83_FR_52962 83 FR 52760 - Fisheries of the Exclusive Economic Zone off Alaska; Pacific Halibut and Sablefish Individual Fishing Quota Program; Community Development Quota Program; Modifications to Recordkeeping and Reporting Requirements

83 FR 52760 - Fisheries of the Exclusive Economic Zone off Alaska; Pacific Halibut and Sablefish Individual Fishing Quota Program; Community Development Quota Program; Modifications to Recordkeeping and Reporting Requirements

DEPARTMENT OF COMMERCE
National Oceanic and Atmospheric Administration

Federal Register Volume 83, Issue 202 (October 18, 2018)

Page Range52760-52767
FR Document2018-22687

NMFS issues a final rule that modifies regulations governing

Federal Register, Volume 83 Issue 202 (Thursday, October 18, 2018)
[Federal Register Volume 83, Number 202 (Thursday, October 18, 2018)]
[Rules and Regulations]
[Pages 52760-52767]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-22687]



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DEPARTMENT OF COMMERCE



National Oceanic and Atmospheric Administration



15 CFR Part 902



50 CFR Parts 300 and 679



[Docket No. 170626590-8785-02]

RIN 0648-BG94




Fisheries of the Exclusive Economic Zone off Alaska; Pacific 

Halibut and Sablefish Individual Fishing Quota Program; Community 

Development Quota Program; Modifications to Recordkeeping and Reporting 

Requirements



AGENCY: National Marine Fisheries Service (NMFS), National Oceanic and 

Atmospheric Administration (NOAA), Commerce.



ACTION: Final rule.



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SUMMARY: NMFS issues a final rule that modifies regulations governing 

the Halibut and Sablefish Individual Fishing Quota (IFQ) Program. This 

rule includes three actions. The first action allows Western Alaska 

Community Development Quota (CDQ) groups to lease (to receive by 

transfer) halibut IFQ in IFQ regulatory areas 4B, 4C, and 4D in years 

of extremely low halibut commercial catch limits. This action is 

necessary to provide additional harvest opportunities to CDQ groups and 

community residents, and provide IFQ holders with the opportunity to 

receive value for their IFQ when the halibut commercial catch limits 

may not be large enough to provide for an economically viable fishery 

for IFQ holders. The second action removes an obsolete reference in the 

IFQ Program regulations. The third action clarifies IFQ vessel use cap 

regulations. This final rule is intended to promote the goals and 

objectives of the Northern Pacific Halibut Act of 1982 (Halibut Act), 

the Magnuson-Stevens Fishery Conservation and Management Act (Magnuson-

Stevens Act), the Fishery Management Plan (FMP) for Groundfish of the 

Bering Sea and Aleutian Islands (BSAI) Management Area, and other 

applicable laws.



DATES: This rule is effective on November 19, 2018.



ADDRESSES: Electronic copies of the Regulatory Impact Review (Analysis) 

prepared for this action are available from http://www.regulations.gov 

or from the NMFS Alaska Region website at http://alaskafisheries.noaa.gov.

    Written comments regarding the burden-hour estimates or other 

aspects of the collection-of-information requirements contained in this 

final rule may be submitted by mail to NMFS, Alaska Region, P.O. Box 

21668, Juneau, AK 99082-1668, Attn: Ellen Sebastian, Records Officer; 

in person at NMFS, Alaska Region, 709 West 9th Street, Room 420A, 

Juneau, AK; and by email to OIRA_Submission@omb.eop.gov or by fax to 

(202) 395-5806.



FOR FURTHER INFORMATION CONTACT: Stephanie Warpinski, (907) 586-7228.



SUPPLEMENTARY INFORMATION:



Authority for Action



    The International Pacific Halibut Commission (IPHC) and NMFS manage 

fishing for Pacific halibut through regulations established under the 

authority of the Halibut Act. The IPHC promulgates regulations 

governing the halibut fishery under the Convention between the United 

States and Canada for the Preservation of the Halibut Fishery of the 

Northern Pacific Ocean and Bering Sea (Convention). The IPHC's 

regulations are subject to approval by the Secretary of State with the 

concurrence of the Secretary of Commerce (Secretary). NMFS publishes 

the IPHC's regulations as annual management measures pursuant to 50 CFR 

300.62.

    The Halibut Act, at sections 773c(a) and (b), provides the 

Secretary with general responsibility to carry out the Convention and 

the Halibut Act. The Halibut Act, at section 773c(c), also provides the 

North Pacific Fishery Management Council (Council) with authority to 

develop regulations, including limited access regulations, that are in 

addition to, and not in



[[Page 52761]]



conflict with, approved IPHC regulations. Regulations developed by the 

Council may be implemented by NMFS only after approval by the 

Secretary.

    The Council developed the IFQ Program for the commercial halibut 

and sablefish fisheries. The IFQ Program for the halibut fishery is 

implemented by Federal regulations at 50 CFR part 679 under the 

authority of section 773 of the Halibut Act. The IFQ Program for the 

sablefish fishery is implemented by the BSAI FMP and Federal 

regulations at 50 CFR part 679 under the authority of section 303(b) of 

the Magnuson-Stevens Act.



Background



    On February 23, 2018, NMFS published a proposed rule (83 FR 8028) 

and invited public comment. The following summarizes the IFQ Program, 

the CDQ Program, the need for this final rule, and the anticipated 

effects of the final rule. Additional detail about the action is 

provided in the preamble of the proposed rule and in the Analysis.



The IFQ Program



    The IFQ Program for the management of the fixed gear (hook-and-line 

and pot gear) halibut and sablefish fisheries off Alaska was 

implemented by NMFS in 1995 (58 FR 59375, November 9, 1993). A central 

objective of the IFQ Program is to support the social and economic 

character of the fisheries and the coastal fishing communities where 

many of these fisheries are based. A detailed description of the IFQ 

Program can be found in the proposed rule for this action (83 FR 8028, 

February 23, 2018) and the Analysis.

    Under the IFQ Program, access to the fixed gear sablefish and 

halibut fisheries is limited to those persons holding quota share (QS). 

QS is an exclusive, revocable privilege that allows the holder to 

harvest a specific percentage of either the total allowable catch (TAC) 

in the sablefish fishery or the annual commercial catch limit in the 

halibut fishery. QS is designated for specific geographic areas of 

harvest, a specific vessel operation type (catcher vessel or catcher/

processor), and for a specific range of vessel sizes that may be used 

to harvest the sablefish or halibut (vessel category).

    This final rule uses the term ``Area'' to refer to a specific IFQ 

regulatory area. The IFQ Program designates four vessel categories of 

halibut QS: Category A shares designated for catcher/processors, 

vessels that process their catch at sea, and do not have a vessel 

length restriction; Category B shares designated for catcher vessels 

greater than 60 feet length overall (LOA); Category C shares designated 

for catcher vessels greater than 35 feet but less than or equal to 60 

feet LOA; and Category D shares designated for catcher vessels less 

than or equal to 35 feet LOA.

    NMFS annually issues IFQ permits to each QS holder. An annual IFQ 

permit authorizes the permit holder to harvest a specified amount of 

the IFQ species in a regulatory area from a specific operation type and 

vessel category. The Council and the public frequently use the terms 

``IFQ lease'' or ``lease'' to refer to the transfer of IFQ without a 

transfer of the underlying quota shares (QS). However, NMFS does not 

generally use the term ``lease'' in its IFQ Program regulations 

governing the transfer of IFQ. Therefore, for consistency with the 

terminology used in the existing regulations and for clarity, this rule 

uses the term ``transfer of IFQ.''

    NMFS issues halibut IFQ consistent with the IPHC's regulatory 

areas. NMFS' IFQ regulatory areas (Areas) are defined in 50 CFR part 

679 and described in Figure 15 to part 679 and Section 1.3 of the 

Analysis. The first action in this rule pertains to Areas 4B, 4C, 4D, 

and 4E. Area 4B includes waters in the Central and Western Aleutian 

Islands. Areas 4C, 4D, and 4E include waters north of the Aleutian 

Islands, in the Bering Sea, and around the Pribilof Islands. The IPHC 

considers Areas 4C, 4D, and 4E a single stock unit for assessment and 

management purposes, and the combined Areas are referred to as Area 

4CDE in this final rule.

    The commercial catch limits for Areas 4B and 4CDE are allocated 

between two distinct management programs, the CDQ Program and the IFQ 

Program. Throughout the duration of the IFQ Program, the Area 4E 

commercial catch limit has been exclusively allocated to the CDQ 

Program; therefore, no Area 4E QS or IFQ is allocated.

    Overall, the halibut IFQ commercial catch limits in Areas 4B and 

4CDE have trended downward over the past 15 years (see Section 3.6.1 of 

the Analysis). The Area 4B commercial catch limit has dropped 

substantially from 2001 to 2015. In 2015, the Area 4B commercial catch 

limit for IFQ was less than a quarter of what it was in 2001. The 

combined commercial catch limit for IFQ in Areas 4C and 4D has seen 

more fluctuation during this period, but has still experienced an 

overall downward trend since 2007. In 2007, the combined commercial 

catch limit for IFQ in Areas 4C and 4D was about 2.2 million pounds; in 

2015, it was about 0.7 million pounds.



The CDQ Program



    The CDQ Program was implemented in 1992, and in 1996, the Magnuson-

Stevens Act was amended to include provisions specific to the CDQ 

Program. The purposes of the CDQ Program are (1) to provide eligible 

western Alaska villages with the opportunity to participate and invest 

in fisheries in the BSAI management area; (2) to support economic 

development in western Alaska; (3) to alleviate poverty and provide 

economic and social benefits for residents of western Alaska; and (4) 

to achieve sustainable and diversified local economies in western 

Alaska (16 U.S.C. 1855(i)(1)(A)).

    The CDQ Program consists of six different non-profit managing 

organizations (CDQ groups) representing different geographical regions 

in Alaska. The CDQ Program receives annual allocations of TAC for a 

variety of commercially valuable species in the BSAI groundfish, crab, 

and halibut fisheries, which are in turn allocated among the CDQ 

groups. Among the species CDQ groups are allocated for commercial 

fishing, Pacific halibut is an important species for community resident 

employment and income. NMFS allocates halibut to CDQ groups for 

commercial fisheries in four Areas: 4B, 4C, 4D, and 4E (see Section 

3.5.1 of the Analysis). See Section 3.5.2 of the Analysis for 

additional detail on the history of the halibut CDQ fishery.

    The resident halibut CDQ fleets and criteria for participation in 

CDQ fisheries vary among the CDQ groups. The resident halibut CDQ 

fleets are impacted by internal economic decisions made by the CDQ 

groups and in the ways the CDQ groups choose to promote economic 

development in their communities. Many of the small boat fishermen in 

CDQ communities are dependent on the halibut fishery (Section 3.5.3 of 

the Analysis).



Need for Action



    The downward trend of halibut commercial catch limits in Areas 4B 

and 4CDE over the past 15 years has been dramatic, with current limits 

significantly lower than those of the recent past years. The recent 

years of low halibut abundance and the resulting low commercial catch 

limits in Areas 4B and 4CDE have made it increasingly difficult for 

most CDQ groups to create a viable commercial halibut fishing 

opportunity for their community residents.

    Under current regulations, CDQ groups cannot receive by transfer 

any IFQ derived from catcher vessel QS. Current regulations also 

prohibit halibut



[[Page 52762]]



QS holders from transferring their IFQ separately from the underlying 

QS except in very narrow, specific situations (see Section 3.7 of the 

Analysis for more information).

    To address these problems, this final rule creates a voluntary 

option for IFQ holders in Areas 4B, 4C, or 4D to temporarily transfer 

their halibut IFQ to a CDQ group in years of extremely low halibut 

abundance. This flexibility allows CDQ groups to expand the fishing 

opportunities for the small boat fleets operating out of the CDQ 

group's communities and provides IFQ holders with the opportunity to 

receive value for their IFQ when extremely low halibut commercial catch 

limits may not be large enough to provide for an economically viable 

fishery for IFQ holders.



This Final Rule and the Anticipated Effects



    This final rule includes three actions. The primary action, Action 

1, creates a voluntary option for an IFQ holder to temporarily transfer 

his or her halibut IFQ to a CDQ group in years of extremely low halibut 

abundance. Actions 2 and 3 make minor regulatory adjustments to remove 

an obsolete reference in the IFQ Program regulations and to clarify IFQ 

vessel use cap regulations, respectively. The following paragraphs 

provide additional detail on the actions.



Action 1



    This final rule (1) defines the halibut commercial catch limits 

under which CDQ groups may receive IFQ by transfer, (2) establishes 

limits on the types and amounts of IFQ that can be transferred, and (3) 

establishes reporting requirements for CDQ groups receiving IFQ by 

transfer. This final rule does not convert transferred IFQ to CDQ. 

Allocations of halibut CDQ will not change under this final rule.

    Under this final rule, CDQ groups may receive transfers of halibut 

catcher vessel IFQ (Categories B, C, and D IFQ) in Areas 4C and 4D when 

the halibut annual commercial catch limit is less than 1.5 million 

pounds in Area 4CDE. CDQ groups may receive transfers of halibut 

catcher vessel IFQ (Categories B, C, and D IFQ) in Area 4B when the 

annual halibut commercial catch limit is less than 1 million pounds in 

Area 4B. IFQ holders may transfer both blocked and unblocked IFQ to CDQ 

groups. This final rule does not revise current regulations that 

authorize an IFQ holder in Areas 4B, 4C and 4D to transfer his or her 

Category A halibut IFQ to any qualified person, including a CDQ group. 

However, as explained later, this rule provides additional harvesting 

flexibility for Category A halibut IFQ transferred to a CDQ group in 

years of extremely low halibut abundance.

    The Council recommended and NMFS is implementing these thresholds 

based on an analysis of commercial catch limits between 2008 and 2017, 

a period of time representing a range of different halibut commercial 

catch limits and decreasing opportunities for CDQ community fishermen. 

The Council considered a range of different commercial catch limit 

thresholds for both Areas 4B and 4CDE before selecting these 

thresholds. The preamble to the proposed rule provides additional 

information on the factors considered by the Council and NMFS (83 FR 

8028, March 26, 2018).

