82_FR_46206 82 FR 46016 - Fisheries of the Exclusive Economic Zone Off Alaska; Authorize Recreational Quota Entity To Participate in the Halibut IFQ Program

82 FR 46016 - Fisheries of the Exclusive Economic Zone Off Alaska; Authorize Recreational Quota Entity To Participate in the Halibut IFQ Program

DEPARTMENT OF COMMERCE
National Oceanic and Atmospheric Administration

Federal Register Volume 82, Issue 190 (October 3, 2017)

Page Range46016-46033
FR Document2017-20894

NMFS issues a proposed rule that would authorize formation of a recreational quota entity (RQE) that could participate in the Pacific Halibut and Sablefish Individual Fishing Quota Program in International Pacific Halibut Commission Regulatory Areas 2C and 3A in the Gulf of Alaska. The RQE would be authorized to purchase and hold a limited amount of commercial halibut quota share that would yield additional pounds of recreational fishing quota on an annual basis to augment the amount of halibut available for harvest in the charter halibut fishery. The RQE would provide a mechanism for a compensated reallocation of a portion of commercial halibut quota share to the charter halibut fishery. This proposed rule is necessary to promote social and economic flexibility in the charter halibut fishery, and is intended to promote the goals and objectives of the Northern Pacific Halibut Act of 1982, and other applicable laws.

Federal Register, Volume 82 Issue 190 (Tuesday, October 3, 2017)
[Federal Register Volume 82, Number 190 (Tuesday, October 3, 2017)]
[Proposed Rules]
[Pages 46016-46033]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-20894]



[[Page 46016]]

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DEPARTMENT OF COMMERCE

National Oceanic and Atmospheric Administration

50 CFR Parts 300 and 679

[Docket No. 161222999-7884-01]
RIN 0648-BG57


Fisheries of the Exclusive Economic Zone Off Alaska; Authorize 
Recreational Quota Entity To Participate in the Halibut IFQ Program

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

ACTION: Proposed rule; request for comments.

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SUMMARY: NMFS issues a proposed rule that would authorize formation of 
a recreational quota entity (RQE) that could participate in the Pacific 
Halibut and Sablefish Individual Fishing Quota Program in International 
Pacific Halibut Commission Regulatory Areas 2C and 3A in the Gulf of 
Alaska. The RQE would be authorized to purchase and hold a limited 
amount of commercial halibut quota share that would yield additional 
pounds of recreational fishing quota on an annual basis to augment the 
amount of halibut available for harvest in the charter halibut fishery. 
The RQE would provide a mechanism for a compensated reallocation of a 
portion of commercial halibut quota share to the charter halibut 
fishery. This proposed rule is necessary to promote social and economic 
flexibility in the charter halibut fishery, and is intended to promote 
the goals and objectives of the Northern Pacific Halibut Act of 1982, 
and other applicable laws.

DATES: Submit comments on or before November 17, 2017.

ADDRESSES: You may submit comments on this document, identified by 
NOAA-NMFS-2016-0158, by any of the following methods:
     Electronic Submission: Submit all electronic public 
comments via the Federal e-Rulemaking Portal. Go to 
www.regulations.gov/#!docketDetail;D=NOAA-NMFS-2016-0158, 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 generally 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 Environmental Assessment, Regulatory 
Impact Review (RIR), and the Initial Regulatory Flexibility Analysis 
(IRFA) (collectively, Analysis) prepared for this action are available 
from www.regulations.gov or from the NMFS Alaska Region Web site at 
alaskafisheries.noaa.gov.
    Written comments regarding the burden-hour estimates or other 
aspects of the collection-of-information requirements contained in this 
rule may be submitted by mail to NMFS at the above address; by email to 
[email protected]; or by fax to 202-395-5806.

FOR FURTHER INFORMATION CONTACT: Kurt Iverson, 907-586-7228, 
[email protected].

SUPPLEMENTARY INFORMATION: 

Authority for Action

    The International Pacific Halibut Commission (IPHC) and NMFS manage 
fishing for Pacific halibut (Hippoglossus stenolepis) through 
regulations established under authority of the Northern Pacific Halibut 
Act of 1982 (Halibut Act). The IPHC adopts regulations governing the 
Pacific halibut (halibut) fishery under the Convention between the 
United States and Canada for the Preservation of the Halibut Fishery of 
the North Pacific Ocean and Bering Sea (Convention), signed at Ottawa, 
Ontario, on March 2, 1953, as amended by a Protocol Amending the 
Convention (signed at Washington, DC, on March 29, 1979). For the 
United States, regulations developed by the IPHC are subject to 
acceptance by the Secretary of State with concurrence from the 
Secretary of Commerce. After acceptance by the Secretary of State and 
the Secretary of Commerce, NMFS publishes the IPHC regulations in the 
Federal Register as annual management measures pursuant to 50 CFR 
300.62. The final rule implementing IPHC regulations for the 2017 
fishing season was published March 7, 2017 (82 FR 12730). IPHC 
regulations affecting sport fishing for halibut and vessels in the 
charter fishery in IPHC Regulatory Areas 2C (Southeast Alaska) and 
Areas 3A (South Central Alaska) may be found in sections 3, 25, and 28 
of that final rule (82 FR 12730, March 7, 2017).
    The Halibut Act, at sections 773c(a) and (b), provides the 
Secretary of Commerce with general responsibility to carry out the 
Convention and the Halibut Act. In adopting regulations that may be 
necessary to carry out the purposes and objectives of the Convention 
and the Halibut Act, the Secretary of Commerce is directed to consult 
with the Secretary of the department in which the U.S. Coast Guard is 
operating, which is currently the Department of Homeland Security.
    The Halibut Act, at section 773c(c), also provides the North 
Pacific Fishery Management Council (Council) with authority to develop 
regulations, including limited access regulations, that are in addition 
to, and not in conflict with, approved IPHC regulations. Regulations 
developed by the Council may be implemented by NMFS only after approval 
by the Secretary of Commerce. The Council has exercised this authority 
in the development of halibut fishery management measures, codified at 
50 CFR parts 300.65, 300.66, and 300.67. The Council also developed the 
Individual Fishing Quota (IFQ) Program for the commercial halibut and 
sablefish fisheries, codified at 50 CFR part 679. Management of halibut 
in the IFQ Program is authorized under section 773 of the Halibut Act.

Management of the Halibut Fishery

Description of the Action Area

    This proposed action would change halibut fishery management in 
IPHC Regulatory Areas 2C and 3A. These regulatory areas are referred to 
as ``IFQ Regulatory Areas'' throughout the IFQ Program regulations at 
50 CFR part 679 and as ``Commission Regulatory Areas'' throughout the 
halibut management regulations at 50 CFR parts 300.65, 300.66, and 
300.67. These terms are synonymous with ``IPHC Regulatory Areas'' and 
may be used interchangeably throughout this document. This preamble 
uses the term ``Area 2C'' and ``Area 3A'' to refer to IPHC Regulatory 
Areas 2C and 3A, respectively. Additional information on the action 
area is provided in Section 2.3 of the Analysis.

Background on the Halibut Fishery

    The harvest of halibut in Alaska occurs in three fisheries--the 
commercial, sport, and subsistence

[[Page 46017]]

fisheries. The commercial halibut fishery is managed under the IFQ 
Program. The sport fishery includes unguided and guided anglers. Guided 
anglers are commonly called ``charter'' anglers because they fish from 
chartered vessels. Throughout this preamble, the term ``charter 
fishery'' is used to refer to the fishery prosecuted by guided anglers. 
The subsistence fishery provides an opportunity for rural residents and 
members of an Alaska Native tribe to retain halibut for personal use or 
customary trade. The following sections of the preamble summarize 
charter fishery management and aspects of the commercial IFQ fishery 
that are relevant for the proposed RQE Program.

Charter Halibut Fishery

    Sport fishing activities for halibut in Areas 2C and 3A are subject 
to different regulations, depending on whether those activities are 
guided or unguided. Guided sport fishing (charter fishing) for halibut 
is subject to charter restrictions under Federal regulations that are 
generally more restrictive than the regulations for unguided anglers. 
Charter fishery regulations apply if a charter vessel guide is 
providing assistance, for compensation, to a person who is sport 
fishing, to take or attempt to take fish during any part of a charter 
vessel fishing trip. Unguided anglers typically use their own vessels 
and equipment, or they may rent a vessel and fish with no assistance 
from a guide.
    Over the years, the Council and NMFS have developed specific 
management programs for the charter fishery to achieve allocation and 
conservation objectives. The Council and NMFS have developed these 
management programs with the intent of maintaining stability and 
economic viability in the charter fishery by establishing: (1) Limits 
on the number of charter vessel operators; (2) allocations of halibut 
to the charter fishery that vary with abundance; and (3) a process for 
determining annual charter angler harvest restrictions to limit charter 
fishery harvest to the established allocations.
    The charter fisheries in Areas 2C and 3A are currently managed 
under the Charter Halibut Limited Access Program (CHLAP) and the Catch 
Sharing Plan (CSP). The CHLAP limits the number of operators in the 
charter fishery, while the CSP establishes annual allocations to the 
charter and commercial fisheries and describes a process for 
determining annual management measures to limit charter harvest to the 
allocations in each management area. The CHLAP and the CSP are 
summarized below and described in more detail in Section 4.4 of the 
Analysis.

Historic and Current Management Measures for the Charter Fishery

    The CHLAP and CSP were developed in response to increasing harvests 
in the charter fisheries in Areas 2C and 3A over the past 20 years. 
Until 2003, charter and unguided anglers were managed under the same 
two-halibut daily bag limit in all IPHC Regulatory Areas in Alaska. 
Since 2003, charter management measures have become more restrictive in 
Areas 2C and 3A, where most charter fishing occurs, as NMFS and the 
IPHC have sought to limit charter harvests to specific harvest limits. 
In 2003, NMFS implemented a final rule to establish a guideline harvest 
level (GHL) that identified target harvest limits for the charter 
fishery in Areas 2C and 3A (68 FR 47256, August 8, 2003). After the GHL 
was implemented, NMFS and the IPHC implemented a variety of additional 
management measures in Areas 2C and 3A in an effort to constrain 
charter fishery harvests to the harvest limits established by the GHL. 
Section 4.4.2.2 of the Analysis describes historical catch limits, 
regulations, and harvest in the charter fisheries in Areas 2C and 3A.
    In Area 2C, charter anglers have only been allowed to harvest a bag 
limit of one halibut per person, per day since 2009. Implementation of 
a one-halibut daily bag limit was intended to keep charter fishery 
harvests to approximately the Area 2C GHL. In the years following 
implementation of the one-fish bag limit, additional restrictions were 
required to maintain harvest near the Area 2C GHL, including a 
prohibition on halibut harvest by charter captains and crew, limits on 
the maximum number of lines that could be deployed, maximum size 
limits, and beginning in 2012, a reverse slot limit that allows charter 
vessel anglers to retain halibut that are either below or above a 
specific size range. With the implementation of the CSP in 2014, 
charter fishery management became more restrictive in Area 2C to 
maintain charter fishery harvests within the Area 2C CSP allocations. 
In 2017, the charter fishery in Area 2C has a catch limit of 915,000 
pounds and is managed under a one-fish daily bag limit with a reverse 
slot limit that allows retention of a halibut of 44 inches or less, or 
80 inches or more, and a prohibition on the harvest of halibut by 
skippers or crew. Charter management measures for Area 2C are 
summarized in Table 4-10 of the Analysis.
    In Area 3A, a two-fish daily bag limit with no size limits was 
maintained until the CSP went into effect in 2014. Since 2014, the Area 
3A charter fishery has continued to be managed under a two-fish daily 
bag limit, but management measures have become increasingly restrictive 
each year to maintain charter fishery harvests within the CSP 
allocation. In 2017, the charter fishery in Area 3A has a catch limit 
of 1,890,000 pounds and is managed under a two-fish daily bag limit 
with a 28-inch maximum size limit on one fish; a 4-fish annual limit 
for each charter fishery angler; closures to charter fishing on 
Wednesdays throughout the year; closures to charter fishing during 
three specific Tuesdays in the summer; a limit of only one charter trip 
per day per vessel (and per charter halibut permit); and a prohibition 
on the harvest of halibut by skippers or crew. Charter management 
measures for Area 3A are summarized in Table 4-11 of the Analysis.

Charter Halibut Limited Access Program (CHLAP)

    NMFS implemented the CHLAP in January 2010 (75 FR 554, January 5, 
2010). The CHLAP established Federal charter halibut permits (CHPs) 
that are required for operators in the charter halibut fishery in Areas 
2C and 3A. NMFS determined the eligibility of applicants and issued 
CHPs in 2010. CHPs were required for participation in the charter 
halibut fishery beginning in 2011. NMFS implemented the CHLAP, based on 
recommendations by the Council, to meet allocation objectives in the 
charter halibut fishery. Specifically, this program provides stability 
in the fishery by limiting the number of charter vessels that may 
participate in Areas 2C and 3A. The CHLAP also issues a limited number 
of permits to non-profit corporations representing specified rural 
communities and to U.S. military morale programs for service members.
    Since implementation of the CHLAP, all vessel operators in Areas 2C 
and 3A with charter anglers on board must have an original, valid 
permit on board during every charter vessel fishing trip on which 
halibut are caught and retained. CHPs are endorsed for the appropriate 
IPHC Regulatory Area (Area 2C or Area 3A) and the maximum number of 
anglers that may catch and retain halibut on a charter vessel fishing 
trip, ranging from 4 to 38 anglers.
    Complete regulations for the CHLAP are published at Sec. Sec.  
300.65, 300.66, and 300.67. Additional details on the development and 
rationale for the CHLAP can be found in the proposed

[[Page 46018]]

rule for the CHLAP (74 FR 18178, April 21, 2009).

Catch Sharing Plan for IPHC Regulatory Areas 2C and 3A

    The CSP was implemented by NMFS in January 2014 (78 FR 75844, 
December 12, 2013). The CSP replaced the GHL that was in place from 
2004 through 2013 for managing the charter fisheries in Areas 2C and 
3A. The CSP establishes commercial IFQ and charter fishery allocations 
that vary proportionally with changing levels of annual halibut 
abundance and that are intended to balance the differing needs of the 
commercial IFQ and charter fisheries over a wide range of halibut 
abundance in Areas 2C and 3A. Under the CSP, the IPHC divides a 
combined catch limit for Areas 2C and 3A into separate annual catch 
limits for the commercial IFQ and charter halibut fisheries pursuant to 
the CSP's allocation formulas.
    The CCLs for Areas 2C and 3A are specified by the IPHC during an 
iterative process that takes place each year. In late November of each 
year, the IPHC begins the process of assessing the halibut resource, 
and provides a preliminary estimate of exploitable biomass of halibut. 
The exploitable biomass is the amount of halibut that could be 
available for harvest by commercial, sport, and subsistence fisheries. 
The IPHC determines the exploitable biomass using a combination of 
harvest data from the commercial, sport, and subsistence fisheries, and 
information collected during scientific surveys and sampling of halibut 
bycatch in other fisheries. The IPHC calculates the Total Constant 
Exploitation Yield (CEY), or the target level for total removals (in 
net pounds) for each IPHC regulatory area, by multiplying the estimate 
of exploitable biomass by the harvest rate specified for that IPHC 
regulatory area. For Areas 2C and 3A, the IPHC subtracts estimates of 
other removals from the Total CEY. Other removals include unguided 
sport harvest, subsistence harvest, and bycatch of halibut in non-
target commercial fisheries. In Areas 2C and 3A, the remaining CEY, 
after other removals are subtracted, is the Fishery CEY. For Areas 2C 
and 3A, the Fishery CEY is equal to the annual combined catch limit for 
the commercial IFQ fishery and the charter fishery. This process is 
depicted in Figure 4-1 of the Analysis.
    A fixed percentage of the annual CCLs for Area 2C and 3A is 
allocated to the commercial IFQ and charter fisheries (for additional 
detail see Figures 4-3 and 4-4 in the Analysis). The fixed percentage 
allocation to each fishery varies with halibut abundance and differs 
between Areas 2C and 3A. Overall, the charter fishery's relative share 
of the CCL is higher when the CCL is lower, but lower when the CCL is 
higher. At current levels of abundance, the charter fishery is 
allocated approximately 18 percent of the CCLs for both Areas 2C and 
3A, and the commercial IFQ fishery is allocated approximately 82 
percent. The IPHC multiplies the CSP allocation percentages for Area 2C 
and 3A by the annual CCL in that area to calculate the commercial and 
charter halibut allocations in net pounds. Fishery-specific catch 
limits are calculated by deducting separate estimates of wastage (i.e., 
the mortality of discarded fish) from the commercial IFQ and charter 
fishery allocations (see Figure 4-1 of the Analysis). NMFS publishes 
the CCLs and associated allocations in the Federal Register as part of 
the IPHC annual management measures pursuant to 50 CFR 300.62. The 
process for determining commercial IFQ and charter catch limits under 
the CSP is described in more detail in Section 4.4.1.2.1 of the 
Analysis.
    Additional detail on the development and rationale for the CSP can 
be found in preamble for the CSP proposed rule (78 FR 39122, June 28, 
2013), and in the final rule implementing the CSP (78 FR 75844, 
December 12, 2013).

Process for Setting Annual Management Measures

    The CSP also describes a public process by which the Council 
develops recommendations to the IPHC for charter angler harvest 
restrictions (annual management measures) that are intended to limit 
harvest to the annual charter fishery catch limit in Areas 2C and 3A. 
The process for setting annual management measures is described in more 
detail in Section 4.4.1.2.2 of the Analysis. Key elements of the 
process are summarized below.
    Each year in October, the Council's Charter Halibut Management 
Committee (Charter Committee) reviews charter harvest in Areas 2C and 
3A during the current year in relation to the charter catch limit. 
Staff from the Alaska Department of Fish and Game, Council, and NMFS 
provide an analysis to predict harvest for the upcoming year under a 
range of alternative management measures. Some of these measures may 
directly restrict the number or size of fish that may be retained 
(e.g., daily bag limits, trip limits, annual limits, and size limits). 
Some of these measures may indirectly restrict the number of halibut 
that may be retained (e.g., day of week closures, or prohibition on 
harvest by skipper and crew). After reviewing this analysis, the 
Charter Committee makes recommendations on possible management measures 
for Areas 2C and 3A to be analyzed for the coming year.
    In December of each year, the Council considers the recommendations 
of the Charter Committee, the analysis on projected charter harvests 
under a range of management measures, and any additional information. 
After considering public input, the Council selects management measures 
to recommend to the IPHC that are intended to keep charter harvest 
within the charter fishery allocation in Area 2C and Area 3A under a 
range of different CCLs that may be established by the IPHC.
    At its annual meeting in January of each year, the IPHC allocates 
the CCL for Area 2C and Area 3A between the commercial IFQ fishery and 
the charter fishery for that year based on the CSP regulations at 50 
CFR 300.65. The IPHC takes into account Council recommendations, any 
additional information available to the IPHC, and input from the public 
and IPHC staff. After considering this information and other 
information on the abundance of the halibut resource in Areas 2C and 
3A, the IPHC adopts CCLs for Areas 2C and 3A and charter halibut 
management measures designed to keep charter harvest in Area 2C and 
Area 3A within the catch limits specified under the CSP for the adopted 
CCLs. Once accepted by the Secretary of State with the concurrence of 
the Secretary of Commerce, NMFS publishes in the Federal Register the 
charter halibut management measures for each area as part of the IPHC 
annual management measures.

Guided Angler Fish Program

    In 2014, as part of the CSP, NMFS implemented the Guided Angler 
Fish (GAF) Program to authorize limited annual transfers of commercial 
halibut IFQ as GAF to qualified CHP holders. The GAF Program provides 
additional harvest opportunities for charter anglers. Using GAF, 
qualified CHP holders may offer charter anglers the opportunity to 
retain halibut up to the limit for unguided anglers when charter 
management measures limit charter anglers to a more restrictive harvest 
limit. For example, if charter management regulations in Area 2C 
restrict charter anglers to a one-halibut daily bag limit, a charter 
angler could retain one halibut and use one GAF to retain a second 
halibut, bringing the retained amount to two halibut--the

[[Page 46019]]

same daily bag limit that applies to unguided anglers. The GAF Program 
is described in more detail in Section 4.4.1.2.4 of the Analysis and in 
the proposed rule for the CSP (78 FR 39122, June 28, 2013). Regulations 
implementing the GAF Program are at Sec. Sec.  300.65, 679.5, 679.41, 
679.42, and 679.45. A brief summary of the key elements of the GAF 
Program is provided below.
    In order to receive GAF, an IFQ holder and a CHP holder receiving 
GAF must submit an application to NMFS for review and approval. Guided 
Angler Fish transfers may be between separate IFQ and CHP holders, or a 
person holding both IFQ and a CHP can transfer their IFQ to himself or 
herself as GAF. Upon approval of the transfer application, NMFS issues 
a GAF permit to the holder of the CHP. Once the transfer is approved, 
the GAF permit holder may offer additional GAF harvest opportunities to 
anglers on board the vessel on which the operator's GAF permit and the 
assigned CHP are used.
    NMFS issues GAF in whole numbers of halibut based on a conversion 
factor from IFQ pounds. Conversion factors are based on the average net 
weights of GAF harvested in the applicable IPHC Regulatory Area (Area 
2C or 3A) during the previous year. Average weights are determined from 
data that charter vessel guides report directly to NMFS. For 2017, 74 
pounds of IFQ yields one GAF in Area 2C, and 42 pounds of IFQ yields 
one GAF in Area 3A. Based on self-reported data, CHP holders have paid 
more than $5 per pound of IFQ transferred as GAF in Area 2C and 3A, 
making GAF quite expensive, especially in Area 2C (see Section 4.4.2.3 
in the Analysis for additional detail). In part due to the high costs 
of leasing GAF, annual participation has been low, averaging about 
48,000 pounds per year from 2014 through 2016.
    Three restrictions on GAF transfers were implemented with the GAF 
Program. First, IFQ holders in Area 2C are limited to transferring up 
to 1,500 pounds or 10 percent, whichever is greater, of their 
initially-issued annual halibut IFQ for use as GAF. In Area 3A, IFQ 
holders may transfer up to 1,500 pounds or 15 percent, whichever is 
greater, of their initially-issued annual halibut IFQ for use as GAF. 
Second, no more than 400 GAF will be assigned during one year to a GAF 
permit assigned to a holder of a CHP that is endorsed for six or fewer 
anglers. Third, no more than a total of 600 GAF will be assigned during 
one year to a GAF permit assigned to a holder of a CHP endorsed for 
more than six anglers. The restrictions on transfers of GAF are 
intended to prevent a particular individual, corporation, or other 
entity from acquiring an excessive share of halibut fishing privileges 
as GAF.
    NMFS' costs associated with management, data collection, and 
enforcement of the GAF Program are recoverable through IFQ Program Cost 
Recovery fees. The IFQ permit holder is responsible for paying IFQ 
Program Cost Recovery fees on all pounds of IFQ landed as GAF. The fee 
calculation is based on the standard price calculated by NMFS, 
aggregated to IPHC Regulatory Area 2C or 3A.

Commercial Individual Fishing Quota (IFQ) Fishery

    The commercial halibut and sablefish fisheries off Alaska are 
managed under the IFQ Program (November 9, 1993; 58 FR 59375). The IFQ 
Program was implemented in 1995. The commercial halibut fishery is also 
referred to as the ``directed halibut fishery.'' The IFQ Program limits 
access to the commercial directed halibut fishery to those persons 
holding halibut quota share (QS) in specific management areas. A more 
detailed description of QS allocation and management is provided in 
Section 4.5.1 of the Analysis and summarized here.
    The IFQ Program assigned QS by IPHC Regulatory Area based on 
certain thresholds of historical participation in the commercial 
halibut fishery. NMFS initially issued QS to qualified participants 
beginning in 1994. Once QS was issued, NMFS allows QS to be transferred 
from initial recipients to individuals meeting specific eligibility 
requirements. The GAF Program does not authorize the transfer of QS 
from the commercial IFQ fishery for use in the charter fishery. QS 
provides individual harvesting privileges that are allocated on an 
annual basis through the issuance of IFQ permits.
    An annual IFQ permit authorizes the holder to harvest a specified 
amount of halibut in a designated IPHC Regulatory Area. The specific 
amount of IFQ (in net pounds) is determined by the number of QS units 
held, the total number of QS units issued in a specific IPHC Regulatory 
Area, and the total amount of the halibut catch limit allocated by the 
IPHC in a particular year. If the abundance of halibut decreases over 
time, the catch limit will decrease and, subsequently, the number of 
pounds on a person's annual IFQ permit also will decrease. By providing 
an exclusive privilege to harvest a certain amount of the catch limit 
at the beginning of the season, and by extending the season over a 
longer period, the IFQ Program allows QS holders to determine where and 
when to fish, how much gear to deploy, and how much overall investment 
to make in harvesting.
    The Council and NMFS developed the IFQ Program with several goals 
in mind. Particularly applicable to this proposed action, the IFQ 
Program was designed to preserve an owner-operated fleet and to limit 
consolidation of QS ownership. To accomplish these goals, the IFQ 
Program was designed to control transferability of QS through: (1) 
Limits on the amount of QS that can be owned or controlled by 
individuals and companies (QS transfer and use caps); (2) vessel size 
categories that limit the size of vessels that can use the annual 
allocations resulting from the QS; (3) restrictions on who can purchase 
catcher vessel QS; and (4) limitations on leasing certain categories of 
QS.
    Halibut QS is designated as one of four QS categories (also called 
``vessel categories'' or ``size categories'' of QS). The term ``vessel 
class'' is also sometimes used, but the term ``category'' will be used 
in this preamble to be consistent with the term used in regulation. 
These categories include A-category for freezer catcher-processor 
vessels; B-category for vessels greater than 60 ft length overall 
(LOA); C-category for vessels 36 ft to 60 ft LOA; and D-category for 
vessels 35 ft or less LOA. The term ``catcher vessel QS'' refers to QS 
that can be used to catch, but cannot be used to process, halibut at 
sea (i.e., B-, C-, and D-category QS). Halibut QS also has a 
designation of ``blocked'' or ``unblocked.'' Blocked QS must be sold as 
a unit, and cannot be separated. No person may hold more than three 
blocks of halibut QS in any IFQ regulatory area. The purpose of the QS 
block provision was to ensure that the smallest, most affordable QS 
would remain available to a part-time fleet of smaller operators in 
order to maintain some of the fleet diversity that existed prior to the 
IFQ Program's implementation, and to reduce potential disruption to 
isolated Alaska fishing communities. The preamble to the proposed rule 
for the IFQ Program, published on December 3, 1992 (57 FR 57130), 
describes the IFQ Program in more detail.

Community Quota Entity Program

    After implementation of the IFQ Program, the total amount of QS 
held by residents of small, coastal communities and the number of IFQ 
holders substantially declined. To alleviate the social and economic 
impacts of this consolidation on rural communities, the Council revised 
the IFQ Program in 2004 to allow a distinct set of remote coastal 
communities with few economic

[[Page 46020]]

alternatives to purchase and hold catcher vessel QS in Areas 2C, 3A, 
and 3B (69 FR 23681, April 30, 2004). This action was implemented in 
order to help ensure access to and sustain participation in the 
commercial halibut and sablefish fisheries. Eligible communities can 
form non-profit corporations called Community Quota Entities (CQEs) to 
purchase catcher vessel QS. The IFQ resulting from the QS must be 
leased (i.e., made available for fishing) to community residents 
annually.
    NMFS determined that CQE eligibility applied to 46 Alaskan 
communities, based on certain criteria for size, accessibility, and 
historical participation in the halibut or sablefish fisheries. 
Eligible communities must establish a non-profit corporation to become 
a CQE. The non-profit corporation must submit an application to NMFS 
detailing its organization, structure, and proposed procedures for 
leasing IFQ to community residents (among other requirements). If NMFS 
approves the application, a CQE may form to represent that community 
and the CQE may obtain QS by transfer. Currently, 28 communities have 
formed non-profit corporations and have applied for and been approved 
to obtain QS by transfer. Of those 28 CQEs, 4 have purchased QS. 
Community Quota Entities may also apply to NMFS to be able to 
participate in the CHLAP by purchasing CHPs, and are authorized to 
receive Community Charter Halibut Permits which is similar to a CHP, 
but available only to CQEs. To date, 20 CQEs have applied for and been 
issued Community Charter Halibut Permits. Although CQE's may also 
receive CHPs by purchasing (i.e., transferring) them from non-CQE 
permit holders, no CQE has received any CHPs by transfer to date.
    Although CQEs are subject to different constraints than individual 
QS holders in the IFQ Program, in some cases, the CQE is subject to the 
same limitations as individual permit holders in the IFQ Program. For 
example, each CQE is held to the same QS use caps (i.e., ownership 
caps) as an individual holder. In other cases, the CQE is subject to 
less restrictive measures to provide for the differing purpose and use 
of the QS when held by communities. For example, the vessel size 
categories do not apply to QS when held by CQEs. In yet other cases, 
the CQE is subject to more restrictive measures than individuals, in 
part to protect existing holders and preserve entry-level opportunities 
for fishermen residing in fishery-dependent communities that are not 
are not eligible to form a CQE. For example, CQEs cannot purchase D-
category halibut QS in Area 2C. In addition, there are caps on the 
amount of QS that all CQEs combined can purchase, and CQEs cannot lease 
more than 50,000 pounds of halibut IFQ to an individual resident. A 
detailed list of provisions specifically applicable to CQEs is provided 
in Section 4.5.2 of the Analysis.

Purpose and Need for Proposed Rule

    Currently, the charter fishery is limited to harvesting its 
percentage of the Area 2C or 3A combined catch limit it is allocated 
under the CSP. Charter catch limits increase or decrease as total 
halibut abundance increases or decreases. When halibut abundance is 
relatively low, as it has been in recent years compared to abundance 
trends in the 1990s and 2000s, the charter allocations under the CSP 
are lower, resulting in more restrictive annual management measures.
    The only way that charter operators can currently provide more 
opportunity to charter clients than the established management measures 
allow for in their area is through participation in the GAF Program by 
individual charter operators. Because of the current restrictions on 
charter harvests under the existing charter allocations under the CSP 
and the limited flexibility for charter operators to provide additional 
harvest opportunities to their clients, the charter fishery has 
expressed its desire to find a market-based mechanism to increase its 
overall allocation of the halibut resource.
    Based on these concerns, in 2015, the Council initiated the 
analytic process to develop a ``market-based mechanism'' to allow a 
non-profit entity (similar to a CQE) to purchase and hold a limited 
amount of commercial halibut QS on behalf of charter anglers. The 
intent of the Council was to provide additional harvest opportunity and 
less restrictive annual harvest measures for charter anglers in times 
of low halibut abundance, while complying with total halibut removals 
under the catch limits established by the IPHC under the CSP. In 
initiating this effort, the Council sought to balance the objectives of 
participants in the charter fishery without undermining the goals of 
the IFQ Program or creating significant adverse impacts to other 
halibut sectors. A complete history of the development of this proposed 
action is described in Section 2.2 of the Analysis.

