83 FR 8028 - 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 37 (February 23, 2018)

Page Range		8028-8037
FR Document		2018-03548

NMFS issues a proposed rule that would modify regulations governing the Halibut and Sablefish Individual Fishing Quota (IFQ) Program. This proposed rule includes three actions. The first action would allow Western Alaska Community Development Quota (CDQ) groups to lease (to receive by transfer) halibut individual fishing quota (IFQ) in IFQ regulatory areas 4B, 4C, and 4D in years of extremely low halibut commercial catch limits. This proposed 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 would remove an obsolete reference in the IFQ Program regulations. The third action would clarify IFQ vessel use cap regulations. This proposed rule is intended to promote the goals and objectives of the Northern Pacific Halibut Act of 1982, the Magnuson-Stevens Fishery Conservation and Management Act, the Fishery Management Plan for Groundfish of the Bering Sea and Aleutian Islands Management Area, and other applicable laws.

Federal Register, Volume 83 Issue 37 (Friday, February 23, 2018)

[Federal Register Volume 83, Number 37 (Friday, February 23, 2018)]
[Proposed Rules]
[Pages 8028-8037]
From the Federal Register Online [www.thefederalregister.org]
[FR Doc No: 2018-03548]

=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE

National Oceanic and Atmospheric Administration

50 CFR Parts 300 and 679

[Docket No. 170626590-8143-01]
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: Proposed rule; request for comments.

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

SUMMARY: NMFS issues a proposed rule that would modify regulations
governing the Halibut and Sablefish Individual Fishing Quota (IFQ)
Program. This proposed rule includes three actions. The first action
would allow Western Alaska Community Development Quota (CDQ) groups to
lease (to receive by transfer) halibut individual fishing quota (IFQ)
in IFQ regulatory areas 4B, 4C, and 4D in years of extremely low
halibut commercial catch limits. This proposed 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 would remove an obsolete reference in the
IFQ Program regulations. The third action would clarify IFQ vessel use
cap regulations. This proposed rule is intended to promote the goals
and objectives of the Northern Pacific Halibut Act of 1982, the
Magnuson-Stevens Fishery Conservation and Management Act, the Fishery
Management Plan for Groundfish of the Bering Sea and Aleutian Islands
Management Area, and other applicable laws.

DATES: Submit comments on or before March 26, 2018.

ADDRESSES: You may submit comments, identified by NOAA-NMFS-2017-0072,
by any of the following methods:
Electronic Submission: Submit all electronic public
comments via the Federal eRulemaking Portal. Go to www.regulations.gov/#!docketDetail;D=NOAA-NMFS-2017-0072, click the ``Comment Now!'' icon,
complete the required fields, and enter or attach your comments.
Mail: Submit written comments to Glenn Merrill, Assistant
Regional Administrator, Sustainable Fisheries Division, Alaska Region
NMFS, Attn: Ellen Sebastian. Mail comments to P.O. Box 21668, Juneau,
AK 99802-1668.
Instructions: Comments sent by any other method, to any other
address or individual, or received after the end of the comment period,
may not be considered by NMFS. All comments received are a part of the
public record and will generally be posted for public viewing on
www.regulations.gov without change. All personal identifying

[[Page 8029]]

information (e.g., name, address), confidential business information,
or otherwise sensitive information submitted voluntarily by the sender
will be publicly accessible. NMFS will accept anonymous comments (enter
``N/A'' in the required fields if you wish to remain anonymous).
Electronic copies of the Regulatory Impact Review (referred to as
the ``Analysis'') and the Categorical Exclusion prepared for this
proposed rule may be obtained 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
proposed rule may be submitted to NMFS at the above address; 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 Northern Pacific Halibut Act of 1982 (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 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 Individual Fishing Quota Program (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 the section 773 of the
Halibut Act. The IFQ Program for the sablefish fishery is implemented
by the Bering Sea and Aleutian Islands (BSAI) Fishery Management Plan
(FMP) and Federal regulations at 50 CFR part 679 under the authority of
section 303(b) of the Magnuson-Stevens Fishery Conservation and
Management Act (Magnuson-Stevens Act).

Background

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). The
Council and NMFS designed the IFQ Program to allocate harvest
privileges among participants in the commercial halibut and sablefish
fisheries to reduce fishing capacity that had led to an unsafe ``race
for fish'' as vessels raced to harvest their annual catch limits as
quickly as possible before the annual limit was reached. 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.
Under the IFQ Program, access to the fixed gear sablefish and
halibut fisheries is limited to those persons holding quota share (QS).
NMFS issued separate QS for sablefish and halibut to qualified
applicants based on their historical participation during a set of
qualifying years in the sablefish and halibut fisheries. 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. In addition to being specific to sablefish or halibut, 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). There are four vessel
categories of halibut QS: Category A shares are designated for catcher/
processors, vessels that process their catch at sea (i.e., freezer
longline vessels), and do not have a vessel length restriction;
Category B shares are designated to be fished on catcher vessels
greater than 60 feet length overall (LOA); Category C shares are
designated to be fished on catcher vessels greater than 35 feet but
less than or equal to 60 feet LOA; and Category D shares are designated
to be fished on 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. IFQ is expressed in pounds and is based on the amount
of QS held in relation to the total QS pool for each regulatory area
with an assigned catch limit.
In addition to ending the race for fish, other goals of the IFQ
Program are to prevent absentee ownership of QS and promote an owner-
operator fleet. To meet these goals, the IFQ Program includes
restrictions on the ability of QS holders to transfer their annual IFQ.
The Council and NMFS recognized that at the time the IFQ Program was
implemented, some QS holders had long-standing business arrangements
with hired masters who harvested IFQ on behalf of the QS holder.
Therefore, the IFQ Program authorizes the use of hired masters in
certain instances. Since the implementation of the IFQ Program, the
Council has recommended and NMFS has approved further regulatory
amendments to limit the ability of QS holders to designate a hired
master to discourage absentee ownership and move towards an owner-
operated program (see Section 3.8.3.1 of the Analysis).
The IFQ Program allows limited transfers of IFQ under specific
conditions, including temporary medical transfers, survivorship
transfer privileges, temporary military transfers, transfers through
the Community Quota Entity Program, and transfers to the guided angler
fish program. When these specific conditions are met, regulations allow
a QS holder to designate a hired master to land the resulting IFQ
derived from that holder's QS (see 50 CFR 679.41).
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 QS. However, NMFS does not generally use the term ``lease''
in its IFQ Program regulations governing the transfer of IFQ. For
consistency with the terminology used in the existing regulations and
for clarity, this proposed rule uses the term ``transfer of IFQ''.
As described above, the halibut fishery is managed in separate
geographic areas of harvest, as determined by the IPHC. Accordingly,
NMFS issues halibut IFQ consistent with the IPHC's regulatory areas.
NMFS's IFQ regulatory areas are described in Figure 15 to part 679.
This proposed rule uses the term ``Area'' to

