Magnuson-Stevens Act Provisions; Fishing Capacity Reduction Program; Bering Sea/Aleutian Islands King and Tanner Crabs; Industry Fee System for Fishing Capacity Reduction Loan, 54652-54656 [05-18444]
Download as PDF
<![CDATA[
54652
Federal Register / Vol. 70, No. 179 / Friday, September 16, 2005 / Rules and Regulations
National Defense Authorization Act for
Fiscal Year 2005 (Pub. L. 108–375).
Section 814 requires DoD to provide
notice and supporting rationale to
Congress before awarding a multiyear
contract containing a cancellation
ceiling exceeding $100 million that is
not fully funded. Section 8008 places
additional restrictions on the award of
multiyear contracts for supplies using
fiscal year 2005 appropriated funds.
DoD received no comments on the
interim rule. Therefore, DoD has
adopted the interim rule as a final rule
without change.
This rule was not subject to Office of
Management and Budget review under
Executive Order 12866, dated
September 30, 1993.
B. Regulatory Flexibility Act
DoD certifies that this final rule will
not have a significant economic impact
on a substantial number of small entities
within the meaning of the Regulatory
Flexibility Act, 5 U.S.C. 601, et seq.,
because the rule addresses internal DoD
planning, budgeting, and reporting
requirements related to the award of
multiyear contracts.
C. Paperwork Reduction Act
The Paperwork Reduction Act does
not apply because the rule does not
impose any information collection
requirements that require the approval
of the Office of Management and Budget
under 44 U.S.C. 3501, et seq.
List of Subjects in 48 CFR Part 217
Government procurement.
Michele P. Peterson,
Editor, Defense Acquisition Regulations
System.
Interim Rule Adopted as Final Without
Change
Accordingly, the interim rule
amending 48 CFR Part 217, which was
published at 70 FR 24323 on May 9,
2005, is adopted as a final rule without
change.
I
[FR Doc. 05–18475 Filed 9–15–05; 8:45 am]
BILLING CODE 5001–08–P
DEPARTMENT OF COMMERCE
SUPPLEMENTARY INFORMATION:
National Oceanic and Atmospheric
Administration
I. Background
50 CFR Part 600
[Docket No. 050520139-5239-02; I.D.
030305A]
RIN 0648–AS46
Magnuson-Stevens Act Provisions;
Fishing Capacity Reduction Program;
Bering Sea/Aleutian Islands King and
Tanner Crabs; Industry Fee System for
Fishing Capacity Reduction Loan
National Marine Fisheries
Service (NMFS), National Oceanic and
Atmospheric Administration (NOAA),
Commerce.
ACTION: Final rule.
AGENCY:
SUMMARY: NMFS establishes regulations
to implement an industry fee system for
repaying a $97,399,357.11 Federal loan
financing a fishing capacity reduction
program in the Bering Sea/Aleutian
Islands King and Tanner Crab fishery.
This action implements the fee system.
DATES: This final rule is effective, and
crab program fee payment collection
will begin, on October 17, 2005.
ADDRESSES: Copies of the
Environmental Assessment, Regulatory
Impact Review, and Final Regulatory
Flexibility Analysis (EA/RIR/FRFA) for
the program may be obtained from
Michael L. Grable, Chief, Financial
Services Division, National Marine
Fisheries Service, 1315 East-West
Highway, Silver Spring, MD 20910–
3282.
Written comments involving the
burden-hour estimates or other aspects
of the collection-of-information
requirements contained in this final rule
should be submitted in writing to
Michael L. Grable, at the above address,
and to David Rostker, Office of
Management and Budget (OMB), by email at DavidlRostker@omb.eop.gov or
by fax to 202–395–7285.
FOR FURTHER INFORMATION CONTACT:
Michael L. Grable, (301) 713–2390.
DESCRIPTION
Sections 312(b)-(e) of the MagnusonStevens Fishery Conservation and
Management Act (16 U.S.C. 1861a(b)
through (e)) generally authorized fishing
capacity reduction programs. In
particular, section 312(d) authorized
industry fee systems for repaying the
reduction loans which finance
reduction program costs.
Subpart L of 50 CFR part 600 is the
framework rule generally implementing
sections 312(b)-(e).
Sections 1111 and 1112 of the
Merchant Marine Act, 1936 (46 App.
U.S.C. 1279f and 1279g) generally
authorized reduction loans.
The Consolidated Appropriations Act
of 2001 (Public Law 106–554) directed
the Secretary of Commerce to establish
a $100 million fishing capacity
reduction program in the Bering Sea/
Aleutian Islands king and Tanner crab
fishery. Congress amended the
authorizing Act twice (Public Law 107–
20 and Public Law 107–117), once to
change the crab reduction program’s
funding from a $50 million
appropriation and a $50 million loan to
a $100 million loan and once to clarify
provisions about crab fishery vessels.
NMFS published the crab reduction
program’s proposed implementation
rule on December 12, 2002 (67 FR
76329) and its final rule on December
12, 2003 (68 FR 69331). Anyone
interested in the program’s full
implementation details should refer to
these two documents. NMFS initially
proposed and adopted the program’s
implementation rule as section 600.1018
of Subpart L of 50 CFR part 600, but
NMFS has since, without other change,
re-designated the rule as section
600.1103 in a new subpart M of part
600.
To avoid confusion, the following
table identifies the various part 600
rules involved in or affecting the crab
reduction program:
SUBPART
Reduction Framework Rule
Program Implementation Rule’s Initial Designation
Program Implementation Rule’s Re-designation
Fee Rule
The crab reduction program’s
maximum cost was $100 million
consisting of a 30-year loan to be repaid
by fees on future crab landings. Each of
six of the crab fishery’s seven former
VerDate Aug<31>2005
15:20 Sep 15, 2005
Jkt 205001
L
L
M
M
crab area/species endorsement fisheries
were to pay fees at different rates. In
return for reduction payments equaling
their bid amounts, voluntary program
participants relinquished, among other
PO 00000
Frm 00044
Fmt 4700
Sfmt 4700
SECTION
600.1000–600.1017
600.1018
600.1103
600.1104
things, their crab fishing license
limitation program (LLP) licenses and
other permits, their catch histories
associated with those licenses and
E:\FR\FM\16SER1.SGM
16SER1
Federal Register / Vol. 70, No. 179 / Friday, September 16, 2005 / Rules and Regulations
permits, and their crab fishing vessels’
worldwide fishing privileges.
NMFS notice in the Federal Register
(69 FR 7421) issued the crab reduction
program’s invitation to bid on February
17, 2004. The bidding period opened on
March 5, 2004, and closed on April 23,
2004. NMFS scored each bid’s amount
against the bidder’s past ex-vessel crab
revenues and, in a reverse auction,
accepted the bids whose amounts were
the lowest percentages of the revenues.
Forty-two non-interim crab LLP
license holders submitted bids totaling
$192,600,916. NMFS accepted 28 bids
totaling $99,878,316. The next lowest
scoring bid would have exceeded the
program’s maximum cost.
NMFS next held a referendum about
the fees. The reduction contracts would
have become void unless a 2⁄3 majority
of votes cast in the referendum
approved the fees. Each crab LLP
license holder received one vote. NMFS
mailed ballots to qualifying referendum
voters and the voting period opened on
May 7, 2004. The voting period closed
on June 11, 2004. NMFS received 283
timely votes, four of which were
otherwise unresponsive. Approximately
93 percent (259 votes) approved the
fees. The referendum appeared to be
successful.