Proposed Recreational Quota Entity for Area 2C and Area 3A

Overview

    In December 2016, the Council recommended the implementation of an 
RQE Program. This proposed RQE Program would provide a mechanism for 
the charter fishery to compensate the commercial IFQ fishery for 
halibut QS purchased from the commercial sector to increase the charter 
annual catch limits. The halibut RFQ that would result from that QS 
would provide potentially greater harvest opportunities to the clients 
of charter operators within Areas 2C and 3A.
    The Council and NMFS considered a no-action alternative to maintain 
the status quo (no RQE Program) and an alternative to authorize an RQE 
Program. The Council and NMFS also considered a broad range of elements 
and options to determine: The number of RQEs that could form; the 
amount and type of QS that could be purchased and held by the RQE; the 
process for setting annual management measures; how the RQE Program 
should interact with the GAF and CQE Programs; how the RQE could use 
funds, the organizational structure of the RQE; and the appropriate 
reporting requirements for the RQE. The specific elements and options 
recommended by the Council and proposed by NMFS are described below. 
The entire suite of elements and options considered, and the predicted 
effects of those elements and options (including the no-action 
alternative) are evaluated in detail in the Analysis.
    The Council stated that the principal objective of this proposed 
rule is to promote social and economic flexibility in the charter 
fishery by authorizing the development of an entity that would be 
eligible to purchase and hold commercial halibut QS in Areas 2C and 3A, 
thereby providing additional harvest opportunities to charter anglers. 
This proposed rule is intended to promote long-term efficiency in the 
use of the halibut resource by allowing transfers of QS between 
commercial QS holders and the charter fishery, through an RQE, under a 
``willing buyer and willing seller'' approach.

Description of Proposed Rule

    This proposed rule would allow an RQE to be established as an 
eligible entity to purchase halibut QS in Area 2C and Area 3A, with 
limitations, for use by the charter fishery as a whole. Using a 
structure similar to a CQE, the RQE would be an eligible participant in 
the IFQ Program and could purchase Area 2C and 3A halibut QS for use by 
all charter halibut anglers in the respective

[[Page 46021]]

area. Any halibut QS purchased by the RQE would be held by this entity 
for the common use of charter halibut anglers. If approved, Federal 
regulations would be amended to allow the RQE to acquire QS.
    Halibut QS held by the RQE would generate annual pounds of 
recreational fishing quota (RFQ), a type of annual harvest privilege 
similar to IFQ that would have special requirements that pertain only 
to the RQE. RFQ would be calculated in the same manner as IFQ. Under 
this proposed rule, the specific amount of RFQ (in net pounds) would be 
determined by the number of QS units held by the RQE as of October 1 of 
the preceding calendar year, the total number of halibut QS units 
issued in Area 2C or 3A as of January 15 of the year the IFQ or RFQ is 
issued, and the total amount of halibut allocated to the commercial IFQ 
fisheries in Areas 2C and 3A for that year.
    Although the amount of RFQ would be calculated in the same way as 
IFQ, it would be subject to different requirements. The additional 
pounds of RFQ for each regulatory area would be combined with the 
charter catch limit determined under the CSP to calculate an adjusted 
charter catch limit for the year for Area 2C or 3A. Annual charter 
management measures for Areas 2C and 3A would be analyzed, recommended 
to the IPHC, and adopted for implementation based on the estimated 
adjusted charter catch limits. Recreational Fishing Quota held by the 
RQE would be available for harvest by all charter anglers aboard 
registered charter vessels of any size, regardless of the QS category 
from which that RFQ originated. Under this proposed rule, RFQ could not 
be transferred as GAF. Unless specified in this proposed rule, 
regulations that refer only to IFQ permit holders would not apply to 
the RQE. Likewise, unless specified in this proposed rule, regulations 
that refer only to IFQ would not apply to RFQ.
    This proposed rule would not change the underlying allocations to 
the commercial IFQ fishery and charter fishery specified in the CSP, 
and would not change the total QS pool. Therefore, the QS holders in 
the commercial IFQ fishery who do not transfer QS to the RQE would 
receive the same amount of IFQ pounds issued for their QS units 
regardless of the amount of QS transferred to, and held by, the RQE.

Provisions of Proposed Rule

RQE Organizational Structure

    The Council recommends and NMFS proposes to allow the establishment 
of an RQE as a qualified non[hyphen]profit entity registered under the 
laws of the State of Alaska and recognized as exempt from Federal 
income tax by the Internal Revenue Service (IRS) to purchase and hold 
halibut QS for use by the charter fishery. The QS held by an RQE could 
yield RFQ annually. This proposed rule would allow a single non-profit 
entity to form to represent and manage separate QS holdings for Areas 
2C and 3A.
    The Council and NMFS considered an option to allow formation of two 
RQEs, one to represent Area 2C and another in Area 3A, but ultimately 
decided that one RQE would provide administrative efficiencies for 
purchasing and managing commercial QS. The Council and NMFS initially 
considered allowing multiple RQEs within Area 2C and 3A, but 
recommended against that structure to avoid potential competition 
against each other to purchase QS, and to reduce potential 
administrative costs.
    The structure of the RQE is proposed to be similar to non-profits 
established to hold QS under the CQE Program. The Council recommended 
and NMFS proposes that the RQE be a non-profit entity to help ensure it 
represents the interests of the charter operators, whereas a for-profit 
entity could result in increased costs. The Council has consistently 
recommended, and NMFS has consistently approved the use of non-profit 
entities for the purposes of holding QS in other limited access 
programs. The proposed RQE organizational structure is consistent with 
past practice. Also, a non-profit entity that is independent of the 
Federal or state governments could more quickly and more flexibly take 
advantage of favorable market conditions for purchasing QS than a 
program administered by the Federal or state governments. More 
information on the structure of the proposed RQE is provided in section 
4.8.1.1 of the Analysis.
    NMFS proposes new definitions in Sec.  679.2 for ``Recreational 
fishing quota (RFQ)'' and ``Recreational quota entity (RQE).''

Eligibility

    The Council recommended establishment of a single RQE that is a 
qualified non-profit entity registered with the IRS to purchase and 
hold commercial halibut QS for use by the guided halibut sector.'' To 
implement this recommendation, NMFS proposes requirements specifying 
that the RQE must be a qualified non-profit entity registered under the 
laws of the State of Alaska and recognized as exempt from Federal 
income tax by the IRS. Non-profit status is a state law concept and 
does not directly apply to Federal tax law. A non-profit organization 
may be eligible for certain benefits, such as state sales, property and 
income tax exemptions. Although most Federal tax-exempt organizations 
are non-profit organizations, being recognized as a non-profit 
organization at the state level does not automatically grant the 
organization exemption from Federal income tax. To qualify as exempt 
from Federal income tax, an organization must seek recognition of 
exemption from Federal income tax under section 501(a) of the Internal 
Revenue Code.
    This proposed rule would establish specific requirements for an 
entity to be authorized as the RQE. To be approved as the entity 
eligible to purchase and hold halibut QS, the applicant wishing to 
become the RQE would be required to demonstrate it is a non-profit 
entity registered under the laws of the State of Alaska by submitting 
to NMFS the articles of incorporation and management organization 
information, including bylaws and a list of key personnel including, 
but not limited to, the board of directors, officers, representatives, 
and managers.
    Articles of incorporation are public documents that must be filed 
with the state agency where the corporation becomes incorporated (e.g., 
with Alaska's Division of Corporations, Business, and Professional 
Licensing). NMFS proposes that the RQE would need to be incorporated 
within the State of Alaska consistent with incorporation requirements 
applicable to CQEs. Bylaws are private documents describing the 
organization's operating procedures that are not filed with any 
government agency. The Council and NMFS chose to not specify how the 
board of directors of the RQE should be structured. The Council and 
NMFS considered options to require a certain number of board members 
representing different user groups, but ultimately decided that these 
decisions were best left to the RQE (see Section 4.8.1.6 of the 
Analysis). The Council intends that the RQE board should have the 
flexibility to tailor its composition in a way that best addresses the 
RQE's needs. The Council noted that a representative of the Alaska 
Department of Revenue may sit as an ex[hyphen]officio (non-voting) 
member of the RQE board, and the Commissioner of the Alaska Department 
of Fish and Game, or their designee, may sit as a voting member of the 
RQE board; however, the Council did not intend be prescriptive with 
respect to RQE board membership. The Council intended for the RQE to 
determine whether these officials would be a member of the RQE board. 
For example, if funding for the RQE is

[[Page 46022]]

provided or administered by the State of Alaska, then a board member 
from the Alaska Department of Revenue might be beneficial; however, the 
Council intended for this determination to be at the discretion of the 
RQE. Because the Council intended for the RQE to have flexibility to 
select members of the RQE board, NMFS does not propose to specify the 
composition of the RQE board in regulation.
    In addition to demonstrating it is a non-profit corporation 
recognized by the State of Alaska, the applicant wishing to become the 
RQE would be required to demonstrate it has been granted an exemption 
from Federal income tax by the IRS by submitting to NMFS the IRS 
acknowledgement of the entity's Federal tax exemption.
    NMFS proposes to require the approved RQE to maintain its non-
profit and tax-exempt status, as described above. If the approved RQE 
entity does not meet this requirement, NMFS would not issue the RFQ 
that would otherwise be issued to the RQE based on its QS holdings. In 
addition, NMFS would provide the approved RQE entity with an 
opportunity to reinstate its non-profit and/or tax-exempt status. If 
the approved RQE entity does not demonstrate to NMFS that it is a 
qualified non[hyphen]profit entity registered under the laws of the 
State of Alaska and recognized as exempt from federal income tax by the 
IRS by the established deadline, NMFS would issue an Initial 
Administrative Determination (IAD) to revoke the entity's status as the 
approved RQE and to require the entity to divest its QS holdings. The 
entity would have the opportunity to appeal the IAD through the 
National Appeals Office under the provisions established at 15 CFR part 
906. The application and procedures for approving the application to 
become an RQE would be modeled after the application and process for 
CQEs. The applicant would complete the ``Application for a Non-profit 
Corporation to be Designated as a Recreational Quota Entity (RQE)'' and 
submit it to NMFS Alaska Region for review and approval. The 
application form would be available on the NMFS Alaska Region Web site 
at https://alaskafisheries.noaa.gov/ after the effective date of the 
final rule, assuming a final rule is published. NMFS would approve the 
first complete RQE application it receives. NMFS would notify the RQE 
when its application has been approved. Once approved, NMFS would 
establish an account for QS and RFQ holdings when the RQE acquires QS. 
If NMFS disapproves the application, that determination could be 
appealed to the NOAA Fisheries National Appeals Office under the 
provisions established at 15 CFR part 906.
    NMFS proposes adding a new paragraph Sec.  679.41(n) to describe 
the application process and eligibility requirements for a prospective 
RQE.

Restrictions on Transfers

    Under this proposed RQE Program, two-way transfers of QS would be 
allowed. Quota share acquired by the RQE could be transferred to an 
otherwise eligible participant in the commercial IFQ fishery. Because 
QS and the resulting IFQ used in the commercial IFQ fishery is subject 
to vessel categories and block designations on initially-issued QS--
unlike the QS and resulting RFQ used by the RQE, which is exempt from 
such categories and designations--NMFS will track QS units, IFQ pounds, 
and vessel category and block designations that apply to ensure that 
original categories and designations for the commercial IFQ fishery are 
maintained during the transfer process.
    The Council recommended and NMFS proposes two-way transfers because 
it is expected that there would be variability from year to year in the 
amount of QS the RQE would be interested in using as RFQ. For example, 
if halibut biomass increases, the RQE may hold QS that is not needed to 
yield RFQ to provide additional opportunities for participants in the 
charter fishery, and may decide to sell a portion of its QS to an 
eligible buyers in the commercial fishery sector.
    NMFS proposes modifying Sec.  679.42 to describe the QS transfer 
process for RQEs.

Annual Limit on Transfers to an RQE

    This proposed rule would establish area-specific annual limits on 
the amount of halibut QS that can transfer to an RQE. The intended 
effect of these transfer limits is to limit the amount of halibut QS 
that could be transferred from the commercial IFQ fishery and used as 
RFQ in the charter fishery each year, and to minimize any abrupt 
negative impacts that may occur to participants in the commercial IFQ 
fishery or to CQEs due to additional competition in the QS market that 
could occur with the entry of an RQE. Annual transfer limits would 
allow users in the commercial IFQ and charter fisheries time to adapt 
business plans and personal strategies to changes in the composition of 
the fisheries.
    The Council recommended and NMFS proposes an annual transfer limit 
equivalent to 1 percent of the commercial QS units in Area 2C based on 
the 2015 pool of all QS categories (59,477,396 units). Based on the 
2015 QS pool, the RQE would be limited to receiving by transfer a 
maximum of 594,774 units of Area 2C QS in a year. Even if the QS pool 
changes in future years, this proposed rule would fix the annual 
transfer limit in Area 2C at 594,774 QS units. This will clearly define 
the limit for fishery participants and prevent a change in the limit if 
there are future changes in the Area 2C or 3A QS pools. For example, in 
2017, the QS:IFQ ratio is 14.1209 QS units per pound of IFQ, and the 
annual transfer limit would be 42,120 pounds of IFQ for Area 2C.
    The Council recommended and NMFS proposes an annual transfer limit 
equivalent to 1.2 percent of the commercial QS pool in Area 3A based on 
the 2015 pool of all QS categories (184,893,008 units). For example, 
based on the 2015 QS pool, the RQE would be limited to receiving by 
transfer a maximum of 2,218,716 units of Area 3A QS in a year. Even if 
the QS pool changes in future years, this proposed rule would fix the 
annual transfer limit in Area 3A at 2,218,716 QS units. For example, in 
2017, the QS:IFQ ratio is 23.8911QS units per pound of IFQ, and the 
annual transfer limit would be 92,868 pounds of IFQ for Area 3A.
    For both Area 2C and 3A, the Council and NMFS considered annual 
transfer limits between 0.5 and 5 percent and determined that 1 percent 
for Area 2C and 1.2 percent for Area 3A were the appropriate annual 
transfer limits because they would allow the RQE to reach the 
cumulative use limits on QS holding (discussed in the next section) in 
10 years if the RQE purchased the maximum amount of QS in each area in 
each year after the RQE Program is implemented. The Council indicated 
that limiting annual transfers at these proposed limits and allowing 
the RQE to reach its maximum QS holdings over as few as 10 years would 
balance the desire to provide adequate additional harvest opportunity 
to charter anglers, while at the same time mitigating the potentially 
disruptive impacts on the QS market with the entry of the RQE. 
Therefore, the proposed annual limits are equal to 1/10 of the 
cumulative holdings limits. Annual transfer limits are discussed in 
further detail in Section 4.8.1.2.2 of the Analysis.
    NMFS proposes adding a new paragraph at Sec.  679.42(f)(8) to 
describe the annual transfer limits on QS for RQEs.

Limit on Total QS Holdings by the RQE

    The Council recommended and NMFS proposes a limit on the total

[[Page 46023]]

amount of halibut QS that can be held by the RQE. This rule proposes 
that for Area 2C, the RQE could hold up to 10 percent of the 2015 
commercial QS pool. This proportion would be calculated based on the 
entire QS pool, including categories and blocks of QS units that the 
RQE would be prohibited from purchasing (discussed in the next sections 
of this preamble). Ten percent of the 2015 commercial QS pool equates 
to 5,947,740 units.
    This rule proposes a limit on QS holdings for Area 3A of 12 percent 
of the 2015 entire commercial QS pool, including categories and blocks 
of QS units that the RQE would be prohibited from purchasing. Twelve 
percent of the 2015 commercial QS pool equates to 22,187,161 units.
    As described in the previous section for annual transfer limits for 
the RQE, this proposed rule would fix the limits on total QS holdings 
by the RQE in regulations so that they are clearly defined for fishery 
participants and will not fluctuate if there are future changes in the 
Area 2C or 3A QS pools.
    The Council and NMFS considered limits that ranged from 5 to 20 
percent of the 2015 QS pools in each area. The Council recommended and 
NMFS proposes 10 percent and 12 percent limits in Areas 2C and 3A, 
respectively, to provide a balance between providing ample opportunity 
for additional harvest opportunity for the charter fishery, while 
seeking to alleviate potential adverse impacts to commercial halibut 
participants from increased competition in the QS market and higher QS 
prices that could occur if the RQE were provided a higher limit on QS 
holdings by the RQE. The limits on RQE holdings of QS are discussed in 
further detail in Section 4.8.1.2.3 of the Analysis.
    NMFS proposes adding a new paragraph at Sec.  679.42(f)(8) to 
describe the QS holding limits for the RQE.

Limit on GAF Transfers as RQE Holdings Increase

    As part of the RQE Program, the Council recommends and NMFS 
proposes to limit the total amount of GAF that could be used annually 
by CHP holders by limiting the amount of GAF that could be transferred 
to the charter fishery as RQE QS holdings increase.
    Under existing regulations, a significant amount of GAF could be 
transferred to CHP holders each year. For example, based on 2015 data, 
if all QS holders transferred the maximum allowable amounts of IFQ as 
GAF to eligible CHP holders, 49.1 percent of the Area 2C IFQ and 35.5 
percent of the Area 3A could potentially be transferred as GAF. 
However, actual participation in the GAF Program has been relatively 
low. From 2014 through 2016, less than 1.25 percent of Area 2C IFQ, and 
less than 0.2 percent of Area 3A IFQ have been transferred as GAF in 
any year. Based on the cost to transfer IFQ as GAF noted earlier in 
this preamble, NMFS considers it very unlikely that participation in 
the GAF Program will increase substantially and approach the maximum 
allowable transfer limits. Notwithstanding that unlikelihood, the 
Council determined and NMFS agrees that limiting the amount of GAF that 
could be transferred to the charter fishery as RQE QS holdings increase 
appropriately balances the objective of establishing an RQE to further 
increase harvest opportunity in the charter fishery while minimizing 
the negative impacts that may result in the commercial IFQ fishery from 
transfers of QS.
    The Council recommended and NMFS proposes restricting GAF transfers 
so that in any year, the combined amount of RFQ and GAF transferred to 
CHP holders could not exceed a poundage equal to the maximum amount of 
pounds that could be issued as RFQ in Area 2C or 3A.
    The following two examples describe how NMFS would administer this 
provision in Area 2C. Under this proposed rule, in Area 2C the RQE may 
hold a maximum of 10 percent of the 2015 Area 2C QS pool (5,947,740 
units). These two examples use the 2017 QS:IFQ ratio for Area 2C 
(14.1209 QS units per pound of IFQ), and the 2017 conversion factor for 
IFQ to GAF for Area 2C (74 pounds of IFQ to yield one GAF). The first 
example assumes the RQE held the maximum amount of QS units (5,947,740 
units) in Area 2C. Under this example, the RQE would be issued 421,201 
pounds of RFQ (5,947,740 QS units/14.1209 QS:IFQ = 421,201 pounds), and 
NMFS would not approve any transfers of GAF to CHP holders in Area 2C 
during that calendar year because the combined amount of RFQ and GAF 
transferred by CHP holders would exceed the cumulative limit for RFQ 
and GAF in Area 2C (421,201 pounds). The second example assumes the RQE 
held 50 percent of the RQE's Area 2C cumulative QS limit (i.e., 
2,973,870 units). Under this example, the RQE would be issued 210,601 
pounds of RFQ (2,973,870 QS units/14.1209 QS:IFQ = 210,601 pounds), and 
NMFS could approve GAF transfers to CHP holders equivalent to 210,601 
pounds of IFQ, or 2,845 GAF (210,600 pounds/74 pounds of IFQ per GAF = 
2,845 GAF) during that calendar year before the combined amount of RFQ 
and GAF transferred to CHP holders would exceed as the cumulative limit 
for RFQ and GAF in Area 2C (421,201 pounds). Under this second example, 
NMFS would approve GAF transfers for CHP holders until 2,845 GAF had 
been transferred to CHP holders in Area 2C. Once 2,845 GAF had been 
transferred to CHP holders in Area 2C, NMFS would disapprove all 
subsequent transfers of GAF in Area 2C for the remainder of the 
calendar year.
    The Council and NMFS considered options that would not have 
restricted transfers of GAF even if the RQE reached its cumulative use 
limit of QS. The Council recommended and NMFS proposes limiting the 
total amount of annual poundage that could be reallocated to the 
charter fishery as RFQ and GAF to the cumulative use limit on RQE 
holdings. This limit was chosen, as described in the previous section 
of the preamble, to balance the concerns of commercial fishery 
participants about the increased potential for reallocation to the 
charter fishery with the interests of charter operators to increase 
harvest opportunities. The limit on GAF transfers as RQE QS holdings 
increase is discussed in further detail in Section 4.8.1.2.4 of the 
Analysis.
    NMFS proposes adding a new paragraph at Sec.  
300.65(c)(5)(ii)(D)(1)(iv) to limit the transfer of IFQ to GAF as the 
RQE increases its holdings of QS.
Vessel Category Restrictions
    The Council recommended and NMFS proposes limits on the amounts of 
QS the RQE could hold by vessel category in Areas 2C and 3A. The RQE 
would be limited to holding an amount equal to 10 percent of D-category 
QS and an amount equal to 10 percent of B-category QS, based on the 
2015 QS pools, in Area 2C. Translated to QS units, this proposed rule 
would prohibit the RQE from holding more than 889,548 units of D-
category QS, and more than 265,524 units of B-category QS in Area 2C 
(see Table 4-40 of the Analysis).
    Under this proposed rule, the RQE would be prohibited from 
purchasing or holding D-category QS in Area 3A. The RQE could purchase 
any amount, up to the annual transfer and cumulative use limits of A-, 
B-, and C-category QS in Area 3A.
    The Council and NMFS considered the current composition of the QS 
pools in Areas 2C and 3A, and the potential impact on specific QS 
categories when proposing these regulations. D-category QS cannot be 
fished on vessels greater than 35 ft LOA in Area 3A or 2C. Thus, the 
proposed limits on the RQE

[[Page 46024]]

acquiring D-category shares is intended to maintain vessel size 
diversity in the commercial fleet. Additionally, the Council and NMFS 
noted that D-category QS tends to sell for a lower price and could 
therefore make it a desirable and accessible category of QS for the RQE 
to purchase (see Section 4.5 of the Analysis). Therefore, the limits 
are being proposed to reduce the potential for the RQE to obtain so 
much D-category QS as to impact the size diversity of the commercial 
IFQ fishery fleet by substantially reducing the amount of QS available 
for small vessels in the commercial fleet. The proposed limits on D-
category QS purchases are also intended to protect the opportunity for 
new entrants in the commercial fishery because these participants often 
use vessels that are 35 ft LOA or less.
    In Area 2C, B- and C-category QS also provide entry-level 
opportunities. A total prohibition on acquisition of D-category QS in 
Area 2C could put market pressure on other parts of the Area 2C QS 
market that are important for entry and diversity. While C-category QS 
makes up about 79 percent of the total Area 2C QS pool, B-category QS 
represents a relatively small percentage (4.5 percent, as shown in 
Table 4-19 of the Analysis). Therefore, the Council recommended and 
NMFS proposes limiting RQE QS purchases in Area 2C to 10 percent of the 
B-category QS pool (based on the 2015 QS pool). Because restrictions on 
B-category QS transfers would limit the QS market opportunity for the 
RQE in Area 2C, the Council recommended and NMFS proposes some limited 
opportunity in the D-category market to relieve some of the potential 
market pressure on the remaining C-category QS (10 percent of the D-
category QS pool in Area 2C). These provisions would ensure that most 
of the B- and D-category QS are used in the commercial IFQ fishery and 
are intended to balance entry-level opportunities and fleet diversity 
in the commercial IFQ fishery, with potential benefits to the charter 
fishery from transfers of QS to the RQE. The proposed vessel category 
restrictions are discussed in more detail in Section 4.8.1.2.5 of the 
Analysis.
    NMFS proposes adding a new paragraph at Sec.  679.42(f)(8) 
describing RQE use limits for specific vessel categories of QS.
Block Restrictions
    In addition to vessel category restrictions for the RQE, the 
Council recommended and NMFS proposes limits on the size of QS blocks 
that the RQE could purchase. The RQE would be prohibited from 
purchasing blocks of QS by category that equate to 1,500 pounds or less 
(based on 2015 pounds). For Area 2C, this means that the RQE could not 
purchase blocked QS of 24,250 units or less. For Area 3A, the RQE would 
be prohibited from purchasing blocked QS of 35,620 units or less. The 
Council recommended and NMFS proposes these prohibitions to ensure that 
small and more affordable blocks of QS remain available for purchase by 
new entrants and small businesses in the commercial IFQ fishery. The 
prohibition on the transfer of small blocks of QS will have limited 
impact on the total available market of QS that the RQE could purchase. 
Block restrictions are discussed in more detail in Section 4.8.1.3 of 
the Analysis.
    NMFS proposes to add a new paragraph at Sec.  679.42(g)(1)(iii) to 
establish restrictions on the type and amount of blocked QS that the 
RQE can hold.

Revisions for the Calculation of the Charter Catch Limit and 
Establishment of Annual Management Measures

    This proposed rule would also modify several regulations to 
facilitate the proper accounting of RFQ. This section describes the 
process that would be used annually to calculate the amount of RFQ and 
establish annual management measures.
    On October 1 of each year, the RQE's QS holdings would be used as 
the basis for estimating the number of RFQ pounds to add to the charter 
allocation under the CSP for the following calendar year. This 
estimated combined allocation would be used to recommend the charter 
fishery management measures for the following year. The process and 
timeline for setting annual management measures would remain unchanged. 
Once the IPHC annual management measures are approved, typically in 
late February or early March, NMFS would issue pounds of RFQ to the RQE 
based on the number of QS units held by the RQE on October 1 of the 
previous year to augment the charter catch limit established under the 
CSP. The Council recommended and NMFS proposes establishing October 1 
as the date for determining how many QS units would yield RFQ so that 
the Council's Charter Committee and the Council would be able to 
estimate the pounds of RFQ that the RQE would receive in the following 
year and be able to factor that amount into its recommendations for 
charter management measures in the following year.
    The RFQ would not be issued to the RQE in the upcoming fishing year 
for any QS that the RQE received by transfer after October 1. If the 
RQE transfers QS that it holds on October 1 to a recipient in the 
commercial IFQ fishery after that date, NMFS would not issue IFQ to the 
commercial recipient for that QS in the following calendar year. This 
approach is similar to the method used in the commercial fishery to 
allow the transfer of QS but not the IFQ once that IFQ has been used. 
In this case, NMFS would consider that RFQ is effectively ``used'' if 
it is assigned to the charter allocation for the following calendar 
year. If the RQE receives QS by transfer after October 1, that QS would 
not result in the issuance of RFQ for the following calendar year. 
However, if the RQE subsequently transferred any QS received by 
transfer after October 1 that did not result in RFQ back to the 
commercial IFQ fishery, NMFS would issue IFQ to the commercial 
recipient for that QS.
    In late November of each year, NMFS would estimate the pounds of 
RFQ that the QS units held by the RQE on October 1 would yield in the 
upcoming year based on the current year's QS:IFQ ratio and the IPHC's 
preliminary estimate of the possible combined catch limits in Areas 2C 
and 3A.
    In December of each year, the Council would recommend a range of 
potential charter management measures for Areas 2C and 3A that would be 
expected to limit charter harvests in an area to the estimated charter 
catch limit plus the estimated supplemental pounds provided by the RFQ.
    NMFS proposes revising Sec.  679.40(c)(2) to clarify that NMFS 
would use the QS pool for the IFQ regulatory area, including Areas 2C 
and 3A, on record with the Alaska Region, NMFS, on January 15 of that 
year for purposes of calculating the amount of IFQ and RFQ for that 
regulatory area for that year. This proposed revision to move the date 
of record from January 31 to January 15 of each year would ensure that 
the IPHC would be able to determine the amount of IFQ and RFQ and the 
total allocations that would be assigned to the commercial IFQ and 
charter fisheries, respectively, when it adopts annual management 
measures at its annual meeting in late January.
    NMFS also proposes revising Sec.  300.65(c) to authorize the use of 
RFQ in the charter fishery, and to describe how and when QS holdings by 
the RQE would be calculated and added to the charter catch limit under 
the CSP.

Redistribution of Excess RFQ

    The Council recommended and NMFS proposes a temporary 
redistribution of RFQ from the RQE to the commercial IFQ fishery if the 
RQE

[[Page 46025]]

holdings of QS provide a charter harvest opportunity greater than the 
unguided recreational management measures in either Area 2C or 3A. The 
current management measure for unguided recreational anglers in both 
areas is a daily bag limit of two halibut of any size. Under this 
proposed rule, NMFS would not issue annual RFQ in excess of the 
adjusted charter catch limit (the sum of the annual guided sport catch 
limit under the CSP and RFQ from the RQE's QS holdings on October 1 of 
the previous year) needed for charter anglers to obtain the unguided 
recreational management measures for that area.
    The Council and the Analysis use the term ``reallocate'' to 
describe the temporary (1-year) redistribution of excess RFQ to the 
commercial IFQ fishery. NMFS notes that the term reallocate is often 
used in other regulations to describe a permanent transfer of harvest 
privileges from one group of participants to another. NMFS uses the 
term redistribute in this proposed rule to clarify for fishery 
participants and the public that the distribution of excess RFQ to 
commercial IFQ fishery participants is in effect for one year, and is 
not a permanent reallocation.
    The Council recommended and NMFS proposes the following process for 
the temporary redistribution of RFQ (as IFQ) to the commercial IFQ 
fishery, in the event that the RQE has QS holdings in excess of the 
amount needed to provide charter anglers with harvest opportunities 
equal to those for unguided recreational anglers. Each January, the 
IPHC will recommend charter fishery management measures for Areas 2C 
and 3A that are expected to limit charter harvest to the adjusted 
charter catch limit for each area (the sum of the annual guided sport 
catch limit under the CSP and the estimated amount of RFQ from the 
RQE's QS holdings on October 1 of the previous year).
    After the IPHC recommends charter fishery management measures, NMFS 
will determine if a redistribution of excess RFQ is necessary. If the 
IPHC has adopted charter fishery management measures that are 
equivalent to the unguided recreational management measures in either 
Area 2C or 3A (e.g., a daily bag limit of two halibut of any size), 
NMFS would determine the amount of RFQ that would be needed to account 
for charter harvest in Area 2C and Area 3A under the recommended 
management measures and issue that amount as RFQ to supplement the 
charter fishery allocation under the CSP. The difference between the 
total amount of available RFQ and the amount needed for the charter 
fishery would be excess RFQ. NMFS would redistribute the amount of 
excess RFQ using the process recommended by the Council.
    Under this proposed rule, 50 percent of any RFQ in excess of the 
amount needed to achieve the unguided recreational management measures 
in either Area 2C or 3A would be redistributed as IFQ to all catcher 
vessel QS holders in the applicable area (Area 2C or Area 3A) who held 
not more than 32,333 QS units in Area 2C, and 47,469 QS units in Area 
3A (i.e., the amount of QS that yielded 2,000 pounds of IFQ in 2015) in 
the year prior to the redistribution, and who also held that QS 
eligible for redistribution during the year that the redistribution 
occurs. This 50 percent would be redistributed among qualified QS 
holders in proportion to their QS holdings.
    The Council's recommendation stated that 50 percent of excess RFQ 
should be redistributed ``equally'' to all qualified QS holders. During 
Council deliberations, NMFS staff and the Council clarified how NMFS 
would implement the Council's recommendation. NMFS proposes to 
implement this provision by dividing the amount of IFQ available for 
redistribution to qualified QS holders by the total amount of QS units 
held by all qualified QS holders. For example, if there were 50,000 
pounds of excess RFQ to be redistributed as IFQ in Area 3A in calendar 
year 2025 among QS holders who held not more than 47,469 QS units in 
the year prior to the redistribution (2024), and in the year during 
which the redistribution occurs (2025), and the total sum of all QS 
held by those qualified QS holders was 500,000 units, then each of 
these qualified QS holders would receive an additional 1/10 of a pound 
of IFQ in 2025 for each QS unit held. NMFS does not issue IFQ in less 
than one pound increments, therefore NMFS would round the amount of 
redistributed IFQ to the nearest pound for each qualified QS holder. 
Section 4.8.1.3 of the Analysis provides additional information on the 
method NMFS would use to redistribute excess RFQ.
    This proposed rule would require the QS holder to hold the QS in 
the year prior to the redistribution to meet the clear intent of the 
Council, as well as in the year that the redistribution occurs in order 
to ensure the proper administration of this provision. NMFS proposes 
this requirement to ensure that IFQ is issued to persons who hold the 
underlying QS eligible to receive the redistribution. If NMFS were to 
redistribute RFQ as IFQ only to QS holders that held QS in the year 
prior to the redistribution, it is possible that a person could hold QS 
in the year prior to the redistribution, subsequently transfer that QS 
before NMFS issues IFQ for the following year, and receive IFQ from the 
redistribution even though that person does not hold QS. Issuing IFQ to 
persons who do not currently hold QS would be contrary to the current 
functioning of the IFQ Program (i.e., IFQ is issued to persons who hold 
QS).
    Under this proposed rule, the remaining 50 percent of RFQ in excess 
of the amount needed to achieve the unguided sport management measures 
in either Area 2C or 3A would be redistributed equally among all CQEs 
that held halibut QS in the applicable area (Area 2C or Area 3A) in the 
year prior to the redistribution as well as in the year that the 
redistribution occurs. If no CQE held QS in the applicable area (Area 
2C or Area 3A) in the preceding year and in the year that the 
redistribution occurs, this 50 percent of the excess RFQ would not be 
redistributed in that area. In other words, the excess RFQ would be 
unfished or ``left in the water'' for conservation. The rationale for 
requiring the CQE to hold QS in the year prior to the redistribution, 
and in the year the redistribution occurs is the same as the rationale 
for the redistribution to catcher vessel QS holders described above. 
NMFS solicits comments from the public on whether excess RFQ should be 
redistributed to eligible catcher vessel QS holders and CQEs based on 
this proposed methodology.
    The Council and NMFS considered options that would not have 
required a redistribution of RFQ as only IFQ, and alternative methods 
to redistribute RFQ as IFQ. The Council recommended and NMFS proposes 
the reallocation procedures in this rule to provide additional harvest 
opportunity among holders of small amounts of QS as well as to CQEs who 
hold QS on behalf of coastal community residents. Section 4.8.1.4 of 
the Analysis describes the options considered by the Council and NMFS 
and notes that based on the current levels of halibut abundance and the 
cumulative use limits in Area 2C and 3A, it is unlikely that the RQE 
could hold an amount of QS that would result in the need for 
redistribution of excess RFQ.
    NMFS proposes to add regulations under Sec.  679.40(c) to describe 
how excess RFQ would be redistributed.

