CDQ group’’ as
                                                 method of managing excessive share                      Federal Register announcing that the                  an entity identified as eligible for the
                                                 limits for CDQ groups in the CR                         amendment is available for public                     CDQ Program under 16 U.S.C.
                                                 Program. This action is intended to                     review and comment. This notice                       1855(i)(1)(D). The CDQ Program
                                                 promote the goals and objectives of the                 announces that proposed Amendment                     receives annual apportionments of total
                                                 Magnuson-Stevens Act, the Crab FMP,                     48 to the Crab FMP is available for                   allowable catches (TACs) for a variety of
                                                 and other applicable laws.                              public review and comment.                            commercially valuable species in the
                                                 DATES: Submit comments on or before                        NMFS manages the king and Tanner                   BSAI groundfish, crab, and halibut
                                                 October 2, 2017.                                        crab fisheries in the U.S. exclusive                  fisheries, which are in turn allocated
                                                 ADDRESSES: Submit comments on this                      economic zone of the Bering Sea and                   among the six different CDQ groups. In
                                                 document, identified by NOAA–NMFS–                      Aleutian Islands (BSAI) under the Crab                addition to their allocations under the
                                                 2017–0038, by any one of the following                  FMP. The Council prepared, and NMFS                   CDQ Program, CDQ groups participate
                                                 methods.                                                approved, the Crab FMP under the                      in the AFA and CR Program fisheries by
                                                    • Federal e-Rulemaking Portal: Go to                 authority of the Magnuson-Stevens Act,                purchasing QS and PQS or through
                                                 www.regulations.gov/                                    16 U.S.C. 1801 et seq. Regulations                    ownership of vessels or processors that
                                                 #!docketDetail;D=NOAA-NMFS-2017-                        governing U.S. fisheries and                          participate in the fisheries. The CDQ
                                                 0038, click the ‘‘Comment Now!’’ icon,                  implementing the Crab FMP appear at                   groups have purchased both QS and
                                                 complete the required fields, and enter                 50 CFR parts 600 and 680.                             PQS under the CR Program.
                                                 or attach your comments.                                   The CR Program was implemented on                     Section 303A(c)(5)(D) of the
                                                    • Mail: Submit written comments to                   April 1, 2005 (70 FR 10174). The CR                   Magnuson-Stevens Act requires the
                                                 Glenn Merrill, Assistant Regional                       Program established a limited access                  Council and NMFS to establish
                                                 Administrator, Sustainable Fisheries                    privilege program for nine crab fisheries             excessive share limits for limited access
                                                 Division, Alaska Region NMFS, Attn:                     in the BSAI and assigned quota share                  privilege (LAP) programs to prevent
                                                 Ellen Sebastian. Mail comments to P.O.                  (QS) to persons based on their historic               excessive accumulation of privileges by
                                                 Box 21668, Juneau, AK 99802–1668.                       participation in one or more of those                 participants in the LAP programs (16
                                                    Instructions: Comments sent by any                   nine BSAI crab fisheries during a                     U.S.C. 1853a(c)(5)(D)). The intent of
                                                 other method, to any other address or                   specific period. Each year, a person who              these limits is to prevent excessive
                                                 individual, or received after the end of                holds QS may receive an exclusive                     consolidation in the harvesting and
                                                 the comment period may not be                           harvest privilege for a portion of the                processing sectors in order to maintain
                                                 considered by NMFS. All comments                        annual total allowable catch. This                    an appropriate distribution of economic
                                                 received are a part of the public record                annual exclusive harvest privilege is                 and social benefits for fishery
                                                 and will be posted for public viewing on                called individual fishing quota (IFQ).                participants and communities. Because
                                                 www.regulations.gov without change.                        NMFS also issued processor quota                   determination of excessive shares must
                                                                                                         share (PQS) under the CR Program. Each                consider the specific circumstances of
                                                 All personal identifying information
                                                                                                         year PQS yields an exclusive privilege                each fishery, the Council has
                                                 (e.g., name, address), confidential
                                                                                                         to process a portion of the IFQ in each               implemented different excessive share
                                                 business information, or otherwise
                                                                                                         of the nine BSAI crab fisheries. This                 limits in the LAP programs in Alaska’s
                                                 sensitive information submitted
                                                                                                         annual exclusive processing privilege is              fisheries, including the CR Program.
