82_FR_61737 82 FR 61489 - Atlantic Highly Migratory Species; Individual Bluefin Quota Program; Accountability for Bluefin Tuna Catch

82 FR 61489 - Atlantic Highly Migratory Species; Individual Bluefin Quota Program; Accountability for Bluefin Tuna Catch

DEPARTMENT OF COMMERCE
National Oceanic and Atmospheric Administration

Federal Register Volume 82, Issue 248 (December 28, 2017)

Page Range61489-61498
FR Document2017-28046

NMFS modifies the Atlantic highly migratory species (HMS) regulations to require vessels in the pelagic longline fishery to account for bycatch of bluefin tuna (bluefin) using Individual Bluefin Quota (IBQ) on a quarterly basis instead of on a trip-level basis. Previously, vessel owners had to account for quota debt or IBQ balances less than the minimum required before commencing any fishing trip with pelagic longline gear. With this rulemaking, vessels may fish during a given calendar quarter if they have an IBQ balance below the minimum amount required to depart on a fishing trip or with quota debt incurred by exceeding their IBQ balance; however, vessels are required to reconcile quota debt and satisfy the minimum IBQ requirement prior to departing on their first pelagic longline fishing trip in each calendar quarter. The action optimizes fishing opportunity in the directed pelagic longline fishery for target species such as tuna and swordfish and improves the functionality of the IBQ Program and its accounting provisions, consistent with the objectives of Amendment 7 to the 2006 Consolidated HMS Fishery Management Plan (FMP).

Federal Register, Volume 82 Issue 248 (Thursday, December 28, 2017)
[Federal Register Volume 82, Number 248 (Thursday, December 28, 2017)]
[Rules and Regulations]
[Pages 61489-61498]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-28046]


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DEPARTMENT OF COMMERCE

National Oceanic and Atmospheric Administration

50 CFR Part 635

[Docket No. 170823804-7999-02]
RIN 0648-BH17


Atlantic Highly Migratory Species; Individual Bluefin Quota 
Program; Accountability for Bluefin Tuna Catch

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

ACTION: Final rule.

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SUMMARY: NMFS modifies the Atlantic highly migratory species (HMS) 
regulations to require vessels in the pelagic longline fishery to 
account for bycatch of bluefin tuna (bluefin) using Individual Bluefin 
Quota (IBQ) on a quarterly basis instead of on a trip-level basis. 
Previously, vessel owners had to account for quota debt or IBQ balances 
less than the minimum required before commencing any fishing trip with 
pelagic longline gear. With this rulemaking, vessels may fish during a 
given calendar quarter if they have an IBQ balance below the minimum 
amount required to depart on a fishing trip or with quota debt incurred 
by exceeding their IBQ balance; however, vessels are required to 
reconcile quota debt and satisfy the minimum IBQ requirement prior to 
departing on their first pelagic longline fishing trip in each calendar 
quarter. The action optimizes

[[Page 61490]]

fishing opportunity in the directed pelagic longline fishery for target 
species such as tuna and swordfish and improves the functionality of 
the IBQ Program and its accounting provisions, consistent with the 
objectives of Amendment 7 to the 2006 Consolidated HMS Fishery 
Management Plan (FMP).

DATES: Effective on January 27, 2018.

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

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

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

Background

    Bluefin tuna fishing is managed domestically through a quota system 
(on a calendar-year basis), in conjunction with other management 
measures including permitting, reporting, gear restrictions, minimum 
fish sizes, closed areas, trip limits, and catch shares. NMFS 
implements the ICCAT U.S. quota recommendation, and divides the quota 
among U.S. fishing categories (i.e., the General, Angling, Harpoon, 
Purse Seine, Longline, and Trap categories) and the Reserve category on 
an annual basis. Vessels fishing with pelagic longline gear, which 
catch bluefin incidentally while fishing for target species (primarily 
swordfish and yellowfin tuna), hold limited access Atlantic Tunas 
Longline permits and utilize Longline category quota. Through Amendment 
7, NMFS established the IBQ Program, a catch share program that 
identified 136 permit holders as IBQ share recipients based on 
specified criteria, including historical target species landings and 
the bluefin catch-to-target species ratios from 2006 through 2012. The 
objectives of the IBQ Program include limiting the amount of BFT 
landings and dead discards in the pelagic longline fishery; providing 
strong incentives for the vessel owner and operator to avoid bluefin 
interactions and thus reduce bluefin dead discards; and balancing the 
objective of limiting bluefin landings and dead discards with the 
objective of optimizing fishing opportunities and maintaining 
profitability.
    IBQ share recipients receive an annual allocation of the Longline 
category quota based on the percentage share they received through 
Amendment 7, but only if their permit is associated with a vessel in 
the subject year (i.e., only ``qualified IBQ share recipients'' receive 
annual allocations). Through rulemaking, NMFS later modified the 
regulations to optimize quota transferred inseason by allowing NMFS to 
distribute inseason transfers of quota to all permitted Atlantic Tunas 
Longline vessels with recent fishing activity whether they have IBQ 
shares or not (81 FR 95903; December 29, 2016). Permit holders that did 
not receive IBQ shares through shares in Amendment 7 or allocation 
through inseason distribution of bluefin quota to active vessels under 
the later regulatory provision may still fish, but they are required to 
lease IBQ through the IBQ electronic system. Every vessel must 
individually account for its bluefin bycatch (landings and dead 
discards) with IBQ allocation through the IBQ electronic system.
    Delayed effective dates for some of the regulations implemented 
through Amendment 7 assisted in the transition to measures adopted in 
Amendment 7, which substantially increased individual vessel 
accountability for bluefin bycatchin the Longline fishery. During 2015, 
the first year of implementation of the IBQ Program, a pelagic longline 
vessel that had insufficient IBQ to account for its landings and dead 
discards (i.e., went into ``quota debt'') was allowed to continue to 
fish; however, any additional landings and dead discards continued to 
accrue, and the cumulative quota debt needed to be accounted for no 
later than December 31, 2015. A vessel that did not resolve its quota 
debt by December 31 would retain the quota debt into 2016, and its 
quota debt would be deducted from its annual IBQ allocation (allocated 
January 1 to shareholders associated with permitted vessels) or the 
vessel would be required to lease quota to resolve the outstanding 
quota balance before taking any trips with pelagic longline gear. As of 
January 1, 2016, a vessel fishing with pelagic longline gear onboard 
was required to have a minimum IBQ allocation to embark on a trip. A 
minimum allocation required to fish was 0.25 mt (551 lb) whole weight 
(ww) for each trip in the Gulf of Mexico and 0.125 mt ww (276 lb ww) 
for each trip in the Atlantic. Pelagic longline vessels could lease IBQ 
allocation from other such vessels or from Purse Seine fishery 
participants in the IBQ Program to obtain sufficient allocation for 
each trip and to account for quota debt where necessary. Pelagic 
longline vessel owners have been accounting for bluefin catch using the 
IBQ Program since its implementation and leasing quota among themselves 
(and from Purse Seine fishery participants) as needed to fully account 
for bluefin catch using IBQ. Notably, estimates of 2015 and 2016 dead 
discards of bluefin (17.1 mt and 22.6 mt, respectively) by the pelagic 
longline fishery indicate substantial reductions of greater than 85 
percent compared to the pre-2015 levels (159.6 mt on average for 2006 
through 2014). However, since implementation, pelagic longline fishery 
participants have consistently requested additional operational 
flexibility to address the costs and availability of leased IBQ, which 
they are concerned may affect the profitability of target species catch 
and causes uncertainty in a vessel owner's short-term and long-term 
plans. Vessel owners stated that their ability to account for bluefin 
using allocated IBQ or IBQ leased at an affordable price is key to the 
success of the IBQ Program. A vessel that has below the minimum amount 
of IBQ to fish or is in quota debt is uncertain about their ability to 
depart on a subsequent fishing trip. Specifically, vessels have been 
concerned that the IBQ Program, including the trip-level accountability 
requirements, could negatively impact vessel operations and finances 
given the timing restrictions, lease pricing of IBQ, the distribution 
of quota among permit holders as implemented by Amendment 7, and the 
behavior of some permit holders who, for example, do not appear to be 
actively fishing nor engaged in any

[[Page 61491]]

leasing activities. They also say that the expense of leasing IBQ 
allocation when needed can impact other operational costs such as crew 
pay. If availability of IBQ is limited, or costs are prohibitive, the 
operational impacts increase. IBQ Program data generally reflect that, 
for leasing transactions that occurred, sales revenue received per 
pound approximated the cost per pound of leasing IBQ. However, IBQ 
Program participants (which include any permit holder or vessel that 
leases quota to facilitate pelagic longline operations) and potential 
lessees have communicated that there were instances where the cost at 
which lessors were willing to lease their IBQ was prohibitive and 
leasing did not occur, and this information would not be reflected in 
NMFS data. Furthermore, expanded opportunities to fish with pelagic 
longline gear within the available swordfish quota are contingent on 
access to additional quota to account for bluefin bycatch and discards. 
Longline fishery participants requested that NMFS take further steps to 
provide more flexibility regarding timing for vessel owners to lease 
IBQ needed to cover bluefin catchdue to the dynamics and costs 
associated with leasing IBQ described above, which can affect 
profitability of target species catch, increase uncertainty, and 
negatively affect the ability to plan their business. Such effects may 
be compounded by the impacts of other constraints associated with 
Amendment 7, including additional gear restricted areas and VMS and 
electronic monitoring requirements, as well as non-Amendment 7 related 
constraints (e.g., market demands etc.).
    In light of these challenges facing the fishery, as well as the 
Amendment 7 objectives--which include ``minimizing constraints on 
fishing for target species,'' as well as ``optimizing fishing 
opportunities and maintaining profitability''--NMFS has utilized its 
authority to transfer quota inseason to the Longline category (80 FR 
45098; July 29, 2015; 81 FR 19; January 4, 2106; 82 FR 12296; March 2, 
2017) to foster conditions in which vessel owners become more willing 
to lease IBQ, optimize fishing opportunity, and reduce uncertainty in 
the fishery. NMFS modified the IBQ Program in 2017 (81 FR 95903, 
December 29, 2016) to provide additional flexibility regarding the 
distribution of inseason Atlantic bluefin tuna (BFT) quota transfers to 
the Longline category. That rulemaking provided NMFS the flexibility to 
distribute quota inseason either to all qualified IBQ share recipients 
(i.e., share recipients who have associated their permit with a vessel) 
or only to those permitted Atlantic Tunas Longline vessels with recent 
fishing activity, whether or not they are associated with IBQ shares.
    During its May 2017 Advisory Panel Meeting, pelagic longline vessel 
owners acknowledged the effectiveness of NMFS' actions in support of 
the IBQ Program objectives, but reiterated the need for additional 
flexibility and offered suggestions for high priority regulatory 
changes to achieve such flexibility.
    NMFS received requests, among other suggestions about the IBQ 
Program and management of the pelagic longline fishery, to allow more 
time for vessel owners to resolve quota debt and achieve a minimum 
balance of IBQ, rather than require vessels to have a minimum balance 
of IBQ as a prerequisite of every longline trip. In light of past 
fishery dynamics under the IBQ Program and public input regarding the 
need for additional flexibility, NMFS published a proposed rule on 
October 25, 2017 (82 FR 49303), that proposed modifying the 
accountability provisions of the IBQ Program to provide some additional 
flexibility for individual vessel owners, while achieving a balance 
among the IBQ Program objectives. Public comments on the proposed rule 
were accepted through November 24, 2017.
    The pelagic longline fishery is a diverse fishing fleet, with a 
variety of vessel sizes and types of operations distributed from the 
waters off Nova Scotia to the Gulf of Mexico, Caribbean, and South 
America. Timing of fishing trips are typically based on the 
availability of target species, weather, moon phase, markets, crew and 
bait availability, and other factors. Quarterly accountability may 
achieve a better balance between minimizing constraints on fishing for 
target species and ensuring accountability for incidental bluefin 
catch, due to the fact that it allows a vessel owner to determine the 
timing of lease transactions or level of quota debt they are 
comfortable maintaining over a longer period. Alleviation of the timing 
constraint associated with trip-level accountability would provide 
additional flexibility. A vessel owner may need flexibility to pay 
costs associated with fishing (fuel, bait, ice, labor, repairs, etc.), 
including the cost of leasing IBQ, on a timeline unique to their 
operation and finances. The opportunity to fish with a low IBQ balance 
or with quota debt may enable a vessel owner to continue to obtain 
revenue during the time period when they are looking for quota to lease 
and accommodate different types of fishing operations and financial 
obligations. Quarterly accountability requires vessel owners to resolve 
quota debt and obtain the minimum amount of IBQ prior to fishing for 
the first time in a subsequent calendar quarter.

Response to Comments

    NMFS received nine written comments on the proposed rule during the 
comment period. Five commenters expressed support for the rule as 
proposed; one expressed qualified support; two commenters did not 
support the proposed changes; and one commenter did not address topics 
included in the proposed rule. All written comments can be found at 
http://www.regulations.gov/. The comments are summarized below by topic 
together with NMFS' responses.
    Comment 1: Two commenters noted the IBQ system was implemented 
without an established trading system in place and that vessels have 
had difficulty finding quota to lease in a diverse, widely dispersed 
fishery. Three commenters stated that under quarterly accountability, 
lessors and lessees, as well as NMFS, will develop a better 
understanding of the IBQ market. One commenter stated that participants 
in the IBQ market would have a better understanding of the market value 
of available IBQ with quarterly accountability.
    Response: NMFS agrees that upon inception of the IBQ program 
(January 2015), the leasing market for IBQ was not yet established, 
there was not yet an operative understanding of the dynamics and 
pricing of IBQ in the Atlantic bluefin tuna fishery, and some vessels 
reported having a difficult time finding IBQ to lease and/or leasing 
IBQ at an affordable price. When implementing Amendment 7, NMFS 
acknowledged that the novelty of the IBQ system (as well as other 
Amendment 7 requirements) could create uncertainty in the fishery, and 
therefore delayed implementation of trip-level accountability during 
the first year of the IBQ Program, instead requiring annual 
accountability during 2015. During 2016 and 2017, both the pelagic 
longline fishery and NMFS gained a better understanding of the IBQ 
market. NMFS anticipates that understanding of the IBQ market will 
continue to improve with time and agrees with the commenters that such 
understanding will be augmented by quarterly accountability.
    Comment 2: The five commenters that fully supported the proposed 
measures anticipated improvements to the IBQ leasing market, including 
aspects of the cost and logistics of leasing. Regarding