    These thresholds are intended to balance the goal of providing 

additional halibut fishing opportunities for CDQ residents when the 

halibut CDQ allocation alone may not be large enough to sustain small 

vessel resident fisheries, with the need to avoid potential adverse 

distributional impacts on other halibut IFQ users that could result if 

IFQ transfers were permitted without restrictions. These thresholds 

provide the flexibility to transfer halibut IFQ in Areas 4B, 4C, and 4D 

only during worst case scenarios for halibut commercial catch limits in 

these areas (Section 2.3 of the Analysis). For Area 4CDE, the Council 

determined and NMFS agrees that a halibut commercial catch limit below 

1.5 million pounds reflects a worst case scenario for Area 4CDE as it 

represents an extremely low commercial catch limit for these areas. For 

Area 4B, the Council determined and NMFS agrees that a halibut 

commercial catch limit below 1 million pounds, which has not been 

experienced during the last 10 years, reflects a worst case scenario 

for Area 4B as it represents an extremely low commercial catch limit 

for this area.

    This final rule establishes several limits on the catcher vessel 

IFQ that can be transferred while providing some flexibility with 

transferred catcher vessel and catcher/processor IFQ. The rationale for 

the limits can be found in Section 2.2 of the Analysis and in the 

preamble to the proposed rule (83 FR 8028, March 26, 2018). The limits 

are: (1) A CDQ group will be able to receive catcher vessel IFQ by 

transfer only for an area in which it also holds halibut CDQ; (2) no 

vessel greater than 51 feet length overall (LOA) may be used to harvest 

catcher vessel IFQ transferred to a CDQ group; (3) catcher vessel IFQ 

resulting from QS acquired after December 14, 2015, may not be 

transferred to a CDQ group until 3 years after the QS was acquired 

(i.e., a cooling off period); (4) an IFQ holder will not be allowed to 

transfer catcher vessel halibut IFQ to a CDQ group for more than 2 

consecutive years; and (5) in Area 4B, only those QS holders who hold 

fewer than 76,355 QS units specified for Area 4B will be allowed to 

transfer their catcher vessel IFQ to CDQ groups.

    The first limit prevents a CDQ group from receiving catcher vessel 

halibut IFQ by transfer for an area in which that CDQ group does not 

hold halibut CDQ. The Council recommended and NMFS is implementing this 

limit so that any catcher vessel IFQ transferred to a CDQ group is 

available for use in conjunction with halibut CDQ that is issued to a 

CDQ group.

    Additionally, under this final rule at Sec.  679.42(a)(1)(iii), a 

CDQ group that is eligible to receive a transfer of Area 4D catcher 

vessel IFQ will be able to harvest that IFQ, and any Category A IFQ it 

holds, in Area 4E (Section 3.5.2 of the Analysis). This flexibility is 

consistent with section 12(8) of the IPHC annual management measures 

(83 FR 10390, March 9, 2018), which allows Area 4D halibut CDQ to be 

harvested in Area 4E.

    The second limit prohibits the use of vessels greater than 51 feet 

LOA to harvest catcher vessel IFQ that is transferred to a CDQ group. 

The Council recommended and NMFS is implementing this vessel size limit 

because this is the largest size vessel owned by CDQ community 

residents that has landed halibut CDQ during the past 10 years, 2008 

through 2017 (Section 3.5.3 of the Analysis). Current regulations 

provide sufficient flexibility to allow IFQ that could be transferred 

to a CDQ group under this final rule to be fished on a vessel of any 

length up to 51 feet LOA (see Section 2.4 of the Analysis).

    This final rule clarifies that any Area 4D Category A IFQ that is 

held by a CDQ group or transferred to a CDQ group may be fished in Area 

4E by vessels less than or equal to 51 feet LOA when the commercial 

catch limit threshold in Area 4CDE is triggered. This final rule does 

not revise current regulations that authorize Category A IFQ for Areas 

4B, 4C, or 4D to be fished in the corresponding area on a vessel of any 

length.

    Under the third limit, IFQ resulting from QS acquired after 

December 14, 2015, may not be transferred to a CDQ group until 3 years 

after the QS was acquired (i.e., the date NMFS approved the transfer). 

This provision effectively creates a ``cooling off'' period. The 

Council recommended and NMFS is



[[Page 52763]]



implementing this cooling off period to reduce the incentive for 

individuals to acquire QS with the intention of transferring the 

resulting IFQ to CDQ groups rather than fishing the IFQ.

    The fourth limit prohibits an IFQ holder from transferring catcher 

vessel halibut IFQ for a specific IFQ regulatory area to a CDQ group 

for more than two consecutive years. This two-year limit applies to 

calendar years and only to years in which the commercial catch limit is 

below the threshold. Additionally, this limit applies to the transfer 

of any halibut IFQ for a specific area. If an IFQ holder chooses to 

transfer some but not all of his or her IFQ for a particular area 

during a year when the annual commercial catch limit for that area is 

set below the threshold, that transfer will count towards the two-year 

limit. Transfers of IFQ for one area will not affect the ability to 

transfer IFQ for another area. This final rule limits the potential for 

an IFQ holder to continuously transfer IFQ to CDQ groups rather than 

fishing that IFQ or transferring the underlying QS to other new 

entrants in the fishery.

    Under the fifth limit, only catcher vessel QS holders that hold 

fewer than 76,355 QS units specified for Area 4B may transfer their 

catcher vessel IFQ to CDQ groups. NMFS will consider all categories of 

Area 4B QS holdings regardless of blocked or unblocked status. This 

limit ensures that persons holding larger amounts of QS units continue 

to be active fishermen in the Area 4B halibut fishery while providing 

an opportunity for persons holding smaller amounts of QS units to 

transfer catcher vessel IFQ to CDQ groups if the 1 million pound 

commercial catch limit threshold to allow IFQ transfers is met. As 

described in the proposed rule (83 FR 8028, March 26, 2018), this 

limitation applies only for Area 4B to accommodate the specific nature 

of IFQ operations in the remote Aleutian Island communities in Area 4B.

    This final rule establishes a reporting requirement for CDQ groups 

that receive IFQ by transfer. The report is required only for those 

years in which CDQ groups received IFQ by transfer. CDQ groups that 

receive IFQ by transfer will be required to report the annual amount 

and vessel category of Area 4 halibut IFQ transferred to the CDQ group, 

the criteria used to select IFQ holders to transfer Area 4 halibut IFQ 

to the CDQ group, and the criteria used to determine the person(s) 

eligible to fish Area 4 halibut IFQ received by transfer. This report 

will allow the Council, NMFS, and the public to monitor the use of IFQ 

transferred to CDQ groups and provide the Council with information to 

determine whether the use of transferred IFQ is consistent with its 

intent for the action. This final rule requires the report to be 

submitted to NMFS and the Council no later than January 31 of the year 

after the IFQ was transferred to the CDQ group. This deadline is 

consistent with other reports required under the IFQ Program and 

ensures that NMFS and the Council have received the report prior to the 

issuance of IFQ, which typically occurs in mid-February. If a CDQ group 

is required to submit a report and does not do so by the deadline, the 

CDQ group will be ineligible to receive transfers of catcher vessel IFQ 

until the report is submitted.

    Under this final rule, a CDQ group that wants to receive halibut 

IFQ by transfer will make an arrangement with an IFQ holder to transfer 

his or her IFQ. The CDQ group must complete an Application for 

Temporary Transfer of Halibut and Sablefish IFQ and submit the 

application to NMFS for approval. Once approved, NMFS will issue the 

CDQ group an IFQ permit with the pounds of halibut IFQ that will be 

available to be fished. After determining who will fish the halibut 

IFQ, the CDQ group with the IFQ permit must apply to NMFS for a hired 

master permit for the vessel operator designated to fish the halibut 

IFQ. Current regulations authorize a vessel operator to harvest halibut 

IFQ and CDQ on the same fishing trip. A vessel operator harvesting both 

halibut CDQ and IFQ transferred to a CDQ group is required to carry (1) 

a halibut CDQ permit, (2) a CDQ hired master permit, (3) a copy of the 

IFQ permit of the CDQ group, and (4) an IFQ hired master permit. 

Additionally, any vessels fishing halibut IFQ transferred to a CDQ 

group will be subject to the current IFQ vessel use caps under Sec.  

679.42(h)(1). If a vessel harvests both halibut IFQ and CDQ, only the 

halibut IFQ accrues towards, and is subject to, the vessel use cap.

    Halibut that is landed by a vessel operator harvesting CDQ and IFQ 

will be debited off two separate catch limits. Therefore, for purposes 

of catch accounting, participants are required to track what amount of 

halibut harvest is associated with the group's CDQ and what amount is 

associated with the IFQ permit held by the CDQ group. This distinction 

must be recorded on the fish ticket (Section 3.8.11.3 of the Analysis). 

NMFS updated the database that monitors transfers of IFQ between permit 

holders and that is used to issue hired master permits to allow for 

this new type of transfer (see Section 3.8.11.4 of the Analysis).

    Under this final rule, CDQ groups are responsible for cost recovery 

fees based on the amount of IFQ pounds held on the IFQ permit. Section 

304(d)(2)(A) of the Magnuson-Stevens Act obligates NMFS to recover the 

actual costs of management, data collection, and enforcement (direct 

program cost) of the IFQ fisheries. Therefore, NMFS implemented a cost 

recovery fee program for the IFQ fisheries in 2000 (65 FR 14919, March 

20, 2000). While costs specific to the CDQ Program for halibut are 

recoverable through a separate cost recovery program (81 FR 150, 

January 5, 2016), this final rule requires regulatory changes to the 

IFQ transfer and hired master use provisions and therefore constitutes 

a change in management of the IFQ Program. CDQ group participants 

receiving IFQ transfers will be required to pay an IFQ cost recovery 

fee as a portion of the ex-vessel value of their landed halibut.

    Section 8(2) of the IPHC annual management measures (83 FR 10390, 

March 9, 2018) authorizes a vessel operator harvesting halibut CDQ in 

Areas 4D or 4E to retain halibut that are less than the size limit 

established by the IPHC for personal use. Under the status quo, a 

vessel operator harvesting halibut IFQ held by a CDQ group along with 

halibut CDQ may retain halibut less than legal size for personal use. 

Vessel operators harvesting both halibut CDQ and halibut IFQ 

transferred to a CDQ group in Areas 4D or 4E may retain halibut smaller 

in length than the size limit established by the IPHC for personal use 

as specified in section 8 of the IPHC annual management measures. The 

personal use allotment applies to all halibut IFQ transferred to a CDQ 

group under this exemption. Section 8(3) of the IPHC annual management 

measures requires a CDQ group to report on all retained halibut for 

personal use that are smaller than legal size and harvested on behalf 

of a CDQ group.

    This final rule modifies the definition of ``annual commercial 

catch limit'' at 50 CFR 300.61 to include definitions for Areas 3B and 

4A, and for Areas 4B, 4C, 4D, and 4E.

    This final rule modifies Sec.  679.41 to allow transfer of halibut 

IFQ in Areas 4B, 4C, and 4D in years of low halibut commercial catch 

limits in Areas 4B and 4CDE to CDQ groups along with the specific 

conditions under which this transfer activity may occur.

    This final rule adds a reporting requirement under Sec.  

679.5(l)(10) to require a CDQ group to submit a report to NMFS and the 

Council on the criteria it used to select IFQ holders from whom IFQ 

transfers were received, the criteria it used to determine the persons 

who



[[Page 52764]]



could harvest transferred IFQ, and the amount and type of IFQ 

transferred.

    This final rule adds a provision under Sec.  679.42 to allow Area 

4D IFQ that is transferred to a CDQ group to be harvested in Area 4E.



Anticipated Effects of Action 1



    The preamble to the proposed rule describes the anticipated effects 

of Action 1 on CDQ groups, CDQ residents, IFQ holders, and halibut QS 

holders (83 FR 8028, March 26, 2018).

    Overall, this final rule provides IFQ holders and CDQ groups with 

an opportunity to alleviate the adverse economic, social, and cultural 

impacts of extremely low levels of commercial halibut catch limits on 

Western Alaskan communities. This final rule could also provide 

distributional benefits to some processing plants, secondary service 

providers, and communities as a whole. This final rule could benefit 

halibut QS holders in Areas 4B, 4C, and 4D by permitting them to 

transfer their Area 4B, 4C, and 4D halibut IFQ in years of extremely 

low commercial catch limits. This final rule could also result in some 

consolidation of the number of IFQ trips, and could affect the 

decisions of QS holders to transfer their QS if they have the ability 

to transfer their IFQ to CDQ groups. The preamble of the proposed rule 

(83 FR 8028, March 26, 2018) and Section 3.8 of the Analysis have 

additional details on the anticipated effects of Action 1.



Action 2



    This final rule removes an obsolete reference in Sec.  

679.42(a)(2)(i). Currently, this regulation provides an exception to a 

prohibition at Sec.  679.42(a)(2). However, the exception refers to 

Sec.  679.42(k), which was modified in 2008 by the final rule to revise 

regulations governing the use of commercial halibut QS and the 

processing of non-IFQ species when processed halibut is on board a 

vessel (73 FR 8822; February 15, 2008). That final rule removed 

paragraph (k) and re-designated Sec.  679.42(l) as paragraph (k). NMFS 

inadvertently neglected to remove the cross-reference to paragraph (k) 

in Sec.  679.42(a)(2)(i). Therefore, with this final rule, NMFS removes 

the cross-reference to paragraph (k) to clarify that persons possessing 

unused Category B, C, or D halibut QS may be on board a catcher/

processor vessel when that vessel is harvesting and processing Category 

A halibut or sablefish IFQ, or is harvesting and processing non-IFQ 

species. The effects of this action are expected to be minor and 

beneficial by improving the clarity of the regulations.



Action 3



    This final rule clarifies existing regulations pertaining to the 

IFQ vessel limitations, also referred to as the vessel use caps. NMFS 

adds language to Sec.  679.42(h)(1) and (h)(2) to clarify that the 

vessel use caps apply to halibut and sablefish IFQ and not to halibut 

and sablefish CDQ. This action improves the clarity of the regulations 

and helps IFQ and CDQ participants understand the regulations to which 

they are subject. The effects of this action are expected to be minor 

and beneficial by improving the clarity of the regulations.