Before publishing a reduction
payment tender notice, however, NMFS
learned that the crab catch history for
some reduction/history vessels
overstated their actual crab catch history
during the bid scoring period. This
resulted from a computer programming
error which multiplied the crab catch
history of co-owned reduction/history
vessels times the number of vessel coowners. Accordingly, the bids
associated with these vessels appeared
to have more crab catch history during
the bid scoring period than they actually
did. This resulted in some inaccurate
bid scores.
Because of the government’s
unilateral mistake, the information
NMFS provided to the referendum
voters on May 7, 2004, was materially
inaccurate. In response, NMFS
readministered the referendum by
mailing new ballots to qualifying
referendum voters. The voting period
opened on July 9, 2004, and closed on
July 30, 2004. NMFS received 236
timely votes. This referendum was not
successful since only approximately 46
percent (109) of the votes cast approved
the fees.
Because of the first referendum’s
special circumstances, NMFS decided to
re-invite bids and held a second
referendum based on the new bidding
results. The second bidding period
opened on August 6, 2004, and closed
VerDate Aug<31>2005
15:20 Sep 15, 2005
Jkt 205001
on September 24, 2004. Fifty-five noninterim crab LLP license holders
submitted bids totaling $225,954,284.
NMFS again scored each bid’s amount
against the bidder’s past ex-vessel
revenues and, in a reverse auction,
accepted the bids whose amounts were
the lowest percentages of the revenues.
NMFS accepted 25 bids totaling
$97,399,357.11. The next lowest scoring
bid would have exceeded the program’s
maximum cost. The accepted bids
involved 25 fishing vessels as well as 62
fishing licenses or permits. Twenty-five
of the permits were non-interim crab
fishery LLP licenses. The remaining
included 15 groundfish fishing licenses,
20 Federal fishery vessel permits, one
high seas permit, and one halibut
individual fishing quota share
allocation.
NMFS allocated the prospective
$97,399,357.11 reduction loan to the six
reduction endorsement fisheries
involved, as the following sub-amounts:
1. Bristol Bay red king,
$17,129,957.23,
2. BSAI C. opilio and C. bairdi,
$66,410,767.20,
3. Aleutian Islands brown king,
$6,380,837.19,
4. Aleutian Islands red king,
$237,588.04,
5. Pribilof red king and Pribilof blue
king, $1,571,216.35, and
6. St. Matthew blue king,
$5,668,991.10.
NMFS next held a another fee
referendum. The reduction contracts
would have become void unless a 2⁄3
majority of votes cast in the second
referendum approved the fees. Each
crab LLP license holder received one
vote. NMFS mailed ballots to 313
qualifying referendum voters. The
voting period opened on October 1,
2004, and closed on November 15, 2004.
NMFS received 273 timely votes. Over
79 percent (217 votes) approved the
fees. The referendum was successful.
Accordingly, the reduction contracts
were in full force and effect.
On November 24, 2004, NMFS
published another Federal Register
notice (69 FR 68313) advising the public
that NMFS would, beginning on
December 27, 2004, tender the crab
reduction program’s reduction
payments to the 25 accepted bidders.
On December 27, 2004, NMFS required
all accepted bidders to then
permanently stop all further fishing
with the reduction vessels and permits.
Subsequently, NMFS:
1. Disbursed $97,399,357.11 in
reduction payments to 25 accepted
bidders;
2. Revoked the relinquished reduction
permits;
PO 00000
Frm 00045
Fmt 4700
Sfmt 4700
54653
3. Revoked each reduction vessel’s
fishing history;
4. Notified the National Vessel
Documentation Center to revoke the
reduction vessels’ fishery trade
endorsements and appropriately
annotate the reduction vessel’s
document; and
5. Notified the U.S. Maritime
Administration to prohibit the reduction
vessel’s transfer to foreign ownership or
registry.
On March 2, 2005, NMFS published
a final rule (70 FR 10174 et seq),
effective April 1, 2005, implementing
Amendments 18 and 19 to the Fishery
Management Plan for Bering Sea/
Aleutian Islands King and Tanner Crab.
Among other things, this rule added a
new part 680 to this chapter.
Amendments 18 and 19 amended the
crab fishery management plan to
include the Voluntary Three-Pie
Cooperative Program, otherwise known
as the Crab Rationalization Program
(CRP).
The CRP involves terminology which
sometimes differs from the terminology
in the crab reduction program’s
implementation rule. For example, the
CRP uses different terminology for each
of the eight crab rationalization fisheries
which, under the crab reduction
program’s implementation rule,
constitute only six reduction
endorsement fisheries. Rather than
redefining these terms for an already
completed crab reduction program, this
action retains these terms and cross
references them to the new CRP terms.
The following table cross references
the terms for the six reduction
endorsement fisheries involved in the
crab reduction program with the
different terminology for the eight crab
rationalization fisheries involved in the
CRP:
REDUCTION ENDORSEMENT FISHERIES
CRAB RATIONALIZATION FISHERIES
Bristol Bay red king
Bristol Bay red king
(BBR)
Bering Sea snow
(BSS) and Bering
Sea tanner (BST)
Eastern Aleutian Islands golden king
(EAG) and Western
Aleutian Islands
golden king (WAG)
Western Aleutian Islands red king (WAI)
Pribilof red king and
blue king (PIK)
St. Matthew blue
king (SMB)
BSAI C. opilio and
C. bairdi
Aleutian Islands
brown king
Aleutian Islands red
king
Pribilof red king and
Pribilof blue king
St. Matthew blue
king
Please note that, in two instances,
what are two separate crab
E:\FR\FM\16SER1.SGM
16SER1
54654
Federal Register / Vol. 70, No. 179 / Friday, September 16, 2005 / Rules and Regulations
rationalization fisheries are together in
one reduction endorsement fishery.
Consequently, both of the two separate
crab rationalization fisheries will, in
each of the two instances, pay fees at the
same rate as the one reduction
endorsement fishery in which the two
fisheries are included until the one
fishery’s reduction loan sub-amount, for
whose payment the two fisheries are
equally obligated, is fully repaid.
On July 28, 2005, NMFS published a
Federal Register document (70 FR
43673) proposing regulations to
implement the crab buyback program’s
industry fee system.
II. Final Fee Rule
NMFS has completed the crab
reduction program except for
implementing the fee. This final rule
implements the fee. The final rule will
be effective, and fee payment and
collection will begin on, October 17,
2005.
The terms defined in § 600.1103 of the
crab reduction program’s
implementation rule and in § 600.1000
of the program’s framework rule apply
to this action except for the definitions
of ‘‘reduction endorsement fishery’’ and
‘‘reduction fishery’’. This action refines
the definitions of these two terms to
reflect the post-CRP fishery’s
circumstances. The new definitions of
these terms in § 600.1104 supersede the
old definitions in this subpart’s
§ 600.1103.
The framework rule’s § 600.1013
governs fee payment and collection in
general, and this action applies the
§ 600.1013 provisions to the crab
reduction program.
Under § 600.1013, the first ex-vessel
buyers (fish buyers) of post-reduction
fish (fee fish) subject to an industry fee
system must withhold the fee from the
trip proceeds which the fish buyers
would otherwise have paid to the
parties (fish sellers) who harvested and
first sold the fee fish to the fish buyers.
Fish buyers calculate the fee to be
collected by multiplying the applicable
fee rate times the fee fish’s full delivery
value. Delivery value is the fee fish’s
full fair market value, including all inkind compensation or other goods or
services exchanged in lieu of cash.