[[Page 8030]]

refer to a specific IFQ regulatory area (e.g., Area 4B). The first
action in this proposed rule only 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 (see Section 1.3 of the
Analysis). The IPHC considers the halibut in Areas 4C, 4D, and 4E to be
a single stock unit for stock assessment and management purposes, and
often refers to them combined as Areas 4CDE.
The commercial catch limits for Areas 4B, 4C, and 4D 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 2007 (about 3.9 million pounds in 2001 to
about 1.1 million pounds in 2007). Although there was a slight
increasing trend between 2008 and 2011, the commercial catch limit for
IFQ trended downward again from 2012 to 2015. In 2015, the Area 4B
commercial catch limit for IFQ (about 0.9 million pounds) 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 purpose of the CDQ Program is: (1) To provide eligible
western Alaska villages with the opportunity to participate and invest
in fisheries in the Bering Sea and Aleutian Islands management area
(BSAI); (2) to support economic development in western Alaska; (3) to
alleviate poverty and provide economic and social benefits for
residents of western Alaska; and (4) to achieve sustainable and
diversified local economies in western Alaska (16 U.S.C.
1855(i)(1)(A)).
The CDQ Program consists of six different non-profit managing
organizations (CDQ groups) representing different geographical regions
in Alaska: Aleutian Pribilof Island Community Development Association
(APICDA), Bristol Bay Economic Development Corporation (BBEDC), Central
Bering Sea Fishermen's Association (CBSFA), Coastal Villages Region
Fund (CVRF), Norton Sound Economic Development Corporation (NSEDC), and
Yukon Delta Fisheries Development Association (YDFDA). 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. CDQ groups use their
allocations of halibut to provide opportunities for small vessel
fishing by residents of their member communities.
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). Allocations of halibut CDQ are correlated with
the geographic area in which a CDQ group's member communities are
located. For example, 30 percent of the halibut commercial catch limit
in Area 4B is allocated to the CDQ Program. The entire allocation to
the CDQ Program in Area 4B is provided to APICDA, which represents all
of the CDQ communities located within the geographic range of Area 4B.
Area 4C surrounds the Pribilof Islands, and the portion of the halibut
commercial catch limit allocated to the CDQ program is split between
CBSFA (which represents the CDQ community of St. Paul) and APICDA
(which represents the CDQ community of St. George). The CDQ allocation
in Area 4D is split among BBEDC, NSEDC, and YDFDA. The CDQ allocation
in Area 4E is split between BBEDC and CVRF. A CDQ group may transfer
its halibut CDQ to another CDQ group that has halibut CDQ allocation in
the same regulatory area (50 CFR 679.31(c)).
The Council recommended and NMFS approved amendments to the IFQ
Program to allow CDQ Program participants to harvest allocations of
Area 4D halibut CDQ in Area 4E. This provision allows residents in CDQ
communities along the Western Alaska coast to have more near-shore
opportunities to harvest their group's halibut CDQ (68 FR 9902, March
3, 2003). Additionally, the Council recommended and NMFS approved
amendments to the IFQ Program to allow for the harvest of Area 4C
halibut IFQ and CDQ in Area 4D in response to reports of localized
depletion, decreasing catch per unit effort, and resultant limitations
on the optimal utilization of Area 4C halibut IFQ and CDQ (70 FR 43328,
July 27, 2005). 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. Resource use is impacted by
factors such as the number of interested and qualified residents, the
location of the halibut resource relative to nearshore fishing grounds,
other fishing opportunities (such as salmon and crab), other employment
opportunities, and the availability of processing operations. Also, the
resident halibut CDQ fleet is 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. In general, 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 in 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. The halibut resource is economically
significant for small vessel fishing operations as well as culturally
and socially important for residents of Western Alaska CDQ communities.
Correspondingly, low halibut abundance and the resulting low commercial
catch limits in Areas 4B, 4C, and 4D have made it increasingly
difficult for IFQ holders to have an economically viable fishery.
Under current regulations, CDQ groups cannot receive by transfer
any IFQ derived from catcher vessel QS. Current regulations also
prohibit halibut QS holders from transferring their IFQ separate from
the underlying QS except in very narrow, specific situations, such as
temporary military transfers (see Section 3.7 of the Analysis for more
information). These restrictions limit the options for CDQ groups to
temporarily expand opportunities for halibut fishing by community
residents in times of low halibut abundance (see Section 3.7 of the
Analysis).
To address these problems, this proposed rule would create a
voluntary

[[Page 8031]]

option for an IFQ holder in Areas 4B, 4C and 4D to temporarily transfer
his or her halibut IFQ to a CDQ group in years of extremely low halibut
abundance. This proposed flexibility would allow CDQ groups to expand
the fishing opportunities for the small boat fleets operating out of
the CDQ group's communities and provide 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 Proposed Rule and the Anticipated Effects

This proposed rule includes three actions. The primary action,
Action 1, would create 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 would 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
proposed actions.