Cost Recovery Fees

    The Magnuson-Stevens Act at section 304(d)(2)(A) requires that cost 
recovery fees be collected for the costs directly

[[Page 46026]]

related to the management, data collection, and enforcement of any 
limited access privilege programs. This includes programs such as the 
commercial halibut IFQ Program, under which a dedicated allocation is 
provided to IFQ permit holders. Fees owed are a percentage, not to 
exceed 3 percent, of the ex-vessel value of fish landed and debited 
from IFQ permits. Each year, NMFS sends fee statements to IFQ holders 
whose annual IFQ was landed; those holders must remit fees by January 
31 of the following year. Under this proposed rule, the RQE would be 
responsible for all cost recovery fees on their annual RFQ.
    NMFS calculates IFQ cost recovery fee assessments in November each 
year. To determine cost recovery fees for IFQ holders, NMFS uses data 
reported by Registered Buyers to compute annual standard ex-vessel IFQ 
prices by month and port (or, if confidential, by port group). NMFS 
publishes these standard prices in the Federal Register each year. For 
example, NMFS published the 2016 standard ex-vessel IFQ prices in the 
Federal Register on December 13, 2016 (81 FR 89990). NMFS uses the 
standard prices to compute the total annual fishery value of the IFQ 
fisheries. NMFS determines the fee percentage by dividing management, 
data collection, and enforcement costs for the IFQ Program by total IFQ 
fishery value. In recent years, IFQ costs have exceeded 3 percent; 
therefore, the cost recovery fee percentage has been set at the maximum 
of 3 percent. Unlike commercial IFQ, which is only subject to cost 
recovery fees when landed, the RFQ held by the RQE would be considered 
``used'' when issued, because management measures will be based on the 
combined amount of the RFQ and charter fishery catch limit in each 
regulatory area.
    In years when the RQE holds QS and the RFQ is issued to augment the 
charter fishery's catch limit, the charter fishery would be effectively 
using all of this RFQ; therefore, the RQE would pay cost recovery fees 
on all of its RFQ. Since all annual RFQ issued to the RQE would be 
considered ``used,'' NMFS would levy the fee calculated for the RQE's 
annual RFQ pounds that are issued, rather than estimating RFQ harvest 
at each point of charter landings. The fee would be calculated using 
the standard price calculated for Area 2C or 3A and the RFQ held by the 
RQE. This is similar to the method used to apply an ex-vessel value for 
GAF. The IFQ cost recovery fee could be levied on the RQE each year the 
RQE holds QS, and the resulting RFQ is issued to augment the catch 
limit in the charter fishery. All holdings acquired by the RQE on 
October 1 of the prior year would be subject to the IFQ cost recovery 
fee.
    For purposes of cost recovery, the RQE would pay fees on all 
resulting pounds of RFQ, even if the charter fishery's harvest was 
under its catch limit in Area 2C or 3A for that year. In December of 
each year, NMFS would (1) determine the standard prices and the cost 
recovery fee percentage; (2) announce the standard prices and the cost 
recovery fee percentage in the Federal Register; and (3) issue the RQE 
a fee assessment. The RFQ fee assessment would be based on the number 
of RFQ pounds added to either the Area 2C or 3A charter catch limit 
based on QS holdings as of October 1 of the prior year multiplied by 
the standard price for Area 2C or Area 3A, and multiplied by the cost 
recovery fee percentage (around 3 percent in recent years). The cost 
recovery fee payment from the RQE to NMFS would be due by January 31 of 
each year.
    Based on NMFS policy, only ``incremental'' costs, i.e., those 
incurred as a result of IFQ management, are assessable as cost recovery 
fees. The costs to develop the regulations, accounting, and reporting 
systems for the RQE Program would be considered incremental and 
extensions of the IFQ Program and would be recoverable under cost 
recovery. Agency costs related to development of the RQE Program will 
be included in the IFQ cost recovery fee assessment. Recently, the 
costs to administer the IFQ Program has been at or above the 3 percent 
cost recovery fee limit; therefore, additional costs due to the 
development of the RQE Program would likely not increase the cost 
recovery fee percentage for IFQ permit holders. Additional information 
about assessing cost recovery fees for an RQE is provided in Section 
4.8.1.5.1 of the Analysis.
    NMFS proposes revising regulations throughout Sec.  679.45 to 
incorporate the RQE into the IFQ Program cost recovery fee estimation 
and collection process.

General Reporting

    Because all RFQ would be considered landed or used by the RQE in 
the year for which it is issued and the standard prices would be 
applied to pounds of RFQ, the RQE would not be required to complete the 
recordkeeping and reporting requirements described for the IFQ Program 
at Sec.  679.5(1). The RQE would be exempt from submitting the IFQ 
Prior Notice of Landing, Product Transfer, IFQ Landing, IFQ 
Transshipment Authorization, and IFQ Departure reports.

Annual Report

    The Council recommended and NMFS proposes that the RQE file an 
annual report with the Council by January 31 of each year that details 
the administrative activities and business operations of the RQE during 
the prior year for each year that it holds commercial QS. Although not 
specifically requested by the Council, NMFS proposes that the annual 
report also be submitted to NMFS for reasons described below.
    The RQE would be required to include the following general 
information in its annual report: (1) Any changes to the bylaws, board 
of directors, or other key management personnel of the RQE during the 
preceding year; (2) amounts and descriptions of annual administrative 
expenses; (3) amounts and descriptions of funds spent on conservation, 
research, and promotion of the halibut resource and a summary of the 
results; and (4) amounts and descriptions of all other expenses. 
Additionally, the RQE would be required to submit the following 
information by regulatory area: (1) The total amount of halibut QS by 
vessel category and block held by the RQE at the start of the calendar 
year, on October 1, and at the end of the calendar year; (2) a list of 
all transfers (purchases, sales, and any other transfers) of halibut 
QS, including transaction prices if applicable; and (3) the number of 
CHPs and associated angler endorsements purchased and held by the RQE.
    The Council did not specify what would happen if the RQE did not 
submit a timely and complete annual report. Section 679.41(c)(10)(ii) 
requires a CQE to submit a timely and complete annual report to NMFS 
before a transfer of QS will be approved or IFQ will be issued. NMFS 
proposes a similar requirement for the RQE at new paragraph Sec.  
679.41(c)(11)(i). If the RQE held QS in the previous year and has not 
submitted a timely and complete annual report by the January 31 
deadline, NMFS would not approve a transfer of QS or issue RFQ until 
the report is submitted. To confirm receipt of the report, NMFS is 
proposing that the RQE submit the annual report to both the Council and 
NMFS. NMFS seeks public comment on whether these requirements, similar 
to those for CQEs, should apply to the RQE.
    NMFS proposes adding Sec.  679.5(v) to include the RQE annual 
report requirements.

Other Regulatory Changes

    NMFS proposes revisions throughout the IFQ regulations at 50 CFR 
part 679

[[Page 46027]]

that refer to ``an IFQ permit holder'' to also include the term ``RQE'' 
where applicable.
    NMFS proposes revisions throughout 50 CFR part 679 that refer to 
the IFQ permit that also pertain to the RQE to include the term ``RFQ 
permit account.'' NMFS proposes these revisions because the RQE would 
not be issued an IFQ fishing permit. Instead, NMFS proposes 
establishing an RFQ permit account for the RQE that would be used to 
administer RFQ as described in this proposed rule.
    NMFS also proposes revisions throughout 50 CFR part 679 that refer 
to IFQ to include the term ``RFQ'' when the regulations refer to IFQ 
and RFQ.
    These minor changes are shown in the proposed regulatory text.

Appeals

    This proposed rule would change several references within 
Sec. Sec.  679.41 and 679.45 that describe the former procedure for 
appealing an IAD to the NOAA Fisheries' Alaska Office of Administrative 
Appeals. Those procedures were described at to Sec.  679.43. NOAA 
Fisheries has centralized the appeals process in the National Appeals 
Office, which operates out of NOAA Fisheries' headquarters in Silver 
Spring, MD. The National Appeals Office is now charged with processing 
appeals that were filed with the Office of Administrative Appeals, 
Alaska Region. The procedure for appealing an IAD through the National 
Appeals Office is at 15 CFR part 906 (79 FR 7056, February 6, 2014). 
This proposed rule would update the regulations referring to appeals 
procedures for the IFQ Program to refer to 15 CFR part 906 instead of 
to Sec.  679.43.

Council Intent Regarding the Functioning of the RQE

    During the development of the RQE Program, the Council and NMFS 
considered, but did not propose regulations that would address RQE 
funding, limits on the use of RQE funds, and the purchase of CHPs by 
the RQE. This section of the preamble provides the public with a 
description of the overall intent of the Council regarding RQE funding 
and limits on the use of RQE funds, and notes that NMFS would regulate 
the purchase of CHPs by the RQE consistent with existing regulations.

RQE Funding

    The Council did not recommend and NMFS does not propose regulations 
that would define the specific type of incorporation (e.g., a 501(c)(3) 
non-profit corporation) for the RQE. Likewise, the Council did not 
recommend and NMFS does not propose regulations regarding the 
acquisition of funds the RQE may use to purchase QS. Section 4.8.1.1 of 
the Analysis describes the different types of non-profit structures 
that an RQE could use, and how those non-profits may use and receive 
funds.

Limit on Use of RQE Funds

    The Council did not recommend and NMFS does not propose regulations 
regarding the use of funds obtained by the RQE. However, the Council 
did indicate how funds obtained by the RQE could be used to meet the 
objectives of the RQE Program. The Council indicated that it intended 
for the RQE to use funds primarily for the acquisition of commercial 
halibut QS; halibut conservation and research; promotion of the halibut 
resource; and administrative costs. NMFS notes that this proposed rule 
would require the RQE to submit an annual report describing its annual 
expenditures (described in a previous section of this preamble) to NMFS 
and the Council. Based on information received in this annual report, 
the Council could choose to initiate a subsequent action that would 
limit the use of funds held by the RQE in the future if the RQE's 
annual reports indicate that RQE funds are being used in a manner that 
is contrary to the Council's intent described above.

Purchase of Charter Halibut Permits by an RQE (Sec.  300.67)

    The Council did not specify limits on the acquisition of CHPs by 
the RQE; therefore, the RQE would be subject to regulations that apply 
to any other person, as defined at Sec.  300.61, for purposes of 
purchasing and holding CHPs. Section 300.67(j) states that a person may 
not own, hold, or control more than five CHPs, with limited exceptions. 
The RQE would be authorized to purchase and hold up to five 
transferable CHPs in both regulatory areas combined. Any purchases or 
sales of CHPs by the RQE would be required to be reported in the RQE's 
annual report to the Council and NMFS.

Classification

    Regulations governing the U.S. fisheries for Pacific halibut are 
developed by the IPHC, the Pacific Fishery Management Council, the 
North Pacific Fishery Management Council, and the Secretary of 
Commerce. Section 5 of the Halibut Act (16 U.S.C. 773c) allows the 
Regional Council having authority for a particular geographical area to 
develop regulations governing fishing for halibut in U.S. Convention 
waters as long as those regulations do not conflict with IPHC 
regulations. The Halibut Act, at sections 773c(a) and (b), provides the 
Secretary of Commerce with the general responsibility to carry out the 
Convention with the authority to, in consultation with the Secretary of 
the department in which the U.S. Coast Guard is operating, adopt such 
regulations as may be necessary to carry out the purposes and 
objectives of the Convention and the Halibut Act. This proposed rule is 
consistent with the Halibut Act and other applicable laws.
    This proposed rule has been determined to be not significant for 
the purposes of Executive Order 12866.

Regulatory Impact Review (RIR)

    An RIR was prepared to assess all costs and benefits of available 
regulatory alternatives. The RIR considers all quantitative and 
qualitative measures. A copy of this analysis is available from NMFS 
(see ADDRESSES). The Council recommended and NMFS proposes this rule 
based on those measures that maximized net benefits to the Nation. 
Specific aspects of the economic analysis are discussed below in the 
Initial Regulatory Flexibility Analysis section.

Initial Regulatory Flexibility Analysis

    An Initial Regulatory Flexibility Analysis (IRFA) was prepared for 
this action, as required by section 603 of the Regulatory Flexibility 
Act (RFA). The IRFA describes the economic impact this proposed rule, 
if adopted, would have on small entities. The IRFA describes the 
action; the reasons why this action is proposed; the objectives and 
legal basis for this proposed rule; the number and description of 
directly regulated small entities to which this proposed rule would 
apply; the recordkeeping, reporting, and other compliance requirements 
of this proposed rule; and the relevant Federal rules that may 
duplicate, overlap, or conflict with this proposed rule. The IRFA also 
describes significant alternatives to this proposed rule that would 
accomplish the stated objectives of the Magnuson-Stevens Act, and any 
other applicable statutes, and that would minimize any significant 
economic impact of this proposed rule on small entities. The 
description of the proposed action, its purpose, and the legal basis 
are explained in the preamble and are not repeated here. A summary of 
the IRFA follows. A copy of the IRFA is available from NMFS (see 
ADDRESSES).
    The Small Business Administration (SBA) criteria for determining 
whether

[[Page 46028]]

an entity is ``small'' for purposes of the RFA are discussed in more 
detail in Section 5.3 of the Analysis. The SBA has established a small 
business size standard for businesses, including their affiliates, 
whose primary industry is ``finfish fishing'' (see 50 CFR 200.2). 
Commercial halibut QS holders are considered finfish fishers under the 
RFA. A business primarily involved in finfish fishing (North American 
Industry Classification Systems code 11411) is classified as a small 
business if it is independently owned and operated, is not dominant in 
its field of operation (including its affiliates), and has combined 
annual gross receipts not in excess of the applicable size standard for 
all its affiliated operations worldwide. On December 29, 2015, NMFS 
issued a final rule establishing the small business size standard of 
$11 million in annual gross receipts for all businesses in the 
commercial fishing industry (80 FR 81194). This new size standard 
applies to all businesses included under the North American Industry 
Classification Systems code 11411 for purposes of RFA compliance only. 
The new size standard became effective July 1, 2016, and was used to 
estimate the number of directly regulated small entities in this IRFA.
    For this proposed action, the pool of small, directly regulated 
entities would be limited to those entities that would be engaging in 
QS transfer (i.e., QS holders, including CQEs, and a future RQE). CQEs 
and the proposed RQE would be considered a small entity, or more 
specifically, a small organization as defined by the RFA. A small 
organization is ``any not-for-profit enterprise which is independently 
owned and operated and is not dominant in its field.'' In addition, no 
CQE has more than $11 million in annual gross receipts. The RQE that is 
proposed under this action would not be expected to have $11 million in 
annual gross receipts because it does not currently hold halibut QS 
that would yield $11 million in annual gross receipts. Commercial 
halibut QS holders would also be considered directly regulated. Most of 
the QS holders in the halibut IFQ Program are small entities.

Number and Description of Small Entities Regulated by This Proposed 
Rule

    NMFS considers commercial halibut fishing vessels as proxies for 
small entities because IFQ from more than one QS holder is often fished 
from the same vessel. NMFS estimates that 812 vessels across all IPHC 
regulatory areas landed halibut in 2014, the most recent year of 
complete data on the value of halibut landings by vessel. Of those, 11 
vessels would be considered large entities because they showed revenues 
that exceeded the $11 million threshold. The remaining 801 vessels 
would be considered directly regulated small entities for this proposed 
rule. See Section 5.6 of the Analysis for more information.

Description of Significant Alternatives That Minimize Adverse Impacts 
on Small Entities

    This proposed action is expected to have distributional impacts to 
the identified directly regulated small entities. Transfers of QS would 
be voluntary among all the small, directly regulated entities 
identified in the IRFA. The preferred alternative is the only 
alternative considered that would give current halibut QS holders an 
additional opportunity to transfer their QS and the RQE an opportunity 
to form and obtain QS. As noted earlier in this preamble, the Council 
and NMFS considered the status quo and the preferred alternative. 
However, under the preferred alternative, the Council and NMFS 
considered a wide range of potential limitations on the amount and type 
of QS that could be held by the RQE. The wide variation in the options 
considered under the preferred alternative provided the Council and 
NMFS with a broad range of potential policy choices to minimize the 
adverse impacts.
    Under the preferred alternative, the RQE representing the charter 
fishery would not be expected to participate in the IFQ Program (and 
purchase halibut QS) if it did not benefit the charter fishery as a 
whole. QS holders, including CQEs, would not be expected to engage in a 
QS transaction with the RQE if it did not benefit from that transfer. 
However, there is a potential for the RQE to affect the QS market by 
increasing competition in the market. This increased competition could 
limit the ability for persons in the commercial IFQ fishery to expand 
their QS holdings by increasing the market price of QS or limiting the 
amount of QS available to commercial QS holders and CQEs. This 
potential negative impact is considered in the Regulatory Impact Review 
(Section 4.8.2 of the Analysis). To mitigate the expected effects on 
the QS market, the Council recommended and NMFS proposes provisions to 
limit the amount and types of QS that could be acquired by the RQE, 
annually and cumulatively.
    Specifically, the Council's preferred alternative (and this 
proposed rule) would create an annual transfer limitation of 1 percent 
of the QS in Area 2C and an annual transfer limitation of 1.2 percent 
of the QS in Area 3A. Cumulative use limits for the charter fishery are 
proposed to limit the combined amount of commercial QS held by RQE and 
transferred under GAF (10 percent in Area 2C and 12 percent in Area 
3A). Proposed transfer limits include prohibiting the RQE from 
purchasing D-category QS in Area 3A and limiting it to holding 10 
percent of D-category QS in Area 2C, and restricting purchase of B-
category QS to no more than 10 percent in Area 2C and 10 percent of B-
category QS in Area 2C. Block restrictions would prohibit the RQE from 
purchasing small blocks of QS. This proposed rule would seek to derive 
the greatest net benefit for small regulated entities by increasing 
market opportunities in the charter fishery while ameliorating adverse 
impacts that could occur for QS holders and CQEs in the commercial IFQ 
fishery if QS holdings by the RQE were not limited. Overall, the net 
benefits to directly regulated small entities are expected to be 
positive.

Duplicate, Overlapping, or Conflicting Federal Rules

    NMFS has not identified any duplication, overlap, or conflict 
between this proposed action and existing Federal rules.

Recordkeeping, Reporting, and Other Compliance Requirements

    The RFA requires a description of the projected reporting, 
recordkeeping, and other compliance requirements of the proposed rule, 
including an estimate of the classes of small entities that will be 
subject to the requirement and the type of professional skills 
necessary for preparation of the report or record. This proposed rule 
would require new information collections from an RQE. Under this 
proposed rule, a non-profit entity that wants to become an RQE would 
need to complete an application and submit it to NMFS for approval. 
This application would require submission of the entity's articles of 
incorporation, the corporate by-laws, a list of key personnel, 
including the Board of Directors, officers, representatives, and 
managers. NMFS would approve the first complete RQE application it 
receives.
    If the RQE wants to receive or transfer halibut QS, it would need 
to use the ``Application for Transfer QS To or From an RQE'' available 
on the NMFS Alaska Region Web site at https://alaskafisheries.noaa.gov/. Additionally, the RQE would be required to 
submit an annual report detailing its activities to NMFS and the 
Council. The RQE would also be subject to cost recovery fees so

[[Page 46029]]

it would need to comply with the existing cost recovery fee payment 
requirements for IFQ permit holders. These recordkeeping and reporting 
requirements are expected to be administrative in nature.

Collection-of-Information Requirements

    This proposed rule contains collection-of-information requirements 
subject to review and approval by the Office of Management and Budget 
(OMB) under the Paperwork Reduction Act (PRA). NMFS has submitted these 
requirements to OMB for approval under a temporary new information 
collection, to be merged after approval with OMB Control Number 0648-
0272. Public reporting burden is estimated to average per response: 200 
hours for Application for a Non-Profit Corporation to be Designated as 
a Recreational Quota Entity; 2 hours for Application for Transfer of QS 
To or From an RQE; 40 hours for RQE Annual Report; 1 minute for 
electronic submission of cost recovery fee; and 30 minutes for non-
electronic fee submission for IFQ Permit Holder Fee Submission Form. 
Public comment is sought regarding: Whether these proposed collections 
of information are necessary for the proper performance of the 
functions of the agency, including whether the information shall have 
practical utility; the accuracy of the burden statement; ways to 
enhance quality, utility, and clarity of the information to be 
collected; and ways to minimize the burden of the collection of 
information, including through the use of automated collection 
techniques or other forms of information technology. Send comments on 
these or any other aspects of the collection of information, to NMFS 
(see ADDRESSES), and by email to [email protected] or fax to 
202- 395-5806.
    Notwithstanding any other provision of the law, no person is 
required to respond to, nor shall any person be subject to penalty for 
failure to comply with, a collection of information subject to the 
requirement of the PRA, unless that collection of information displays 
a currently valid OMB control number. All currently approved NOAA 
collections of information may be viewed at http://www.cio.noaa.gov/services_programs/prasubs.html.

List of Subjects

50 CFR Part 300

    Administrative practice and procedure, Antarctica, Canada, Exports, 
Fish, Fisheries, Fishing, Imports, Indians, Labeling, Marine resources, 
Reporting and recordkeeping requirements, Russian Federation, 
Transportation, Treaties, Wildlife.

50 CFR Part 679

    Alaska, Fisheries, Reporting and recordkeeping requirements.

    Dated: September 25, 2017.
Samuel D. Rauch, III,
Deputy Assistant Administrator for Regulatory Programs, National Marine 
Fisheries Service.

    For the reasons set out in the preamble, 50 CFR parts 300 and 679 
are proposed to be amended as follows:

PART 300--INTERNATIONAL FISHERIES REGULATIONS

Subpart E--Pacific Halibut Fisheries

0
1. The authority citation for part 300, subpart E, continues to read as 
follows:

    Authority: 16 U.S.C. 773-773k.

0
2. In Sec.  300.65:
0
a. Add paragraph (c)(1)(iii);
0
b. Revise paragraph (c)(4)(i); and
0
c. Add paragraphs (c)(4)(iii) and (c)(5)(ii)(D)(1)(iv) to read as 
follows:


Sec.  300.65  Catch sharing plan and domestic management measures in 
waters in and off Alaska.

* * * * *
    (c) * * *
    (1) * * *
    (iii) Authorizes the use of Commission regulatory areas 2C and 3A 
RFQ resulting from halibut QS held by the RQE as authorized in part 679 
to this title to supplement the annual guided sport catch limit in the 
corresponding area, pursuant to paragraph (c)(4) of this section.
* * * * *
    (4) * * *
    (i) The Commission regulatory areas 2C and 3A annual guided sport 
catch limits are determined by subtracting wastage from, and adding any 
pounds of RFQ held by an RQE for that area to, the allocations in 
Tables 3 and 4 of this subpart E, adopted by the Commission as annual 
management measures, and published in the Federal Register as required 
in Sec.  300.62.
* * * * *
    (iii) The amount of QS held by the RQE for Commission regulatory 
area 2C and 3A as of October 1 each year will be the basis for 
determining the amount of RFQ pounds that will be added to the annual 
guided sport catch limit for the corresponding area in the upcoming 
year.
    (5) * * *
    (ii) * * *
    (D) * * *
    (1) * * *
    (iv) In the applicable Commission regulatory area, either Area 2C 
or Area 3A, the sum of IFQ halibut equivalent pounds, as defined in 
Sec.  679.2 of this title, from the transfer of IFQ to GAF and the 
pounds of RFQ issued to the RQE during a calendar year does not exceed 
an amount that is greater than the amount derived from:
    (A) 5,947,740 units of Area 2C QS; or
    (B) 22,187,161 units of Area 3A QS.
* * * * *

PART 679--FISHERIES OF THE EXCLUSIVE ECONOMIC ZONE OFF ALASKA

0
3. The authority citation for part 679 continues to read as follows:

    Authority: 16 U.S.C. 773 et seq.; 1801 et seq.; 3631 et seq.; 
Pub. L. 108-447; Pub. L. 111-281.

0
4. In Sec.  679.2, add definitions for ``Recreational Fishing Quota 
(RFQ)'' and ``Recreational Quota Entity (RQE)'' in alphabetical order 
to read as follows:


Sec.  679.2  Definitions.

* * * * *
    Recreational Fishing Quota (RFQ) means the pounds of halibut issued 
annually to a Recreational Quota Entity to supplement the annual guided 
sport catch limit under the catch sharing plan for IFQ regulatory areas 
2C and 3A pursuant to Sec.  300.65(c) of this title.
    Recreational Quota Entity (RQE) means a non-profit entity 
incorporated under the laws of the State of Alaska, recognized as 
exempt from federal income tax by the Internal Revenue Service, and 
authorized by NMFS to participate in the Halibut IFQ Program to hold 
commercial halibut quota share to supplement the annual guided sport 
catch limit in IFQ regulatory areas 2C and 3A under the catch sharing 
plan pursuant to Sec.  300.65(c) of this title. NMFS will authorize 
only one RQE at a time.
* * * * *
0
5. In Sec.  679.4, add paragraph (d)(1)(iv) to read as follows:


Sec.  679.4  Permits.

* * * * *
    (d) * * *
    (1) * * *
    (iv) RFQ permit account. An RFQ permit account identifies the 
amount of RFQ authorized for use by charter vessel anglers in Area 2C 
or Area 3A. The number of pounds of RFQ allocated to the RFQ permit 
account will be added to the annual guided sport catch limit under the 
catch sharing plan (described at 50 CFR 300.65(c)) for the appropriate 
IFQ regulatory area, Area 2C or Area 3A.
* * * * *

[[Page 46030]]

0
6. In Sec.  679.5:
0
a. Revise paragraphs (l)(7)(ii)(A) and (l)(7)(ii)(C) and (D); and
0
b. Add paragraphs (l)(9) and (v) to read as follows:


Sec.  679.5  Recordkeeping and reporting (R&R).

* * * * *
    (l) * * *
    (7) * * *
    (ii) * * *
    (A) Applicability. An IFQ permit holder who holds an IFQ permit 
against which a landing was made or an RQE that holds RFQ must submit 
to NMFS a complete IFQ Permit Holder Fee Submission Form provided by 
NMFS.
* * * * *
    (C) Completed application. NMFS will process an IFQ Permit Holder 
Fee Submission Form provided that a paper or electronic form is 
completed by the IFQ permit holder or an RQE that holds RFQ, with all 
applicable fields accurately filled in, and all required additional 
documentation is attached.
    (D) IFQ landing summary and estimated fee liability. NMFS will 
provide to an IFQ permit holder and an RQE that holds RFQ an IFQ 
Landing and Estimated Fee Liability page as required by Sec.  
679.45(a)(2). The IFQ permit holder must either accept the accuracy of 
the NMFS estimated fee liability associated with his or her IFQ 
landings for each IFQ permit, or calculate a revised IFQ fee liability 
in accordance with paragraph (l)(7)(ii)(E) of this section. The IFQ 
permit holder may calculate a revised fee liability for all or part of 
his or her IFQ landings.
* * * * *
    (9) An annual report on RQE activities must be submitted to NMFS by 
the RQE as required at Sec.  679.5(v).
* * * * *
    (v) Recreational Quota Entity Program Annual Report--(1) 
Applicability. The RQE must submit a timely and complete annual report 
on the RQE's administrative activities and business operation for each 
calendar year that it holds halibut recreational fishing quota (RFQ) 
and quota shares (QS). The RQE may combine annual reports on its 
holdings of halibut QS and RFQ for IFQ regulatory areas 2C and 3A into 
one report. The RQE must submit annual report data for the halibut QS 
and RFQ it held during the calendar year. The RQE is not required to 
submit an annual report for any calendar year in which it did not hold 
any halibut QS or RFQ.
    (2) Time limits and submittal. By January 31, the RQE must submit a 
complete annual report for the prior calendar year to the North Pacific 
Fishery Management Council, 605 West 4th Ave., Suite 306, Anchorage, AK 
99501-2252, and to NMFS-Alaska Regional Administrator, P.O. Box 21668, 
Juneau, AK 99802-1668.
    (3) Complete annual report. A complete annual report contains all 
general report requirements described in paragraphs (v)(4)(i) through 
(v)(4)(iv) of this section, and all information specific to IFQ 
regulatory areas 2C and 3A described in paragraphs (v)(5)(i) through 
(v)(5)(iii) of this section.
    (4) General report requirements. The RQE must annually report the 
following information:
    (i) Any changes to the bylaws, board of directors, or other key 
management personnel of the RQE from the preceding year;
    (ii) Amount and description of annual administrative expenses;
    (iii) Amount and description of funds spent on conservation and 
research, including a summary of the results of those expenditures; and
    (iv) Amount and description of all other expenses incurred by the 
RQE.
    (5) Information by IFQ regulatory area. For each IFQ regulatory 
area represented by the RQE, the RQE must annually report the following 
information:
    (i) The total amount of halibut QS by category and blocks held by 
the RQE at the start of the calendar year, on October 1, and at the end 
of the calendar year;
    (ii) A list of all transfers (purchases or sales) of halibut QS, 
including the transaction price; and
    (iii) A description of the number of charter halibut permits and 
number of angler endorsements purchased and held by the RQE.
0
7. In Sec.  679.7, add paragraph (f)(3)(i)(C) to read as follows:


Sec.  679.7  Prohibitions.