[[Page 61492]]

costs and logistics, five commenters noted the importance of quarterly 
accountability in providing additional time to lease IBQ and that 
quarterly accountability would allow more time to obtain IBQ when 
prices are low. One commenter stated that leasing is highly compromised 
when a lessee is bidding for IBQ on short notice, even if the lessee 
knows a vessel owner from whom to lease quota, stating that bids under 
time pressure favor lessors, in terms of price. Under quarterly 
accountability, the commenter stated, leasing prices would be more 
reasonable, and reflect the ``ample supply'' of IBQ, instead of the 
lease pricing being ``inflated and unreasonable.'' One commenter stated 
that lessors tend to have different levels of participation in the 
fishery, or less of a need for IBQ than lessees, which tends to provide 
an advantage to the lessor under trip-level accountability (that may be 
reduced under quarterly accountability). For example, the commenter 
stated that lessors may not be actively fishing in the pelagic longline 
fishery or, if fishing, may be fishing in locations and times where 
they do not expect to catch bluefin. One commenter stated that 
quarterly accountability would be beneficial because it can be 
difficult to contact people when searching for available IBQ to lease, 
and even after negotiation, the lessor may not have access to the 
online system in a timely manner. The commenter stated that the time 
constraint of trip-level accountability is particularly difficult for 
vessel operators who are looking for IBQ to lease in a short window of 
time between two fishing trips. One commenter stated that quarterly 
accountability would enhance the ability for vessel owners to plan 
their businesses.
    Response: NMFS agrees that quarterly accountability will improve 
the IBQ market by providing lessees more time to shop for IBQ and lease 
at reasonable prices, which more accurately reflect supply. NMFS agrees 
that the flexibility associated with quarterly accountability will help 
facilitate successive fishing trips consistent with typical longline 
vessel practice (i.e., without extended wait time between trips), 
reduce uncertainty in planning, and provide more time to conduct the 
logistics associated with IBQ leasing.
    Comment 3: Several commenters stated that quarterly accountability 
would improve the IBQ market at the end of the year because IBQ would 
be leased as needed rather than on a speculative basis and would 
increase the availability of IBQ for lease to those that need it during 
the end of the year time period. One commenter stated that the 
perceived need to ``hoard'' IBQ by vessels would be reduced. 
Furthermore, the commenter stated, under quarterly accountability (and 
removal of the minimum amount of IBQ to fish), vessels would not lose 
the value of IBQ during the latter part of the year by maintaining the 
minimum amount of quota, whether or not they anticipate needing the 
quota to account for bluefin catch.
    Response: NMFS agrees that quarterly accountability may improve the 
end-of-the year IBQ market. At the end of a year, if a vessel has quota 
debt remaining at, the quota debt will carry forward to the subsequent 
year, whereas available IBQ balance does not carry forward. This 
creates increased incentives to resolve quota debt immediately at a 
time when there may not be as much quota in the IBQ market. Under trip-
level accounatability, a vessel that is fishing during December in the 
Atlantic may not be willing to lease to another vessel due to the 
minimum quota requirement (276 lb) and the desire to retain some quota 
in case the vessel encounters a bluefin tuna. This final rule removes 
the minimum quota requirement after the first trip of the quarter, thus 
vessel owners may be willing to lease more at year's end without 
concern about interfering with their ability to fish during that 
quarter.
    Comment 4: The five commenters that fully supported the proposed 
measures anticipated ancillary benefits from quarterly accountability 
that are less directly related to IBQ leasing per se, but that are 
related to flexibility in their fishing operations, resulting in 
benefits to the fishery as a whole. One commenter stated that U.S. 
pelagic longline operators would have peace of mind as they leave the 
dock fishing for target species, due to the flexibility associated with 
quarterly accountability. Another commenter stated that, under 
quarterly accountability, captains would be able to fish more 
confidently in search of target species without fear of immediate 
shutdown because of interactions with BFT that went beyond their 
available IBQ balance at the time. One commenter stated that trip-level 
accountability was burdensome to vessels and hurt their ability to get 
back on the water if they were unfortunate and had an interaction with 
bluefin and that active vessels will gain additional economic and 
operational flexibility because they will no longer have to `stockpile' 
IBQ. One commenter stated that the flexibility affects operations in 
multiple ways that have the net effect of more effectively fishing for 
target species and that quarterly accountability would reduce the 
chances the pelagic longline vessels would be tied to the dock while 
attempting to acquire IBQ, especially for those vessels that received 
little or no IBQ shares under Amendment 7. Several commenters stated 
the fishery would have a better opportunity to fully utilize U.S. ICCAT 
quotas for target species such as swordfish. One commenter noted that 
the proposed measure would add revenue to help the ``dwindling'' 
American fleet, as well as reduce the U.S. seafood trade deficit.
    Response: NMFS agrees that the additional flexibility for fishing 
operations resulting from quarterly accountability would result in 
social benefits for the portion of the fleet that is constrained by 
quota debt or low IBQ balances. The social benefits include a decrease 
in some vessel owner/operator stress and uncertainty in addition to 
economic benefits described below and under Responses to Comments 3 and 
4. NMFS agrees that quarterly accountability will reduce the chances 
that vessels with quota debt or low IBQ balance will not be able to 
depart on fishing trips and to earn fishing revenue due to a lack of 
IBQ, will support increased revenue for some of the pelagic longline 
fleet and contribute towards full utilization of the U.S. ICCAT quotas 
for target species, and may contribute to the reduction of the U.S. 
seafood trade deficit.
    Comment 5: One commenter supported providing additional flexibility 
to the pelagic longline fishery through quarterly accountability 
because they were encouraged by the results of the IBQ program, 
specifically by the reduction in dead discards by the pelagic longline 
fishery during 2015 and 2016 (compared to 2014, prior to the 
implementation of Amendment 7). The commenter stated that the dead 
discard data suggests the IBQ Program is achieving the goals of 
limiting dead discards and providing strong incentives to avoid bluefin 
interactions. The commenter stated that in order to be fully 
successful, the IBQ Program must also balance those objectives with the 
objective of optimizing fishing opportunities and maintaining 
profitability. Another commenter acknowledged the success of the IBQ 
Program to date, but was concerned that quarterly accountability would 
undermine its success.
    Response: NMFS agrees that based on available information to date, 
the IBQ Program has reduced the amount of dead discards in the pelagic 
longline fishery, and appears to be meeting the objectives of the IBQ 
Program. A full evaluation of the IBQ Program during its

[[Page 61493]]

first 3 years of operation (2015 through 2017) will occur during the 3-
year review, completion of which is anticipated in 2019. The 3-year 
review will evaluate all the objectives of the IBQ Program, including 
limiting bluefin tuna interactions, reducing bluefin dead discards, 
optimizing fishing opportunities, and maintaining profitability. The 
response to the commenter's concerns about undermining the success of 
the IBQ Program is addressed in the response to Comment 6.
    Comment 6: One commenter did not support quarterly accountability, 
stating that it would encourage a ``debt mindset'' in which vessel 
operators fish more in the present with only the hope of future leasing 
to `pay for' the bluefin catch, that a quarter is too long before 
requiring full accounting, and that they were concerned about a lack of 
IBQ to account for the bluefin caught by all pelagic longline fishers. 
The commenter was concerned about weakening the IBQ restrictions and 
undermining the past success of the IBQ program in minimizing bluefin 
bycatch and reducing dead discards, while minimizing reductions in 
target catch. Specifically the commenter was concerned that quarterly 
accountability could result in exceeding the overall pelagic longline 
quota at the end of the calendar year, especially with the occurrence 
of a `disaster set'. The commenter also stated that the proposed change 
to the IBQ regulations is premature, in light of the upcoming formal 
review of the IBQ Program (``3-year review'') by NMFS, as well as the 
fact that NMFS already made a modification to the IBQ to increase 
flexibility (81 FR 95903, December 29, 2016). The commenter stated that 
multiple changes to the IBQ Program prior to the 3-year review will 
make it difficult to evaluate the IBQ Program, and that any changes to 
the IBQ Program should only occur after the 3-year review.
    Response: NMFS disagrees with the conclusions of the commenters 
that quarterly accountability will increase the potential for bluefin 
catch (landings and dead discards) to exceed the pelagic longline quota 
and the concern that the measures will undermine the success of the IBQ 
Program to date. Although quarterly accountability will modify the 
timing of IBQ accountability, full accountability for bluefin tuna 
catch will be maintained and will not affect the overall limits set on 
bluefin tuna catch through quotas and other measures. The regulatory 
change is relatively minor with respect to the full scope of Amendment 
7 regulations associated with the IBQ Program, affecting only the 
timing of full accountability. Quarterly accountability will require 
vessel owners to resolve quota debt and obtain the minimum amount of 
IBQ prior to fishing for the first time in a calendar year quarter. 
NMFS believes that vessel owners will not forget that they must fully 
account for bluefin tuna retained or discarded dead, even if on a 
quarterly basis. Quarterly accountability will not result in a 
generalized ``quota debt mindset,'' but will provide vessel owners some 
additional flexibility to carry an amount of quota debt commensurate 
with their unique business operations. Vessel owners will have more 
flexibility in their fishing operations, but no less incentive to avoid 
bluefin, given that all bluefin must be accounted for using IBQ, IBQ is 
allocated to vessels in limited amounts, and leasing additional IBQ 
comes at a price. It should be noted the amount of bluefin retained or 
discarded dead will continue to be tracked on a trip-level basis and 
the appropriate balance of IBQ (either a positive balance or negative 
balance/`quota debt') will be maintained. At the end of a trip on which 
bluefin tuna are retained or discarded dead, a vessel's IBQ balance 
will be reduced by the appropriate amount. If the trip catch exceeds 
the vessel's available quota, the vessel will incur quota debt.
    Current landings and dead discard data do not support the 
commenter's concern that there will not be enough IBQ to account for 
all bluefin caught by the pelagic longline fleet. During 2015, the 
first year of the IBQ Program, there was annual accountability (i.e., 
vessels could fish in quota debt and there was no minimum amount of IBQ 
to fish, but quota debt accumulated during the full year). Trip-level 
accountability was not implemented until 2016. During 2015 and 2016, 35 
percent and 50 percent (respectively) of the adjusted Longline Category 
quota was caught (not including the distinct Northeast Distant Area 
quota that has different IBQ accountability rules for the first 25 mt). 
In the unlikely event that the Longline Category quota were approached, 
NMFS has the authority under Sec.  635.28(a)(3) to close the fishery 
when the Atlantic Tunas Longline category quota is reached, projected 
to be reached, or exceeded, or when there is high uncertainty regarding 
the estimated or documented levels of bluefin tuna catch. Lastly, the 
extensive vessel reporting and monitoring requirements applicable to 
vessels fishing with pelagic longline gear will remain in effect, 
including Vessel Monitoring Systems (satellite tracking) and Electronic 
Monitoring Systems (video cameras as associated equipment).
    Additionally, NMFS has determined that the 3-year review will be 
able to effectively evaluate the IBQ Program including consideration of 
two minor regulatory changes to the program since its inception (this 
final rule, and previous rule regarding the distribution of inseason 
quota transfers to the Longline category; 81 FR 95903, December 29, 
2016). The pelagic longline fishery is a highly diverse and dynamic 
fishery, and NMFS believes it is important to incorporate operational 
flexibility into management of the fishery where possible. Analyzing 
the pelagic longline fishery under varying conditions may in fact 
enhance NMFS' ability to understand and evaluate the IBQ Program.
    Quarterly accountability will achieve a better balance between 
minimizing some operational constraints on fishing for target species 
and ensuring accountability for incidental bluefin catch by allowing a 
vessel owner more flexibility to determine the timing of lease 
transactions or level of quota debt they are comfortable maintaining 
over a longer period. Alleviation of the timing constraint associated 
with trip-level accountability will provide additional flexibility. A 
vessel owner may need flexibility to pay costs associated with fishing 
(fuel, bait, ice, labor, repairs, etc.), including the cost of leasing 
IBQ, on a timeline unique to their operation and finances. The 
opportunity to fish with a low IBQ balance or with quota debt may 
enable a vessel owner to continue to obtain revenue during the time 
period when they are looking for quota to lease and accommodate 
different types of fishing operations and financial obligations.
    Comment 7: One commenter was unsure of the intent of the proposed 
measures with respect to the balance of impacts on the operation of the 
fishery and the impacts on bluefin bycatch. Specifically, the commenter 
supported quarterly accountability, provided the primary intent is to 
address the economic objectives of the 2006 Consolidated HMS FMP. If 
the intent of the action is also to further reduce bycatch of bluefin, 
the commenter did not think quarterly accountability would achieve that 
objective.
    Response: This action, as an adjustment to Amendment 7, is 
consistent with all of the objectives in Amendment 7 and with all 10 
national standards of the Magnuson-Stevens Act. This final rule is not 
anticipated to impact the overall level of bluefin bycatch by the 
pelagic longline fishery

[[Page 61494]]

or the overall level of accountability, which is managed through the 
IBQ Program consistent with Amendment 7.

Changes From the Proposed Rule

    Changes to regulatory text from those in the proposed rule were 
made to correct cross-references that were incorrect at the proposed 
rule stage and to improve clarity of the proposed regulations. The 
proposed regulatory text at Sec.  635.15(b)(3)(i) specified that a 
vessel owner or operator must have ``the relevant required minimum IBQ 
allocation for the region in which the fishing activity will occur.'' 
This same language was added to Sec.  635.15(b)(3)(ii) and (b)(5)(i) to 
improve clarity. Incorrect cross-references in Sec.  635.15(b)(5)(i) 
and (ii) were corrected to refer to Sec.  635.15(b)(9) rather than 
Sec.  635.15(f).

Classification

    The NMFS Assistant Administrator has determined that the final rule 
is consistent with the 2006 Consolidated HMS FMP and its amendments, 
the Magnuson-Stevens Act, ATCA, and other applicable law.
    This final rule has been determined to be not significant for 
purposes of Executive Order 12866.
    This action is categorically excluded from the requirement to 
prepare an environmental assessment in accordance with NOAA 
Administrative Order (NAO) 216-6A. This action may appropriately be 
categorically excluded from the requirement to prepare either an 
environmental assessment or environmental impact statement in 
accordance with CE A1 of the Companion Manual for NAO 216-6A for an 
action that is a technical correction or a change to a fishery 
management action or regulation, which does not result in a substantial 
change in any of the following: Fishing location, timing, effort, 
authorized gear types, access to fishery resources or harvest levels. 
By somewhat altering the timing of the accounting for bluefin tuna by 
individual pelagic longline vessels, the changes in this action could 
also be expected to alter some fishing timing, and this is the intent 
of the additional flexibility offered by this action. NMFS expects this 
to result in some minor alterations in fishing trip timing by 
individual vessel owners. Timing would not, however, be altered in a 
way that would constitute a substantial change. In practice, this 
action provides some individual vessels flexibility to alter the timing 
of some of their fishing trips within a three-month period. Given the 
size of the fleet and the number of fishing trips taken, such minor 
variations in individual fishing trips will not result in substantial 
changes to fishing timing overall. Moreover, the level of fishing 
remains capped by the U.S. bluefin tuna quota; the timing of the 
fishing is substantively managed by the various subquota categories, 
inseason actions (e.g., regarding retention limits), and seasons. Minor 
modifications in individual vessel practice related to the timing of 
certain trips will not increase or decrease the quota nor the fishing 
mortality associated with that quota or have any other environmental 
effects. The annual U.S. bluefin tuna quota and subquota allocations to 
the Longline category will not be affected by this action.
    NMFS has prepared a Regulatory Impact Review (RIR) and a Final 
Regulatory Flexibility Analysis (FRFA), which present and analyze 
anticipated social and economic impacts of the alternatives contained 
in this final rule. The list of alternatives and their analyses are 
provided in the RIR and are not repeated here in their entirety. A copy 
of the RIR prepared for this final rule is available from NMFS (see 
ADDRESSES).
    A FRFA was prepared, as required by section 604 of the Regulatory 
Flexibility Act (RFA, 5 U.S.C. 604 et seq.), and is included below. The 
FRFA describes the economic impact this rule will have on small 
entities. A description of the action, why it is being implemented, and 
the legal basis for this action are contained in the SUMMARY section of 
the preamble.
    The goal of the RFA is to minimize the economic burden of federal 
regulations on small entities. To that end, the RFA directs federal 
agencies to assess whether the regulation is likely to result in 
significant economic impacts to a substantial number of small entities, 
and identify and analyze any significant alternatives to the rule that 
accomplish the objectives of applicable statutes and minimizes any 
significant effects on small entities.