Action 1

This proposed rule would: (1) Define the halibut commercial catch
limits under which CDQ groups could receive IFQ by transfer; (2)
establish limits on the types and amounts of IFQ that can be
transferred; and (3) establish reporting requirements for CDQ groups
receiving IFQ by transfer. This proposed rule would not convert
transferred IFQ to CDQ. Allocations of halibut CDQ would not change
under this proposed rule.
Under this proposed rule, CDQ groups would be able to receive
transfers of halibut catcher vessel IFQ (Categories B, C, and D IFQ) in
Areas 4C and 4D when the IPHC approves a halibut commercial catch limit
that is less than 1.5 million pounds in Areas 4CDE. CDQ groups would be
able to receive transfers of halibut catcher vessel IFQ (Categories B,
C, and D IFQ) in Area 4B when the IPHC approves a halibut commercial
catch limit that is less than 1 million pounds in Area 4B. IFQ holders
would be able to transfer both blocked and unblocked IFQ to CDQ groups.
This proposed rule would 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. This
proposed rule would provide additional harvesting flexibility for
Category A halibut IFQ transferred to a CDQ group in years of extremely
low halibut abundance, as described in more detail below.
The Council recommended 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 Area 4B and Areas 4CDE, before selecting these thresholds. Section
3.8.5 of the Analysis shows that from 2008 to 2016, the halibut
commercial catch limit in Area 4B was never below the proposed
threshold of 1 million pounds. However, in Areas 4CDE, the halibut
commercial catch limit was below the proposed threshold of 1.5 million
pounds in 2 years, 2014 and 2015. Therefore, under halibut abundance
conditions over the last 8 years, had this proposed rule been in effect
it would have allowed IFQ transfers to CDQ groups to occur in only 2
years, and only in Areas 4CDE.
In selecting these thresholds, the Council sought 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. The Council also
indicated that the flexibility to transfer halibut IFQ in Areas 4B, 4C,
and 4D was to be available only during worst case scenarios for halibut
commercial catch limits in these Areas (Section 2.3 of the Analysis).
For Areas 4CDE, the Council determined and NMFS agrees that a halibut
commercial catch limit below 1.5 million pounds, as was experienced in
2014 and 2015, reflects a worst case scenario for Areas 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. The Council selected a lower threshold for Area 4B due
to concerns expressed by the public about potentially adverse
distributional impacts on the community of Adak with a threshold that
was higher than 1 million pounds.
This proposed rule would establish several limits on the catcher
vessel IFQ that can be transferred as well as some flexibility with
transferred catcher vessel and catcher/processor IFQ. This proposed
rule includes five limits: (1) A CDQ group would only be able to
receive catcher vessel IFQ by transfer for an Area in which it also
holds halibut CDQ; (2) no vessel greater than 51 feet in length overall
(LOA) could be used to harvest catcher vessel IFQ transferred to a CDQ
group; (3) catcher vessel IFQ resulting from QS acquired after December
14, 2015 could 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
would 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 less than 76,355 QS units specified for Area 4B
would be allowed to transfer their catcher vessel IFQ to CDQ groups.
The first limit would prevent 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 this provision so that
any catcher vessel IFQ transferred to a CDQ group would be available
for use in conjunction with halibut CDQ that is issued to a CDQ group.
The Council determined, and NMFS agrees, that coupling catcher vessel
IFQ received by transfer to areas in which a CDQ group hold halibut CDQ
would ensure that the benefits of the IFQ transfer manifest with the
intended recipients--the resident halibut fleet in the CDQ group's
communities adjacent to the Area. For example, if a CDQ group is issued
halibut CDQ in Areas 4B and 4C, that CDQ group could only receive
catcher vessel Area 4B and Area 4C IFQ by transfer. Additionally, under
this proposed rule at Sec. 679.42(a)(iii) and (iv), CDQ groups that
are eligible to receive a transfer of Area 4D catcher vessel IFQ would
be able to harvest that IFQ, and any Category A IFQ it holds, in Area
4E (Section 3.5.2 of the Analysis). The Council determined, and NMFS
agrees, that this additional flexibility would improve the
effectiveness of the proposed action by enabling transferred IFQ to be
fished closer to shore so that smaller vessels typically used by
residents in CDQ communities can more easily participate in halibut
fisheries. This proposed flexibility also would be consistent with
section 11(8) of the IPHC annual management measures, which allows Area
4D halibut CDQ to be harvested in Area 4E. However, the IPHC would need
to revise its annual management measures to extend this harvesting
flexibility to catcher vessel and catcher/processor IFQ held by a

[[Page 8032]]

CDQ group before NMFS can approve it (see section 3.8.6 of the
Analysis). The IPHC is scheduled to consider this revision to the
annual management measures at its January 2018 annual meeting. NMFS
will take into account the IPHC's decision when developing the final
rule for this action.
The second limit would prohibit the use of vessels greater than 51
feet LOA to harvest catcher vessel IFQ that is transferred to a CDQ
group. The Council recommended 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). Because this proposed rule is intended to
provide additional harvest opportunities to CDQ community residents,
the Council determined and NMFS agrees that allowing larger than 51
feel LOA to harvest transferred catcher vessel IFQ would be
inconsistent with this objective. Current regulations provide
sufficient flexibility to allow IFQ that could be transferred to a CDQ
group under this proposed rule to be fished on a vessel of any length
up to 51 feet LOA (see Section 2.4 of the Analysis).
This proposed rule would also clarify 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. The Council
determined and NMFS agrees that this provision would provide additional
harvest opportunities for CDQ residents. The 51-foot LOA restriction
would help ensure additional harvest opportunities would be provided on
the size class of vessels used by CDQ community residents (see Section
3.8.6 in the Analysis for additional detail). This proposed rule would
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 could not be transferred to a CDQ group until 3 years
after the QS was acquired. This provision would effectively create a
``cooling off'' period. For example, if a person acquired Area 4C
halibut QS on March 15, 2016, that holder would not be eligible to
transfer the IFQ from that QS to a CDQ group until March 14, 2019. The
Council determined and NMFS agrees that the proposed cooling off period
is necessary to reduce the incentive to QS holders to acquire QS with
the intention of transferring the resulting IFQ to CDQ groups rather
than fishing the IFQ. Section 3.8.7 of the Analysis notes that the
Council considered a range of cooling off periods from 3 to 5 years. In
selecting the proposed cooling off period, the Council determined and
NMFS agrees that a 3-year period would balance the objectives of
reducing the incentives for QS holders to acquire QS with the intention
of transferring it to CDQ groups with the need to provide an adequate
market for CDQ groups to receive IFQ by transfer. The Council also
recommended that QS acquired after December 14, 2015, be subject to the
cooling off period. The Council selected the December 14, 2015, date
because that is the date when the Council first added the option of a
cooling off period to the suite of alternatives and options under
consideration for the proposed action. NMFS agrees that this proposed
date is reasonable as it would deter speculative investment in
anticipation of this proposed rule, and selection of this proposed
date, versus the effective date of this action if approved, accelerates
the time when QS acquired after December 14, 2015, would be eligible
for transfer.
The fourth limit would prohibit an IFQ holder from transferring
catcher vessel halibut IFQ for a specific IFQ regulatory area to a CDQ
group for more than 2 consecutive years. This 2-year limit would apply
to calendar years and would not apply only to years in which the
commercial catch limit is below the threshold. Additionally, this limit
would apply 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 set below the proposed threshold that transfer
would count towards the 2-year limit. Transfers of IFQ for one Area
would not affect the ability to transfer IFQ for another Area. The
Council determined and NMFS agrees that limitations on how many
consecutive years an IFQ holder could transfer IFQ to a CDQ group would
limit the potential for a specific 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. Section 3.8.8 of
the Analysis explains that the Council considered a range of
limitations on the number of years that IFQ could be transferred (i.e.,
from 2 to 4 years), and that a less restrictive limitation of 2 years
may be appropriate given the relatively low likelihood that the
thresholds to allow leasing in Area 4B or Areas 4C and 4D will be met.
Under the fifth limit, only catcher vessel QS holders that hold
less than 76,355 QS units specified for Area 4B would be allowed to
transfer their catcher vessel IFQ to CDQ groups. NMFS would consider
all categories of Area 4B QS holdings regardless of blocked or
unblocked status. This amount of QS units yielded approximately 7,500
pounds of halibut IFQ in 2016. The Council recommended and NMFS
proposes this limitation to ensure 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. The Council recommended and NMFS is proposing this limitation
only for Area 4B to accommodate the specific nature of IFQ operations
in the remote Aleutian Island communities in Area 4B, and after
considering a range of different limits (from 2,000 to 7,500 pounds of
halibut IFQ, with the preferred option to convert 7,500 pounds to 2016
QS units) that are described in Section 3.8.9 of the Analysis.
The Council received public testimony indicating that Aleutian
Islands communities in Area 4B receive substantial benefits from
fishery participation by persons holding relatively large amounts of
halibut QS and IFQ in that area. The testifiers expressed concern that
allowing these QS holders to transfer IFQ to a CDQ group could
substantially reduce these benefits to the communities in years of
extremely low commercial catch limits. In addition, persons holding
less than 76,355 QS units would be allocated relatively small amounts
of IFQ that may not be economically feasible to harvest in years of
extremely low commercial halibut catch limits. The Council determined
and NMFS agrees that limiting eligibility to transfer IFQ to holders of
less than 76,355 QS units in Area 4B would allow the holders of these
relatively small amounts of QS to lease the resulting IFQ in years of
extremely low commercial halibut catch limits while maintaining the
benefits of the fishery to the Aleutian Island communities from
harvests of the larger holdings of IFQ.
This proposed rule also establishes a reporting requirement for CDQ
groups that receive IFQ by transfer. The proposed report would be
required only for those years in which CDQ groups received IFQ by
transfer. CDQ groups