* * * * *
    (f) * * *
    (3) * * *
    (i) * * *
    (C) Use fixed gear as defined in Sec.  679.2 to retain halibut RFQ.
* * * * *
0
8. In Sec.  679.40:
0
a. Revise paragraph (b);
0
b. Revise paragraph (c) heading and paragraph (c)(2);
0
c. Add paragraphs (c)(4) and (g)(2)(iii);
0
d. Revise paragraph (h)(3) introductory text; and
0
e. Add paragraph (h)(3)(iii) to read as follows:


Sec.  679.40  Sablefish and halibut QS.

* * * * *
    (b) Annual allocation of IFQ and RFQ. The Regional Administrator 
shall assign halibut or sablefish IFQs to each person, except the RQE, 
holding unrestricted QS halibut or sablefish, respectively, up to the 
limits prescribed in Sec.  679.42(e) and (f). Each assigned IFQ will be 
specific to an IFQ regulatory area and vessel category, and will 
represent the maximum amount of halibut or sablefish that may be 
harvested from the specified IFQ regulatory area and by the person to 
whom it is assigned during the specified fishing year, unless the IFQ 
assignment is changed by the Regional Administrator within the fishing 
year because of an approved transfer or because all or part of the IFQ 
is sanctioned for violating rules of this part. The Regional 
Administrator shall assign RFQ to the RQE pursuant to paragraph (c)(4) 
of this section.
    (c) Calculation of annual IFQ and RFQ allocations.
* * * * *
    (2) QS amounts. For purposes of calculating IFQs and RFQ for any 
fishing year, the amount of a person's QS and the amount of the QS pool 
for any IFQ regulatory area will be the amounts on record with the 
Alaska Region, NMFS, on January 15 of that year.
* * * * *
    (4) RFQ allocation to RQE--(i) RQE QS amounts. For purposes of 
calculating RFQ for any fishing year, the amount of halibut QS held by 
the RQE for either IFQ regulatory area 2C or 3A for the corresponding 
IFQ regulatory area will be the amounts on record with the Alaska 
Region, NMFS on October 1 of the year prior.
    (ii) Calculation of RFQ. The annual allocation of RFQ halibut to an 
RQE (person r) in IFQ regulatory area 2C or 3A (area a) will be equal 
to the product of the annual commercial catch limit as defined in Sec.  
300.61 of this title, and the QS held by the RQE (specified in 
paragraph (c)(4)(i) of this section) divided by the QS pool for that 
area (specified in paragraph (c)(2) of this section). No overage or 
underage adjustments will be applied to the RQE's annual RFQ. Expressed 
algebraically, the annual RFQ halibut allocation formula is as follows:

RFQra = [fixed gear TACa x (QSra/QS 
poola)]

    (iii) Excess RFQ. NMFS will not issue the RQE any excess RFQ. 
Excess RFQ is the difference between the amount of RFQ based on the QS 
held by the RQE and the amount of RFQ needed to provide charter fishery 
management measures that are equivalent to unguided recreational 
fishery management measures. If the annual management measures 
published

[[Page 46031]]

pursuant to Sec.  300.62 of this title specify charter fishery 
management measures that are equivalent to the unguided recreational 
management measures, NMFS will:
    (A) Calculate the annual allocation of halibut RFQ to the RQE as 
specified in paragraph (c)(4)(ii) of this section;
    (B) Determine the amount of RFQ needed to supplement the annual 
guided sport catch limit from the CSP in Area 2C and Area 3A (described 
in Sec.  300.65(c)) to account for charter fishery harvests under the 
charter fishery management measures specified in the annual management 
measures and issue that amount of RFQ to the RFQ permit account.
    (C) Calculate the amount of excess RFQ by subtracting the amount of 
RFQ issued as determined in paragraph (c)(4)(iii)(B) of this section 
from the annual calculation of RFQ halibut to the RQE as calculated in 
paragraph (c)(4)(iii)(A) of this section.
    (iv) Redistribution of excess RFQ. Excess pounds of RFQ will be 
redistributed as IFQ as follows:
    (A) 50 percent to all catcher vessel QS holders in the applicable 
area who held not more than 32,333 QS units in Area 2C, and 47,469 QS 
units in Area 3A in the current calendar year and in the calendar year 
prior to the redistribution, in proportion to their QS holdings; and
    (B) 50 percent divided equally among all CQEs that held halibut QS 
in the applicable IFQ regulatory area (Area 2C or Area 3A) in the 
current calendar year and in the calendar year prior to the 
redistribution. If no CQE held QS in the applicable IFQ regulatory area 
(Area 2C and Area 3A) in the current calendar year and in the calendar 
year prior to the redistribution, that RFQ will not be redistributed as 
IFQ and will not be available for use by any CQE, IFQ permit holder, or 
RQE in that calendar year.
* * * * *
    (g) * * *
    (2) * * *
    (iii) The fish will not be calculated as part of the recreational 
harvest of halibut and will not be debited against the RFQ permit 
account or the annual guided sport catch limit as defined in Sec.  
300.61 of this title.
* * * * *
    (h) * * *
    (3) Source of debit. NMFS will use the following sources (see 
paragraphs (h)(3)(i), (ii) and (iii) of this section) of information to 
debit a CDQ halibut, IFQ halibut, IFQ sablefish, or RFQ permit account:
* * * * *
    (iii) All annual RFQ halibut issued to an RQE will be considered 
landed in the year for which it is issued.
0
9. In Sec.  679.41:
0
a. Redesignate paragraph (c)(11) as (c)(12);
0
b. Add new paragraph (c)(11);
0
c. Revise paragraphs (d)(1) and (g)(1); and
0
d. Add paragraphs (g)(9) through (11), and (n) to read as follows:


Sec.  679.41  Transfer of quota shares and IFQ.

* * * * *
    (c) * * *
    (11) If the person applying to receive or transfer QS is an RQE, 
the following determinations are required:
    (i) The RQE applying to receive or transfer QS, has submitted the 
timely and complete annual report required by Sec.  679.5(v);
    (ii) The RQE applying to receive QS is eligible to hold QS on 
behalf of the charter halibut sector in IFQ regulatory area 2C or 3A; 
and
    (iii) The RQE applying to receive QS has received notification of 
approval of eligibility to receive QS on behalf of the charter halibut 
sector in IFQ regulatory area 2C or 3A as described in paragraph (d)(1) 
of this section.
* * * * *
    (d) * * *
    (1) Application for Eligibility. All persons applying to receive QS 
or IFQ must submit an Application for Eligibility to Receive QS/IFQ 
(Application for Eligibility) containing accurate information to the 
Regional Administrator. An Application for Eligibility to Receive QS/
IFQ (Application for Eligibility) is not required for a CQE if a 
complete application to become a CQE, as described in paragraph (l)(3) 
of this section, has been approved by the Regional Administrator on 
behalf of an eligible community. An Application for Eligibility to 
Receive QS/IFQ (Application for Eligibility) is not required for the 
RQE if a complete application to become an RQE, as described in 
paragraph (n)(2) of this section, has been approved by the Regional 
Administrator. The Regional Administrator will not approve a transfer 
of IFQ or QS to a person until the Application for Eligibility for that 
person is approved by the Regional Administrator. The Regional 
Administrator will provide an Application for Eligibility form to any 
person on request.
* * * * *
    (g) * * *
    (1) Except as provided in paragraph (f), paragraph (g)(2), 
paragraph (l), or paragraph (n) of this section, only persons who are 
IFQ crew members, or who were initially issued QS assigned to vessel 
categories B, C, or D, and meet the eligibility requirements in this 
section, may receive by transfer QS assigned to vessel categories B, C, 
or D, or the IFQ resulting from it.
* * * * *
    (9) For transfers of QS to an RQE, the RQE may only receive halibut 
QS that is assigned to IFQ regulatory area 2C or 3A.
    (10) For transfers of QS from an RQE:
    (i) Quota category and block designations at time of purchase by an 
RQE are retained if QS is transferred to an eligible QS holder for use 
in the IFQ program.
    (ii) NMFS will not issue any IFQ from any QS transferred from an 
RQE to a QS holder for use in the IFQ program for a calendar year if 
that QS resulted in the issuance of RFQ to an RQE during that calendar 
year.
    (11) RQE eligibility. (i) To maintain eligibility as the RQE 
authorized by NMFS, the RQE must be a non-profit entity incorporated 
under the laws of the State of Alaska and recognized as exempt from 
federal income tax by the Internal Revenue Service as required by 
paragraph (n)(1)(i) of this section.
    (ii) If the Regional Administrator determines the RQE approved by 
NMFS does not meet the requirement specified in in paragraph (n)(1)(i) 
of this section, NMFS will notify the RQE of the Regional 
Administrator's determination and specify that the RQE has 60 days to 
meet the requirement in paragraphs (n)(1)(i) of this section to 
maintain eligibility as the RQE authorized by NMFS.
    (iii) If the RQE demonstrates to NMFS within 60 days of 
notification that it meets the requirement in paragraphs (n)(1)(i) of 
this section, NMFS will notify the RQE that it remains the authorized 
RQE.
    (iv) If the RQE does not demonstrate to NMFS within 60 days of 
notification that it meets the requirement in paragraphs (n)(1)(i) of 
this section, NMFS will issue an initial administrative determination 
(IAD):
    (A) Revoking authorization of the RQE;
    (B) Disallowing the RQE from receiving any QS by transfer;
    (C) Requiring the CQE to divest of any QS that it holds; and
    (D) Withholding the issuance of RFQ based on any QS that the RQE 
holds.
    (v) The RQE would have the opportunity to appeal the IAD through 
the National Appeals Office under the

[[Page 46032]]

provisions established at 15 CFR part 906.
* * * * *
    (n) Transfer of halibut QS to an RQE--(1) RQE Organizational 
Structure. (i) The RQE will be a single entity representing IFQ 
regulatory Areas 2C and 3A.
    (ii) The RQE will be a non-profit entity incorporated under the 
laws of the State of Alaska and recognized as exempt from federal 
income tax by the Internal Revenue Service; and
    (iii) The RQE will submit an annual report to NMFS and the Council 
detailing RQE activities during the prior year according to Sec.  
679.5(v).
    (2) Application for Eligibility. Prior to initially receiving QS by 
transfer, a non-profit entity that intends to participate in the 
Halibut IFQ Program and purchase and hold halibut QS in Area 2C and 
Area 3A as the RQE must have approval from the Regional Administrator. 
To receive that approval, the non-profit entity seeking to become an 
RQE must submit a complete ``Application for a Non-Profit Entity to be 
Designated as a Recreational Quota Entity (RQE)'' (available on the 
NMFS Alaska Region Web site at https://alaskafisheries.noaa.gov/). NMFS 
will approve only one entity as the RQE. A complete application to 
become an RQE must include:
    (i) The articles of incorporation under the laws of the State of 
Alaska for that non-profit entity;
    (ii) Acknowledgement from the Internal Revenue Service that the 
non-profit entity is exempt from federal income tax under section 
501(a) of the Internal Revenue Code;
    (iii) Management organization information, including:
    (A) The bylaws of the non-profit entity;
    (B) A list of key personnel of the managing organization including, 
but not limited to, the RQE board of directors, officers, 
representatives, and any managers;
    (C) A description of how the non-profit entity is qualified to 
manage QS on behalf of charter fishery participants and a demonstration 
that the non-profit entity has the management, technical expertise, and 
ability to manage QS and RFQ;
    (D) The name of the non-profit organization, taxpayer ID number, 
NMFS person number, permanent business mailing addresses, name of 
contact persons and additional contact information of the managing 
personnel for the non-profit entity, resumes of management personnel, 
name and notarized signature of applicant, and Notary Public signature 
and date when commission expires;
    (iv) A statement describing the procedures that will be used to 
determine the acquisition of funds to purchase QS.
    (3) Address for submittal of application: Regional Administrator, 
NMFS, P.O. Box 21668, Juneau, AK 99802.
    (4) Approval. NMFS will approve the first complete application 
received. If an application is approved, NMFS will notify the RQE by 
mail, unless another mode of communication is requested on the 
application.
    (5) Disapproval. If an application is disapproved, that 
determination may be appealed under the provisions established at 15 
CFR part 906.
0
10. In Sec.  679.42:
0
a. Add paragraph (a)(2)(v);
0
b. Revise paragraph (f)(1) introductory text; and
0
c. Add paragraphs (f)(8) and (g)(1)(iii) to read as follows:


Sec.  679.42  Limitations on use of QS and IFQ.

    (a) * * *
    (2) * * *
    (v) In IFQ regulatory areas 2C and 3A, RFQ held by an RQE may be 
harvested aboard charter vessels as defined at 50 CFR 300.61 of any 
size, regardless of the QS category from which that RFQ originated.
* * * * *
    (f) * * *
    (1) Unless the amount in excess of the following limits was 
received in the initial allocation of halibut QS, no person other than 
a CQE representing the community of Adak, AK, individually or 
collectively, or an RQE, may use more than:
* * * * *
    (8) RQE use limits--(i) Annual transfer limits. The RQE may not 
receive by transfer more than 594,774 units of Area 2C halibut QS and 
more than 2,218,716 units of Area 3A halibut QS in a year.
    (ii) Cumulative use limits. The RQE may not hold more than 
5,947,740 units of Area 2C halibut QS and more than 22,187,161 units of 
Area 3A halibut QS.
    (iii) Vessel category restrictions. (A) The RQE may not hold more 
than 889,548 units of halibut QS in IFQ regulatory area 2C that is 
assigned to vessel category D.
    (B) The RQE may not hold halibut QS in IFQ regulatory area 3A that 
is assigned to vessel category D.
    (C) The RQE may not hold more than 265,524 units of halibut QS that 
is assigned to vessel category B in IFQ regulatory area 2C.
    (g) * * *
    (1) * * *
    (iii) The RQE is limited to receiving:
    (A) Transfers of halibut QS blocks of less than or equal to 24,250 
quota share units in IFQ regulatory area 2C.
    (B) Transfers of halibut QS blocks of less than or equal to 35,620 
quota share units in IFQ regulatory area 3A.
* * * * *
0
11. In Sec.  679.45:
0
a. Revise paragraphs (a)(1), (a)(2)(i) introductory text, and 
(a)(2)(i)(A);
0
b. Add paragraphs (a)(2)(i)(B)(3) and (a)(2)(i)(D); and
0
c. Revise paragraphs (a)(3), (a)(4)(i), (b)(1), and (f)(2) to read as 
follows:


Sec.  679.45  IFQ cost recovery program.

    (a) * * *
    (1) Responsibility. An IFQ permit holder is responsible for cost 
recovery fees for landings of his or her IFQ halibut and sablefish, 
including any halibut landed as guided angler fish (GAF), as defined in 
Sec.  300.61 of this title, derived from his or her IFQ accounts. An 
RQE is responsible for cost recovery fees for all RFQ issued to the 
RQE. An IFQ permit holder or RQE must comply with the requirements of 
this section.
    (2) * * *
    (i) General. IFQ fee liability means a cost recovery liability 
based on either the value of all landed IFQ and GAF derived from the 
permit holder's IFQ permit(s), or the value of all RFQ issued to an 
RQE.
    (A) Each year, the Regional Administrator will issue each IFQ 
permit holder a summary of his or her IFQ equivalent pounds landed as 
IFQ and GAF and will issue an RQE a summary of its RFQ pounds issued as 
part of the IFQ Landing and Estimated Fee Liability page described at 
Sec.  679.5(l)(7)(ii)(D).
    (B) * * *
    (3) All RFQ issued to an RQE in IFQ regulatory area 2C or 3A will 
be assessed at the IFQ regulatory area 2C or 3A IFQ standard ex-vessel 
value.
* * * * *
    (D) An RQE may not challenge the standard ex-vessel value used to 
determine the fee liability for all RFQ issued to the RQE.
* * * * *
    (3) Fee Collection. (i) An IFQ permit holder with IFQ and/or GAF 
landings is responsible for collecting his or her own fee during the 
calendar year in which the IFQ fish and/or GAF are landed.
    (ii) An RQE is responsible for collecting its own fees during the 
calendar year in which the RFQ is issued to the RQE.

[[Page 46033]]

    (4) * * *
    (i) Payment due date. An IFQ permit holder or RQE must submit its 
IFQ fee liability payment(s) to NMFS at the address provided at 
paragraph (a)(4)(iii) of this section not later than January 31 of the 
year following the calendar year in which the IFQ or GAF landings were 
made or the RFQ was issued to the RQE.
    (b) * * *
    (1) General. (i) An IFQ permit holder must use either the IFQ 
actual ex-vessel value or the IFQ standard ex-vessel value when 
determining the IFQ fee liability based on ex-vessel value, except that 
landed GAF are assessed at the standard ex-vessel values derived by 
NMFS. An IFQ permit holder must base all fee liability calculations on 
the ex-vessel value that correlates to landed IFQ in IFQ equivalent 
pounds.
    (ii) An RQE must use the IFQ standard ex-vessel value derived by 
NMFS for all RFQ issued to the RQE.
* * * * *
    (f) * * *
    (2) After the expiration of the 30-day period, the Regional 
Administrator will evaluate any additional documentation submitted by 
an IFQ permit holder or RQE in support of its payment. If the Regional 
Administrator determines that the additional documentation does not 
meet the burden of proving the payment is correct, the Regional 
Administrator will send the IFQ permit holder or RQE an IAD indicating 
that the IFQ permit holder or RQE did not meet the burden of proof to 
change the IFQ fee liability as calculated by the Regional 
Administrator based upon the IFQ standard ex-vessel value. The IAD will 
set out the facts and indicate the deficiencies in the documentation 
submitted by the IFQ permit holder or RQE. An IFQ permit holder or RQE 
who receives an IAD may appeal the IAD, as described in paragraph (h) 
of this section.
* * * * *


Sec. Sec.  679.41 and 679.45   [Amended]

0
12. In the table below, for each section indicated in the ``Location'' 
column, remove the title indicated in the ``Remove'' column from 
wherever it appears in the section, and add the title indicated in the 
``Add'' column:

----------------------------------------------------------------------------------------------------------------
               Location                                  Remove                                 Add
----------------------------------------------------------------------------------------------------------------
Sec.   679.41(l)(3) introductory       50 CFR 679.43                               15 CFR part 906
 text, and (l)(3)(v)(E)(3).
Sec.   679.41(m)(5)(ii)..............  Sec.   679.43                               15 CFR part 906
Sec.   679.45(b)(2)..................  landed as GAF.                              landed as GAF or issued as
                                                                                    RFQ.
Sec.   679.45(b)(3)(ii)..............  landed GAF                                  landed GAF and RFQ issued to
                                                                                    an RQE.
Sec.   679.45(b)(3)(v) introductory    aggregated IFQ regulatory area 2C or 3A,    aggregated by IFQ regulatory
 text.                                  to GAF landings.                            area 2C or 3A, to GAF
                                                                                    landings and RFQ issued to
                                                                                    an RQE.
Sec.   679.45(d)(2)(i)(A) and (B)....  IFQ and GAF                                 IFQ, RFQ, and GAF
Sec.   679.45(d)(2)(i)(C)............  include GAF costs.                          include RQE and GAF costs.
Sec.   679.45(d)(2)(ii)..............  as commercial catch or as GAF               as commercial catch, RFQ, or
                                                                                    GAF
Sec.   679.45(d)(4)..................  IFQ and GAF                                 IFQ, RFQ, and GAF
Sec.   679.45(d)(4), (e)(1)            IFQ permit holder                           IFQ permit holder or RQE
 introductory text, (e)(1)(ii), and
 (f)(1)(i).
Sec.   679.45(e)(1)(i), and            IFQ permit holder                           IFQ permit holder or RQE
 (e)(1)(ii).
Sec.   679.45(e)(1)(i)...............  the IFQ permit holder's estimated fee       the estimated fee liability
                                        liability
Sec.   679.45(e)(2)..................  IFQ fishing permit held                     IFQ fishing permit or RFQ
                                                                                    permit account held
Sec.   679.45(e)(2), (f)(1)(ii), and   IFQ permit holder                           IFQ permit holder or RQE
 (f)(5).
Sec.   679.45(f)(1) introductory text  IFQ permit holder has                       IFQ permit holder or RQE has
Sec.   679.45(f)(3)..................  Sec.   679.43                               15 CFR part 906
Sec.   679.45(f)(4)..................  the IFQ permit holder must pay              the IFQ permit holder or RQE
                                                                                    must pay
Sec.   679.45(g).....................  IFQ permit holder unless the permit holder  IFQ permit holder or RQE
                                        requests                                    unless the IFQ permit holder
                                                                                    or RQE requests
Sec.   679.45(g).....................  IFQ permit holder's                         IFQ permit holder's or RQE's
Sec.   679.45(h).....................  Sec.   679.43                               15 CFR part 906
----------------------------------------------------------------------------------------------------------------

[FR Doc. 2017-20894 Filed 10-2-17; 8:45 am]
BILLING CODE 3510-22-P



                                                      46016                  Federal Register / Vol. 82, No. 190 / Tuesday, October 3, 2017 / Proposed Rules

                                                      DEPARTMENT OF COMMERCE                                  individual, or received after the end of              fishing for halibut and vessels in the
                                                                                                              the comment period, may not be                        charter fishery in IPHC Regulatory Areas
                                                      National Oceanic and Atmospheric                        considered by NMFS. All comments                      2C (Southeast Alaska) and Areas 3A
                                                      Administration                                          received are a part of the public record              (South Central Alaska) may be found in
                                                                                                              and will generally be posted for public               sections 3, 25, and 28 of that final rule
                                                      50 CFR Parts 300 and 679                                viewing on www.regulations.gov                        (82 FR 12730, March 7, 2017).
                                                      [Docket No. 161222999–7884–01]                          without change. All personal identifying                 The Halibut Act, at sections 773c(a)
                                                                                                              information (e.g., name, address),                    and (b), provides the Secretary of
                                                      RIN 0648–BG57                                           confidential business information, or                 Commerce with general responsibility to
                                                                                                              otherwise sensitive information                       carry out the Convention and the
                                                      Fisheries of the Exclusive Economic                     submitted voluntarily by the sender will              Halibut Act. In adopting regulations that
                                                      Zone Off Alaska; Authorize                              be publicly accessible. NMFS will                     may be necessary to carry out the
                                                      Recreational Quota Entity To                            accept anonymous comments (enter                      purposes and objectives of the
                                                      Participate in the Halibut IFQ Program                  ‘‘N/A’’ in the required fields if you wish            Convention and the Halibut Act, the
                                                      AGENCY:  National Marine Fisheries                      to remain anonymous).                                 Secretary of Commerce is directed to
                                                      Service (NMFS), National Oceanic and                       Electronic copies of the                           consult with the Secretary of the
                                                      Atmospheric Administration (NOAA),                      Environmental Assessment, Regulatory                  department in which the U.S. Coast
                                                      Commerce.                                               Impact Review (RIR), and the Initial                  Guard is operating, which is currently
                                                      ACTION: Proposed rule; request for                      Regulatory Flexibility Analysis (IRFA)                the Department of Homeland Security.
                                                      comments.                                               (collectively, Analysis) prepared for this               The Halibut Act, at section 773c(c),
                                                                                                              action are available from                             also provides the North Pacific Fishery
                                                      SUMMARY:    NMFS issues a proposed rule                 www.regulations.gov or from the NMFS                  Management Council (Council) with
                                                      that would authorize formation of a                     Alaska Region Web site at                             authority to develop regulations,
                                                      recreational quota entity (RQE) that                    alaskafisheries.noaa.gov.                             including limited access regulations,
                                                      could participate in the Pacific Halibut                   Written comments regarding the                     that are in addition to, and not in
                                                      and Sablefish Individual Fishing Quota                  burden-hour estimates or other aspects                conflict with, approved IPHC
                                                      Program in International Pacific Halibut                of the collection-of-information                      regulations. Regulations developed by
                                                      Commission Regulatory Areas 2C and                      requirements contained in this rule may               the Council may be implemented by
                                                      3A in the Gulf of Alaska. The RQE                       be submitted by mail to NMFS at the                   NMFS only after approval by the
                                                      would be authorized to purchase and                     above address; by email to OIRA_                      Secretary of Commerce. The Council has
                                                      hold a limited amount of commercial                     Submission@omb.eop.gov; or by fax to                  exercised this authority in the
                                                      halibut quota share that would yield                    202–395–5806.                                         development of halibut fishery
                                                      additional pounds of recreational                       FOR FURTHER INFORMATION CONTACT: Kurt                 management measures, codified at 50
                                                      fishing quota on an annual basis to                     Iverson, 907–586–7228, Kurt.Iverson@                  CFR parts 300.65, 300.66, and 300.67.
                                                      augment the amount of halibut available                 noaa.gov.                                             The Council also developed the
                                                      for harvest in the charter halibut fishery.             SUPPLEMENTARY INFORMATION:
                                                                                                                                                                    Individual Fishing Quota (IFQ) Program
                                                      The RQE would provide a mechanism                                                                             for the commercial halibut and sablefish
                                                      for a compensated reallocation of a                     Authority for Action                                  fisheries, codified at 50 CFR part 679.
                                                      portion of commercial halibut quota                        The International Pacific Halibut                  Management of halibut in the IFQ
                                                      share to the charter halibut fishery. This              Commission (IPHC) and NMFS manage                     Program is authorized under section 773
                                                      proposed rule is necessary to promote                   fishing for Pacific halibut (Hippoglossus             of the Halibut Act.
                                                      social and economic flexibility in the                  stenolepis) through regulations                       Management of the Halibut Fishery
                                                      charter halibut fishery, and is intended                established under authority of the
                                                      to promote the goals and objectives of                  Northern Pacific Halibut Act of 1982                  Description of the Action Area
                                                      the Northern Pacific Halibut Act of                     (Halibut Act). The IPHC adopts                           This proposed action would change
                                                      1982, and other applicable laws.                        regulations governing the Pacific halibut             halibut fishery management in IPHC
                                                      DATES: Submit comments on or before                     (halibut) fishery under the Convention                Regulatory Areas 2C and 3A. These
                                                      November 17, 2017.                                      between the United States and Canada                  regulatory areas are referred to as ‘‘IFQ
                                                      ADDRESSES: You may submit comments                      for the Preservation of the Halibut                   Regulatory Areas’’ throughout the IFQ
                                                      on this document, identified by NOAA–                   Fishery of the North Pacific Ocean and                Program regulations at 50 CFR part 679
                                                      NMFS–2016–0158, by any of the                           Bering Sea (Convention), signed at                    and as ‘‘Commission Regulatory Areas’’
                                                      following methods:                                      Ottawa, Ontario, on March 2, 1953, as                 throughout the halibut management
                                                         • Electronic Submission: Submit all                  amended by a Protocol Amending the                    regulations at 50 CFR parts 300.65,
                                                      electronic public comments via the                      Convention (signed at Washington, DC,                 300.66, and 300.67. These terms are
                                                      Federal e-Rulemaking Portal. Go to                      on March 29, 1979). For the United                    synonymous with ‘‘IPHC Regulatory
                                                      www.regulations.gov/                                    States, regulations developed by the                  Areas’’ and may be used
                                                      #!docketDetail;D=NOAA-NMFS-2016-                        IPHC are subject to acceptance by the                 interchangeably throughout this
                                                      0158, click the ‘‘Comment Now!’’ icon,                  Secretary of State with concurrence                   document. This preamble uses the term
                                                      complete the required fields, and enter                 from the Secretary of Commerce. After
asabaliauskas on DSKBBXCHB2PROD with PROPOSALS




                                                                                                                                                                    ‘‘Area 2C’’ and ‘‘Area 3A’’ to refer to
                                                      or attach your comments.                                acceptance by the Secretary of State and              IPHC Regulatory Areas 2C and 3A,
                                                         • Mail: Submit written comments to                   the Secretary of Commerce, NMFS                       respectively. Additional information on
                                                      Glenn Merrill, Assistant Regional                       publishes the IPHC regulations in the                 the action area is provided in Section
                                                      Administrator, Sustainable Fisheries                    Federal Register as annual management                 2.3 of the Analysis.
                                                      Division, Alaska Region NMFS, Attn:                     measures pursuant to 50 CFR 300.62.
                                                      Ellen Sebastian. Mail comments to P.O.                  The final rule implementing IPHC                      Background on the Halibut Fishery
                                                      Box 21668, Juneau, AK 99802–1668.                       regulations for the 2017 fishing season                 The harvest of halibut in Alaska
                                                         Instructions: Comments sent by any                   was published March 7, 2017 (82 FR                    occurs in three fisheries—the
                                                      other method, to any other address or                   12730). IPHC regulations affecting sport              commercial, sport, and subsistence


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                                                                             Federal Register / Vol. 82, No. 190 / Tuesday, October 3, 2017 / Proposed Rules                                          46017