                                                 voluntarily by the sender will be
                                                                                                         called individual processor quota (IPQ).                 The excessive share limit regulations
                                                 publicly accessible. NMFS will accept
                                                                                                         Only a portion of the QS issued yields                prohibit a person from holding and
                                                 anonymous comments (enter ‘‘N/A’’ in
                                                                                                         IFQ that is required to be delivered to               using more than a specific portion of the
                                                 the required fields if you wish to remain
                                                                                                         a processor with IPQ; this IFQ is called              LAPs allocated under the CR Program.
                                                 anonymous).
                                                                                                         Class A IFQ. Each year there is a one-                Under 50 CFR 679.2, ‘‘person’’ includes
                                                    Electronic copies of the Regulatory
                                                                                                         to-one match of the pounds of Class A                 individuals, corporations, partnerships,
                                                 Impact Review (RIR) and the Categorical
                                                                                                         IFQ with the total pounds of IPQ issued               associations, and other non-individual
                                                 Exclusion prepared for Amendment 48
                                                                                                         in each crab fishery.                                 entities. To monitor holdings and use of
                                                 may be obtained from http://                               The CDQ Program was established by
                                                 www.regulations.gov or from the NMFS                                                                          LAPs, NMFS determines what portion
                                                                                                         the Council and NMFS in 1992, and in                  of a program’s harvesting and
                                                 Alaska Region Web site at http://                       1996, authorization for the Program was               processing privileges a person holds and
                                                 alaskafisheries.noaa.gov.                               incorporated into the Magnuson-Stevens
                                                    The Environmental Impact Statement                                                                         uses to ensure that no person holds or
                                                                                                         Act. The purpose of the CDQ Program                   uses more privileges than authorized by
                                                 (EIS), RIR, Final Regulatory Flexibility
                                                                                                         is (1) to provide eligible western Alaska             the excessive share limit established for
                                                 Analysis, and Social Impact Assessment
                                                                                                         villages with the opportunity to                      each LAP.
                                                 prepared for the CR Program are
                                                                                                         participate and invest in fisheries in the               NMFS determines a person’s holding
                                                 available from the NMFS Alaska Region
                                                                                                         BSAI, (2) to support economic                         and use of a LAP by summing (1) the
                                                 Web site at http://
                                                                                                         development in western Alaska, (3) to                 amount directly held and used by that
                                                 alaskafisheries.noaa.gov.
                                                                                                         alleviate poverty and provide economic                person, and (2) the amount held and
                                                 FOR FURTHER INFORMATION CONTACT:                        and social benefits for residents of                  used by that person indirectly through
                                                 Keeley Kent, 907–586–7228.                              western Alaska, and (4) to achieve                    an ownership interest in or control of
                                                 SUPPLEMENTARY INFORMATION: The                          sustainable and diversified local                     another entity that also holds and uses
                                                                                                                                                               the LAP. Businesses that hold and use
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                                                 Magnuson-Stevens Act requires that                      economies in western Alaska (16 U.S.C.