[[Page 8033]]

that receive IFQ by transfer would 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.
In recommending this proposed rule, the Council stated its intent
for catcher vessel IFQ transferred to a CDQ group to be fished by
residents of that CDQ community but did not recommend that NMFS
establish this requirement in regulation. Section 2.3 of the Analysis
describes that CDQ groups have different methods of defining residents
in their communities and different techniques for determining who will
harvest their halibut CDQ. After considering this information, the
Council specified that it did not intend for NMFS to establish a
regulatory definition for CDQ community resident, nor did it intend for
NMFS to verify that CDQ community residents were receiving the benefits
of transferred IFQ under this proposed rule. The Council recommended
that NMFS implement the requirement for CDQ groups to report the
persons who harvest the IFQ received by transfer. This would allow the
Council 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.
The Council recommended and NMFS proposes a reporting requirement
to understand the criteria that a CDQ group uses to receive transfers
of IFQ and provide harvest opportunities. This information could be
used to evaluate the effectiveness of this proposed rule to provide
benefits to members of CDQ communities. This proposed rule would
require the report to be submitted to NMFS no later than January 31 of
the year after the IFQ was transferred to the CDQ group. NMFS proposes
this deadline to be consistent with other reports required under the
IFQ Program, and to ensure that NMFS has received the report prior to
the issuance of IFQ that 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 would be ineligible to receive transfers of
catcher vessel IFQ until the report is submitted.
Under this proposed rule, a CDQ group that wished to receive
halibut IFQ by transfer would make an arrangement with an IFQ holder to
transfer his or her IFQ. The CDQ group would need to complete an
Application for Temporary Transfer of Halibut and Sablefish IFQ and
submit the application to NMFS for approval. Once approved, NMFS would
issue the CDQ group an IFQ permit with the pounds of halibut IFQ that
would be available to be fished. After determining who would fish the
halibut IFQ, the CDQ group with the IFQ permit would then need to apply
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 and a vessel
operator harvesting both halibut CDQ and IFQ transferred to a CDQ group
would need 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 would be subject to the current IFQ vessel
use caps under Sec. 679.42(h)(1). If a vessel harvested both halibut
IFQ and CDQ, only the halibut IFQ would accrue towards and be subject
to the vessel use cap.
Halibut that is landed by a vessel operator harvesting CDQ and IFQ
would be debited off two separate catch limits. Therefore, for purposes
of catch accounting, participants would need 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
would be recorded on the fish ticket (Section 3.8.11.3 of the
Analysis). If this proposed rule is approved, NMFS would need to make
changes to 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 proposed rule, CDQ groups would be responsible for cost
recovery fees based on the 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 proposed rule would require regulatory changes
to the IFQ transfer and hired master use provisions and therefore
constitute changes in management of the IFQ Program. CDQ group
participants receiving IFQ transfers would be required to pay an IFQ
cost recovery fee as a portion of the ex-vessel value of their landed
halibut.
Section 7(2) of the IPHC annual management measures (82 FR 12730,
March 7, 2017) authorizes a vessel operator harvesting halibut CDQ in
Areas 4D or 4E to retain halibut that are smaller 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.
Therefore, if this proposed action is approved, vessel operators
harvesting both halibut CDQ and halibut IFQ transferred to a CDQ group
in Areas 4D or 4E would be authorized to retain halibut smaller than
the size limit established by the IPHC in length for personal use as
specified in section 7 of the IPHC annual management measures. The
personal use allotment would apply to all halibut IFQ transferred to a
CDQ group under this exemption. Section 7(3) of the IPHC annual
management measures requires a CDQ group to report on all retained
halibut for personal use that are less than legal size and harvested on
behalf of a CDQ group.

Proposed Regulations to Implement Action 1

This proposed rule would modify 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 proposed rule would modify Sec. 679.41 to allow transfer of
halibut IFQ in Areas 4B, 4C, and 4D in years of low halibut catch
limits in Areas 4B and 4CDE to CDQ groups along with the specific
conditions under which this transfer activity could occur.
Additionally, a reporting requirement would be added at Sec.
679.5(l)(10) to require a CDQ group to submit a report on the criteria
it used to select IFQ holders from whom IFQ transfers would be
received, the criteria it used to determine the persons who can harvest
transferred IFQ, and the amount and type of IFQ transferred.
This proposed rule also includes a provision which would be added
under Sec. 679.42 to allow Area 4D IFQ that is transferred to a CDQ
group to be harvested in Area 4E.
Finally, NMFS is proposing to add and reserve several paragraphs in
this proposed rule to account for another rulemaking that proposes to
modify the same sections of Part 679 that would be modified by this
proposed rule.