                                                      fisheries. The commercial halibut                       CSP are summarized below and                             In Area 3A, a two-fish daily bag limit
                                                      fishery is managed under the IFQ                        described in more detail in Section 4.4               with no size limits was maintained until
                                                      Program. The sport fishery includes                     of the Analysis.                                      the CSP went into effect in 2014. Since
                                                      unguided and guided anglers. Guided                                                                           2014, the Area 3A charter fishery has
                                                                                                              Historic and Current Management
                                                      anglers are commonly called ‘‘charter’’                                                                       continued to be managed under a two-
                                                                                                              Measures for the Charter Fishery                      fish daily bag limit, but management
                                                      anglers because they fish from chartered
                                                      vessels. Throughout this preamble, the                     The CHLAP and CSP were developed                   measures have become increasingly
                                                      term ‘‘charter fishery’’ is used to refer to            in response to increasing harvests in the             restrictive each year to maintain charter
                                                      the fishery prosecuted by guided                        charter fisheries in Areas 2C and 3A                  fishery harvests within the CSP
                                                      anglers. The subsistence fishery                        over the past 20 years. Until 2003,                   allocation. In 2017, the charter fishery
                                                      provides an opportunity for rural                       charter and unguided anglers were                     in Area 3A has a catch limit of
                                                      residents and members of an Alaska                      managed under the same two-halibut                    1,890,000 pounds and is managed under
                                                      Native tribe to retain halibut for                      daily bag limit in all IPHC Regulatory                a two-fish daily bag limit with a 28-inch
                                                      personal use or customary trade. The                    Areas in Alaska. Since 2003, charter                  maximum size limit on one fish; a 4-fish
                                                      following sections of the preamble                      management measures have become                       annual limit for each charter fishery
                                                      summarize charter fishery management                    more restrictive in Areas 2C and 3A,                  angler; closures to charter fishing on
                                                      and aspects of the commercial IFQ                       where most charter fishing occurs, as                 Wednesdays throughout the year;
                                                      fishery that are relevant for the                       NMFS and the IPHC have sought to                      closures to charter fishing during three
                                                      proposed RQE Program.                                   limit charter harvests to specific harvest            specific Tuesdays in the summer; a limit
                                                                                                              limits. In 2003, NMFS implemented a                   of only one charter trip per day per
                                                      Charter Halibut Fishery
                                                                                                              final rule to establish a guideline                   vessel (and per charter halibut permit);
                                                         Sport fishing activities for halibut in              harvest level (GHL) that identified target            and a prohibition on the harvest of
                                                      Areas 2C and 3A are subject to different                harvest limits for the charter fishery in             halibut by skippers or crew. Charter
                                                      regulations, depending on whether                       Areas 2C and 3A (68 FR 47256, August                  management measures for Area 3A are
                                                      those activities are guided or unguided.                                                                      summarized in Table 4–11 of the
                                                                                                              8, 2003). After the GHL was
                                                      Guided sport fishing (charter fishing) for                                                                    Analysis.
                                                                                                              implemented, NMFS and the IPHC
                                                      halibut is subject to charter restrictions
                                                                                                              implemented a variety of additional                   Charter Halibut Limited Access Program
                                                      under Federal regulations that are
                                                                                                              management measures in Areas 2C and                   (CHLAP)
                                                      generally more restrictive than the
                                                                                                              3A in an effort to constrain charter
                                                      regulations for unguided anglers.                                                                                NMFS implemented the CHLAP in
                                                                                                              fishery harvests to the harvest limits
                                                      Charter fishery regulations apply if a                                                                        January 2010 (75 FR 554, January 5,
                                                                                                              established by the GHL. Section 4.4.2.2
                                                      charter vessel guide is providing                                                                             2010). The CHLAP established Federal
                                                                                                              of the Analysis describes historical
                                                      assistance, for compensation, to a                                                                            charter halibut permits (CHPs) that are
                                                                                                              catch limits, regulations, and harvest in             required for operators in the charter
                                                      person who is sport fishing, to take or
                                                      attempt to take fish during any part of                 the charter fisheries in Areas 2C and 3A.             halibut fishery in Areas 2C and 3A.
                                                      a charter vessel fishing trip. Unguided                    In Area 2C, charter anglers have only              NMFS determined the eligibility of
                                                      anglers typically use their own vessels                 been allowed to harvest a bag limit of                applicants and issued CHPs in 2010.
                                                      and equipment, or they may rent a                       one halibut per person, per day since                 CHPs were required for participation in
                                                      vessel and fish with no assistance from                 2009. Implementation of a one-halibut                 the charter halibut fishery beginning in
                                                      a guide.                                                daily bag limit was intended to keep                  2011. NMFS implemented the CHLAP,
                                                         Over the years, the Council and                      charter fishery harvests to                           based on recommendations by the
                                                      NMFS have developed specific                            approximately the Area 2C GHL. In the                 Council, to meet allocation objectives in
                                                      management programs for the charter                     years following implementation of the                 the charter halibut fishery. Specifically,
                                                      fishery to achieve allocation and                       one-fish bag limit, additional                        this program provides stability in the
                                                      conservation objectives. The Council                    restrictions were required to maintain                fishery by limiting the number of
                                                      and NMFS have developed these                           harvest near the Area 2C GHL, including               charter vessels that may participate in
                                                      management programs with the intent of                  a prohibition on halibut harvest by                   Areas 2C and 3A. The CHLAP also
                                                      maintaining stability and economic                      charter captains and crew, limits on the              issues a limited number of permits to
                                                      viability in the charter fishery by                     maximum number of lines that could be                 non-profit corporations representing
                                                      establishing: (1) Limits on the number of               deployed, maximum size limits, and                    specified rural communities and to U.S.
                                                      charter vessel operators; (2) allocations               beginning in 2012, a reverse slot limit               military morale programs for service
                                                      of halibut to the charter fishery that vary             that allows charter vessel anglers to                 members.
                                                      with abundance; and (3) a process for                   retain halibut that are either below or                  Since implementation of the CHLAP,
                                                      determining annual charter angler                       above a specific size range. With the                 all vessel operators in Areas 2C and 3A
                                                      harvest restrictions to limit charter                   implementation of the CSP in 2014,                    with charter anglers on board must have
                                                      fishery harvest to the established                      charter fishery management became                     an original, valid permit on board
                                                      allocations.                                            more restrictive in Area 2C to maintain               during every charter vessel fishing trip
                                                         The charter fisheries in Areas 2C and                charter fishery harvests within the Area              on which halibut are caught and
                                                      3A are currently managed under the                      2C CSP allocations. In 2017, the charter              retained. CHPs are endorsed for the
                                                      Charter Halibut Limited Access Program                  fishery in Area 2C has a catch limit of               appropriate IPHC Regulatory Area (Area
asabaliauskas on DSKBBXCHB2PROD with PROPOSALS




                                                      (CHLAP) and the Catch Sharing Plan                      915,000 pounds and is managed under                   2C or Area 3A) and the maximum
                                                      (CSP). The CHLAP limits the number of                   a one-fish daily bag limit with a reverse             number of anglers that may catch and
                                                      operators in the charter fishery, while                 slot limit that allows retention of a                 retain halibut on a charter vessel fishing
                                                      the CSP establishes annual allocations                  halibut of 44 inches or less, or 80 inches            trip, ranging from 4 to 38 anglers.
                                                      to the charter and commercial fisheries                 or more, and a prohibition on the                        Complete regulations for the CHLAP
                                                      and describes a process for determining                 harvest of halibut by skippers or crew.               are published at §§ 300.65, 300.66, and
                                                      annual management measures to limit                     Charter management measures for Area                  300.67. Additional details on the
                                                      charter harvest to the allocations in each              2C are summarized in Table 4–10 of the                development and rationale for the
                                                      management area. The CHLAP and the                      Analysis.                                             CHLAP can be found in the proposed


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                                                      46018                  Federal Register / Vol. 82, No. 190 / Tuesday, October 3, 2017 / Proposed Rules

                                                      rule for the CHLAP (74 FR 18178, April                  percentage allocation to each fishery                 be retained (e.g., day of week closures,
                                                      21, 2009).                                              varies with halibut abundance and                     or prohibition on harvest by skipper and
                                                                                                              differs between Areas 2C and 3A.                      crew). After reviewing this analysis, the
                                                      Catch Sharing Plan for IPHC Regulatory
                                                                                                              Overall, the charter fishery’s relative               Charter Committee makes
                                                      Areas 2C and 3A
                                                                                                              share of the CCL is higher when the CCL               recommendations on possible
                                                         The CSP was implemented by NMFS                      is lower, but lower when the CCL is                   management measures for Areas 2C and
                                                      in January 2014 (78 FR 75844, December                  higher. At current levels of abundance,               3A to be analyzed for the coming year.
                                                      12, 2013). The CSP replaced the GHL                     the charter fishery is allocated                         In December of each year, the Council
                                                      that was in place from 2004 through                     approximately 18 percent of the CCLs                  considers the recommendations of the
                                                      2013 for managing the charter fisheries                 for both Areas 2C and 3A, and the                     Charter Committee, the analysis on
                                                      in Areas 2C and 3A. The CSP                             commercial IFQ fishery is allocated                   projected charter harvests under a range
                                                      establishes commercial IFQ and charter                  approximately 82 percent. The IPHC                    of management measures, and any
                                                      fishery allocations that vary                           multiplies the CSP allocation                         additional information. After
                                                      proportionally with changing levels of                  percentages for Area 2C and 3A by the                 considering public input, the Council
                                                      annual halibut abundance and that are                   annual CCL in that area to calculate the              selects management measures to
                                                      intended to balance the differing needs                 commercial and charter halibut                        recommend to the IPHC that are
                                                      of the commercial IFQ and charter                       allocations in net pounds. Fishery-                   intended to keep charter harvest within
                                                      fisheries over a wide range of halibut                  specific catch limits are calculated by               the charter fishery allocation in Area 2C
                                                      abundance in Areas 2C and 3A. Under                     deducting separate estimates of wastage               and Area 3A under a range of different
                                                      the CSP, the IPHC divides a combined                    (i.e., the mortality of discarded fish)               CCLs that may be established by the
                                                      catch limit for Areas 2C and 3A into                    from the commercial IFQ and charter                   IPHC.
                                                      separate annual catch limits for the                    fishery allocations (see Figure 4–1 of the               At its annual meeting in January of
                                                      commercial IFQ and charter halibut                      Analysis). NMFS publishes the CCLs                    each year, the IPHC allocates the CCL
                                                      fisheries pursuant to the CSP’s                         and associated allocations in the                     for Area 2C and Area 3A between the
                                                      allocation formulas.                                    Federal Register as part of the IPHC                  commercial IFQ fishery and the charter
                                                         The CCLs for Areas 2C and 3A are                     annual management measures pursuant                   fishery for that year based on the CSP
                                                      specified by the IPHC during an                         to 50 CFR 300.62. The process for                     regulations at 50 CFR 300.65. The IPHC
                                                      iterative process that takes place each                 determining commercial IFQ and                        takes into account Council
                                                      year. In late November of each year, the                charter catch limits under the CSP is                 recommendations, any additional
                                                      IPHC begins the process of assessing the                described in more detail in Section                   information available to the IPHC, and
                                                      halibut resource, and provides a                        4.4.1.2.1 of the Analysis.                            input from the public and IPHC staff.
                                                      preliminary estimate of exploitable                        Additional detail on the development               After considering this information and
                                                      biomass of halibut. The exploitable                     and rationale for the CSP can be found                other information on the abundance of
                                                      biomass is the amount of halibut that                   in preamble for the CSP proposed rule                 the halibut resource in Areas 2C and 3A,
                                                      could be available for harvest by                       (78 FR 39122, June 28, 2013), and in the              the IPHC adopts CCLs for Areas 2C and
                                                      commercial, sport, and subsistence                      final rule implementing the CSP (78 FR                3A and charter halibut management
                                                      fisheries. The IPHC determines the                      75844, December 12, 2013).                            measures designed to keep charter
                                                      exploitable biomass using a                                                                                   harvest in Area 2C and Area 3A within
                                                      combination of harvest data from the                    Process for Setting Annual Management                 the catch limits specified under the CSP
                                                      commercial, sport, and subsistence                      Measures                                              for the adopted CCLs. Once accepted by
                                                      fisheries, and information collected                      The CSP also describes a public                     the Secretary of State with the
                                                      during scientific surveys and sampling                  process by which the Council develops                 concurrence of the Secretary of
                                                      of halibut bycatch in other fisheries. The              recommendations to the IPHC for                       Commerce, NMFS publishes in the
                                                      IPHC calculates the Total Constant                      charter angler harvest restrictions                   Federal Register the charter halibut
                                                      Exploitation Yield (CEY), or the target                 (annual management measures) that are                 management measures for each area as
                                                      level for total removals (in net pounds)                intended to limit harvest to the annual               part of the IPHC annual management
                                                      for each IPHC regulatory area, by                       charter fishery catch limit in Areas 2C               measures.
                                                      multiplying the estimate of exploitable                 and 3A. The process for setting annual
                                                      biomass by the harvest rate specified for               management measures is described in                   Guided Angler Fish Program
                                                      that IPHC regulatory area. For Areas 2C                 more detail in Section 4.4.1.2.2 of the                 In 2014, as part of the CSP, NMFS
                                                      and 3A, the IPHC subtracts estimates of                 Analysis. Key elements of the process                 implemented the Guided Angler Fish
                                                      other removals from the Total CEY.                      are summarized below.                                 (GAF) Program to authorize limited
                                                      Other removals include unguided sport                     Each year in October, the Council’s                 annual transfers of commercial halibut
                                                      harvest, subsistence harvest, and                       Charter Halibut Management Committee                  IFQ as GAF to qualified CHP holders.
                                                      bycatch of halibut in non-target                        (Charter Committee) reviews charter                   The GAF Program provides additional
                                                      commercial fisheries. In Areas 2C and                   harvest in Areas 2C and 3A during the                 harvest opportunities for charter
                                                      3A, the remaining CEY, after other                      current year in relation to the charter               anglers. Using GAF, qualified CHP
                                                      removals are subtracted, is the Fishery                 catch limit. Staff from the Alaska                    holders may offer charter anglers the
                                                      CEY. For Areas 2C and 3A, the Fishery                   Department of Fish and Game, Council,                 opportunity to retain halibut up to the
                                                      CEY is equal to the annual combined                     and NMFS provide an analysis to                       limit for unguided anglers when charter
asabaliauskas on DSKBBXCHB2PROD with PROPOSALS




                                                      catch limit for the commercial IFQ                      predict harvest for the upcoming year                 management measures limit charter
                                                      fishery and the charter fishery. This                   under a range of alternative                          anglers to a more restrictive harvest
                                                      process is depicted in Figure 4–1 of the                management measures. Some of these                    limit. For example, if charter
                                                      Analysis.                                               measures may directly restrict the                    management regulations in Area 2C
                                                         A fixed percentage of the annual CCLs                number or size of fish that may be                    restrict charter anglers to a one-halibut
                                                      for Area 2C and 3A is allocated to the                  retained (e.g., daily bag limits, trip                daily bag limit, a charter angler could
                                                      commercial IFQ and charter fisheries                    limits, annual limits, and size limits).              retain one halibut and use one GAF to
                                                      (for additional detail see Figures 4–3                  Some of these measures may indirectly                 retain a second halibut, bringing the
                                                      and 4–4 in the Analysis). The fixed                     restrict the number of halibut that may               retained amount to two halibut—the


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                                                                             Federal Register / Vol. 82, No. 190 / Tuesday, October 3, 2017 / Proposed Rules                                           46019

                                                      same daily bag limit that applies to                    intended to prevent a particular                      and when to fish, how much gear to
                                                      unguided anglers. The GAF Program is                    individual, corporation, or other entity              deploy, and how much overall
                                                      described in more detail in Section                     from acquiring an excessive share of                  investment to make in harvesting.
                                                      4.4.1.2.4 of the Analysis and in the                    halibut fishing privileges as GAF.                       The Council and NMFS developed the
                                                      proposed rule for the CSP (78 FR 39122,                   NMFS’ costs associated with                         IFQ Program with several goals in mind.
                                                      June 28, 2013). Regulations                             management, data collection, and                      Particularly applicable to this proposed
                                                      implementing the GAF Program are at                     enforcement of the GAF Program are                    action, the IFQ Program was designed to
                                                      §§ 300.65, 679.5, 679.41, 679.42, and                   recoverable through IFQ Program Cost                  preserve an owner-operated fleet and to
                                                      679.45. A brief summary of the key                      Recovery fees. The IFQ permit holder is               limit consolidation of QS ownership. To
                                                      elements of the GAF Program is                          responsible for paying IFQ Program Cost               accomplish these goals, the IFQ Program
                                                      provided below.                                         Recovery fees on all pounds of IFQ                    was designed to control transferability
                                                         In order to receive GAF, an IFQ                      landed as GAF. The fee calculation is                 of QS through: (1) Limits on the amount
                                                      holder and a CHP holder receiving GAF                   based on the standard price calculated                of QS that can be owned or controlled
                                                      must submit an application to NMFS for                  by NMFS, aggregated to IPHC                           by individuals and companies (QS
                                                      review and approval. Guided Angler                      Regulatory Area 2C or 3A.                             transfer and use caps); (2) vessel size
                                                      Fish transfers may be between separate                                                                        categories that limit the size of vessels
                                                                                                              Commercial Individual Fishing Quota
                                                      IFQ and CHP holders, or a person                                                                              that can use the annual allocations
                                                                                                              (IFQ) Fishery
                                                      holding both IFQ and a CHP can transfer                                                                       resulting from the QS; (3) restrictions on
                                                      their IFQ to himself or herself as GAF.                    The commercial halibut and sablefish               who can purchase catcher vessel QS;
                                                      Upon approval of the transfer                           fisheries off Alaska are managed under                and (4) limitations on leasing certain
                                                      application, NMFS issues a GAF permit                   the IFQ Program (November 9, 1993; 58                 categories of QS.
                                                      to the holder of the CHP. Once the                      FR 59375). The IFQ Program was                           Halibut QS is designated as one of
                                                      transfer is approved, the GAF permit                    implemented in 1995. The commercial                   four QS categories (also called ‘‘vessel
                                                      holder may offer additional GAF harvest                 halibut fishery is also referred to as the            categories’’ or ‘‘size categories’’ of QS).
                                                      opportunities to anglers on board the                   ‘‘directed halibut fishery.’’ The IFQ                 The term ‘‘vessel class’’ is also
                                                      vessel on which the operator’s GAF                      Program limits access to the commercial               sometimes used, but the term
                                                      permit and the assigned CHP are used.                   directed halibut fishery to those persons             ‘‘category’’ will be used in this preamble
                                                         NMFS issues GAF in whole numbers                     holding halibut quota share (QS) in                   to be consistent with the term used in
                                                      of halibut based on a conversion factor                 specific management areas. A more                     regulation. These categories include A-
                                                      from IFQ pounds. Conversion factors are                 detailed description of QS allocation                 category for freezer catcher-processor
                                                      based on the average net weights of GAF                 and management is provided in Section                 vessels; B-category for vessels greater
                                                      harvested in the applicable IPHC                        4.5.1 of the Analysis and summarized                  than 60 ft length overall (LOA); C-
                                                      Regulatory Area (Area 2C or 3A) during                  here.                                                 category for vessels 36 ft to 60 ft LOA;
                                                      the previous year. Average weights are                     The IFQ Program assigned QS by                     and D-category for vessels 35 ft or less
                                                      determined from data that charter vessel                IPHC Regulatory Area based on certain                 LOA. The term ‘‘catcher vessel QS’’
                                                      guides report directly to NMFS. For                     thresholds of historical participation in             refers to QS that can be used to catch,
                                                      2017, 74 pounds of IFQ yields one GAF                   the commercial halibut fishery. NMFS                  but cannot be used to process, halibut
                                                      in Area 2C, and 42 pounds of IFQ yields                 initially issued QS to qualified                      at sea (i.e., B-, C-, and D-category QS).
                                                      one GAF in Area 3A. Based on self-                      participants beginning in 1994. Once QS               Halibut QS also has a designation of
                                                      reported data, CHP holders have paid                    was issued, NMFS allows QS to be                      ‘‘blocked’’ or ‘‘unblocked.’’ Blocked QS
                                                      more than $5 per pound of IFQ                           transferred from initial recipients to                must be sold as a unit, and cannot be
                                                      transferred as GAF in Area 2C and 3A,                   individuals meeting specific eligibility              separated. No person may hold more
                                                      making GAF quite expensive, especially                  requirements. The GAF Program does                    than three blocks of halibut QS in any
                                                      in Area 2C (see Section 4.4.2.3 in the                  not authorize the transfer of QS from the             IFQ regulatory area. The purpose of the
                                                      Analysis for additional detail). In part                commercial IFQ fishery for use in the                 QS block provision was to ensure that
                                                      due to the high costs of leasing GAF,                   charter fishery. QS provides individual               the smallest, most affordable QS would
                                                      annual participation has been low,                      harvesting privileges that are allocated              remain available to a part-time fleet of
                                                      averaging about 48,000 pounds per year                  on an annual basis through the issuance               smaller operators in order to maintain
                                                      from 2014 through 2016.                                 of IFQ permits.                                       some of the fleet diversity that existed
                                                         Three restrictions on GAF transfers                     An annual IFQ permit authorizes the                prior to the IFQ Program’s
                                                      were implemented with the GAF                           holder to harvest a specified amount of               implementation, and to reduce potential
                                                      Program. First, IFQ holders in Area 2C                  halibut in a designated IPHC Regulatory               disruption to isolated Alaska fishing
                                                      are limited to transferring up to 1,500                 Area. The specific amount of IFQ (in net              communities. The preamble to the
                                                      pounds or 10 percent, whichever is                      pounds) is determined by the number of                proposed rule for the IFQ Program,
                                                      greater, of their initially-issued annual               QS units held, the total number of QS                 published on December 3, 1992 (57 FR
                                                      halibut IFQ for use as GAF. In Area 3A,                 units issued in a specific IPHC                       57130), describes the IFQ Program in
                                                      IFQ holders may transfer up to 1,500                    Regulatory Area, and the total amount of              more detail.
                                                      pounds or 15 percent, whichever is                      the halibut catch limit allocated by the
                                                      greater, of their initially-issued annual               IPHC in a particular year. If the                     Community Quota Entity Program
                                                      halibut IFQ for use as GAF. Second, no                  abundance of halibut decreases over                     After implementation of the IFQ
asabaliauskas on DSKBBXCHB2PROD with PROPOSALS




                                                      more than 400 GAF will be assigned                      time, the catch limit will decrease and,              Program, the total amount of QS held by
                                                      during one year to a GAF permit                         subsequently, the number of pounds on                 residents of small, coastal communities
                                                      assigned to a holder of a CHP that is                   a person’s annual IFQ permit also will                and the number of IFQ holders
                                                      endorsed for six or fewer anglers. Third,               decrease. By providing an exclusive                   substantially declined. To alleviate the
                                                      no more than a total of 600 GAF will be                 privilege to harvest a certain amount of              social and economic impacts of this
                                                      assigned during one year to a GAF                       the catch limit at the beginning of the               consolidation on rural communities, the
                                                      permit assigned to a holder of a CHP                    season, and by extending the season                   Council revised the IFQ Program in
                                                      endorsed for more than six anglers. The                 over a longer period, the IFQ Program                 2004 to allow a distinct set of remote
                                                      restrictions on transfers of GAF are                    allows QS holders to determine where                  coastal communities with few economic


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                                                      46020                  Federal Register / Vol. 82, No. 190 / Tuesday, October 3, 2017 / Proposed Rules

                                                      alternatives to purchase and hold                       example, CQEs cannot purchase                         Proposed Recreational Quota Entity for
                                                      catcher vessel QS in Areas 2C, 3A, and                  D-category halibut QS in Area 2C. In                  Area 2C and Area 3A
                                                      3B (69 FR 23681, April 30, 2004). This                  addition, there are caps on the amount                Overview
                                                      action was implemented in order to                      of QS that all CQEs combined can
                                                      help ensure access to and sustain                       purchase, and CQEs cannot lease more                     In December 2016, the Council
                                                      participation in the commercial halibut                 than 50,000 pounds of halibut IFQ to an               recommended the implementation of an
                                                      and sablefish fisheries. Eligible                       individual resident. A detailed list of               RQE Program. This proposed RQE
                                                      communities can form non-profit                                                                               Program would provide a mechanism
                                                                                                              provisions specifically applicable to
                                                      corporations called Community Quota                                                                           for the charter fishery to compensate the
                                                                                                              CQEs is provided in Section 4.5.2 of the              commercial IFQ fishery for halibut QS
                                                      Entities (CQEs) to purchase catcher
                                                                                                              Analysis.                                             purchased from the commercial sector
                                                      vessel QS. The IFQ resulting from the
                                                      QS must be leased (i.e., made available                 Purpose and Need for Proposed Rule                    to increase the charter annual catch
                                                      for fishing) to community residents                                                                           limits. The halibut RFQ that would
                                                      annually.                                                  Currently, the charter fishery is                  result from that QS would provide
                                                         NMFS determined that CQE eligibility                 limited to harvesting its percentage of               potentially greater harvest opportunities
                                                      applied to 46 Alaskan communities,                      the Area 2C or 3A combined catch limit                to the clients of charter operators within
                                                      based on certain criteria for size,                     it is allocated under the CSP. Charter                Areas 2C and 3A.
                                                      accessibility, and historical                           catch limits increase or decrease as total               The Council and NMFS considered a
                                                      participation in the halibut or sablefish               halibut abundance increases or                        no-action alternative to maintain the
                                                      fisheries. Eligible communities must                    decreases. When halibut abundance is                  status quo (no RQE Program) and an
                                                      establish a non-profit corporation to                   relatively low, as it has been in recent              alternative to authorize an RQE
                                                      become a CQE. The non-profit                            years compared to abundance trends in                 Program. The Council and NMFS also
                                                      corporation must submit an application                                                                        considered a broad range of elements
                                                                                                              the 1990s and 2000s, the charter
                                                      to NMFS detailing its organization,                                                                           and options to determine: The number
                                                                                                              allocations under the CSP are lower,
                                                      structure, and proposed procedures for                                                                        of RQEs that could form; the amount
                                                                                                              resulting in more restrictive annual                  and type of QS that could be purchased
                                                      leasing IFQ to community residents
                                                                                                              management measures.                                  and held by the RQE; the process for
                                                      (among other requirements). If NMFS
                                                      approves the application, a CQE may                        The only way that charter operators                setting annual management measures;
                                                      form to represent that community and                    can currently provide more opportunity                how the RQE Program should interact
                                                      the CQE may obtain QS by transfer.                      to charter clients than the established               with the GAF and CQE Programs; how
                                                      Currently, 28 communities have formed                   management measures allow for in their                the RQE could use funds, the
                                                      non-profit corporations and have                        area is through participation in the GAF              organizational structure of the RQE; and
                                                      applied for and been approved to obtain                 Program by individual charter operators.              the appropriate reporting requirements
                                                      QS by transfer. Of those 28 CQEs, 4 have                Because of the current restrictions on                for the RQE. The specific elements and
                                                      purchased QS. Community Quota                           charter harvests under the existing                   options recommended by the Council
                                                      Entities may also apply to NMFS to be                   charter allocations under the CSP and                 and proposed by NMFS are described
                                                      able to participate in the CHLAP by                     the limited flexibility for charter                   below. The entire suite of elements and
                                                      purchasing CHPs, and are authorized to                  operators to provide additional harvest               options considered, and the predicted
                                                      receive Community Charter Halibut                       opportunities to their clients, the charter           effects of those elements and options
                                                      Permits which is similar to a CHP, but                                                                        (including the no-action alternative) are
                                                                                                              fishery has expressed its desire to find
                                                      available only to CQEs. To date, 20                                                                           evaluated in detail in the Analysis.
                                                                                                              a market-based mechanism to increase                     The Council stated that the principal
                                                      CQEs have applied for and been issued
                                                                                                              its overall allocation of the halibut                 objective of this proposed rule is to
                                                      Community Charter Halibut Permits.
                                                      Although CQE’s may also receive CHPs                    resource.                                             promote social and economic flexibility
                                                      by purchasing (i.e., transferring) them                    Based on these concerns, in 2015, the              in the charter fishery by authorizing the
                                                      from non-CQE permit holders, no CQE                     Council initiated the analytic process to             development of an entity that would be
                                                      has received any CHPs by transfer to                    develop a ‘‘market-based mechanism’’ to               eligible to purchase and hold
                                                      date.                                                   allow a non-profit entity (similar to a               commercial halibut QS in Areas 2C and
                                                         Although CQEs are subject to different               CQE) to purchase and hold a limited                   3A, thereby providing additional
                                                      constraints than individual QS holders                  amount of commercial halibut QS on                    harvest opportunities to charter anglers.
                                                      in the IFQ Program, in some cases, the                  behalf of charter anglers. The intent of              This proposed rule is intended to
                                                      CQE is subject to the same limitations                  the Council was to provide additional                 promote long-term efficiency in the use
                                                      as individual permit holders in the IFQ                 harvest opportunity and less restrictive              of the halibut resource by allowing
                                                      Program. For example, each CQE is held                  annual harvest measures for charter                   transfers of QS between commercial QS
                                                      to the same QS use caps (i.e., ownership                                                                      holders and the charter fishery, through
                                                                                                              anglers in times of low halibut
                                                      caps) as an individual holder. In other                                                                       an RQE, under a ‘‘willing buyer and
                                                                                                              abundance, while complying with total
                                                      cases, the CQE is subject to less                                                                             willing seller’’ approach.
                                                      restrictive measures to provide for the                 halibut removals under the catch limits
                                                      differing purpose and use of the QS                     established by the IPHC under the CSP.                Description of Proposed Rule
                                                      when held by communities. For                           In initiating this effort, the Council                   This proposed rule would allow an
asabaliauskas on DSKBBXCHB2PROD with PROPOSALS




                                                      example, the vessel size categories do                  sought to balance the objectives of                   RQE to be established as an eligible
                                                      not apply to QS when held by CQEs. In                   participants in the charter fishery                   entity to purchase halibut QS in Area 2C
                                                      yet other cases, the CQE is subject to                  without undermining the goals of the                  and Area 3A, with limitations, for use
                                                      more restrictive measures than                          IFQ Program or creating significant                   by the charter fishery as a whole. Using
                                                      individuals, in part to protect existing                adverse impacts to other halibut sectors.             a structure similar to a CQE, the RQE
                                                      holders and preserve entry-level                        A complete history of the development                 would be an eligible participant in the
                                                      opportunities for fishermen residing in                 of this proposed action is described in               IFQ Program and could purchase Area
                                                      fishery-dependent communities that are                  Section 2.2 of the Analysis.                          2C and 3A halibut QS for use by all
                                                      not are not eligible to form a CQE. For                                                                       charter halibut anglers in the respective


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                                                                             Federal Register / Vol. 82, No. 190 / Tuesday, October 3, 2017 / Proposed Rules                                            46021

                                                      area. Any halibut QS purchased by the                   registered under the laws of the State of             law. A non-profit organization may be
                                                      RQE would be held by this entity for the                Alaska and recognized as exempt from                  eligible for certain benefits, such as state
                                                      common use of charter halibut anglers.                  Federal income tax by the Internal                    sales, property and income tax
                                                      If approved, Federal regulations would                  Revenue Service (IRS) to purchase and                 exemptions. Although most Federal tax-
                                                      be amended to allow the RQE to acquire                  hold halibut QS for use by the charter                exempt organizations are non-profit
                                                      QS.                                                     fishery. The QS held by an RQE could                  organizations, being recognized as a
                                                         Halibut QS held by the RQE would                     yield RFQ annually. This proposed rule                non-profit organization at the state level
                                                      generate annual pounds of recreational                  would allow a single non-profit entity to             does not automatically grant the
                                                      fishing quota (RFQ), a type of annual                   form to represent and manage separate                 organization exemption from Federal
                                                      harvest privilege similar to IFQ that                   QS holdings for Areas 2C and 3A.                      income tax. To qualify as exempt from
                                                      would have special requirements that                       The Council and NMFS considered an                 Federal income tax, an organization
                                                      pertain only to the RQE. RFQ would be                   option to allow formation of two RQEs,                must seek recognition of exemption
                                                      calculated in the same manner as IFQ.                   one to represent Area 2C and another in               from Federal income tax under section
                                                      Under this proposed rule, the specific                  Area 3A, but ultimately decided that                  501(a) of the Internal Revenue Code.
                                                      amount of RFQ (in net pounds) would                     one RQE would provide administrative                     This proposed rule would establish
                                                      be determined by the number of QS                       efficiencies for purchasing and                       specific requirements for an entity to be
                                                      units held by the RQE as of October 1                   managing commercial QS. The Council                   authorized as the RQE. To be approved
                                                      of the preceding calendar year, the total               and NMFS initially considered allowing                as the entity eligible to purchase and
                                                      number of halibut QS units issued in                    multiple RQEs within Area 2C and 3A,                  hold halibut QS, the applicant wishing
                                                      Area 2C or 3A as of January 15 of the                   but recommended against that structure                to become the RQE would be required
                                                      year the IFQ or RFQ is issued, and the                  to avoid potential competition against                to demonstrate it is a non-profit entity
                                                      total amount of halibut allocated to the                each other to purchase QS, and to                     registered under the laws of the State of
                                                      commercial IFQ fisheries in Areas 2C                    reduce potential administrative costs.                Alaska by submitting to NMFS the
                                                      and 3A for that year.                                      The structure of the RQE is proposed               articles of incorporation and
                                                         Although the amount of RFQ would                     to be similar to non-profits established              management organization information,
                                                      be calculated in the same way as IFQ,                   to hold QS under the CQE Program. The                 including bylaws and a list of key
                                                      it would be subject to different                        Council recommended and NMFS                          personnel including, but not limited to,
                                                      requirements. The additional pounds of                  proposes that the RQE be a non-profit                 the board of directors, officers,
                                                      RFQ for each regulatory area would be                   entity to help ensure it represents the               representatives, and managers.
                                                      combined with the charter catch limit                   interests of the charter operators,                      Articles of incorporation are public
                                                      determined under the CSP to calculate                   whereas a for-profit entity could result              documents that must be filed with the
                                                      an adjusted charter catch limit for the                 in increased costs. The Council has                   state agency where the corporation
                                                      year for Area 2C or 3A. Annual charter                  consistently recommended, and NMFS                    becomes incorporated (e.g., with
                                                      management measures for Areas 2C and                    has consistently approved the use of                  Alaska’s Division of Corporations,
                                                      3A would be analyzed, recommended to                    non-profit entities for the purposes of               Business, and Professional Licensing).
                                                      the IPHC, and adopted for                               holding QS in other limited access                    NMFS proposes that the RQE would
                                                      implementation based on the estimated                   programs. The proposed RQE                            need to be incorporated within the State
                                                      adjusted charter catch limits.                          organizational structure is consistent                of Alaska consistent with incorporation
                                                      Recreational Fishing Quota held by the                  with past practice. Also, a non-profit                requirements applicable to CQEs.
                                                      RQE would be available for harvest by                   entity that is independent of the Federal             Bylaws are private documents
                                                      all charter anglers aboard registered                   or state governments could more                       describing the organization’s operating
                                                                                                              quickly and more flexibly take                        procedures that are not filed with any
                                                      charter vessels of any size, regardless of
                                                                                                              advantage of favorable market                         government agency. The Council and
                                                      the QS category from which that RFQ
                                                                                                              conditions for purchasing QS than a                   NMFS chose to not specify how the
                                                      originated. Under this proposed rule,
                                                                                                              program administered by the Federal or                board of directors of the RQE should be
                                                      RFQ could not be transferred as GAF.
                                                                                                              state governments. More information on                structured. The Council and NMFS
                                                      Unless specified in this proposed rule,
                                                                                                              the structure of the proposed RQE is                  considered options to require a certain
                                                      regulations that refer only to IFQ permit
                                                                                                              provided in section 4.8.1.1 of the                    number of board members representing
                                                      holders would not apply to the RQE.
                                                                                                              Analysis.                                             different user groups, but ultimately
                                                      Likewise, unless specified in this
                                                                                                                 NMFS proposes new definitions in                   decided that these decisions were best
                                                      proposed rule, regulations that refer
                                                                                                              § 679.2 for ‘‘Recreational fishing quota              left to the RQE (see Section 4.8.1.6 of
                                                      only to IFQ would not apply to RFQ.                                                                           the Analysis). The Council intends that
                                                                                                              (RFQ)’’ and ‘‘Recreational quota entity
                                                         This proposed rule would not change
                                                                                                              (RQE).’’                                              the RQE board should have the
                                                      the underlying allocations to the
                                                                                                                                                                    flexibility to tailor its composition in a
                                                      commercial IFQ fishery and charter                      Eligibility                                           way that best addresses the RQE’s
                                                      fishery specified in the CSP, and would                   The Council recommended                             needs. The Council noted that a
                                                      not change the total QS pool. Therefore,                establishment of a single RQE that is a               representative of the Alaska Department
                                                      the QS holders in the commercial IFQ                    qualified non-profit entity registered                of Revenue may sit as an ex-officio (non-
                                                      fishery who do not transfer QS to the                   with the IRS to purchase and hold                     voting) member of the RQE board, and
                                                      RQE would receive the same amount of                    commercial halibut QS for use by the                  the Commissioner of the Alaska
asabaliauskas on DSKBBXCHB2PROD with PROPOSALS