Comments and Responses



    NMFS received 4 comment letters on the proposed rule. One of the 

comment letters was outside the scope of this action. NMFS has 

summarized and responded to the six unique comments in the remaining 

three comment letters.

    Comment 1: There should not be a transfer of halibut IFQ during 

years of low abundance unless they give back to others during years of 

high abundance. They harvest so much that they caused the low 

abundance.

    Response: NMFS disagrees. Based on the best available scientific 

information from the IPHC, halibut is not considered to be subject to 

overfishing as that term is defined by the IPHC (Section 3.6.1 of 

Analysis). As described in Section 3.6.1 of the Analysis, annual catch 

limits are set in a precautionary manner to achieve optimum yield on a 

continuing basis. As described in the proposed rule and Section 3.6.1 

of the Analysis, this final rule does not increase the overall amount 

of halibut in Areas 4B or 4CDE that is authorized to be harvested on an 

annual basis. The final rule establishes a voluntary program that 

provides participants with an opportunity to utilize available catch to 

mutual benefit during times of low abundance and does not require QS 

holders to transfer IFQ to CDQ groups during times of low abundance or 

require CDQ groups to transfer IFQ back to QS holders during times of 

high abundance.

    Comment 2: This rule allows leasing quota when the fish populations 

are low and it would increase the chance of overfishing the halibut 

stock.

    Response: Annual halibut commercial catch limits are adjusted 

downward with decreasing abundance to protect the stock and prevent 

overfishing. This final rule does not change the process of allocating 

halibut among Areas or the process of establishing halibut commercial 

catch limits, nor will this final rule change specific management 

measures that govern the harvest of halibut in Areas 4B and 4CDE, such 

as fishing location, timing, effort, or authorized gear types. Section 

3.6.1 of the Analysis describes the current status of the halibut stock 

which is not overfished or subject to overfishing. This final rule 

creates an exception to allow CDQ groups to receive IFQ by transfer, 

within the established annual catch limits, in years of low abundance. 

Therefore, this final rule will not increase the chance of overfishing 

of the halibut stock.

    Comment 3: It is worth pausing to remember how bad the old days 

were, prior to implementation of the IFQ program. In order to catch as 

much of the TAC as possible, the industry did not pay attention to the 

environmental impact of its operations, worker safety, and excessive 

bycatch. NOAA is right to continue to refine this outstanding program. 

The proposed rule to allow transfers of IFQ to CDQ groups is well-

written and prevents abuse of the program by ``mailbox-fishermen'' and 

favors the coastal communities.

    Response: NMFS acknowledges this comment.

    Comment 4: If the halibut stock is low enough to trigger this 

flexibility, expanding flexibility will further aggravate the problem 

of an overfished stock. When the stock is low, then everyone should 

suffer, both CDQ fishermen and IFQ fishermen, in order for the stock to 

regenerate.

    Response: NMFS disagrees. Annual halibut commercial catch limits 

are set with precaution and adjusted downward in times of low abundance 

to avoid overfishing. The flexibility provided by this final rule will 

not create an overfished condition or contribute to overfishing. This 

final rule does not modify the methods for apportioning halibut catch 

limits between the CDQ and IFQ Programs. As halibut catch limits 

increase or decrease based on halibut abundance, participants in the 

CDQ and IFQ Programs are not affected any differently under this final 

rule than under current regulations. If the catch limit threshold is 

low enough to trigger the ability for QS holders to transfer their IFQ 

to CDQ groups, then QS holders and CDQ groups benefit from a voluntary 

market transaction. Disapproving this rule would not increase halibut 

abundance. Section 3.8 of the Analysis provides additional detail on 

the anticipated effects of this final rule.

    Comment 5: NMFS should consider setting lease terms for this 

exception because if the cost of the lease is too high, the benefits of 

the proposed rule would be blunted.

    Response: The Council and NMFS did not want to be involved in 

setting lease



[[Page 52765]]



terms, similar to other transfer exceptions in the IFQ Program. The IFQ 

Program relies on market-based values and NMFS anticipates that IFQ and 

CDQ participants would come to a private agreement in this voluntary 

exception. In Section 3.8.7 of the Analysis, NMFS describes the impact 

that the transfer of IFQ (i.e., leasing) could have on QS markets. As 

described in the preamble of this final rule, there are several 

limitations on the transfer of IFQ. These limitations are intended, in 

part, to maintain current fishing business practices and to limit 

potential adverse impacts on a range of participants in the CDQ and IFQ 

Programs. This final rule does not establish additional requirements on 

the specific agreements between QS holders and CDQ groups when 

transferring IFQ because the limitations established by this final rule 

sufficiently constrain the amount of IFQ, the vessel category of IFQ, 

and the specific halibut catch limits conditions in Areas 4B and 4CDE 

IFQ that may be transferred.

    Comment 6: NMFS should terminate the policy to allow unused quota 

to carry over to the next season and instead allow unused quota to 

carry over to the next season only for the purposes of leasing it to 

CDQ groups.

    Response: This final rule does not modify existing regulations that 

allow a QS holder's annual IFQ allocation to be adjusted to cover 

under- or over-harvest from the previous year (see regulations at Sec.  

679.40(d) and (e)). The Council focused on alternatives that would 

allow transfer of IFQ to CDQ groups within the year of low halibut 

commercial catch limits, rather than adjusting over/under harvest rules 

that would apply to the following year when the halibut commercial 

catch limits may not be under the thresholds, as a more direct method 

of addressing the issue.



OMB Revisions to PRA References in 15 CFR 902.1(b)



    Section 3507(c)(B)(i) of the Paperwork Reduction Act (PRA) requires 

that agencies inventory and display a current control number assigned 

by the Director of the Office of Management and Budget (OMB), for each 

agency's information collection. Section 902.1(b) identifies the 

location of NOAA regulations for which OMB approval numbers have been 

issued. Because this final rule adds a new collection-of-information 

for recordkeeping and reporting requirements, 15 CFR 902.1(b) is 

revised to reference correctly the section resulting from this final 

rule.



Changes From the Proposed Rule



    NMFS makes two minor changes to the proposed regulatory text in 

this final rule. First, Sec.  679.5(l)(10) is changed to include the 

words ``and the Council.'' New regulations at Sec.  679.5(w) require a 

CDQ group to submit a report to both NMFS and the Council. Adding this 

language to Sec.  679.5(l)(10) creates consistency between these 

sections. Second, NMFS changes ``halibut IFQ'' to ``IFQ halibut'' in 

Sec.  679.42(h)(1) and ``sablefish IFQ'' to ``IFQ sablefish'' in Sec.  

679.42(h)(2). The proposed changes were intended to refer to the type 

of fish (IFQ halibut and IFQ sablefish defined at Sec.  679.2) that 

will count towards the vessel limits prescribed by these paragraphs 

rather than the type of fishing rights (halibut IFQ and sablefish IFQ).



Classification



    The NMFS Alaska Region Administrator determined that this final 

rule is necessary for the conservation and management of the IFQ 

halibut fishery off Alaska and that it is consistent with the Magnuson-

Stevens Fishery Conservation and Management Act, the Halibut Act, and 

other applicable laws.

    Regulations governing the U.S. fisheries for Pacific halibut are 

developed by the IPHC, the Pacific Fishery Management Council, the 

Council, and the Secretary of Commerce. Section 5 of the Northern 

Pacific Halibut Act of 1982 (Halibut Act, 16 U.S.C. 773c) allows the 

Regional Council having authority for a particular geographical area to 

develop regulations governing the allocation and catch of halibut in 

U.S. Convention waters as long as those regulations are in addition to, 

and not in conflict with, IPHC regulations. This final rule is 

consistent with the Council's authority to allocate halibut catches 

among fishery participants in the waters in and off Alaska.

    This final rule has been determined to be not significant for the 

purposes of Executive Order 12866.

    The Chief Counsel for Regulation of the Department of Commerce 

certified to the Chief Counsel for Advocacy of the Small Business 

Administration during the proposed rule stage that this action would 

not have a significant economic impact on a substantial number of small 

entities. The factual basis for the certification was published in the 

proposed rule and is not repeated here. No comments were received 

regarding this certification or on the economic impacts of the rule 

more generally. As a result, a regulatory flexibility analysis was not 

required, and none was prepared, pursuant to 5 U.S.C. 605.



Collection-of-Information Requirements



    This final rule contains collection-of-information requirements 

subject to the PRA, which have been approved by OMB under OMB control 

number 0648-0764. After this final rule's effective date, OMB Control 

Number 0648-0764 will be merged with OMB Control Numbers 0648-0272 and 

0648-0711.

    Public reporting burden is estimated to average per response: 2 

hours for Application for Temporary Transfer of Halibut and Sablefish 

IFQ, 40 hours for the annual report, and 1 minute for electronic 

submission of cost recovery fees or 30 minutes for non-electronic fee 

submission. These estimates include the time for reviewing 

instructions, searching existing data sources, gathering and 

maintaining the data needed, and completing and reviewing the 

collection of information.

    Send comments regarding these burden estimates or any other aspect 

of this data collection, including suggestions for reducing the burden, 

to NMFS (see ADDRESSES), and by email to OIRA_Submission@omb.eop.gov, 

or fax to (202) 395-5806.

    Notwithstanding any other provision of the law, no person is 

required to respond to, nor shall any person be subject to penalty for 

failure to comply with, a collection of information subject to the 

requirement of the PRA, unless that collection of information displays 

a currently valid OMB control number. All currently approved NOAA 

collections of information may be viewed at: http://www.cio.noaa.gov/services_programs/prasubs.html.



List of Subjects



15 CFR Part 902



    Reporting and recordkeeping requirements.



50 CFR Part 300



    Administrative practice and procedure, Fisheries, Fishing, 

Reporting and recordkeeping requirements.



50 CFR Part 679



    Alaska, Fisheries, Reporting and recordkeeping requirements.



    Dated: October 12, 2018.

Samuel D. Rauch III,

Deputy Assistant Administrator for Regulatory Programs, National Marine 

Fisheries Service.



    For the reasons set out in the preamble, NMFS amends 15 CFR part 

902 and 50 CFR parts 300 and 679 as follows:



[[Page 52766]]



Title 15--Commerce and Foreign Trade



PART 902--NOAA INFORMATION COLLECTION REQUIREMENTS UNDER THE 

PAPERWORK REDUCTION ACT: OMB CONTROL NUMBERS



0

1. The authority citation for part 902 continues to read as follows:



    Authority: 44 U.S.C. 3501 et seq.





0

2. In Sec.  [thinsp]902.1, in the table in paragraph (b), under the 

entry ``50 CFR'', add an entry in alphanumeric order for ``679.5(w)'' 

to read as follows:





Sec.  [thinsp]902.1  OMB control numbers assigned pursuant to the 

Paperwork Reduction Act.



* * * * *

    (b) * * *



------------------------------------------------------------------------

                                                 Current OMB control No.

   CFR part or section where the information     (all numbers begin with

       collection requirement is located                  0648-)

------------------------------------------------------------------------

 

                                * * * * *

50 CFR:

 

                                * * * * *

  679.5(w).....................................                    -0272

 

                                * * * * *

------------------------------------------------------------------------



* * * * *



Title 50--Wildlife and Fisheries



PART 300--INTERNATIONAL FISHERIES REGULATIONS



0

3. The authority for 50 CFR part 300, subpart E, continues to read as 

follows:



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





0

4. In Sec.  300.61, revise the definition of ``Annual commercial catch 

limit'' to read as follows:





Sec.  300.61  Definitions.



* * * * *

    Annual commercial catch limit, for purposes of commercial fishing 

in:

    (1) Commission regulatory areas 2C and 3A, means the annual 

commercial allocation minus an area-specific estimate of commercial 

halibut wastage.

    (2) Commission regulatory areas 3B and 4A, means the annual total 

allowable halibut removals by persons fishing IFQ.

    (3) Commission regulatory areas 4B, 4C, 4D, and 4E, means the 

annual total allowable halibut removals by persons fishing IFQ and CDQ.

* * * * *



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



0

5. The authority citation for 50 CFR part 679 continues to read as 

follows:



    Authority: 16 U.S.C. 773 et seq.; 1801 et seq.; 3631 et seq.; 

Pub. L. 108-447; Pub. L. 111-281.



0

6. In Sec.  679.5, add paragraphs (l)(10) and (w) to read as follows:





Sec.  679.5   Recordkeeping and reporting.



* * * * *

    (l) * * *

    (10) A report on annual IFQ regulatory areas 4B, 4C, and 4D Halibut 

IFQ transfer activities must be submitted to NMFS and the Council by a 

CDQ group as required at Sec.  679.5(w).

* * * * *

    (w) Report on Area 4 halibut IFQ transfers to CDQ groups--(1) 

Applicability. A CDQ group that receives IFQ regulatory area 4 halibut 

IFQ by transfer must submit a timely and complete report on the CDQ 

group's annual halibut IFQ transfer activities for each calendar year 

that it receives IFQ regulatory area 4 halibut IFQ by transfer. A CDQ 

group is not required to submit a report for any calendar year in which 

it did not receive any IFQ regulatory area 4 halibut IFQ by transfer.

    (2) Time limits and submittal. A CDQ group must submit a complete 

report by January 31 of the year following a fishing year during which 

the CDQ group receives IFQ regulatory area 4B, 4C, or 4D halibut IFQ by 

transfer. The complete report must be submitted to the North Pacific 

Fishery Management Council, 605 West 4th Ave., Suite 306, Anchorage, AK 

99501-2252, and to NMFS-Alaska Regional Administrator, P.O. Box 21668, 

Juneau, AK, 99802-1668.

    (3) Complete report. A complete report contains all report 

requirements described in paragraphs (w)(4)(i) through (w)(4)(iii) of 

this section.

    (4) Report requirements. A CDQ group must report the following 

information:

    (i) The annual amount, IFQ regulatory area, and vessel category of 

IFQ regulatory area 4B, 4C, and 4D halibut IFQ transferred to the CDQ 

group;

    (ii) The criteria used to select IFQ holders to transfer IFQ 

regulatory area 4B, 4C, and 4D halibut IFQ to the CDQ group; and

    (iii) The criteria used to determine the person(s) eligible to 

harvest IFQ regulatory area 4B, 4C, and 4D halibut IFQ received by 

transfer.