Statement of the Need for and Objectives of This Final Rule

    In compliance with section 604(b)(1) of the RFA, this action is 
needed is to provide some additional flexibility regarding the timing 
of accounting for bluefin tuna catch with the IBQ Program in a manner 
that maintains accountability for bluefin tuna bycatch and a strong 
incentive for pelagic longline vessels to avoid interactions with 
bluefin tuna, while minimizing constraints on fishing for target 
species and, to the greatest extent possible, the socioeconomic impacts 
on affected fisheries.
    Current regulations require permitted Atlantic Tunas Longline 
vessels to possess a minimum amount of IBQ to depart on a fishing trip 
with pelagic longline gear and account for bluefin tuna catch (fish 
retained or discarded dead) using IBQ (0.25 mt for a trip in the Gulf 
of Mexico and 0.125 mt for a trip in the Atlantic). At the end of a 
trip on which bluefin tuna are caught, a vessel's IBQ balance is 
reduced by the amount caught. If the trip catch exceeds the vessel's 
available quota, the vessel will incur quota debt (i.e., exceeding its 
available IBQ balance). In this case, the regulations required the 
vessel to obtain additional IBQ through leasing to resolve that quota 
debt and to acquire the minimum IBQ amount before departing on a 
subsequent trip using pelagic longline gear. Thus, a pelagic longline 
vessel owner who took consecutive trips had to account for bluefin tuna 
catch in almost real time, effectively creating a system of ``trip-
level accountability'' for those vessels.
    This action modifies these rules to require vessels to resolve 
quota debt on a quarterly basis (i.e., they must balance the debt and 
obtain the minimum amount required to depart on a fishing trip before 
going on a trip in the next quarter). Vessels will be allowed to fish 
with a low IBQ balance or with quota debt during a calendar quarter. 
Vessels will still be required to report bluefin tuna catch at the end 
of each trip (and account for it with IBQ), but this regulatory change 
would provide the flexibility to fish even if the vessel has less than 
the minimum amount of IBQ, including quota debt, until the first 
fishing trip in each calendar quarter. For example, under the new 
measure, after the initial trip, if a vessel has a low balance or quota 
debt in January 2018, the vessel will be allowed to fish without first 
resolving that low balance or quota debt through March 31, 2018. In 
order to depart on a pelagic longline fishing trip in the following 
quarter, starting April 1, 2018, that vessel will need to lease 
additional IBQ resolve the quota debt and acquire the minimum amount of 
IBQ required to fish.
    The rule will provide flexibility for two important operational 
business decisions made by vessel owners: Decisions regarding quota 
balance and quota debt (subject to full accounting quarterly) and 
decisions regarding the timing and price at which they lease additional 
quota. Importantly, this regulatory change will maintain vessel 
accountability for bluefin tuna catch and the associated incentives for 
vessel operators to minimize catch of bluefin tuna. By changing the 
timing of the accountability, however, the proposed

[[Page 61495]]

rule will provide some additional flexibility in vessel operations and 
thus provide vessel owners more of a reasonable opportunity to catch 
available quota for target species (i.e., swordfish and yellowfin 
tuna).

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

    In compliance with section 604(a)(2) of the RFA, NMFS reviewed the 
public comments in response to the proposed rule and the Initial 
Regulatory Flexibility Analysis (IRFA). While NFMS received several 
comments regarding the proposed rule, none of those comments was 
specific to the IRFA. In addition, no comments were received by the 
Chief Counsel for Advocacy of the Small Business Administration in 
response to the proposed rule. The Agency did not make any changes as a 
result of comments.

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

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

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

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

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

    One of the requirements of a FRFA is to describe any significant 
alternatives to the rule which accomplish the stated objectives of 
applicable statutes and which minimize any significant economic impact 
of the rule on small entities. The analysis shall discuss significant 
alternatives such as:
    1. Establishment of differing compliance or reporting requirements 
or timetables that take into account the resources available to small 
entities;
    2. Clarification, consolidation, or simplification of compliance 
and reporting requirements under the rule for such small entities;
    3. Use of performance rather than design standards; and
    4. Exemptions from coverage of the rule, or any part thereof, for 
small entities.
    These categories of alternatives are described at 5 U.S.C. 603 
(c)(1)-(4). NMFS examined each of these categories of alternatives. 
Regarding the first and fourth categories, NMFS cannot establish 
differing compliance or reporting requirements for small entities or 
exempt small entities from coverage of the rule or parts of it because 
all of the businesses impacted by this rule are considered small 
entities and thus the requirements are already designed for small 
entities. NMFS examined alternatives that fall under the second 
category, which requires agencies to consider whether they can clarify, 
consolidate, or simplify compliance and reporting requirements under 
the rule for small entities. The quarterly and annual accountability 
alternatives in the rule would reduce the burden of complying with the 
existing trip level accountability requirement and thus would fall into 
this category of alternatives by simplifying compliance and reporting 
requirements for small entities. The IBQ Program was designed to adhere 
to performance standards, the third category above; modifications to 
the regulations implementing the IBQ Program simply make adjustments to 
the administration of those underlying performance standards. Thus, 
NMFS has considered the significant alternatives to the rule and 
focused on simplifying compliance and reporting requirements associated 
with IBQ accountability in order to minimize any significant economic 
impact of the rule on small entities.
    NMFS analyzed several different alternatives in this rulemaking, 
and the rationale that NMFS used to determine the alternative for 
achieving the desired objectives is described below.
    The first alternative is the ``no action'' (status quo) 
alternative. The second alternative, the preferred alternative, would 
adjust the Atlantic HMS regulations to require the pelagic longline 
fishery to account for bycatch of bluefin tuna using IBQ on a quarterly 
basis instead of before embarking on a trip after incurring quota debt. 
The third alternative would adjust the Atlantic HMS regulations to 
require the pelagic longline fishery to account for bycatch of bluefin 
tuna using IBQ on an annual basis instead of before embarking on a trip 
after incurring quota debt. The economic impacts of these three 
alternatives are detailed below. Under

[[Page 61496]]

all three alternatives, a vessel's IBQ balance would be reduced to 
account for bluefin tuna discarded dead or retained immediately after 
the catch is reported in the IBQ system. The difference among the 
alternatives is the timing of when quota debt or a low balance of IBQ 
precludes fishing and must be resolved prior to departing on a 
subsequent trip using pelagic longline gear (trip level, quarterly, or 
annually).
    Under the ``no action'' alternative, NMFS would maintain the 
current regulations regarding accounting for bluefin tuna catch and 
prerequisites for departing on a fishing trip with pelagic longline 
gear on board. Current regulations require permitted Atlantic Tunas 
Longline vessel owners (or vessel operators, where applicable) to 
possess a minimum amount of IBQ to depart on a fishing trip with 
pelagic longline gear and account for bluefin tuna caught (retained or 
discarded dead) using IBQ at the end of the trip. Therefore, at the end 
of a trip on which bluefin tuna are caught, a vessel owner's balance of 
IBQ would be reduced, possibly below the minimum amount needed for a 
subsequent trip, or the vessel owner may incur quota debt by exceeding 
their IBQ balance. In either of these cases, the vessel owner must 
obtain additional IBQ through leasing in order to satisfy the minimum 
requirement (and resolve any quota debt they may have) prior to 
departing on another trip using pelagic longline gear. The net effect 
of these rules is that a pelagic longline vessel owner that takes 
multiple sequential trips must account for bluefin tuna in real-time, 
which NMFS refers to as ``trip-level accountability.''
    This approach was implemented by Amendment 7, but effectiveness was 
delayed until January 1, 2016, in contrast to most of the other 
Amendment 7 measures that were effective on January 1, 2015. During 
2016, there were 1,025 pelagic longline trips by 85 vessels, which 
deployed 6,885 sets and 5,217,547 hooks. During 2016, there were 81 IBQ 
lease transactions with a total of 141,183 lb IBQ leased and an average 
price of $2.52 per pound (weighted average). There were a total of 17 
vessels that incurred quota debt at some time during the year, with a 
total amount of 40,237 lb of debt incurred and resolved. Mean revenue 
per trip during 2016 based on logbook, dealer, and weigh out data was 
$24,707.
    During 2016, pelagic longline vessel owners successfully accounted 
for bluefin tuna catch using the IBQ Program and leasing quota among 
themselves (and from Purse Seine fishery participants) as needed in 
order to fully account for bluefin tuna catch using IBQ. However, since 
implementation, pelagic longline fishery participants have consistently 
requested some additional flexibility due to the costs associated with 
leasing IBQ, which can affect profitability of target species catch, as 
well as the concern that vessel owners appear to be unwilling to lease 
IBQ at certain times, uncertainties regarding the availability of IBQ 
to lease, and the impacts of other constraints associated with 
Amendment 7, including additional gear restricted areas and VMS and 
electronic monitoring requirements. The ability of vessel owners to 
account for bluefin tuna using allocated quota or IBQ leased at an 
affordable price is key to the success of the IBQ Program. A trend that 
may in part reflect the uncertainties and constraints associated with 
trip-level accountability is the lower amount of fishing effort in 2016 
compared to 2015 (despite the active IBQ leasing market in 2016). For 
example, the number of trips, active vessels, longline sets and hooks 
fished were all lower in 2016 than they were in 2015. The No Action 
alternative would not, however, provide the timing flexibility benefits 
that could facilitate better operational and economic decisions and 
options for individual vessel owners who need to lease IBQ, and NMFS 
therefore does not prefer the no action alternative.
    Under the second alternative (preferred), NMFS would adjust the 
Atlantic HMS regulations to require the pelagic longline fishery to 
account for bycatch of bluefin tuna using IBQ on a quarterly basis 
instead of before commencing any fishing trip while in quota debt or 
with less than the minimum required IBQ balance. The preferred 
alternative would provide flexibility for two important operational 
business decisions made by vessel owners. First, decisions regarding 
quota balance and quota debt (subject to full accounting quarterly); 
and second, decisions regarding the timing and price at which they 
lease additional quota. It is likely that the vessels would take 
advantage of increased operational flexibility as a result of removal 
of the constraints associated with the trip-level accountability. 
Specifically, operational flexibility associated with the preferred 
alternative may enable vessels to fish at more optimal times and avoid 
delay in the timing of a trip due to a low IBQ balance and issues 
related to availability of quota to lease; lease IBQ at a lower price 
by providing the flexibility for a vessel owner to `shop around'; 
reduce uncertainty in the IBQ market such that vessels are willing to 
plan and undertake fishing trips they previously may not have; and 
improve their cash flow by allowing fishing while in quota debt (i.e., 
accrual of revenue with which to lease additional IBQ). In 2016, each 
additional trip earned vessels on average $24,707 in revenue.
    NMFS used the available data on the IBQ lease markets to estimate 
the potential reduction in transaction costs (mainly labor costs) 
associated with moving from trip-level accountability to quarterly 
accountability. There were 33 vessels that leased quota in 2016 and 
they were involved in 81 transactions. On average, that is almost 2.5 
transactions per vessel that entered the IBQ lease market. Under the 
quarterly accountability requirement of Alternative 2, these vessels 
might be able to reduce their number of lease transactions to one lease 
per quarter, which would reduce business costs and have economic and 
operational benefits. Based on data from 2016 and the first-half of 
2017, quarterly accountability could lead to 51 fewer lease 
transactions if vessel owners reduced their number of lease transaction 
to one per quarter under this alternative. Each lease transaction costs 
vessel owners additional labor time to search for available IBQ, 
contact potential lessors, negotiate prices, and complete the 
transactions. NMFS estimates that could involve approximately four 
hours per transaction. Using the Bureau of Labor Statistics mean hourly 
wage rate for first-line supervisors of farming, fishing and forestry 
workers of $23 per hour in 2016 (https://www.bls.gov/oes/current/oes451011.htm), NMFS estimates the value of the time involved in these 
additional 51 leases to be approximately worth $4,692 (51 transactions 
x 4 hours x $23/hr). Since this amount is based on six quarters, the 
annual estimated savings in the time associated with these leases is 
approximately $3,128 per year ($4,692/1.5 years). Given that 33 vessels 
were involved in leasing in 2016, the per vessel savings per year would 
be approximately $95 per vessel.
    Although it is not possible to precisely quantify the economic 
impacts of the preferred alternative, the no action alternative with 
trip-level accountability (i.e., the regulations implemented in 2016) 
and the third alternative with annual accountability (i.e., the 
regulations implemented in 2015) may be informative about the likely 
impacts of the alternatives. The amount of flexibility to account for 
bluefin tuna catch afforded by the preferred alternative is likely 
somewhere in between the two other alternatives: Trip-level 
accountability (no action alternative) and annual accountability (third 
alternative).

[[Page 61497]]

    Under the third alternative, there would be no minimum amount of 
IBQ required to fish and vessels would only be required to account for 
their catch at the end of the year. The third alternative is the same 
as the IBQ accounting regulations that were in effect during 2015. 
During 2015, there were 1,124 pelagic longline trips, by 104 vessels, 
which deployed 7,769 sets and 5,549,451 hooks. During 2015, there were 
49 IBQ lease transactions from 24 distinct vessels with a total of 
126,407 lb IBQ leased, and an average price of $3.46 per pound 
(weighted average). There were a total of 16 vessels that incurred 
quota debt, with a total amount of 42,746 lb. The mean revenue per trip 
during 2015 based on dealer data was $17,603 (not including bluefin 
tuna or dolphin revenue). Although it is possible to glean some 
insights from data from 2015 as the basis for evaluating potential 
economic impacts of the third alternative, the fishing behavior of the 
pelagic longline fleet during 2015, the first year of Amendment 7 
regulations, was likely heavily influenced by the newness of the 
regulations and the relatively high amount of uncertainty in 2015.
    There were approximately 2.0 lease transactions per vessel in 2015 
versus 2.5 leases per vessel in 2016. Assuming the 33 vessels that 
leased in 2016 only leased 2 times per year under annual 
accountability, the number of leases would be reduced from 81 to 66, a 
reduction of 15 transactions. This reduction in 15 transactions taking 
approximately 4 hours of an owner's time would be worth $1,380 in labor 
costs per year (15 x 4 hours x $23/hr). Given the 33 vessels that 
leased in 2016, the per vessel cost savings would be approximately $42 
per vessel per year. Alternatively, if vessel owners could reduce the 
number of leases to one per year, the number of lease transactions 
could be reduced down to 33 transactions based on 2016 lease activity. 
This would result in 48 fewer transactions, and would result in a 
savings of up to $4,416 per year for the whole fleet or $134 per vessel 
that leased. However, based on the 2015 IBQ lease data under annual 
accountability that year, it is unlikely that the number of lease 
transactions would be reduced by this much. It is likely that there 
would be more leasing activity associated with this alternative than 
occurred during 2015, since 2015 was the initial implementation of the 
IBQ Program and participants were just learning how the IBQ lease 
market worked and which IBQ Program participants were interested in 
leasing IBQ, as well as a lower average price per pound for leased IBQ.
    There is uncertainty as to the full impact of moving from trip-
level accountability to annual accountability. Annual accountability 
might cause vessel owners to wait until December to try to lease quota. 
Quota available for lease in December might become scarcer and this 
holiday period might cause fewer IBQ shareholders to participate in the 
market. This increased scarcity of IBQ available for lease and the 
tight end of the year timeframe might result in spikes in the price for 
IBQ, thus driving up costs and potentially leaving some vessel owners 
unable to resolve their quota debt at the last minute as the year ends. 
NMFS prefers to incrementally move to quarterly accountability under 
Alternative 2 to avoid some of the risks associated with Alternative 3.