                                                      IFQ pounds issued for their QS units                    guided halibut sector.’’ To implement                 Department of Fish and Game, or their
                                                      regardless of the amount of QS                          this recommendation, NMFS proposes                    designee, may sit as a voting member of
                                                      transferred to, and held by, the RQE.                   requirements specifying that the RQE                  the RQE board; however, the Council
                                                      Provisions of Proposed Rule                             must be a qualified non-profit entity                 did not intend be prescriptive with
                                                                                                              registered under the laws of the State of             respect to RQE board membership. The
                                                      RQE Organizational Structure                            Alaska and recognized as exempt from                  Council intended for the RQE to
                                                        The Council recommends and NMFS                       Federal income tax by the IRS. Non-                   determine whether these officials would
                                                      proposes to allow the establishment of                  profit status is a state law concept and              be a member of the RQE board. For
                                                      an RQE as a qualified non-profit entity                 does not directly apply to Federal tax                example, if funding for the RQE is


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                                                      46022                  Federal Register / Vol. 82, No. 190 / Tuesday, October 3, 2017 / Proposed Rules

                                                      provided or administered by the State of                National Appeals Office under the                     on the 2015 pool of all QS categories
                                                      Alaska, then a board member from the                    provisions established at 15 CFR part                 (59,477,396 units). Based on the 2015
                                                      Alaska Department of Revenue might be                   906.                                                  QS pool, the RQE would be limited to
                                                      beneficial; however, the Council                          NMFS proposes adding a new                          receiving by transfer a maximum of
                                                      intended for this determination to be at                paragraph § 679.41(n) to describe the                 594,774 units of Area 2C QS in a year.
                                                      the discretion of the RQE. Because the                  application process and eligibility                   Even if the QS pool changes in future
                                                      Council intended for the RQE to have                    requirements for a prospective RQE.                   years, this proposed rule would fix the
                                                      flexibility to select members of the RQE                Restrictions on Transfers                             annual transfer limit in Area 2C at
                                                      board, NMFS does not propose to                                                                               594,774 QS units. This will clearly
                                                      specify the composition of the RQE                         Under this proposed RQE Program,                   define the limit for fishery participants
                                                      board in regulation.                                    two-way transfers of QS would be                      and prevent a change in the limit if
                                                         In addition to demonstrating it is a                 allowed. Quota share acquired by the                  there are future changes in the Area 2C
                                                      non-profit corporation recognized by the                RQE could be transferred to an                        or 3A QS pools. For example, in 2017,
                                                      State of Alaska, the applicant wishing to               otherwise eligible participant in the                 the QS:IFQ ratio is 14.1209 QS units per
                                                      become the RQE would be required to                     commercial IFQ fishery. Because QS                    pound of IFQ, and the annual transfer
                                                      demonstrate it has been granted an                      and the resulting IFQ used in the                     limit would be 42,120 pounds of IFQ for
                                                      exemption from Federal income tax by                    commercial IFQ fishery is subject to                  Area 2C.
                                                      the IRS by submitting to NMFS the IRS                   vessel categories and block designations                The Council recommended and
                                                      acknowledgement of the entity’s Federal                 on initially-issued QS—unlike the QS                  NMFS proposes an annual transfer limit
                                                      tax exemption.                                          and resulting RFQ used by the RQE,                    equivalent to 1.2 percent of the
                                                         NMFS proposes to require the                         which is exempt from such categories                  commercial QS pool in Area 3A based
                                                      approved RQE to maintain its non-profit                 and designations—NMFS will track QS                   on the 2015 pool of all QS categories
                                                      and tax-exempt status, as described                     units, IFQ pounds, and vessel category                (184,893,008 units). For example, based
                                                      above. If the approved RQE entity does                  and block designations that apply to                  on the 2015 QS pool, the RQE would be
                                                      not meet this requirement, NMFS would                   ensure that original categories and                   limited to receiving by transfer a
                                                      not issue the RFQ that would otherwise                  designations for the commercial IFQ                   maximum of 2,218,716 units of Area 3A
                                                      be issued to the RQE based on its QS                    fishery are maintained during the                     QS in a year. Even if the QS pool
                                                      holdings. In addition, NMFS would                       transfer process.                                     changes in future years, this proposed
                                                      provide the approved RQE entity with                       The Council recommended and                        rule would fix the annual transfer limit
                                                      an opportunity to reinstate its non-profit              NMFS proposes two-way transfers                       in Area 3A at 2,218,716 QS units. For
                                                      and/or tax-exempt status. If the                        because it is expected that there would               example, in 2017, the QS:IFQ ratio is
                                                      approved RQE entity does not                            be variability from year to year in the               23.8911QS units per pound of IFQ, and
                                                      demonstrate to NMFS that it is a                        amount of QS the RQE would be                         the annual transfer limit would be
                                                      qualified non-profit entity registered                  interested in using as RFQ. For example,              92,868 pounds of IFQ for Area 3A.
                                                      under the laws of the State of Alaska                   if halibut biomass increases, the RQE                   For both Area 2C and 3A, the Council
                                                      and recognized as exempt from federal                   may hold QS that is not needed to yield               and NMFS considered annual transfer
                                                      income tax by the IRS by the established                RFQ to provide additional opportunities               limits between 0.5 and 5 percent and
                                                      deadline, NMFS would issue an Initial                   for participants in the charter fishery,              determined that 1 percent for Area 2C
                                                      Administrative Determination (IAD) to                   and may decide to sell a portion of its               and 1.2 percent for Area 3A were the
                                                      revoke the entity’s status as the                       QS to an eligible buyers in the                       appropriate annual transfer limits
                                                      approved RQE and to require the entity                  commercial fishery sector.                            because they would allow the RQE to
                                                      to divest its QS holdings. The entity                      NMFS proposes modifying § 679.42 to                reach the cumulative use limits on QS
                                                      would have the opportunity to appeal                    describe the QS transfer process for                  holding (discussed in the next section)
                                                      the IAD through the National Appeals                    RQEs.                                                 in 10 years if the RQE purchased the
                                                      Office under the provisions established                                                                       maximum amount of QS in each area in
                                                                                                              Annual Limit on Transfers to an RQE
                                                      at 15 CFR part 906. The application and                                                                       each year after the RQE Program is
                                                      procedures for approving the                               This proposed rule would establish                 implemented. The Council indicated
                                                      application to become an RQE would be                   area-specific annual limits on the                    that limiting annual transfers at these
                                                      modeled after the application and                       amount of halibut QS that can transfer                proposed limits and allowing the RQE
                                                      process for CQEs. The applicant would                   to an RQE. The intended effect of these               to reach its maximum QS holdings over
                                                      complete the ‘‘Application for a Non-                   transfer limits is to limit the amount of             as few as 10 years would balance the
                                                      profit Corporation to be Designated as a                halibut QS that could be transferred                  desire to provide adequate additional
                                                      Recreational Quota Entity (RQE)’’ and                   from the commercial IFQ fishery and                   harvest opportunity to charter anglers,
                                                      submit it to NMFS Alaska Region for                     used as RFQ in the charter fishery each               while at the same time mitigating the
                                                      review and approval. The application                    year, and to minimize any abrupt                      potentially disruptive impacts on the
                                                      form would be available on the NMFS                     negative impacts that may occur to                    QS market with the entry of the RQE.
                                                      Alaska Region Web site at https://                      participants in the commercial IFQ                    Therefore, the proposed annual limits
                                                      alaskafisheries.noaa.gov/ after the                     fishery or to CQEs due to additional                  are equal to 1/10 of the cumulative
                                                      effective date of the final rule, assuming              competition in the QS market that could               holdings limits. Annual transfer limits
                                                      a final rule is published. NMFS would                   occur with the entry of an RQE. Annual
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                                                                                                                                                                    are discussed in further detail in Section
                                                      approve the first complete RQE                          transfer limits would allow users in the              4.8.1.2.2 of the Analysis.
                                                      application it receives. NMFS would                     commercial IFQ and charter fisheries                    NMFS proposes adding a new
                                                      notify the RQE when its application has                 time to adapt business plans and                      paragraph at § 679.42(f)(8) to describe
                                                      been approved. Once approved, NMFS                      personal strategies to changes in the                 the annual transfer limits on QS for
                                                      would establish an account for QS and                   composition of the fisheries.                         RQEs.
                                                      RFQ holdings when the RQE acquires                         The Council recommended and
                                                      QS. If NMFS disapproves the                             NMFS proposes an annual transfer limit                Limit on Total QS Holdings by the RQE
                                                      application, that determination could be                equivalent to 1 percent of the                          The Council recommended and
                                                      appealed to the NOAA Fisheries                          commercial QS units in Area 2C based                  NMFS proposes a limit on the total


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                                                                             Federal Register / Vol. 82, No. 190 / Tuesday, October 3, 2017 / Proposed Rules                                          46023

                                                      amount of halibut QS that can be held                   Area 3A could potentially be transferred              before the combined amount of RFQ and
                                                      by the RQE. This rule proposes that for                 as GAF. However, actual participation                 GAF transferred to CHP holders would
                                                      Area 2C, the RQE could hold up to 10                    in the GAF Program has been relatively                exceed as the cumulative limit for RFQ
                                                      percent of the 2015 commercial QS                       low. From 2014 through 2016, less than                and GAF in Area 2C (421,201 pounds).
                                                      pool. This proportion would be                          1.25 percent of Area 2C IFQ, and less                 Under this second example, NMFS
                                                      calculated based on the entire QS pool,                 than 0.2 percent of Area 3A IFQ have                  would approve GAF transfers for CHP
                                                      including categories and blocks of QS                   been transferred as GAF in any year.                  holders until 2,845 GAF had been
                                                      units that the RQE would be prohibited                  Based on the cost to transfer IFQ as GAF              transferred to CHP holders in Area 2C.
                                                      from purchasing (discussed in the next                  noted earlier in this preamble, NMFS                  Once 2,845 GAF had been transferred to
                                                      sections of this preamble). Ten percent                 considers it very unlikely that                       CHP holders in Area 2C, NMFS would
                                                      of the 2015 commercial QS pool equates                  participation in the GAF Program will                 disapprove all subsequent transfers of
                                                      to 5,947,740 units.                                     increase substantially and approach the               GAF in Area 2C for the remainder of the
                                                         This rule proposes a limit on QS                     maximum allowable transfer limits.                    calendar year.
                                                      holdings for Area 3A of 12 percent of                   Notwithstanding that unlikelihood, the                   The Council and NMFS considered
                                                      the 2015 entire commercial QS pool,                     Council determined and NMFS agrees                    options that would not have restricted
                                                      including categories and blocks of QS                   that limiting the amount of GAF that                  transfers of GAF even if the RQE
                                                      units that the RQE would be prohibited                  could be transferred to the charter                   reached its cumulative use limit of QS.
                                                      from purchasing. Twelve percent of the                  fishery as RQE QS holdings increase                   The Council recommended and NMFS
                                                      2015 commercial QS pool equates to                      appropriately balances the objective of               proposes limiting the total amount of
                                                      22,187,161 units.                                       establishing an RQE to further increase               annual poundage that could be
                                                         As described in the previous section                 harvest opportunity in the charter                    reallocated to the charter fishery as RFQ
                                                      for annual transfer limits for the RQE,                 fishery while minimizing the negative                 and GAF to the cumulative use limit on
                                                      this proposed rule would fix the limits                 impacts that may result in the                        RQE holdings. This limit was chosen, as
                                                      on total QS holdings by the RQE in                      commercial IFQ fishery from transfers of              described in the previous section of the
                                                      regulations so that they are clearly                    QS.                                                   preamble, to balance the concerns of
                                                      defined for fishery participants and will                  The Council recommended and                        commercial fishery participants about
                                                      not fluctuate if there are future changes               NMFS proposes restricting GAF                         the increased potential for reallocation
                                                      in the Area 2C or 3A QS pools.                          transfers so that in any year, the                    to the charter fishery with the interests
                                                         The Council and NMFS considered                      combined amount of RFQ and GAF                        of charter operators to increase harvest
                                                      limits that ranged from 5 to 20 percent                 transferred to CHP holders could not                  opportunities. The limit on GAF
                                                      of the 2015 QS pools in each area. The                  exceed a poundage equal to the                        transfers as RQE QS holdings increase is
                                                      Council recommended and NMFS                            maximum amount of pounds that could                   discussed in further detail in Section
                                                      proposes 10 percent and 12 percent                      be issued as RFQ in Area 2C or 3A.                    4.8.1.2.4 of the Analysis.
                                                      limits in Areas 2C and 3A, respectively,                   The following two examples describe                   NMFS proposes adding a new
                                                      to provide a balance between providing                  how NMFS would administer this                        paragraph at § 300.65(c)(5)(ii)(D)(1)(iv)
                                                      ample opportunity for additional                        provision in Area 2C. Under this                      to limit the transfer of IFQ to GAF as the
                                                      harvest opportunity for the charter                     proposed rule, in Area 2C the RQE may                 RQE increases its holdings of QS.
                                                      fishery, while seeking to alleviate                     hold a maximum of 10 percent of the
                                                                                                              2015 Area 2C QS pool (5,947,740 units).               Vessel Category Restrictions
                                                      potential adverse impacts to commercial
                                                      halibut participants from increased                     These two examples use the 2017                         The Council recommended and
                                                      competition in the QS market and                        QS:IFQ ratio for Area 2C (14.1209 QS                  NMFS proposes limits on the amounts
                                                      higher QS prices that could occur if the                units per pound of IFQ), and the 2017                 of QS the RQE could hold by vessel
                                                      RQE were provided a higher limit on QS                  conversion factor for IFQ to GAF for                  category in Areas 2C and 3A. The RQE
                                                      holdings by the RQE. The limits on RQE                  Area 2C (74 pounds of IFQ to yield one                would be limited to holding an amount
                                                      holdings of QS are discussed in further                 GAF). The first example assumes the                   equal to 10 percent of D-category QS
                                                      detail in Section 4.8.1.2.3 of the                      RQE held the maximum amount of QS                     and an amount equal to 10 percent of B-
                                                      Analysis.                                               units (5,947,740 units) in Area 2C.                   category QS, based on the 2015 QS
                                                         NMFS proposes adding a new                           Under this example, the RQE would be                  pools, in Area 2C. Translated to QS
                                                      paragraph at § 679.42(f)(8) to describe                 issued 421,201 pounds of RFQ                          units, this proposed rule would prohibit
                                                      the QS holding limits for the RQE.                      (5,947,740 QS units/14.1209 QS:IFQ =                  the RQE from holding more than
                                                                                                              421,201 pounds), and NMFS would not                   889,548 units of D-category QS, and
                                                      Limit on GAF Transfers as RQE                           approve any transfers of GAF to CHP                   more than 265,524 units of B-category
                                                      Holdings Increase                                       holders in Area 2C during that calendar               QS in Area 2C (see Table 4–40 of the
                                                         As part of the RQE Program, the                      year because the combined amount of                   Analysis).
                                                      Council recommends and NMFS                             RFQ and GAF transferred by CHP                          Under this proposed rule, the RQE
                                                      proposes to limit the total amount of                   holders would exceed the cumulative                   would be prohibited from purchasing or
                                                      GAF that could be used annually by                      limit for RFQ and GAF in Area 2C                      holding D-category QS in Area 3A. The
                                                      CHP holders by limiting the amount of                   (421,201 pounds). The second example                  RQE could purchase any amount, up to
                                                      GAF that could be transferred to the                    assumes the RQE held 50 percent of the                the annual transfer and cumulative use
                                                      charter fishery as RQE QS holdings                      RQE’s Area 2C cumulative QS limit (i.e.,              limits of A-, B-, and C-category QS in
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                                                      increase.                                               2,973,870 units). Under this example,                 Area 3A.
                                                         Under existing regulations, a                        the RQE would be issued 210,601                         The Council and NMFS considered
                                                      significant amount of GAF could be                      pounds of RFQ (2,973,870 QS units/                    the current composition of the QS pools
                                                      transferred to CHP holders each year.                   14.1209 QS:IFQ = 210,601 pounds), and                 in Areas 2C and 3A, and the potential
                                                      For example, based on 2015 data, if all                 NMFS could approve GAF transfers to                   impact on specific QS categories when
                                                      QS holders transferred the maximum                      CHP holders equivalent to 210,601                     proposing these regulations. D-category
                                                      allowable amounts of IFQ as GAF to                      pounds of IFQ, or 2,845 GAF (210,600                  QS cannot be fished on vessels greater
                                                      eligible CHP holders, 49.1 percent of the               pounds/74 pounds of IFQ per GAF =                     than 35 ft LOA in Area 3A or 2C. Thus,
                                                      Area 2C IFQ and 35.5 percent of the                     2,845 GAF) during that calendar year                  the proposed limits on the RQE


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                                                      46024                  Federal Register / Vol. 82, No. 190 / Tuesday, October 3, 2017 / Proposed Rules

                                                      acquiring D-category shares is intended                 QS by category that equate to 1,500                   transfer after October 1. If the RQE
                                                      to maintain vessel size diversity in the                pounds or less (based on 2015 pounds).                transfers QS that it holds on October 1
                                                      commercial fleet. Additionally, the                     For Area 2C, this means that the RQE                  to a recipient in the commercial IFQ
                                                      Council and NMFS noted that D-                          could not purchase blocked QS of                      fishery after that date, NMFS would not
                                                      category QS tends to sell for a lower                   24,250 units or less. For Area 3A, the                issue IFQ to the commercial recipient
                                                      price and could therefore make it a                     RQE would be prohibited from                          for that QS in the following calendar
                                                      desirable and accessible category of QS                 purchasing blocked QS of 35,620 units                 year. This approach is similar to the
                                                      for the RQE to purchase (see Section 4.5                or less. The Council recommended and                  method used in the commercial fishery
                                                      of the Analysis). Therefore, the limits                 NMFS proposes these prohibitions to                   to allow the transfer of QS but not the
                                                      are being proposed to reduce the                        ensure that small and more affordable                 IFQ once that IFQ has been used. In this
                                                      potential for the RQE to obtain so much                 blocks of QS remain available for                     case, NMFS would consider that RFQ is
                                                      D-category QS as to impact the size                     purchase by new entrants and small                    effectively ‘‘used’’ if it is assigned to the
                                                      diversity of the commercial IFQ fishery                 businesses in the commercial IFQ                      charter allocation for the following
                                                      fleet by substantially reducing the                     fishery. The prohibition on the transfer              calendar year. If the RQE receives QS by
                                                      amount of QS available for small vessels                of small blocks of QS will have limited               transfer after October 1, that QS would
                                                      in the commercial fleet. The proposed                   impact on the total available market of               not result in the issuance of RFQ for the
                                                      limits on D-category QS purchases are                   QS that the RQE could purchase. Block                 following calendar year. However, if the
                                                      also intended to protect the opportunity                restrictions are discussed in more detail             RQE subsequently transferred any QS
                                                      for new entrants in the commercial                      in Section 4.8.1.3 of the Analysis.                   received by transfer after October 1 that
                                                      fishery because these participants often                   NMFS proposes to add a new                         did not result in RFQ back to the
                                                      use vessels that are 35 ft LOA or less.                 paragraph at § 679.42(g)(1)(iii) to                   commercial IFQ fishery, NMFS would
                                                         In Area 2C, B- and C-category QS also                establish restrictions on the type and                issue IFQ to the commercial recipient
                                                      provide entry-level opportunities. A                    amount of blocked QS that the RQE can                 for that QS.
                                                      total prohibition on acquisition of D-                  hold.                                                    In late November of each year, NMFS
                                                      category QS in Area 2C could put                                                                              would estimate the pounds of RFQ that
                                                                                                              Revisions for the Calculation of the
                                                      market pressure on other parts of the                                                                         the QS units held by the RQE on
                                                                                                              Charter Catch Limit and Establishment
                                                      Area 2C QS market that are important                                                                          October 1 would yield in the upcoming
                                                                                                              of Annual Management Measures
                                                      for entry and diversity. While C-                                                                             year based on the current year’s QS:IFQ
                                                      category QS makes up about 79 percent                      This proposed rule would also modify               ratio and the IPHC’s preliminary
                                                      of the total Area 2C QS pool, B-category                several regulations to facilitate the                 estimate of the possible combined catch
                                                      QS represents a relatively small                        proper accounting of RFQ. This section                limits in Areas 2C and 3A.
                                                      percentage (4.5 percent, as shown in                    describes the process that would be                      In December of each year, the Council
                                                      Table 4–19 of the Analysis). Therefore,                 used annually to calculate the amount                 would recommend a range of potential
                                                      the Council recommended and NMFS                        of RFQ and establish annual                           charter management measures for Areas
                                                      proposes limiting RQE QS purchases in                   management measures.                                  2C and 3A that would be expected to
                                                      Area 2C to 10 percent of the B-category                    On October 1 of each year, the RQE’s               limit charter harvests in an area to the
                                                      QS pool (based on the 2015 QS pool).                    QS holdings would be used as the basis                estimated charter catch limit plus the
                                                      Because restrictions on B-category QS                   for estimating the number of RFQ                      estimated supplemental pounds
                                                      transfers would limit the QS market                     pounds to add to the charter allocation               provided by the RFQ.
                                                      opportunity for the RQE in Area 2C, the                 under the CSP for the following                          NMFS proposes revising
                                                      Council recommended and NMFS                            calendar year. This estimated combined                § 679.40(c)(2) to clarify that NMFS
                                                      proposes some limited opportunity in                    allocation would be used to recommend                 would use the QS pool for the IFQ
                                                      the D-category market to relieve some of                the charter fishery management                        regulatory area, including Areas 2C and
                                                      the potential market pressure on the                    measures for the following year. The                  3A, on record with the Alaska Region,
                                                      remaining C-category QS (10 percent of                  process and timeline for setting annual               NMFS, on January 15 of that year for
                                                      the D-category QS pool in Area 2C).                     management measures would remain                      purposes of calculating the amount of
                                                      These provisions would ensure that                      unchanged. Once the IPHC annual                       IFQ and RFQ for that regulatory area for
                                                      most of the B- and D-category QS are                    management measures are approved,                     that year. This proposed revision to
                                                      used in the commercial IFQ fishery and                  typically in late February or early                   move the date of record from January 31
                                                      are intended to balance entry-level                     March, NMFS would issue pounds of                     to January 15 of each year would ensure
                                                      opportunities and fleet diversity in the                RFQ to the RQE based on the number                    that the IPHC would be able to
                                                      commercial IFQ fishery, with potential                  of QS units held by the RQE on October                determine the amount of IFQ and RFQ
                                                      benefits to the charter fishery from                    1 of the previous year to augment the                 and the total allocations that would be
                                                      transfers of QS to the RQE. The                         charter catch limit established under the             assigned to the commercial IFQ and
                                                      proposed vessel category restrictions are               CSP. The Council recommended and                      charter fisheries, respectively, when it
                                                      discussed in more detail in Section                     NMFS proposes establishing October 1                  adopts annual management measures at
                                                      4.8.1.2.5 of the Analysis.                              as the date for determining how many                  its annual meeting in late January.
                                                         NMFS proposes adding a new                           QS units would yield RFQ so that the                     NMFS also proposes revising
                                                      paragraph at § 679.42(f)(8) describing                  Council’s Charter Committee and the                   § 300.65(c) to authorize the use of RFQ
                                                                                                              Council would be able to estimate the
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                                                      RQE use limits for specific vessel                                                                            in the charter fishery, and to describe
                                                      categories of QS.                                       pounds of RFQ that the RQE would                      how and when QS holdings by the RQE
                                                                                                              receive in the following year and be able             would be calculated and added to the
                                                      Block Restrictions                                      to factor that amount into its                        charter catch limit under the CSP.
                                                        In addition to vessel category                        recommendations for charter
                                                      restrictions for the RQE, the Council                   management measures in the following                  Redistribution of Excess RFQ
                                                      recommended and NMFS proposes                           year.                                                   The Council recommended and
                                                      limits on the size of QS blocks that the                   The RFQ would not be issued to the                 NMFS proposes a temporary
                                                      RQE could purchase. The RQE would be                    RQE in the upcoming fishing year for                  redistribution of RFQ from the RQE to
                                                      prohibited from purchasing blocks of                    any QS that the RQE received by                       the commercial IFQ fishery if the RQE


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                                                                             Federal Register / Vol. 82, No. 190 / Tuesday, October 3, 2017 / Proposed Rules                                          46025

                                                      holdings of QS provide a charter harvest                of available RFQ and the amount                       holders that held QS in the year prior
                                                      opportunity greater than the unguided                   needed for the charter fishery would be               to the redistribution, it is possible that
                                                      recreational management measures in                     excess RFQ. NMFS would redistribute                   a person could hold QS in the year prior
                                                      either Area 2C or 3A. The current                       the amount of excess RFQ using the                    to the redistribution, subsequently
                                                      management measure for unguided                         process recommended by the Council.                   transfer that QS before NMFS issues IFQ
                                                      recreational anglers in both areas is a                    Under this proposed rule, 50 percent               for the following year, and receive IFQ
                                                      daily bag limit of two halibut of any                   of any RFQ in excess of the amount                    from the redistribution even though that
                                                      size. Under this proposed rule, NMFS                    needed to achieve the unguided                        person does not hold QS. Issuing IFQ to
                                                      would not issue annual RFQ in excess                    recreational management measures in                   persons who do not currently hold QS
                                                      of the adjusted charter catch limit (the                either Area 2C or 3A would be                         would be contrary to the current
                                                      sum of the annual guided sport catch                    redistributed as IFQ to all catcher vessel            functioning of the IFQ Program (i.e., IFQ
                                                      limit under the CSP and RFQ from the                    QS holders in the applicable area (Area               is issued to persons who hold QS).
                                                      RQE’s QS holdings on October 1 of the                   2C or Area 3A) who held not more than                    Under this proposed rule, the
                                                      previous year) needed for charter                       32,333 QS units in Area 2C, and 47,469                remaining 50 percent of RFQ in excess
                                                      anglers to obtain the unguided                          QS units in Area 3A (i.e., the amount of              of the amount needed to achieve the
                                                      recreational management measures for                    QS that yielded 2,000 pounds of IFQ in                unguided sport management measures
                                                      that area.                                              2015) in the year prior to the                        in either Area 2C or 3A would be
                                                         The Council and the Analysis use the                 redistribution, and who also held that                redistributed equally among all CQEs
                                                      term ‘‘reallocate’’ to describe the                     QS eligible for redistribution during the             that held halibut QS in the applicable
                                                      temporary (1-year) redistribution of                    year that the redistribution occurs. This             area (Area 2C or Area 3A) in the year
                                                      excess RFQ to the commercial IFQ                        50 percent would be redistributed                     prior to the redistribution as well as in
                                                      fishery. NMFS notes that the term                       among qualified QS holders in                         the year that the redistribution occurs.
                                                      reallocate is often used in other                       proportion to their QS holdings.                      If no CQE held QS in the applicable area
                                                      regulations to describe a permanent                        The Council’s recommendation stated                (Area 2C or Area 3A) in the preceding
                                                      transfer of harvest privileges from one                 that 50 percent of excess RFQ should be               year and in the year that the
                                                      group of participants to another. NMFS                  redistributed ‘‘equally’’ to all qualified            redistribution occurs, this 50 percent of
                                                      uses the term redistribute in this                      QS holders. During Council                            the excess RFQ would not be
                                                      proposed rule to clarify for fishery                    deliberations, NMFS staff and the                     redistributed in that area. In other
                                                      participants and the public that the                    Council clarified how NMFS would                      words, the excess RFQ would be
                                                      distribution of excess RFQ to                           implement the Council’s                               unfished or ‘‘left in the water’’ for
                                                      commercial IFQ fishery participants is                  recommendation. NMFS proposes to                      conservation. The rationale for requiring
                                                      in effect for one year, and is not a                    implement this provision by dividing                  the CQE to hold QS in the year prior to
                                                      permanent reallocation.                                 the amount of IFQ available for                       the redistribution, and in the year the
                                                         The Council recommended and                          redistribution to qualified QS holders by             redistribution occurs is the same as the
                                                      NMFS proposes the following process                     the total amount of QS units held by all              rationale for the redistribution to
                                                      for the temporary redistribution of RFQ                 qualified QS holders. For example, if                 catcher vessel QS holders described
                                                      (as IFQ) to the commercial IFQ fishery,                 there were 50,000 pounds of excess RFQ                above. NMFS solicits comments from
                                                      in the event that the RQE has QS                        to be redistributed as IFQ in Area 3A in              the public on whether excess RFQ
                                                      holdings in excess of the amount                        calendar year 2025 among QS holders                   should be redistributed to eligible
                                                      needed to provide charter anglers with                  who held not more than 47,469 QS units                catcher vessel QS holders and CQEs
                                                      harvest opportunities equal to those for                in the year prior to the redistribution               based on this proposed methodology.
                                                      unguided recreational anglers. Each                     (2024), and in the year during which the                 The Council and NMFS considered
                                                      January, the IPHC will recommend                        redistribution occurs (2025), and the                 options that would not have required a
                                                      charter fishery management measures                     total sum of all QS held by those                     redistribution of RFQ as only IFQ, and
                                                      for Areas 2C and 3A that are expected                   qualified QS holders was 500,000 units,               alternative methods to redistribute RFQ
                                                      to limit charter harvest to the adjusted                then each of these qualified QS holders               as IFQ. The Council recommended and
                                                      charter catch limit for each area (the                  would receive an additional 1/10 of a                 NMFS proposes the reallocation
                                                      sum of the annual guided sport catch                    pound of IFQ in 2025 for each QS unit                 procedures in this rule to provide
                                                      limit under the CSP and the estimated                   held. NMFS does not issue IFQ in less                 additional harvest opportunity among
                                                      amount of RFQ from the RQE’s QS                         than one pound increments, therefore                  holders of small amounts of QS as well
                                                      holdings on October 1 of the previous                   NMFS would round the amount of                        as to CQEs who hold QS on behalf of
                                                      year).                                                  redistributed IFQ to the nearest pound                coastal community residents. Section
                                                         After the IPHC recommends charter                    for each qualified QS holder. Section                 4.8.1.4 of the Analysis describes the
                                                      fishery management measures, NMFS                       4.8.1.3 of the Analysis provides                      options considered by the Council and
                                                      will determine if a redistribution of                   additional information on the method                  NMFS and notes that based on the
                                                      excess RFQ is necessary. If the IPHC has                NMFS would use to redistribute excess                 current levels of halibut abundance and
                                                      adopted charter fishery management                      RFQ.                                                  the cumulative use limits in Area 2C
                                                      measures that are equivalent to the                        This proposed rule would require the               and 3A, it is unlikely that the RQE
                                                      unguided recreational management                        QS holder to hold the QS in the year                  could hold an amount of QS that would
                                                      measures in either Area 2C or 3A (e.g.,                 prior to the redistribution to meet the
asabaliauskas on DSKBBXCHB2PROD with PROPOSALS