0

7. In Sec.  679.41,

0

a. Add paragraph (c)(13);

0

b. Revise paragraphs (d)(1), (g)(1), and (h)(2); and

0

c. Add paragraph (o).

    The additions and revisions read as follows:





Sec.  679.41   Transfer of quota shares and IFQ.



* * * * *

    (c) * * *

    (13) If the person applying to receive halibut IFQ assigned to 

vessel categories B, C, or D in IFQ regulatory areas 4B, 4C, or 4D is a 

CDQ group, the following determinations are required:

    (i) The CDQ group applying to receive halibut IFQ for an IFQ 

regulatory area receives an annual allocation of halibut CDQ for that 

IFQ regulatory area pursuant to Sec.  679.31(b)(1);

    (ii) The QS holder applying to transfer halibut IFQ to a CDQ group 

has not transferred any halibut IFQ assigned to vessel categories B, C, 

or D for that IFQ regulatory area to a CDQ group during the last two 

consecutive fishing years;

    (iii) If the IFQ to be transferred to a CDQ group results from QS 

that was transferred to the QS holder after December 14, 2015, the QS 

holder applying to transfer halibut IFQ to a CDQ group has held the 

underlying QS for that IFQ for a minimum of 3 years from the date NMFS 

approved the transfer;

    (iv) If the IFQ to be transferred to a CDQ group is assigned to 

vessel categories B, C, or D in IFQ regulatory area 4B, the QS holder 

applying to transfer that halibut IFQ to a CDQ group holds fewer than 

76,355 halibut QS units in IFQ regulatory area 4B; and

    (v) The CDQ group applying to receive halibut IFQ has submitted a 

complete report if required to do so by Sec.  679.5(w).

    (d) * * *

    (1) Application for Eligibility. All persons, except as provided in 

paragraphs (d)(1)(i) and (d)(1)(ii) of this section, applying to 

receive QS or IFQ must submit an Application for Eligibility to Receive 

QS/IFQ (Application for Eligibility) containing accurate information to 

the Regional Administrator. The Regional Administrator will not approve 

a transfer of IFQ or QS to a person until the Application for 

Eligibility for that person is approved by the Regional Administrator. 

The Regional Administrator shall provide an Application for Eligibility 

form to any person on request.

    (i) An Application for Eligibility is not required for a CQE if a 

complete application to become a CQE, as described in paragraph (l)(3) 

of this section, has been approved by the Regional Administrator on 

behalf of an eligible community.



[[Page 52767]]



    (ii) An Application for Eligibility is not required for a CDQ 

group.

* * * * *

    (g) * * *

    (1) Except as provided in paragraph (f), paragraph (g)(2), 

paragraph (l), paragraph (n) or paragraph (o) of this section, only 

persons who are IFQ crew members, or who were initially issued QS 

assigned to vessel categories B, C, or D, and meet the eligibility 

requirements in this section, may receive by transfer QS assigned to 

vessel categories B, C, or D, or the IFQ resulting from it.

* * * * *

    (h) * * *

    (2) IFQ resulting from categories B, C, or D QS may not be 

transferred separately from its originating QS, except as provided in 

paragraph (d), paragraph (f), paragraph (k), paragraph (l), paragraph 

(m), or paragraph (o) of this section.

* * * * *

    (o) Transfer of IFQ to CDQ groups. (1) A QS holder who holds fewer 

than 76,355 units of halibut QS in IFQ regulatory area 4B may transfer 

halibut IFQ assigned to vessel categories B, C, or D in IFQ regulatory 

area 4B to a CDQ group that receives an allocation of IFQ regulatory 

area 4B halibut CDQ if the annual commercial halibut catch limit, as 

defined in Sec.  300.61 of this title, for Area 4B is less than 1 

million pounds in that calendar year.

    (2) A QS holder in IFQ regulatory areas 4C or 4D may transfer 

halibut IFQ assigned to vessel categories B, C, or D in IFQ regulatory 

areas 4C or 4D to a CDQ group that receives an allocation of halibut 

CDQ in that IFQ regulatory area if the annual commercial halibut catch 

limit, as defined in Sec.  300.61 of this title, for Area 4CDE is less 

than 1.5 million pounds in that calendar year.

    (3) A QS holder must meet the requirements in paragraph (c)(13) of 

this section to transfer halibut IFQ assigned to vessel categories B, 

C, or D in IFQ regulatory areas 4B, 4C, or 4D to a CDQ group.

    (4) A CDQ group that receives halibut IFQ by transfer may not 

transfer that halibut IFQ to any other person.



0

8. In Sec.  679.42,

0

a. Revise paragraph (a)(1);

0

b. Remove paragraph (a)(2)(i);

0

c. Redesignate paragraphs (a)(2)(ii) through (iv) as paragraphs 

(a)(2)(i) through (iii);

0

d. Add new paragraph (a)(2)(iv); and

0

e. Revise paragraphs (h)(1) introductory text and (h)(2) introductory 

text.

    The revisions and additions read as follows:





Sec.  679.42   Limitations on use of QS and IFQ.



    (a) * * *

    (1) The QS or IFQ specified for one IFQ regulatory area must not be 

used in a different IFQ regulatory area, except for the following:

    (i) All or part of the QS and IFQ specified for regulatory area 4C 

may be harvested in either Area 4C or Area 4D.

    (ii) All or part of the halibut CDQ specified for regulatory area 

4D may be harvested in either Area 4D or Area 4E.

    (iii) If a CDQ group is authorized to receive a transfer of halibut 

IFQ assigned to vessel categories B, C, or D in IFQ regulatory area 4D 

as specified in Sec.  679.41(o) of this part, all or part of the 

halibut IFQ specified for regulatory area 4D that is held by or 

transferred to a CDQ group may be harvested in either Area 4D or Area 

4E.

    (2) * * *

* * * * *

    (iv) Halibut IFQ assigned to vessel category B, C, or D held by a 

CDQ group may not be used on a vessel over 51 feet LOA, irrespective of 

the vessel category assigned to the IFQ.

* * * * *

    (h) * * *

    (1) Halibut. No vessel may be used, during any fishing year, to 

harvest more IFQ halibut than one-half percent of the combined total 

catch limits of halibut for IFQ regulatory areas 2C, 3A, 3B, 4A, 4B, 

4C, 4D, and 4E, except that:

* * * * *

    (2) Sablefish. No vessel may be used, during any fishing year, to 

harvest more IFQ sablefish than one percent of the combined fixed gear 

TAC of sablefish for the GOA and BSAI IFQ regulatory areas, except 

that:

* * * * *

[FR Doc. 2018-22687 Filed 10-17-18; 8:45 am]

 BILLING CODE 3510-22-P





                                             52760            Federal Register / Vol. 83, No. 202 / Thursday, October 18, 2018 / Rules and Regulations

                                             FAA; or Transport Canada Civil Aviation                 Canada; telephone 514–855–5000; fax 514–              economically viable fishery for IFQ
                                             (TCCA); or Bombardier, Inc.’s TCCA Design               855–7401; email thd.crj@                              holders. The second action removes an
                                             Approval Organization (DAO). If approved by             aero.bombardier.com; internet http://                 obsolete reference in the IFQ Program
                                             the DAO, the approval must include the                  www.bombardier.com.                                   regulations. The third action clarifies
                                             DAO-authorized signature.                                  (6) You may view this service information
                                                                                                     at the FAA, Transport Standards Branch,
                                                                                                                                                           IFQ vessel use cap regulations. This
                                             (q) Related Information                                                                                       final rule is intended to promote the
                                                                                                     2200 South 216th St., Des Moines, WA. For
                                                (1) Refer to Mandatory Continuing                    information on the availability of this               goals and objectives of the Northern
                                             Airworthiness Information (MCAI) Canadian               material at the FAA, call 206–231–3195.               Pacific Halibut Act of 1982 (Halibut
                                             Airworthiness Directive CF–2011–41R1,                      (7) You may view this service information          Act), the Magnuson-Stevens Fishery
                                             dated March 27, 2017, for related                       that is incorporated by reference at the              Conservation and Management Act
                                             information. This MCAI may be found in the              National Archives and Records                         (Magnuson-Stevens Act), the Fishery
                                             AD docket on the internet at http://                    Administration (NARA). For information on             Management Plan (FMP) for Groundfish
                                             www.regulations.gov by searching for and                the availability of this material at NARA, call
                                             locating Docket No. FAA–2018–0161.
                                                                                                                                                           of the Bering Sea and Aleutian Islands
                                                                                                     202–741–6030, or go to: http://
                                                (2) For more information about this AD,              www.archives.gov/federal-register/cfr/ibr-
                                                                                                                                                           (BSAI) Management Area, and other
                                             contact Cesar Gomez, Aerospace Engineer,                locations.html.                                       applicable laws.
                                             Airframe and Mechanical Systems Section,                                                                      DATES: This rule is effective on
                                             FAA, New York ACO Branch, 1600 Stewart                    Issued in Des Moines, Washington, on
                                                                                                     September 25, 2018.                                   November 19, 2018.
                                             Avenue, Suite 410, Westbury, NY 11590;                                                                        ADDRESSES: Electronic copies of the
                                             telephone: 516–228–7318; fax: 516–794–                  John P. Piccola,
                                                                                                                                                           Regulatory Impact Review (Analysis)
                                             5531.                                                   Acting Director, System Oversight Division,
                                                (3) Service information identified in this           Aircraft Certification Service.                       prepared for this action are available
                                             AD that is not incorporated by reference is                                                                   from http://www.regulations.gov or from
                                                                                                     [FR Doc. 2018–22137 Filed 10–17–18; 8:45 am]
                                             available at the addresses specified in                                                                       the NMFS Alaska Region website at
                                                                                                     BILLING CODE 4910–13–P
                                             paragraphs (r)(5) and (r)(6) of this AD.                                                                      http://alaskafisheries.noaa.gov.
                                                                                                                                                              Written comments regarding the
                                             (r) Material Incorporated by Reference
                                                                                                                                                           burden-hour estimates or other aspects
                                                (1) The Director of the Federal Register             DEPARTMENT OF COMMERCE                                of the collection-of-information
                                             approved the incorporation by reference                                                                       requirements contained in this final rule
                                             (IBR) of the service information listed in this         National Oceanic and Atmospheric
                                             paragraph under 5 U.S.C. 552(a) and 1 CFR
                                                                                                                                                           may be submitted by mail to NMFS,
                                                                                                     Administration                                        Alaska Region, P.O. Box 21668, Juneau,
                                             part 51.
                                                (2) You must use this service information                                                                  AK 99082–1668, Attn: Ellen Sebastian,
                                                                                                     15 CFR Part 902                                       Records Officer; in person at NMFS,
                                             as applicable to do the actions required by
                                             this AD, unless this AD specifies otherwise.                                                                  Alaska Region, 709 West 9th Street,
                                                (3) The following service information was            50 CFR Parts 300 and 679                              Room 420A, Juneau, AK; and by email
                                             approved for IBR on November 23, 2018.                  [Docket No. 170626590–8785–02]                        to OIRA_Submission@omb.eop.gov or
                                                (i) Bombardier Service Bulletin 100–32–20,                                                                 by fax to (202) 395–5806.
                                             Revision 02, dated April 14, 2015.                      RIN 0648–BG94
                                                                                                                                                           FOR FURTHER INFORMATION CONTACT:
                                                (ii) Bombardier Service Bulletin 100–32–
                                             21, dated May 24, 2012.                                 Fisheries of the Exclusive Economic                   Stephanie Warpinski, (907) 586–7228.
                                                (iii) Bombardier Challenger 300 BD–100               Zone off Alaska; Pacific Halibut and                  SUPPLEMENTARY INFORMATION:
                                             Time Limits/Maintenance Checks Manual,                  Sablefish Individual Fishing Quota
                                             Revision 17, dated December 15, 2016, Part                                                                    Authority for Action
                                                                                                     Program; Community Development
                                             2, Airworthiness Limitations, Section 5–10–
                                                                                                     Quota Program; Modifications to                          The International Pacific Halibut
                                             11:                                                                                                           Commission (IPHC) and NMFS manage
                                                (A) Task 29–21–13–101 Discard the                    Recordkeeping and Reporting
                                                                                                     Requirements                                          fishing for Pacific halibut through
                                             Auxiliary Hydraulic System Accumulator,                                                                       regulations established under the
                                             Part No. 900095–1;
                                                (B) Task 32–43–37–101 Discard the Brake
                                                                                                     AGENCY:  National Marine Fisheries                    authority of the Halibut Act. The IPHC
                                             Accumulator, Part No. 33–147500;                        Service (NMFS), National Oceanic and                  promulgates regulations governing the
                                                (C) Task 32–44–05–101 Discard the                    Atmospheric Administration (NOAA),                    halibut fishery under the Convention
                                             Emergency/Parking Brake Accumulator, Part               Commerce.                                             between the United States and Canada
                                             No. 33–155500.                                          ACTION: Final rule.                                   for the Preservation of the Halibut
                                                (iv) Bombardier Challenger 350 BD–100                                                                      Fishery of the Northern Pacific Ocean
                                             Time Limits/Maintenance Checks Manual,                  SUMMARY:    NMFS issues a final rule that             and Bering Sea (Convention). The
                                             Revision 9, dated December 18, 2017, Part 2,            modifies regulations governing the                    IPHC’s regulations are subject to
                                             Airworthiness Limitations, Section 5–10–11:             Halibut and Sablefish Individual                      approval by the Secretary of State with
                                                (A) Task 29–21–13–101 Discard the                    Fishing Quota (IFQ) Program. This rule
                                             Auxiliary Hydraulic System Accumulator,
                                                                                                                                                           the concurrence of the Secretary of
                                             Part No. 900095–1;
                                                                                                     includes three actions. The first action              Commerce (Secretary). NMFS publishes
                                                (B) Task 32–43–37–101 Discard the Brake              allows Western Alaska Community                       the IPHC’s regulations as annual
                                             Accumulator, Part No. 33–147500;                        Development Quota (CDQ) groups to                     management measures pursuant to 50
                                                (C) Task 32–44–05–101 Discard the                    lease (to receive by transfer) halibut IFQ            CFR 300.62.
                                             Emergency/Parking Brake Accumulator, Part               in IFQ regulatory areas 4B, 4C, and 4D                   The Halibut Act, at sections 773c(a)
                                             No. 33–155500.                                          in years of extremely low halibut                     and (b), provides the Secretary with
                                                (4) The following service information was            commercial catch limits. This action is               general responsibility to carry out the
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                                             approved for IBR on July 9, 2013 (78 FR                 necessary to provide additional harvest               Convention and the Halibut Act. The
                                             33206, June 4, 2013).                                   opportunities to CDQ groups and                       Halibut Act, at section 773c(c), also
                                                (i) Bombardier Service Bulletin 100–29–14,
                                             dated December 16, 2010.
                                                                                                     community residents, and provide IFQ                  provides the North Pacific Fishery
                                                (ii) Reserved.                                       holders with the opportunity to receive               Management Council (Council) with
                                                (5) For service information identified in            value for their IFQ when the halibut                  authority to develop regulations,
                                             this AD, contact Bombardier, Inc., 400 Côte-           commercial catch limits may not be                    including limited access regulations,
                                             Vertu Road West, Dorval, Québec H4S 1Y9,               large enough to provide for an                        that are in addition to, and not in