Fish sellers pay the fees when fish
buyers collect by withholding the
applicable amount from trip proceeds.
Fee payment and collection is
mandatory, and there are substantial
penalties for failing to pay and collect
fees in accordance with the applicable
regulations.
The framework rule’s § 600.1014
governs how fish buyers must deposit,
and later disburse to NMFS, the fees
which they have collected as well as
how they must keep records of, and
report about, collected fees.
Under the framework rule’s
§ 600.1014, fish buyers must, no less
frequently than at the end of each
business week, deposit collected fees in
segregated and federally insured
accounts until, no less frequently than
on the last business day of each month,
they disburse all collected fees in the
accounts to a lockbox which NMFS has
specified for this purpose. Settlement
sheets must accompany these
disbursements. Fish buyers must
maintain specified fee collection records
for at least 3 years and send NMFS
annual reports of fee collection and
disbursement activities.
To provide more accessible services,
streamline collections, and save
taxpayer dollars, fish buyers may
disburse collected fee deposits to NMFS
by using a secure Federal system on the
Internet known as Pay.gov. Pay.gov
enables fish buyers to use their checking
accounts to electronically disburse their
collected fee deposits to NMFS. Fish
buyers who have access to the Internet
should consider using this quick and
easy collected fee disbursement method.
Fish buyers may access Pay.gov by
going directly to Pay.gov’s Federal
website at: https://www.pay.gov/paygov/
.
Fish buyers who do not have access
to the Internet or who simply do not
wish to use the Pay.gov electronic
system, must disburse their collected fee
deposits to us by sending their checks
to our lockbox. Our lockbox’s address is:
NOAA Fisheries BSAI Crab Buyback
P O Box 979060
St. Louis, MO 63197–9000
Fish buyers’ must not forget to
include with their disbursements the fee
collection report applicable to each
disbursement. The fee collection report
tells NMFS how much of the
disbursement it must apply to each of
REDUCTION ENDORSEMENT FISHERIES
Bristol Bay red king
BSAI C. opilio and C. bairdi
Aleutian Islands brown king
Aleutian Islands red king
Pribilof red king and Pribilof blue king
St. Matthew Blue
VerDate Aug<31>2005
15:20 Sep 15, 2005
Jkt 205001
CRAB RATIONALIZATION FISHERIES
the six reduction endorsement fisheries
subamounts. Fish buyers using Pay.gov
will find an electronic fee collection
report form to receive information and
accompany electronic disbursements.
Fish buyers who do not use Pay.gov
must include a hard copy fee collection
report with each of their disbursements.
Fish buyers not using Pay.gov may also
access the NMFS website for an Excel
spreadsheet version of the fee collection
report at: https://www.nmfs.noaa.gov/
mb/financiallservices/.
NMFS will, before the fee’s effective
date, separately mail a copy of this
notice, along with detailed fee payment,
collection, deposit, disbursement,
recording, and reporting information
and guidance, to each fish seller and
fish buyer of whom NMFS has notice.
The fact that any fish seller or fish buyer
might not, however, receive from NMFS
a copy of the notice or of the
information and guidance does not
relieve the fish seller or fish buyer from
his fee obligations under the applicable
regulations.
All parties interested in this action
should carefully read the following
framework rule sections, whose detailed
provisions apply to the fee system for
repaying the crab reduction program’s
loan:
1. § 600.1012;
2. § 600.1013;
3. § 600.1014;
4. § 600.1015;
5. § 600.1016; and
6. § 600.1017.
You will not understand this action’s
full requirements unless you read this
action in conjunction with reading at
least the framework rule sections listed
above.
NMFS, in accordance with the
framework rule’s section 600.1013(d),
establishes the initial fee for the
program’s six reduction endorsement
fisheries. NMFS will then separately
mail notification to each affected fish
seller and fish buyer of whom NMFS
has notice. Until this notification, fish
sellers and fish buyers do not have to
either pay or collect the fee. The initial
fee rates applicable to each reduction
endorsement fishery are as indicated in
the last column of the following table:
LOAN SUB-AMOUNT
BBR
BSS and BST
EAG and WAG
WAI
PIK
SMB
PO 00000
Frm 00046
Fmt 4700
$17,129,957.23
$66,410,767.20
$6,380,837.19
$237,588.04
$1,571,216.35
$5,668,991.10
Sfmt 4700
E:\FR\FM\16SER1.SGM
16SER1
FEE RATE
1.9%
5.0%
2.6%
5.0%
5.0%
5.0%
Federal Register / Vol. 70, No. 179 / Friday, September 16, 2005 / Rules and Regulations
The rates are percentages of delivery
value. Please see the framework rule’s
§ 600.1000 for the definition of
‘‘delivery value’’ and of the other terms
relevant to this final rule.
Each disbursement of the reduction
loan’s $97,399,357.11 principal amount
began accruing interest as of the date of
each such disbursement. The loan’s
interest rate will be the applicable rate,
plus 2 percent, which the U.S. Treasury
determines at the end of fiscal year
2005.
III. Summary of Comments and
Responses
NMFS received one comment in
response to the proposed fee
regulations. This comment requested
higher fee rates than the ones in NMFS’
proposed regulations. NMFS’ proposed
fee rates were, however, the ones
necessary to amortize the loan
subamounts in accordance with the
legislation authorizing the crab
reduction program, and the final rule
does not increase these rates.
Consequently, this action adopts the
proposed fee regulations without
revision.
Classification
The Assistant Administrator for
Fisheries, NMFS, determined that this
final rule is consistent with the
Magnuson-Stevens Fishery
Conservation and Management Act and
other applicable laws.
In compliance with the National
Environmental Policy Act, NMFS
prepared an environmental assessment
for the crab reduction program’s final
implementing rule (December 12, 2003;
68 FR 69331). The assessment discusses
the program’s impact on the natural and
human environment. The assessment
resulted in a finding of no significant
impact. The assessment considered,
among other alternatives, the
implementation of the fee payment and
collection in this action. NMFS will
provide a copy of the assessment upon
request (see ADDRESSES).
The Office of Management and Budget
determined that this rule is significant
under Executive Order 12866. NMFS
prepared a Regulatory Impact Review
for the crab reduction program’s final
rule. NMFS will provide a copy of the
review upon request (see ADDRESSES).
NMFS prepared a Final Regulatory
Flexibility Analysis for the crab
reduction program as required by the
Regulatory Flexibility Act’s section 603.
The analysis describes the impact this
final rule would have on small entities.
NMFS will provide a copy of the
analysis upon request (see ADDRESSES).
An analysis summary follows:
VerDate Aug<31>2005
15:20 Sep 15, 2005
Jkt 205001
1. Description of Reasons for Action and
Statement of Objective and Legal Basis
Please see the initial background
section of this action’s supplementary
information, because the information
there is similar to the analysis in this
regard.
2. Description of Small Entities to
Which the Rule Applies
The Small Business Administration
has defined small entities to be all fish
harvesting businesses which are
independently owned and operated, are
not dominant in their field of operation,
and have annual receipts of $3.5 million
or less. The definition also includes
processors with 500 or fewer employees
involved in related industries such as
canned and cured fish and seafood or
preparing fresh fish and seafood.
Moreover, the definition also includes
virtually all harvesting vessels.
3. Description of Recordkeeping and
Compliance Costs
Please see this action’s collection-ofinformation requirements following the
analysis.