List of Subjects in 50 CFR Part 635

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

    Dated: December 22, 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 part 635 is amended 
as follows:

PART 635--ATLANTIC HIGHLY MIGRATORY SPECIES

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

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

0
2. In Sec.  635.15, revise paragraphs (b)(3), (b)(4)(i) and (ii), 
(b)(5)(i) and (ii), and (b)(8)(i) to read as follows:


Sec.  635.15   Individual bluefin tuna quotas.

* * * * *
    (b) * * *
    (3) Minimum IBQ allocation. For purposes of this paragraph (b), 
calendar year quarters start on January 1, April 1, July 1, and October 
1.
    (i) First fishing trip in a calendar year quarter. Before departing 
on the first fishing trip in a calendar year quarter, a vessel with an 
eligible Atlantic Tunas Longline category permit that fishes with or 
has pelagic longline gear onboard must have the minimum IBQ allocation 
for either the Gulf of Mexico or Atlantic, depending on fishing 
location. The minimum IBQ allocation for a vessel fishing in the Gulf 
of Mexico, or departing for a fishing trip in the Gulf of Mexico, is 
0.25 mt ww (551 lb ww). The minimum IBQ allocation for a vessel fishing 
in the Atlantic or departing for a fishing trip in the Atlantic is 
0.125 mt ww (276 lb ww). A vessel owner or operator may not declare 
into or depart on the first fishing trip in a calendar year quarter 
with pelagic longline gear onboard unless it has the relevant required 
minimum IBQ allocation for the region in which the fishing activity 
will occur.
    (ii) Subsequent fishing trips in a calendar year quarter. 
Subsequent to the first fishing trip in a calendar year quarter, a 
vessel owner or operator may declare into or depart on other fishing 
trips with pelagic longline gear onboard with less than the relevant 
minimum IBQ allocation for the region in which the fishing activity 
will occur, but only within that same calendar year quarter.
    (4) Accounting for bluefin tuna caught. (i) With the exception of 
vessels fishing in the NED, in compliance with the requirements of 
paragraph (b)(8) of this section, all bluefin tuna catch (dead discards 
and landings) must be deducted from the vessel's IBQ allocation at the 
end of each pelagic longline trip.
    (ii) If the amount of bluefin tuna catch on a particular trip 
exceeds the amount of the vessel's IBQ allocation or results in an IBQ 
balance less than the minimum amount described in paragraph (b)(3) of 
this section, the vessel may continue to fish, complete the trip, and 
depart on subsequent trips within the same calendar year quarter. The 
vessel must resolve any quota debt (see paragraph (b)(5) of this 
section) before declaring into or departing on a fishing trip with 
pelagic longline gear onboard in a subsequent calendar year quarter by 
acquiring adequate IBQ allocation to resolve the debt and acquire the 
needed minimum allocation through leasing, as described in paragraph 
(c) of this section.
* * * * *
    (5) * * *
    (i) Quarter level quota debt. A vessel with quota debt incurred in 
a given calendar year quarter cannot depart on a trip with pelagic 
longline gear onboard in a subsequent calendar year quarter until the 
vessel leases allocation or receives additional allocation (see 
paragraphs (c) and (b)(9) of this section), and applies allocation for 
the appropriate region to settle the quota debt such that the vessel 
has the relevant minimum quota allocation required to fish for the 
region in which the fishing activity will occur (see paragraph (b)(3) 
of this section). For example, a vessel with quota debt incurred during 
January through March

[[Page 61498]]

may not depart on a trip with pelagic longline gear onboard during 
April through June (or subsequent quarters) until the quota debt has 
been resolved such that the vessel has the relevant minimum quota 
allocation required to fish for the region in which the fishing 
activity will occur.
    (ii) Annual level quota debt. If, by the end of the fishing year, a 
permit holder does not have adequate allocation to settle its vessel's 
quota debt through leasing or additional allocation (see paragraphs (c) 
and (b)(9) of this section), the vessel's allocation will be reduced in 
the amount equal to the quota debt in the subsequent year or years 
until the quota debt is fully accounted for. A vessel may not depart on 
any pelagic longline trips if it has outstanding quota debt from a 
previous fishing year.
* * * * *
    (8) * * *
    (i) When NED bluefin quota is available. Permitted vessels fishing 
with pelagic longline gear may fish in the NED, and any bluefin catch 
will count toward the ICCAT-allocated separate NED quota until the NED 
quota has been filled. Permitted vessels fishing in the NED must still 
fish in accordance with the relevant minimum IBQ allocation 
requirements specified under paragraph (b)(3) of this section to depart 
on a trip using pelagic longline gear.
* * * * *

0
3. In Sec.  635.71, revise paragraphs (b)(48) and (56) to read as 
follows:


Sec.  635.71   Prohibitions.

* * * * *
    (b) * * *
    (48) Depart on a fishing trip or deploy or fish with any fishing 
gear from a vessel with a pelagic longline on board without accounting 
for bluefin caught as specified in Sec.  635.15(b)(4).
* * * * *
    (56) Fish with or have pelagic longline gear on board if any quota 
debt associated with the permit from a preceding calendar year quarter 
has not been settled as specified in Sec.  635.15(b)(5)(i).
* * * * *
[FR Doc. 2017-28046 Filed 12-27-17; 8:45 am]
 BILLING CODE 3510-22-P



                                                               Federal Register / Vol. 82, No. 248 / Thursday, December 28, 2017 / Rules and Regulations                                            61489

                                              low natural mortality rates could be                     be reclassified as not overfished.                    improve its performance and
                                              determined to be overfished because of                   However, they will still be subject to                effectiveness (50 CFR 600.310(e)(7)). If
                                              natural variations in the population and                 their respective rebuilding plans until               the ACL is exceeded to such an extent
                                              the small buffers between MSST and                       BMSY is reached. The greater amberjack                that overfishing occurs, the Guidelines
                                              BMSY.                                                    stock would continue to be classified as              state that the Secretary of Commerce
                                                 The SEFSC also analyzed how long it                   overfished until that stock’s biomass                 will immediately notify the Council and
                                              would take stocks with various life                      exceeds the MSST of 0.5 * BMSY.                       the Council should evaluate the cause of
                                              history characteristics to recover from                     Comment 3: NMFS must revisit the                   overfishing, address the issue that
                                              various MSST levels. This analysis is                    previous rulemaking that implemented                  caused overfishing, and reevaluate the
                                              included in Appendix D of Amendment                      the quota overage adjustment (payback)                ACLs and AMs to make sure they are
                                              44 and found that for all species                        for the red snapper recreational sector to            adequate (50 CFR 600.310(j)). All of
                                              analyzed (including red snapper and                      correct an error in the regulations that              these safeguards will help ensure that
                                              gray triggerfish), recovery would occur                  links the recreational payback to                     the ACLs and AMs continue to function
                                              in the absence of fishing mortality in 10                ‘‘overfished’’ status as opposed to                   effectively to prevent overfishing and
                                              years or less under any of the MSST                      ‘‘rebuilding status.’’                                rebuild the stock consistent with the
                                              levels, including the MSST of 0.5 *                         Response: NMFS disagrees that it is                established rebuilding plan.
                                              BMSY. The Council understood that                        necessary to revisit the rulemaking that
                                                                                                                                                               Authority: 16 U.S.C. 1801 et seq.
                                              specifying an MSST of 0.5 * BMSY could                   implemented the red snapper
                                              result in the need for a restrictive                     recreational AMs (80 FR 14328, March                    Dated: December 21, 2017.
                                              rebuilding plan if a stock was                           19, 2015). The reference to overfished                Samuel D. Rauch, III,
                                              determined to be overfished. However,                    status in the red snapper recreational                Deputy Assistant Administrator for
                                              the Council determined, and NMFS                         AM in 50 CFR 622.41(q)(2)(ii) was not                 Regulatory Programs, National Marine
                                              agrees, that the risk of sustained                       an error. This provision was added to                 Fisheries Service.
                                              overfishing causing a stock to become                    the regulations through a framework                   [FR Doc. 2017–28058 Filed 12–27–17; 8:45 am]
                                              overfished is minimal given the                          action in 2015. Although the framework                BILLING CODE 3510–22–P
                                              requirement to prevent overfishing and                   action referred to ‘‘rebuilding,’’ the
                                              use of OFLs, ACLs, and AMs, to achieve                   codified text for the framework that was
                                              this objective.                                          reviewed and deemed necessary by the                  DEPARTMENT OF COMMERCE
                                                 With respect to stock assessments,                    Council linked the quota payback
                                              there is a level of uncertainty in the data              provision to overfished status, which                 National Oceanic and Atmospheric
                                              used. However, consistent with National                  was consistent with the other payback                 Administration
                                              Standard 2, these assessments use the                    provisions for Gulf-managed species
                                              best scientific information available to                 that were already in effect prior to that             50 CFR Part 635
                                              provide information on stock status. In                  time, such as those for gray triggerfish              [Docket No. 170823804–7999–02]
                                              addition, for the reasons stated above,                  (50 CFR 622.41(b)(2)(ii)), gag (50 CFR
                                              the Council determined that the revised                  622.41(d)(2)(iii)), and red grouper (50               RIN 0648–BH17
                                              MSSTs, when used in combination with                     CFR 622.41(e)(2)(iii)).                               Atlantic Highly Migratory Species;
                                              OFLs, ACLs, and AMs, will continue to                       Although the approval of Amendment
                                                                                                                                                             Individual Bluefin Quota Program;
                                              provide the appropriate level of                         44 may result in the red snapper stock
                                                                                                                                                             Accountability for Bluefin Tuna Catch
                                              protection for these stocks. Thus, it is                 no longer being classified as overfished
                                              not appropriate to disapprove                            because the biomass for this stock is                 AGENCY:  National Marine Fisheries
                                              Amendment 44 based on uncertainty in                     currently estimated to be greater than 50             Service (NMFS), National Oceanic and
                                              the stock assessments.                                   percent of BMSY, the stock continues to               Atmospheric Administration (NOAA),
                                                 Comment 2: This action to revise the                  be subject to the rebuilding plan                     Commerce.
                                              MSST will result in a decrease in the                    established in Amendment 27 to the                    ACTION: Final rule.
                                              allowable catch for these stocks.                        FMP (73 FR 5117, January 29, 2008).
                                                 Response: Revising the MSST will not                  NMFS is required to review the                        SUMMARY:    NMFS modifies the Atlantic
                                              directly affect catch levels for the seven               rebuilding progress at routine intervals              highly migratory species (HMS)
                                              stocks in Amendment 44. The MSST is                      and notify the Council if there has been              regulations to require vessels in the
                                              the threshold used to determine                          inadequate progress toward rebuilding.                pelagic longline fishery to account for
                                              whether a stock is overfished. If the                    If notified, the Council would be                     bycatch of bluefin tuna (bluefin) using
                                              stock biomass falls below MSST, the                      required to take action consistent with               Individual Bluefin Quota (IBQ) on a
                                              stock is considered to be overfished and                 the rebuilding plan requirements in                   quarterly basis instead of on a trip-level
                                              a rebuilding plan is required. Therefore,                section 305(e) of the Magnuson-Stevens                basis. Previously, vessel owners had to
                                              the MSST may indirectly affect catch                     Act.                                                  account for quota debt or IBQ balances
                                              levels for a stock if harvest needs to be                   In addition, NMFS and the Council                  less than the minimum required before
                                              restricted for some period of time so the                have reduced the likelihood of the red                commencing any fishing trip with
                                              stock can recover. However, of the seven                 snapper recreational ACL being                        pelagic longline gear. With this
                                              stocks included in Amendment 44, four                    exceeded by the use of recreational                   rulemaking, vessels may fish during a
                                              are not overfished (gag, red grouper,                    annual catch targets (ACTs) to set the                given calendar quarter if they have an
                                              vermilion snapper, and hogfish) and                      Federal charter vessel/headboat (for-                 IBQ balance below the minimum
                                              that determination will not change with                  hire) and the private angling component               amount required to depart on a fishing
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                                              the revision to the MSSTs for these                      recreational season lengths. However, if              trip or with quota debt incurred by
                                              stocks. The remaining three stocks (red                  an overage of the recreational ACL does               exceeding their IBQ balance; however,
                                              snapper, gray triggerfish, and greater                   occur more than once in the last 4 years,             vessels are required to reconcile quota
                                              amberjack) are currently classified as                   the National Standard 1 Guidelines                    debt and satisfy the minimum IBQ
                                              overfished but, with the approval of                     advise the Council to reevaluate the                  requirement prior to departing on their
                                              Amendment 44, NMFS expects that red                      system of ACLs and AMs, and if                        first pelagic longline fishing trip in each
                                              snapper and gray triggerfish stocks will                 necessary, modify the system to                       calendar quarter. The action optimizes


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                                              61490            Federal Register / Vol. 82, No. 248 / Thursday, December 28, 2017 / Rules and Regulations