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                                                              Federal Register / Vol. 83, No. 202 / Thursday, October 18, 2018 / Rules and Regulations                                       52761

                                             conflict with, approved IPHC                            than 60 feet length overall (LOA);                    The CDQ Program
                                             regulations. Regulations developed by                   Category C shares designated for catcher                 The CDQ Program was implemented
                                             the Council may be implemented by                       vessels greater than 35 feet but less than            in 1992, and in 1996, the Magnuson-
                                             NMFS only after approval by the                         or equal to 60 feet LOA; and Category                 Stevens Act was amended to include
                                             Secretary.                                              D shares designated for catcher vessels               provisions specific to the CDQ Program.
                                               The Council developed the IFQ                         less than or equal to 35 feet LOA.                    The purposes of the CDQ Program are
                                             Program for the commercial halibut and                     NMFS annually issues IFQ permits to                (1) to provide eligible western Alaska
                                             sablefish fisheries. The IFQ Program for                each QS holder. An annual IFQ permit                  villages with the opportunity to
                                             the halibut fishery is implemented by                   authorizes the permit holder to harvest               participate and invest in fisheries in the
                                             Federal regulations at 50 CFR part 679
                                                                                                     a specified amount of the IFQ species in              BSAI management area; (2) to support
                                             under the authority of section 773 of the
                                                                                                     a regulatory area from a specific                     economic development in western
                                             Halibut Act. The IFQ Program for the
                                                                                                     operation type and vessel category. The               Alaska; (3) to alleviate poverty and
                                             sablefish fishery is implemented by the
                                                                                                     Council and the public frequently use                 provide economic and social benefits for
                                             BSAI FMP and Federal regulations at 50
                                                                                                     the terms ‘‘IFQ lease’’ or ‘‘lease’’ to refer         residents of western Alaska; and (4) to
                                             CFR part 679 under the authority of
                                                                                                     to the transfer of IFQ without a transfer             achieve sustainable and diversified local
                                             section 303(b) of the Magnuson-Stevens
                                                                                                     of the underlying quota shares (QS).                  economies in western Alaska (16 U.S.C.
                                             Act.
                                                                                                     However, NMFS does not generally use                  1855(i)(1)(A)).
                                             Background                                              the term ‘‘lease’’ in its IFQ Program                    The CDQ Program consists of six
                                                On February 23, 2018, NMFS                           regulations governing the transfer of                 different non-profit managing
                                             published a proposed rule (83 FR 8028)                  IFQ. Therefore, for consistency with the              organizations (CDQ groups) representing
                                             and invited public comment. The                         terminology used in the existing                      different geographical regions in Alaska.
                                             following summarizes the IFQ Program,                   regulations and for clarity, this rule uses           The CDQ Program receives annual
                                             the CDQ Program, the need for this final                the term ‘‘transfer of IFQ.’’                         allocations of TAC for a variety of
                                             rule, and the anticipated effects of the                   NMFS issues halibut IFQ consistent                 commercially valuable species in the
                                             final rule. Additional detail about the                 with the IPHC’s regulatory areas. NMFS’               BSAI groundfish, crab, and halibut
                                             action is provided in the preamble of                   IFQ regulatory areas (Areas) are defined              fisheries, which are in turn allocated
                                             the proposed rule and in the Analysis.                  in 50 CFR part 679 and described in                   among the CDQ groups. Among the
                                                                                                     Figure 15 to part 679 and Section 1.3 of              species CDQ groups are allocated for
                                             The IFQ Program                                                                                               commercial fishing, Pacific halibut is an
                                                                                                     the Analysis. The first action in this rule
                                                The IFQ Program for the management                   pertains to Areas 4B, 4C, 4D, and 4E.                 important species for community
                                             of the fixed gear (hook-and-line and pot                Area 4B includes waters in the Central                resident employment and income.
                                             gear) halibut and sablefish fisheries off               and Western Aleutian Islands. Areas 4C,               NMFS allocates halibut to CDQ groups
                                             Alaska was implemented by NMFS in                       4D, and 4E include waters north of the                for commercial fisheries in four Areas:
                                             1995 (58 FR 59375, November 9, 1993).                   Aleutian Islands, in the Bering Sea, and              4B, 4C, 4D, and 4E (see Section 3.5.1 of
                                             A central objective of the IFQ Program                  around the Pribilof Islands. The IPHC                 the Analysis). See Section 3.5.2 of the
                                             is to support the social and economic                   considers Areas 4C, 4D, and 4E a single               Analysis for additional detail on the
                                             character of the fisheries and the coastal              stock unit for assessment and                         history of the halibut CDQ fishery.
                                             fishing communities where many of                       management purposes, and the                             The resident halibut CDQ fleets and
                                             these fisheries are based. A detailed                   combined Areas are referred to as Area                criteria for participation in CDQ
                                             description of the IFQ Program can be                   4CDE in this final rule.                              fisheries vary among the CDQ groups.
                                             found in the proposed rule for this                                                                           The resident halibut CDQ fleets are
                                                                                                        The commercial catch limits for Areas              impacted by internal economic
                                             action (83 FR 8028, February 23, 2018)
                                                                                                     4B and 4CDE are allocated between two                 decisions made by the CDQ groups and
                                             and the Analysis.
                                                Under the IFQ Program, access to the                 distinct management programs, the CDQ                 in the ways the CDQ groups choose to
                                             fixed gear sablefish and halibut fisheries              Program and the IFQ Program.                          promote economic development in their
                                             is limited to those persons holding                     Throughout the duration of the IFQ                    communities. Many of the small boat
                                             quota share (QS). QS is an exclusive,                   Program, the Area 4E commercial catch                 fishermen in CDQ communities are
                                             revocable privilege that allows the                     limit has been exclusively allocated to               dependent on the halibut fishery
                                             holder to harvest a specific percentage                 the CDQ Program; therefore, no Area 4E                (Section 3.5.3 of the Analysis).
                                             of either the total allowable catch (TAC)               QS or IFQ is allocated.
                                                                                                        Overall, the halibut IFQ commercial                Need for Action
                                             in the sablefish fishery or the annual
                                             commercial catch limit in the halibut                   catch limits in Areas 4B and 4CDE have                  The downward trend of halibut
                                             fishery. QS is designated for specific                  trended downward over the past 15                     commercial catch limits in Areas 4B and
                                             geographic areas of harvest, a specific                 years (see Section 3.6.1 of the Analysis).            4CDE over the past 15 years has been
                                             vessel operation type (catcher vessel or                The Area 4B commercial catch limit has                dramatic, with current limits
                                             catcher/processor), and for a specific                  dropped substantially from 2001 to                    significantly lower than those of the
                                             range of vessel sizes that may be used                  2015. In 2015, the Area 4B commercial                 recent past years. The recent years of
                                             to harvest the sablefish or halibut                     catch limit for IFQ was less than a                   low halibut abundance and the resulting
                                             (vessel category).                                      quarter of what it was in 2001. The                   low commercial catch limits in Areas 4B
                                                This final rule uses the term ‘‘Area’’               combined commercial catch limit for                   and 4CDE have made it increasingly
                                             to refer to a specific IFQ regulatory area.             IFQ in Areas 4C and 4D has seen more                  difficult for most CDQ groups to create
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                                             The IFQ Program designates four vessel                  fluctuation during this period, but has               a viable commercial halibut fishing
                                             categories of halibut QS: Category A                    still experienced an overall downward                 opportunity for their community
                                             shares designated for catcher/                          trend since 2007. In 2007, the combined               residents.
                                             processors, vessels that process their                  commercial catch limit for IFQ in Areas                 Under current regulations, CDQ
                                             catch at sea, and do not have a vessel                  4C and 4D was about 2.2 million                       groups cannot receive by transfer any
                                             length restriction; Category B shares                   pounds; in 2015, it was about 0.7                     IFQ derived from catcher vessel QS.
                                             designated for catcher vessels greater                  million pounds.                                       Current regulations also prohibit halibut


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                                             52762            Federal Register / Vol. 83, No. 202 / Thursday, October 18, 2018 / Rules and Regulations

                                             QS holders from transferring their IFQ                  rule provides additional harvesting                   after the QS was acquired (i.e., a cooling
                                             separately from the underlying QS                       flexibility for Category A halibut IFQ                off period); (4) an IFQ holder will not be
                                             except in very narrow, specific                         transferred to a CDQ group in years of                allowed to transfer catcher vessel
                                             situations (see Section 3.7 of the                      extremely low halibut abundance.                      halibut IFQ to a CDQ group for more
                                             Analysis for more information).                            The Council recommended and                        than 2 consecutive years; and (5) in
                                                To address these problems, this final                NMFS is implementing these thresholds                 Area 4B, only those QS holders who
                                             rule creates a voluntary option for IFQ                 based on an analysis of commercial                    hold fewer than 76,355 QS units
                                             holders in Areas 4B, 4C, or 4D to                       catch limits between 2008 and 2017, a                 specified for Area 4B will be allowed to
                                             temporarily transfer their halibut IFQ to               period of time representing a range of                transfer their catcher vessel IFQ to CDQ
                                             a CDQ group in years of extremely low                   different halibut commercial catch                    groups.
                                             halibut abundance. This flexibility                     limits and decreasing opportunities for                  The first limit prevents a CDQ group
                                             allows CDQ groups to expand the                         CDQ community fishermen. The                          from receiving catcher vessel halibut
                                             fishing opportunities for the small boat                Council considered a range of different               IFQ by transfer for an area in which that
                                             fleets operating out of the CDQ group’s                 commercial catch limit thresholds for                 CDQ group does not hold halibut CDQ.
                                             communities and provides IFQ holders                    both Areas 4B and 4CDE before                         The Council recommended and NMFS
                                             with the opportunity to receive value for               selecting these thresholds. The                       is implementing this limit so that any
                                             their IFQ when extremely low halibut                    preamble to the proposed rule provides                catcher vessel IFQ transferred to a CDQ
                                             commercial catch limits may not be                      additional information on the factors                 group is available for use in conjunction
                                             large enough to provide for an                          considered by the Council and NMFS                    with halibut CDQ that is issued to a
                                             economically viable fishery for IFQ                     (83 FR 8028, March 26, 2018).                         CDQ group.
                                             holders.                                                   These thresholds are intended to                      Additionally, under this final rule at
                                                                                                     balance the goal of providing additional              § 679.42(a)(1)(iii), a CDQ group that is
                                             This Final Rule and the Anticipated                     halibut fishing opportunities for CDQ                 eligible to receive a transfer of Area 4D
                                             Effects                                                 residents when the halibut CDQ                        catcher vessel IFQ will be able to
                                               This final rule includes three actions.               allocation alone may not be large                     harvest that IFQ, and any Category A
                                             The primary action, Action 1, creates a                 enough to sustain small vessel resident               IFQ it holds, in Area 4E (Section 3.5.2
                                             voluntary option for an IFQ holder to                   fisheries, with the need to avoid                     of the Analysis). This flexibility is
                                             temporarily transfer his or her halibut                 potential adverse distributional impacts              consistent with section 12(8) of the
                                             IFQ to a CDQ group in years of                          on other halibut IFQ users that could                 IPHC annual management measures (83
                                             extremely low halibut abundance.                        result if IFQ transfers were permitted                FR 10390, March 9, 2018), which allows
                                             Actions 2 and 3 make minor regulatory                   without restrictions. These thresholds                Area 4D halibut CDQ to be harvested in
                                             adjustments to remove an obsolete                       provide the flexibility to transfer halibut           Area 4E.
                                             reference in the IFQ Program regulations                IFQ in Areas 4B, 4C, and 4D only during                  The second limit prohibits the use of
                                             and to clarify IFQ vessel use cap                       worst case scenarios for halibut                      vessels greater than 51 feet LOA to
                                             regulations, respectively. The following                commercial catch limits in these areas                harvest catcher vessel IFQ that is
                                             paragraphs provide additional detail on                 (Section 2.3 of the Analysis). For Area               transferred to a CDQ group. The Council
                                             the actions.                                            4CDE, the Council determined and                      recommended and NMFS is
                                                                                                     NMFS agrees that a halibut commercial                 implementing this vessel size limit
                                             Action 1                                                                                                      because this is the largest size vessel
                                                                                                     catch limit below 1.5 million pounds
                                                This final rule (1) defines the halibut              reflects a worst case scenario for Area               owned by CDQ community residents
                                             commercial catch limits under which                     4CDE as it represents an extremely low                that has landed halibut CDQ during the
                                             CDQ groups may receive IFQ by                           commercial catch limit for these areas.               past 10 years, 2008 through 2017
                                             transfer, (2) establishes limits on the                 For Area 4B, the Council determined                   (Section 3.5.3 of the Analysis). Current
                                             types and amounts of IFQ that can be                    and NMFS agrees that a halibut                        regulations provide sufficient flexibility
                                             transferred, and (3) establishes reporting              commercial catch limit below 1 million                to allow IFQ that could be transferred to
                                             requirements for CDQ groups receiving                   pounds, which has not been                            a CDQ group under this final rule to be
                                             IFQ by transfer. This final rule does not               experienced during the last 10 years,                 fished on a vessel of any length up to
                                             convert transferred IFQ to CDQ.                         reflects a worst case scenario for Area               51 feet LOA (see Section 2.4 of the
                                             Allocations of halibut CDQ will not                     4B as it represents an extremely low                  Analysis).
                                             change under this final rule.                           commercial catch limit for this area.                    This final rule clarifies that any Area
                                                Under this final rule, CDQ groups                       This final rule establishes several                4D Category A IFQ that is held by a CDQ
                                             may receive transfers of halibut catcher                limits on the catcher vessel IFQ that can             group or transferred to a CDQ group
                                             vessel IFQ (Categories B, C, and D IFQ)                 be transferred while providing some                   may be fished in Area 4E by vessels less
                                             in Areas 4C and 4D when the halibut                     flexibility with transferred catcher                  than or equal to 51 feet LOA when the
                                             annual commercial catch limit is less                   vessel and catcher/processor IFQ. The                 commercial catch limit threshold in
                                             than 1.5 million pounds in Area 4CDE.                   rationale for the limits can be found in              Area 4CDE is triggered. This final rule
                                             CDQ groups may receive transfers of                     Section 2.2 of the Analysis and in the                does not revise current regulations that
                                             halibut catcher vessel IFQ (Categories B,               preamble to the proposed rule (83 FR                  authorize Category A IFQ for Areas 4B,
                                             C, and D IFQ) in Area 4B when the                       8028, March 26, 2018). The limits are:                4C, or 4D to be fished in the
                                             annual halibut commercial catch limit is                (1) A CDQ group will be able to receive               corresponding area on a vessel of any
                                             less than 1 million pounds in Area 4B.                  catcher vessel IFQ by transfer only for               length.
                                             IFQ holders may transfer both blocked                   an area in which it also holds halibut                   Under the third limit, IFQ resulting
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                                             and unblocked IFQ to CDQ groups. This                   CDQ; (2) no vessel greater than 51 feet               from QS acquired after December 14,
                                             final rule does not revise current                      length overall (LOA) may be used to                   2015, may not be transferred to a CDQ
                                             regulations that authorize an IFQ holder                harvest catcher vessel IFQ transferred to             group until 3 years after the QS was
                                             in Areas 4B, 4C and 4D to transfer his                  a CDQ group; (3) catcher vessel IFQ                   acquired (i.e., the date NMFS approved
                                             or her Category A halibut IFQ to any                    resulting from QS acquired after                      the transfer). This provision effectively
                                             qualified person, including a CDQ                       December 14, 2015, may not be                         creates a ‘‘cooling off’’ period. The
                                             group. However, as explained later, this                transferred to a CDQ group until 3 years              Council recommended and NMFS is