4. Duplication or Conflict with Other
Federal Rules
This rule does not duplicate or
conflict with any federal rules.
5. Description of Significant
Alternatives Considered
NMFS considered three alternatives:
(1) status quo (no fees); (2) buyback with
uniform fees; and (3) buyback with
weighted (by reduction endorsement
fishery) fees.
Status Quo (Alternative 1)
Under the status quo, vessel revenues
would not be affected. The status quo is
a significant alternative to this action
because the former involves no fees and
the latter does. NMFS could not choose
this alternative because it is contrary to
Public Law 106–554.
Uniform Loan Repayment Fees
(Alternative 2)
Under Alternative 2, NMFS would
apply one fee to the entire crab fishery
rather than assigning a different fee to
each of the six reduction endorsement
fisheries based on their proportional bid
crab values. NMFS could not choose
this alternative because it is contrary to
Public Law 106–554.
Repayment Fees (Alternative 3)
Under Alternative 3, NMFS would
assign a different fee rate for each of the
six reduction endorsement fisheries
based on their proportional bid crab
values. Like Alternative 2, Alternative 3
PO 00000
Frm 00047
Fmt 4700
Sfmt 4700
54655
would adversely affect vessel revenues.
Nevertheless, Alternative 3 is the most
equitable because it apportions
repayment obligations based on the
actual reduction benefits which each
reduction endorsement fishery actually
received. This is the preferred
alternative both because it is the most
equitable and Public Law 106–554
requires this alternative’s method.
6. Steps the Agency Has Taken to
Mitigate Negative Effects of the Action
With the lack of available cost data,
increases in revenues may serve as a
proxy for increased profitability.
Further, in light of available revenue
data, and assuming that each individual
vessel shares in the increased revenues
resulting from the crab buyback
program, the comparison of the relative
effects of the program versus the effects
of the fees show that overall economic
benefits of the program would still be
greater than the relative fees charged
under this rule. NMFS is not aware of
any other measures that could reduce
the impact on small entities and still
meet statutory requirements.
This final rule contains collection-ofinformation requirements subject to the
Paperwork Reduction Act. OMB has
approved these information collections
under OMB control number 0648–0376.
NMFS estimates that the public
reporting burden for these requirements
will average:
1. Two hours for submitting a
monthly fish buyer settlement sheet;
2. Four hours for submitting an
annual fish buyer report; and
3. Two hours for making a fish buyer/
fish seller report when one party fails to
either pay or collect the fee.
These response estimates include the
time for reviewing instructions,
searching existing data sources,
gathering and maintaining the data
needed, and completing and reviewing
the information collection.
Send comments regarding this burden
estimate, or any other aspect of this data
collection, including suggestions for
reducing the burden, to both NMFS and
OMB (see ADDRESSES).
Notwithstanding any other provision
of the law, no person is required to
respond to, and no person is subject to
a penalty for failure to comply with, any
information collection subject to the
Paperwork Reduction Act unless that
information collection displays a
currently valid OMB control number.
List of Subjects in 50 CFR Part 600
Fisheries, Fishing capacity reduction,
Fishing permits, Fishing vessels,
Intergovernmental relations, Loan
E:\FR\FM\16SER1.SGM
16SER1
54656
Federal Register / Vol. 70, No. 179 / Friday, September 16, 2005 / Rules and Regulations
programs business, Reporting and
recordkeeping requirements.
Dated: September 13, 2005.
John Oliver,
Deputy Assistant Administrator for
Operations, National Marine Fisheries
Service.
For the reasons in the preamble, the
National Marine Fisheries Service
amends 50 CFR part 600 as follows:
I
PART 600—MAGNUSON-STEVENS
ACT PROVISIONS
1. The authority citation for part 600
continues to read as follows:
I
Authority: 5 U.S.C. 561, 16 U.S.C. 1801 et
seq., 16 U.S.C. 1861a(b) through (e), 46 App.
U.S.C. 1279f and 1279g, section 144(d) of
Division B of Pub. L. 106–554, section 2201
of Pub. L. 107–20, section 205 of Pub. L. 107–
117, Pub. L. 107–206, and Pub. L. 108–7.
2. Section 600.1104 text is added to
read as follows:
I
§ 600.1104 Bering Sea and Aleutian
Islands (BSAI) crab species fee payment
and collection system.
(a) Purpose. As authorized by Public
Law 106–554, this section’s purpose is
to:
(1) In accordance with § 600.1012 of
subpart L, establish:
(i) The borrower’s obligation to repay
a reduction loan, and
(ii) The loan’s principal amount,
interest rate, and repayment term; and
(2) In accordance with § 600.1013
through § 600.1016 of subpart L,
implement an industry fee system for
the reduction fishery.
(b) Definitions. Unless otherwise
defined in this section, the terms
defined in § 600.1000 of subpart L and
§ 600.1103 of this subpart expressly
apply to this section. The following
terms have the following meanings for
the purpose of this section:
Crab rationalization crab means the
same as in § 680.2 of this chapter.
Crab rationalization fisheries means
the same as in § 680.2 of this chapter.
Reduction endorsement fishery means
any of the seven fisheries that § 679.2 of
this chapter formerly (before adoption of
part 680 of this chapter) defined as crab
area/species endorsements, except the
area/species endorsement for Norton
Sound red king. More specifically, the
reduction endorsement fisheries, and
the crab rationalization fisheries which
(after adoption of part 680 of this
chapter) correspond to the reduction
endorsement fisheries, are:
(1) Bristol Bay red king (the
corresponding crab rationalization
fishery is Bristol Bay red king crab),
(2) Bering Sea and Aleutian Islands
Area C. opilio and C. bairdi (the
VerDate Aug<31>2005
15:20 Sep 15, 2005
Jkt 205001
corresponding crab rationalization
fisheries are two separate fisheries, one
for Bering Sea snow crab and another
for Bering Sea Tanner crab),
(3) Aleutian Islands brown king (the
corresponding crab rationalization
fisheries are the two separate fisheries,
one for Eastern Aleutian Islands golden
king crab and another for Western
Aleutian Islands golden king crab),
(4) Aleutian Islands red king (the
corresponding crab rationalization
fishery is Western Aleutian Islands red
king crab),
(5) Pribilof red king and Pribilof blue
king (the corresponding crab
rationalization fishery is Pribilof red
king and blue king crab), and
(6) St. Matthew blue king (the
corresponding crab rationalization
fishery is also St. Matthew blue king
crab).
Reduction fishery means the fishery
for all crab rationalization crab in all
crab rationalization fisheries. Subamount means the portion of the
reduction loan amount for whose
repayment the borrower in each
reduction endorsement fishery is
obligated.
(c) Reduction loan amount. The
reduction loan’s original principal
amount is $97,399,357.11.
(d) Sub-amounts. The sub-amounts
are:
January 19, 2005, but each fee shall
continue indefinitely for as long as
necessary to fully repay each
subamount.
(h) Reduction loan repayment. (1) The
borrower shall, in accordance with
§ 600.1012, repay the reduction loan;
(2) Fish sellers in each reduction
endorsement fishery shall, in
accordance with § 600.1013, pay the fee
at the rate applicable to each such
fishery’s subamount;
(3) Fish buyers in each reduction
endorsement fishery shall, in
accordance with § 600.1013, collect the
fee at the rate applicable to each such
fishery;
(4) Fish buyers in each reduction
endorsement fishery shall, in
accordance with § 600.1014, deposit and
disburse, as well as keep records for and
submit reports about, the fees applicable
to each such fishery; and,
(5) The reduction loan is, in all other
respects, subject to the provisions of
§ 600.1012 through § 600.1017.