                                              fishing opportunity in the directed                      longline gear, which catch bluefin                    quota debt needed to be accounted for
                                              pelagic longline fishery for target                      incidentally while fishing for target                 no later than December 31, 2015. A
                                              species such as tuna and swordfish and                   species (primarily swordfish and                      vessel that did not resolve its quota debt
                                              improves the functionality of the IBQ                    yellowfin tuna), hold limited access                  by December 31 would retain the quota
                                              Program and its accounting provisions,                   Atlantic Tunas Longline permits and                   debt into 2016, and its quota debt would
                                              consistent with the objectives of                        utilize Longline category quota.                      be deducted from its annual IBQ
                                              Amendment 7 to the 2006 Consolidated                     Through Amendment 7, NMFS                             allocation (allocated January 1 to
                                              HMS Fishery Management Plan (FMP).                       established the IBQ Program, a catch                  shareholders associated with permitted
                                              DATES: Effective on January 27, 2018.                    share program that identified 136 permit              vessels) or the vessel would be required
                                              ADDRESSES: Supporting documents,                         holders as IBQ share recipients based on              to lease quota to resolve the outstanding
                                              including the Regulatory Impact Review                   specified criteria, including historical              quota balance before taking any trips
                                              and Final Regulatory Flexibility                         target species landings and the bluefin               with pelagic longline gear. As of January
                                              Analysis, may be downloaded from the                     catch-to-target species ratios from 2006              1, 2016, a vessel fishing with pelagic
                                              HMS website at www.nmfs.noaa.gov/                        through 2012. The objectives of the IBQ               longline gear onboard was required to
                                              sfa/hms/.                                                Program include limiting the amount of                have a minimum IBQ allocation to
                                              FOR FURTHER INFORMATION CONTACT:
                                                                                                       BFT landings and dead discards in the                 embark on a trip. A minimum allocation
                                              Thomas Warren, 978–281–9260; or                          pelagic longline fishery; providing                   required to fish was 0.25 mt (551 lb)
                                                                                                       strong incentives for the vessel owner                whole weight (ww) for each trip in the
                                              Carrie Soltanoff, 301–427–8503.
                                                                                                       and operator to avoid bluefin                         Gulf of Mexico and 0.125 mt ww (276
                                              SUPPLEMENTARY INFORMATION:
                                                                                                       interactions and thus reduce bluefin                  lb ww) for each trip in the Atlantic.
                                              Regulations implemented under the                        dead discards; and balancing the
                                              authority of the Atlantic Tunas                                                                                Pelagic longline vessels could lease IBQ
                                                                                                       objective of limiting bluefin landings                allocation from other such vessels or
                                              Convention Act (ATCA; 16 U.S.C. 971 et                   and dead discards with the objective of
                                              seq.) and the Magnuson-Stevens Fishery                                                                         from Purse Seine fishery participants in
                                                                                                       optimizing fishing opportunities and                  the IBQ Program to obtain sufficient
                                              Conservation and Management Act                          maintaining profitability.
                                              (Magnuson-Stevens Act; 16 U.S.C. 1801                                                                          allocation for each trip and to account
                                                                                                          IBQ share recipients receive an
                                              et seq.) governing the harvest of BFT by                                                                       for quota debt where necessary. Pelagic
                                                                                                       annual allocation of the Longline
                                              persons and vessels subject to U.S.                                                                            longline vessel owners have been
                                                                                                       category quota based on the percentage
                                              jurisdiction are found at 50 CFR part                                                                          accounting for bluefin catch using the
                                                                                                       share they received through
                                              635. Section 635.27 subdivides the U.S.                  Amendment 7, but only if their permit                 IBQ Program since its implementation
                                              BFT quota recommended by the                             is associated with a vessel in the subject            and leasing quota among themselves
                                              International Commission for the                         year (i.e., only ‘‘qualified IBQ share                (and from Purse Seine fishery
                                              Conservation of Atlantic Tunas (ICCAT)                   recipients’’ receive annual allocations).             participants) as needed to fully account
                                              among the various domestic fishing                       Through rulemaking, NMFS later                        for bluefin catch using IBQ. Notably,
                                              categories, per the allocations                          modified the regulations to optimize                  estimates of 2015 and 2016 dead
                                              established in the 2006 Consolidated                     quota transferred inseason by allowing                discards of bluefin (17.1 mt and 22.6 mt,
                                              Atlantic Highly Migratory Species                        NMFS to distribute inseason transfers of              respectively) by the pelagic longline
                                              Fishery Management Plan (2006                            quota to all permitted Atlantic Tunas                 fishery indicate substantial reductions
                                              Consolidated HMS FMP) (71 FR 58058,                      Longline vessels with recent fishing                  of greater than 85 percent compared to
                                              October 2, 2006), as amended by                          activity whether they have IBQ shares or              the pre-2015 levels (159.6 mt on average
                                              Amendment 7 to the 2006 Consolidated                     not (81 FR 95903; December 29, 2016).                 for 2006 through 2014). However, since
                                              HMS FMP (Amendment 7) (79 FR                             Permit holders that did not receive IBQ               implementation, pelagic longline fishery
                                              71510, December 2, 2014), and in                         shares through shares in Amendment 7                  participants have consistently requested
                                              accordance with implementing                             or allocation through inseason                        additional operational flexibility to
                                              regulations. The current baseline U.S.                   distribution of bluefin quota to active               address the costs and availability of
                                              BFT quota and subquotas were                             vessels under the later regulatory                    leased IBQ, which they are concerned
                                              established and analyzed in the BFT                      provision may still fish, but they are                may affect the profitability of target
                                              quota final rule (80 FR 52198, August                    required to lease IBQ through the IBQ                 species catch and causes uncertainty in
                                              28, 2015). NMFS is required under                        electronic system. Every vessel must                  a vessel owner’s short-term and long-
                                              ATCA and the Magnuson-Stevens Act to                     individually account for its bluefin                  term plans. Vessel owners stated that
                                              provide U.S. fishing vessels with a                      bycatch (landings and dead discards)                  their ability to account for bluefin using
                                              reasonable opportunity to harvest the                    with IBQ allocation through the IBQ                   allocated IBQ or IBQ leased at an
                                              ICCAT-recommended quota.                                 electronic system.                                    affordable price is key to the success of
                                                                                                          Delayed effective dates for some of the            the IBQ Program. A vessel that has
                                              Background                                               regulations implemented through                       below the minimum amount of IBQ to
                                                Bluefin tuna fishing is managed                        Amendment 7 assisted in the transition                fish or is in quota debt is uncertain
                                              domestically through a quota system (on                  to measures adopted in Amendment 7,                   about their ability to depart on a
                                              a calendar-year basis), in conjunction                   which substantially increased                         subsequent fishing trip. Specifically,
                                              with other management measures                           individual vessel accountability for                  vessels have been concerned that the
                                              including permitting, reporting, gear                    bluefin bycatchin the Longline fishery.               IBQ Program, including the trip-level
                                              restrictions, minimum fish sizes, closed                 During 2015, the first year of                        accountability requirements, could
                                              areas, trip limits, and catch shares.                    implementation of the IBQ Program, a                  negatively impact vessel operations and
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                                              NMFS implements the ICCAT U.S.                           pelagic longline vessel that had                      finances given the timing restrictions,
                                              quota recommendation, and divides the                    insufficient IBQ to account for its                   lease pricing of IBQ, the distribution of
                                              quota among U.S. fishing categories (i.e.,               landings and dead discards (i.e., went                quota among permit holders as
                                              the General, Angling, Harpoon, Purse                     into ‘‘quota debt’’) was allowed to                   implemented by Amendment 7, and the
                                              Seine, Longline, and Trap categories)                    continue to fish; however, any                        behavior of some permit holders who,
                                              and the Reserve category on an annual                    additional landings and dead discards                 for example, do not appear to be
                                              basis. Vessels fishing with pelagic                      continued to accrue, and the cumulative               actively fishing nor engaged in any


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                                                               Federal Register / Vol. 82, No. 248 / Thursday, December 28, 2017 / Rules and Regulations                                        61491

                                              leasing activities. They also say that the               their permit with a vessel) or only to                operations and financial obligations.
                                              expense of leasing IBQ allocation when                   those permitted Atlantic Tunas Longline               Quarterly accountability requires vessel
                                              needed can impact other operational                      vessels with recent fishing activity,                 owners to resolve quota debt and obtain
                                              costs such as crew pay. If availability of               whether or not they are associated with               the minimum amount of IBQ prior to
                                              IBQ is limited, or costs are prohibitive,                IBQ shares.                                           fishing for the first time in a subsequent
                                              the operational impacts increase. IBQ                       During its May 2017 Advisory Panel                 calendar quarter.
                                              Program data generally reflect that, for                 Meeting, pelagic longline vessel owners
                                                                                                       acknowledged the effectiveness of                     Response to Comments
                                              leasing transactions that occurred, sales
                                              revenue received per pound                               NMFS’ actions in support of the IBQ                      NMFS received nine written
                                              approximated the cost per pound of                       Program objectives, but reiterated the                comments on the proposed rule during
                                              leasing IBQ. However, IBQ Program                        need for additional flexibility and                   the comment period. Five commenters
                                              participants (which include any permit                   offered suggestions for high priority                 expressed support for the rule as
                                              holder or vessel that leases quota to                    regulatory changes to achieve such                    proposed; one expressed qualified
                                              facilitate pelagic longline operations)                  flexibility.                                          support; two commenters did not
                                              and potential lessees have                                  NMFS received requests, among other                support the proposed changes; and one
                                              communicated that there were instances                   suggestions about the IBQ Program and                 commenter did not address topics
                                              where the cost at which lessors were                     management of the pelagic longline                    included in the proposed rule. All
                                              willing to lease their IBQ was                           fishery, to allow more time for vessel                written comments can be found at
                                              prohibitive and leasing did not occur,                   owners to resolve quota debt and                      http://www.regulations.gov/. The
                                              and this information would not be                        achieve a minimum balance of IBQ,                     comments are summarized below by
                                              reflected in NMFS data. Furthermore,                     rather than require vessels to have a                 topic together with NMFS’ responses.
                                                                                                       minimum balance of IBQ as a                              Comment 1: Two commenters noted
                                              expanded opportunities to fish with
                                                                                                       prerequisite of every longline trip. In               the IBQ system was implemented
                                              pelagic longline gear within the
                                                                                                       light of past fishery dynamics under the              without an established trading system in
                                              available swordfish quota are contingent
                                                                                                       IBQ Program and public input regarding                place and that vessels have had
                                              on access to additional quota to account
                                                                                                       the need for additional flexibility,                  difficulty finding quota to lease in a
                                              for bluefin bycatch and discards.
                                                                                                       NMFS published a proposed rule on                     diverse, widely dispersed fishery. Three
                                              Longline fishery participants requested
                                                                                                       October 25, 2017 (82 FR 49303), that                  commenters stated that under quarterly
                                              that NMFS take further steps to provide
                                                                                                       proposed modifying the accountability                 accountability, lessors and lessees, as
                                              more flexibility regarding timing for
                                                                                                       provisions of the IBQ Program to                      well as NMFS, will develop a better
                                              vessel owners to lease IBQ needed to
                                                                                                       provide some additional flexibility for               understanding of the IBQ market. One
                                              cover bluefin catchdue to the dynamics                                                                         commenter stated that participants in
                                                                                                       individual vessel owners, while
                                              and costs associated with leasing IBQ                                                                          the IBQ market would have a better
                                                                                                       achieving a balance among the IBQ
                                              described above, which can affect                                                                              understanding of the market value of
                                                                                                       Program objectives. Public comments on
                                              profitability of target species catch,                                                                         available IBQ with quarterly
                                                                                                       the proposed rule were accepted
                                              increase uncertainty, and negatively                                                                           accountability.
                                                                                                       through November 24, 2017.
                                              affect the ability to plan their business.                  The pelagic longline fishery is a                     Response: NMFS agrees that upon
                                              Such effects may be compounded by the                    diverse fishing fleet, with a variety of              inception of the IBQ program (January
                                              impacts of other constraints associated                  vessel sizes and types of operations                  2015), the leasing market for IBQ was
                                              with Amendment 7, including                              distributed from the waters off Nova                  not yet established, there was not yet an
                                              additional gear restricted areas and VMS                 Scotia to the Gulf of Mexico, Caribbean,              operative understanding of the
                                              and electronic monitoring requirements,                  and South America. Timing of fishing                  dynamics and pricing of IBQ in the
                                              as well as non-Amendment 7 related                       trips are typically based on the                      Atlantic bluefin tuna fishery, and some
                                              constraints (e.g., market demands etc.).                 availability of target species, weather,              vessels reported having a difficult time
                                                 In light of these challenges facing the               moon phase, markets, crew and bait                    finding IBQ to lease and/or leasing IBQ
                                              fishery, as well as the Amendment 7                      availability, and other factors. Quarterly            at an affordable price. When
                                              objectives—which include ‘‘minimizing                    accountability may achieve a better                   implementing Amendment 7, NMFS
                                              constraints on fishing for target                        balance between minimizing constraints                acknowledged that the novelty of the
                                              species,’’ as well as ‘‘optimizing fishing               on fishing for target species and                     IBQ system (as well as other
                                              opportunities and maintaining                            ensuring accountability for incidental                Amendment 7 requirements) could
                                              profitability’’—NMFS has utilized its                    bluefin catch, due to the fact that it                create uncertainty in the fishery, and
                                              authority to transfer quota inseason to                  allows a vessel owner to determine the                therefore delayed implementation of
                                              the Longline category (80 FR 45098; July                 timing of lease transactions or level of              trip-level accountability during the first
                                              29, 2015; 81 FR 19; January 4, 2106; 82                  quota debt they are comfortable                       year of the IBQ Program, instead
                                              FR 12296; March 2, 2017) to foster                       maintaining over a longer period.                     requiring annual accountability during
                                              conditions in which vessel owners                        Alleviation of the timing constraint                  2015. During 2016 and 2017, both the
                                              become more willing to lease IBQ,                        associated with trip-level accountability             pelagic longline fishery and NMFS
                                              optimize fishing opportunity, and                        would provide additional flexibility. A               gained a better understanding of the IBQ
                                              reduce uncertainty in the fishery. NMFS                  vessel owner may need flexibility to pay              market. NMFS anticipates that
                                              modified the IBQ Program in 2017 (81                     costs associated with fishing (fuel, bait,            understanding of the IBQ market will
                                              FR 95903, December 29, 2016) to                          ice, labor, repairs, etc.), including the             continue to improve with time and
                                              provide additional flexibility regarding                 cost of leasing IBQ, on a timeline unique             agrees with the commenters that such
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                                              the distribution of inseason Atlantic                    to their operation and finances. The                  understanding will be augmented by
                                              bluefin tuna (BFT) quota transfers to the                opportunity to fish with a low IBQ                    quarterly accountability.
                                              Longline category. That rulemaking                       balance or with quota debt may enable                    Comment 2: The five commenters that
                                              provided NMFS the flexibility to                         a vessel owner to continue to obtain                  fully supported the proposed measures
                                              distribute quota inseason either to all                  revenue during the time period when                   anticipated improvements to the IBQ
                                              qualified IBQ share recipients (i.e.,                    they are looking for quota to lease and               leasing market, including aspects of the
                                              share recipients who have associated                     accommodate different types of fishing                cost and logistics of leasing. Regarding


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                                              61492            Federal Register / Vol. 82, No. 248 / Thursday, December 28, 2017 / Rules and Regulations