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                                                              Federal Register / Vol. 83, No. 202 / Thursday, October 18, 2018 / Rules and Regulations                                       52763

                                             implementing this cooling off period to                 information to determine whether the                     Under this final rule, CDQ groups are
                                             reduce the incentive for individuals to                 use of transferred IFQ is consistent with             responsible for cost recovery fees based
                                             acquire QS with the intention of                        its intent for the action. This final rule            on the amount of IFQ pounds held on
                                             transferring the resulting IFQ to CDQ                   requires the report to be submitted to                the IFQ permit. Section 304(d)(2)(A) of
                                             groups rather than fishing the IFQ.                     NMFS and the Council no later than                    the Magnuson-Stevens Act obligates
                                                The fourth limit prohibits an IFQ                    January 31 of the year after the IFQ was              NMFS to recover the actual costs of
                                             holder from transferring catcher vessel                 transferred to the CDQ group. This                    management, data collection, and
                                             halibut IFQ for a specific IFQ regulatory               deadline is consistent with other reports             enforcement (direct program cost) of the
                                             area to a CDQ group for more than two                   required under the IFQ Program and                    IFQ fisheries. Therefore, NMFS
                                             consecutive years. This two-year limit                  ensures that NMFS and the Council                     implemented a cost recovery fee
                                             applies to calendar years and only to                   have received the report prior to the                 program for the IFQ fisheries in 2000
                                             years in which the commercial catch                     issuance of IFQ, which typically occurs               (65 FR 14919, March 20, 2000). While
                                             limit is below the threshold.                           in mid-February. If a CDQ group is                    costs specific to the CDQ Program for
                                             Additionally, this limit applies to the                 required to submit a report and does not              halibut are recoverable through a
                                             transfer of any halibut IFQ for a specific              do so by the deadline, the CDQ group                  separate cost recovery program (81 FR
                                             area. If an IFQ holder chooses to transfer              will be ineligible to receive transfers of            150, January 5, 2016), this final rule
                                             some but not all of his or her IFQ for                  catcher vessel IFQ until the report is                requires regulatory changes to the IFQ
                                             a particular area during a year when the                submitted.                                            transfer and hired master use provisions
                                             annual commercial catch limit for that                     Under this final rule, a CDQ group                 and therefore constitutes a change in
                                             area is set below the threshold, that                   that wants to receive halibut IFQ by                  management of the IFQ Program. CDQ
                                             transfer will count towards the two-year                transfer will make an arrangement with                group participants receiving IFQ
                                             limit. Transfers of IFQ for one area will               an IFQ holder to transfer his or her IFQ.             transfers will be required to pay an IFQ
                                             not affect the ability to transfer IFQ for              The CDQ group must complete an                        cost recovery fee as a portion of the ex-
                                             another area. This final rule limits the                Application for Temporary Transfer of                 vessel value of their landed halibut.
                                             potential for an IFQ holder to                          Halibut and Sablefish IFQ and submit                     Section 8(2) of the IPHC annual
                                             continuously transfer IFQ to CDQ                        the application to NMFS for approval.                 management measures (83 FR 10390,
                                             groups rather than fishing that IFQ or                  Once approved, NMFS will issue the                    March 9, 2018) authorizes a vessel
                                             transferring the underlying QS to other                 CDQ group an IFQ permit with the                      operator harvesting halibut CDQ in
                                             new entrants in the fishery.                                                                                  Areas 4D or 4E to retain halibut that are
                                                                                                     pounds of halibut IFQ that will be
                                                Under the fifth limit, only catcher                                                                        less than the size limit established by
                                                                                                     available to be fished. After determining
                                             vessel QS holders that hold fewer than                                                                        the IPHC for personal use. Under the
                                                                                                     who will fish the halibut IFQ, the CDQ
                                             76,355 QS units specified for Area 4B                                                                         status quo, a vessel operator harvesting
                                             may transfer their catcher vessel IFQ to                group with the IFQ permit must apply
                                                                                                                                                           halibut IFQ held by a CDQ group along
                                             CDQ groups. NMFS will consider all                      to NMFS for a hired master permit for
                                                                                                                                                           with halibut CDQ may retain halibut
                                             categories of Area 4B QS holdings                       the vessel operator designated to fish
                                                                                                                                                           less than legal size for personal use.
                                             regardless of blocked or unblocked                      the halibut IFQ. Current regulations
                                                                                                                                                           Vessel operators harvesting both halibut
                                             status. This limit ensures that persons                 authorize a vessel operator to harvest
                                                                                                                                                           CDQ and halibut IFQ transferred to a
                                             holding larger amounts of QS units                      halibut IFQ and CDQ on the same
                                                                                                                                                           CDQ group in Areas 4D or 4E may retain
                                             continue to be active fishermen in the                  fishing trip. A vessel operator harvesting            halibut smaller in length than the size
                                             Area 4B halibut fishery while providing                 both halibut CDQ and IFQ transferred to               limit established by the IPHC for
                                             an opportunity for persons holding                      a CDQ group is required to carry (1) a                personal use as specified in section 8 of
                                             smaller amounts of QS units to transfer                 halibut CDQ permit, (2) a CDQ hired                   the IPHC annual management measures.
                                             catcher vessel IFQ to CDQ groups if the                 master permit, (3) a copy of the IFQ                  The personal use allotment applies to
                                             1 million pound commercial catch limit                  permit of the CDQ group, and (4) an IFQ               all halibut IFQ transferred to a CDQ
                                             threshold to allow IFQ transfers is met.                hired master permit. Additionally, any                group under this exemption. Section
                                             As described in the proposed rule (83                   vessels fishing halibut IFQ transferred to            8(3) of the IPHC annual management
                                             FR 8028, March 26, 2018), this                          a CDQ group will be subject to the                    measures requires a CDQ group to report
                                             limitation applies only for Area 4B to                  current IFQ vessel use caps under                     on all retained halibut for personal use
                                             accommodate the specific nature of IFQ                  § 679.42(h)(1). If a vessel harvests both             that are smaller than legal size and
                                             operations in the remote Aleutian Island                halibut IFQ and CDQ, only the halibut                 harvested on behalf of a CDQ group.
                                             communities in Area 4B.                                 IFQ accrues towards, and is subject to,                  This final rule modifies the definition
                                                This final rule establishes a reporting              the vessel use cap.                                   of ‘‘annual commercial catch limit’’ at
                                             requirement for CDQ groups that receive                    Halibut that is landed by a vessel                 50 CFR 300.61 to include definitions for
                                             IFQ by transfer. The report is required                 operator harvesting CDQ and IFQ will                  Areas 3B and 4A, and for Areas 4B, 4C,
                                             only for those years in which CDQ                       be debited off two separate catch limits.             4D, and 4E.
                                             groups received IFQ by transfer. CDQ                    Therefore, for purposes of catch                         This final rule modifies § 679.41 to
                                             groups that receive IFQ by transfer will                accounting, participants are required to              allow transfer of halibut IFQ in Areas
                                             be required to report the annual amount                 track what amount of halibut harvest is               4B, 4C, and 4D in years of low halibut
                                             and vessel category of Area 4 halibut                   associated with the group’s CDQ and                   commercial catch limits in Areas 4B and
                                             IFQ transferred to the CDQ group, the                   what amount is associated with the IFQ                4CDE to CDQ groups along with the
                                             criteria used to select IFQ holders to                  permit held by the CDQ group. This                    specific conditions under which this
                                             transfer Area 4 halibut IFQ to the CDQ                  distinction must be recorded on the fish              transfer activity may occur.
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                                             group, and the criteria used to                         ticket (Section 3.8.11.3 of the Analysis).               This final rule adds a reporting
                                             determine the person(s) eligible to fish                NMFS updated the database that                        requirement under § 679.5(l)(10) to
                                             Area 4 halibut IFQ received by transfer.                monitors transfers of IFQ between                     require a CDQ group to submit a report
                                             This report will allow the Council,                     permit holders and that is used to issue              to NMFS and the Council on the criteria
                                             NMFS, and the public to monitor the                     hired master permits to allow for this                it used to select IFQ holders from whom
                                             use of IFQ transferred to CDQ groups                    new type of transfer (see Section                     IFQ transfers were received, the criteria
                                             and provide the Council with                            3.8.11.4 of the Analysis).                            it used to determine the persons who


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                                             52764            Federal Register / Vol. 83, No. 202 / Thursday, October 18, 2018 / Rules and Regulations