                                                                                                                                                                    result in the need for redistribution of
                                                      a daily bag limit of two halibut of any                 clear intent of the Council, as well as in            excess RFQ.
                                                      size), NMFS would determine the                         the year that the redistribution occurs in               NMFS proposes to add regulations
                                                      amount of RFQ that would be needed to                   order to ensure the proper                            under § 679.40(c) to describe how
                                                      account for charter harvest in Area 2C                  administration of this provision. NMFS                excess RFQ would be redistributed.
                                                      and Area 3A under the recommended                       proposes this requirement to ensure that
                                                      management measures and issue that                      IFQ is issued to persons who hold the                 Cost Recovery Fees
                                                      amount as RFQ to supplement the                         underlying QS eligible to receive the                   The Magnuson-Stevens Act at section
                                                      charter fishery allocation under the CSP.               redistribution. If NMFS were to                       304(d)(2)(A) requires that cost recovery
                                                      The difference between the total amount                 redistribute RFQ as IFQ only to QS                    fees be collected for the costs directly


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                                                      46026                  Federal Register / Vol. 82, No. 190 / Tuesday, October 3, 2017 / Proposed Rules

                                                      related to the management, data                         October 1 of the prior year would be                  Annual Report
                                                      collection, and enforcement of any                      subject to the IFQ cost recovery fee.                    The Council recommended and
                                                      limited access privilege programs. This                    For purposes of cost recovery, the                 NMFS proposes that the RQE file an
                                                      includes programs such as the                           RQE would pay fees on all resulting                   annual report with the Council by
                                                      commercial halibut IFQ Program, under                   pounds of RFQ, even if the charter                    January 31 of each year that details the
                                                      which a dedicated allocation is                         fishery’s harvest was under its catch                 administrative activities and business
                                                      provided to IFQ permit holders. Fees                    limit in Area 2C or 3A for that year. In              operations of the RQE during the prior
                                                      owed are a percentage, not to exceed 3                  December of each year, NMFS would (1)                 year for each year that it holds
                                                      percent, of the ex-vessel value of fish                 determine the standard prices and the                 commercial QS. Although not
                                                      landed and debited from IFQ permits.                    cost recovery fee percentage; (2)                     specifically requested by the Council,
                                                      Each year, NMFS sends fee statements                    announce the standard prices and the                  NMFS proposes that the annual report
                                                      to IFQ holders whose annual IFQ was                     cost recovery fee percentage in the                   also be submitted to NMFS for reasons
                                                      landed; those holders must remit fees by                Federal Register; and (3) issue the RQE               described below.
                                                      January 31 of the following year. Under                 a fee assessment. The RFQ fee                            The RQE would be required to
                                                      this proposed rule, the RQE would be
                                                                                                              assessment would be based on the                      include the following general
                                                      responsible for all cost recovery fees on
                                                                                                              number of RFQ pounds added to either                  information in its annual report: (1) Any
                                                      their annual RFQ.
                                                         NMFS calculates IFQ cost recovery                    the Area 2C or 3A charter catch limit                 changes to the bylaws, board of
                                                      fee assessments in November each year.                  based on QS holdings as of October 1 of               directors, or other key management
                                                      To determine cost recovery fees for IFQ                 the prior year multiplied by the                      personnel of the RQE during the
                                                      holders, NMFS uses data reported by                     standard price for Area 2C or Area 3A,                preceding year; (2) amounts and
                                                      Registered Buyers to compute annual                     and multiplied by the cost recovery fee               descriptions of annual administrative
                                                      standard ex-vessel IFQ prices by month                  percentage (around 3 percent in recent                expenses; (3) amounts and descriptions
                                                      and port (or, if confidential, by port                  years). The cost recovery fee payment                 of funds spent on conservation,
                                                      group). NMFS publishes these standard                   from the RQE to NMFS would be due                     research, and promotion of the halibut
                                                      prices in the Federal Register each year.               by January 31 of each year.                           resource and a summary of the results;
                                                      For example, NMFS published the 2016                       Based on NMFS policy, only                         and (4) amounts and descriptions of all
                                                      standard ex-vessel IFQ prices in the                    ‘‘incremental’’ costs, i.e., those incurred           other expenses. Additionally, the RQE
                                                      Federal Register on December 13, 2016                   as a result of IFQ management, are                    would be required to submit the
                                                      (81 FR 89990). NMFS uses the standard                   assessable as cost recovery fees. The                 following information by regulatory
                                                      prices to compute the total annual                      costs to develop the regulations,                     area: (1) The total amount of halibut QS
                                                      fishery value of the IFQ fisheries. NMFS                accounting, and reporting systems for                 by vessel category and block held by the
                                                      determines the fee percentage by                        the RQE Program would be considered                   RQE at the start of the calendar year, on
                                                      dividing management, data collection,                   incremental and extensions of the IFQ                 October 1, and at the end of the calendar
                                                      and enforcement costs for the IFQ                       Program and would be recoverable                      year; (2) a list of all transfers (purchases,
                                                      Program by total IFQ fishery value. In                  under cost recovery. Agency costs                     sales, and any other transfers) of halibut
                                                      recent years, IFQ costs have exceeded 3                 related to development of the RQE                     QS, including transaction prices if
                                                      percent; therefore, the cost recovery fee               Program will be included in the IFQ                   applicable; and (3) the number of CHPs
                                                      percentage has been set at the maximum                  cost recovery fee assessment. Recently,               and associated angler endorsements
                                                      of 3 percent. Unlike commercial IFQ,                    the costs to administer the IFQ Program               purchased and held by the RQE.
                                                      which is only subject to cost recovery                  has been at or above the 3 percent cost                  The Council did not specify what
                                                      fees when landed, the RFQ held by the                   recovery fee limit; therefore, additional             would happen if the RQE did not
                                                      RQE would be considered ‘‘used’’ when                   costs due to the development of the RQE               submit a timely and complete annual
                                                      issued, because management measures                     Program would likely not increase the                 report. Section 679.41(c)(10)(ii) requires
                                                      will be based on the combined amount                    cost recovery fee percentage for IFQ                  a CQE to submit a timely and complete
                                                      of the RFQ and charter fishery catch                    permit holders. Additional information                annual report to NMFS before a transfer
                                                      limit in each regulatory area.                          about assessing cost recovery fees for an             of QS will be approved or IFQ will be
                                                         In years when the RQE holds QS and                   RQE is provided in Section 4.8.1.5.1 of               issued. NMFS proposes a similar
                                                      the RFQ is issued to augment the charter                the Analysis.                                         requirement for the RQE at new
                                                      fishery’s catch limit, the charter fishery                                                                    paragraph § 679.41(c)(11)(i). If the RQE
                                                      would be effectively using all of this                     NMFS proposes revising regulations                 held QS in the previous year and has
                                                      RFQ; therefore, the RQE would pay cost                  throughout § 679.45 to incorporate the                not submitted a timely and complete
                                                      recovery fees on all of its RFQ. Since all              RQE into the IFQ Program cost recovery                annual report by the January 31
                                                      annual RFQ issued to the RQE would be                   fee estimation and collection process.                deadline, NMFS would not approve a
                                                      considered ‘‘used,’’ NMFS would levy                    General Reporting                                     transfer of QS or issue RFQ until the
                                                      the fee calculated for the RQE’s annual                                                                       report is submitted. To confirm receipt
                                                      RFQ pounds that are issued, rather than                   Because all RFQ would be considered                 of the report, NMFS is proposing that
                                                      estimating RFQ harvest at each point of                 landed or used by the RQE in the year                 the RQE submit the annual report to
                                                      charter landings. The fee would be                      for which it is issued and the standard               both the Council and NMFS. NMFS
                                                      calculated using the standard price                     prices would be applied to pounds of
asabaliauskas on DSKBBXCHB2PROD with PROPOSALS




                                                                                                                                                                    seeks public comment on whether these
                                                      calculated for Area 2C or 3A and the                    RFQ, the RQE would not be required to                 requirements, similar to those for CQEs,
                                                      RFQ held by the RQE. This is similar to                 complete the recordkeeping and                        should apply to the RQE.
                                                      the method used to apply an ex-vessel                   reporting requirements described for the                 NMFS proposes adding § 679.5(v) to
                                                      value for GAF. The IFQ cost recovery                    IFQ Program at § 679.5(1). The RQE                    include the RQE annual report
                                                      fee could be levied on the RQE each                     would be exempt from submitting the                   requirements.
                                                      year the RQE holds QS, and the                          IFQ Prior Notice of Landing, Product
                                                      resulting RFQ is issued to augment the                  Transfer, IFQ Landing, IFQ                            Other Regulatory Changes
                                                      catch limit in the charter fishery. All                 Transshipment Authorization, and IFQ                    NMFS proposes revisions throughout
                                                      holdings acquired by the RQE on                         Departure reports.                                    the IFQ regulations at 50 CFR part 679


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                                                                             Federal Register / Vol. 82, No. 190 / Tuesday, October 3, 2017 / Proposed Rules                                          46027

                                                      that refer to ‘‘an IFQ permit holder’’ to               profit corporation) for the RQE.                      fishing for halibut in U.S. Convention
                                                      also include the term ‘‘RQE’’ where                     Likewise, the Council did not                         waters as long as those regulations do
                                                      applicable.                                             recommend and NMFS does not                           not conflict with IPHC regulations. The
                                                         NMFS proposes revisions throughout                   propose regulations regarding the                     Halibut Act, at sections 773c(a) and (b),
                                                      50 CFR part 679 that refer to the IFQ                   acquisition of funds the RQE may use to               provides the Secretary of Commerce
                                                      permit that also pertain to the RQE to                  purchase QS. Section 4.8.1.1 of the                   with the general responsibility to carry
                                                      include the term ‘‘RFQ permit account.’’                Analysis describes the different types of             out the Convention with the authority
                                                      NMFS proposes these revisions because                   non-profit structures that an RQE could               to, in consultation with the Secretary of
                                                      the RQE would not be issued an IFQ                      use, and how those non-profits may use                the department in which the U.S. Coast
                                                      fishing permit. Instead, NMFS proposes                  and receive funds.                                    Guard is operating, adopt such
                                                      establishing an RFQ permit account for                                                                        regulations as may be necessary to carry
                                                                                                              Limit on Use of RQE Funds
                                                      the RQE that would be used to                                                                                 out the purposes and objectives of the
                                                      administer RFQ as described in this                       The Council did not recommend and                   Convention and the Halibut Act. This
                                                      proposed rule.                                          NMFS does not propose regulations                     proposed rule is consistent with the
                                                         NMFS also proposes revisions                         regarding the use of funds obtained by                Halibut Act and other applicable laws.
                                                      throughout 50 CFR part 679 that refer to                the RQE. However, the Council did                        This proposed rule has been
                                                      IFQ to include the term ‘‘RFQ’’ when                    indicate how funds obtained by the RQE                determined to be not significant for the
                                                      the regulations refer to IFQ and RFQ.                   could be used to meet the objectives of               purposes of Executive Order 12866.
                                                         These minor changes are shown in the                 the RQE Program. The Council
                                                                                                              indicated that it intended for the RQE to             Regulatory Impact Review (RIR)
                                                      proposed regulatory text.
                                                                                                              use funds primarily for the acquisition                  An RIR was prepared to assess all
                                                      Appeals                                                 of commercial halibut QS; halibut                     costs and benefits of available regulatory
                                                        This proposed rule would change                       conservation and research; promotion of               alternatives. The RIR considers all
                                                      several references within §§ 679.41 and                 the halibut resource; and administrative              quantitative and qualitative measures. A
                                                      679.45 that describe the former                         costs. NMFS notes that this proposed                  copy of this analysis is available from
                                                      procedure for appealing an IAD to the                   rule would require the RQE to submit an               NMFS (see ADDRESSES). The Council
                                                      NOAA Fisheries’ Alaska Office of                        annual report describing its annual                   recommended and NMFS proposes this
                                                      Administrative Appeals. Those                           expenditures (described in a previous                 rule based on those measures that
                                                      procedures were described at to                         section of this preamble) to NMFS and                 maximized net benefits to the Nation.
                                                      § 679.43. NOAA Fisheries has                            the Council. Based on information                     Specific aspects of the economic
                                                      centralized the appeals process in the                  received in this annual report, the                   analysis are discussed below in the
                                                      National Appeals Office, which operates                 Council could choose to initiate a                    Initial Regulatory Flexibility Analysis
                                                      out of NOAA Fisheries’ headquarters in                  subsequent action that would limit the                section.
                                                      Silver Spring, MD. The National                         use of funds held by the RQE in the                   Initial Regulatory Flexibility Analysis
                                                      Appeals Office is now charged with                      future if the RQE’s annual reports
                                                      processing appeals that were filed with                 indicate that RQE funds are being used                   An Initial Regulatory Flexibility
                                                      the Office of Administrative Appeals,                   in a manner that is contrary to the                   Analysis (IRFA) was prepared for this
                                                      Alaska Region. The procedure for                        Council’s intent described above.                     action, as required by section 603 of the
                                                      appealing an IAD through the National                                                                         Regulatory Flexibility Act (RFA). The
                                                                                                              Purchase of Charter Halibut Permits by                IRFA describes the economic impact
                                                      Appeals Office is at 15 CFR part 906 (79
                                                                                                              an RQE (§ 300.67)                                     this proposed rule, if adopted, would
                                                      FR 7056, February 6, 2014). This
                                                      proposed rule would update the                             The Council did not specify limits on              have on small entities. The IRFA
                                                      regulations referring to appeals                        the acquisition of CHPs by the RQE;                   describes the action; the reasons why
                                                      procedures for the IFQ Program to refer                 therefore, the RQE would be subject to                this action is proposed; the objectives
                                                      to 15 CFR part 906 instead of to                        regulations that apply to any other                   and legal basis for this proposed rule;
                                                      § 679.43.                                               person, as defined at § 300.61, for                   the number and description of directly
                                                                                                              purposes of purchasing and holding                    regulated small entities to which this
                                                      Council Intent Regarding the                            CHPs. Section 300.67(j) states that a                 proposed rule would apply; the
                                                      Functioning of the RQE                                  person may not own, hold, or control                  recordkeeping, reporting, and other
                                                        During the development of the RQE                     more than five CHPs, with limited                     compliance requirements of this
                                                      Program, the Council and NMFS                           exceptions. The RQE would be                          proposed rule; and the relevant Federal
                                                      considered, but did not propose                         authorized to purchase and hold up to                 rules that may duplicate, overlap, or
                                                      regulations that would address RQE                      five transferable CHPs in both regulatory             conflict with this proposed rule. The
                                                      funding, limits on the use of RQE funds,                areas combined. Any purchases or sales                IRFA also describes significant
                                                      and the purchase of CHPs by the RQE.                    of CHPs by the RQE would be required                  alternatives to this proposed rule that
                                                      This section of the preamble provides                   to be reported in the RQE’s annual                    would accomplish the stated objectives
                                                      the public with a description of the                    report to the Council and NMFS.                       of the Magnuson-Stevens Act, and any
                                                      overall intent of the Council regarding                                                                       other applicable statutes, and that
                                                                                                              Classification                                        would minimize any significant
                                                      RQE funding and limits on the use of
                                                                                                                 Regulations governing the U.S.                     economic impact of this proposed rule
asabaliauskas on DSKBBXCHB2PROD with PROPOSALS




                                                      RQE funds, and notes that NMFS would
                                                      regulate the purchase of CHPs by the                    fisheries for Pacific halibut are                     on small entities. The description of the
                                                      RQE consistent with existing                            developed by the IPHC, the Pacific                    proposed action, its purpose, and the
                                                      regulations.                                            Fishery Management Council, the North                 legal basis are explained in the
                                                                                                              Pacific Fishery Management Council,                   preamble and are not repeated here. A
                                                      RQE Funding                                             and the Secretary of Commerce. Section                summary of the IRFA follows. A copy of
                                                        The Council did not recommend and                     5 of the Halibut Act (16 U.S.C. 773c)                 the IRFA is available from NMFS (see
                                                      NMFS does not propose regulations that                  allows the Regional Council having                    ADDRESSES).
                                                      would define the specific type of                       authority for a particular geographical                  The Small Business Administration
                                                      incorporation (e.g., a 501(c)(3) non-                   area to develop regulations governing                 (SBA) criteria for determining whether


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                                                      46028                  Federal Register / Vol. 82, No. 190 / Tuesday, October 3, 2017 / Proposed Rules

                                                      an entity is ‘‘small’’ for purposes of the              landings by vessel. Of those, 11 vessels              1.2 percent of the QS in Area 3A.
                                                      RFA are discussed in more detail in                     would be considered large entities                    Cumulative use limits for the charter
                                                      Section 5.3 of the Analysis. The SBA                    because they showed revenues that                     fishery are proposed to limit the
                                                      has established a small business size                   exceeded the $11 million threshold. The               combined amount of commercial QS
                                                      standard for businesses, including their                remaining 801 vessels would be                        held by RQE and transferred under GAF
                                                      affiliates, whose primary industry is                   considered directly regulated small                   (10 percent in Area 2C and 12 percent
                                                      ‘‘finfish fishing’’ (see 50 CFR 200.2).                 entities for this proposed rule. See                  in Area 3A). Proposed transfer limits
                                                      Commercial halibut QS holders are                       Section 5.6 of the Analysis for more                  include prohibiting the RQE from
                                                      considered finfish fishers under the                    information.                                          purchasing D-category QS in Area 3A
                                                      RFA. A business primarily involved in                                                                         and limiting it to holding 10 percent of
                                                                                                              Description of Significant Alternatives
                                                      finfish fishing (North American Industry                                                                      D-category QS in Area 2C, and
                                                                                                              That Minimize Adverse Impacts on
                                                      Classification Systems code 11411) is                                                                         restricting purchase of B-category QS to
                                                                                                              Small Entities
                                                      classified as a small business if it is                                                                       no more than 10 percent in Area 2C and
                                                      independently owned and operated, is                       This proposed action is expected to                10 percent of B-category QS in Area 2C.
                                                      not dominant in its field of operation                  have distributional impacts to the                    Block restrictions would prohibit the
                                                      (including its affiliates), and has                     identified directly regulated small                   RQE from purchasing small blocks of
                                                      combined annual gross receipts not in                   entities. Transfers of QS would be                    QS. This proposed rule would seek to
                                                      excess of the applicable size standard                  voluntary among all the small, directly               derive the greatest net benefit for small
                                                      for all its affiliated operations                       regulated entities identified in the IRFA.            regulated entities by increasing market
                                                      worldwide. On December 29, 2015,                        The preferred alternative is the only                 opportunities in the charter fishery
                                                      NMFS issued a final rule establishing                   alternative considered that would give                while ameliorating adverse impacts that
                                                      the small business size standard of $11                 current halibut QS holders an additional              could occur for QS holders and CQEs in
                                                      million in annual gross receipts for all                opportunity to transfer their QS and the              the commercial IFQ fishery if QS
                                                      businesses in the commercial fishing                    RQE an opportunity to form and obtain                 holdings by the RQE were not limited.
                                                      industry (80 FR 81194). This new size                   QS. As noted earlier in this preamble,                Overall, the net benefits to directly
                                                      standard applies to all businesses                      the Council and NMFS considered the                   regulated small entities are expected to
                                                      included under the North American                       status quo and the preferred alternative.             be positive.
                                                      Industry Classification Systems code                    However, under the preferred
                                                                                                              alternative, the Council and NMFS                     Duplicate, Overlapping, or Conflicting
                                                      11411 for purposes of RFA compliance
                                                                                                              considered a wide range of potential                  Federal Rules
                                                      only. The new size standard became
                                                      effective July 1, 2016, and was used to                 limitations on the amount and type of                   NMFS has not identified any
                                                      estimate the number of directly                         QS that could be held by the RQE. The                 duplication, overlap, or conflict
                                                      regulated small entities in this IRFA.                  wide variation in the options considered              between this proposed action and
                                                         For this proposed action, the pool of                under the preferred alternative provided              existing Federal rules.
                                                      small, directly regulated entities would                the Council and NMFS with a broad
                                                                                                                                                                    Recordkeeping, Reporting, and Other
                                                      be limited to those entities that would                 range of potential policy choices to
                                                                                                                                                                    Compliance Requirements
                                                      be engaging in QS transfer (i.e., QS                    minimize the adverse impacts.
                                                      holders, including CQEs, and a future                      Under the preferred alternative, the                  The RFA requires a description of the
                                                      RQE). CQEs and the proposed RQE                         RQE representing the charter fishery                  projected reporting, recordkeeping, and
                                                      would be considered a small entity, or                  would not be expected to participate in               other compliance requirements of the
                                                      more specifically, a small organization                 the IFQ Program (and purchase halibut                 proposed rule, including an estimate of
                                                      as defined by the RFA. A small                          QS) if it did not benefit the charter                 the classes of small entities that will be
                                                      organization is ‘‘any not-for-profit                    fishery as a whole. QS holders,                       subject to the requirement and the type
                                                      enterprise which is independently                       including CQEs, would not be expected                 of professional skills necessary for
                                                      owned and operated and is not                           to engage in a QS transaction with the                preparation of the report or record. This
                                                      dominant in its field.’’ In addition, no                RQE if it did not benefit from that                   proposed rule would require new
                                                      CQE has more than $11 million in                        transfer. However, there is a potential               information collections from an RQE.
                                                      annual gross receipts. The RQE that is                  for the RQE to affect the QS market by                Under this proposed rule, a non-profit
                                                      proposed under this action would not                    increasing competition in the market.                 entity that wants to become an RQE
                                                      be expected to have $11 million in                      This increased competition could limit                would need to complete an application
                                                      annual gross receipts because it does not               the ability for persons in the commercial             and submit it to NMFS for approval.
                                                      currently hold halibut QS that would                    IFQ fishery to expand their QS holdings               This application would require
                                                      yield $11 million in annual gross                       by increasing the market price of QS or               submission of the entity’s articles of
                                                      receipts. Commercial halibut QS holders                 limiting the amount of QS available to                incorporation, the corporate by-laws, a
                                                      would also be considered directly                       commercial QS holders and CQEs. This                  list of key personnel, including the
                                                      regulated. Most of the QS holders in the                potential negative impact is considered               Board of Directors, officers,
                                                      halibut IFQ Program are small entities.                 in the Regulatory Impact Review                       representatives, and managers. NMFS
                                                                                                              (Section 4.8.2 of the Analysis). To                   would approve the first complete RQE
                                                      Number and Description of Small                         mitigate the expected effects on the QS               application it receives.
                                                      Entities Regulated by This Proposed                     market, the Council recommended and                      If the RQE wants to receive or transfer
asabaliauskas on DSKBBXCHB2PROD with PROPOSALS




                                                      Rule                                                    NMFS proposes provisions to limit the                 halibut QS, it would need to use the
                                                         NMFS considers commercial halibut                    amount and types of QS that could be                  ‘‘Application for Transfer QS To or
                                                      fishing vessels as proxies for small                    acquired by the RQE, annually and                     From an RQE’’ available on the NMFS
                                                      entities because IFQ from more than one                 cumulatively.                                         Alaska Region Web site at https://
                                                      QS holder is often fished from the same                    Specifically, the Council’s preferred              alaskafisheries.noaa.gov/. Additionally,
                                                      vessel. NMFS estimates that 812 vessels                 alternative (and this proposed rule)                  the RQE would be required to submit an
                                                      across all IPHC regulatory areas landed                 would create an annual transfer                       annual report detailing its activities to
                                                      halibut in 2014, the most recent year of                limitation of 1 percent of the QS in Area             NMFS and the Council. The RQE would
                                                      complete data on the value of halibut                   2C and an annual transfer limitation of               also be subject to cost recovery fees so


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                                                                             Federal Register / Vol. 82, No. 190 / Tuesday, October 3, 2017 / Proposed Rules                                              46029

                                                      it would need to comply with the                        requirements, Russian Federation,                        (iv) In the applicable Commission
                                                      existing cost recovery fee payment                      Transportation, Treaties, Wildlife.                   regulatory area, either Area 2C or Area
                                                      requirements for IFQ permit holders.                                                                          3A, the sum of IFQ halibut equivalent
                                                                                                              50 CFR Part 679
                                                      These recordkeeping and reporting                                                                             pounds, as defined in § 679.2 of this
                                                      requirements are expected to be                           Alaska, Fisheries, Reporting and                    title, from the transfer of IFQ to GAF
                                                      administrative in nature.                               recordkeeping requirements.                           and the pounds of RFQ issued to the
                                                                                                                Dated: September 25, 2017.                          RQE during a calendar year does not
                                                      Collection-of-Information Requirements
                                                                                                              Samuel D. Rauch, III,                                 exceed an amount that is greater than
                                                        This proposed rule contains                                                                                 the amount derived from:
                                                                                                              Deputy Assistant Administrator for
                                                      collection-of-information requirements                  Regulatory Programs, National Marine                     (A) 5,947,740 units of Area 2C QS; or
                                                      subject to review and approval by the                   Fisheries Service.                                       (B) 22,187,161 units of Area 3A QS.
                                                      Office of Management and Budget                                                                               *      *     *     *    *
                                                      (OMB) under the Paperwork Reduction                       For the reasons set out in the
                                                      Act (PRA). NMFS has submitted these                     preamble, 50 CFR parts 300 and 679 are                PART 679—FISHERIES OF THE
                                                      requirements to OMB for approval                        proposed to be amended as follows:                    EXCLUSIVE ECONOMIC ZONE OFF
                                                      under a temporary new information                                                                             ALASKA
                                                                                                              PART 300—INTERNATIONAL
                                                      collection, to be merged after approval                 FISHERIES REGULATIONS                                 ■ 3. The authority citation for part 679
                                                      with OMB Control Number 0648–0272.
                                                                                                                                                                    continues to read as follows:
                                                      Public reporting burden is estimated to                 Subpart E—Pacific Halibut Fisheries
                                                      average per response: 200 hours for                                                                             Authority: 16 U.S.C. 773 et seq.; 1801 et
                                                      Application for a Non-Profit                                                                                  seq.; 3631 et seq.; Pub. L. 108–447; Pub. L.
                                                                                                              ■ 1. The authority citation for part 300,             111–281.
                                                      Corporation to be Designated as a                       subpart E, continues to read as follows:
                                                      Recreational Quota Entity; 2 hours for                                                                        ■  4. In § 679.2, add definitions for
                                                                                                                  Authority: 16 U.S.C. 773–773k.                    ‘‘Recreational Fishing Quota (RFQ)’’ and
                                                      Application for Transfer of QS To or
                                                      From an RQE; 40 hours for RQE Annual                    ■ 2. In § 300.65:                                     ‘‘Recreational Quota Entity (RQE)’’ in
                                                      Report; 1 minute for electronic                         ■ a. Add paragraph (c)(1)(iii);                       alphabetical order to read as follows:
                                                      submission of cost recovery fee; and 30                 ■ b. Revise paragraph (c)(4)(i); and
                                                                                                              ■ c. Add paragraphs (c)(4)(iii) and                   § 679.2    Definitions.
                                                      minutes for non-electronic fee
                                                      submission for IFQ Permit Holder Fee                    (c)(5)(ii)(D)(1)(iv) to read as follows:              *     *     *     *     *
                                                      Submission Form. Public comment is                                                                               Recreational Fishing Quota (RFQ)
                                                                                                              § 300.65 Catch sharing plan and domestic              means the pounds of halibut issued
                                                      sought regarding: Whether these                         management measures in waters in and off
                                                      proposed collections of information are                                                                       annually to a Recreational Quota Entity
                                                                                                              Alaska.
                                                      necessary for the proper performance of                                                                       to supplement the annual guided sport
                                                                                                              *       *    *    *     *                             catch limit under the catch sharing plan
                                                      the functions of the agency, including                     (c) * * *
                                                      whether the information shall have                                                                            for IFQ regulatory areas 2C and 3A
                                                                                                                 (1) * * *                                          pursuant to § 300.65(c) of this title.
                                                      practical utility; the accuracy of the                     (iii) Authorizes the use of                           Recreational Quota Entity (RQE)
                                                      burden statement; ways to enhance                       Commission regulatory areas 2C and 3A                 means a non-profit entity incorporated
                                                      quality, utility, and clarity of the                    RFQ resulting from halibut QS held by                 under the laws of the State of Alaska,
                                                      information to be collected; and ways to                the RQE as authorized in part 679 to this             recognized as exempt from federal
                                                      minimize the burden of the collection of                title to supplement the annual guided                 income tax by the Internal Revenue
                                                      information, including through the use                  sport catch limit in the corresponding                Service, and authorized by NMFS to
                                                      of automated collection techniques or                   area, pursuant to paragraph (c)(4) of this            participate in the Halibut IFQ Program
                                                      other forms of information technology.                  section.                                              to hold commercial halibut quota share
                                                      Send comments on these or any other                     *       *    *    *     *                             to supplement the annual guided sport
                                                      aspects of the collection of information,                  (4) * * *                                          catch limit in IFQ regulatory areas 2C
                                                      to NMFS (see ADDRESSES), and by email                      (i) The Commission regulatory areas                and 3A under the catch sharing plan
                                                      to OIRA_Submission@omb.eop.gov or                       2C and 3A annual guided sport catch                   pursuant to § 300.65(c) of this title.
                                                      fax to 202– 395–5806.                                   limits are determined by subtracting                  NMFS will authorize only one RQE at
                                                        Notwithstanding any other provision                   wastage from, and adding any pounds of                a time.
                                                      of the law, no person is required to                    RFQ held by an RQE for that area to, the
                                                      respond to, nor shall any person be                                                                           *     *     *     *     *
                                                                                                              allocations in Tables 3 and 4 of this                 ■ 5. In § 679.4, add paragraph (d)(1)(iv)
                                                      subject to penalty for failure to comply                subpart E, adopted by the Commission
                                                      with, a collection of information subject                                                                     to read as follows:
                                                                                                              as annual management measures, and
                                                      to the requirement of the PRA, unless                   published in the Federal Register as                  § 679.4    Permits.
                                                      that collection of information displays a               required in § 300.62.                                 *      *    *    *    *
                                                      currently valid OMB control number.                                                                              (d) * * *
                                                      All currently approved NOAA                             *       *    *    *     *
                                                                                                                 (iii) The amount of QS held by the                    (1) * * *
                                                      collections of information may be                                                                                (iv) RFQ permit account. An RFQ
                                                                                                              RQE for Commission regulatory area 2C
                                                      viewed at http://www.cio.noaa.gov/                                                                            permit account identifies the amount of
asabaliauskas on DSKBBXCHB2PROD with PROPOSALS