Anticipated Effects of Action 1

The effects of Action 1 would depend on first the halibut resource
falling

[[Page 8034]]

below the threshold of 1 million pounds in Area 4B and 1.5 million
pounds in Area 4CDE and then IFQ holders choosing to transfer their
halibut IFQ to a CDQ group. If, in the future these conditions are met,
then this proposed rule would be expected to provide benefits most
directly to CDQ community residents who have traditionally been
involved in the halibut CDQ fishery by allowing for continued
employment and income in years where commercial halibut catch limits
are at extremely low levels. This opportunity may have a particularly
meaningful impact on these residents, as there tends to be limited
regional economic diversity in these communities, resulting in few
substitute employment options for residents (Section 3.8.1 of the
Analysis). This proposed rule would provide 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.
The benefits that could be derived from this proposed rule are
different among CDQ groups and would likely even be distributional
within a group. Overall, this action would not necessarily be expected
to result in a financial gain for a CDQ group that chooses to receive
halibut IFQ by transfer. It is likely that some, or all, of the fee an
IFQ holder would incur to transfer his or her IFQ would be paid by the
CDQ group. This proposed rule could also provide distributional
benefits to some processing plants, secondary service providers, and
communities as a whole (see Section 3.8 of the Analysis).
Allowing CDQ groups the flexibility to harvest any IFQ received by
transfer for Area 4D in Area 4E would add to the existing flexibility
CDQ groups have to move their halibut CDQ between IFQ regulatory areas.
The Council determined and NMFS agrees that this potential for change
in locational fishing intensity from this proposed action would not be
a threat to overall stock conservation as long as the Area 4CDE total
catch limit is not exceeded, while noting that there is a possibility
of localized impacts on fishing opportunities if fishing effort
patterns were to change substantially.
Halibut QS holders in Areas 4B, 4C, and 4D may also benefit from
this proposed rule. These QS holders may feel constrained as their QS
is associated with diminishing pounds of IFQ under the relatively low
commercial halibut catch limits in recent years. In years of extremely
low halibut abundance, it may not be economically viable for some QS
holders to harvest their small amounts of IFQ, particularly in remote
areas covered by this proposed rule where operating costs are higher
relative to other IFQ regulatory areas. Depending on operating costs
and catch limits, QS holders that transfer their IFQ to CDQ groups may
be able to earn more revenue from transferring their IFQ than from
harvesting it themselves or hiring a master to harvest the IFQ (if the
QS holder is eligible). As the IFQ Program strictly limits leasing
(transfers), this proposed rule would be the only opportunity for many
QS holders to transfer their Area 4B, 4C, and 4D halibut IFQ (see
Section 3.8.1) in years of extremely low commercial catch limits.
This proposed rule may have adverse indirect effects on some
stakeholders of the halibut IFQ fishery (see Section 3.8.2 of the
Analysis). This action could prompt some amount of temporary IFQ
consolidation, impacting the number of trips taken or resulting in some
vessels not being used in the halibut fishery at all in a season. This
reduction in participation could result in reduced fishery revenues for
affected participants. Consolidation could also result in a
displacement of some captain and crew jobs for the duration of time
that the halibut catch limits are low enough to allow IFQ transfers. To
the extent that they are not the QS holder making the decision to
transfer their IFQ to CDQ groups, this proposed rule may also
disadvantage vessel owners that use their vessel to harvest halibut IFQ
if QS holders who historically fished their IFQ on that vessel choose
to lease the IFQ and the vessel owner has reduced revenues from the
fishery. Section 3.8.2 of the Analysis notes that it is uncertain how
much IFQ may be transferred, from whom, and how this would impact
current operations.
As discussed in Section 3.8.1 of the Analysis, transferred IFQ
received by a CDQ group and harvested by its community resident fleets
would be expected to follow landing patterns similar to the current
halibut CDQ operations. However, if the locations of port of origin and
landings changes with IFQ received by this transfer provision, there is
a potential some communities may not receive revenues from raw fish
tax, business landing tax, and other economic activity associated with
fishing, such as purchase of food and fuel. These are distributional
impacts; therefore, they could represent losses to some communities,
while communities with traditional halibut CDQ participation may
benefit due to the increased activity from halibut IFQ.
Additionally, this proposed rule may motivate some QS holders who
may otherwise consider selling, to hold onto their Areas 4B, 4C, or 4D
halibut QS. For those individuals seeking entry into the halibut QS
market, the lack of QS movement may not be a positive result. However,
to prevent speculative purchases of QS with the intent of using the
transfer provision allowed under this proposed rule, this proposed rule
includes a cooling off period that limits the transfer of IFQ until 3
years after the QS is acquired. Areas 4B, 4C, and 4D already tend to
have the lowest level of QS transactions of any regulatory area
(although, this may also be because a portion of the catch limit is
designated as CDQ, thus the QS pool is much smaller) and the QS prices,
similar to other regulatory areas, appear to be increasing (Section
3.8.4 of the Analysis).
Additionally, this proposed rule would support one of the other
goals of the IFQ Program, which is to increase the ability of the rural
coastal communities adjacent to the BSAI to share in the wealth
generated by the IFQ Program by providing community residents with the
opportunity to benefit from fishing for additional halibut IFQ in years
of extremely low commercial catch limits (see Section 3.8.3.1 of the
Analysis).

Action 2

This proposed rule would remove an obsolete reference in the
regulations at Sec. 679.42(a)(2)(i). Currently, this regulation
provides an exception in the wording. However, the paragraph (k)
referred to in Sec. 679.42(a)(2)(i) was modified 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 onboard a
vessel (73 FR 8822; February 15, 2008). That final rule removed
paragraph (k) and re-designated paragraph (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 proposed rule, NMFS
proposes removing 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.

[[Page 8035]]

Action 3

This proposed rule would clarify existing regulations pertaining to
the IFQ vessel limitations, also referred to as the vessel use caps.
NMFS proposes to add language to Sec. 679.42(h)(1) and (h)(2) to
clarify that the vessel use caps only apply to halibut and sablefish
IFQ and not to halibut and sablefish CDQ. This action would improve the
clarity of the regulations and help IFQ and CDQ participants understand
what 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.