                                             could harvest transferred IFQ, and the                  Action 3                                              fishing location, timing, effort, or
                                             amount and type of IFQ transferred.                       This final rule clarifies existing                  authorized gear types. Section 3.6.1 of
                                                This final rule adds a provision under               regulations pertaining to the IFQ vessel              the Analysis describes the current status
                                             § 679.42 to allow Area 4D IFQ that is                   limitations, also referred to as the vessel           of the halibut stock which is not
                                             transferred to a CDQ group to be                        use caps. NMFS adds language to                       overfished or subject to overfishing.
                                             harvested in Area 4E.                                   § 679.42(h)(1) and (h)(2) to clarify that             This final rule creates an exception to
                                                                                                     the vessel use caps apply to halibut and              allow CDQ groups to receive IFQ by
                                             Anticipated Effects of Action 1                                                                               transfer, within the established annual
                                                                                                     sablefish IFQ and not to halibut and
                                                                                                                                                           catch limits, in years of low abundance.
                                                The preamble to the proposed rule                    sablefish CDQ. This action improves the
                                                                                                                                                           Therefore, this final rule will not
                                             describes the anticipated effects of                    clarity of the regulations and helps IFQ
                                                                                                                                                           increase the chance of overfishing of the
                                             Action 1 on CDQ groups, CDQ residents,                  and CDQ participants understand the
                                                                                                                                                           halibut stock.
                                             IFQ holders, and halibut QS holders (83                 regulations to which they are subject.                   Comment 3: It is worth pausing to
                                             FR 8028, March 26, 2018).                               The effects of this action are expected to            remember how bad the old days were,
                                                                                                     be minor and beneficial by improving                  prior to implementation of the IFQ
                                                Overall, this final rule provides IFQ
                                                                                                     the clarity of the regulations.                       program. In order to catch as much of
                                             holders and CDQ groups with an
                                             opportunity to alleviate the adverse                    Comments and Responses                                the TAC as possible, the industry did
                                             economic, social, and cultural impacts                                                                        not pay attention to the environmental
                                                                                                        NMFS received 4 comment letters on
                                             of extremely low levels of commercial                                                                         impact of its operations, worker safety,
                                                                                                     the proposed rule. One of the comment
                                             halibut catch limits on Western Alaskan                                                                       and excessive bycatch. NOAA is right to
                                                                                                     letters was outside the scope of this
                                             communities. This final rule could also                                                                       continue to refine this outstanding
                                                                                                     action. NMFS has summarized and
                                             provide distributional benefits to some                                                                       program. The proposed rule to allow
                                                                                                     responded to the six unique comments                  transfers of IFQ to CDQ groups is well-
                                             processing plants, secondary service                    in the remaining three comment letters.
                                             providers, and communities as a whole.                                                                        written and prevents abuse of the
                                                                                                        Comment 1: There should not be a                   program by ‘‘mailbox-fishermen’’ and
                                             This final rule could benefit halibut QS                transfer of halibut IFQ during years of
                                             holders in Areas 4B, 4C, and 4D by                                                                            favors the coastal communities.
                                                                                                     low abundance unless they give back to                   Response: NMFS acknowledges this
                                             permitting them to transfer their Area                  others during years of high abundance.
                                             4B, 4C, and 4D halibut IFQ in years of                                                                        comment.
                                                                                                     They harvest so much that they caused                    Comment 4: If the halibut stock is low
                                             extremely low commercial catch limits.                  the low abundance.
                                             This final rule could also result in some                                                                     enough to trigger this flexibility,
                                                                                                        Response: NMFS disagrees. Based on                 expanding flexibility will further
                                             consolidation of the number of IFQ                      the best available scientific information             aggravate the problem of an overfished
                                             trips, and could affect the decisions of                from the IPHC, halibut is not considered              stock. When the stock is low, then
                                             QS holders to transfer their QS if they                 to be subject to overfishing as that term             everyone should suffer, both CDQ
                                             have the ability to transfer their IFQ to               is defined by the IPHC (Section 3.6.1 of              fishermen and IFQ fishermen, in order
                                             CDQ groups. The preamble of the                         Analysis). As described in Section 3.6.1              for the stock to regenerate.
                                             proposed rule (83 FR 8028, March 26,                    of the Analysis, annual catch limits are                 Response: NMFS disagrees. Annual
                                             2018) and Section 3.8 of the Analysis                   set in a precautionary manner to achieve              halibut commercial catch limits are set
                                             have additional details on the                          optimum yield on a continuing basis. As               with precaution and adjusted
                                             anticipated effects of Action 1.                        described in the proposed rule and                    downward in times of low abundance to
                                             Action 2                                                Section 3.6.1 of the Analysis, this final             avoid overfishing. The flexibility
                                                                                                     rule does not increase the overall                    provided by this final rule will not
                                                This final rule removes an obsolete                  amount of halibut in Areas 4B or 4CDE                 create an overfished condition or
                                             reference in § 679.42(a)(2)(i). Currently,              that is authorized to be harvested on an              contribute to overfishing. This final rule
                                             this regulation provides an exception to                annual basis. The final rule establishes              does not modify the methods for
                                             a prohibition at § 679.42(a)(2). However,               a voluntary program that provides                     apportioning halibut catch limits
                                             the exception refers to § 679.42(k),                    participants with an opportunity to                   between the CDQ and IFQ Programs. As
                                             which was modified in 2008 by the final                 utilize available catch to mutual benefit             halibut catch limits increase or decrease
                                             rule to revise regulations governing the                during times of low abundance and does                based on halibut abundance,
                                             use of commercial halibut QS and the                    not require QS holders to transfer IFQ                participants in the CDQ and IFQ
                                             processing of non-IFQ species when                      to CDQ groups during times of low                     Programs are not affected any differently
                                             processed halibut is on board a vessel                  abundance or require CDQ groups to                    under this final rule than under current
                                             (73 FR 8822; February 15, 2008). That                   transfer IFQ back to QS holders during                regulations. If the catch limit threshold
                                             final rule removed paragraph (k) and re-                times of high abundance.                              is low enough to trigger the ability for
                                             designated § 679.42(l) as paragraph (k).                   Comment 2: This rule allows leasing                QS holders to transfer their IFQ to CDQ
                                             NMFS inadvertently neglected to                         quota when the fish populations are low               groups, then QS holders and CDQ
                                             remove the cross-reference to paragraph                 and it would increase the chance of                   groups benefit from a voluntary market
                                             (k) in § 679.42(a)(2)(i). Therefore, with               overfishing the halibut stock.                        transaction. Disapproving this rule
                                             this final rule, NMFS removes the cross-                   Response: Annual halibut commercial                would not increase halibut abundance.
                                             reference to paragraph (k) to clarify that              catch limits are adjusted downward                    Section 3.8 of the Analysis provides
                                             persons possessing unused Category B,                   with decreasing abundance to protect                  additional detail on the anticipated
                                             C, or D halibut QS may be on board a                    the stock and prevent overfishing. This               effects of this final rule.
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                                             catcher/processor vessel when that                      final rule does not change the process of                Comment 5: NMFS should consider
                                             vessel is harvesting and processing                     allocating halibut among Areas or the                 setting lease terms for this exception
                                             Category A halibut or sablefish IFQ, or                 process of establishing halibut                       because if the cost of the lease is too
                                             is harvesting and processing non-IFQ                    commercial catch limits, nor will this                high, the benefits of the proposed rule
                                             species. The effects of this action are                 final rule change specific management                 would be blunted.
                                             expected to be minor and beneficial by                  measures that govern the harvest of                      Response: The Council and NMFS did
                                             improving the clarity of the regulations.               halibut in Areas 4B and 4CDE, such as                 not want to be involved in setting lease


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                                                              Federal Register / Vol. 83, No. 202 / Thursday, October 18, 2018 / Rules and Regulations                                        52765

                                             terms, similar to other transfer                        Changes From the Proposed Rule                        was not required, and none was
                                             exceptions in the IFQ Program. The IFQ                     NMFS makes two minor changes to                    prepared, pursuant to 5 U.S.C. 605.
                                             Program relies on market-based values                   the proposed regulatory text in this final            Collection-of-Information Requirements
                                             and NMFS anticipates that IFQ and                       rule. First, § 679.5(l)(10) is changed to
                                             CDQ participants would come to a                        include the words ‘‘and the Council.’’                  This final rule contains collection-of-
                                             private agreement in this voluntary                     New regulations at § 679.5(w) require a               information requirements subject to the
                                             exception. In Section 3.8.7 of the                      CDQ group to submit a report to both                  PRA, which have been approved by
                                             Analysis, NMFS describes the impact                     NMFS and the Council. Adding this                     OMB under OMB control number 0648–
                                             that the transfer of IFQ (i.e., leasing)                language to § 679.5(l)(10) creates                    0764. After this final rule’s effective
                                             could have on QS markets. As described                  consistency between these sections.                   date, OMB Control Number 0648–0764
                                             in the preamble of this final rule, there               Second, NMFS changes ‘‘halibut IFQ’’ to               will be merged with OMB Control
                                             are several limitations on the transfer of              ‘‘IFQ halibut’’ in § 679.42(h)(1) and                 Numbers 0648–0272 and 0648–0711.
                                             IFQ. These limitations are intended, in                 ‘‘sablefish IFQ’’ to ‘‘IFQ sablefish’’ in               Public reporting burden is estimated
                                             part, to maintain current fishing                       § 679.42(h)(2). The proposed changes                  to average per response: 2 hours for
                                             business practices and to limit potential               were intended to refer to the type of fish            Application for Temporary Transfer of
                                             adverse impacts on a range of                           (IFQ halibut and IFQ sablefish defined                Halibut and Sablefish IFQ, 40 hours for
                                             participants in the CDQ and IFQ                         at § 679.2) that will count towards the               the annual report, and 1 minute for
                                             Programs. This final rule does not                      vessel limits prescribed by these                     electronic submission of cost recovery
                                             establish additional requirements on the                paragraphs rather than the type of                    fees or 30 minutes for non-electronic fee
                                                                                                     fishing rights (halibut IFQ and sablefish             submission. These estimates include the
                                             specific agreements between QS holders
                                                                                                     IFQ).                                                 time for reviewing instructions,
                                             and CDQ groups when transferring IFQ
                                                                                                                                                           searching existing data sources,
                                             because the limitations established by                  Classification                                        gathering and maintaining the data
                                             this final rule sufficiently constrain the
                                                                                                        The NMFS Alaska Region                             needed, and completing and reviewing
                                             amount of IFQ, the vessel category of
                                                                                                     Administrator determined that this final              the collection of information.
                                             IFQ, and the specific halibut catch
                                                                                                     rule is necessary for the conservation                  Send comments regarding these
                                             limits conditions in Areas 4B and 4CDE
                                                                                                     and management of the IFQ halibut                     burden estimates or any other aspect of
                                             IFQ that may be transferred.
                                                                                                     fishery off Alaska and that it is                     this data collection, including
                                                Comment 6: NMFS should terminate                     consistent with the Magnuson-Stevens                  suggestions for reducing the burden, to
                                             the policy to allow unused quota to                     Fishery Conservation and Management                   NMFS (see ADDRESSES), and by email to
                                             carry over to the next season and                       Act, the Halibut Act, and other                       OIRA_Submission@omb.eop.gov, or fax
                                             instead allow unused quota to carry                     applicable laws.                                      to (202) 395–5806.
                                             over to the next season only for the                       Regulations governing the U.S.                       Notwithstanding any other provision
                                             purposes of leasing it to CDQ groups.                   fisheries for Pacific halibut are                     of the law, no person is required to
                                                Response: This final rule does not                   developed by the IPHC, the Pacific                    respond to, nor shall any person be
                                             modify existing regulations that allow a                Fishery Management Council, the                       subject to penalty for failure to comply
                                             QS holder’s annual IFQ allocation to be                 Council, and the Secretary of                         with, a collection of information subject
                                             adjusted to cover under- or over-harvest                Commerce. Section 5 of the Northern                   to the requirement of the PRA, unless
                                             from the previous year (see regulations                 Pacific Halibut Act of 1982 (Halibut Act,             that collection of information displays a
                                             at § 679.40(d) and (e)). The Council                    16 U.S.C. 773c) allows the Regional                   currently valid OMB control number.
                                             focused on alternatives that would                      Council having authority for a particular             All currently approved NOAA
                                             allow transfer of IFQ to CDQ groups                     geographical area to develop regulations              collections of information may be
                                             within the year of low halibut                          governing the allocation and catch of                 viewed at: http://www.cio.noaa.gov/
                                             commercial catch limits, rather than                    halibut in U.S. Convention waters as                  services_programs/prasubs.html.
                                             adjusting over/under harvest rules that                 long as those regulations are in addition             List of Subjects
                                             would apply to the following year when                  to, and not in conflict with, IPHC
                                             the halibut commercial catch limits may                 regulations. This final rule is consistent            15 CFR Part 902
                                             not be under the thresholds, as a more                  with the Council’s authority to allocate                Reporting and recordkeeping
                                             direct method of addressing the issue.                  halibut catches among fishery                         requirements.
                                                                                                     participants in the waters in and off
                                             OMB Revisions to PRA References in 15                   Alaska.                                               50 CFR Part 300
                                             CFR 902.1(b)                                               This final rule has been determined to               Administrative practice and
                                                                                                     be not significant for the purposes of                procedure, Fisheries, Fishing, Reporting
                                               Section 3507(c)(B)(i) of the Paperwork                Executive Order 12866.
                                             Reduction Act (PRA) requires that                                                                             and recordkeeping requirements.
                                                                                                        The Chief Counsel for Regulation of
                                             agencies inventory and display a current                the Department of Commerce certified                  50 CFR Part 679
                                             control number assigned by the Director                 to the Chief Counsel for Advocacy of the                Alaska, Fisheries, Reporting and
                                             of the Office of Management and Budget                  Small Business Administration during                  recordkeeping requirements.
                                             (OMB), for each agency’s information                    the proposed rule stage that this action
                                             collection. Section 902.1(b) identifies                                                                         Dated: October 12, 2018.
                                                                                                     would not have a significant economic
                                             the location of NOAA regulations for                    impact on a substantial number of small               Samuel D. Rauch III,
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                                             which OMB approval numbers have                         entities. The factual basis for the                   Deputy Assistant Administrator for
                                             been issued. Because this final rule adds               certification was published in the                    Regulatory Programs, National Marine
                                             a new collection-of-information for                                                                           Fisheries Service.
                                                                                                     proposed rule and is not repeated here.
                                             recordkeeping and reporting                             No comments were received regarding                     For the reasons set out in the
                                             requirements, 15 CFR 902.1(b) is revised                this certification or on the economic                 preamble, NMFS amends 15 CFR part
                                             to reference correctly the section                      impacts of the rule more generally. As                902 and 50 CFR parts 300 and 679 as
                                             resulting from this final rule.                         a result, a regulatory flexibility analysis           follows:


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                                             52766                Federal Register / Vol. 83, No. 202 / Thursday, October 18, 2018 / Rules and Regulations