[FR Doc. 05–18444 Filed 9–15–05; 8:45 am]
BILLING CODE 3510–22–S
DEPARTMENT OF COMMERCE
National Oceanic and Atmospheric
Administration
50 CFR Part 679
(1) For Bristol Bay red king,
$17,129,957.23;
[Docket No. 041126332–5039–02; I.D.
091205A]
(2) For Bering Sea and Aleutian
Islands Area C. opilio and C. bairdi,
$66,410,767.20;
Fisheries of the Exclusive Economic
Zone Off Alaska; Yellowfin Sole in the
Bering Sea and Aleutian Islands
Management Area
(3) For Aleutian Islands brown king,
$6,380,837.19;
(4) For Aleutian Islands red king,
$237,588.04;
(5) For Pribilof red king and Pribilof
blue king, $1,571,216.35; and
(6) For St. Matthew blue king,
$5,668,991.10.
(e) Interest accrual from inception.
Interest began accruing on each portion
of the reduction loan amount on and
from the date on which NMFS
disbursed each such portion.
(f) Interest rate. The reduction loan’s
interest rate shall be the applicable rate
which the U.S. Treasury determines at
the end of fiscal year 2005 plus 2
percent.
(g) Repayment term. For the purpose
of determining fee rates, the reduction
loan’s repayment term is 30 years from
PO 00000
Frm 00048
Fmt 4700
Sfmt 4700
National Marine Fisheries
Service (NMFS), National Oceanic and
Atmospheric Administration (NOAA),
Commerce.
ACTION: Temporary rule; apportionment
of reserves; request for comments.
AGENCY:
SUMMARY: NMFS apportions amounts of
the non-specified reserve of groundfish
to the yellowfin sole initial total
allowable catch (ITAC) in the Bering Sea
and Aleutian Islands management area
(BSAI). This action is necessary to allow
the fishery to continue operating. It is
intended to promote the goals and
objectives of the fishery management
plan for the BSAI.
DATES: Effective September 16, 2005
through 2400 hrs, Alaska local time,
December 31, 2005. Comments must be
received at the following address no
later than 4:30 p.m., Alaska local time,
September 28, 2005.
E:\FR\FM\16SER1.SGM
16SER1
]]>Agencies
[Federal Register Volume 70, Number 179 (Friday, September 16, 2005)]
[Rules and Regulations]
[Pages 54652-54656]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 05-18444]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
National Oceanic and Atmospheric Administration
50 CFR Part 600
[Docket No. 050520139-5239-02; I.D. 030305A]
RIN 0648-AS46
Magnuson-Stevens Act Provisions; Fishing Capacity Reduction
Program; Bering Sea/Aleutian Islands King and Tanner Crabs; Industry
Fee System for Fishing Capacity Reduction Loan
AGENCY: National Marine Fisheries Service (NMFS), National Oceanic and
Atmospheric Administration (NOAA), Commerce.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: NMFS establishes regulations to implement an industry fee
system for repaying a $97,399,357.11 Federal loan financing a fishing
capacity reduction program in the Bering Sea/Aleutian Islands King and
Tanner Crab fishery. This action implements the fee system.
DATES: This final rule is effective, and crab program fee payment
collection will begin, on October 17, 2005.
ADDRESSES: Copies of the Environmental Assessment, Regulatory Impact
Review, and Final Regulatory Flexibility Analysis (EA/RIR/FRFA) for the
program may be obtained from Michael L. Grable, Chief, Financial
Services Division, National Marine Fisheries Service, 1315 East-West
Highway, Silver Spring, MD 20910-3282.
Written comments involving the burden-hour estimates or other
aspects of the collection-of-information requirements contained in this
final rule should be submitted in writing to Michael L. Grable, at the
above address, and to David Rostker, Office of Management and Budget
(OMB), by e-mail at David--Rostker@omb.eop.gov or by fax to 202-395-
7285.
FOR FURTHER INFORMATION CONTACT: Michael L. Grable, (301) 713-2390.
SUPPLEMENTARY INFORMATION:
I. Background
Sections 312(b)-(e) of the Magnuson-Stevens Fishery Conservation
and Management Act (16 U.S.C. 1861a(b) through (e)) generally
authorized fishing capacity reduction programs. In particular, section
312(d) authorized industry fee systems for repaying the reduction loans
which finance reduction program costs.
Subpart L of 50 CFR part 600 is the framework rule generally
implementing sections 312(b)-(e).
Sections 1111 and 1112 of the Merchant Marine Act, 1936 (46 App.
U.S.C. 1279f and 1279g) generally authorized reduction loans.
The Consolidated Appropriations Act of 2001 (Public Law 106-554)
directed the Secretary of Commerce to establish a $100 million fishing
capacity reduction program in the Bering Sea/Aleutian Islands king and
Tanner crab fishery. Congress amended the authorizing Act twice (Public
Law 107-20 and Public Law 107-117), once to change the crab reduction
program's funding from a $50 million appropriation and a $50 million
loan to a $100 million loan and once to clarify provisions about crab
fishery vessels.
NMFS published the crab reduction program's proposed implementation
rule on December 12, 2002 (67 FR 76329) and its final rule on December
12, 2003 (68 FR 69331). Anyone interested in the program's full
implementation details should refer to these two documents. NMFS
initially proposed and adopted the program's implementation rule as
section 600.1018 of Subpart L of 50 CFR part 600, but NMFS has since,
without other change, re-designated the rule as section 600.1103 in a
new subpart M of part 600.
To avoid confusion, the following table identifies the various part
600 rules involved in or affecting the crab reduction program:
----------------------------------------------------------------------------------------------------------------
DESCRIPTION SUBPART SECTION
----------------------------------------------------------------------------------------------------------------
Reduction Framework Rule L 600.1000-600.1017
Program Implementation Rule's Initial L 600.1018
Designation
Program Implementation Rule's Re-designation M 600.1103
Fee Rule M 600.1104
----------------------------------------------------------------------------------------------------------------
The crab reduction program's maximum cost was $100 million
consisting of a 30-year loan to be repaid by fees on future crab
landings. Each of six of the crab fishery's seven former crab area/
species endorsement fisheries were to pay fees at different rates. In
return for reduction payments equaling their bid amounts, voluntary
program participants relinquished, among other things, their crab
fishing license limitation program (LLP) licenses and other permits,
their catch histories associated with those licenses and
[[Page 54653]]
permits, and their crab fishing vessels' worldwide fishing privileges.
NMFS notice in the Federal Register (69 FR 7421) issued the crab
reduction program's invitation to bid on February 17, 2004. The bidding
period opened on March 5, 2004, and closed on April 23, 2004. NMFS
scored each bid's amount against the bidder's past ex-vessel crab
revenues and, in a reverse auction, accepted the bids whose amounts
were the lowest percentages of the revenues.
Forty-two non-interim crab LLP license holders submitted bids
totaling $192,600,916. NMFS accepted 28 bids totaling $99,878,316. The
next lowest scoring bid would have exceeded the program's maximum cost.