                                              costs and logistics, five commenters                     the perceived need to ‘‘hoard’’ IBQ by                would reduce the chances the pelagic
                                              noted the importance of quarterly                        vessels would be reduced. Furthermore,                longline vessels would be tied to the
                                              accountability in providing additional                   the commenter stated, under quarterly                 dock while attempting to acquire IBQ,
                                              time to lease IBQ and that quarterly                     accountability (and removal of the                    especially for those vessels that received
                                              accountability would allow more time                     minimum amount of IBQ to fish),                       little or no IBQ shares under
                                              to obtain IBQ when prices are low. One                   vessels would not lose the value of IBQ               Amendment 7. Several commenters
                                              commenter stated that leasing is highly                  during the latter part of the year by                 stated the fishery would have a better
                                              compromised when a lessee is bidding                     maintaining the minimum amount of                     opportunity to fully utilize U.S. ICCAT
                                              for IBQ on short notice, even if the                     quota, whether or not they anticipate                 quotas for target species such as
                                              lessee knows a vessel owner from whom                    needing the quota to account for bluefin              swordfish. One commenter noted that
                                              to lease quota, stating that bids under                  catch.                                                the proposed measure would add
                                              time pressure favor lessors, in terms of                    Response: NMFS agrees that quarterly               revenue to help the ‘‘dwindling’’
                                              price. Under quarterly accountability,                   accountability may improve the end-of-                American fleet, as well as reduce the
                                              the commenter stated, leasing prices                     the year IBQ market. At the end of a                  U.S. seafood trade deficit.
                                              would be more reasonable, and reflect                    year, if a vessel has quota debt                         Response: NMFS agrees that the
                                              the ‘‘ample supply’’ of IBQ, instead of                  remaining at, the quota debt will carry               additional flexibility for fishing
                                              the lease pricing being ‘‘inflated and                   forward to the subsequent year, whereas               operations resulting from quarterly
                                              unreasonable.’’ One commenter stated                     available IBQ balance does not carry                  accountability would result in social
                                              that lessors tend to have different levels               forward. This creates increased                       benefits for the portion of the fleet that
                                              of participation in the fishery, or less of              incentives to resolve quota debt                      is constrained by quota debt or low IBQ
                                              a need for IBQ than lessees, which tends                 immediately at a time when there may                  balances. The social benefits include a
                                              to provide an advantage to the lessor                    not be as much quota in the IBQ market.               decrease in some vessel owner/operator
                                              under trip-level accountability (that may                Under trip-level accounatability, a                   stress and uncertainty in addition to
                                              be reduced under quarterly                               vessel that is fishing during December                economic benefits described below and
                                              accountability). For example, the                        in the Atlantic may not be willing to                 under Responses to Comments 3 and 4.
                                              commenter stated that lessors may not                    lease to another vessel due to the                    NMFS agrees that quarterly
                                              be actively fishing in the pelagic                       minimum quota requirement (276 lb)                    accountability will reduce the chances
                                              longline fishery or, if fishing, may be                  and the desire to retain some quota in                that vessels with quota debt or low IBQ
                                              fishing in locations and times where                     case the vessel encounters a bluefin                  balance will not be able to depart on
                                              they do not expect to catch bluefin. One                 tuna. This final rule removes the                     fishing trips and to earn fishing revenue
                                              commenter stated that quarterly                          minimum quota requirement after the                   due to a lack of IBQ, will support
                                              accountability would be beneficial                       first trip of the quarter, thus vessel                increased revenue for some of the
                                              because it can be difficult to contact                   owners may be willing to lease more at                pelagic longline fleet and contribute
                                              people when searching for available IBQ                  year’s end without concern about                      towards full utilization of the U.S.
                                              to lease, and even after negotiation, the                interfering with their ability to fish                ICCAT quotas for target species, and
                                              lessor may not have access to the online                 during that quarter.                                  may contribute to the reduction of the
                                              system in a timely manner. The                              Comment 4: The five commenters that                U.S. seafood trade deficit.
                                              commenter stated that the time                           fully supported the proposed measures                    Comment 5: One commenter
                                              constraint of trip-level accountability is               anticipated ancillary benefits from                   supported providing additional
                                              particularly difficult for vessel operators              quarterly accountability that are less                flexibility to the pelagic longline fishery
                                              who are looking for IBQ to lease in a                    directly related to IBQ leasing per se,               through quarterly accountability
                                              short window of time between two                         but that are related to flexibility in their          because they were encouraged by the
                                              fishing trips. One commenter stated that                 fishing operations, resulting in benefits             results of the IBQ program, specifically
                                              quarterly accountability would enhance                   to the fishery as a whole. One                        by the reduction in dead discards by the
                                              the ability for vessel owners to plan                    commenter stated that U.S. pelagic                    pelagic longline fishery during 2015 and
                                              their businesses.                                        longline operators would have peace of                2016 (compared to 2014, prior to the
                                                 Response: NMFS agrees that quarterly                  mind as they leave the dock fishing for               implementation of Amendment 7). The
                                              accountability will improve the IBQ                      target species, due to the flexibility                commenter stated that the dead discard
                                              market by providing lessees more time                    associated with quarterly accountability.             data suggests the IBQ Program is
                                              to shop for IBQ and lease at reasonable                  Another commenter stated that, under                  achieving the goals of limiting dead
                                              prices, which more accurately reflect                    quarterly accountability, captains would              discards and providing strong
                                              supply. NMFS agrees that the flexibility                 be able to fish more confidently in                   incentives to avoid bluefin interactions.
                                              associated with quarterly accountability                 search of target species without fear of              The commenter stated that in order to
                                              will help facilitate successive fishing                  immediate shutdown because of                         be fully successful, the IBQ Program
                                              trips consistent with typical longline                   interactions with BFT that went beyond                must also balance those objectives with
                                              vessel practice (i.e., without extended                  their available IBQ balance at the time.              the objective of optimizing fishing
                                              wait time between trips), reduce                         One commenter stated that trip-level                  opportunities and maintaining
                                              uncertainty in planning, and provide                     accountability was burdensome to                      profitability. Another commenter
                                              more time to conduct the logistics                       vessels and hurt their ability to get back            acknowledged the success of the IBQ
                                              associated with IBQ leasing.                             on the water if they were unfortunate                 Program to date, but was concerned that
                                                 Comment 3: Several commenters                         and had an interaction with bluefin and               quarterly accountability would
                                              stated that quarterly accountability                     that active vessels will gain additional              undermine its success.
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                                              would improve the IBQ market at the                      economic and operational flexibility                     Response: NMFS agrees that based on
                                              end of the year because IBQ would be                     because they will no longer have to                   available information to date, the IBQ
                                              leased as needed rather than on a                        ‘stockpile’ IBQ. One commenter stated                 Program has reduced the amount of
                                              speculative basis and would increase                     that the flexibility affects operations in            dead discards in the pelagic longline
                                              the availability of IBQ for lease to those               multiple ways that have the net effect of             fishery, and appears to be meeting the
                                              that need it during the end of the year                  more effectively fishing for target                   objectives of the IBQ Program. A full
                                              time period. One commenter stated that                   species and that quarterly accountability             evaluation of the IBQ Program during its


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                                                               Federal Register / Vol. 82, No. 248 / Thursday, December 28, 2017 / Rules and Regulations                                      61493

                                              first 3 years of operation (2015 through                 associated with the IBQ Program,                      Systems (satellite tracking) and
                                              2017) will occur during the 3-year                       affecting only the timing of full                     Electronic Monitoring Systems (video
                                              review, completion of which is                           accountability. Quarterly accountability              cameras as associated equipment).
                                              anticipated in 2019. The 3-year review                   will require vessel owners to resolve                    Additionally, NMFS has determined
                                              will evaluate all the objectives of the                  quota debt and obtain the minimum                     that the 3-year review will be able to
                                              IBQ Program, including limiting bluefin                  amount of IBQ prior to fishing for the                effectively evaluate the IBQ Program
                                              tuna interactions, reducing bluefin dead                 first time in a calendar year quarter.                including consideration of two minor
                                              discards, optimizing fishing                             NMFS believes that vessel owners will                 regulatory changes to the program since
                                              opportunities, and maintaining                           not forget that they must fully account               its inception (this final rule, and
                                              profitability. The response to the                       for bluefin tuna retained or discarded                previous rule regarding the distribution
                                              commenter’s concerns about                               dead, even if on a quarterly basis.                   of inseason quota transfers to the
                                              undermining the success of the IBQ                       Quarterly accountability will not result              Longline category; 81 FR 95903,
                                              Program is addressed in the response to                  in a generalized ‘‘quota debt mindset,’’              December 29, 2016). The pelagic
                                              Comment 6.                                               but will provide vessel owners some                   longline fishery is a highly diverse and
                                                 Comment 6: One commenter did not                      additional flexibility to carry an amount             dynamic fishery, and NMFS believes it
                                              support quarterly accountability, stating                of quota debt commensurate with their                 is important to incorporate operational
                                              that it would encourage a ‘‘debt                         unique business operations. Vessel                    flexibility into management of the
                                              mindset’’ in which vessel operators fish                 owners will have more flexibility in                  fishery where possible. Analyzing the
                                              more in the present with only the hope                   their fishing operations, but no less                 pelagic longline fishery under varying
                                              of future leasing to ‘pay for’ the bluefin               incentive to avoid bluefin, given that all            conditions may in fact enhance NMFS’
                                              catch, that a quarter is too long before                 bluefin must be accounted for using                   ability to understand and evaluate the
                                              requiring full accounting, and that they                 IBQ, IBQ is allocated to vessels in                   IBQ Program.
                                              were concerned about a lack of IBQ to                    limited amounts, and leasing additional                  Quarterly accountability will achieve
                                              account for the bluefin caught by all                    IBQ comes at a price. It should be noted              a better balance between minimizing
                                              pelagic longline fishers. The commenter                  the amount of bluefin retained or                     some operational constraints on fishing
                                              was concerned about weakening the IBQ                    discarded dead will continue to be                    for target species and ensuring
                                              restrictions and undermining the past                    tracked on a trip-level basis and the                 accountability for incidental bluefin
                                              success of the IBQ program in                            appropriate balance of IBQ (either a                  catch by allowing a vessel owner more
                                              minimizing bluefin bycatch and                           positive balance or negative balance/                 flexibility to determine the timing of
                                              reducing dead discards, while                            ‘quota debt’) will be maintained. At the              lease transactions or level of quota debt
                                              minimizing reductions in target catch.                   end of a trip on which bluefin tuna are               they are comfortable maintaining over a
                                              Specifically the commenter was                                                                                 longer period. Alleviation of the timing
                                                                                                       retained or discarded dead, a vessel’s
                                              concerned that quarterly accountability                                                                        constraint associated with trip-level
                                                                                                       IBQ balance will be reduced by the
                                              could result in exceeding the overall                                                                          accountability will provide additional
                                                                                                       appropriate amount. If the trip catch
                                              pelagic longline quota at the end of the                                                                       flexibility. A vessel owner may need
                                                                                                       exceeds the vessel’s available quota, the
                                              calendar year, especially with the                                                                             flexibility to pay costs associated with
                                                                                                       vessel will incur quota debt.
                                              occurrence of a ‘disaster set’. The                                                                            fishing (fuel, bait, ice, labor, repairs,
                                              commenter also stated that the proposed                     Current landings and dead discard                  etc.), including the cost of leasing IBQ,
                                              change to the IBQ regulations is                         data do not support the commenter’s                   on a timeline unique to their operation
                                              premature, in light of the upcoming                      concern that there will not be enough                 and finances. The opportunity to fish
                                              formal review of the IBQ Program (‘‘3-                   IBQ to account for all bluefin caught by              with a low IBQ balance or with quota
                                              year review’’) by NMFS, as well as the                   the pelagic longline fleet. During 2015,              debt may enable a vessel owner to
                                              fact that NMFS already made a                            the first year of the IBQ Program, there              continue to obtain revenue during the
                                              modification to the IBQ to increase                      was annual accountability (i.e., vessels              time period when they are looking for
                                              flexibility (81 FR 95903, December 29,                   could fish in quota debt and there was                quota to lease and accommodate
                                              2016). The commenter stated that                         no minimum amount of IBQ to fish, but                 different types of fishing operations and
                                              multiple changes to the IBQ Program                      quota debt accumulated during the full                financial obligations.
                                              prior to the 3-year review will make it                  year). Trip-level accountability was not                 Comment 7: One commenter was
                                              difficult to evaluate the IBQ Program,                   implemented until 2016. During 2015                   unsure of the intent of the proposed
                                              and that any changes to the IBQ                          and 2016, 35 percent and 50 percent                   measures with respect to the balance of
                                              Program should only occur after the                      (respectively) of the adjusted Longline               impacts on the operation of the fishery
                                              3-year review.                                           Category quota was caught (not                        and the impacts on bluefin bycatch.
                                                 Response: NMFS disagrees with the                     including the distinct Northeast Distant              Specifically, the commenter supported
                                              conclusions of the commenters that                       Area quota that has different IBQ                     quarterly accountability, provided the
                                              quarterly accountability will increase                   accountability rules for the first 25 mt).            primary intent is to address the
                                              the potential for bluefin catch (landings                In the unlikely event that the Longline               economic objectives of the 2006
                                              and dead discards) to exceed the pelagic                 Category quota were approached, NMFS                  Consolidated HMS FMP. If the intent of
                                              longline quota and the concern that the                  has the authority under § 635.28(a)(3) to             the action is also to further reduce
                                              measures will undermine the success of                   close the fishery when the Atlantic                   bycatch of bluefin, the commenter did
                                              the IBQ Program to date. Although                        Tunas Longline category quota is                      not think quarterly accountability
                                              quarterly accountability will modify the                 reached, projected to be reached, or                  would achieve that objective.
                                              timing of IBQ accountability, full                       exceeded, or when there is high                          Response: This action, as an
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                                              accountability for bluefin tuna catch                    uncertainty regarding the estimated or                adjustment to Amendment 7, is
                                              will be maintained and will not affect                   documented levels of bluefin tuna                     consistent with all of the objectives in
                                              the overall limits set on bluefin tuna                   catch. Lastly, the extensive vessel                   Amendment 7 and with all 10 national
                                              catch through quotas and other                           reporting and monitoring requirements                 standards of the Magnuson-Stevens Act.
                                              measures. The regulatory change is                       applicable to vessels fishing with                    This final rule is not anticipated to
                                              relatively minor with respect to the full                pelagic longline gear will remain in                  impact the overall level of bluefin
                                              scope of Amendment 7 regulations                         effect, including Vessel Monitoring                   bycatch by the pelagic longline fishery


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                                              61494            Federal Register / Vol. 82, No. 248 / Thursday, December 28, 2017 / Rules and Regulations