                                                 each regional fishery management                        1855(i)(1)(A)).                                       LAPs in the CR Program are often
                                                 council submit any fishery management                      Section 305(i) of the Magnuson-                    composed of multiple owners that have
                                                 plan amendment it prepares to NMFS                      Stevens Act describes the CDQ Program                 ownership interests in multiple fishing
                                                 for review and approval, disapproval, or                and identifies the villages eligible to               businesses. In cases where a LAP is held
                                                 partial approval by the Secretary of                    participate in the CDQ Program through                by a business entity with more than one
                                                 Commerce. The Magnuson-Stevens Act                      the six entities specified in Section                 owner, NMFS applies the excessive
                                                 also requires that NMFS, upon receiving                 305(i)(1)(D) as the CDQ groups (16                    share limits (also called holding and use
                                                 a fishery management plan amendment,                    U.S.C. 1855(i)). Regulations at 50 CFR                limits or caps) to each entity that has an


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                                                                        Federal Register / Vol. 82, No. 148 / Thursday, August 3, 2017 / Proposed Rules                                                36113

                                                 ownership interest in or control of the                 the different crab fisheries. Under 50                determining whether an entity is
                                                 LAP to monitor whether those entities                   CFR 680.42(a)(2), NMFS applies holding                included in calculating a CDQ group’s
                                                 each exceed the established caps.                       and use limits on QS and IFQ using the                holding and use caps. For example, if a
                                                 Ownership attribution refers to the                     individual and collective rule for all                CDQ group holds 15 percent of a
                                                 method NMFS uses to assess the                          participants, including CDQ groups, as                company that holds or uses PQS or IPQ,
                                                 relationships between different entities                was recommended by the Council for                    Amendment 48 to the Crab FMP would
                                                 that participate in LAP programs.                       monitoring harvesting privileges.                     clarify that the CDQ group would be
                                                    NMFS uses two ownership attribution                     For processing privileges, the CR                  attributed 15 percent of the holding or
                                                 methods to assess these relationships.                  Program limits a person to holding no                 use of that PQS or IPQ. Amendment 48
                                                 The two methods for attribution are the                 more than 30 percent of the PQS                       would not revise the Crab FMP for the
                                                 ‘‘individual and collective’’ rule and the              initially issued in the fishery, and to               QS and IFQ holding and use limits
                                                 ‘‘10-percent rule.’’ Under the individual               using no more than the amount of IPQ                  under the CR Program because NMFS
                                                 and collective rule, a person is                        resulting from 30 percent of the PQS                  uses the individual and collective rule
                                                 attributed holding or use of LAPs                       initially issued in a given fishery, with             to monitor QS and IFQ holding and use
                                                 proportionally to their ownership in or                 a limited exemption for persons                       limits for all program participants,
                                                 control of other entities that hold or use              receiving more than 30 percent of the                 including CDQ groups. NMFS has used
                                                 LAPs. For example, if Company A owns                    initially-issued PQS (50 CFR 680.42(b)).              the individual and collective rule to
                                                 or controls 15 percent of Company B                     The rationale for holding and use limits              determine holding and use of PQS and
                                                 that holds LAPs, Company A would be                     is described in the CR Program EIS and                IPQ by CDQ groups since enactment of
                                                 attributed 15 percent of the holding or                 the final rule implementing the CR                    the Coast Guard Act; however, NMFS
                                                 use of those LAPs. In contrast, under the               Program (70 FR 10174, 10175; March 2,                 has not revised the Crab FMP to reflect
                                                 10-percent rule, a person is attributed                 2005). Under 50 CFR 680.42(b)(3),                     this statutory change or NMFS’ current
                                                 100 percent of an entity’s LAPs if that                 NMFS applies holding and use limits on                process.
                                                 person owns or otherwise controls ten                   PQS and IPQ using the 10-percent rule,                   Amendment 48 would benefit CDQ
                                                 percent or more of that entity. Thus, if                as was recommended by the Council                     groups and the public by revising the
                                                 Company A owns or controls 10 percent                   and as was addressed in the preamble                  Crab FMP for consistency with the
                                                 or more of Company B, then all of                       to the proposed rule for the CR Program               Magnuson-Stevens Act. Amendment 48
                                                 Company B’s holdings of LAPs are                        (69 FR 63200, 63219 & 63226; October                  would also update the Crab FMP to
                                                 attributed to Company A. The                            29, 2004).                                            specify the method NMFS currently
                                                 individual and collective rule is less                     When the CR Program was                            uses to determine holding and use of
                                                 restrictive than the 10-percent rule                    implemented, NMFS used the 10-                        processing privileges by CDQ groups for
                                                 because a person is only attributed                     percent rule to monitor PQS and IPQ                   purposes of monitoring excessive share
                                                 holding or use in proportion to how                     holding and use limits in the CR                      limits for the CR Program.