NMFS next held a referendum about the fees. The reduction contracts
would have become void unless a \2/3\ majority of votes cast in the
referendum approved the fees. Each crab LLP license holder received one
vote. NMFS mailed ballots to qualifying referendum voters and the
voting period opened on May 7, 2004. The voting period closed on June
11, 2004. NMFS received 283 timely votes, four of which were otherwise
unresponsive. Approximately 93 percent (259 votes) approved the fees.
The referendum appeared to be successful.
Before publishing a reduction payment tender notice, however, NMFS
learned that the crab catch history for some reduction/history vessels
overstated their actual crab catch history during the bid scoring
period. This resulted from a computer programming error which
multiplied the crab catch history of co-owned reduction/history vessels
times the number of vessel co-owners. Accordingly, the bids associated
with these vessels appeared to have more crab catch history during the
bid scoring period than they actually did. This resulted in some
inaccurate bid scores.
Because of the government's unilateral mistake, the information
NMFS provided to the referendum voters on May 7, 2004, was materially
inaccurate. In response, NMFS readministered the referendum by mailing
new ballots to qualifying referendum voters. The voting period opened
on July 9, 2004, and closed on July 30, 2004. NMFS received 236 timely
votes. This referendum was not successful since only approximately 46
percent (109) of the votes cast approved the fees.
Because of the first referendum's special circumstances, NMFS
decided to re-invite bids and held a second referendum based on the new
bidding results. The second bidding period opened on August 6, 2004,
and closed on September 24, 2004. Fifty-five non-interim crab LLP
license holders submitted bids totaling $225,954,284.
NMFS again scored each bid's amount against the bidder's past ex-
vessel revenues and, in a reverse auction, accepted the bids whose
amounts were the lowest percentages of the revenues.
NMFS accepted 25 bids totaling $97,399,357.11. The next lowest
scoring bid would have exceeded the program's maximum cost. The
accepted bids involved 25 fishing vessels as well as 62 fishing
licenses or permits. Twenty-five of the permits were non-interim crab
fishery LLP licenses. The remaining included 15 groundfish fishing
licenses, 20 Federal fishery vessel permits, one high seas permit, and
one halibut individual fishing quota share allocation.
NMFS allocated the prospective $97,399,357.11 reduction loan to the
six reduction endorsement fisheries involved, as the following sub-
amounts:
1. Bristol Bay red king, $17,129,957.23,
2. BSAI C. opilio and C. bairdi, $66,410,767.20,
3. Aleutian Islands brown king, $6,380,837.19,
4. Aleutian Islands red king, $237,588.04,
5. Pribilof red king and Pribilof blue king, $1,571,216.35, and
6. St. Matthew blue king, $5,668,991.10.
NMFS next held a another fee referendum. The reduction contracts
would have become void unless a \2/3\ majority of votes cast in the
second referendum approved the fees. Each crab LLP license holder
received one vote. NMFS mailed ballots to 313 qualifying referendum
voters. The voting period opened on October 1, 2004, and closed on
November 15, 2004. NMFS received 273 timely votes. Over 79 percent (217
votes) approved the fees. The referendum was successful. Accordingly,
the reduction contracts were in full force and effect.
On November 24, 2004, NMFS published another Federal Register
notice (69 FR 68313) advising the public that NMFS would, beginning on
December 27, 2004, tender the crab reduction program's reduction
payments to the 25 accepted bidders. On December 27, 2004, NMFS
required all accepted bidders to then permanently stop all further
fishing with the reduction vessels and permits. Subsequently, NMFS:
1. Disbursed $97,399,357.11 in reduction payments to 25 accepted
bidders;
2. Revoked the relinquished reduction permits;
3. Revoked each reduction vessel's fishing history;
4. Notified the National Vessel Documentation Center to revoke the
reduction vessels' fishery trade endorsements and appropriately
annotate the reduction vessel's document; and
5. Notified the U.S. Maritime Administration to prohibit the
reduction vessel's transfer to foreign ownership or registry.
On March 2, 2005, NMFS published a final rule (70 FR 10174 et seq),
effective April 1, 2005, implementing Amendments 18 and 19 to the
Fishery Management Plan for Bering Sea/Aleutian Islands King and Tanner
Crab. Among other things, this rule added a new part 680 to this
chapter. Amendments 18 and 19 amended the crab fishery management plan
to include the Voluntary Three-Pie Cooperative Program, otherwise known
as the Crab Rationalization Program (CRP).
The CRP involves terminology which sometimes differs from the
terminology in the crab reduction program's implementation rule. For
example, the CRP uses different terminology for each of the eight crab
rationalization fisheries which, under the crab reduction program's
implementation rule, constitute only six reduction endorsement
fisheries. Rather than redefining these terms for an already completed
crab reduction program, this action retains these terms and cross
references them to the new CRP terms.
The following table cross references the terms for the six
reduction endorsement fisheries involved in the crab reduction program
with the different terminology for the eight crab rationalization
fisheries involved in the CRP:
------------------------------------------------------------------------
REDUCTION ENDORSEMENT FISHERIES CRAB RATIONALIZATION FISHERIES
------------------------------------------------------------------------
Bristol Bay red king Bristol Bay red king (BBR)
BSAI C. opilio and C. bairdi Bering Sea snow (BSS) and Bering
Sea tanner (BST)
Aleutian Islands brown king Eastern Aleutian Islands golden
king (EAG) and Western Aleutian
Islands golden king (WAG)
Aleutian Islands red king Western Aleutian Islands red king
(WAI)
Pribilof red king and Pribilof blue Pribilof red king and blue king
king (PIK)
St. Matthew blue king St. Matthew blue king (SMB)
------------------------------------------------------------------------
Please note that, in two instances, what are two separate crab
[[Page 54654]]
rationalization fisheries are together in one reduction endorsement
fishery. Consequently, both of the two separate crab rationalization
fisheries will, in each of the two instances, pay fees at the same rate
as the one reduction endorsement fishery in which the two fisheries are
included until the one fishery's reduction loan sub-amount, for whose
payment the two fisheries are equally obligated, is fully repaid.
On July 28, 2005, NMFS published a Federal Register document (70 FR
43673) proposing regulations to implement the crab buyback program's
industry fee system.
II. Final Fee Rule
NMFS has completed the crab reduction program except for
implementing the fee. This final rule implements the fee. The final
rule will be effective, and fee payment and collection will begin on,
October 17, 2005.
The terms defined in Sec. 600.1103 of the crab reduction program's
implementation rule and in Sec. 600.1000 of the program's framework
rule apply to this action except for the definitions of ``reduction
endorsement fishery'' and ``reduction fishery''. This action refines
the definitions of these two terms to reflect the post-CRP fishery's
circumstances. The new definitions of these terms in Sec. 600.1104
supersede the old definitions in this subpart's Sec. 600.1103.
The framework rule's Sec. 600.1013 governs fee payment and
collection in general, and this action applies the Sec. 600.1013
provisions to the crab reduction program.
Under Sec. 600.1013, the first ex-vessel buyers (fish buyers) of
post-reduction fish (fee fish) subject to an industry fee system must
withhold the fee from the trip proceeds which the fish buyers would
otherwise have paid to the parties (fish sellers) who harvested and
first sold the fee fish to the fish buyers. Fish buyers calculate the
fee to be collected by multiplying the applicable fee rate times the
fee fish's full delivery value. Delivery value is the fee fish's full
fair market value, including all in-kind compensation or other goods or
services exchanged in lieu of cash.
Fish sellers pay the fees when fish buyers collect by withholding
the applicable amount from trip proceeds. Fee payment and collection is
mandatory, and there are substantial penalties for failing to pay and
collect fees in accordance with the applicable regulations.