                                              or the overall level of accountability,                  will not result in substantial changes to                Current regulations require permitted
                                              which is managed through the IBQ                         fishing timing overall. Moreover, the                 Atlantic Tunas Longline vessels to
                                              Program consistent with Amendment 7.                     level of fishing remains capped by the                possess a minimum amount of IBQ to
                                                                                                       U.S. bluefin tuna quota; the timing of                depart on a fishing trip with pelagic
                                              Changes From the Proposed Rule
                                                                                                       the fishing is substantively managed by               longline gear and account for bluefin
                                                 Changes to regulatory text from those                 the various subquota categories,                      tuna catch (fish retained or discarded
                                              in the proposed rule were made to                        inseason actions (e.g., regarding                     dead) using IBQ (0.25 mt for a trip in the
                                              correct cross-references that were                       retention limits), and seasons. Minor                 Gulf of Mexico and 0.125 mt for a trip
                                              incorrect at the proposed rule stage and                 modifications in individual vessel                    in the Atlantic). At the end of a trip on
                                              to improve clarity of the proposed                       practice related to the timing of certain             which bluefin tuna are caught, a vessel’s
                                              regulations. The proposed regulatory                     trips will not increase or decrease the               IBQ balance is reduced by the amount
                                              text at § 635.15(b)(3)(i) specified that a               quota nor the fishing mortality                       caught. If the trip catch exceeds the
                                              vessel owner or operator must have ‘‘the                 associated with that quota or have any                vessel’s available quota, the vessel will
                                              relevant required minimum IBQ                            other environmental effects. The annual               incur quota debt (i.e., exceeding its
                                              allocation for the region in which the                   U.S. bluefin tuna quota and subquota                  available IBQ balance). In this case, the
                                              fishing activity will occur.’’ This same                 allocations to the Longline category will             regulations required the vessel to obtain
                                              language was added to § 635.15(b)(3)(ii)                 not be affected by this action.                       additional IBQ through leasing to
                                              and (b)(5)(i) to improve clarity. Incorrect                 NMFS has prepared a Regulatory                     resolve that quota debt and to acquire
                                              cross-references in § 635.15(b)(5)(i) and                Impact Review (RIR) and a Final                       the minimum IBQ amount before
                                              (ii) were corrected to refer to                          Regulatory Flexibility Analysis (FRFA),               departing on a subsequent trip using
                                              § 635.15(b)(9) rather than § 635.15(f).                  which present and analyze anticipated                 pelagic longline gear. Thus, a pelagic
                                              Classification                                           social and economic impacts of the                    longline vessel owner who took
                                                                                                       alternatives contained in this final rule.            consecutive trips had to account for
                                                 The NMFS Assistant Administrator                                                                            bluefin tuna catch in almost real time,
                                              has determined that the final rule is                    The list of alternatives and their
                                                                                                       analyses are provided in the RIR and are              effectively creating a system of ‘‘trip-
                                              consistent with the 2006 Consolidated                                                                          level accountability’’ for those vessels.
                                              HMS FMP and its amendments, the                          not repeated here in their entirety. A
                                                                                                       copy of the RIR prepared for this final                  This action modifies these rules to
                                              Magnuson-Stevens Act, ATCA, and                                                                                require vessels to resolve quota debt on
                                              other applicable law.                                    rule is available from NMFS (see
                                                                                                       ADDRESSES).
                                                                                                                                                             a quarterly basis (i.e., they must balance
                                                 This final rule has been determined to                                                                      the debt and obtain the minimum
                                              be not significant for purposes of                          A FRFA was prepared, as required by
                                                                                                                                                             amount required to depart on a fishing
                                              Executive Order 12866.                                   section 604 of the Regulatory Flexibility
                                                                                                                                                             trip before going on a trip in the next
                                                 This action is categorically excluded                 Act (RFA, 5 U.S.C. 604 et seq.), and is               quarter). Vessels will be allowed to fish
                                              from the requirement to prepare an                       included below. The FRFA describes                    with a low IBQ balance or with quota
                                              environmental assessment in                              the economic impact this rule will have               debt during a calendar quarter. Vessels
                                              accordance with NOAA Administrative                      on small entities. A description of the               will still be required to report bluefin
                                              Order (NAO) 216–6A. This action may                      action, why it is being implemented,                  tuna catch at the end of each trip (and
                                              appropriately be categorically excluded                  and the legal basis for this action are               account for it with IBQ), but this
                                              from the requirement to prepare either                   contained in the SUMMARY section of the               regulatory change would provide the
                                              an environmental assessment or                           preamble.                                             flexibility to fish even if the vessel has
                                              environmental impact statement in                           The goal of the RFA is to minimize                 less than the minimum amount of IBQ,
                                              accordance with CE A1 of the                             the economic burden of federal                        including quota debt, until the first
                                              Companion Manual for NAO 216–6A for                      regulations on small entities. To that                fishing trip in each calendar quarter. For
                                              an action that is a technical correction                 end, the RFA directs federal agencies to              example, under the new measure, after
                                              or a change to a fishery management                      assess whether the regulation is likely to            the initial trip, if a vessel has a low
                                              action or regulation, which does not                     result in significant economic impacts                balance or quota debt in January 2018,
                                              result in a substantial change in any of                 to a substantial number of small entities,            the vessel will be allowed to fish
                                              the following: Fishing location, timing,                 and identify and analyze any significant              without first resolving that low balance
                                              effort, authorized gear types, access to                 alternatives to the rule that accomplish              or quota debt through March 31, 2018.
                                              fishery resources or harvest levels. By                  the objectives of applicable statutes and             In order to depart on a pelagic longline
                                              somewhat altering the timing of the                      minimizes any significant effects on                  fishing trip in the following quarter,
                                              accounting for bluefin tuna by                           small entities.                                       starting April 1, 2018, that vessel will
                                              individual pelagic longline vessels, the                                                                       need to lease additional IBQ resolve the
                                                                                                       Statement of the Need for and
                                              changes in this action could also be                                                                           quota debt and acquire the minimum
                                                                                                       Objectives of This Final Rule
                                              expected to alter some fishing timing,                                                                         amount of IBQ required to fish.
                                              and this is the intent of the additional                    In compliance with section 604(b)(1)                  The rule will provide flexibility for
                                              flexibility offered by this action. NMFS                 of the RFA, this action is needed is to               two important operational business
                                              expects this to result in some minor                     provide some additional flexibility                   decisions made by vessel owners:
                                              alterations in fishing trip timing by                    regarding the timing of accounting for                Decisions regarding quota balance and
                                              individual vessel owners. Timing would                   bluefin tuna catch with the IBQ Program               quota debt (subject to full accounting
                                              not, however, be altered in a way that                   in a manner that maintains                            quarterly) and decisions regarding the
                                              would constitute a substantial change.                   accountability for bluefin tuna bycatch               timing and price at which they lease
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                                              In practice, this action provides some                   and a strong incentive for pelagic                    additional quota. Importantly, this
                                              individual vessels flexibility to alter the              longline vessels to avoid interactions                regulatory change will maintain vessel
                                              timing of some of their fishing trips                    with bluefin tuna, while minimizing                   accountability for bluefin tuna catch
                                              within a three-month period. Given the                   constraints on fishing for target species             and the associated incentives for vessel
                                              size of the fleet and the number of                      and, to the greatest extent possible, the             operators to minimize catch of bluefin
                                              fishing trips taken, such minor                          socioeconomic impacts on affected                     tuna. By changing the timing of the
                                              variations in individual fishing trips                   fisheries.                                            accountability, however, the proposed


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                                                               Federal Register / Vol. 82, No. 248 / Thursday, December 28, 2017 / Rules and Regulations                                         61495

                                              rule will provide some additional                        than $11 million for commercial fishing.              reporting requirements under the rule
                                              flexibility in vessel operations and thus                The average annual gross revenue per                  for such small entities;
                                              provide vessel owners more of a                          active pelagic longline vessel was                       3. Use of performance rather than
                                              reasonable opportunity to catch                          estimated to be $187,000 based on the                 design standards; and
                                              available quota for target species (i.e.,                170 active vessels between 2006 and                      4. Exemptions from coverage of the
                                              swordfish and yellowfin tuna).                           2012 that produced an estimated $31.8                 rule, or any part thereof, for small
                                                                                                       million in revenue annually. The                      entities.
                                              A Summary of the Significant Issues                                                                               These categories of alternatives are
                                              Raised by the Public Comments in                         maximum annual revenue for any
                                                                                                       pelagic longline vessel between 2006                  described at 5 U.S.C. 603 (c)(1)–(4).
                                              Response to the Initial Regulatory                                                                             NMFS examined each of these
                                              Flexibility Analysis, a Summary of the                   and 2015 was $1.9 million, well below
                                                                                                       the NMFS small business size threshold                categories of alternatives. Regarding the
                                              Agency’s Assessment of Such Issues,                                                                            first and fourth categories, NMFS cannot
                                              and a Statement of Any Changes Made                      of $11 million in gross receipts for
                                                                                                       commercial fishing. Therefore, NMFS                   establish differing compliance or
                                              in the Rule as a Result of Such                                                                                reporting requirements for small entities
                                              Comments                                                 considers all Atlantic Tunas Longline
                                                                                                       permit holders to be small entities.                  or exempt small entities from coverage
                                                In compliance with section 604(a)(2)                      NMFS has determined that this rule                 of the rule or parts of it because all of
                                              of the RFA, NMFS reviewed the public                                                                           the businesses impacted by this rule are
                                                                                                       will apply to the small businesses
                                              comments in response to the proposed                                                                           considered small entities and thus the
                                                                                                       associated with the 136 Atlantic Tunas
                                              rule and the Initial Regulatory                                                                                requirements are already designed for
                                                                                                       Longline permits with IBQ shares and
                                              Flexibility Analysis (IRFA). While                                                                             small entities. NMFS examined
                                                                                                       the additional permitted Atlantic Tunas
                                              NFMS received several comments                                                                                 alternatives that fall under the second
                                                                                                       Longline vessels that fish with quota
                                              regarding the proposed rule, none of                                                                           category, which requires agencies to
                                                                                                       leased through the IBQ Program. NMFS
                                              those comments was specific to the                                                                             consider whether they can clarify,
                                                                                                       has determined that this action will not
                                              IRFA. In addition, no comments were                                                                            consolidate, or simplify compliance and
                                                                                                       likely directly affect any small
                                              received by the Chief Counsel for                                                                              reporting requirements under the rule
                                                                                                       organizations or small government
                                              Advocacy of the Small Business                                                                                 for small entities. The quarterly and
                                                                                                       jurisdictions defined under the RFA.                  annual accountability alternatives in the
                                              Administration in response to the
                                              proposed rule. The Agency did not                        Description of the Projected Reporting,               rule would reduce the burden of
                                              make any changes as a result of                          Record-Keeping, and Other Compliance                  complying with the existing trip level
                                              comments.                                                Requirements of the Rule, Including an                accountability requirement and thus
                                                                                                       Estimate of the Classes of Small Entities             would fall into this category of
                                              Description and Estimate of the Number                                                                         alternatives by simplifying compliance
                                              of Small Entities to Which the Final                     That Would Be Subject to the
                                                                                                       Requirements of the Report or Record                  and reporting requirements for small
                                              Rule Will Apply                                                                                                entities. The IBQ Program was designed
                                                 Section 604(b)(4) of the RFA requires                   Section 604(a)(5) of the RFA requires               to adhere to performance standards, the
                                              agencies to provide an estimate of the                   agencies to describe any new reporting,               third category above; modifications to
                                              number of small entities to which the                    record-keeping and other compliance                   the regulations implementing the IBQ
                                              rule will apply. The SBA has                             requirements. This rule does not contain              Program simply make adjustments to
                                              established size criteria for all major                  any new collection of information,                    the administration of those underlying
                                              industry sectors in the United States,                   reporting, or record-keeping                          performance standards. Thus, NMFS
                                              including fish harvesters. Provision is                  requirements but only modifies existing               has considered the significant
                                              made under SBA’s regulations for an                      requirements.                                         alternatives to the rule and focused on
                                              agency to develop its own industry-                      Description of the Steps the Agency Has               simplifying compliance and reporting
                                              specific size standards after consultation               Taken To Minimize the Significant                     requirements associated with IBQ
                                              with the SBA Office of Advocacy and an                   Economic Impact on Small Entities                     accountability in order to minimize any
                                              opportunity for public comment (see 13                   Consistent With the States Objectives of              significant economic impact of the rule
                                              CFR 121.903(c)). Under this provision,                   Applicable Statues, Including a                       on small entities.
                                              NMFS may establish size standards that                   Statement of the Factual, Policy, and                    NMFS analyzed several different
                                              differ from those established by the SBA                 Legal Reasons for Selecting the                       alternatives in this rulemaking, and the
                                              Office of Size Standards, but only for                   Alternative Adopted in the Final Rule                 rationale that NMFS used to determine
                                              use by NMFS and only for the purpose                     and the Reason That Each One of the                   the alternative for achieving the desired
                                              of conducting an analysis of economic                    Other Significant Alternatives to the                 objectives is described below.
                                              effects in fulfillment of the agency’s                   Rule Considered by the Agency Which                      The first alternative is the ‘‘no action’’
                                              obligations under the RFA. To utilize                    Affect Small Entities Was Rejected                    (status quo) alternative. The second
                                              this provision, NMFS must publish such                                                                         alternative, the preferred alternative,
                                              size standards in the Federal Register,                    One of the requirements of a FRFA is                would adjust the Atlantic HMS
                                              which NMFS did on December 29, 2015                      to describe any significant alternatives              regulations to require the pelagic
                                              (80 FR 81194, December 29, 2015).                        to the rule which accomplish the stated               longline fishery to account for bycatch
                                                 In this final rule effective on July 1,               objectives of applicable statutes and                 of bluefin tuna using IBQ on a quarterly
                                              2016, NMFS established a small                           which minimize any significant                        basis instead of before embarking on a
                                              business size standard of $11 million in                 economic impact of the rule on small                  trip after incurring quota debt. The third
                                              annual gross receipts for all businesses                 entities. The analysis shall discuss                  alternative would adjust the Atlantic
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                                              in the commercial fishing industry                       significant alternatives such as:                     HMS regulations to require the pelagic
                                              (NAICS 11411) for RFA compliance                           1. Establishment of differing                       longline fishery to account for bycatch
                                              purposes. NMFS considers all HMS                         compliance or reporting requirements or               of bluefin tuna using IBQ on an annual
                                              Atlantic Tunas Longline permit holders                   timetables that take into account the                 basis instead of before embarking on a
                                              (280 as of October 2016) to be small                     resources available to small entities;                trip after incurring quota debt. The
                                              entities because these vessels have                        2. Clarification, consolidation, or                 economic impacts of these three
                                              reported annual gross receipts of less                   simplification of compliance and                      alternatives are detailed below. Under


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                                              61496            Federal Register / Vol. 82, No. 248 / Thursday, December 28, 2017 / Rules and Regulations