                                             Title 15—Commerce and Foreign Trade                             PART 679—FISHERIES OF THE                             ■ c. Add paragraph (o).
                                                                                                             EXCLUSIVE ECONOMIC ZONE OFF                             The additions and revisions read as
                                             PART 902—NOAA INFORMATION                                       ALASKA                                                follows:
                                             COLLECTION REQUIREMENTS UNDER
                                             THE PAPERWORK REDUCTION ACT:                                    ■ 5. The authority citation for 50 CFR                § 679.41   Transfer of quota shares and IFQ.
                                             OMB CONTROL NUMBERS                                             part 679 continues to read as follows:                *       *      *    *     *
                                                                                                               Authority: 16 U.S.C. 773 et seq.; 1801 et              (c) * * *
                                             ■ 1. The authority citation for part 902                        seq.; 3631 et seq.; Pub. L. 108–447; Pub. L.             (13) If the person applying to receive
                                             continues to read as follows:                                   111–281.                                              halibut IFQ assigned to vessel categories
                                                 Authority: 44 U.S.C. 3501 et seq.                           ■ 6. In § 679.5, add paragraphs (l)(10)               B, C, or D in IFQ regulatory areas 4B,
                                                                                                             and (w) to read as follows:                           4C, or 4D is a CDQ group, the following
                                             ■  2. In § 902.1, in the table in paragraph                                                                           determinations are required:
                                                                                                             § 679.5    Recordkeeping and reporting.                  (i) The CDQ group applying to receive
                                             (b), under the entry ‘‘50 CFR’’, add an
                                             entry in alphanumeric order for                                 *       *    *      *    *                            halibut IFQ for an IFQ regulatory area
                                             ‘‘679.5(w)’’ to read as follows:                                   (l) * * *                                          receives an annual allocation of halibut
                                                                                                                (10) A report on annual IFQ                        CDQ for that IFQ regulatory area
                                             § 902.1 OMB control numbers assigned                            regulatory areas 4B, 4C, and 4D Halibut               pursuant to § 679.31(b)(1);
                                             pursuant to the Paperwork Reduction Act.                        IFQ transfer activities must be                          (ii) The QS holder applying to transfer
                                             *       *    *           *       *                              submitted to NMFS and the Council by                  halibut IFQ to a CDQ group has not
                                                                                                             a CDQ group as required at § 679.5(w).                transferred any halibut IFQ assigned to
                                                 (b) * * *
                                                                                                             *       *    *      *    *                            vessel categories B, C, or D for that IFQ
                                                                                                                (w) Report on Area 4 halibut IFQ                   regulatory area to a CDQ group during
                                               CFR part or sec-
                                              tion where the in-          Current OMB control No.            transfers to CDQ groups—(1)                           the last two consecutive fishing years;
                                             formation collection         (all numbers begin with            Applicability. A CDQ group that                          (iii) If the IFQ to be transferred to a
                                                requirement is                    0648–)                     receives IFQ regulatory area 4 halibut
                                                    located                                                                                                        CDQ group results from QS that was
                                                                                                             IFQ by transfer must submit a timely                  transferred to the QS holder after
                                                                                                             and complete report on the CDQ group’s                December 14, 2015, the QS holder
                                                                                                             annual halibut IFQ transfer activities for            applying to transfer halibut IFQ to a
                                                *             *           *            *            *
                                             50 CFR:
                                                                                                             each calendar year that it receives IFQ               CDQ group has held the underlying QS
                                                                                                             regulatory area 4 halibut IFQ by transfer.            for that IFQ for a minimum of 3 years
                                                  *         *             *            *         *           A CDQ group is not required to submit                 from the date NMFS approved the
                                                 679.5(w) ............                         –0272         a report for any calendar year in which               transfer;
                                                                                                             it did not receive any IFQ regulatory                    (iv) If the IFQ to be transferred to a
                                                  *           *           *            *            *        area 4 halibut IFQ by transfer.                       CDQ group is assigned to vessel
                                                                                                                (2) Time limits and submittal. A CDQ               categories B, C, or D in IFQ regulatory
                                             *        *      *        *       *                              group must submit a complete report by                area 4B, the QS holder applying to
                                                                                                             January 31 of the year following a                    transfer that halibut IFQ to a CDQ group
                                             Title 50—Wildlife and Fisheries                                 fishing year during which the CDQ                     holds fewer than 76,355 halibut QS
                                                                                                             group receives IFQ regulatory area 4B,                units in IFQ regulatory area 4B; and
                                             PART 300—INTERNATIONAL                                          4C, or 4D halibut IFQ by transfer. The
                                             FISHERIES REGULATIONS                                                                                                    (v) The CDQ group applying to
                                                                                                             complete report must be submitted to
                                                                                                                                                                   receive halibut IFQ has submitted a
                                                                                                             the North Pacific Fishery Management
                                                                                                                                                                   complete report if required to do so by
                                             ■ 3. The authority for 50 CFR part 300,                         Council, 605 West 4th Ave., Suite 306,
                                                                                                                                                                   § 679.5(w).
                                             subpart E, continues to read as follows:                        Anchorage, AK 99501–2252, and to
                                                                                                                                                                      (d) * * *
                                                 Authority: 16 U.S.C. 773–773k.                              NMFS-Alaska Regional Administrator,
                                                                                                                                                                      (1) Application for Eligibility. All
                                                                                                             P.O. Box 21668, Juneau, AK, 99802–
                                                                                                                                                                   persons, except as provided in
                                             ■ 4. In § 300.61, revise the definition of                      1668.
                                                                                                                (3) Complete report. A complete                    paragraphs (d)(1)(i) and (d)(1)(ii) of this
                                             ‘‘Annual commercial catch limit’’ to
                                                                                                             report contains all report requirements               section, applying to receive QS or IFQ
                                             read as follows:
                                                                                                             described in paragraphs (w)(4)(i)                     must submit an Application for
                                             § 300.61      Definitions.                                      through (w)(4)(iii) of this section.                  Eligibility to Receive QS/IFQ
                                             *      *   *    *     *                                            (4) Report requirements. A CDQ group               (Application for Eligibility) containing
                                                                                                             must report the following information:                accurate information to the Regional
                                                Annual commercial catch limit, for                                                                                 Administrator. The Regional
                                                                                                                (i) The annual amount, IFQ regulatory
                                             purposes of commercial fishing in:                                                                                    Administrator will not approve a
                                                                                                             area, and vessel category of IFQ
                                                (1) Commission regulatory areas 2C                           regulatory area 4B, 4C, and 4D halibut                transfer of IFQ or QS to a person until
                                             and 3A, means the annual commercial                             IFQ transferred to the CDQ group;                     the Application for Eligibility for that
                                             allocation minus an area-specific                                  (ii) The criteria used to select IFQ               person is approved by the Regional
                                             estimate of commercial halibut wastage.                         holders to transfer IFQ regulatory area               Administrator. The Regional
                                                (2) Commission regulatory areas 3B                           4B, 4C, and 4D halibut IFQ to the CDQ                 Administrator shall provide an
                                             and 4A, means the annual total                                  group; and                                            Application for Eligibility form to any
                                             allowable halibut removals by persons                              (iii) The criteria used to determine the           person on request.
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                                             fishing IFQ.                                                    person(s) eligible to harvest IFQ                        (i) An Application for Eligibility is not
                                                                                                             regulatory area 4B, 4C, and 4D halibut                required for a CQE if a complete
                                                (3) Commission regulatory areas 4B,                          IFQ received by transfer.                             application to become a CQE, as
                                             4C, 4D, and 4E, means the annual total                                                                                described in paragraph (l)(3) of this
                                                                                                             ■ 7. In § 679.41,
                                             allowable halibut removals by persons                           ■ a. Add paragraph (c)(13);                           section, has been approved by the
                                             fishing IFQ and CDQ.                                            ■ b. Revise paragraphs (d)(1), (g)(1), and            Regional Administrator on behalf of an
                                             *      *   *    *     *                                         (h)(2); and                                           eligible community.


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                                                              Federal Register / Vol. 83, No. 202 / Thursday, October 18, 2018 / Rules and Regulations                                                 52767

                                                (ii) An Application for Eligibility is               § 679.42    Limitations on use of QS and IFQ.         additional flexibility to specify in its
                                             not required for a CDQ group.                             (a) * * *                                           notice requesting large position reports
                                             *       *   *     *     *                                 (1) The QS or IFQ specified for one                 where and how reports are to be filed.
                                                (g) * * *                                            IFQ regulatory area must not be used in               Accordingly, Treasury will provide
                                                (1) Except as provided in paragraph                  a different IFQ regulatory area, except               notice by issuing a public
                                             (f), paragraph (g)(2), paragraph (l),                   for the following:                                    announcement and subsequently
                                             paragraph (n) or paragraph (o) of this                    (i) All or part of the QS and IFQ                   publishing the notice in the Federal
                                             section, only persons who are IFQ crew                  specified for regulatory area 4C may be               Register. Treasury believes these
                                             members, or who were initially issued                   harvested in either Area 4C or Area 4D.               amendments may also minimize the
                                             QS assigned to vessel categories B, C, or                 (ii) All or part of the halibut CDQ                 costs and burden on reporting entities.
                                             D, and meet the eligibility requirements                specified for regulatory area 4D may be               DATES: The amendments are effective
                                             in this section, may receive by transfer                harvested in either Area 4D or Area 4E.               November 17, 2018.
                                             QS assigned to vessel categories B, C, or                 (iii) If a CDQ group is authorized to               ADDRESSES: This final rule is available at
                                             D, or the IFQ resulting from it.                        receive a transfer of halibut IFQ                     http://www.treasurydirect.gov and
                                             *       *   *     *     *                               assigned to vessel categories B, C, or D              http://www.regulations.gov.
                                                (h) * * *                                            in IFQ regulatory area 4D as specified in             FOR FURTHER INFORMATION CONTACT: Lori
                                                (2) IFQ resulting from categories B, C,              § 679.41(o) of this part, all or part of the          Santamorena, Kurt Eidemiller, Kevin
                                             or D QS may not be transferred                          halibut IFQ specified for regulatory area             Hawkins, or John Garrison, Department
                                             separately from its originating QS,                     4D that is held by or transferred to a                of the Treasury, Bureau of the Fiscal
                                             except as provided in paragraph (d),                    CDQ group may be harvested in either                  Service, Government Securities
                                             paragraph (f), paragraph (k), paragraph                 Area 4D or Area 4E.                                   Regulations Staff, (202) 504–3632 or
                                             (l), paragraph (m), or paragraph (o) of                   (2) * * *                                           email us at govsecreg@
                                             this section.                                           *      *      *    *     *                            fiscal.treasury.gov.
                                             *       *   *     *     *                                 (iv) Halibut IFQ assigned to vessel
                                                                                                                                                           SUPPLEMENTARY INFORMATION:
                                                (o) Transfer of IFQ to CDQ groups. (1)               category B, C, or D held by a CDQ group
                                                                                                     may not be used on a vessel over 51 feet              I. Background
                                             A QS holder who holds fewer than
                                             76,355 units of halibut QS in IFQ                       LOA, irrespective of the vessel category
                                                                                                                                                           A. Treasury’s Large Position Reporting
                                             regulatory area 4B may transfer halibut                 assigned to the IFQ.
                                                                                                                                                           Rules
                                             IFQ assigned to vessel categories B, C,                 *      *      *    *     *
                                                                                                       (h) * * *                                             The LPR Rules 1 are issued under the
                                             or D in IFQ regulatory area 4B to a CDQ                                                                       Government Securities Act (GSA),2 as
                                             group that receives an allocation of IFQ                  (1) Halibut. No vessel may be used,
                                                                                                     during any fishing year, to harvest more              amended, for the purposes of
                                             regulatory area 4B halibut CDQ if the                                                                         monitoring the impact of large positions
                                             annual commercial halibut catch limit,                  IFQ halibut than one-half percent of the
                                                                                                     combined total catch limits of halibut                in Treasury securities in the Treasury
                                             as defined in § 300.61 of this title, for                                                                     securities market and otherwise
                                             Area 4B is less than 1 million pounds                   for IFQ regulatory areas 2C, 3A, 3B, 4A,
                                                                                                     4B, 4C, 4D, and 4E, except that:                      assisting the Securities and Exchange
                                             in that calendar year.                                                                                        Commission (SEC) in enforcing the
                                                (2) A QS holder in IFQ regulatory                    *      *      *    *     *                            GSA.3 The LPR Rules provide an on-
                                             areas 4C or 4D may transfer halibut IFQ                    (2) Sablefish. No vessel may be used,              demand reporting system 4 that requires
                                             assigned to vessel categories B, C, or D                during any fishing year, to harvest more              reports to be filed by entities that
                                             in IFQ regulatory areas 4C or 4D to a                   IFQ sablefish than one percent of the                 control 10 percent or more in a
                                             CDQ group that receives an allocation of                combined fixed gear TAC of sablefish                  particular Treasury security (or
                                             halibut CDQ in that IFQ regulatory area                 for the GOA and BSAI IFQ regulatory                   securities) as of a particular date. The
                                             if the annual commercial halibut catch                  areas, except that:                                   reports provide information on large
                                             limit, as defined in § 300.61 of this title,            *      *      *    *     *                            positions in Treasury securities held by
                                             for Area 4CDE is less than 1.5 million                  [FR Doc. 2018–22687 Filed 10–17–18; 8:45 am]          market participants and additional
                                             pounds in that calendar year.                           BILLING CODE 3510–22–P                                insight into the supply and demand
                                                (3) A QS holder must meet the                                                                              dynamics in certain Treasury
                                             requirements in paragraph (c)(13) of this                                                                     securities.5 This information allows
                                             section to transfer halibut IFQ assigned                DEPARTMENT OF THE TREASURY
                                             to vessel categories B, C, or D in IFQ                                                                          1 78  FR 73414 December 10, 2014.
                                             regulatory areas 4B, 4C, or 4D to a CDQ                 17 CFR Part 420                                         2 Public  Law 103–202, 107 Stat. 2344 (1993) [15
                                             group.                                                                                                        U.S.C. 78o–5(f)].
                                                (4) A CDQ group that receives halibut                Government Securities Act                                3 Treasury does not believe that large positions in

                                                                                                     Regulations: Large Position Reporting                 Treasury securities are inherently problematic and
                                             IFQ by transfer may not transfer that                                                                         there is no presumption of manipulative or illegal
                                             halibut IFQ to any other person.                        Rules                                                 intent merely because a reporting entity’s position
                                             ■ 8. In § 679.42,                                                                                             is large enough to be subject to Treasury’s LPR
                                                                                                     AGENCY:  Office of the Assistant                      Rules.
                                             ■ a. Revise paragraph (a)(1);                           Secretary for Financial Markets,                         4 An ‘‘on-demand’’ reporting system, rather than
                                             ■ b. Remove paragraph (a)(2)(i);                        Treasury.                                             a regular, ongoing system of reporting, provides
                                             ■ c. Redesignate paragraphs (a)(2)(ii)                  ACTION: Final rule.
                                                                                                                                                           Treasury with the information necessary to
                                             through (iv) as paragraphs (a)(2)(i)                                                                          understand supply and demand dynamics in the
khammond on DSK30JT082PROD with RULES




                                                                                                                                                           Treasury securities market, while minimizing the
                                             through (iii);                                          SUMMARY:  The Department of the                       potential impact on the market’s efficiency and
                                             ■ d. Add new paragraph (a)(2)(iv); and                  Treasury (Treasury) is issuing a final                liquidity and the cost to taxpayers of funding the
                                             ■ e. Revise paragraphs (h)(1)                           rule to amend its Large Position                      federal debt. It also minimizes the cost and burden
                                             introductory text and (h)(2) introductory               Reporting rules (LPR Rules). These                    to those reporting entities affected by the LPR
                                                                                                                                                           Rules.
                                             text.                                                   technical amendments make no                             5 The GSA specifically provides that Treasury
                                                The revisions and additions read as                  substantive changes to the rules but are              shall not be compelled to disclose publicly any
                                             follows:                                                designed to provide Treasury with                                                                  Continued




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Document Created: 2018-10-18 03:05:30
Document Modified: 2018-10-18 03:05:30
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.
DatesThis rule is effective on November 19, 2018.
ContactStephanie Warpinski, (907) 586-7228.
FR Citation83 FR 52760 
RIN Number0648-BG94
CFR Citation15 CFR 902
50 CFR 300
50 CFR 679
CFR AssociatedReporting and Recordkeeping Requirements; Administrative Practice and Procedure; Fisheries; Fishing and Alaska

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