                                                 much that person owns or controls of                    Program for all program participants,                    Public comments are solicited on
                                                 other entities, rather than attributing                 including CDQ groups. In 2006, the                    proposed Amendment 48 to the Crab
                                                 100 percent of the other entity’s LAP                   Coast Guard and Maritime                              FMP through the end of the comment
                                                 holdings once the 10-percent threshold                  Transportation Act of 2006 (Public Law                period (see DATES). NMFS intends to
                                                 is met.                                                 109–241; the Coast Guard Act) revised                 publish in the Federal Register and seek
                                                    When the Council recommended the                     the Magnuson-Stevens Act to specify                   public comment on a proposed rule that
                                                 CR Program, it expressed concern about                  that CDQ groups would be subject to                   would implement Amendment 48,
                                                 the potential for excessive consolidation               excessive share ownership, harvesting,                following NMFS’ evaluation of the
                                                 of QS and PQS, in which too few                         or processing limitations only to the                 proposed rule under the Magnuson-
                                                 persons control all of the QS or PQS and                extent of their proportional ownership                Stevens Act. Public comments on the
                                                 the resulting annual IFQ and IPQ. The                   (16 U.S.C. 1855(i)(1)(F)(i)). Since the               proposed rule must be received by the
                                                 Council determined that excessive                       2006 amendment to the Magnuson-                       end of the comment period on
                                                 consolidation could have adverse effects                Stevens Act, NMFS has used the                        Amendment 48 to be considered in the
                                                 on crab markets, price setting                          individual and collective rule for CDQ                approval/disapproval decision on
                                                 negotiations between harvesters and                     groups to monitor excessive share limits              Amendment 48. All comments received
                                                 processors, employment opportunities                    for CDQ groups in the CR Program. The                 by the end of the comment period on
                                                 for harvesting and processing crew, tax                 individual and collective rule allows                 Amendment 48, whether specifically
                                                 revenue to communities in which crab                    CDQ groups to hold and use more PQS                   directed to the amendment or the
                                                 are landed, and other factors considered                and IPQ than non-CDQ persons because                  proposed rule will be considered in the
                                                 and described in the CR Program EIS.                    non-CDQ persons will remain subject to                amendment approval/disapproval
                                                 To address this concern, the CR Program                 the more restrictive ownership                        decision. Comments received after that
                                                 includes limits on the amount of QS and                 attribution method (the 10-percent rule).             date will not be considered in the
                                                 PQS that a person can hold and the                         Amendment 48 would revise the Crab                 approval/disapproval decision on the
                                                 amount of IFQ and IPQ that a person                     FMP to make it consistent with NMFS’                  amendment. To be
                                                 can use. To facilitate the monitoring of                ownership attribution process for                     considered,comments must be received,
                                                 these limits, NMFS requires holders of                  calculating holding and use of PQS and                not just postmarked or otherwise
                                                 QS and PQS that are non-individual                      IPQ to monitor excessive share limits for             transmitted, by the last day of the
                                                                                                         CDQ groups in the CR Program.
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                                                 entities to annually submit information                                                                       comment period.
                                                 on their ownership structure, down to                   Amendment 48 would revise Section
                                                                                                                                                                 Authority: 16 U.S.C. 1801 et seq.
                                                 the individual level, and on each                       2.7.1 under Chapter 11 of the FMP in
                                                 owner’s percentage holdings in the                      the Processing Sector Elements section                  Dated: July 31, 2017.
                                                 entity. Holding and use limits for QS                   of the Crab FMP to specify that PQS and               Emily H. Menashes,
                                                 and IFQ vary across CR Program                          IPQ holding and use caps for CDQ                      Acting Director, Office of Sustainable
                                                 fisheries because of different fleet                    groups are applied using the individual               Fisheries, National Marine Fisheries Service.
                                                 characteristics and the differences in                  and collective rule, without continuing               [FR Doc. 2017–16376 Filed 8–2–17; 8:45 am]
                                                 historic dependency of participants on                  to use the 10-percent rule for                        BILLING CODE 3510–22–P




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Document Created: 2017-08-03 07:24:38
Document Modified: 2017-08-03 07:24:38
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionProposed Rules
ActionNotice of availability of fishery management plan amendment; request for comments.
DatesSubmit comments on or before October 2, 2017.
ContactKeeley Kent, 907-586-7228.
FR Citation82 FR 36111 
RIN Number0648-BG84

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