                                              all three alternatives, a vessel’s IBQ                   using IBQ. However, since                             may not have; and improve their cash
                                              balance would be reduced to account for                  implementation, pelagic longline fishery              flow by allowing fishing while in quota
                                              bluefin tuna discarded dead or retained                  participants have consistently requested              debt (i.e., accrual of revenue with which
                                              immediately after the catch is reported                  some additional flexibility due to the                to lease additional IBQ). In 2016, each
                                              in the IBQ system. The difference                        costs associated with leasing IBQ, which              additional trip earned vessels on
                                              among the alternatives is the timing of                  can affect profitability of target species            average $24,707 in revenue.
                                              when quota debt or a low balance of IBQ                  catch, as well as the concern that vessel                NMFS used the available data on the
                                              precludes fishing and must be resolved                   owners appear to be unwilling to lease                IBQ lease markets to estimate the
                                              prior to departing on a subsequent trip                  IBQ at certain times, uncertainties                   potential reduction in transaction costs
                                              using pelagic longline gear (trip level,                 regarding the availability of IBQ to                  (mainly labor costs) associated with
                                              quarterly, or annually).                                 lease, and the impacts of other                       moving from trip-level accountability to
                                                 Under the ‘‘no action’’ alternative,                  constraints associated with Amendment                 quarterly accountability. There were 33
                                              NMFS would maintain the current                          7, including additional gear restricted               vessels that leased quota in 2016 and
                                              regulations regarding accounting for                     areas and VMS and electronic                          they were involved in 81 transactions.
                                              bluefin tuna catch and prerequisites for                 monitoring requirements. The ability of               On average, that is almost 2.5
                                              departing on a fishing trip with pelagic                 vessel owners to account for bluefin                  transactions per vessel that entered the
                                              longline gear on board. Current                          tuna using allocated quota or IBQ leased              IBQ lease market. Under the quarterly
                                              regulations require permitted Atlantic                   at an affordable price is key to the                  accountability requirement of
                                              Tunas Longline vessel owners (or vessel                  success of the IBQ Program. A trend that              Alternative 2, these vessels might be
                                              operators, where applicable) to possess                  may in part reflect the uncertainties and             able to reduce their number of lease
                                              a minimum amount of IBQ to depart on                     constraints associated with trip-level                transactions to one lease per quarter,
                                              a fishing trip with pelagic longline gear                accountability is the lower amount of                 which would reduce business costs and
                                              and account for bluefin tuna caught                      fishing effort in 2016 compared to 2015               have economic and operational benefits.
                                              (retained or discarded dead) using IBQ                   (despite the active IBQ leasing market in             Based on data from 2016 and the first-
                                              at the end of the trip. Therefore, at the                2016). For example, the number of trips,              half of 2017, quarterly accountability
                                              end of a trip on which bluefin tuna are                  active vessels, longline sets and hooks               could lead to 51 fewer lease transactions
                                              caught, a vessel owner’s balance of IBQ                  fished were all lower in 2016 than they               if vessel owners reduced their number
                                              would be reduced, possibly below the                     were in 2015. The No Action alternative               of lease transaction to one per quarter
                                              minimum amount needed for a                              would not, however, provide the timing                under this alternative. Each lease
                                              subsequent trip, or the vessel owner                     flexibility benefits that could facilitate            transaction costs vessel owners
                                              may incur quota debt by exceeding their                  better operational and economic                       additional labor time to search for
                                              IBQ balance. In either of these cases, the               decisions and options for individual                  available IBQ, contact potential lessors,
                                              vessel owner must obtain additional                      vessel owners who need to lease IBQ,                  negotiate prices, and complete the
                                              IBQ through leasing in order to satisfy                  and NMFS therefore does not prefer the                transactions. NMFS estimates that could
                                              the minimum requirement (and resolve                     no action alternative.                                involve approximately four hours per
                                              any quota debt they may have) prior to                                                                         transaction. Using the Bureau of Labor
                                              departing on another trip using pelagic                     Under the second alternative                       Statistics mean hourly wage rate for
                                              longline gear. The net effect of these                   (preferred), NMFS would adjust the                    first-line supervisors of farming, fishing
                                              rules is that a pelagic longline vessel                  Atlantic HMS regulations to require the               and forestry workers of $23 per hour in
                                              owner that takes multiple sequential                     pelagic longline fishery to account for               2016 (https://www.bls.gov/oes/current/
                                              trips must account for bluefin tuna in                   bycatch of bluefin tuna using IBQ on a                oes451011.htm), NMFS estimates the
                                              real-time, which NMFS refers to as                       quarterly basis instead of before                     value of the time involved in these
                                              ‘‘trip-level accountability.’’                           commencing any fishing trip while in                  additional 51 leases to be approximately
                                                 This approach was implemented by                      quota debt or with less than the                      worth $4,692 (51 transactions × 4 hours
                                              Amendment 7, but effectiveness was                       minimum required IBQ balance. The                     × $23/hr). Since this amount is based on
                                              delayed until January 1, 2016, in                        preferred alternative would provide                   six quarters, the annual estimated
                                              contrast to most of the other                            flexibility for two important operational             savings in the time associated with
                                              Amendment 7 measures that were                           business decisions made by vessel                     these leases is approximately $3,128 per
                                              effective on January 1, 2015. During                     owners. First, decisions regarding quota              year ($4,692/1.5 years). Given that 33
                                              2016, there were 1,025 pelagic longline                  balance and quota debt (subject to full               vessels were involved in leasing in
                                              trips by 85 vessels, which deployed                      accounting quarterly); and second,                    2016, the per vessel savings per year
                                              6,885 sets and 5,217,547 hooks. During                   decisions regarding the timing and price              would be approximately $95 per vessel.
                                              2016, there were 81 IBQ lease                            at which they lease additional quota. It                 Although it is not possible to
                                              transactions with a total of 141,183 lb                  is likely that the vessels would take                 precisely quantify the economic impacts
                                              IBQ leased and an average price of $2.52                 advantage of increased operational                    of the preferred alternative, the no
                                              per pound (weighted average). There                      flexibility as a result of removal of the             action alternative with trip-level
                                              were a total of 17 vessels that incurred                 constraints associated with the trip-level            accountability (i.e., the regulations
                                              quota debt at some time during the year,                 accountability. Specifically, operational             implemented in 2016) and the third
                                              with a total amount of 40,237 lb of debt                 flexibility associated with the preferred             alternative with annual accountability
                                              incurred and resolved. Mean revenue                      alternative may enable vessels to fish at             (i.e., the regulations implemented in
                                              per trip during 2016 based on logbook,                   more optimal times and avoid delay in                 2015) may be informative about the
                                              dealer, and weigh out data was $24,707.                  the timing of a trip due to a low IBQ                 likely impacts of the alternatives. The
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                                                 During 2016, pelagic longline vessel                  balance and issues related to availability            amount of flexibility to account for
                                              owners successfully accounted for                        of quota to lease; lease IBQ at a lower               bluefin tuna catch afforded by the
                                              bluefin tuna catch using the IBQ                         price by providing the flexibility for a              preferred alternative is likely
                                              Program and leasing quota among                          vessel owner to ‘shop around’; reduce                 somewhere in between the two other
                                              themselves (and from Purse Seine                         uncertainty in the IBQ market such that               alternatives: Trip-level accountability
                                              fishery participants) as needed in order                 vessels are willing to plan and                       (no action alternative) and annual
                                              to fully account for bluefin tuna catch                  undertake fishing trips they previously               accountability (third alternative).


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                                                               Federal Register / Vol. 82, No. 248 / Thursday, December 28, 2017 / Rules and Regulations                                        61497

                                                 Under the third alternative, there                    IBQ, as well as a lower average price per             lb ww). The minimum IBQ allocation
                                              would be no minimum amount of IBQ                        pound for leased IBQ.                                 for a vessel fishing in the Atlantic or
                                              required to fish and vessels would only                    There is uncertainty as to the full                 departing for a fishing trip in the
                                              be required to account for their catch at                impact of moving from trip-level                      Atlantic is 0.125 mt ww (276 lb ww). A
                                              the end of the year. The third alternative               accountability to annual accountability.              vessel owner or operator may not
                                              is the same as the IBQ accounting                        Annual accountability might cause                     declare into or depart on the first fishing
                                              regulations that were in effect during                   vessel owners to wait until December to               trip in a calendar year quarter with
                                              2015. During 2015, there were 1,124                      try to lease quota. Quota available for               pelagic longline gear onboard unless it
                                              pelagic longline trips, by 104 vessels,                  lease in December might become scarcer                has the relevant required minimum IBQ
                                              which deployed 7,769 sets and                            and this holiday period might cause                   allocation for the region in which the
                                              5,549,451 hooks. During 2015, there                      fewer IBQ shareholders to participate in              fishing activity will occur.
                                              were 49 IBQ lease transactions from 24                   the market. This increased scarcity of                   (ii) Subsequent fishing trips in a
                                              distinct vessels with a total of 126,407                 IBQ available for lease and the tight end             calendar year quarter. Subsequent to the
                                              lb IBQ leased, and an average price of                   of the year timeframe might result in                 first fishing trip in a calendar year
                                              $3.46 per pound (weighted average).                      spikes in the price for IBQ, thus driving             quarter, a vessel owner or operator may
                                              There were a total of 16 vessels that                    up costs and potentially leaving some                 declare into or depart on other fishing
                                              incurred quota debt, with a total amount                 vessel owners unable to resolve their                 trips with pelagic longline gear onboard
                                              of 42,746 lb. The mean revenue per trip                  quota debt at the last minute as the year             with less than the relevant minimum
                                              during 2015 based on dealer data was                     ends. NMFS prefers to incrementally                   IBQ allocation for the region in which
                                              $17,603 (not including bluefin tuna or                   move to quarterly accountability under                the fishing activity will occur, but only
                                              dolphin revenue). Although it is                         Alternative 2 to avoid some of the risks              within that same calendar year quarter.
                                              possible to glean some insights from                     associated with Alternative 3.                           (4) Accounting for bluefin tuna
                                              data from 2015 as the basis for                                                                                caught. (i) With the exception of vessels
                                                                                                       List of Subjects in 50 CFR Part 635
                                              evaluating potential economic impacts                                                                          fishing in the NED, in compliance with
                                              of the third alternative, the fishing                      Fisheries, Fishing, Fishing vessels,                the requirements of paragraph (b)(8) of
                                              behavior of the pelagic longline fleet                   Foreign relations, Imports, Penalties,                this section, all bluefin tuna catch (dead
                                              during 2015, the first year of                           Reporting and recordkeeping                           discards and landings) must be
                                              Amendment 7 regulations, was likely                      requirements, Treaties.                               deducted from the vessel’s IBQ
                                              heavily influenced by the newness of                       Dated: December 22, 2017.                           allocation at the end of each pelagic
                                              the regulations and the relatively high                  Samuel D. Rauch III,                                  longline trip.
                                              amount of uncertainty in 2015.                           Deputy Assistant Administrator for                       (ii) If the amount of bluefin tuna catch
                                                 There were approximately 2.0 lease                    Regulatory Programs, National Marine                  on a particular trip exceeds the amount
                                              transactions per vessel in 2015 versus                   Fisheries Service.                                    of the vessel’s IBQ allocation or results
                                              2.5 leases per vessel in 2016. Assuming                                                                        in an IBQ balance less than the
                                                                                                         For the reasons set out in the
                                              the 33 vessels that leased in 2016 only                                                                        minimum amount described in
                                                                                                       preamble, 50 CFR part 635 is amended
                                              leased 2 times per year under annual                                                                           paragraph (b)(3) of this section, the
                                                                                                       as follows:
                                              accountability, the number of leases                                                                           vessel may continue to fish, complete
                                              would be reduced from 81 to 66, a                        PART 635—ATLANTIC HIGHLY                              the trip, and depart on subsequent trips
                                              reduction of 15 transactions. This                       MIGRATORY SPECIES                                     within the same calendar year quarter.
                                              reduction in 15 transactions taking                                                                            The vessel must resolve any quota debt
                                              approximately 4 hours of an owner’s                      ■ 1. The authority citation for part 635              (see paragraph (b)(5) of this section)
                                              time would be worth $1,380 in labor                      continues to read as follows:                         before declaring into or departing on a
                                              costs per year (15 × 4 hours × $23/hr).                    Authority: 16 U.S.C. 971 et seq.; 16 U.S.C.         fishing trip with pelagic longline gear
                                              Given the 33 vessels that leased in 2016,                1801 et seq.                                          onboard in a subsequent calendar year
                                              the per vessel cost savings would be                                                                           quarter by acquiring adequate IBQ
                                                                                                       ■ 2. In § 635.15, revise paragraphs (b)(3),
                                              approximately $42 per vessel per year.                                                                         allocation to resolve the debt and
                                                                                                       (b)(4)(i) and (ii), (b)(5)(i) and (ii), and
                                              Alternatively, if vessel owners could                                                                          acquire the needed minimum allocation
                                                                                                       (b)(8)(i) to read as follows:
                                              reduce the number of leases to one per                                                                         through leasing, as described in
                                              year, the number of lease transactions                   § 635.15    Individual bluefin tuna quotas.           paragraph (c) of this section.
                                              could be reduced down to 33                              *      *      *     *      *                          *       *     *    *     *
                                              transactions based on 2016 lease                            (b) * * *                                             (5) * * *
                                              activity. This would result in 48 fewer                     (3) Minimum IBQ allocation. For                       (i) Quarter level quota debt. A vessel
                                              transactions, and would result in a                      purposes of this paragraph (b), calendar              with quota debt incurred in a given
                                              savings of up to $4,416 per year for the                 year quarters start on January 1, April 1,            calendar year quarter cannot depart on
                                              whole fleet or $134 per vessel that                      July 1, and October 1.                                a trip with pelagic longline gear onboard
                                              leased. However, based on the 2015 IBQ                      (i) First fishing trip in a calendar year          in a subsequent calendar year quarter
                                              lease data under annual accountability                   quarter. Before departing on the first                until the vessel leases allocation or
                                              that year, it is unlikely that the number                fishing trip in a calendar year quarter,              receives additional allocation (see
                                              of lease transactions would be reduced                   a vessel with an eligible Atlantic Tunas              paragraphs (c) and (b)(9) of this section),
                                              by this much. It is likely that there                    Longline category permit that fishes                  and applies allocation for the
                                              would be more leasing activity                           with or has pelagic longline gear                     appropriate region to settle the quota
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                                              associated with this alternative than                    onboard must have the minimum IBQ                     debt such that the vessel has the
                                              occurred during 2015, since 2015 was                     allocation for either the Gulf of Mexico              relevant minimum quota allocation
                                              the initial implementation of the IBQ                    or Atlantic, depending on fishing                     required to fish for the region in which
                                              Program and participants were just                       location. The minimum IBQ allocation                  the fishing activity will occur (see
                                              learning how the IBQ lease market                        for a vessel fishing in the Gulf of                   paragraph (b)(3) of this section). For
                                              worked and which IBQ Program                             Mexico, or departing for a fishing trip in            example, a vessel with quota debt
                                              participants were interested in leasing                  the Gulf of Mexico, is 0.25 mt ww (551                incurred during January through March


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                                              61498            Federal Register / Vol. 82, No. 248 / Thursday, December 28, 2017 / Rules and Regulations

                                              may not depart on a trip with pelagic                    longline trips if it has outstanding quota            § 635.71   Prohibitions.
                                              longline gear onboard during April                       debt from a previous fishing year.                    *     *     *      *   *
                                              through June (or subsequent quarters)                    *      *     *     *     *                              (b) * * *
                                              until the quota debt has been resolved                      (8) * * *
                                              such that the vessel has the relevant                       (i) When NED bluefin quota is                        (48) Depart on a fishing trip or deploy
                                              minimum quota allocation required to                     available. Permitted vessels fishing with             or fish with any fishing gear from a
                                              fish for the region in which the fishing                 pelagic longline gear may fish in the                 vessel with a pelagic longline on board
                                              activity will occur.                                     NED, and any bluefin catch will count                 without accounting for bluefin caught as
                                                                                                       toward the ICCAT-allocated separate                   specified in § 635.15(b)(4).
                                                 (ii) Annual level quota debt. If, by the
                                                                                                       NED quota until the NED quota has been                *     *     *      *   *
                                              end of the fishing year, a permit holder
                                              does not have adequate allocation to                     filled. Permitted vessels fishing in the                (56) Fish with or have pelagic
                                              settle its vessel’s quota debt through                   NED must still fish in accordance with                longline gear on board if any quota debt
                                              leasing or additional allocation (see                    the relevant minimum IBQ allocation                   associated with the permit from a
                                              paragraphs (c) and (b)(9) of this section),              requirements specified under paragraph                preceding calendar year quarter has not
                                              the vessel’s allocation will be reduced                  (b)(3) of this section to depart on a trip            been settled as specified in
                                              in the amount equal to the quota debt                    using pelagic longline gear.                          § 635.15(b)(5)(i).
                                              in the subsequent year or years until the                *      *     *     *     *                            *     *     *      *   *
                                              quota debt is fully accounted for. A                     ■ 3. In § 635.71, revise paragraphs                   [FR Doc. 2017–28046 Filed 12–27–17; 8:45 am]
                                              vessel may not depart on any pelagic                     (b)(48) and (56) to read as follows:                  BILLING CODE 3510–22–P
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Document Created: 2017-12-28 00:44:00
Document Modified: 2017-12-28 00:44:00
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionRules and Regulations
ActionFinal rule.
DatesEffective on January 27, 2018.
ContactThomas Warren, 978-281-9260; or Carrie Soltanoff, 301-427-8503.
FR Citation82 FR 61489 
RIN Number0648-BH17
CFR AssociatedFisheries; Fishing; Fishing Vessels; Foreign Relations; Imports; Penalties; Reporting and Recordkeeping Requirements and Treaties

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