Classification

Pursuant to section 304(b)(1)(A) of the Magnuson-Stevens Act, the
NMFS Assistant Administrator has determined that this proposed rule is
consistent with the BSAI FMP, other provisions of the Magnuson-Stevens
Act, and other applicable law, subject to further consideration after
public comment.
Regulations governing the U.S. fisheries for Pacific halibut are
developed by the International Pacific Halibut Commission (IPHC), the
Pacific Fishery Management Council, the North Pacific Fishery
Management Council (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 which are in addition to,
and not in conflict with, IPHC regulations. This proposed rule is
consistent with the Council's authority to allocate halibut catches
among fishery participants in the waters in and off Alaska. The Halibut
Act, at sections 773c(a) and (b), provides the Secretary of Commerce
with the general responsibility to carry out the Convention with the
authority to, in consultation with the Secretary of the department in
which the U.S. Coast Guard is operating, adopt such regulations as may
be necessary to carry out the purposes and objectives of the Convention
and the Halibut Act. This proposed rule is consistent with the Halibut
Act and other applicable laws.
This proposed rule has been determined to be not significant for
the purposes of Executive Order 12866.
The Chief Counsel for Regulation of the Department of Commerce
certified to the Chief Counsel for Advocacy of the Small Business
Administration that this proposed rule, if adopted, would not have a
significant economic impact on a substantial number of small entities.
This proposed rule would revise IFQ Program regulations to
authorize CDQ groups to receive halibut IFQ transfers in certain areas
when catch limits are below the established thresholds, subject to
specific limitations. The directly regulated entities (118 small
entities in 2015) are persons that hold Areas 4B, 4C, or 4D halibut QS,
CDQ groups, and harvesters, including CDQ community residents, who have
traditionally harvested halibut CDQ and may have an opportunity to
harvest halibut IFQ received by transfer. Almost all of the directly
regulated entities are considered small entities. As described in the
Analysis, the 118 directly regulated entities would only be impacted to
the extent that they choose to (and are able to) participate in
receiving halibut IFQ transfers as a result of the proposed regulatory
changes.
Direct impacts would be expected to be positive for both CDQ
community resident halibut fishery participants and QS holders that
choose to utilize the IFQ transfer provision because the opportunity
for this additional flexibility in years of low halibut abundance would
be voluntary for both user groups and would only be undertaken if it
would benefit the parties to the transfer. Direct impacts would be
expected to be positive for CDQ community resident harvesters who have
traditionally harvested halibut CDQ and may have an opportunity to
harvest additional transfers of halibut IFQ under this proposed rule
because it would provide an opportunity to continue to receive economic
benefits from fishery participation in times of low abundance. This
proposed rule therefore is not expected to have a significant economic
impact on a substantial number of small entities regulated by this
proposed rule.
As a result, an initial regulatory flexibility analysis is not
required and none has been prepared.

Collection-of-Information Requirements

This proposed rule contains collection-of-information requirements
subject to review and approval by the Office of Management and Budget
(OMB) under the Paperwork Reduction Act (PRA). NMFS has submitted these
requirements to OMB for approval under Control Number 0648-0272 and
Control Number 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 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 information.
Public comment is sought regarding whether these proposed
collections of information are necessary for the proper performance of
the functions of the agency, including whether the information shall
have practical utility; the accuracy of the burden estimate; ways to
enhance the quality, utility, and clarity of the information to be
collected; and ways to minimize the burden of the collections of
information, including through the use of automated collection
techniques or other forms of information technology. Send comments on
these or any other aspects of the collections of information 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

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: February 15, 2018.
Samuel D. Rauch, III,
Deputy Assistant Administrator for Regulatory Programs, National Marine
Fisheries Service.

For the reasons set out in the preamble, NMFS proposes to amend 50
CFR parts 300 and 679 as follows:

PART 300--INTERNATIONAL FISHERIES REGULATIONS

Subpart E--Pacific Halibut Fisheries

0
1. The authority for 50 CFR part 300, subpart E, continues to read as
follows:

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

0
2. In Sec. 300.61, revise the definition of ``Annual commercial catch
limit'' to read as follows:

[[Page 8036]]

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
3. 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
4. In Sec. 679.5:
0
a. Add and reserve paragraph (l)(9);
0
b. Add paragraph (l)(10);
0
c. Add and reserve paragraph (v); and
0
d. Add paragraph (w) to read as follows:

Sec. 679.5 Recordkeeping and reporting.

* * * * *
(l) * * *
(9) [Reserved]
(10) A report on annual IFQ regulatory areas 4B, 4C, and 4D Halibut
IFQ transfer activities must be submitted to NMFS by a CDQ group as
required at Sec. 679.5(w).
* * * * *
(v) [Reserved]
(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
5. In Sec. 679.41:
0
a. Add and reserve paragraph (c)(12);
0
b. Add paragraph (c)(13);
0
c. Revise paragraphs (d)(1), (g)(1), and (h)(2);
0
d. Add and reserve paragraph (n); and
0
e. Add paragraph (o) to read as follows:

Sec. 679.41 Transfer of quota shares and IFQ.

* * * * *
(c) * * *
(12) [Reserved]
(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.
(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.
* * * * *
(n) [Reserved]
(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

[[Page 8037]]

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
6. 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 paragraph (a)(2)(iv); and
0
e. Revise paragraphs (h)(1) introductory text and (h)(2) introductory
text to 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 halibut IFQ 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 sablefish IFQ than one percent of the combined fixed gear
TAC of sablefish for the GOA and BSAI IFQ regulatory areas, except
that:
* * * * *
[FR Doc. 2018-03548 Filed 2-22-18; 8:45 am]
BILLING CODE 3510-22-P

Federal Register / Vol. 83, No. 37 / Friday, February 23, 2018 / Proposed Rules 8033