The framework rule's Sec. 600.1014 governs how fish buyers must
deposit, and later disburse to NMFS, the fees which they have collected
as well as how they must keep records of, and report about, collected
fees.
Under the framework rule's Sec. 600.1014, fish buyers must, no
less frequently than at the end of each business week, deposit
collected fees in segregated and federally insured accounts until, no
less frequently than on the last business day of each month, they
disburse all collected fees in the accounts to a lockbox which NMFS has
specified for this purpose. Settlement sheets must accompany these
disbursements. Fish buyers must maintain specified fee collection
records for at least 3 years and send NMFS annual reports of fee
collection and disbursement activities.
To provide more accessible services, streamline collections, and
save taxpayer dollars, fish buyers may disburse collected fee deposits
to NMFS by using a secure Federal system on the Internet known as
Pay.gov. Pay.gov enables fish buyers to use their checking accounts to
electronically disburse their collected fee deposits to NMFS. Fish
buyers who have access to the Internet should consider using this quick
and easy collected fee disbursement method. Fish buyers may access
Pay.gov by going directly to Pay.gov's Federal website at: https://
www.pay.gov/paygov/.
Fish buyers who do not have access to the Internet or who simply do
not wish to use the Pay.gov electronic system, must disburse their
collected fee deposits to us by sending their checks to our lockbox.
Our lockbox's address is:
NOAA Fisheries BSAI Crab Buyback
P O Box 979060
St. Louis, MO 63197-9000
Fish buyers' must not forget to include with their disbursements
the fee collection report applicable to each disbursement. The fee
collection report tells NMFS how much of the disbursement it must apply
to each of the six reduction endorsement fisheries subamounts. Fish
buyers using Pay.gov will find an electronic fee collection report form
to receive information and accompany electronic disbursements. Fish
buyers who do not use Pay.gov must include a hard copy fee collection
report with each of their disbursements. Fish buyers not using Pay.gov
may also access the NMFS website for an Excel spreadsheet version of
the fee collection report at: https://www.nmfs.noaa.gov/mb/financial_
services/.
NMFS will, before the fee's effective date, separately mail a copy
of this notice, along with detailed fee payment, collection, deposit,
disbursement, recording, and reporting information and guidance, to
each fish seller and fish buyer of whom NMFS has notice. The fact that
any fish seller or fish buyer might not, however, receive from NMFS a
copy of the notice or of the information and guidance does not relieve
the fish seller or fish buyer from his fee obligations under the
applicable regulations.
All parties interested in this action should carefully read the
following framework rule sections, whose detailed provisions apply to
the fee system for repaying the crab reduction program's loan:
1. Sec. 600.1012;
2. Sec. 600.1013;
3. Sec. 600.1014;
4. Sec. 600.1015;
5. Sec. 600.1016; and
6. Sec. 600.1017.
You will not understand this action's full requirements unless you
read this action in conjunction with reading at least the framework
rule sections listed above.
NMFS, in accordance with the framework rule's section 600.1013(d),
establishes the initial fee for the program's six reduction endorsement
fisheries. NMFS will then separately mail notification to each affected
fish seller and fish buyer of whom NMFS has notice. Until this
notification, fish sellers and fish buyers do not have to either pay or
collect the fee. The initial fee rates applicable to each reduction
endorsement fishery are as indicated in the last column of the
following table:
------------------------------------------------------------------------
REDUCTION
ENDORSEMENT CRAB RATIONALIZATION LOAN SUB- FEE RATE
FISHERIES FISHERIES AMOUNT
------------------------------------------------------------------------
Bristol Bay red king BBR $17,129,957.2 1.9%
3
BSAI C. opilio and BSS and BST $66,410,767.2 5.0%
C. bairdi 0
Aleutian Islands EAG and WAG $6,380,837.19 2.6%
brown king
Aleutian Islands red WAI $237,588.04 5.0%
king
Pribilof red king PIK $1,571,216.35 5.0%
and Pribilof blue
king
St. Matthew Blue SMB $5,668,991.10 5.0%
------------------------------------------------------------------------
[[Page 54655]]
The rates are percentages of delivery value. Please see the
framework rule's Sec. 600.1000 for the definition of ``delivery
value'' and of the other terms relevant to this final rule.
Each disbursement of the reduction loan's $97,399,357.11 principal
amount began accruing interest as of the date of each such
disbursement. The loan's interest rate will be the applicable rate,
plus 2 percent, which the U.S. Treasury determines at the end of fiscal
year 2005.
III. Summary of Comments and Responses
NMFS received one comment in response to the proposed fee
regulations. This comment requested higher fee rates than the ones in
NMFS' proposed regulations. NMFS' proposed fee rates were, however, the
ones necessary to amortize the loan subamounts in accordance with the
legislation authorizing the crab reduction program, and the final rule
does not increase these rates.
Consequently, this action adopts the proposed fee regulations
without revision.
Classification
The Assistant Administrator for Fisheries, NMFS, determined that
this final rule is consistent with the Magnuson-Stevens Fishery
Conservation and Management Act and other applicable laws.
In compliance with the National Environmental Policy Act, NMFS
prepared an environmental assessment for the crab reduction program's
final implementing rule (December 12, 2003; 68 FR 69331). The
assessment discusses the program's impact on the natural and human
environment. The assessment resulted in a finding of no significant
impact. The assessment considered, among other alternatives, the
implementation of the fee payment and collection in this action. NMFS
will provide a copy of the assessment upon request (see ADDRESSES).
The Office of Management and Budget determined that this rule is
significant under Executive Order 12866. NMFS prepared a Regulatory
Impact Review for the crab reduction program's final rule. NMFS will
provide a copy of the review upon request (see ADDRESSES).
NMFS prepared a Final Regulatory Flexibility Analysis for the crab
reduction program as required by the Regulatory Flexibility Act's
section 603. The analysis describes the impact this final rule would
have on small entities. NMFS will provide a copy of the analysis upon
request (see ADDRESSES). An analysis summary follows:
1. Description of Reasons for Action and Statement of Objective and
Legal Basis
Please see the initial background section of this action's
supplementary information, because the information there is similar to
the analysis in this regard.
2. Description of Small Entities to Which the Rule Applies
The Small Business Administration has defined small entities to be
all fish harvesting businesses which are independently owned and
operated, are not dominant in their field of operation, and have annual
receipts of $3.5 million or less. The definition also includes
processors with 500 or fewer employees involved in related industries
such as canned and cured fish and seafood or preparing fresh fish and
seafood. Moreover, the definition also includes virtually all
harvesting vessels.
3. Description of Recordkeeping and Compliance Costs
Please see this action's collection-of-information requirements
following the analysis.
4. Duplication or Conflict with Other Federal Rules
This rule does not duplicate or conflict with any federal rules.
5. Description of Significant Alternatives Considered
NMFS considered three alternatives: (1) status quo (no fees); (2)
buyback with uniform fees; and (3) buyback with weighted (by reduction
endorsement fishery) fees.
Status Quo (Alternative 1)
Under the status quo, vessel revenues would not be affected. The
status quo is a significant alternative to this action because the
former involves no fees and the latter does. NMFS could not choose this
alternative because it is contrary to Public Law 106-554.
Uniform Loan Repayment Fees (Alternative 2)
Under Alternative 2, NMFS would apply one fee to the entire crab
fishery rather than assigning a different fee to each of the six
reduction endorsement fisheries based on their proportional bid crab
values. NMFS could not choose this alternative because it is contrary
to Public Law 106-554.