                                                                                                              and 3A as of October 1 each year will
                                                      services_programs/prasubs.html.                                                                               RFQ authorized for use by charter vessel
                                                                                                              be the basis for determining the amount
                                                      List of Subjects                                        of RFQ pounds that will be added to the               anglers in Area 2C or Area 3A. The
                                                                                                              annual guided sport catch limit for the               number of pounds of RFQ allocated to
                                                      50 CFR Part 300                                                                                               the RFQ permit account will be added
                                                                                                              corresponding area in the upcoming
                                                        Administrative practice and                           year.                                                 to the annual guided sport catch limit
                                                      procedure, Antarctica, Canada, Exports,                    (5) * * *                                          under the catch sharing plan (described
                                                      Fish, Fisheries, Fishing, Imports,                         (ii) * * *                                         at 50 CFR 300.65(c)) for the appropriate
                                                      Indians, Labeling, Marine resources,                       (D) * * *                                          IFQ regulatory area, Area 2C or Area 3A.
                                                      Reporting and recordkeeping                                (1) * * *                                          *      *    *    *    *


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                                                      46030                  Federal Register / Vol. 82, No. 190 / Tuesday, October 3, 2017 / Proposed Rules

                                                      ■  6. In § 679.5:                                       Fishery Management Council, 605 West                  halibut or sablefish IFQs to each person,
                                                      ■  a. Revise paragraphs (l)(7)(ii)(A) and               4th Ave., Suite 306, Anchorage, AK                    except the RQE, holding unrestricted QS
                                                      (l)(7)(ii)(C) and (D); and                              99501–2252, and to NMFS-Alaska                        halibut or sablefish, respectively, up to
                                                      ■ b. Add paragraphs (l)(9) and (v) to                   Regional Administrator, P.O. Box 21668,               the limits prescribed in § 679.42(e) and
                                                      read as follows:                                        Juneau, AK 99802–1668.                                (f). Each assigned IFQ will be specific to
                                                                                                                 (3) Complete annual report. A                      an IFQ regulatory area and vessel
                                                      § 679.5   Recordkeeping and reporting                   complete annual report contains all                   category, and will represent the
                                                      (R&R).
                                                                                                              general report requirements described in              maximum amount of halibut or
                                                      *       *    *     *     *                              paragraphs (v)(4)(i) through (v)(4)(iv) of            sablefish that may be harvested from the
                                                         (l) * * *                                            this section, and all information specific            specified IFQ regulatory area and by the
                                                         (7) * * *                                            to IFQ regulatory areas 2C and 3A                     person to whom it is assigned during
                                                         (ii) * * *                                           described in paragraphs (v)(5)(i) through             the specified fishing year, unless the
                                                         (A) Applicability. An IFQ permit                     (v)(5)(iii) of this section.                          IFQ assignment is changed by the
                                                      holder who holds an IFQ permit against                     (4) General report requirements. The               Regional Administrator within the
                                                      which a landing was made or an RQE                      RQE must annually report the following                fishing year because of an approved
                                                      that holds RFQ must submit to NMFS a                    information:                                          transfer or because all or part of the IFQ
                                                      complete IFQ Permit Holder Fee                             (i) Any changes to the bylaws, board               is sanctioned for violating rules of this
                                                      Submission Form provided by NMFS.                       of directors, or other key management                 part. The Regional Administrator shall
                                                      *       *    *     *     *                              personnel of the RQE from the                         assign RFQ to the RQE pursuant to
                                                         (C) Completed application. NMFS                      preceding year;                                       paragraph (c)(4) of this section.
                                                      will process an IFQ Permit Holder Fee                      (ii) Amount and description of annual                 (c) Calculation of annual IFQ and
                                                      Submission Form provided that a paper                   administrative expenses;                              RFQ allocations.
                                                      or electronic form is completed by the                     (iii) Amount and description of funds              *       *     *   *     *
                                                      IFQ permit holder or an RQE that holds                  spent on conservation and research,                      (2) QS amounts. For purposes of
                                                      RFQ, with all applicable fields                         including a summary of the results of                 calculating IFQs and RFQ for any
                                                      accurately filled in, and all required                  those expenditures; and                               fishing year, the amount of a person’s
                                                      additional documentation is attached.                      (iv) Amount and description of all                 QS and the amount of the QS pool for
                                                         (D) IFQ landing summary and                          other expenses incurred by the RQE.                   any IFQ regulatory area will be the
                                                      estimated fee liability. NMFS will                         (5) Information by IFQ regulatory                  amounts on record with the Alaska
                                                      provide to an IFQ permit holder and an                  area. For each IFQ regulatory area                    Region, NMFS, on January 15 of that
                                                      RQE that holds RFQ an IFQ Landing                       represented by the RQE, the RQE must                  year.
                                                      and Estimated Fee Liability page as                     annually report the following                         *       *     *   *     *
                                                      required by § 679.45(a)(2). The IFQ                     information:                                             (4) RFQ allocation to RQE—(i) RQE
                                                      permit holder must either accept the                       (i) The total amount of halibut QS by              QS amounts. For purposes of
                                                      accuracy of the NMFS estimated fee                      category and blocks held by the RQE at                calculating RFQ for any fishing year, the
                                                      liability associated with his or her IFQ                the start of the calendar year, on October            amount of halibut QS held by the RQE
                                                      landings for each IFQ permit, or                        1, and at the end of the calendar year;               for either IFQ regulatory area 2C or 3A
                                                      calculate a revised IFQ fee liability in                   (ii) A list of all transfers (purchases or         for the corresponding IFQ regulatory
                                                      accordance with paragraph (l)(7)(ii)(E)                 sales) of halibut QS, including the                   area will be the amounts on record with
                                                      of this section. The IFQ permit holder                  transaction price; and                                the Alaska Region, NMFS on October 1
                                                      may calculate a revised fee liability for                  (iii) A description of the number of               of the year prior.
                                                      all or part of his or her IFQ landings.                 charter halibut permits and number of                    (ii) Calculation of RFQ. The annual
                                                      *       *    *     *     *                              angler endorsements purchased and                     allocation of RFQ halibut to an RQE
                                                         (9) An annual report on RQE activities               held by the RQE.                                      (person r) in IFQ regulatory area 2C or
                                                      must be submitted to NMFS by the RQE                    ■ 7. In § 679.7, add paragraph (f)(3)(i)(C)           3A (area a) will be equal to the product
                                                      as required at § 679.5(v).                              to read as follows:                                   of the annual commercial catch limit as
                                                      *       *    *     *     *                              § 679.7    Prohibitions.                              defined in § 300.61 of this title, and the
                                                         (v) Recreational Quota Entity Program                                                                      QS held by the RQE (specified in
                                                                                                              *     *     *     *    *
                                                      Annual Report—(1) Applicability. The                                                                          paragraph (c)(4)(i) of this section)
                                                                                                                (f) * * *
                                                      RQE must submit a timely and complete                                                                         divided by the QS pool for that area
                                                                                                                (3) * * *
                                                      annual report on the RQE’s                                (i) * * *                                           (specified in paragraph (c)(2) of this
                                                      administrative activities and business                    (C) Use fixed gear as defined in                    section). No overage or underage
                                                      operation for each calendar year that it                § 679.2 to retain halibut RFQ.                        adjustments will be applied to the
                                                      holds halibut recreational fishing quota                                                                      RQE’s annual RFQ. Expressed
                                                                                                              *     *     *     *    *                              algebraically, the annual RFQ halibut
                                                      (RFQ) and quota shares (QS). The RQE                    ■ 8. In § 679.40:
                                                      may combine annual reports on its                                                                             allocation formula is as follows:
                                                                                                              ■ a. Revise paragraph (b);
                                                      holdings of halibut QS and RFQ for IFQ                  ■ b. Revise paragraph (c) heading and
                                                                                                                                                                    RFQra = [fixed gear TACa × (QSra/QS
                                                      regulatory areas 2C and 3A into one                     paragraph (c)(2);                                           poola)]
                                                      report. The RQE must submit annual                                                                               (iii) Excess RFQ. NMFS will not issue
asabaliauskas on DSKBBXCHB2PROD with PROPOSALS




                                                                                                              ■ c. Add paragraphs (c)(4) and (g)(2)(iii);
                                                      report data for the halibut QS and RFQ                  ■ d. Revise paragraph (h)(3)                          the RQE any excess RFQ. Excess RFQ is
                                                      it held during the calendar year. The                   introductory text; and                                the difference between the amount of
                                                      RQE is not required to submit an annual                 ■ e. Add paragraph (h)(3)(iii) to read as             RFQ based on the QS held by the RQE
                                                      report for any calendar year in which it                follows:                                              and the amount of RFQ needed to
                                                      did not hold any halibut QS or RFQ.                                                                           provide charter fishery management
                                                         (2) Time limits and submittal. By                    § 679.40    Sablefish and halibut QS.                 measures that are equivalent to
                                                      January 31, the RQE must submit a                       *     *   *     *     *                               unguided recreational fishery
                                                      complete annual report for the prior                      (b) Annual allocation of IFQ and RFQ.               management measures. If the annual
                                                      calendar year to the North Pacific                      The Regional Administrator shall assign               management measures published


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                                                                             Federal Register / Vol. 82, No. 190 / Tuesday, October 3, 2017 / Proposed Rules                                          46031

                                                      pursuant to § 300.62 of this title specify                 (iii) All annual RFQ halibut issued to             paragraph (n) of this section, only
                                                      charter fishery management measures                     an RQE will be considered landed in the               persons who are IFQ crew members, or
                                                      that are equivalent to the unguided                     year for which it is issued.                          who were initially issued QS assigned
                                                      recreational management measures,                       ■ 9. In § 679.41:                                     to vessel categories B, C, or D, and meet
                                                      NMFS will:                                              ■ a. Redesignate paragraph (c)(11) as                 the eligibility requirements in this
                                                         (A) Calculate the annual allocation of               (c)(12);                                              section, may receive by transfer QS
                                                      halibut RFQ to the RQE as specified in                  ■ b. Add new paragraph (c)(11);                       assigned to vessel categories B, C, or D,
                                                      paragraph (c)(4)(ii) of this section;                   ■ c. Revise paragraphs (d)(1) and (g)(1);             or the IFQ resulting from it.
                                                         (B) Determine the amount of RFQ                      and                                                   *       *      *    *    *
                                                      needed to supplement the annual                         ■ d. Add paragraphs (g)(9) through (11),                 (9) For transfers of QS to an RQE, the
                                                      guided sport catch limit from the CSP in                and (n) to read as follows:                           RQE may only receive halibut QS that
                                                      Area 2C and Area 3A (described in                                                                             is assigned to IFQ regulatory area 2C or
                                                                                                              § 679.41    Transfer of quota shares and IFQ.
                                                      § 300.65(c)) to account for charter                                                                           3A.
                                                      fishery harvests under the charter                      *       *    *     *    *
                                                                                                                 (c) * * *                                             (10) For transfers of QS from an RQE:
                                                      fishery management measures specified                                                                            (i) Quota category and block
                                                      in the annual management measures                          (11) If the person applying to receive
                                                                                                              or transfer QS is an RQE, the following               designations at time of purchase by an
                                                      and issue that amount of RFQ to the                                                                           RQE are retained if QS is transferred to
                                                      RFQ permit account.                                     determinations are required:
                                                                                                                 (i) The RQE applying to receive or                 an eligible QS holder for use in the IFQ
                                                         (C) Calculate the amount of excess                                                                         program.
                                                      RFQ by subtracting the amount of RFQ                    transfer QS, has submitted the timely
                                                                                                              and complete annual report required by                   (ii) NMFS will not issue any IFQ from
                                                      issued as determined in paragraph                                                                             any QS transferred from an RQE to a QS
                                                      (c)(4)(iii)(B) of this section from the                 § 679.5(v);
                                                                                                                 (ii) The RQE applying to receive QS                holder for use in the IFQ program for a
                                                      annual calculation of RFQ halibut to the                                                                      calendar year if that QS resulted in the
                                                      RQE as calculated in paragraph                          is eligible to hold QS on behalf of the
                                                                                                              charter halibut sector in IFQ regulatory              issuance of RFQ to an RQE during that
                                                      (c)(4)(iii)(A) of this section.                                                                               calendar year.
                                                         (iv) Redistribution of excess RFQ.                   area 2C or 3A; and
                                                                                                                 (iii) The RQE applying to receive QS                  (11) RQE eligibility. (i) To maintain
                                                      Excess pounds of RFQ will be                                                                                  eligibility as the RQE authorized by
                                                      redistributed as IFQ as follows:                        has received notification of approval of
                                                                                                              eligibility to receive QS on behalf of the            NMFS, the RQE must be a non-profit
                                                         (A) 50 percent to all catcher vessel QS                                                                    entity incorporated under the laws of
                                                                                                              charter halibut sector in IFQ regulatory
                                                      holders in the applicable area who held                                                                       the State of Alaska and recognized as
                                                                                                              area 2C or 3A as described in paragraph
                                                      not more than 32,333 QS units in Area                                                                         exempt from federal income tax by the
                                                                                                              (d)(1) of this section.
                                                      2C, and 47,469 QS units in Area 3A in                                                                         Internal Revenue Service as required by
                                                      the current calendar year and in the                    *       *    *     *    *
                                                                                                                 (d) * * *                                          paragraph (n)(1)(i) of this section.
                                                      calendar year prior to the redistribution,                                                                       (ii) If the Regional Administrator
                                                      in proportion to their QS holdings; and                    (1) Application for Eligibility. All
                                                                                                              persons applying to receive QS or IFQ                 determines the RQE approved by NMFS
                                                         (B) 50 percent divided equally among                                                                       does not meet the requirement specified
                                                      all CQEs that held halibut QS in the                    must submit an Application for
                                                                                                              Eligibility to Receive QS/IFQ                         in in paragraph (n)(1)(i) of this section,
                                                      applicable IFQ regulatory area (Area 2C                                                                       NMFS will notify the RQE of the
                                                      or Area 3A) in the current calendar year                (Application for Eligibility) containing
                                                                                                              accurate information to the Regional                  Regional Administrator’s determination
                                                      and in the calendar year prior to the                                                                         and specify that the RQE has 60 days to
                                                      redistribution. If no CQE held QS in the                Administrator. An Application for
                                                                                                              Eligibility to Receive QS/IFQ                         meet the requirement in paragraphs
                                                      applicable IFQ regulatory area (Area 2C                                                                       (n)(1)(i) of this section to maintain
                                                      and Area 3A) in the current calendar                    (Application for Eligibility) is not
                                                                                                              required for a CQE if a complete                      eligibility as the RQE authorized by
                                                      year and in the calendar year prior to                                                                        NMFS.
                                                      the redistribution, that RFQ will not be                application to become a CQE, as
                                                                                                              described in paragraph (l)(3) of this                    (iii) If the RQE demonstrates to NMFS
                                                      redistributed as IFQ and will not be                                                                          within 60 days of notification that it
                                                      available for use by any CQE, IFQ                       section, has been approved by the
                                                                                                              Regional Administrator on behalf of an                meets the requirement in paragraphs
                                                      permit holder, or RQE in that calendar                                                                        (n)(1)(i) of this section, NMFS will
                                                      year.                                                   eligible community. An Application for
                                                                                                              Eligibility to Receive QS/IFQ                         notify the RQE that it remains the
                                                      *       *     *     *      *                            (Application for Eligibility) is not                  authorized RQE.
                                                         (g) * * *                                            required for the RQE if a complete                       (iv) If the RQE does not demonstrate
                                                         (2) * * *                                            application to become an RQE, as                      to NMFS within 60 days of notification
                                                         (iii) The fish will not be calculated as             described in paragraph (n)(2) of this                 that it meets the requirement in
                                                      part of the recreational harvest of                     section, has been approved by the                     paragraphs (n)(1)(i) of this section,
                                                      halibut and will not be debited against                 Regional Administrator. The Regional                  NMFS will issue an initial
                                                      the RFQ permit account or the annual                    Administrator will not approve a                      administrative determination (IAD):
                                                      guided sport catch limit as defined in                  transfer of IFQ or QS to a person until                  (A) Revoking authorization of the
                                                      § 300.61 of this title.                                 the Application for Eligibility for that              RQE;
asabaliauskas on DSKBBXCHB2PROD with PROPOSALS




                                                      *       *     *     *      *                            person is approved by the Regional                       (B) Disallowing the RQE from
                                                         (h) * * *                                            Administrator. The Regional                           receiving any QS by transfer;
                                                         (3) Source of debit. NMFS will use the               Administrator will provide an                            (C) Requiring the CQE to divest of any
                                                      following sources (see paragraphs                       Application for Eligibility form to any               QS that it holds; and
                                                      (h)(3)(i), (ii) and (iii) of this section) of           person on request.                                       (D) Withholding the issuance of RFQ
                                                      information to debit a CDQ halibut, IFQ                 *       *    *     *    *                             based on any QS that the RQE holds.
                                                      halibut, IFQ sablefish, or RFQ permit                      (g) * * *                                             (v) The RQE would have the
                                                      account:                                                   (1) Except as provided in paragraph                opportunity to appeal the IAD through
                                                      *       *     *     *      *                            (f), paragraph (g)(2), paragraph (l), or              the National Appeals Office under the


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                                                      46032                  Federal Register / Vol. 82, No. 190 / Tuesday, October 3, 2017 / Proposed Rules

                                                      provisions established at 15 CFR part                   Notary Public signature and date when                    (g) * * *
                                                      906.                                                    commission expires;                                      (1) * * *
                                                      *       *    *     *     *                                 (iv) A statement describing the                       (iii) The RQE is limited to receiving:
                                                         (n) Transfer of halibut QS to an                     procedures that will be used to                          (A) Transfers of halibut QS blocks of
                                                      RQE—(1) RQE Organizational Structure.                   determine the acquisition of funds to                 less than or equal to 24,250 quota share
                                                      (i) The RQE will be a single entity                     purchase QS.                                          units in IFQ regulatory area 2C.
                                                      representing IFQ regulatory Areas 2C                       (3) Address for submittal of                          (B) Transfers of halibut QS blocks of
                                                      and 3A.                                                 application: Regional Administrator,                  less than or equal to 35,620 quota share
                                                         (ii) The RQE will be a non-profit                    NMFS, P.O. Box 21668, Juneau, AK                      units in IFQ regulatory area 3A.
                                                      entity incorporated under the laws of                   99802.                                                *       *    *     *     *
                                                      the State of Alaska and recognized as                      (4) Approval. NMFS will approve the                ■ 11. In § 679.45:
                                                      exempt from federal income tax by the                   first complete application received. If an            ■ a. Revise paragraphs (a)(1), (a)(2)(i)
                                                      Internal Revenue Service; and                           application is approved, NMFS will                    introductory text, and (a)(2)(i)(A);
                                                         (iii) The RQE will submit an annual                  notify the RQE by mail, unless another                ■ b. Add paragraphs (a)(2)(i)(B)(3) and
                                                      report to NMFS and the Council                          mode of communication is requested on                 (a)(2)(i)(D); and
                                                      detailing RQE activities during the prior               the application.                                      ■ c. Revise paragraphs (a)(3), (a)(4)(i),
                                                      year according to § 679.5(v).                              (5) Disapproval. If an application is              (b)(1), and (f)(2) to read as follows:
                                                         (2) Application for Eligibility. Prior to            disapproved, that determination may be
                                                                                                              appealed under the provisions                         § 679.45   IFQ cost recovery program.
                                                      initially receiving QS by transfer, a non-
                                                      profit entity that intends to participate               established at 15 CFR part 906.                          (a) * * *
                                                      in the Halibut IFQ Program and                          ■ 10. In § 679.42:                                       (1) Responsibility. An IFQ permit
                                                      purchase and hold halibut QS in Area                    ■ a. Add paragraph (a)(2)(v);                         holder is responsible for cost recovery
                                                      2C and Area 3A as the RQE must have                     ■ b. Revise paragraph (f)(1) introductory             fees for landings of his or her IFQ
                                                      approval from the Regional                              text; and                                             halibut and sablefish, including any
                                                      Administrator. To receive that approval,                ■ c. Add paragraphs (f)(8) and (g)(1)(iii)            halibut landed as guided angler fish
                                                      the non-profit entity seeking to become                 to read as follows:                                   (GAF), as defined in § 300.61 of this
                                                      an RQE must submit a complete                                                                                 title, derived from his or her IFQ
                                                                                                              § 679.42    Limitations on use of QS and IFQ.         accounts. An RQE is responsible for cost
                                                      ‘‘Application for a Non-Profit Entity to
                                                      be Designated as a Recreational Quota                     (a) * * *                                           recovery fees for all RFQ issued to the
                                                      Entity (RQE)’’ (available on the NMFS                     (2) * * *                                           RQE. An IFQ permit holder or RQE
                                                      Alaska Region Web site at https://                        (v) In IFQ regulatory areas 2C and 3A,              must comply with the requirements of
                                                      alaskafisheries.noaa.gov/). NMFS will                   RFQ held by an RQE may be harvested                   this section.
                                                      approve only one entity as the RQE. A                   aboard charter vessels as defined at 50                  (2) * * *
                                                      complete application to become an RQE                   CFR 300.61 of any size, regardless of the                (i) General. IFQ fee liability means a
                                                      must include:                                           QS category from which that RFQ                       cost recovery liability based on either
                                                         (i) The articles of incorporation under              originated.                                           the value of all landed IFQ and GAF
                                                      the laws of the State of Alaska for that                *       *    *     *     *                            derived from the permit holder’s IFQ
                                                      non-profit entity;                                        (f) * * *                                           permit(s), or the value of all RFQ issued
                                                         (ii) Acknowledgement from the                          (1) Unless the amount in excess of the              to an RQE.
                                                      Internal Revenue Service that the non-                  following limits was received in the                     (A) Each year, the Regional
                                                      profit entity is exempt from federal                    initial allocation of halibut QS, no                  Administrator will issue each IFQ
                                                      income tax under section 501(a) of the                  person other than a CQE representing                  permit holder a summary of his or her
                                                      Internal Revenue Code;                                  the community of Adak, AK,                            IFQ equivalent pounds landed as IFQ
                                                         (iii) Management organization                        individually or collectively, or an RQE,              and GAF and will issue an RQE a
                                                      information, including:                                 may use more than:                                    summary of its RFQ pounds issued as
                                                         (A) The bylaws of the non-profit                     *       *    *     *     *                            part of the IFQ Landing and Estimated
                                                      entity;                                                   (8) RQE use limits—(i) Annual                       Fee Liability page described at
                                                         (B) A list of key personnel of the                   transfer limits. The RQE may not receive              § 679.5(l)(7)(ii)(D).
                                                      managing organization including, but                    by transfer more than 594,774 units of                   (B) * * *
                                                      not limited to, the RQE board of                        Area 2C halibut QS and more than                         (3) All RFQ issued to an RQE in IFQ
                                                      directors, officers, representatives, and               2,218,716 units of Area 3A halibut QS                 regulatory area 2C or 3A will be
                                                      any managers;                                           in a year.                                            assessed at the IFQ regulatory area 2C or
                                                         (C) A description of how the non-                       (ii) Cumulative use limits. The RQE                3A IFQ standard ex-vessel value.
                                                      profit entity is qualified to manage QS                 may not hold more than 5,947,740 units                *       *    *     *     *
                                                      on behalf of charter fishery participants               of Area 2C halibut QS and more than                      (D) An RQE may not challenge the
                                                      and a demonstration that the non-profit                 22,187,161 units of Area 3A halibut QS.               standard ex-vessel value used to
                                                      entity has the management, technical                       (iii) Vessel category restrictions. (A)            determine the fee liability for all RFQ
                                                      expertise, and ability to manage QS and                 The RQE may not hold more than                        issued to the RQE.
                                                      RFQ;                                                    889,548 units of halibut QS in IFQ                    *       *    *     *     *
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                                                         (D) The name of the non-profit                       regulatory area 2C that is assigned to                   (3) Fee Collection. (i) An IFQ permit
                                                      organization, taxpayer ID number,                       vessel category D.                                    holder with IFQ and/or GAF landings is
                                                      NMFS person number, permanent                              (B) The RQE may not hold halibut QS                responsible for collecting his or her own
                                                      business mailing addresses, name of                     in IFQ regulatory area 3A that is                     fee during the calendar year in which
                                                      contact persons and additional contact                  assigned to vessel category D.                        the IFQ fish and/or GAF are landed.
                                                      information of the managing personnel                      (C) The RQE may not hold more than                    (ii) An RQE is responsible for
                                                      for the non-profit entity, resumes of                   265,524 units of halibut QS that is                   collecting its own fees during the
                                                      management personnel, name and                          assigned to vessel category B in IFQ                  calendar year in which the RFQ is
                                                      notarized signature of applicant, and                   regulatory area 2C.                                   issued to the RQE.


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                                                                                    Federal Register / Vol. 82, No. 190 / Tuesday, October 3, 2017 / Proposed Rules                                                   46033

                                                         (4) * * *                                                             vessel value that correlates to landed             as calculated by the Regional
                                                         (i) Payment due date. An IFQ permit                                   IFQ in IFQ equivalent pounds.                      Administrator based upon the IFQ
                                                      holder or RQE must submit its IFQ fee                                       (ii) An RQE must use the IFQ                    standard ex-vessel value. The IAD will
                                                      liability payment(s) to NMFS at the                                      standard ex-vessel value derived by                set out the facts and indicate the
                                                      address provided at paragraph (a)(4)(iii)                                NMFS for all RFQ issued to the RQE.                deficiencies in the documentation
                                                      of this section not later than January 31                                *       *    *     *    *                          submitted by the IFQ permit holder or
                                                      of the year following the calendar year                                     (f) * * *                                       RQE. An IFQ permit holder or RQE who
                                                      in which the IFQ or GAF landings were                                       (2) After the expiration of the 30-day          receives an IAD may appeal the IAD, as
                                                      made or the RFQ was issued to the RQE.                                   period, the Regional Administrator will            described in paragraph (h) of this
                                                                                                                               evaluate any additional documentation              section.
                                                         (b) * * *                                                             submitted by an IFQ permit holder or
                                                         (1) General. (i) An IFQ permit holder                                 RQE in support of its payment. If the              *     *     *     *     *
                                                      must use either the IFQ actual ex-vessel                                 Regional Administrator determines that             §§ 679.41 and 679.45   [Amended]
                                                      value or the IFQ standard ex-vessel                                      the additional documentation does not
                                                      value when determining the IFQ fee                                       meet the burden of proving the payment             ■  12. In the table below, for each section
                                                      liability based on ex-vessel value,                                      is correct, the Regional Administrator             indicated in the ‘‘Location’’ column,
                                                      except that landed GAF are assessed at                                   will send the IFQ permit holder or RQE             remove the title indicated in the
                                                      the standard ex-vessel values derived by                                 an IAD indicating that the IFQ permit              ‘‘Remove’’ column from wherever it
                                                      NMFS. An IFQ permit holder must base                                     holder or RQE did not meet the burden              appears in the section, and add the title
                                                      all fee liability calculations on the ex-                                of proof to change the IFQ fee liability           indicated in the ‘‘Add’’ column:

                                                                                  Location                                                         Remove                                              Add

                                                      § 679.41(l)(3)      introductory               text,          and        50 CFR 679.43                                       15 CFR part 906
                                                         (l)(3)(v)(E)(3).
                                                      § 679.41(m)(5)(ii) ................................................      § 679.43                                            15 CFR part 906
                                                      § 679.45(b)(2) .....................................................     landed as GAF.                                      landed as GAF or issued as RFQ.
                                                      § 679.45(b)(3)(ii) .................................................     landed GAF                                          landed GAF and RFQ issued to an RQE.
                                                      § 679.45(b)(3)(v) introductory text ......................               aggregated IFQ regulatory area 2C or 3A, to         aggregated by IFQ regulatory area 2C or 3A,
                                                                                                                                  GAF landings.                                      to GAF landings and RFQ issued to an
                                                                                                                                                                                     RQE.
                                                      § 679.45(d)(2)(i)(A) and (B) ................................            IFQ and GAF                                         IFQ, RFQ, and GAF
                                                      § 679.45(d)(2)(i)(C) .............................................       include GAF costs.                                  include RQE and GAF costs.
                                                      § 679.45(d)(2)(ii) .................................................     as commercial catch or as GAF                       as commercial catch, RFQ, or GAF
                                                      § 679.45(d)(4) .....................................................     IFQ and GAF                                         IFQ, RFQ, and GAF
                                                      § 679.45(d)(4), (e)(1) introductory text, (e)(1)(ii),                    IFQ permit holder                                   IFQ permit holder or RQE
                                                         and (f)(1)(i).
                                                      § 679.45(e)(1)(i), and (e)(1)(ii) ............................           IFQ permit holder                                   IFQ permit holder or RQE
                                                      § 679.45(e)(1)(i) ..................................................     the IFQ permit holder’s estimated fee liability     the estimated fee liability
                                                      § 679.45(e)(2) .....................................................     IFQ fishing permit held                             IFQ fishing permit or RFQ permit account
                                                                                                                                                                                     held
                                                      § 679.45(e)(2), (f)(1)(ii), and (f)(5) ......................            IFQ permit holder                                   IFQ permit holder or RQE
                                                      § 679.45(f)(1) introductory text ...........................             IFQ permit holder has                               IFQ permit holder or RQE has
                                                      § 679.45(f)(3) ......................................................    § 679.43                                            15 CFR part 906
                                                      § 679.45(f)(4) ......................................................    the IFQ permit holder must pay                      the IFQ permit holder or RQE must pay
                                                      § 679.45(g) ..........................................................   IFQ permit holder unless the permit holder re-      IFQ permit holder or RQE unless the IFQ per-
                                                                                                                                  quests                                             mit holder or RQE requests
                                                      § 679.45(g) ..........................................................   IFQ permit holder’s                                 IFQ permit holder’s or RQE’s
                                                      § 679.45(h) ..........................................................   § 679.43                                            15 CFR part 906



                                                      [FR Doc. 2017–20894 Filed 10–2–17; 8:45 am]
                                                      BILLING CODE 3510–22–P
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Document Created: 2017-10-03 01:01:18
Document Modified: 2017-10-03 01:01:18
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionProposed Rules
ActionProposed rule; request for comments.
DatesSubmit comments on or before November 17, 2017.
ContactKurt Iverson, 907-586-7228, [email protected]
FR Citation82 FR 46016 
RIN Number0648-BG57
CFR Citation50 CFR 300
50 CFR 679
CFR AssociatedAdministrative Practice and Procedure; Antarctica; Canada; Exports; Fish; Fisheries; Fishing; Imports; Indians; Labeling; Marine Resources; Reporting and Recordkeeping Requirements; Russian Federation; Transportation; Treaties; Wildlife and Alaska

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