that receive IFQ by transfer would be and submit the application to NMFS for as a portion of the ex-vessel value of
required to report the annual amount approval. Once approved, NMFS would their landed halibut.
and vessel category of Area 4 halibut issue the CDQ group an IFQ permit with Section 7(2) of the IPHC annual
IFQ transferred to the CDQ group, the the pounds of halibut IFQ that would be management measures (82 FR 12730,
criteria used to select IFQ holders to available to be fished. After determining March 7, 2017) authorizes a vessel
transfer Area 4 halibut IFQ to the CDQ who would fish the halibut IFQ, the operator harvesting halibut CDQ in
group, and the criteria used to CDQ group with the IFQ permit would Areas 4D or 4E to retain halibut that are
determine the person(s) eligible to fish then need to apply for a hired master smaller than the size limit established
Area 4 halibut IFQ received by transfer. permit for the vessel operator by the IPHC for personal use. Under the
In recommending this proposed rule, designated to fish the halibut IFQ. status quo, a vessel operator harvesting
the Council stated its intent for catcher Current regulations authorize a vessel halibut IFQ held by a CDQ group along
vessel IFQ transferred to a CDQ group operator to harvest halibut IFQ and CDQ with halibut CDQ may retain halibut
to be fished by residents of that CDQ on the same fishing trip and a vessel less than legal size for personal use.
community but did not recommend that operator harvesting both halibut CDQ Therefore, if this proposed action is
NMFS establish this requirement in and IFQ transferred to a CDQ group approved, vessel operators harvesting
regulation. Section 2.3 of the Analysis would need to carry (1) a halibut CDQ both halibut CDQ and halibut IFQ
describes that CDQ groups have permit, (2) a CDQ hired master permit, transferred to a CDQ group in Areas 4D
different methods of defining residents (3) a copy of the IFQ permit of the CDQ or 4E would be authorized to retain
in their communities and different group, and (4) an IFQ hired master halibut smaller than the size limit
techniques for determining who will permit. Additionally, any vessels fishing established by the IPHC in length for
harvest their halibut CDQ. After halibut IFQ transferred to a CDQ group personal use as specified in section 7 of
considering this information, the would be subject to the current IFQ the IPHC annual management measures.
Council specified that it did not intend vessel use caps under § 679.42(h)(1). If The personal use allotment would apply
for NMFS to establish a regulatory a vessel harvested both halibut IFQ and to all halibut IFQ transferred to a CDQ
definition for CDQ community resident, CDQ, only the halibut IFQ would accrue group under this exemption. Section
nor did it intend for NMFS to verify that towards and be subject to the vessel use 7(3) of the IPHC annual management
CDQ community residents were cap. measures requires a CDQ group to report
receiving the benefits of transferred IFQ Halibut that is landed by a vessel on all retained halibut for personal use
under this proposed rule. The Council operator harvesting CDQ and IFQ would that are less than legal size and
recommended that NMFS implement be debited off two separate catch limits. harvested on behalf of a CDQ group.
the requirement for CDQ groups to Therefore, for purposes of catch
report the persons who harvest the IFQ accounting, participants would need to Proposed Regulations to Implement
received by transfer. This would allow track what amount of halibut harvest is Action 1
the Council and the public to monitor associated with the group’s CDQ and This proposed rule would modify the
the use of IFQ transferred to CDQ what amount is associated with the IFQ definition of ‘‘annual commercial catch
groups and provide the Council with permit held by the CDQ group. This limit’’ at 50 CFR 300.61 to include
information to determine whether the distinction would be recorded on the definitions for Areas 3B and 4A, and for
use of transferred IFQ is consistent with fish ticket (Section 3.8.11.3 of the Areas 4B, 4C, 4D, and 4E.
its intent for the action. Analysis). If this proposed rule is This proposed rule would modify
The Council recommended and approved, NMFS would need to make § 679.41 to allow transfer of halibut IFQ
NMFS proposes a reporting requirement changes to the database that monitors in Areas 4B, 4C, and 4D in years of low
to understand the criteria that a CDQ transfers of IFQ between permit holders halibut catch limits in Areas 4B and
group uses to receive transfers of IFQ and that is used to issue hired master 4CDE to CDQ groups along with the
and provide harvest opportunities. This permits to allow for this new type of specific conditions under which this
information could be used to evaluate transfer (see Section 3.8.11.4 of the transfer activity could occur.
the effectiveness of this proposed rule to Analysis). Additionally, a reporting requirement
provide benefits to members of CDQ Under this proposed rule, CDQ groups would be added at § 679.5(l)(10) to
communities. This proposed rule would would be responsible for cost recovery require a CDQ group to submit a report
require the report to be submitted to fees based on the IFQ pounds held on on the criteria it used to select IFQ
NMFS no later than January 31 of the the IFQ permit. Section 304(d)(2)(A) of holders from whom IFQ transfers would
year after the IFQ was transferred to the the Magnuson-Stevens Act obligates be received, the criteria it used to
CDQ group. NMFS proposes this NMFS to recover the actual costs of determine the persons who can harvest
deadline to be consistent with other management, data collection, and transferred IFQ, and the amount and
reports required under the IFQ Program, enforcement (direct program cost) of the type of IFQ transferred.
and to ensure that NMFS has received IFQ fisheries. Therefore, NMFS This proposed rule also includes a
the report prior to the issuance of IFQ implemented a cost recovery fee provision which would be added under
that typically occurs in mid-February. If program for the IFQ fisheries in 2000 § 679.42 to allow Area 4D IFQ that is
a CDQ group is required to submit a (65 FR 14919, March 20, 2000). While transferred to a CDQ group to be
report and does not do so by the costs specific to the CDQ Program for harvested in Area 4E.
deadline, the CDQ group would be halibut are recoverable through a Finally, NMFS is proposing to add
ineligible to receive transfers of catcher separate cost recovery program (81 FR and reserve several paragraphs in this
daltland on DSKBBV9HB2PROD with PROPOSALS

vessel IFQ until the report is submitted. 150, January 5, 2016), this proposed rule proposed rule to account for another
Under this proposed rule, a CDQ would require regulatory changes to the rulemaking that proposes to modify the
group that wished to receive halibut IFQ IFQ transfer and hired master use same sections of Part 679 that would be
by transfer would make an arrangement provisions and therefore constitute modified by this proposed rule.
with an IFQ holder to transfer his or her changes in management of the IFQ
IFQ. The CDQ group would need to Program. CDQ group participants Anticipated Effects of Action 1
complete an Application for Temporary receiving IFQ transfers would be The effects of Action 1 would depend
Transfer of Halibut and Sablefish IFQ required to pay an IFQ cost recovery fee on first the halibut resource falling

VerDate Sep<11>2014 17:44 Feb 22, 2018 Jkt 244001 PO 00000 Frm 00021 Fmt 4702 Sfmt 4702 E:\FR\FM\23FEP1.SGM 23FEP1

Federal Register / Vol. 83, No. 37 / Friday, February 23, 2018 / Proposed Rules 8035