Repayment Fees (Alternative 3)
Under Alternative 3, NMFS would assign a different fee rate for
each of the six reduction endorsement fisheries based on their
proportional bid crab values. Like Alternative 2, Alternative 3 would
adversely affect vessel revenues. Nevertheless, Alternative 3 is the
most equitable because it apportions repayment obligations based on the
actual reduction benefits which each reduction endorsement fishery
actually received. This is the preferred alternative both because it is
the most equitable and Public Law 106-554 requires this alternative's
method.
6. Steps the Agency Has Taken to Mitigate Negative Effects of the
Action
With the lack of available cost data, increases in revenues may
serve as a proxy for increased profitability. Further, in light of
available revenue data, and assuming that each individual vessel shares
in the increased revenues resulting from the crab buyback program, the
comparison of the relative effects of the program versus the effects of
the fees show that overall economic benefits of the program would still
be greater than the relative fees charged under this rule. NMFS is not
aware of any other measures that could reduce the impact on small
entities and still meet statutory requirements.
This final rule contains collection-of-information requirements
subject to the Paperwork Reduction Act. OMB has approved these
information collections under OMB control number 0648-0376. NMFS
estimates that the public reporting burden for these requirements will
average:
1. Two hours for submitting a monthly fish buyer settlement sheet;
2. Four hours for submitting an annual fish buyer report; and
3. Two hours for making a fish buyer/fish seller report when one
party fails to either pay or collect the fee.
These response estimates include the time for reviewing
instructions, searching existing data sources, gathering and
maintaining the data needed, and completing and reviewing the
information collection.
Send comments regarding this burden estimate, or any other aspect
of this data collection, including suggestions for reducing the burden,
to both NMFS and OMB (see ADDRESSES).
Notwithstanding any other provision of the law, no person is
required to respond to, and no person is subject to a penalty for
failure to comply with, any information collection subject to the
Paperwork Reduction Act unless that information collection displays a
currently valid OMB control number.
List of Subjects in 50 CFR Part 600
Fisheries, Fishing capacity reduction, Fishing permits, Fishing
vessels, Intergovernmental relations, Loan
[[Page 54656]]
programs business, Reporting and recordkeeping requirements.
Dated: September 13, 2005.
John Oliver,
Deputy Assistant Administrator for Operations, National Marine
Fisheries Service.
0
For the reasons in the preamble, the National Marine Fisheries Service
amends 50 CFR part 600 as follows:
PART 600--MAGNUSON-STEVENS ACT PROVISIONS
0
1. The authority citation for part 600 continues to read as follows:
Authority: 5 U.S.C. 561, 16 U.S.C. 1801 et seq., 16 U.S.C.
1861a(b) through (e), 46 App. U.S.C. 1279f and 1279g, section 144(d)
of Division B of Pub. L. 106-554, section 2201 of Pub. L. 107-20,
section 205 of Pub. L. 107-117, Pub. L. 107-206, and Pub. L. 108-7.
0
2. Section 600.1104 text is added to read as follows:
Sec. 600.1104 Bering Sea and Aleutian Islands (BSAI) crab species fee
payment and collection system.
(a) Purpose. As authorized by Public Law 106-554, this section's
purpose is to:
(1) In accordance with Sec. 600.1012 of subpart L, establish:
(i) The borrower's obligation to repay a reduction loan, and
(ii) The loan's principal amount, interest rate, and repayment
term; and
(2) In accordance with Sec. 600.1013 through Sec. 600.1016 of
subpart L, implement an industry fee system for the reduction fishery.
(b) Definitions. Unless otherwise defined in this section, the
terms defined in Sec. 600.1000 of subpart L and Sec. 600.1103 of this
subpart expressly apply to this section. The following terms have the
following meanings for the purpose of this section:
Crab rationalization crab means the same as in Sec. 680.2 of this
chapter.
Crab rationalization fisheries means the same as in Sec. 680.2 of
this chapter.
Reduction endorsement fishery means any of the seven fisheries that
Sec. 679.2 of this chapter formerly (before adoption of part 680 of
this chapter) defined as crab area/species endorsements, except the
area/species endorsement for Norton Sound red king. More specifically,
the reduction endorsement fisheries, and the crab rationalization
fisheries which (after adoption of part 680 of this chapter) correspond
to the reduction endorsement fisheries, are:
(1) Bristol Bay red king (the corresponding crab rationalization
fishery is Bristol Bay red king crab),
(2) Bering Sea and Aleutian Islands Area C. opilio and C. bairdi
(the corresponding crab rationalization fisheries are two separate
fisheries, one for Bering Sea snow crab and another for Bering Sea
Tanner crab),
(3) Aleutian Islands brown king (the corresponding crab
rationalization fisheries are the two separate fisheries, one for
Eastern Aleutian Islands golden king crab and another for Western
Aleutian Islands golden king crab),
(4) Aleutian Islands red king (the corresponding crab
rationalization fishery is Western Aleutian Islands red king crab),
(5) Pribilof red king and Pribilof blue king (the corresponding
crab rationalization fishery is Pribilof red king and blue king crab),
and
(6) St. Matthew blue king (the corresponding crab rationalization
fishery is also St. Matthew blue king crab).
Reduction fishery means the fishery for all crab rationalization
crab in all crab rationalization fisheries. Sub-amount means the
portion of the reduction loan amount for whose repayment the borrower
in each reduction endorsement fishery is obligated.
(c) Reduction loan amount. The reduction loan's original principal
amount is $97,399,357.11.
(d) Sub-amounts. The sub-amounts are:
(1) For Bristol Bay red king, $17,129,957.23;
(2) For Bering Sea and Aleutian Islands Area C. opilio and C.
bairdi, $66,410,767.20;
(3) For Aleutian Islands brown king, $6,380,837.19;
(4) For Aleutian Islands red king, $237,588.04;
(5) For Pribilof red king and Pribilof blue king, $1,571,216.35;
and
(6) For St. Matthew blue king, $5,668,991.10.
(e) Interest accrual from inception. Interest began accruing on
each portion of the reduction loan amount on and from the date on which
NMFS disbursed each such portion.
(f) Interest rate. The reduction loan's interest rate shall be the
applicable rate which the U.S. Treasury determines at the end of fiscal
year 2005 plus 2 percent.
(g) Repayment term. For the purpose of determining fee rates, the
reduction loan's repayment term is 30 years from January 19, 2005, but
each fee shall continue indefinitely for as long as necessary to fully
repay each subamount.
(h) Reduction loan repayment. (1) The borrower shall, in accordance
with Sec. 600.1012, repay the reduction loan;
(2) Fish sellers in each reduction endorsement fishery shall, in
accordance with Sec. 600.1013, pay the fee at the rate applicable to
each such fishery's subamount;
(3) Fish buyers in each reduction endorsement fishery shall, in
accordance with Sec. 600.1013, collect the fee at the rate applicable
to each such fishery;
(4) Fish buyers in each reduction endorsement fishery shall, in
accordance with Sec. 600.1014, deposit and disburse, as well as keep
records for and submit reports about, the fees applicable to each such
fishery; and,
(5) The reduction loan is, in all other respects, subject to the
provisions of Sec. 600.1012 through Sec. 600.1017.
[FR Doc. 05-18444 Filed 9-15-05; 8:45 am]
BILLING CODE 3510-22-S