Action 3 This proposed rule would revise IFQ estimates include the time for reviewing
This proposed rule would clarify Program regulations to authorize CDQ instructions, searching existing data
existing regulations pertaining to the groups to receive halibut IFQ transfers sources, gathering and maintaining the
IFQ vessel limitations, also referred to in certain areas when catch limits are data needed, and completing and
as the vessel use caps. NMFS proposes below the established thresholds, reviewing the collection information.
to add language to § 679.42(h)(1) and subject to specific limitations. The Public comment is sought regarding
(h)(2) to clarify that the vessel use caps directly regulated entities (118 small whether these proposed collections of
entities in 2015) are persons that hold information are necessary for the proper
only apply to halibut and sablefish IFQ
Areas 4B, 4C, or 4D halibut QS, CDQ performance of the functions of the
and not to halibut and sablefish CDQ.
groups, and harvesters, including CDQ agency, including whether the
This action would improve the clarity of
community residents, who have information shall have practical utility;
the regulations and help IFQ and CDQ
traditionally harvested halibut CDQ and the accuracy of the burden estimate;
participants understand what
may have an opportunity to harvest ways to enhance the quality, utility, and
regulations to which they are subject.
halibut IFQ received by transfer. Almost clarity of the information to be
The effects of this action are expected to
all of the directly regulated entities are collected; and ways to minimize the
be minor and beneficial by improving
considered small entities. As described burden of the collections of information,
the clarity of the regulations.
in the Analysis, the 118 directly including through the use of automated
Classification regulated entities would only be collection techniques or other forms of
Pursuant to section 304(b)(1)(A) of the impacted to the extent that they choose information technology. Send comments
to (and are able to) participate in on these or any other aspects of the
Magnuson-Stevens Act, the NMFS
receiving halibut IFQ transfers as a collections of information to NMFS (see
Assistant Administrator has determined
result of the proposed regulatory ADDRESSES), and by email to OIRA_
that this proposed rule is consistent
changes. Submission@omb.eop.gov or fax to 202–
with the BSAI FMP, other provisions of Direct impacts would be expected to
the Magnuson-Stevens Act, and other 395–5806.
be positive for both CDQ community
applicable law, subject to further resident halibut fishery participants and Notwithstanding any other provision
consideration after public comment. QS holders that choose to utilize the of the law, no person is required to
Regulations governing the U.S. IFQ transfer provision because the respond to, nor shall any person be
fisheries for Pacific halibut are opportunity for this additional subject to penalty for failure to comply
developed by the International Pacific flexibility in years of low halibut with, a collection of information subject
Halibut Commission (IPHC), the Pacific abundance would be voluntary for both to the requirement of the PRA, unless
Fishery Management Council, the North user groups and would only be that collection of information displays a
Pacific Fishery Management Council undertaken if it would benefit the currently valid OMB control number.
(Council), and the Secretary of parties to the transfer. Direct impacts All currently approved NOAA
Commerce. Section 5 of the Northern would be expected to be positive for collections of information may be
Pacific Halibut Act of 1982 (Halibut Act, CDQ community resident harvesters viewed at: http://www.cio.noaa.gov/
16 U.S.C. 773c) allows the Regional who have traditionally harvested services_programs/prasubs.html.
Council having authority for a particular halibut CDQ and may have an
geographical area to develop regulations List of Subjects
opportunity to harvest additional
governing the allocation and catch of transfers of halibut IFQ under this 50 CFR Part 300
halibut in U.S. Convention waters proposed rule because it would provide
which are in addition to, and not in Administrative practice and
an opportunity to continue to receive procedure, Fisheries, Fishing, Reporting
conflict with, IPHC regulations. This economic benefits from fishery
proposed rule is consistent with the and recordkeeping requirements.
participation in times of low abundance.
Council’s authority to allocate halibut This proposed rule therefore is not 50 CFR Part 679
catches among fishery participants in expected to have a significant economic
the waters in and off Alaska. The Alaska, Fisheries, Reporting and
impact on a substantial number of small
Halibut Act, at sections 773c(a) and (b), recordkeeping requirements.
entities regulated by this proposed rule.
provides the Secretary of Commerce As a result, an initial regulatory Dated: February 15, 2018.
with the general responsibility to carry flexibility analysis is not required and Samuel D. Rauch, III,
out the Convention with the authority none has been prepared. Deputy Assistant Administrator for
to, in consultation with the Secretary of Regulatory Programs, National Marine
the department in which the U.S. Coast Collection-of-Information Requirements Fisheries Service.
Guard is operating, adopt such This proposed rule contains
regulations as may be necessary to carry collection-of-information requirements For the reasons set out in the
out the purposes and objectives of the subject to review and approval by the preamble, NMFS proposes to amend 50
Convention and the Halibut Act. This Office of Management and Budget CFR parts 300 and 679 as follows:
proposed rule is consistent with the (OMB) under the Paperwork Reduction PART 300—INTERNATIONAL
Halibut Act and other applicable laws. Act (PRA). NMFS has submitted these FISHERIES REGULATIONS
This proposed rule has been requirements to OMB for approval
determined to be not significant for the under Control Number 0648–0272 and Subpart E—Pacific Halibut Fisheries
daltland on DSKBBV9HB2PROD with PROPOSALS

purposes of Executive Order 12866. Control Number 0648–0711. Public
The Chief Counsel for Regulation of reporting burden is estimated to average ■ 1. The authority for 50 CFR part 300,
the Department of Commerce certified per response: 2 hours for Application subpart E, continues to read as follows:
to the Chief Counsel for Advocacy of the for Temporary Transfer of Halibut and
Authority: 16 U.S.C. 773–773k.
Small Business Administration that this Sablefish IFQ, 40 hours for the report,
proposed rule, if adopted, would not and 1 minute for electronic submission ■ 2. In § 300.61, revise the definition of
have a significant economic impact on of cost recovery fees or 30 minutes for ‘‘Annual commercial catch limit’’ to
a substantial number of small entities. non-electronic fee submission. These read as follows:

VerDate Sep<11>2014 17:44 Feb 22, 2018 Jkt 244001 PO 00000 Frm 00023 Fmt 4702 Sfmt 4702 E:\FR\FM\23FEP1.SGM 23FEP1

Document Created: 2018-02-23 01:32:32
Document Modified: 2018-02-23 01:32:32

Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Proposed Rules
Action		Proposed rule; request for comments.
Dates		Submit comments on or before March 26, 2018.
Contact		Stephanie Warpinski, 907-586-7228.
FR Citation		83 FR 8028
RIN Number		0648-BG94
CFR Citation		50 CFR 300 50 CFR 679
CFR Associated		Administrative Practice and Procedure; Fisheries; Fishing; Reporting and Recordkeeping Requirements and Alaska

83 FR 8028 - 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 COMMERCENational Oceanic and Atmospheric Administration

Federal Register Volume 83, Issue 37 (February 23, 2018)

DEPARTMENT OF COMMERCE
National Oceanic and Atmospheric Administration